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SENATE HOMELAND BILL WOULD SPLIT SECURITY, INTELLIGENCE UNITS

Senate Governmental Affairs Committee Chmn. Lieberman (D-Conn.) introduced substitute bill Wed. to create Dept. of Homeland Security (DHS) that would have separate divisions for critical infrastructure protection (CIP) and intelligence analysis. Senate continued debate Wed. evening after Sen. Wellstone (D-Minn.) introduced an amendment that would make DHS-related procurement off-limits to U.S. companies that incorporated outside country to avoid paying taxes.

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At our deadline, Sen. Dorgan (D-N.D.) rose in support of Wellstone measure, which he said would affect “unpatriotic” companies that wanted federal contracts without paying their fair share of corporate taxes. Majority Whip Reid (D-Nev.) also advocated the Wellstone proposal, saying awarding contracts to such companies inadvertently penalized service providers and manufacturers “that play by the rules.” Senate will continue debate on bill today (Sept. 5).

Lieberman said proposed creation of separate directorates for CIP and intelligence was one of notable -- and most critical -- differences from White House proposal. In “Dear Colleague” letter to Senate members this week, Lieberman said: “By tying the intelligence functions to critical infrastructure, the Administration’s approach places insufficient emphasis on the importance of this analysis in preventing attacks… [and] does not account for the fact that intelligence analysis and [CIP] are both very demanding jobs -- each of which, in sheer complexity, requires the attention of a separate undersecretary.”

Intelligence Directorate also would be responsible under bill for developing “secure communications and information technology infrastructure” to carry out DHS mission. That infrastructure would be developed in conjunction with DHS chief information officer and appropriate officers from agencies melded into new cabinet-level department. Unit would develop security and formatting protocols that: (1) Are compatible with DHS system. (2) “Comply with federal laws concerning privacy and the prevention of unauthorized disclosure.”

Lieberman said on Senate floor that in addition to successfully fighting terrorism, nation “must emerge victoriously in the laboratory,” thus requiring sufficient investments in homeland security-related R&D. Bill would accomplish that by creating Science & Technology Directorate at proposed DHS, headed by an undersecy. appointed by President and confirmed by Senate. Bill would transfer several federal labs to new department, which would “provide the Undersecretary with a core science and technology capability.” Security Advanced Research Projects Agency would be created to promote and support R&D efforts “by leveraging funds with other R&D agencies, universities and the private sector.”

Bill would give White House an opportunity to propose additional changes in DHS if and when legislation was signed by President. Bill’s language is “open to refinement” and would allow President 6 months after its effective date to make recommendations for improvement, Lieberman said. Bill would deny request for White House authority “for an unprecedented and unchecked waiver for any and all civil service protections.” Labor-management issue could stall movement of bill, since President Bush has threatened to veto legislation if it doesn’t provide “management flexibility,” as it’s called by supporters.