; and (ii) in subparagraph (C)(ii), by striking Secretary’s designee and inserting Secretary of Defense’s designee ; (B) in subparagraphs (B), (C), (D), and (E) of paragraph (3), by inserting of Homeland Security after Secretary each place it appears; (C) in paragraph (4)(A), by inserting of Homeland Security after Secretary ; (D) in paragraph (5), by inserting of Homeland Security after Secretary ; and (E) in paragraph (7)— (i) in subparagraph (A), by striking Not later than December 31, 2008, and annually thereafter, the Secretary and inserting The Secretary of Homeland Security shall ; and (ii) by striking subparagraph (D). (c) Executive schedule (1) Administrator of the TSA (A) Positions at level II Section 5313 of title 5, United States Code, is amended by inserting after the item relating to the Under Secretary of Homeland Security for Management the following: Administrator of the Transportation Security Administration. . (B) Bonus eligibility Section 101(c)(2) of the Aviation and Transportation Security Act ( 5 U.S.C. 5313 note) is amended— (i) by striking Under Secretary and inserting Administrator of the Transportation Security Administration ; and (ii) by inserting of Homeland Security after Secretary . (2) Deputy administrator of the TSA Section 5315 of title 5, United States Code, is amended by inserting after the item relating to the Deputy Administrator, Federal Aviation Administration the following: Deputy Administrator, Transportation Security Administration. . 103. Transportation Security Administration organization Section 114, as amended by sections 101 and 102, is further amended by adding at the end the following: (w) Leadership and organization (1) In general For each of the areas described in paragraph (2), the Administrator of the Transportation Security Administration shall appoint at least 1 individual who shall— (A) report directly to the Administrator or the Administrator’s designated direct report