Watch CBS News

Homeland Security Bill OKed By House

The House of Representatives voted to create a giant department to protect Americans against terrorism Friday -- after backing President Bush's demand to limit labor rights at the agency in an effort to ensure an efficient operation.

The bill establishes a Department of Homeland Security, which would bring together in the biggest government reorganization in a half century all or parts of 22 existing agencies, including the Coast Guard, Secret Service and Border Patrol.

The battle over union and civil service protections will resume when the Democratic-led Senate considers its version of the measure, possibly as early as next week. Differences between the two bills must be worked out before a final measure can be sent to Mr. Bush to sign into law.

House Democrats won an unexpected victory.

They attached a provision sponsored by Rep. Rosa DeLauro of Connecticut that bars the new agency from entering into contracts with publicly traded companies that move their headquarters to tax havens, such as Bermuda.

DeLauro says companies that relocate headquarters to save on taxes are abandoning the country "at a critical time in our history.

Earlier Friday, the president had made clear that he would not sign a bill unless it gives him the personnel and budgetary flexibility he insists on, reports CBS News Correspondent Mark Knoller.

"A time of war is the wrong time to weaken the president's ability to protect the American people," Mr. Bush told a White House audience that included governors, mayors, firefighters, police and lawmakers.

A key Senate committee has approved its version. It was the Democratic-sponsored Senate version that drew Mr. Bush's opposition.

The president promisd a veto of the Senate version because it doesn't exempt the proposed agency from civil-service and budget rules. Democrats and organized labor have strongly opposed Mr. Bush's position, saying it would violate workers' rights.

"I reject that as strongly as I can state it," Mr. Bush said of the suggestion that his position was anti-labor.

"The bill doesn't have enough managerial flexibility as far as I'm concerned," he told an audience that included Sen. Joseph Lieberman, D-Conn., the sponsor of the Senate version.

As Lieberman sat expressionless, Mr. Bush said, "I appreciate the work of Sen. Lieberman. He's working hard." The president promised to work with both parties in Congress on a version that he could sign.

Mr. Bush has indicated general support for House version. But he made clear his distaste for the Senate bill, which has not yet been taken up by the full Senate.

"I'm not going to accept legislation that limits or weakens the president's well-established authorities — authorities to exempt parts of government from parts of federal labor-management relations statutes when it serves our national interest."

"Every president since Jimmy Carter has used this statutory authority," Mr. Bush said.

"As Congress debates the issue of how to set up this department, I'm confident they're going to look to me to say, 'Well is it being done right?' after they've got the bill passed. And, therefore, it's important we have the managerial flexibility to get the job done right," he said.

"We can't be micromanaged," he asserted.

Few on Capitol Hill believe Mr. Bush will not get his new department, one way or another, before Congress adjourns this fall.

"There are differences, but I would say they are at the margins," Lieberman had said Thursday. "This bill gives the president about 90 percent of what he asked for."

And Mr. Bush himself told his audience: "This administration is working with Congress to forge a bipartisan bill. I believe we're making good progress. And, being a modest guy, I'm willing to recognize a good idea even if it comes from Congress."

Mr. Bush claims the personnel and management flexibility he seeks is vital to move quickly as new terrorist threats emerge.

Still, the House and Senate bills generally mirror his proposals to transfer such agencies as the Coast Guard, Secret Service, Border Patrol, Customs Service, Federal Emergency Management Agency and the just-created Transportation Security Administration into the new department.

On Thursday, the Senate Governmental Affairs Committee approved its bill by a 12-5 vote, leaving aside Mr. Bush's demand for personnel flexibility. Democrats contend that providing such power to the president would undermine civil service benefits and protections and jeopardize collective bargaining rights.

Sen. Mark Dayton, D-Minn., said the president's plan amounts to "a blank check to hire, fire, sanction, whatever, individual employees."

Republicans say a department dedicated to tracking a shadowy enemy and preventing terrorist attacks should not be shackled by burdensome rules.

"We're creating more responsibilities and fewer tools to deal with those responsibilities — and that's a recipe for failure," said Sen. Fred Thompson, R-Tenn.

The Senate committee appeased many coastal-state senators by voting for language designed to ensure that the Coast Guard's nonsecurity missions, such as fisheries management, navigation, marine search-and rescue, would not become lower priorities under the new department.

Both versions of the legislation rejected Mr. Bush's request for the power to transfer up to 5 percent of the agency's budget without congressional approval.

View CBS News In
CBS News App Open
Chrome Safari Continue