[Congressional Bills 108th Congress]
[From the U.S. Government Printing Office]
[H.R. 10 ]

                         VOLUME 2 OF 2 VOLUMES


                                                 Union Calendar No. 453
108th CONGRESS
  2d Session
                                 H. R. 10

           [Report No. 108-724, Parts I, II, III, IV, and V]

    To provide for reform of the intelligence community, terrorism 
    prevention and prosecution, border security, and international 
         cooperation and coordination, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2004

Mr. Hastert (for himself, Mr. DeLay, Mr. Blunt, Ms. Pryce of Ohio, Mr. 
  Hoekstra, Mr. Hunter, Mr. Young of Florida, Mr. Sensenbrenner, Mr. 
 Hyde, Mr. Tom Davis of Virginia, Mr. Oxley, Mr. Dreier, Mr. Cox, Mr. 
     Thomas, Mr. Nussle, Mr. Boehner, and Mr. Smith of New Jersey) 
    introduced the following bill; which was referred to the Select 
 Committee on Intelligence (Permanent Select), and in addition to the 
 Committees on Armed Services, Education and the Workforce, Energy and 
    Commerce, Financial Services, Government Reform, International 
     Relations, the Judiciary, Rules, Science, Transportation and 
  Infrastructure, Ways and Means, and Select Homeland Security, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

                            October 4, 2004

 Reported from the Permanent Select Committee on Intelligence with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                           in boldface roman]

                            October 4, 2004

     Reported from the Committee on Armed Services with amendments
 [Omit the part struck through in brackets and insert the part printed 
                               in italic]

                            October 4, 2004

  Reported from the Committee on Financial Services with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                          in boldface italic]

                            October 4, 2004

 Referral to the Committees on Education and the Workforce, Energy and 
 Commerce, Government Reform, International Relations, the Judiciary, 
Rules, Science, Transportation and Infrastructure, Ways and Means, and 
the Select Committee on Homeland Security extended for a period ending 
                     not later than October 5, 2004

                            October 5, 2004

   Reported from the Committee on Government Reform with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                     in italic in bold parentheses]

                            October 5, 2004

     Reported from the Committee on the Judiciary with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                  in boldface roman in bold brackets]

                            October 5, 2004

Additional sponsors: Mr. Burr, Mr. Green of Wisconsin, Mr. McInnis, Mr. 
  Goodlatte, Mr. Issa, Mr. Pickering, Mr. Sessions, Mr. Gingrey, Mrs. 
                  Miller of Michigan, and Mr. Ramstad

                            October 5, 2004

    Committees on Education and the Workforce, Energy and Commerce, 
      International Relations, Rules, Science, Transportation and 
 Infrastructure, Ways and Means, and the Select Committee on Homeland 
 Security discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
    To provide for reform of the intelligence community, terrorism 
    prevention and prosecution, border security, and international 
         cooperation and coordination, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``9/11 Recommendations Implementation 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

             TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

Sec. 1001. Short title.
      Subtitle A--Establishment of National Intelligence Director

Sec. 1011. Reorganization and improvement of management of intelligence 
                            community.
Sec. 1012. Revised definition of national intelligence.
Sec. 1013. Joint procedures for operational coordination between 
                            Department of Defense and Central 
                            Intelligence Agency.
Sec. 1014. Role of National Intelligence Director in appointment of 
                            certain officials responsible for 
                            intelligence-related activities.
Sec. 1015. Initial appointment of the National Intelligence Director.
Sec. 1016. Executive schedule matters.
   Subtitle B--National counterterrorism Center and Civil Liberties 
                              Protections

Sec. 1021. National counterterrorism Center.
Sec. 1022. Civil Liberties Protection Officer.
            Subtitle C--Joint Intelligence Community Council

Sec. 1031. Joint Intelligence Community Council.
         Subtitle D--Improvement of Human Intelligence (HUMINT)

Sec. 1041. Human intelligence as an increasingly critical component of 
                            the intelligence community.
Sec. 1042. Improvement of human intelligence capacity.
  Subtitle E--Improvement of Education for the Intelligence Community

Sec. 1051. Modification of obligated service requirements under 
                            National Security Education Program.
Sec. 1052. Improvements to the National Flagship Language Initiative.
Sec. 1053. Establishment of scholarship program for English language 
                            studies for heritage community citizens of 
                            the United States within the National 
                            Security Education Program.
Sec. 1054. Sense of Congress with respect to language and education for 
                            the intelligence community; reports.
Sec. 1055. Advancement of foreign languages critical to the 
                            intelligence community.
Sec. 1056. Pilot project for Civilian Linguist Reserve Corps.
Sec. 1057. Codification of establishment of the National Virtual 
                            Translation Center.
Sec. 1058. Report on recruitment and retention of qualified instructors 
                            of the Defense Language Institute.
     Subtitle F--Additional Improvements of Intelligence Activities

Sec. 1061. Permanent extension of Central Intelligence Agency Voluntary 
                            Separation Incentive Program.
Sec. 1062. National Security Agency Emerging Technologies Panel.
              Subtitle G--Conforming and Other Amendments

Sec. 1071. Conforming amendments relating to roles of National 
                            Intelligence Director and Director of the 
                            Central Intelligence Agency.
Sec. 1072. Other conforming amendments.
Sec. 1073. Elements of intelligence community under National Security 
                            Act of 1947.
Sec. 1074. Redesignation of National Foreign Intelligence Program as 
                            National Intelligence Program. 
Sec. 1075. Repeal of superseded authorities.
Sec. 1076. Clerical amendments to National Security Act of 1947.
Sec. 1077. Conforming amendments relating to prohibiting dual service 
                            of the Director of the Central Intelligence 
                            Agency.
Sec. 1078. Access to Inspector General protections.
Sec. 1079. General references.
Sec. 1080. Application of other laws.
   Subtitle H--Transfer, Termination, Transition and Other Provisions

Sec. 1091. Transfer of community management staff.
Sec. 1092. Transfer of terrorist threat integration center.
Sec. 1093. Termination of positions of Assistant Directors of Central 
                            Intelligence.
Sec. 1094. Implementation plan.
Sec. 1095. Transitional authorities.
Sec. 1096. Effective dates.
               Subtitle I--Grand Jury Information Sharing

Sec. 1101. Grand jury information sharing.
                       Subtitle J--Other Matters

Sec. 1111. Interoperable law enforcement and intelligence data system.
Sec. 1112. Improvement of intelligence capabilities of the Federal 
                            Bureau of Investigation.
             TITLE II--TERRORISM PREVENTION AND PROSECUTION

     Subtitle A--Individual Terrorists as Agents of Foreign Powers

Sec. 2001. Individual terrorists as agents of foreign powers.
       Subtitle B--Stop Terrorist and Military Hoaxes Act of 2004

Sec. 2021. Short title.
Sec. 2022. Hoaxes and recovery costs.
Sec. 2023. Obstruction of justice and false statements in terrorism 
                            cases.
Sec. 2024. Clarification of definition.
 Subtitle C--Material Support to Terrorism Prohibition Enhancement Act 
                                of 2004

Sec. 2041. Short title.
Sec. 2042. Receiving military-type training from a foreign terrorist 
                            organization.
Sec. 2043. Providing material support to terrorism.
Sec. 2044. Financing of terrorism.
Subtitle D--Weapons of Mass Destruction Prohibition Improvement Act of 
                                  2004

Sec. 2051. Short title.
Sec. 2052. Weapons of mass destruction.
Sec. 2053. Participation in nuclear and weapons of mass destruction 
                            threats to the United States.
          Subtitle E--Money Laundering and Terrorist Financing

   Chapter 1--Funding to Combat Financial Crimes Including Terrorist 
                               Financing

Sec. 2101. Additional authorization for FinCEN.
Sec. 2102. Money laundering and financial crimes strategy 
                            reauthorization.
   Chapter 2--Enforcement Tools to Combat Financial Crimes Including 
 subchapter a--money laundering abatement and financial antiterrorism 
                         technical corrections
Sec. 2111. Short title.
Sec. 2112. Technical corrections to Public Law 107-56.
Sec. 2113. Technical corrections to other provisions of law.
Sec. 2114. Repeal of review.
Sec. 2115. Effesubchapter b--additional enforcement tools
Sec. 2121. Bureau of Engraving and Printing security printing.
Sec. 2122. Conduct in aid of counterfeiting.
Sec. 2123. Reporting of cross-border transmittal of funds.
Sec. 2124. Enhanced effectiveness of examinations, including anti-money 
      subchapter c--unlawful internet gambling funding prohibition
Sec. 2131. Short title.
Sec. 2132. Findings.
Sec. 2133. Policies and procedures required to prevent payments for 
                            unlawful internet gambling.
Sec. 2134. Definitions.
Sec. 2135. Common sense rule of construction.
             Subtitle F--Criminal History Background Checks

Sec. 2141. Short title.
Sec. 2142. Criminal history information checks.
Subtitle G--Protection of United States Aviation System from Terrorist 
                                Attacks

Sec. 2171. Provision for the use of biometric or other technology.
Sec. 2172. Transportation security strategic planning.
Sec. 2173. Next generation airline passenger prescreening.
Sec. 2174. Deployment and use of explosive detection equipment at 
                            airport screening checkpoints.
Sec. 2175. Pilot program to evaluate use of blast-resistant cargo and 
                            baggage containers.
Sec. 2176. Air cargo screening technology.
Sec. 2177. Airport checkpoint screening explosive detection.
Sec. 2178. Next generation security checkpoint.
Sec. 2179. Penalty for failure to secure cockpit door.
Sec. 2180. Federal air marshal anonymity.
Sec. 2181. Federal law enforcement in-flight counterterrorism training.
Sec. 2182. Federal flight deck officer weapon carriage pilot program.
Sec. 2183. Registered traveler program.
Sec. 2184. Wireless communication.
Sec. 2185. Secondary flight deck barriers.
Sec. 2186. Extension.
Sec. 2187. Perimeter Security.
Sec. 2188. Definitions.
                       Subtitle H--Other Matters

Sec. 2191. Grand jury information sharing.
Sec. 2192. Interoperable law enforcement and intelligence data system.
Sec. 2193. Improvement of intelligence capabilities of the Federal 
                            Bureau of Investigation.
            TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

        Subtitle A--Immigration Reform in the National Interest

                     Chapter 1--General Provisions

Sec. 3001. Eliminating the ``Western Hemisphere'' exception for 
                            citizens.
Sec. 3002. Modification of waiver authority with respect to 
                            documentation requirements for nationals of 
                            foreign contiguous territories and adjacent 
                            islands.
Sec. 3003. Increase in full-time border patrol agents.
Sec. 3004. Increase in full-time immigration and customs enforcement 
                            investigators.
Sec. 3005. Alien identification standards.
Sec. 3006. Expedited removal.
Sec. 3007. Preventing terrorists from obtaining asylum.
Sec. 3008. Revocation of visas and other travel documentation.
Sec. 3009. Judicial review of orders of removal.
    Chapter 2--Deportation of Terrorists and Supporters of Terrorism

Sec. 3031. Expanded inapplicability of restriction on removal.
Sec. 3032. Exception to restriction on removal for terrorists and 
                            criminals.
Sec. 3033. Additional removal authorities.
                Subtitle B--Identity Management Security

    Chapter 1--Improved Security for Drivers' Licenses and Personal 
                          Identification Cards

Sec. 3051. Definitions.
Sec. 3052. Minimum document requirements and issuance standards for 
                            Federal recognition.
Sec. 3053. Linking of databases.
Sec. 3054. Trafficking in authentication features for use in false 
                            identification documents.
Sec. 3055. Grants to States.
Sec. 3056. Authority.
          Chapter 2--Improved Security for Birth Certificates

Sec. 3061. Definitions.
Sec. 3062. Applicability of minimum standards to local governments.
Sec. 3063. Minimum standards for Federal recognition.
Sec. 3064. Establishment of electronic birth and death registration 
                            systems.
Sec. 3065. Electronic verification of vital events.
Sec. 3066. Grants to States.
Sec. 3067. Authority.
Chapter 3--Measures To Enhance Privacy and Integrity of Social Security 
                            Account Numbers

Sec. 3071. Prohibition of the display of social security account 
                            numbers on driver's licenses or motor 
                            vehicle registrations.
Sec. 3072. Independent verification of birth records provided in 
                            support of applications for social security 
                            account numbers.
Sec. 3073. Enumeration at birth.
Sec. 3074. Study relating to use of photographic identification in 
                            connection with applications for benefits, 
                            social security account numbers, and social 
                            security cards.
Sec. 3075. Restrictions on issuance of multiple replacement social 
                            security cards.
Sec. 3076. Study relating to modification of the social security 
                            account numbering system to show work 
                            authorization status.
                 Subtitle C--Targeting Terrorist Travel

Sec. 3081. Studies on machine-readable passports and travel history 
                            database.
Sec. 3082. Expanded preinspection at foreign airports.
Sec. 3083. Immigration security initiative.
Sec. 3084. Responsibilities and functions of consular officers.
Sec. 3085. Increase in penalties for fraud and related activity.
Sec. 3086. Criminal penalty for false claim to citizenship.
Sec. 3087. Antiterrorism assistance training of the Department of 
                            State.
Sec. 3088. International agreements to track and curtail terrorist 
                            travel through the use of fraudulently 
                            obtained documents.
Sec. 3089. International standards for translation of names into the 
                            Roman alphabet for international travel 
                            documents and name-based watchlist systems.
Sec. 3090. Biometric entry and exit data system.
Sec. 3091. Enhanced responsibilities of the Coordinator for 
                            counterterrorism.
Sec. 3092. Establishment of Office of Visa and Passport Security in the 
                            Department of State.
                      Subtitle D--Terrorist Travel

Sec. 3101. Information sharing and coordination.
Sec. 3102. Terrorist travel program.
Sec. 3103. Training program.
Sec. 3104. Technology acquisition and dissemination plan.
               Subtitle E--Maritime Security Requirements

Sec. 3111. Deadlines for implementation of maritime security 
                            requirements.
          TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

         Subtitle A--Attack Terrorists and Their Organizations

        Chapter 1--Provisions Relating to Terrorist Sanctuaries

Sec. 4001. United States policy on terrorist sanctuaries.
Sec. 4002. Reports on terrorist sanctuaries.
Sec. 4003. Amendments to existing law to include terrorist sanctuaries.
                      Chapter 2--Other Provisions

Sec. 4011. Appointments to fill vacancies in Arms Control and 
                            Nonproliferation Advisory Board.
Sec. 4012. Review of United States policy on proliferation of weapons 
                            of mass destruction and control of 
                            strategic weapons.
Sec. 4013. International agreements to interdict acts of international 
                            terrorism.
Sec. 4014. Effective Coalition approach toward detention and humane 
                            treatment of captured terrorists.
Sec. 4015. Sense of Congress and report regarding counter-drug efforts 
                            in Afghanistan.
         Subtitle B--Prevent the Continued Growth of Terrorism

               Chapter 1--United States Public Diplomacy

Sec. 4021. Annual review and assessment of public diplomacy strategy.
Sec. 4022. Public diplomacy training.
Sec. 4023. Promoting direct exchanges with Muslim countries.
Sec. 4024. Public diplomacy required for promotion in Foreign Service.
            Chapter 2--United States Multilateral Diplomacy

Sec. 4031. Purpose.
Sec. 4032. Support and expansion of democracy caucus.
Sec. 4033. Leadership and membership of international organizations.
Sec. 4034. Increased training in multilateral diplomacy.
Sec. 4035. Implementation and establishment of Office on Multilateral 
                            Negotiations.
                      Chapter 3--Other Provisions

Sec. 4041. Pilot program to provide grants to American-sponsored 
                            schools in predominantly Muslim countries 
                            to provide scholarships.
Sec. 4042. Enhancing free and independent media.
Sec. 4043. Combating biased or false foreign media coverage of the 
                            United States.
Sec. 4044. Report on broadcast outreach strategy.
Sec. 4045. Office relocation.
Sec. 4046. Strengthening the Community of Democracies for Muslim 
                            countries.
  Subtitle C--Reform of Designation of Foreign Terrorist Organizations

Sec. 4051. Designation of foreign terrorist organizations.
Sec. 4052. Inclusion in annual Department of State country reports on 
                            terrorism of information on terrorist 
                            groups that seek weapons of mass 
                            destruction and groups that have been 
                            designated as foreign terrorist 
                            organizations.
     Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

Sec. 4061. Short title.
Sec. 4062. Coordination of assistance for Afghanistan.
Sec. 4063. General provisions relating to the Afghanistan Freedom 
                            Support Act of 2002.
Sec. 4064. Rule of law and related issues.
Sec. 4065. Monitoring of assistance.
Sec. 4066. United States policy to support disarmament of private 
                            militias and to support expansion of 
                            international peacekeeping and security 
                            operations in Afghanistan.
Sec. 4067. Efforts to expand international peacekeeping and security 
                            operations in Afghanistan.
Sec. 4068. Provisions relating to counternarcotics efforts in 
                            Afghanistan.
Sec. 4069. Additional amendments to the Afghanistan Freedom Support Act 
                            of 2002.
Sec. 4070. Repeal.
      Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

Sec. 4081. New United States strategy for relationship with Saudi 
                            Arabia.
Sec. 4082. United States commitment to the future of Pakistan.
Sec. 4083. Extension of Pakistan waivers.
                    Subtitle F--Oversight Provisions

Sec. 4091. Case-Zablocki Act requirements.
  Subtitle G--Additional Protections of United States Aviation System 
                         from Terrorist Attacks

Sec. 4101. International agreements to allow maximum deployment of 
                            Federal flight deck officers.
Sec. 4102. Federal air marshal training.
Sec. 4103. Man-portable air defense systems (MANPADS).
Subtitle H--Improving International Standards and Cooperation to Fight 
                          Terrorist Financing

Sec. 4111. Sense of the Congress regarding success in multilateral 
                            organizations.
Sec. 4112. Expanded reporting and testimony requirements for the 
                            Secretary of the Treasury.
Sec. 4113. Coordination of United States Government efforts.
Sec. 4114. Definitions.
                   TITLE V--GOVERNMENT RESTRUCTURING

      Subtitle A--Faster and Smarter Funding for First Responders

Sec. 5001. Short title.
Sec. 5002. Findings.
Sec. 5003. Faster and smarter funding for first responders.
Sec. 5004. Modification of homeland security advisory system.
Sec. 5005. Coordination of industry efforts.
Sec. 5006. Superseded provision.
Sec. 5007. Sense of Congress regarding interoperable communications.
Sec. 5008. Sense of Congress regarding citizen corps councils.
Sec. 5009. Study regarding nationwide emergency notification system.
Sec. 5010. Required coordination.
            Subtitle B--Government Reorganization Authority

Sec. 5021. Authorization of intelligence community reorganization 
                            plans.
   Subtitle C--Restructuring Relating to the Department of Homeland 
                  Security and Congressional Oversight

Sec. 5025. Responsibilities of counternarcotics Office.
Sec. 5026. Use of counternarcotics enforcement activities in certain 
                            employee performance appraisals.
Sec. 5027. Sense of the House of Representatives on addressing homeland 
                            security for the American people.
            Subtitle D--Improvements to Information Security

Sec. 5031. Amendments to Clinger-Cohen provisions to enhance agency 
                            planning for information security needs.
             Subtitle E--Personnel Management Improvements

                 Chapter 1--Appointments Process Reform

Sec. 5041. Appointments to national security positions.
Sec. 5042. Presidential inaugural transitions.
Sec. 5043. Public financial disclosure for the intelligence community.
Sec. 5044. Reduction of positions requiring appointment with Senate 
                            confirmation.
Sec. 5045. Effective dates.
       Chapter 2--Federal Bureau of Investigation Revitalization

Sec. 5051. Mandatory separation age.
Sec. 5052. Retention and relocation bonuses.
Sec. 5053. Federal Bureau of Investigation Reserve Service.
Sec. 5054. Critical positions in the Federal Bureau of Investigation 
                            intelligence directorate.
                    Chapter 3--Management Authority

Sec. 5061. Management authority.
              Subtitle F--Security Clearance Modernization

Sec. 5071. Definitions.
Sec. 5072. Security clearance and investigative programs oversight and 
                            administration.
Sec. 5073. Reciprocity of security clearance and access determinations.
Sec. 5074. Establishment of national database.
Sec. 5075. Use of available technology in clearance investigations.
Sec. 5076. Reduction in length of personnel security clearance process.
Sec. 5077. Security clearances for presidential transition.
Sec. 5078. Reports.
              Subtitle G--Emergency Financial Preparedness

        Chapter 1--Emergency Preparedness for Fiscal Authorities

Sec. 5081. Delegation authority of the Secretary of the Treasury.
Sec. 5081A. Treasury support for financial services industry 
                            preparedness and response.
              subchapter a--netting of financial contracts
Sec. 5082. Short title.
Sec. 5082A. Treatment of certain agreements by conservators or 
                            receivers of insured depository 
                            institutions.
Sec. 5082B. Authority of the FDIC and NCUAB with respect to failed and 
                            failing institutions.
Sec. 5082C. Amendments relating to transfers of qualified financial 
                            contracts.
Sec. 5082D. Amendments relating to disaffirmance or repudiation of 
                            qualified financial contracts.
Sec. 5082E. Clarifying amendment relating to master agreements.
Sec. 5082F. Federal Deposit Insurance Corporation Improvement Act of 
                            1991.
Sec. 5082G. Bankruptcy code amendments.
Sec. 5082H. Recordkeeping requirements.
Sec. 5082I. Exemptions from contemporaneous execution requirement.
Sec. 5082J. Damage measure.
Sec. 5082K. SIPC stay.
Sec. 5082L. Applicability of other sections to chapter 9.
Sec. 5082M. Effective date; application of amendments.
Sec. 5082N. Sasubchapter b--emergency securities response
Sec. 5086. Short title.
Sec. 5087. Extension of emergency order authority of the Securities and 
                            Exchange Commission.
Sec. 5088. Parallel authority of the Secretary of the Treasury with 
                            respect to government securities.
Sec. 5089. Joint report on implementation of financial system 
                            resilience recommendations.
Sec. 5089A. Private sector preparedness.
Sec. 5089B. Report on public/private partnerships.
                       Subtitle H--Other Matters

                       Chapter 1--Privacy Matters

Sec. 5091. Requirement that agency rulemaking take into consideration 
                            impacts on individual privacy.
Sec. 5092. Chief privacy officers for agencies with law enforcement or 
                            anti-terrorism functions.
            Chapter 2--Mutual Aid and Litigation Management

Sec. 5101. Short title.
Sec. 5102. Mutual aid authorized.
Sec. 5103. Litigation management agreements.
Sec. 5104. Additional provisions.
Sec. 5105. Definitions.
                    Chapter 3--Miscellaneous Matters

Sec. 5131. Enhancement of public safety communications 
                            interoperability.
Sec. 5132. Sense of Congress regarding the incident command system.
Sec. 5133. Sense of Congress regarding United States Northern Command 
                            plans and strategies.

             TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``National Security Intelligence 
Improvement Act of 2004''.

      Subtitle A--Establishment of National Intelligence Director

SEC. 1011. REORGANIZATION AND IMPROVEMENT OF MANAGEMENT OF INTELLIGENCE 
              COMMUNITY.

    (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.) is amended by striking sections 102 through 104 and 
inserting the following new sections:

                    ``national intelligence director

    ``Sec. 102. (a) National Intelligence Director.--(1) There is a 
National Intelligence Director who shall be appointed by the President, 
by and with the advice and consent of the Senate.
    ``(2) The National Intelligence Director shall not be located 
within the Executive Office of the President.
    ``(b) Principal Responsibility.--Subject to the authority, 
direction, and control of the President, the National Intelligence 
Director shall--
            ``(1) serve as head of the intelligence community;
            ``(2) act as the principal adviser to the President, to the 
        National Security Council, and the Homeland Security Council 
        for intelligence matters related to the national security; and
            ``(3) through the heads of the departments containing 
        elements of the intelligence community, and the Central 
        Intelligence Agency, manage and oversee the execution of the 
        National Intelligence Program and direct the National 
        Intelligence Program.
    ``(c) Prohibition on Dual Service.--The individual serving in the 
position of National Intelligence Director shall not, while so serving, 
also serve as the Director of the Central Intelligence Agency or as the 
head of any other element of the intelligence community.

    ``responsibilities and authorities of the national intelligence 
                                director

    ``Sec. 102A. (a) Provision of Intelligence.--(1) Under the 
direction of the President, the National Intelligence Director shall be 
responsible for ensuring that national intelligence is provided--
            ``(A) to the President;
            ``(B) to the heads of departments and agencies of the 
        executive branch;
            ``(C) to the Chairman of the Joint Chiefs of Staff and 
        senior military commanders;
            ``(D) where appropriate, to the Senate and House of 
        Representatives and the committees thereof; and
            ``(E) to such other persons as the National Intelligence 
        Director determines to be appropriate.
    ``(2) Such national intelligence should be timely, objective, 
independent of political considerations, and based upon all sources 
available to the intelligence community and other appropriate entities.
    ``(b) Access to Intelligence.--To the extent approved by the 
President, the National Intelligence Director shall have access to all 
national intelligence and intelligence related to the national security 
which is collected by any Federal department, agency, or other entity, 
except as otherwise provided by law or, as appropriate, under 
guidelines agreed upon by the Attorney General and the National 
Intelligence Director.
    ``(c) Budget Authorities.--(1)(A) The National Intelligence 
Director shall develop and present to the President on an annual basis 
a budget for intelligence and intelligence-related activities of the 
United States.
    ``(B) In carrying out subparagraph (A) for any fiscal year for the 
components of the budget that comprise the National Intelligence 
Program, the National Intelligence Director shall provide guidance to 
the heads of departments containing elements of the intelligence 
community, and to the heads of the elements of the intelligence 
community, for development of budget inputs to the National 
Intelligence Director.
    ``(2)(A) The National Intelligence Director shall participate in 
the development by the Secretary of Defense of the annual budgets for 
the Joint Military Intelligence Program and for Tactical Intelligence 
and Related Activities.
    ``(B) The National Intelligence Director shall provide guidance for 
the development of the annual budget for each element of the 
intelligence community that is not within the National Intelligence 
Program.
    ``(3) In carrying out paragraphs (1) and (2), the National 
Intelligence Director may, as appropriate, obtain the advice of the 
Joint Intelligence Community Council.
    ``(4) The National Intelligence Director shall ensure the effective 
execution of the annual budget for intelligence and intelligence-
related activities.
    ``(5)(A) The National Intelligence Director shall facilitate the 
management and execution of funds appropriated for the National 
Intelligence Program.
    ``(B) Notwithstanding any other provision of law, in receiving 
funds pursuant to relevant appropriations Acts for the National 
Intelligence Program, the Office of Management and Budget shall 
apportion funds appropriated for the National Intelligence Program to 
the National Intelligence Director for allocation to the elements of 
the intelligence community through the host executive departments that 
manage programs and activities that are part of the National 
Intelligence Program.
    ``(C) The National Intelligence Director shall monitor the 
implementation and execution of the National Intelligence Program by 
the heads of the elements of the intelligence community that manage 
programs and activities that are part of the National Intelligence 
Program, which may include audits and evaluations, as necessary and 
feasible.
    ``(6) Apportionment and allotment of funds under this subsection 
shall be subject to chapter 13 and section 1517 of title 31, United 
States Code, and the Congressional Budget and Impoundment Control Act 
of 1974 (2 U.S.C. 621 et seq.).
    ``(7)(A) The National Intelligence Director shall provide a 
quarterly report, beginning April 1, 2005, and ending April 1, 2007, to 
the President and the Congress regarding implementation of this 
section.
    ``(B) The National Intelligence Director shall report to the 
President and the Congress not later than 5 days after learning of any 
instance in which a departmental comptroller acts in a manner 
inconsistent with the law (including permanent statutes, authorization 
Acts, and appropriations Acts), or the direction of the National 
Intelligence Director, in carrying out the National Intelligence 
Program.
    ``(d) Role of National Intelligence Director in Reprogramming.--(1) 
No funds made available under the National Intelligence Program may be 
transferred or reprogrammed without the prior approval of the National 
Intelligence Director, except in accordance with procedures prescribed 
by the National Intelligence Director.
    ``(2) The Secretary of Defense shall consult with the National 
Intelligence Director before transferring or reprogramming funds made 
available under the Joint Military Intelligence Program.
    ``(e) Transfer of Funds or Personnel Within National Intelligence 
Program.--(1) In addition to any other authorities available under law 
for such purposes, the National Intelligence Director, with the 
approval of the Director of the Office of Management and Budget--
            ``(A) may transfer funds appropriated for a program within 
        the National Intelligence Program to another such program; and
            ``(B) in accordance with procedures to be developed by the 
        National Intelligence Director and the heads of the departments 
        and agencies concerned, may transfer personnel authorized for 
        an element of the intelligence community to another such 
        element for periods up to one year.
    ``(2) The amounts available for transfer in the National 
Intelligence Program in any given fiscal year, and the terms and 
conditions governing such transfers, are subject to the provisions of 
annual appropriations Acts and this subsection.
    ``(3)(A) A transfer of funds or personnel may be made under this 
subsection only if--
            ``(i) the funds or personnel are being transferred to an 
        activity that is a higher priority intelligence activity;
            ``(ii) the need for funds or personnel for such activity is 
        based on unforeseen requirements;
            ``(iii) the transfer does not involve a transfer of funds 
        to the Reserve for Contingencies of the Central Intelligence 
        Agency;
            ``(iv) in the case of a transfer of funds, the transfer 
        results in a cumulative transfer of funds out of any department 
        or agency, as appropriate, funded in the National Intelligence 
        Program in a single fiscal year--
                    ``(I) that is less than $100,000,000, and
                    ``(II) that is less than 5 percent of amounts 
                available to a department or agency under the National 
                Intelligence Program; and
            ``(v) the transfer does not terminate a program.
    ``(B) A transfer may be made without regard to a limitation set 
forth in clause (iv) or (v) of subparagraph (A) if the transfer has the 
concurrence of the head of the department or agency involved. The 
authority to provide such concurrence may only be delegated by the head 
of the department or agency involved to the deputy of such officer.
    ``(4) Funds transferred under this subsection shall remain 
available for the same period as the appropriations account to which 
transferred.
    ``(5) Any transfer of funds under this subsection shall be carried 
out in accordance with existing procedures applicable to reprogramming 
notifications for the appropriate congressional committees. Any 
proposed transfer for which notice is given to the appropriate 
congressional committees shall be accompanied by a report explaining 
the nature of the proposed transfer and how it satisfies the 
requirements of this subsection. In addition, the congressional 
intelligence committees shall be promptly notified of any transfer of 
funds made pursuant to this subsection in any case in which the 
transfer would not have otherwise required reprogramming notification 
under procedures in effect as of the date of the enactment of this 
subsection.
    ``(6)(A) The National Intelligence Director shall promptly submit 
to--
            ``(i) the congressional intelligence committees,
            ``(ii) in the case of the transfer of personnel to or from 
        the Department of Defense, the Committee on Armed Services of 
        the Senate and the Committee on Armed Services of the House of 
        Representatives, and
            ``(iii) in the case of the transfer of personnel to or from 
        the Department of Justice, to the Committees on the Judiciary 
        of the Senate and the House of Representatives,
a report on any transfer of personnel made pursuant to this subsection.
    ``(B) The Director shall include in any such report an explanation 
of the nature of the transfer and how it satisfies the requirements of 
this subsection.
    ``(f) Tasking and Other Authorities.--(1)(A) The National 
Intelligence Director shall--
            ``(i) develop collection objectives, priorities, and 
        guidance for the intelligence community to ensure timely and 
        effective collection, processing, analysis, and dissemination 
        (including access by users to collected data consistent with 
        applicable law and, as appropriate, the guidelines referred to 
        in subsection (b) and analytic products generated by or within 
        the intelligence community) of national intelligence;
            ``(ii) determine and establish requirements and priorities 
        for, and manage and direct the tasking of, collection, 
        analysis, production, and dissemination of national 
        intelligence by elements of the intelligence community, 
        including--
                    ``(I) approving requirements for collection and 
                analysis, and
                    ``(II) resolving conflicts in collection 
                requirements and in the tasking of national collection 
                assets of the elements of the intelligence community; 
                and
            ``(iii) provide advisory tasking to intelligence elements 
        of those agencies and departments not within the National 
        Intelligence Program.
    ``(B) The authority of the National Intelligence Director under 
subparagraph (A) shall not apply--
            ``(i) insofar as the President so directs;
            ``(ii) with respect to clause (ii) of subparagraph (A), 
        insofar as the Secretary of Defense exercises tasking authority 
        under plans or arrangements agreed upon by the Secretary of 
        Defense and the National Intelligence Director; or
            ``(iii) to the direct dissemination of information to State 
        government and local government officials and private sector 
        entities pursuant to sections 201 and 892 of the Homeland 
        Security Act of 2002 (6 U.S.C. 121, 482).
    ``(2) The National Intelligence Director shall oversee the National 
counterterrorism Center and may establish such other national 
intelligence centers as the Director determines necessary.
    ``(3)(A) The National Intelligence Director shall prescribe 
community-wide personnel policies that--
            ``(i) facilitate assignments across community elements and 
        to the intelligence centers;
            ``(ii) establish overarching standards for intelligence 
        education and training; and
            ``(iii) promote the most effective analysis and collection 
        of intelligence by ensuring a diverse workforce, including the 
        recruitment and training of women, minorities, and individuals 
        with diverse, ethnic, and linguistic backgrounds.
    ``(B) In developing the policies prescribed under subparagraph (A), 
the National Intelligence Director shall consult with the heads of the 
departments containing the elements of the intelligence community.
    ``(C) Policies prescribed under subparagraph (A) shall not be 
inconsistent with the personnel policies otherwise applicable to 
members of the uniformed services.
    ``(4) The National Intelligence Director shall ensure compliance 
with the Constitution and laws of the United States by the Central 
Intelligence Agency and shall ensure such compliance by other elements 
of the intelligence community through the host executive departments 
that manage the programs and activities that are part of the National 
Intelligence Program.
    ``(5) The National Intelligence Director shall ensure the 
elimination of waste and unnecessary duplication within the 
intelligence community.
    ``(6) The National Intelligence Director shall perform such other 
functions as the President may direct.
Nothing in this Act shall be construed as affecting the role of the 
Department of Justice or the Attorney General with respect to 
applications under the Foreign Intelligence Surveillance Act of 1978.
    ``(g) Intelligence Information Sharing.--(1) The National 
Intelligence Director shall have principal authority to ensure maximum 
availability of and access to intelligence information within the 
intelligence community consistent with national security requirements. 
The National Intelligence Director shall--
            ``(A) establish uniform security standards and procedures;
            ``(B) establish common information technology standards, 
        protocols, and interfaces;
            ``(C) ensure development of information technology systems 
        that include multi-level security and intelligence integration 
        capabilities; and
            ``(D) establish policies and procedures to resolve 
        conflicts between the need to share intelligence information 
        and the need to protect intelligence sources and methods.
    ``(2) The President shall ensure that the National Intelligence 
Director has all necessary support and authorities to fully and 
effectively implement paragraph (1).
    ``(3) Except as otherwise directed by the President or with the 
specific written agreement of the head of the department or agency in 
question, a Federal agency or official shall not be considered to have 
met any obligation to provide any information, report, assessment, or 
other material (including unevaluated intelligence information) to that 
department or agency solely by virtue of having provided that 
information, report, assessment, or other material to the National 
Intelligence Director or the National counterterrorism Center.
    ``(4) Not later than February 1 of each year, the National 
Intelligence Director shall submit to the President and to the Congress 
an annual report that identifies any statute, regulation, policy, or 
practice that the Director believes impedes the ability of the Director 
to fully and effectively implement paragraph (1).
    ``(h) Analysis.--(1) The National Intelligence Director shall 
ensure that all elements of the intelligence community strive for the 
most accurate analysis of intelligence derived from all sources to 
support national security needs.
    ``(2) The National Intelligence Director shall ensure that 
intelligence analysis generally receives the highest priority when 
distributing resources within the intelligence community and shall 
carry out duties under this subsection in a manner that--
            ``(A) develops all-source analysis techniques;
            ``(B) ensures competitive analysis;
            ``(C) ensures that differences in judgment are fully 
        considered and brought to the attention of policymakers; and
            ``(D) builds relationships between intelligence collectors 
        and analysts to facilitate greater understanding of the needs 
        of analysts.
    ``(i) Protection of Intelligence Sources and Methods.--(1) In order 
to protect intelligence sources and methods from unauthorized 
disclosure and, consistent with that protection, to maximize the 
dissemination of intelligence, the National Intelligence Director shall 
establish and implement guidelines for the intelligence community for 
the following purposes:
            ``(A) Classification of information.
            ``(B) Access to and dissemination of intelligence, both in 
        final form and in the form when initially gathered.
            ``(C) Preparation of intelligence products in such a way 
        that source information is removed to allow for dissemination 
        at the lowest level of classification possible or in 
        unclassified form to the extent practicable.
    ``(2) The Director may only delegate a duty or authority given the 
Director under this subsection to the Deputy National Intelligence 
Director.
    ``(j) Uniform Procedures for Sensitive Compartmented Information.--
The President, acting through the National Intelligence Director, 
shall--
            ``(1) establish uniform standards and procedures for the 
        grant of access to sensitive compartmented information to any 
        officer or employee of any agency or department of the United 
        States and to employees of contractors of those agencies or 
        departments;
            ``(2) ensure the consistent implementation of those 
        standards and procedures throughout such agencies and 
        departments;
            ``(3) ensure that security clearances granted by individual 
        elements of the intelligence community are recognized by all 
        elements of the intelligence community, and under contracts 
        entered into by those agencies; and
            ``(4) ensure that the process for investigation and 
        adjudication of an application for access to sensitive 
        compartmented information is performed in the most expeditious 
        manner possible consistent with applicable standards for 
        national security.
    ``(k) Coordination With Foreign Governments.--Under the direction 
of the President and in a manner consistent with section 207 of the 
Foreign Service Act of 1980 (22 U.S.C. 3927), the National Intelligence 
Director shall oversee the coordination of the relationships between 
elements of the intelligence community and the intelligence or security 
services of foreign governments on all matters involving intelligence 
related to the national security or involving intelligence acquired 
through clandestine means.
    ``(l) Enhanced Personnel Management.--(1)(A) The National 
Intelligence Director shall, under regulations prescribed by the 
Director, provide incentives for personnel of elements of the 
intelligence community to serve--
            ``(i) on the staff of the National Intelligence Director;
            ``(ii) on the staff of the national intelligence centers;
            ``(iii) on the staff of the National counterterrorism 
        Center; and
            ``(iv) in other positions in support of the intelligence 
        community management functions of the Director.
    ``(B) Incentives under subparagraph (A) may include financial 
incentives, bonuses, and such other awards and incentives as the 
Director considers appropriate.
    ``(2)(A) Notwithstanding any other provision of law, the personnel 
of an element of the intelligence community who are assigned or 
detailed under paragraph (1)(A) to service under the National 
Intelligence Director shall be promoted at rates equivalent to or 
better than personnel of such element who are not so assigned or 
detailed.
    ``(B) The Director may prescribe regulations to carry out this 
section.
    ``(3)(A) The National Intelligence Director shall prescribe 
mechanisms to facilitate the rotation of personnel of the intelligence 
community through various elements of the intelligence community in the 
course of their careers in order to facilitate the widest possible 
understanding by such personnel of the variety of intelligence 
requirements, methods, users, and capabilities.
    ``(B) The mechanisms prescribed under subparagraph (A) may include 
the following:
            ``(i) The establishment of special occupational categories 
        involving service, over the course of a career, in more than 
        one element of the intelligence community.
            ``(ii) The provision of rewards for service in positions 
        undertaking analysis and planning of operations involving two 
        or more elements of the intelligence community.
            ``(iii) The establishment of requirements for education, 
        training, service, and evaluation that involve service in more 
        than one element of the intelligence community.
    ``(C) It is the sense of Congress that the mechanisms prescribed 
under this subsection should, to the extent practical, seek to 
duplicate for civilian personnel within the intelligence community the 
joint officer management policies established by chapter 38 of title 
10, United States Code, and the other amendments made by title IV of 
the Goldwater-Nichols Department of Defense Reorganization Act of 1986 
(Public Law 99-433).
    ``(4)(A) This subsection shall not apply with respect to personnel 
of the elements of the intelligence community who are members of the 
uniformed services or law enforcement officers (as that term is defined 
in section 5541(3) of title 5, United States Code).
    ``(B) Assignment to the Office of the National Intelligence 
Director of commissioned officers of the Armed Forces shall be 
considered a joint-duty assignment for purposes of the joint officer 
management policies prescribed by chapter 38 of title 10, United States 
Code, and other provisions of that title.
    ``(m) Additional Authority With Respect to Personnel.--(1) In 
addition to the authorities under subsection (f)(3), the National 
Intelligence Director may exercise with respect to the personnel of the 
Office of the National Intelligence Director any authority of the 
Director of the Central Intelligence Agency with respect to the 
personnel of the Central Intelligence Agency under the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.), and other 
applicable provisions of law, as of the date of the enactment of this 
subsection to the same extent, and subject to the same conditions and 
limitations, that the Director of the Central Intelligence Agency may 
exercise such authority with respect to personnel of the Central 
Intelligence Agency.
    ``(2) Employees and applicants for employment of the Office of the 
National Intelligence Director shall have the same rights and 
protections under the Office of the National Intelligence Director as 
employees of the Central Intelligence Agency have under the Central 
Intelligence Agency Act of 1949, and other applicable provisions of 
law, as of the date of the enactment of this subsection.
    ``(n) Acquisition Authorities.--(1) In carrying out the 
responsibilities and authorities under this section, the National 
Intelligence Director may exercise the acquisition authorities referred 
to in the Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
seq.).
    ``(2) For the purpose of the exercise of any authority referred to 
in paragraph (1), a reference to the head of an agency shall be deemed 
to be a reference to the National Intelligence Director or the Deputy 
National Intelligence Director.
    ``(3)(A) Any determination or decision to be made under an 
authority referred to in paragraph (1) by the head of an agency may be 
made with respect to individual purchases and contracts or with respect 
to classes of purchases or contracts, and shall be final.
    ``(B) Except as provided in subparagraph (C), the National 
Intelligence Director or the Deputy National Intelligence Director may, 
in such official's discretion, delegate to any officer or other 
official of the Office of the National Intelligence Director any 
authority to make a determination or decision as the head of the agency 
under an authority referred to in paragraph (1).
    ``(C) The limitations and conditions set forth in section 3(d) of 
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403c(d)) shall 
apply to the exercise by the National Intelligence Director of an 
authority referred to in paragraph (1).
    ``(D) Each determination or decision required by an authority 
referred to in the second sentence of section 3(d) of the Central 
Intelligence Agency Act of 1949 shall be based upon written findings 
made by the official making such determination or decision, which 
findings shall be final and shall be available within the Office of the 
National Intelligence Director for a period of at least six years 
following the date of such determination or decision.
    ``(o) Consideration of Views of Elements of the Intelligence 
Community.--In carrying out the duties and responsibilities under this 
section, the National Intelligence Director shall take into account the 
views of a head of a department containing an element of the 
intelligence community and of the Director of the Central Intelligence 
Agency.

             ``office of the national intelligence director

    ``Sec. 103. (a) Establishment of Office; Function.--(1) There is an 
Office of the National Intelligence Director. The Office of the 
National Intelligence Director shall not be located within the 
Executive Office of the President.
    ``(2) The function of the Office is to assist the National 
Intelligence Director in carrying out the duties and responsibilities 
of the Director under this Act and to carry out such other duties as 
may be prescribed by the President or by law.
    ``(3) Any authority, power, or function vested by law in any 
officer, employee, or part of the Office of the National Intelligence 
Director is vested in, or may be exercised by, the National 
Intelligence Director.
    ``(4) Exemptions, exceptions, and exclusions for the Central 
Intelligence Agency or for personnel, resources, or activities of such 
Agency from otherwise applicable laws, other than the exception 
contained in section 104A(c)(1) shall apply in the same manner to the 
Office of the National Intelligence Director and the personnel, 
resources, or activities of such Office.
    ``(b) Office of National Intelligence Director.--(1) The Office of 
the National Intelligence Director is composed of the following:
            ``(A) The National Intelligence Director.
            ``(B) The Deputy National Intelligence Director.
            ``(C) The Deputy National Intelligence Director for 
        Operations.
            ``(D) The Deputy National Intelligence Director for 
        Community Management and Resources.
            ``(E) The Associate National Intelligence Director for 
        Military Support.
            ``(F) The Associate National Intelligence Director for 
        Domestic Security.
            ``(G) The Associate National Intelligence Director for 
        Diplomatic Affairs.
            ``(H) The National Intelligence Council.
            ``(I) The General Counsel to the National Intelligence 
        Director.
            ``(J) Such other offices and officials as may be 
        established by law or the National Intelligence Director may 
        establish or designate in the Office.
    ``(2) To assist the National Intelligence Director in fulfilling 
the duties and responsibilities of the Director, the Director shall 
employ and utilize in the Office of the National Intelligence Director 
a staff having expertise in matters relating to such duties and 
responsibilities and may establish permanent positions and appropriate 
rates of pay with respect to such staff.
    ``(c) Deputy National Intelligence Director.--(1) There is a Deputy 
National Intelligence Director who shall be appointed by the President, 
by and with the advice and consent of the Senate.
    ``(2) The Deputy National Intelligence Director shall assist the 
National Intelligence Director in carrying out the responsibilities of 
the National Intelligence Director under this Act.
    ``(3) The Deputy National Intelligence Director shall act for, and 
exercise the powers of, the National Intelligence Director during the 
absence or disability of the National Intelligence Director or during a 
vacancy in the position of the National Intelligence Director.
    ``(4) The Deputy National Intelligence Director takes precedence in 
the Office of the National Intelligence Director immediately after the 
National Intelligence Director.
    ``(d) Deputy National Intelligence Director for Operations.--(1) 
There is a Deputy National Intelligence Director for Operations.
    ``(2) The Deputy National Intelligence Director for Operations 
shall--
            ``(A) assist the National Intelligence Director in all 
        aspects of intelligence operations, including intelligence 
        tasking, requirements, collection, and analysis;
            ``(B) assist the National Intelligence Director in 
        overseeing the national intelligence centers; and
            ``(C) perform such other duties and exercise such powers as 
        National Intelligence Director may prescribe.
    ``(e) Deputy National Intelligence Director for Community 
Management and Resources.--(1) There is a Deputy National Intelligence 
Director for Community Management and Resources.
    ``(2) The Deputy National Intelligence Director for Community 
Management and Resources shall--
            ``(A) assist the National Intelligence Director in all 
        aspects of management and resources, including administration, 
        budgeting, information security, personnel, training, and 
        programmatic functions; and
            ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe.
    ``(f) Associate National Intelligence Director for Military 
Support.--(1) There is an Associate National Intelligence Director for 
Military Support who shall be appointed by the National Intelligence 
Director, in consultation with the Secretary of Defense.
    ``(2) The Associate National Intelligence Director for Military 
Support shall--
            ``(A) ensure that the intelligence needs of the Department 
        of Defense are met; and
            ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe.
    ``(g) Associate National Intelligence Director for Domestic 
Security.--(1) There is an Associate National Intelligence Director for 
Domestic Security who shall be appointed by the National Intelligence 
Director in consultation with the Attorney General and the Secretary of 
Homeland Security.
    ``(2) The Associate National Intelligence Director for Domestic 
Security shall--
            ``(A) ensure that the intelligence needs of the Department 
        of Justice, the Department of Homeland Security, and other 
        relevant executive departments and agencies are met; and
            ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe, except that 
        the National Intelligence Director may not make such officer 
        responsible for disseminating any domestic or homeland security 
        information to State government or local government officials 
        or any private sector entity.
    ``(h) Associate National Intelligence Director for Diplomatic 
Affairs.--(1) There is an Associate National Intelligence Director for 
Diplomatic Affairs who shall be appointed by the National Intelligence 
Director in consultation with the Secretary of State.
    ``(2) The Associate National Intelligence Director for Diplomatic 
Affairs shall--
            ``(A) ensure that the intelligence needs of the Department 
        of State are met; and
            ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe.
    ``(i) Military Status of Director and Deputy Directors.--(1) Not 
more than one of the individuals serving in the positions specified in 
paragraph (2) may be a commissioned officer of the Armed Forces in 
active status.
    ``(2) The positions referred to in this paragraph are the 
following:
            ``(A) The National Intelligence Director.
            ``(B) The Deputy National Intelligence Director.
    ``(3) It is the sense of Congress that, under ordinary 
circumstances, it is desirable that one of the individuals serving in 
the positions specified in paragraph (2)--
            ``(A) be a commissioned officer of the Armed Forces, in 
        active status; or
            ``(B) have, by training or experience, an appreciation of 
        military intelligence activities and requirements.
    ``(4) A commissioned officer of the Armed Forces, while serving in 
a position specified in paragraph (2)--
            ``(A) shall not be subject to supervision or control by the 
        Secretary of Defense or by any officer or employee of the 
        Department of Defense;
            ``(B) shall not exercise, by reason of the officer's status 
        as a commissioned officer, any supervision or control with 
        respect to any of the military or civilian personnel of the 
        Department of Defense except as otherwise authorized by law; 
        and
            ``(C) shall not be counted against the numbers and 
        percentages of commissioned officers of the rank and grade of 
        such officer authorized for the military department of that 
        officer.
    ``(5) Except as provided in subparagraph (A) or (B) of paragraph 
(4), the appointment of an officer of the Armed Forces to a position 
specified in paragraph (2) shall not affect the status, position, rank, 
or grade of such officer in the Armed Forces, or any emolument, 
perquisite, right, privilege, or benefit incident to or arising out of 
such status, position, rank, or grade.
    ``(6) A commissioned officer of the Armed Forces on active duty who 
is appointed to a position specified in paragraph (2), while serving in 
such position and while remaining on active duty, shall continue to 
receive military pay and allowances and shall not receive the pay 
prescribed for such position. Funds from which such pay and allowances 
are paid shall be reimbursed from funds available to the National 
Intelligence Director.
    ``(j) National Intelligence Council.--(1) Within the Office of the 
Deputy National Intelligence Director for Operations, there is a 
National Intelligence Council.
    ``(2)(A) The National Intelligence Council shall be composed of 
senior analysts within the intelligence community and substantive 
experts from the public and private sector, who shall be appointed by 
and report to the Deputy National Intelligence Director for Operations.
    ``(B) The Director shall prescribe appropriate security 
requirements for personnel appointed from the private sector as a 
condition of service on the Council, or as contractors of the Council 
or employees of such contractors, to ensure the protection of 
intelligence sources and methods while avoiding, wherever possible, 
unduly intrusive requirements which the Director considers to be 
unnecessary for this purpose.
    ``(3) The National Intelligence Council shall--
            ``(A) produce national intelligence estimates for the 
        United States Government, which shall include as a part of such 
        estimates in their entirety, alternative views, if any, held by 
        elements of the intelligence community;
            ``(B) evaluate community-wide collection and production of 
        intelligence by the intelligence community and the requirements 
        and resources of such collection and production; and
            ``(C) otherwise assist the National Intelligence Director 
        in carrying out the responsibility of the National Intelligence 
        Director to provide national intelligence.
    ``(4) Within their respective areas of expertise and under the 
direction of the Deputy National Intelligence Director for Operations, 
the members of the National Intelligence Council shall constitute the 
senior intelligence advisers of the intelligence community for purposes 
of representing the views of the intelligence community within the 
United States Government.
    ``(5) Subject to the direction and control of the Deputy National 
Intelligence Director for Operations, the National Intelligence Council 
may carry out its responsibilities under this section by contract, 
including contracts for substantive experts necessary to assist the 
Council with particular assessments under this subsection.
    ``(6) The Deputy National Intelligence Director for Operations 
shall make available to the National Intelligence Council such 
personnel as may be necessary to permit the Council to carry out its 
responsibilities under this section.
    ``(7) The heads of the elements of the intelligence community 
shall, as appropriate, furnish such support to the National 
Intelligence Council, including the preparation of intelligence 
analyses, as may be required by the National Intelligence Director.
    ``(k) General Counsel to the National Intelligence Director.--(1) 
There is a General Counsel to the National Intelligence Director.
    ``(2) The individual serving in the position of General Counsel to 
the National Intelligence Director may not, while so serving, also 
serve as the General Counsel of any other agency or department of the 
United States.
    ``(3) The General Counsel to the National Intelligence Director is 
the chief legal officer for the National Intelligence Director.
    ``(4) The General Counsel to the National Intelligence Director 
shall perform such functions as the National Intelligence Director may 
prescribe.
    ``(l) Intelligence Community Information Technology Officer.--(1) 
There is an Intelligence Community Information Technology Officer who 
shall be appointed by the National Intelligence Director.
    ``(2) The mission of the Intelligence Community Information 
Technology Officer is to assist the National Intelligence Director in 
ensuring the sharing of information in the fullest and most prompt 
manner between and among elements of the intelligence community 
consistent with section 102A(g).
    ``(3) The Intelligence Community Information Technology Officer 
shall--
            ``(A) assist the Deputy National Intelligence Director for 
        Community Management and Resources in developing and 
        implementing an integrated information technology network;
            ``(B) develop an enterprise architecture for the 
        intelligence community and assist the Deputy National 
        Intelligence Director for Community Management and Resources in 
        ensuring that elements of the intelligence community comply 
        with such architecture;
            ``(C) have procurement approval authority over all 
        enterprise architecture-related information technology items 
        funded in the National Intelligence Program;
            ``(D) ensure that all such elements have the most direct 
        and continuous electronic access to all information (including 
        unevaluated intelligence consistent with existing laws and the 
        guidelines referred to in section 102A(b)) necessary for 
        appropriately cleared analysts to conduct comprehensive all-
        source analysis and for appropriately cleared policymakers to 
        perform their duties--
                    ``(i) directly, in the case of the elements of the 
                intelligence community within the National Intelligence 
                Program, and
                    ``(ii) in conjunction with the Secretary of Defense 
                and other applicable heads of departments with 
                intelligence elements outside the National Intelligence 
                Program;
            ``(E) review and provide recommendations to the Deputy 
        National Intelligence Director for Community Management and 
        Resources on National Intelligence Program budget requests for 
        information technology and national security systems;
            ``(F) assist the Deputy National Intelligence Director for 
        Community Management and Resources in promulgating and 
        enforcing standards on information technology and national 
        security systems that apply throughout the elements of the 
        intelligence community;
            ``(G) ensure that within and between the elements of the 
        National Intelligence Program, duplicative and unnecessary 
        information technology and national security systems are 
        eliminated; and
            ``(H) pursuant to the direction of the National 
        Intelligence Director, consult with the Director of the Office 
        of Management and Budget to ensure that the Office of the 
        National Intelligence Director coordinates and complies with 
        national security requirements consistent with applicable law, 
        Executive orders, and guidance; and
            ``(I) perform such other duties with respect to the 
        information systems and information technology of the Office of 
        the National Intelligence Director as may be prescribed by the 
        Deputy National Intelligence Director for Community Management 
        and Resources or specified by law.

                     ``central intelligence agency

    ``Sec. 104. (a) Central Intelligence Agency.--There is a Central 
Intelligence Agency.
    ``(b) Function.--The function of the Central Intelligence Agency is 
to assist the Director of the Central Intelligence Agency in carrying 
out the responsibilities specified in section 104A(c).

             ``director of the central intelligence agency

    ``Sec. 104A. (a) Director of Central Intelligence Agency.--There is 
a Director of the Central Intelligence Agency who shall be appointed by 
the President, by and with the advice and consent of the Senate. The 
Director shall be under the authority, direction, and control of the 
National Intelligence Director, except as otherwise determined by the 
President.
    ``(b) Duties.--In the capacity as Director of the Central 
Intelligence Agency, the Director of the Central Intelligence Agency 
shall--
            ``(1) carry out the responsibilities specified in 
        subsection (c); and
            ``(2) serve as the head of the Central Intelligence Agency.
    ``(c) Responsibilities.--The Director of the Central Intelligence 
Agency shall--
            ``(1) collect intelligence through human sources and by 
        other appropriate means, except that the Director of the 
        Central Intelligence Agency shall have no police, subpoena, or 
        law enforcement powers or internal security functions;
            ``(2) provide overall direction for the collection of 
        national intelligence through human sources by elements of the 
        intelligence community authorized to undertake such collection 
        and, in coordination with other agencies of the Government 
        which are authorized to undertake such collection, ensure that 
        the most effective use is made of resources and that the risks 
        to the United States and those involved in such collection are 
        minimized;
            ``(3) correlate and evaluate intelligence related to the 
        national security and provide appropriate dissemination of such 
        intelligence;
            ``(4) perform such additional services as are of common 
        concern to the elements of the intelligence community, which 
        services the National Intelligence Director determines can be 
        more efficiently accomplished centrally; and
            ``(5) perform such other functions and duties related to 
        intelligence affecting the national security as the President 
        or the National Intelligence Director may direct.
    ``(d) Deputy Director of the Central Intelligence Agency.--There is 
a Deputy Director of the Central Intelligence Agency who shall be 
appointed by the President. The Deputy Director shall perform such 
functions as the Director may prescribe and shall perform the duties of 
the Director during the Director's absence or disability or during a 
vacancy in the position of the Director of the Central Intelligence 
Agency.
    ``(e) Termination of Employment of CIA Employees.--(1) 
Notwithstanding the provisions of any other law, the Director of the 
Central Intelligence Agency may, in the discretion of the Director, 
terminate the employment of any officer or employee of the Central 
Intelligence Agency whenever the Director considers the termination of 
employment of such officer or employee necessary or advisable in the 
interests of the United States.
    ``(2) Any termination of employment of an officer or employee under 
paragraph (1) shall not affect the right of the officer or employee to 
seek or accept employment in any other department, agency, or element 
of the United States Government if declared eligible for such 
employment by the Office of Personnel Management.''.
    (b) First Director.--(1) When the Senate receives the nomination of 
a person for the initial appointment by the President for the position 
of National Intelligence Director, it shall consider and dispose of 
such nomination within a period of 30 legislative days.
    (2) If the Senate does not dispose of such nomination referred to 
in paragraph (1) within such period--
            (A) Senate confirmation is not required; and
            (B) the appointment of such nominee as National 
        Intelligence Director takes effect upon administration of the 
        oath of office.
    (3) For the purposes of this subsection, the term ``legislative 
day'' means a day on which the Senate is in session.

SEC. 1012. REVISED DEFINITION OF NATIONAL INTELLIGENCE.

    Paragraph (5) of section 3 of the National Security Act of 1947 (50 
U.S.C. 401a) is amended to read as follows:
            ``(5) The terms `national intelligence' and `intelligence 
        related to national security' refer to all intelligence, 
        regardless of the source from which derived and including 
        information gathered within or outside the United States, 
        that--
                    ``(A) pertains, as determined consistent with any 
                guidance issued by the President, to more than one 
                United States Government agency; and
                    ``(B) that involves--
                            ``(i) threats to the United States, its 
                        people, property, or interests;
                            ``(ii) the development, proliferation, or 
                        use of weapons of mass destruction; or
                            ``(iii) any other matter bearing on United 
                        States national or homeland security.''.

SEC. 1013. JOINT PROCEDURES FOR OPERATIONAL COORDINATION BETWEEN 
              DEPARTMENT OF DEFENSE AND CENTRAL INTELLIGENCE AGENCY.

    (a) Development of Procedures.--The National Intelligence Director, 
in consultation with the Secretary of Defense and the Director of the 
Central Intelligence Agency, shall develop joint procedures to be used 
by the Department of Defense and the Central Intelligence Agency to 
improve the coordination and deconfliction of operations that involve 
elements of both the Armed Forces and the Central Intelligence Agency 
consistent with national security and the protection of human 
intelligence sources and methods. Those procedures shall, at a minimum, 
provide the following:
            (1) Methods by which the Director of the Central 
        Intelligence Agency and the Secretary of Defense can improve 
        communication and coordination in the planning, execution, and 
        sustainment of operations, including, as a minimum--
                    (A) information exchange between senior officials 
                of the Central Intelligence Agency and senior officers 
                and officials of the Department of Defense when 
                planning for such an operation commences by either 
                organization; and
                    (B) exchange of information between the Secretary 
                and the Director of the Central Intelligence Agency to 
                ensure that senior operational officials in both the 
                Department of Defense and the Central Intelligence 
                Agency have knowledge of the existence of the ongoing 
                operations of the other.
            (2) When appropriate, in cases where the Department of 
        Defense and the Central Intelligence Agency are conducting 
        separate missions in the same geographical area, mutual 
        agreement on the tactical and strategic objectives for the 
        region and a clear delineation of operational responsibilities 
        to prevent conflict and duplication of effort.
    (b) Implementation Report.--Not later than 180 days after the date 
of the enactment of the Act, the National Intelligence Director shall 
submit to the congressional defense committees (as defined in section 
101 of title 10, United States Code) and the congressional intelligence 
committees (as defined in section 3(7) of the National Security Act of 
1947 (50 U.S.C. 401a(7))) a report describing the procedures 
established pursuant to subsection (a) and the status of the 
implementation of those procedures.

SEC. 1014. ROLE OF NATIONAL INTELLIGENCE DIRECTOR IN APPOINTMENT OF 
              CERTAIN OFFICIALS RESPONSIBLE FOR INTELLIGENCE-RELATED 
              ACTIVITIES.

    Section 106 of the National Security Act of 1947 (50 U.S.C. 403-6) 
is amended by striking all after the heading and inserting the 
following:
    ``(a) Recommendation of NID in Certain Appointments.--(1) In the 
event of a vacancy in a position referred to in paragraph (2), the 
National Intelligence Director shall recommend to the President an 
individual for nomination to fill the vacancy.
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Deputy National Intelligence Director.
            ``(B) The Director of the Central Intelligence Agency.
    ``(b) Concurrence of NID in Appointments to Positions in the 
Intelligence Community.--(1) In the event of a vacancy in a position 
referred to in paragraph (2), the head of the department or agency 
having jurisdiction over the position shall obtain the concurrence of 
the National Intelligence Director before appointing an individual to 
fill the vacancy or recommending to the President an individual to be 
nominated to fill the vacancy. If the Director does not concur in the 
recommendation, the head of the department or agency concerned may not 
fill the vacancy or make the recommendation to the President (as the 
case may be).
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance Office.
            ``(C) The Director of the National Geospatial-Intelligence 
        Agency.
    ``(c) Consultation With National Intelligence Director in Certain 
Positions.--(1) In the event of a vacancy in a position referred to in 
paragraph (2), the head of the department or agency having jurisdiction 
over the position shall consult with the National Intelligence Director 
before appointing an individual to fill the vacancy or recommending to 
the President an individual to be nominated to fill the vacancy.
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Director of the Defense Intelligence Agency.
            ``(B) The Assistant Secretary of State for Intelligence and 
        Research.
            ``(C) The Director of the Office of Intelligence of the 
        Department of Energy.
            ``(D) The Director of the Office of counterintelligence of 
        the Department of Energy.
            ``(E) The Assistant Secretary for Intelligence and Analysis 
        of the Department of the Treasury.
            ``(F) The Executive Assistant Director for Intelligence of 
        the Federal Bureau of Investigation.
            ``(G) The Under Secretary of Homeland Security for 
        Information Analysis and Infrastructure Protection.
            ``(H) The Deputy Assistant Commandant of the Coast Guard 
        for Intelligence.

SEC. 1015. INITIAL APPOINTMENT OF THE NATIONAL INTELLIGENCE DIRECTOR.

    (a) Initial Appointment of the National Intelligence Director.--
Notwithstanding section 102(a)(1) of the National Security Act of 1947, 
as added by section 1011(a), the individual serving as the Director of 
Central Intelligence on the date immediately preceding the date of the 
enactment of this Act may, at the discretion of the President, become 
the National Intelligence Director as of the date of the enactment of 
this Act.
    (b) General References.--(1) Any reference to the Director of 
Central Intelligence in the Director's capacity as the head of the 
intelligence community in any law, regulation, document, paper, or 
other record of the United States shall be deemed to be a reference to 
the National Intelligence Director.
    (2) Any reference to the Director of Central Intelligence in the 
Director's capacity as the head of the Central Intelligence Agency in 
any law, regulation, document, paper, or other record of the United 
States shall be deemed to be a reference to the Director of the Central 
Intelligence Agency.
    (3) Any reference to the Deputy Director of Central Intelligence in 
the Deputy Director's capacity as deputy to the head of the 
intelligence community in any law, regulation, document, paper, or 
other record of the United States shall be deemed to be a reference to 
the Deputy National Intelligence Director.
    (4) Any reference to the Deputy Director of Central Intelligence 
for Community Management in any law, regulation, document, paper, or 
other record of the United States shall be deemed to be a reference to 
the Deputy National Intelligence Director for Community Management and 
Resources.

SEC. 1016. EXECUTIVE SCHEDULE MATTERS.

    (a) Executive Schedule Level I.--Section 5312 of title 5, United 
States Code, is amended by adding the end the following new item:
            ``National Intelligence Director.''.
    (b) Executive Schedule Level II.--Section 5313 of title 5, United 
States Code, is amended by adding at the end the following new items:
            ``Deputy National Intelligence Director.
            ``Director of the National counterterrorism Center.''.
    (c) Executive Schedule Level IV.--Section 5315 of title 5, United 
States Code, is amended by striking the item relating to the Assistant 
Directors of Central Intelligence.

   Subtitle B--National counterterrorism Center and Civil Liberties 
                              Protections

SEC. 1021. NATIONAL COUNTERTERRORISM CENTER.

    (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.) is amended by adding at the end the following new 
section:

                   ``national counterterrorism center

    ``Sec. 119. (a) Establishment of Center.--There is within the 
Office of the National Intelligence Director a National 
counterterrorism Center.
    ``(b) Director of National counterterrorism Center.--There is a 
Director of the National counterterrorism Center, who shall be the head 
of the National counterterrorism Center, who shall be appointed by 
National Intelligence Director.
    ``(c) Supervision.--The Director of the National counterterrorism 
Center shall report to the National Intelligence Director on--
            ``(1) the budget and programs of the National 
        counterterrorism Center;
            ``(2) the activities of the Directorate of Intelligence of 
        the National counterterrorism Center under subsection (h);
            ``(3) the conduct of intelligence operations implemented by 
        other elements of the intelligence community; and
            ``(4) the planning and progress of joint counterterrorism 
        operations (other than intelligence operations).
The National Intelligence Director shall carry out this section through 
the Deputy National Intelligence Director for Operations.
    ``(d) Primary Missions.--The primary missions of the National 
counterterrorism Center shall be as follows:
            ``(1) To serve as the primary organization in the United 
        States Government for analyzing and integrating all 
        intelligence possessed or acquired by the United States 
        Government pertaining to terrorism and counterterrorism, 
        excepting intelligence pertaining exclusively to domestic 
        counterterrorism.
            ``(2) To conduct strategic operational planning for 
        counterterrorism activities, integrating all instruments of 
        national power, including diplomatic, financial, military, 
        intelligence, homeland security, and law enforcement activities 
        within and among agencies.
            ``(3) To support operational responsibilities assigned to 
        lead agencies for counterterrorism activities by ensuring that 
        such agencies have access to and receive intelligence needed to 
        accomplish their assigned activities.
            ``(4) To ensure that agencies, as appropriate, have access 
        to and receive all-source intelligence support needed to 
        execute their counterterrorism plans or perform independent, 
        alternative analysis.
    ``(e) Domestic counterterrorism Intelligence.--(1) The Center may, 
consistent with applicable law, the direction of the President, and the 
guidelines referred to in section 102A(b), receive intelligence 
pertaining exclusively to domestic counterterrorism from any Federal, 
State, or local government or other source necessary to fulfill its 
responsibilities and retain and disseminate such intelligence.
    ``(2) Any agency authorized to conduct counterterrorism activities 
may request information from the Center to assist it in its 
responsibilities, consistent with applicable law and the guidelines 
referred to in section 102A(b).
    ``(f) Duties and Responsibilities of Director.--The Director of the 
National counterterrorism Center shall--
            ``(1) serve as the principal adviser to the National 
        Intelligence Director on intelligence operations relating to 
        counterterrorism;
            ``(2) provide strategic guidance and plans for the civilian 
        and military counterterrorism efforts of the United States 
        Government and for the effective integration of 
        counterterrorism intelligence and operations across agency 
        boundaries, both inside and outside the United States;
            ``(3) advise the National Intelligence Director on the 
        extent to which the counterterrorism program recommendations 
        and budget proposals of the departments, agencies, and elements 
        of the United States Government conform to the priorities 
        established by the President;
            ``(4) disseminate terrorism information, including current 
        terrorism threat analysis, to the President, the Vice 
        President, the Secretaries of State, Defense, and Homeland 
        Security, the Attorney General, the Director of the Central 
        Intelligence Agency, and other officials of the executive 
        branch as appropriate, and to the appropriate committees of 
        Congress;
            ``(5) support the Department of Justice and the Department 
        of Homeland Security, and other appropriate agencies, in 
        fulfillment of their responsibilities to disseminate terrorism 
        information, consistent with applicable law, Executive Orders 
        and other Presidential guidance, to State and local government 
        officials, and other entities, and coordinate dissemination of 
        terrorism information to foreign governments as approved by the 
        National Intelligence Director;
            ``(6) consistent with priorities approved by the President, 
        assist the National Intelligence Director in establishing 
        requirements for the intelligence community for the collection 
        of terrorism information; and
            ``(7) perform such other duties as the National 
        Intelligence Director may prescribe or are prescribed by law.
    ``(g) Limitation.--The Director of the National counterterrorism 
Center may not direct the execution of counterterrorism operations.
    ``(h) Resolution of Disputes.--The National Intelligence Director 
shall resolve disagreements between the National counterterrorism 
Center and the head of a department, agency, or element of the United 
States Government on designations, assignments, plans, or 
responsibilities. The head of such a department, agency, or element may 
appeal the resolution of the disagreement by the National Intelligence 
Director to the President.
    ``(i) Directorate of Intelligence.--The Director of the National 
counterterrorism Center shall establish and maintain within the 
National counterterrorism Center a Directorate of Intelligence which 
shall have primary responsibility within the United States Government 
for analysis of terrorism and terrorist organizations (except for 
purely domestic terrorism and domestic terrorist organizations) from 
all sources of intelligence, whether collected inside or outside the 
United States.
    ``(j) Directorate of Strategic Planning.--The Director of the 
National counterterrorism Center shall establish and maintain within 
the National counterterrorism Center a Directorate of Strategic 
Planning which shall provide strategic guidance and plans for 
counterterrorism operations conducted by the United States 
Government.''.
    (b) Clerical Amendment.--The table of sections for the National 
Security Act of 1947 is amended by inserting after the item relating to 
section 118 the following new item:

``Sec. 119. National counterterrorism Center.''.

SEC. 1022. CIVIL LIBERTIES PROTECTION OFFICER.

    (a) Civil Liberties Protection Officer.--(1) Within the Office of 
the National Intelligence Director, there is a Civil Liberties 
Protection Officer who shall be appointed by the National Intelligence 
Director.
    (2) The Civil Liberties Protection Officer shall report directly to 
the National Intelligence Director.
    (b) Duties.--The Civil Liberties Protection Officer shall--
            (1) ensure that the protection of civil liberties and 
        privacy is appropriately incorporated in the policies and 
        procedures developed for and implemented by the Office of the 
        National Intelligence Director and the elements of the 
        intelligence community within the National Intelligence 
        Program;
            (2) oversee compliance by the Office and the National 
        Intelligence Director with requirements under the Constitution 
        and all laws, regulations, Executive orders, and implementing 
        guidelines relating to civil liberties and privacy;
            (3) review and assess complaints and other information 
        indicating possible abuses of civil liberties and privacy in 
        the administration of the programs and operations of the Office 
        and the National Intelligence Director and, as appropriate, 
        investigate any such complaint or information;
            (4) ensure that the use of technologies sustain, and do not 
        erode, privacy protections relating to the use, collection, and 
        disclosure of personal information;
            (5) ensure that personal information contained in a system 
        of records subject to section 552a of title 5, United States 
        Code (popularly referred to as the `Privacy Act'), is handled 
        in full compliance with fair information practices as set out 
        in that section;
            (6) conduct privacy impact assessments when appropriate or 
        as required by law; and
            (7) perform such other duties as may be prescribed by the 
        National Intelligence Director or specified by law.
    (c) Use of Agency Inspectors General.--When appropriate, the Civil 
Liberties Protection Officer may refer the Office of Inspector General 
having responsibility for the affected element of the department or 
agency of the intelligence community to conduct an investigation under 
paragraph (3) of subsection (b).

            Subtitle C--Joint Intelligence Community Council

SEC. 1031. JOINT INTELLIGENCE COMMUNITY COUNCIL.

    (a) Establishment.--There is hereby established a Joint 
Intelligence Community Council.
    (b) Functions.--(1) The Joint Intelligence Community Council shall 
provide advice to the National Intelligence Director as appropriate.
    (2) The National Intelligence Director shall consult with the Joint 
Intelligence Community Council in developing guidance for the 
development of the annual National Intelligence Program budget.
    (c) Membership.--The Joint Intelligence Community Council shall 
consist of the following:
            (1) The National Intelligence Director, who shall chair the 
        Council.
            (2) The Secretary of State.
            (3) The Secretary of the Treasury.
            (4) The Secretary of Defense.
            (5) The Attorney General.
            (6) The Secretary of Energy.
            (7) The Secretary of Homeland Security.
            (8) Such other officials of the executive branch as the 
        President may designate.

         Subtitle D--Improvement of Human Intelligence (HUMINT)

SEC. 1041. HUMAN INTELLIGENCE AS AN INCREASINGLY CRITICAL COMPONENT OF 
              THE INTELLIGENCE COMMUNITY.

    It is a sense of Congress that--
            (1) the human intelligence officers of the intelligence 
        community have performed admirably and honorably in the face of 
        great personal dangers;
            (2) during an extended period of unprecedented investment 
        and improvements in technical collection means, the human 
        intelligence capabilities of the United States have not 
        received the necessary and commensurate priorities;
            (3) human intelligence is becoming an increasingly 
        important capability to provide information on the asymmetric 
        threats to the national security of the United States;
            (4) the continued development and improvement of a robust 
        and empowered and flexible human intelligence work force is 
        critical to identifying, understanding, and countering the 
        plans and intentions of the adversaries of the United States; 
        and
            (5) an increased emphasis on, and resources applied to, 
        enhancing the depth and breadth of human intelligence 
        capabilities of the United States intelligence community must 
        be among the top priorities of the National Intelligence 
        Director.

SEC. 1042. IMPROVEMENT OF HUMAN INTELLIGENCE CAPACITY.

    Not later than 6 months after the date of the enactment of this 
Act, the National Intelligence Director shall submit to Congress a 
report on existing human intelligence (HUMINT) capacity which shall 
include a plan to implement changes, as necessary, to accelerate 
improvements to, and increase the capacity of, HUMINT across the 
intelligence community.

  Subtitle E--Improvement of Education for the Intelligence Community

SEC. 1051. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS UNDER 
              NATIONAL SECURITY EDUCATION PROGRAM.

    (a) In General.--(1) Subsection (b)(2) of section 802 of the David 
L. Boren National Security Education Act of 1991 (50 U.S.C. 1902) is 
amended to read as follows:
            ``(2) will meet the requirements for obligated service 
        described in subsection (j); and''.
    (2) Such section is further amended by adding at the end the 
following new subsection:
    ``(j) Requirements for Obligated Service in the Government.--(1) 
Each recipient of a scholarship or a fellowship under the program shall 
work in a specified national security position. In this subsection, the 
term `specified national security position' means a position of a 
department or agency of the United States that the Secretary certifies 
is appropriate to use the unique language and region expertise acquired 
by the recipient pursuant to the study for which scholarship or 
fellowship assistance (as the case may be) was provided under the 
program.
    ``(2) Each such recipient shall commence work in a specified 
national security position as soon as practicable but in no case later 
than two years after the completion by the recipient of the study for 
which scholarship or fellowship assistance (as the case may be) was 
provided under the program.
    ``(3) Each such recipient shall work in a specified national 
security position for a period specified by the Secretary, which period 
shall include--
            ``(A) in the case of a recipient of a scholarship, one year 
        of service for each year, or portion thereof, for which such 
        scholarship assistance was provided, and
            ``(B) in the case of a recipient of a fellowship, not less 
        than one nor more than three years for each year, or portion 
        thereof, for which such fellowship assistance was provided.
    ``(4) Recipients shall seek specified national security positions 
as follows:
            ``(A) In the Department of Defense or in any element of the 
        intelligence community.
            ``(B) In the Department of State or in the Department of 
        Homeland Security, if the recipient demonstrates to the 
        Secretary that no position is available in the Department of 
        Defense or in any element of the intelligence community.
            ``(C) In any other Federal department or agency not 
        referred to in subparagraphs (A) and (B), if the recipient 
        demonstrates to the Secretary that no position is available in 
        a Federal department or agency specified in such paragraphs.''.
    (b) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out subsection (j) of section 802 of the David L. 
Boren National Security Education Act of 1991, as added by subsection 
(a). In prescribing such regulations, the Secretary shall establish 
standards that recipients of scholarship and fellowship assistance 
under the program under section 802 of the David L. Boren National 
Security Education Act of 1991 are required to demonstrate in order to 
satisfy the requirement of a good faith effort to gain employment as 
required under such subsection.
    (c) Applicability.--(1) The amendments made by subsection (a) shall 
apply with respect to service agreements entered into under the David 
L. Boren National Security Education Act of 1991 on or after the date 
of the enactment of this Act.
    (2) The amendments made by subsection (a) shall not affect the 
force, validity, or terms of any service agreement entered into under 
the David L. Boren National Security Education Act of 1991 before the 
date of the enactment of this Act that is in force as of that date.

SEC. 1052. IMPROVEMENTS TO THE NATIONAL FLAGSHIP LANGUAGE INITIATIVE.

    (a) Increase in Annual Authorization of Appropriations.--(1) Title 
VIII of the Intelligence Authorization Act for Fiscal Year 1992 (Public 
Law 102-183; 105 Stat. 1271), as amended by section 311(c) of the 
Intelligence Authorization Act for Fiscal Year 1994 (Public Law 103-
178; 107 Stat. 2037) and by section 333(b) of the Intelligence 
Authorization Act for Fiscal Year 2003 (Public Law 107-306; 116 Stat. 
2397), is amended in subsection (a) of section 811 by striking ``there 
is authorized to be appropriated to the Secretary for each fiscal year, 
beginning with fiscal year 2003, $10,000,000,'' and inserting ``there 
is authorized to be appropriated to the Secretary for each of fiscal 
years 2003 and 2004, $10,000,000, and for fiscal year 2005 and each 
subsequent fiscal year, $12,000,000,''.
    (2) Subsection (b) of such section is amended by inserting ``for 
fiscal years 2003 and 2004 only'' after ``authorization of 
appropriations under subsection (a)''.
    (b) Requirement for Employment Agreements.--(1) Section 802(i) of 
the David L. Boren National Security Education Act of 1991 (50 U.S.C. 
1902(i)) is amended by adding at the end the following new paragraph:
    ``(5)(A) In the case of an undergraduate or graduate student that 
participates in training in programs under paragraph (1), the student 
shall enter into an agreement described in subsection (b), other than 
such a student who has entered into such an agreement pursuant to 
subparagraph (A)(ii) or (B)(ii) of section 802(a)(1).
    ``(B) In the case of an employee of an agency or department of the 
Federal Government that participates in training in programs under 
paragraph (1), the employee shall agree in writing--
            ``(i) to continue in the service of the agency or 
        department of the Federal Government employing the employee for 
        the period of such training;
            ``(ii) to continue in the service of such agency or 
        department employing the employee following completion of such 
        training for a period of two years for each year, or part of 
        the year, of such training;
            ``(iii) to reimburse the United States for the total cost 
        of such training (excluding the employee's pay and allowances) 
        provided to the employee if, before the completion by the 
        employee of the training, the employment of the employee by the 
        agency or department is terminated due to misconduct by the 
        employee or by the employee voluntarily; and
            ``(iv) to reimburse the United States if, after completing 
        such training, the employment of the employee by the agency or 
        department is terminated either by the agency or department due 
        to misconduct by the employee or by the employee voluntarily, 
        before the completion by the employee of the period of service 
        required in clause (ii), in an amount that bears the same ratio 
        to the total cost of the training (excluding the employee's pay 
        and allowances) provided to the employee as the unserved 
        portion of such period of service bears to the total period of 
        service under clause (ii).
    ``(C) Subject to subparagraph (D), the obligation to reimburse the 
United States under an agreement under subparagraph (A) is for all 
purposes a debt owing the United States.
    ``(D) The head of an element of the intelligence community may 
release an employee, in whole or in part, from the obligation to 
reimburse the United States under an agreement under subparagraph (A) 
when, in the discretion of the head of the element, the head of the 
element determines that equity or the interests of the United States so 
require.''.
    (2) The amendment made by paragraph (1) shall apply to training 
that begins on or after the date that is 90 days after the date of the 
enactment of this Act.
    (c) Increase in the Number of Participating Educational 
Institutions.--The Secretary of Defense shall take such steps as the 
Secretary determines will increase the number of qualified educational 
institutions that receive grants under the National Flagship Language 
Initiative to establish, operate, or improve activities designed to 
train students in programs in a range of disciplines to achieve 
advanced levels of proficiency in those foreign languages that the 
Secretary identifies as being the most critical in the interests of the 
national security of the United States.
    (d) Clarification of Authority to Support Studies Abroad.--
Educational institutions that receive grants under the National 
Flagship Language Initiative may support students who pursue total 
immersion foreign language studies overseas of foreign languages that 
are critical to the national security of the United States.

SEC. 1053. ESTABLISHMENT OF SCHOLARSHIP PROGRAM FOR ENGLISH LANGUAGE 
              STUDIES FOR HERITAGE COMMUNITY CITIZENS OF THE UNITED 
              STATES WITHIN THE NATIONAL SECURITY EDUCATION PROGRAM.

    (a) Scholarship Program for English Language Studies for Heritage 
Community Citizens of the United States.--(1) Subsection (a)(1) of 
section 802 of the David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1902) is amended--
            (A) by striking ``and'' at the end of subparagraph (C);
            (B) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
                    ``(E) awarding scholarships to students who--
                            ``(i) are United States citizens who--
                                    ``(I) are native speakers (commonly 
                                referred to as heritage community 
                                residents) of a foreign language that 
                                is identified as critical to the 
                                national security interests of the 
                                United States who should be actively 
                                recruited for employment by Federal 
                                security agencies with a need for 
                                linguists; and
                                    ``(II) are not proficient at a 
                                professional level in the English 
                                language with respect to reading, 
                                writing, and interpersonal skills 
                                required to carry out the national 
                                security interests of the United 
                                States, as determined by the Secretary,
                        to enable such students to pursue English 
                        language studies at an institution of higher 
                        education of the United States to attain 
                        proficiency in those skills; and
                            ``(ii) enter into an agreement to work in a 
                        national security position or work in the field 
                        of education in the area of study for which the 
                        scholarship was awarded in a similar manner (as 
                        determined by the Secretary) as agreements 
                        entered into pursuant to subsection 
                        (b)(2)(A).''.
    (2) The matter following subsection (a)(2) of such section is 
amended--
            (A) in the first sentence, by inserting ``or for the 
        scholarship program under paragraph (1)(E)'' after ``under 
        paragraph (1)(D) for the National Flagship Language Initiative 
        described in subsection (i)''; and
            (B) by adding at the end the following: ``For the 
        authorization of appropriations for the scholarship program 
        under paragraph (1)(E), see section 812.''.
    (3) Section 803(d)(4)(E) of such Act (50 U.S.C. 1903(d)(4)(E)) is 
amended by inserting before the period the following: ``and section 
802(a)(1)(E) (relating to scholarship programs for advanced English 
language studies by heritage community residents)''.
    (b) Funding.--The David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1901 et seq.) is amended by adding at the end the 
following new section:

``SEC. 812. FUNDING FOR SCHOLARSHIP PROGRAM FOR CERTAIN HERITAGE 
              COMMUNITY RESIDENTS.

    ``There is authorized to be appropriated to the Secretary for each 
fiscal year, beginning with fiscal year 2005, $4,000,000, to carry out 
the scholarship programs for English language studies by certain 
heritage community residents under section 802(a)(1)(E).''.

SEC. 1054. SENSE OF CONGRESS WITH RESPECT TO LANGUAGE AND EDUCATION FOR 
              THE INTELLIGENCE COMMUNITY; REPORTS.

    (a) Sense of Congress.--It is the sense of Congress that there 
should be within the Office of the National Intelligence Director a 
senior official responsible to assist the National Intelligence 
Director in carrying out the Director's responsibilities for 
establishing policies and procedure for foreign language education and 
training of the intelligence community. The duties of such official 
should include the following:
            (1) Overseeing and coordinating requirements for foreign 
        language education and training of the intelligence community.
            (2) Establishing policy, standards, and priorities relating 
        to such requirements.
            (3) Identifying languages that are critical to the 
        capability of the intelligence community to carry out national 
        security activities of the United States.
            (4) Monitoring the allocation of resources for foreign 
        language education and training in order to ensure the 
        requirements of the intelligence community with respect to 
        foreign language proficiency are met.
    (b) Reports.--Not later than one year after the date of the 
enactment of this Act, the National Intelligence Director shall submit 
to Congress the following reports:
            (1) A report that identifies--
                    (A) skills and processes involved in learning a 
                foreign language; and
                    (B) characteristics and teaching techniques that 
                are most effective in teaching foreign languages.
            (2)(A) A report that identifies foreign language heritage 
        communities, particularly such communities that include 
        speakers of languages that are critical to the national 
        security of the United States.
            (B) For purposes of subparagraph (A), the term ``foreign 
        language heritage community'' means a community of residents or 
        citizens of the United States--
                    (i) who are native speakers of, or who have fluency 
                in, a foreign language; and
                    (ii) who should be actively recruited for 
                employment by Federal security agencies with a need for 
                linguists.
            (3) A report on--
                    (A) the estimated cost of establishing a program 
                under which the heads of elements of the intelligence 
                community agree to repay employees of the intelligence 
                community for any student loan taken out by that 
                employee for the study of foreign languages critical 
                for the national security of the United States; and
                    (B) the effectiveness of such a program in 
                recruiting and retaining highly qualified personnel in 
                the intelligence community.

SEC. 1055. ADVANCEMENT OF FOREIGN LANGUAGES CRITICAL TO THE 
              INTELLIGENCE COMMUNITY.

    (a) In General.--Title X of the National Security Act of 1947 (50 
U.S.C.) is amended--
            (1) by inserting before section 1001 (50 U.S.C. 441g) the 
        following:

                ``Subtitle A--Science and Technology'';

        and
            (2) by adding at the end the following new subtitles:

                ``Subtitle B--Foreign Languages Program

     ``program on advancement of foreign languages critical to the 
                         intelligence community

    ``Sec. 1011. (a) Establishment of Program.--The Secretary of 
Defense and the National Intelligence Director may jointly establish a 
program to advance foreign languages skills in languages that are 
critical to the capability of the intelligence community to carry out 
national security activities of the United States (hereinafter in this 
subtitle referred to as the `Foreign Languages Program').
    ``(b) Identification of Requisite Actions.--In order to carry out 
the Foreign Languages Program, the Secretary of Defense and the 
National Intelligence Director shall jointly determine actions required 
to improve the education of personnel in the intelligence community in 
foreign languages that are critical to the capability of the 
intelligence community to carry out national security activities of the 
United States to meet the long-term intelligence needs of the United 
States.

                        ``education partnerships

    ``Sec. 1012. (a) In General.--In carrying out the Foreign Languages 
Program, the head of a department or agency containing an element of an 
intelligence community entity may enter into one or more education 
partnership agreements with educational institutions in the United 
States in order to encourage and enhance the study of foreign languages 
that are critical to the capability of the intelligence community to 
carry out national security activities of the United States in 
educational institutions.
    ``(b) Assistance Provided Under Educational Partnership 
Agreements.--Under an educational partnership agreement entered into 
with an educational institution pursuant to this section, the head of 
an element of an intelligence community entity may provide the 
following assistance to the educational institution:
            ``(1) The loan of equipment and instructional materials of 
        the element of the intelligence community entity to the 
        educational institution for any purpose and duration that the 
        head determines to be appropriate.
            ``(2) Notwithstanding any other provision of law relating 
        to transfers of surplus property, the transfer to the 
        educational institution of any computer equipment, or other 
        equipment, that is--
                    ``(A) commonly used by educational institutions;
                    ``(B) surplus to the needs of the entity; and
                    ``(C) determined by the head of the element to be 
                appropriate for support of such agreement.
            ``(3) The provision of dedicated personnel to the 
        educational institution--
                    ``(A) to teach courses in foreign languages that 
                are critical to the capability of the intelligence 
                community to carry out national security activities of 
                the United States; or
                    ``(B) to assist in the development of such courses 
                and materials for the institution.
            ``(4) The involvement of faculty and students of the 
        educational institution in research projects of the element of 
        the intelligence community entity.
            ``(5) Cooperation with the educational institution in 
        developing a program under which students receive academic 
        credit at the educational institution for work on research 
        projects of the element of the intelligence community entity.
            ``(6) The provision of academic and career advice and 
        assistance to students of the educational institution.
            ``(7) The provision of cash awards and other items that the 
        head of the element of the intelligence community entity 
        determines to be appropriate.

                          ``voluntary services

    ``Sec. 1013. (a) Authority To Accept Services.--Notwithstanding 
section 1342 of title 31, United States Code, and subject to subsection 
(b), the Foreign Languages Program under section 1011 shall include 
authority for the head of an element of an intelligence community 
entity to accept from any individual who is dedicated personnel (as 
defined in section 1016(3)) voluntary services in support of the 
activities authorized by this subtitle.
    ``(b) Requirements and Limitations.--(1) In accepting voluntary 
services from an individual under subsection (a), the head of the 
element shall--
            ``(A) supervise the individual to the same extent as the 
        head of the element would supervise a compensated employee of 
        that element providing similar services; and
            ``(B) ensure that the individual is licensed, privileged, 
        has appropriate educational or experiential credentials, or is 
        otherwise qualified under applicable law or regulations to 
        provide such services.
    ``(2) In accepting voluntary services from an individual under 
subsection (a), the head of an element of the intelligence community 
entity may not--
            ``(A) place the individual in a policymaking position, or 
        other position performing inherently government functions; or
            ``(B) compensate the individual for the provision of such 
        services.
    ``(c) Authority To Recruit and Train Individuals Providing 
Services.--The head of an element of an intelligence community entity 
may recruit and train individuals to provide voluntary services 
accepted under subsection (a).
    ``(d) Status of Individuals Providing Services.--(1) Subject to 
paragraph (2), while providing voluntary services accepted under 
subsection (a) or receiving training under subsection (c), an 
individual shall be considered to be an employee of the Federal 
Government only for purposes of the following provisions of law:
            ``(A) Section 552a of title 5, United States Code (relating 
        to maintenance of records on individuals).
            ``(B) Chapter 11 of title 18, United States Code (relating 
        to conflicts of interest).
    ``(2)(A) With respect to voluntary services accepted under 
paragraph (1) provided by an individual that are within the scope of 
the services so accepted, the individual is deemed to be a volunteer of 
a governmental entity or nonprofit institution for purposes of the 
Volunteer Protection Act of 1997 (42 U.S.C. 14501 et seq.).
    ``(B) In the case of any claim against such an individual with 
respect to the provision of such services, section 4(d) of such Act (42 
U.S.C. 14503(d)) shall not apply.
    ``(3) Acceptance of voluntary services under this section shall 
have no bearing on the issuance or renewal of a security clearance.
    ``(e) Reimbursement of Incidental Expenses.--(1) The head of an 
element of the intelligence community entity may reimburse an 
individual for incidental expenses incurred by the individual in 
providing voluntary services accepted under subsection (a). The head of 
an element of the intelligence community entity shall determine which 
expenses are eligible for reimbursement under this subsection.
    ``(2) Reimbursement under paragraph (1) may be made from 
appropriated or nonappropriated funds.
    ``(f) Authority To Install Equipment.--(1) The head of an element 
of the intelligence community may install telephone lines and any 
necessary telecommunication equipment in the private residences of 
individuals who provide voluntary services accepted under subsection 
(a).
    ``(2) The head of an element of the intelligence community may pay 
the charges incurred for the use of equipment installed under paragraph 
(1) for authorized purposes.
    ``(3) Notwithstanding section 1348 of title 31, United States Code, 
the head of an element of the intelligence community entity may use 
appropriated funds or nonappropriated funds of the element in carrying 
out this subsection.

                             ``regulations

    ``Sec. 1014. (a) In General.--The Secretary of Defense and the 
National Intelligence Director jointly shall promulgate regulations 
necessary to carry out the Foreign Languages Program authorized under 
this subtitle.
    ``(b) Elements of the Intelligence Community.--Each head of an 
element of an intelligence community entity shall prescribe regulations 
to carry out sections 1012 and 1013 with respect to that element 
including the following:
            ``(1) Procedures to be utilized for the acceptance of 
        voluntary services under section 1013.
            ``(2) Procedures and requirements relating to the 
        installation of equipment under section 1013(g).

                             ``definitions

    ``Sec. 1015. In this subtitle:
            ``(1) The term `intelligence community entity' means an 
        agency, office, bureau, or element referred to in subparagraphs 
        (B) through (K) of section 3(4).
            ``(2) The term `educational institution' means--
                    ``(A) a local educational agency (as that term is 
                defined in section 9101(26) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7801(26))),
                    ``(B) an institution of higher education (as 
                defined in section 102 of the Higher Education Act of 
                1965 (20 U.S.C. 1002) other than institutions referred 
                to in subsection (a)(1)(C) of such section), or
                    ``(C) any other nonprofit institution that provides 
                instruction of foreign languages in languages that are 
                critical to the capability of the intelligence 
                community to carry out national security activities of 
                the United States.
            ``(3) The term `dedicated personnel' means employees of the 
        intelligence community and private citizens (including former 
        civilian employees of the Federal Government who have been 
        voluntarily separated, and members of the United States Armed 
        Forces who have been honorably discharged or generally 
        discharged under honorable circumstances, and rehired on a 
        voluntary basis specifically to perform the activities 
        authorized under this subtitle).

             ``Subtitle C--Additional Education Provisions

 ``assignment of intelligence community personnel as language students

    ``Sec. 1021. (a) In General.--(1) The National Intelligence 
Director, acting through the heads of the elements of the intelligence 
community, may provide for the assignment of military and civilian 
personnel described in paragraph (2) as students at accredited 
professional, technical, or other institutions of higher education for 
training at the graduate or undergraduate level in foreign languages 
required for the conduct of duties and responsibilities of such 
positions.
    ``(2) Personnel referred to in paragraph (1) are personnel of the 
elements of the intelligence community who serve in analysts positions 
in such elements and who require foreign language expertise required 
for the conduct of duties and responsibilities of such positions.
    ``(b) Authority for Reimbursement of Costs of Tuition and 
Training.--(1) The Director may reimburse an employee assigned under 
subsection (a) for the total cost of the training described in 
subsection (a), including costs of educational and supplementary 
reading materials.
    ``(2) The authority under paragraph (1) shall apply to employees 
who are assigned on a full-time or part-time basis.
    ``(3) Reimbursement under paragraph (1) may be made from 
appropriated or nonappropriated funds.
    ``(c) Relationship to Compensation as an Analyst.--Reimbursement 
under this section to an employee who is an analyst is in addition to 
any benefits, allowances, travels, or other compensation the employee 
is entitled to by reason of serving in such an analyst position.''.
    (b) Clerical Amendment.--The table of contents for the National 
Security Act of 1947 is amended by striking the item relating to 
section 1001 and inserting the following new items:

                  ``Subtitle A--Science and Technology

``Sec. 1001. Scholarships and work-study for pursuit of graduate 
                            degrees in science and technology.
                ``Subtitle B--Foreign Languages Program

``Sec. 1011. Program on advancement of foreign languages critical to 
                            the intelligence community.
``Sec. 1012. Education partnerships.
``Sec. 1013. Voluntary services.
``Sec. 1014. Regulations.
``Sec. 1015. Definitions.
             ``Subtitle C--Additional Education Provisions

``Sec. 1021. Assignment of intelligence community personnel as language 
                            students.''.

SEC. 1056. PILOT PROJECT FOR CIVILIAN LINGUIST RESERVE CORPS.

    (a) Pilot Project.--The National Intelligence Director shall 
conduct a pilot project to establish a Civilian Linguist Reserve Corps 
comprised of United States citizens with advanced levels of proficiency 
in foreign languages who would be available upon a call of the 
President to perform such service or duties with respect to such 
foreign languages in the Federal Government as the President may 
specify.
    (b) Conduct of Project.--Taking into account the findings and 
recommendations contained in the report required under section 325 of 
the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 
107-306; 116 Stat. 2393), in conducting the pilot project under 
subsection (a) the National Intelligence Director shall--
            (1) identify several foreign languages that are critical 
        for the national security of the United States;
            (2) identify United States citizens with advanced levels of 
        proficiency in those foreign languages who would be available 
        to perform the services and duties referred to in subsection 
        (a); and
            (3) implement a call for the performance of such services 
        and duties.
    (c) Duration of Project.--The pilot project under subsection (a) 
shall be conducted for a three-year period.
    (d) Authority To Enter Into Contracts.--The National Intelligence 
Director may enter into contracts with appropriate agencies or entities 
to carry out the pilot project under subsection (a).
    (e) Reports.--(1) The National Intelligence Director shall submit 
to Congress an initial and a final report on the pilot project 
conducted under subsection (a).
    (2) Each report required under paragraph (1) shall contain 
information on the operation of the pilot project, the success of the 
pilot project in carrying out the objectives of the establishment of a 
Civilian Linguist Reserve Corps, and recommendations for the 
continuation or expansion of the pilot project.
    (3) The final report shall be submitted not later than 6 months 
after the completion of the project.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the National Intelligence Director such sums as are 
necessary for each of fiscal years 2005, 2006, and 2007 in order to 
carry out the pilot project under subsection (a).

SEC. 1057. CODIFICATION OF ESTABLISHMENT OF THE NATIONAL VIRTUAL 
              TRANSLATION CENTER.

    (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.), as amended by section 1021(a), is further amended 
by adding at the end the following new section:

                 ``national virtual translation center

    ``Sec. 120. (a) In General.--There is an element of the 
intelligence community known as the National Virtual Translation Center 
under the direction of the National Intelligence Director.
    ``(b) Function.--The National Virtual Translation Center shall 
provide for timely and accurate translations of foreign intelligence 
for all other elements of the intelligence community.
    ``(c) Facilitating Access to Translations.--In order to minimize 
the need for a central facility for the National Virtual Translation 
Center, the Center shall--
            ``(1) use state-of-the-art communications technology;
            ``(2) integrate existing translation capabilities in the 
        intelligence community; and
            ``(3) use remote-connection capacities.
    ``(d) Use of Secure Facilities.--Personnel of the National Virtual 
Translation Center may carry out duties of the Center at any location 
that--
            ``(1) has been certified as a secure facility by an agency 
        or department of the United States; and
            ``(2) the National Intelligence Director determines to be 
        appropriate for such purpose.''.
    (b) Clerical Amendment.--The table of sections for that Act, as 
amended by section 1021(b), is further amended by inserting after the 
item relating to section 119 the following new item:

``Sec. 120. National Virtual Translation Center.''.

SEC. 1058. REPORT ON RECRUITMENT AND RETENTION OF QUALIFIED INSTRUCTORS 
              OF THE DEFENSE LANGUAGE INSTITUTE.

    (a) Study.--The Secretary of Defense shall conduct a study on 
methods to improve the recruitment and retention of qualified foreign 
language instructors at the Foreign Language Center of the Defense 
Language Institute. In conducting the study, the Secretary shall 
consider, in the case of a foreign language instructor who is an alien, 
to expeditiously adjust the status of the alien from a temporary status 
to that of an alien lawfully admitted for permanent residence.
    (b) Report.--(1) Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
appropriate congressional committees a report on the study conducted 
under subsection (a), and shall include in that report recommendations 
for such changes in legislation and regulation as the Secretary 
determines to be appropriate.
    (2) Definition.--In this subsection, the term ``appropriate 
congressional committees'' means the following:
            (A) The Select Committee on Intelligence and the Committee 
        on Armed Services of the Senate.
            (B) The Permanent Select Committee on Intelligence and the 
        Committee on Armed Services of the House of Representatives.

     Subtitle F--Additional Improvements of Intelligence Activities

SEC. 1061. PERMANENT EXTENSION OF CENTRAL INTELLIGENCE AGENCY VOLUNTARY 
              SEPARATION INCENTIVE PROGRAM.

    (a) Extension of Program.--Section 2 of the Central Intelligence 
Agency Voluntary Separation Pay Act (50 U.S.C. 403-4 note) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsections (g) and (h) as subsections 
        (f) and (g), respectively.
    (b) Termination of Funds Remittance Requirement.--(1) Section 2 of 
such Act (50 U.S.C. 403-4 note) is further amended by striking 
subsection (i).
    (2) Section 4(a)(2)(B)(ii) of the Federal Workforce Restructuring 
Act of 1994 (5 U.S.C. 8331 note) is amended by striking ``, or section 
2 of the Central Intelligence Agency Voluntary Separation Pay Act 
(Public Law 103-36; 107 Stat. 104)''.

SEC. 1062. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES PANEL.

    The National Security Agency Act of 1959 (50 U.S.C. 402 note) is 
amended by adding at the end the following new section:
    ``Sec. 19. (a) There is established the National Security Agency 
Emerging Technologies Panel. The panel is a standing panel of the 
National Security Agency. The panel shall be appointed by, and shall 
report directly to, the Director.
    ``(b) The National Security Agency Emerging Technologies Panel 
shall study and assess, and periodically advise the Director on, the 
research, development, and application of existing and emerging science 
and technology advances, advances on encryption, and other topics.
    ``(c) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply with respect to the National Security Agency Emerging 
Technologies Panel.''.

              Subtitle G--Conforming and Other Amendments

SEC. 1071. CONFORMING AMENDMENTS RELATING TO ROLES OF NATIONAL 
              INTELLIGENCE DIRECTOR AND DIRECTOR OF THE CENTRAL 
              INTELLIGENCE AGENCY.

    (a) National Security Act of 1947.--(1) The National Security Act 
of 1947 (50 U.S.C. 401 et seq.) is amended by striking ``Director of 
Central Intelligence'' each place it appears in the following 
provisions and inserting ``National Intelligence Director'':
            (A) Section 3(5)(B) (50 U.S.C. 401a(5)(B)).
            (B) Section 101(h)(2)(A) (50 U.S.C. 402(h)(2)(A)).
            (C) Section 101(h)(5) (50 U.S.C. 402(h)(5)).
            (D) Section 101(i)(2)(A) (50 U.S.C. 402(i)(2)(A)).
            (E) Section 101(j) (50 U.S.C. 402(j)).
            (F) Section 105(a) (50 U.S.C. 403-5(a)).
            (G) Section 105(b)(6)(A) (50 U.S.C. 403-5(b)(6)(A)).
            (H) Section 105B(a)(1) (50 U.S.C. 403-5b(a)(1)).
            (I) Section 105B(b) (50 U.S.C. 403-5b(b)), the first place 
        it appears.
            (J) Section 110(b) (50 U.S.C. 404e(b)).
            (K) Section 110(c) (50 U.S.C. 404e(c)).
            (L) Section 112(a)(1) (50 U.S.C. 404g(a)(1)).
            (M) Section 112(d)(1) (50 U.S.C. 404g(d)(1)).
            (N) Section 113(b)(2)(A) (50 U.S.C. 404h(b)(2)(A)).
            (O) Section 114(a)(1) (50 U.S.C. 404i(a)(1)).
            (P) Section 114(b)(1) (50 U.S.C. 404i(b)(1)).
            (Q) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
            (R) Section 115(b) (50 U.S.C. 404j(b)).
            (S) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).
            (T) Section 116(a) (50 U.S.C. 404k(a)).
            (U) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
            (V) Section 303(a) (50 U.S.C. 405(a)), both places it 
        appears.
            (W) Section 501(d) (50 U.S.C. 413(d)).
            (X) Section 502(a) (50 U.S.C. 413a(a)).
            (Y) Section 502(c) (50 U.S.C. 413a(c)).
            (Z) Section 503(b) (50 U.S.C. 413b(b)).
            (AA) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
            (BB) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
            (CC) Section 506A(a)(1) (50 U.S.C. 415a-1(a)(1)).
            (DD) Section 603(a) (50 U.S.C. 423(a)).
            (EE) Section 702(a)(1) (50 U.S.C. 432(a)(1)).
            (FF) Section 702(a)(6)(B)(viii) (50 U.S.C. 
        432(a)(6)(B)(viii)).
            (GG) Section 702(b)(1) (50 U.S.C. 432(b)(1)), both places 
        it appears.
            (HH) Section 703(a)(1) (50 U.S.C. 432a(a)(1)).
            (II) Section 703(a)(6)(B)(viii) (50 U.S.C. 
        432a(a)(6)(B)(viii)).
            (JJ) Section 703(b)(1) (50 U.S.C. 432a(b)(1)), both places 
        it appears.
            (KK) Section 704(a)(1) (50 U.S.C. 432b(a)(1)).
            (LL) Section 704(f)(2)(H) (50 U.S.C. 432b(f)(2)(H)).
            (MM) Section 704(g)(1)) (50 U.S.C. 432b(g)(1)), both places 
        it appears.
            (NN) Section 1001(a) (50 U.S.C. 441g(a)).
            (OO) Section 1102(a)(1) (50 U.S.C. 442a(a)(1)).
            (PP) Section 1102(b)(1) (50 U.S.C. 442a(b)(1)).
            (QQ) Section 1102(c)(1) (50 U.S.C. 442a(c)(1)).
            (RR) Section 1102(d) (50 U.S.C. 442a(d)).
    (2) That Act is further amended by striking ``of Central 
Intelligence'' each place it appears in the following provisions:
            (A) Section 105(a)(2) (50 U.S.C. 403-5(a)(2)).
            (B) Section 105B(a)(2) (50 U.S.C. 403-5b(a)(2)).
            (C) Section 105B(b) (50 U.S.C. 403-5b(b)), the second place 
        it appears.
    (3) That Act is further amended by striking ``Director'' each place 
it appears in the following provisions and inserting ``National 
Intelligence Director'':
            (A) Section 114(c) (50 U.S.C. 404i(c)).
            (B) Section 116(b) (50 U.S.C. 404k(b)).
            (C) Section 1001(b) (50 U.S.C. 441g(b)).
            (D) Section 1001(c) (50 U.S.C. 441g(c)), the first place it 
        appears.
            (E) Section 1001(d)(1)(B) (50 U.S.C. 441g(d)(1)(B)).
            (F) Section 1001(e) (50 U.S.C. 441g(e)), the first place it 
        appears.
    (4) Section 114A of that Act (50 U.S.C. 404i-1) is amended by 
striking ``Director of Central Intelligence'' and inserting ``National 
Intelligence Director, the Director of the Central Intelligence 
Agency''.
    (5) Section 504(a)(2) of that Act (50 U.S.C. 414(a)(2)) is amended 
by striking ``Director of Central Intelligence'' and inserting 
``Director of the Central Intelligence Agency''.
    (6) Section 701 of that Act (50 U.S.C. 431) is amended--
            (A) in subsection (a), by striking ``Operational files of 
        the Central Intelligence Agency may be exempted by the Director 
        of Central Intelligence'' and inserting ``The Director of the 
        Central Intelligence Agency, with the coordination of the 
        National Intelligence Director, may exempt operational files of 
        the Central Intelligence Agency''; and
            (B) in subsection (g)(1), by striking ``Director of Central 
        Intelligence'' and inserting ``Director of the Central 
        Intelligence Agency and the National Intelligence Director''.
    (7) The heading for section 114 of that Act (50 U.S.C. 404i) is 
amended to read as follows:

 ``additional annual reports from the national intelligence director''.

    (b) Central Intelligence Agency Act of 1949.--(1) The Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) is amended by 
striking ``Director of Central Intelligence'' each place it appears in 
the following provisions and inserting ``National Intelligence 
Director'':
            (A) Section 6 (50 U.S.C. 403g).
            (B) Section 17(f) (50 U.S.C. 403q(f)), both places it 
        appears.
    (2) That Act is further amended by striking ``of Central 
Intelligence'' in each of the following provisions:
            (A) Section 2 (50 U.S.C. 403b).
            (B) Section 16(c)(1)(B) (50 U.S.C. 403p(c)(1)(B)).
            (C) Section 17(d)(1) (50 U.S.C. 403q(d)(1)).
            (D) Section 20(c) (50 U.S.C. 403t(c)).
    (3) That Act is further amended by striking ``Director of Central 
Intelligence'' each place it appears in the following provisions and 
inserting ``Director of the Central Intelligence Agency'':
            (A) Section 14(b) (50 U.S.C. 403n(b)).
            (B) Section 16(b)(2) (50 U.S.C. 403p(b)(2)).
            (C) Section 16(b)(3) (50 U.S.C. 403p(b)(3)), both places it 
        appears.
            (D) Section 21(g)(1) (50 U.S.C. 403u(g)(1)).
            (E) Section 21(g)(2) (50 U.S.C. 403u(g)(2)).
    (c) Central Intelligence Agency Retirement Act.--Section 101 of the 
Central Intelligence Agency Retirement Act (50 U.S.C. 2001) is amended 
by striking paragraph (2) and inserting the following new paragraph 
(2):
            ``(2) Director.--The term `Director' means the Director of 
        the Central Intelligence Agency.''.
    (d) CIA Voluntary Separation Pay Act.--Subsection (a)(1) of section 
2 of the Central Intelligence Agency Voluntary Separation Pay Act (50 
U.S.C. 2001 note) is amended to read as follows:
            ``(1) the term `Director' means the Director of the Central 
        Intelligence Agency;''.
    (e) Foreign Intelligence Surveillance Act of 1978.--(1) The Foreign 
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) is 
amended by striking ``Director of Central Intelligence'' each place it 
appears and inserting ``National Intelligence Director''.
    (f) Classified Information Procedures Act.--Section 9(a) of the 
Classified Information Procedures Act (5 U.S.C. App.) is amended by 
striking ``Director of Central Intelligence'' and inserting ``National 
Intelligence Director''.
    (g) Intelligence Authorization Acts.--
            (1) Public law 103-359.--Section 811(c)(6)(C) of the 
        counterintelligence and Security Enhancements Act of 1994 
        (title VIII of Public Law 103-359) is amended by striking 
        ``Director of Central Intelligence'' and inserting ``National 
        Intelligence Director''.
            (2) Public law 107-306.--(A) The Intelligence Authorization 
        Act for Fiscal Year 2003 (Public Law 107-306) is amended by 
        striking ``Director of Central Intelligence, acting as the head 
        of the intelligence community,'' each place it appears in the 
        following provisions and inserting ``National Intelligence 
        Director'':
                    (i) Section 313(a) (50 U.S.C. 404n(a)).
                    (ii) Section 343(a)(1) (50 U.S.C. 404n-2(a)(1))
            (B) That Act is further amended by striking ``Director of 
        Central Intelligence'' each place it appears in the following 
        provisions and inserting ``National Intelligence Director'':
                    (i) Section 902(a)(2) (50 U.S.C. 402b(a)(2)).
                    (ii) Section 904(e)(4) (50 U.S.C. 402c(e)(4)).
                    (iii) Section 904(e)(5) (50 U.S.C. 402c(e)(5)).
                    (iv) Section 904(h) (50 U.S.C. 402c(h)), each place 
                it appears.
                    (v) Section 904(m) (50 U.S.C. 402c(m)).
            (C) Section 341 of that Act (50 U.S.C. 404n-1) is amended 
        by striking ``Director of Central Intelligence, acting as the 
        head of the intelligence community, shall establish in the 
        Central Intelligence Agency'' and inserting ``National 
        Intelligence Director shall establish within the Central 
        Intelligence Agency''.
            (D) Section 352(b) of that Act (50 U.S.C. 404-3 note) is 
        amended by striking ``Director'' and inserting ``National 
        Intelligence Director''.
            (3) Public law 108-177.--(A) The Intelligence Authorization 
        Act for Fiscal Year 2004 (Public Law 108-177) is amended by 
        striking ``Director of Central Intelligence'' each place it 
        appears in the following provisions and inserting ``National 
        Intelligence Director'':
                    (i) Section 317(a) (50 U.S.C. 403-3 note).
                    (ii) Section 317(h)(1).
                    (iii) Section 318(a) (50 U.S.C. 441g note).
                    (iv) Section 319(b) (50 U.S.C. 403 note).
                    (v) Section 341(b) (28 U.S.C. 519 note).
                    (vi) Section 357(a) (50 U.S.C. 403 note).
                    (vii) Section 504(a) (117 Stat. 2634), both places 
                it appears.
            (B) Section 319(f)(2) of that Act (50 U.S.C. 403 note) is 
        amended by striking ``Director'' the first place it appears and 
        inserting ``National Intelligence Director''.
            (C) Section 404 of that Act (18 U.S.C. 4124 note) is 
        amended by striking ``Director of Central Intelligence'' and 
        inserting ``Director of the Central Intelligence Agency''.

SEC. 1072. OTHER CONFORMING AMENDMENTS

    (a) National Security Act of 1947.--(1) Section 101(j) of the 
National Security Act of 1947 (50 U.S.C. 402(j)) is amended by striking 
``Deputy Director of Central Intelligence'' and inserting ``Deputy 
National Intelligence Director''.
    (2) Section 112(d)(1) of that Act (50 U.S.C. 404g(d)(1)) is amended 
by striking ``section 103(c)(6) of this Act'' and inserting ``section 
102A(g) of this Act''.
    (3) Section 116(b) of that Act (50 U.S.C. 404k(b)) is amended by 
striking ``to the Deputy Director of Central Intelligence, or with 
respect to employees of the Central Intelligence Agency, the Director 
may delegate such authority to the Deputy Director for Operations'' and 
inserting ``to the Deputy National Intelligence Director, or with 
respect to employees of the Central Intelligence Agency, to the 
Director of the Central Intelligence Agency''.
    (4) Section 506A(b)(1) of that Act (50 U.S.C. 415a-1(b)(1)) is 
amended by striking ``Office of the Deputy Director of Central 
Intelligence'' and inserting ``Office of the National Intelligence 
Director''.
    (5) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is amended 
by striking ``Office of the Director of Central Intelligence'' and 
inserting ``Office of the National Intelligence Director''.
    (6) Section 1001(b) of that Act (50 U.S.C. 441g(b)) is amended by 
striking ``Assistant Director of Central Intelligence for 
Administration'' and inserting ``Office of the National Intelligence 
Director''.
    (b) Central Intelligence Act of 1949.--Section 6 of the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403g) is amended by striking 
``section 103(c)(7) of the National Security Act of 1947 (50 U.S.C. 
403-3(c)(7))'' and inserting ``section 102A(g) of the National Security 
Act of 1947''.
    (c) Central Intelligence Agency Retirement Act.--Section 201(c) of 
the Central Intelligence Agency Retirement Act (50 U.S.C. 2011(c)) is 
amended by striking ``paragraph (6) of section 103(c) of the National 
Security Act of 1947 (50 U.S.C. 403-3(c)) that the Director of Central 
Intelligence'' and inserting ``section 102A(g) of the National Security 
Act of 1947 (50 U.S.C. 403-3(c)(1)) that the National Intelligence 
Director''.
    (d) Intelligence Authorization Acts.--
            (1) Public law 107-306.--(A) Section 343(c) of the 
        Intelligence Authorization Act for Fiscal Year 2003 (Public Law 
        107-306; 50 U.S.C. 404n-2(c)) is amended by striking ``section 
        103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-
        3((c)(6))'' and inserting ``section 102A(g) of the National 
        Security Act of 1947 (50 U.S.C. 403-3(c)(1))''.
            (B) Section 904 of that Act (50 U.S.C. 402c) is amended--
                    (i) in subsection (c), by striking ``Office of the 
                Director of Central Intelligence'' and inserting 
                ``Office of the National Intelligence Director''; and
                    (ii) in subsection (l), by striking ``Office of the 
                Director of Central Intelligence'' and inserting 
                ``Office of the National Intelligence Director''.
            (2) Public law 108-177.--Section 317 of the Intelligence 
        Authorization Act for Fiscal Year 2004 (Public Law 108-177; 50 
        U.S.C. 403-3 note) is amended--
                    (A) in subsection (g), by striking ``Assistant 
                Director of Central Intelligence for Analysis and 
                Production'' and inserting ``Deputy National 
                Intelligence Director''; and
                    (B) in subsection (h)(2)(C), by striking 
                ``Assistant Director'' and inserting ``Deputy National 
                Intelligence Director''.

SEC. 1073. ELEMENTS OF INTELLIGENCE COMMUNITY UNDER NATIONAL SECURITY 
              ACT OF 1947.

    Paragraph (4) of section 3 of the National Security Act of 1947 (50 
U.S.C. 401a) is amended to read as follows:
            ``(4) The term `intelligence community' includes the 
        following:
                    ``(A) The Office of the National Intelligence 
                Director.
                    ``(B) The Central Intelligence Agency.
                    ``(C) The National Security Agency.
                    ``(D) The Defense Intelligence Agency.
                    ``(E) The National Geospatial-Intelligence Agency.
                    ``(F) The National Reconnaissance Office.
                    ``(G) Other offices within the Department of 
                Defense for the collection of specialized national 
                intelligence through reconnaissance programs.
                    ``(H) The intelligence elements of the Army, the 
                Navy, the Air Force, the Marine Corps, the Federal 
                Bureau of Investigation, and the Department of Energy.
                    ``(I) The Bureau of Intelligence and Research of 
                the Department of State.
                    ``(J) The Office of Intelligence and Analysis of 
                the Department of the Treasury.
                    ``(K) The elements of the Department of Homeland 
                Security concerned with the analysis of intelligence 
                information, including the Office of Intelligence of 
                the Coast Guard.
                    ``(L) Such other elements of any other department 
                or agency as may be designated by the President, or 
                designated jointly by the National Intelligence 
                Director and the head of the department or agency 
                concerned, as an element of the intelligence 
                community.''.

SEC. 1074. REDESIGNATION OF NATIONAL FOREIGN INTELLIGENCE PROGRAM AS 
              NATIONAL INTELLIGENCE PROGRAM.

    (a) Redesignation.--Paragraph (6) of section 3 of the National 
Security Act of 1947 (50 U.S.C. 401a) is amended by striking 
``Foreign''.
    (b) Conforming Amendments.--(1) Section 506(a) of the National 
Security Act of 1947 (50 U.S.C. 415a(a)) is amended by striking 
``National Foreign Intelligence Program'' and inserting ``National 
Intelligence Program''.
    (2) Section 17(f) of the Central Intelligence Agency Act of 1949 
(50 U.S.C. 403q(f)) is amended by striking ``National Foreign 
Intelligence Program'' and inserting ``National Intelligence Program''.
    (c) Heading Amendment.--The heading of section 506 of that Act is 
amended by striking ``foreign''.

SEC. 1075. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) Appointment of Certain Intelligence Officials.--Section 106 of 
the National Security Act of 1947 (50 U.S.C. 403-6) is repealed.
    (b) Collection Tasking Authority.--Section 111 of the National 
Security Act of 1947 (50 U.S.C. 404f) is repealed.

SEC. 1076. CLERICAL AMENDMENTS TO NATIONAL SECURITY ACT OF 1947.

    The table of contents for the National Security Act of 1947 is 
amended--
            (1) by striking the items relating to sections 102 through 
        104 and inserting the following new items:

``Sec. 102. National Intelligence Director.
``Sec. 102A. Responsibilities and authorities of National Intelligence 
                            Director.
``Sec. 103. Office of the National Intelligence Director.
``Sec. 104. Central Intelligence Agency.
``Sec. 104A. Director of the Central Intelligence Agency.''; and
            (2) by striking the item relating to section 114 and 
        inserting the following new item:

``Sec. 114. Additional annual reports from the National Intelligence 
                            Director.'';
            and
            (3) by striking the item relating to section 506 and 
        inserting the following new item:

``Sec. 506. Specificity of National Intelligence Program budget amounts 
                            for counterterrorism, counterproliferation, 
                            counternarcotics, and 
                            counterintelligence''.

SEC. 1077. CONFORMING AMENDMENTS RELATING TO PROHIBITING DUAL SERVICE 
              OF THE DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY.

    Section 1 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
403a) is amended--
            (1) by redesignating paragraphs (a), (b), and (c) as 
        paragraphs (1), (2), and (3), respectively; and
            (2) by striking paragraph (2), as so redesignated, and 
        inserting the following new paragraph (2):
    ``(2) `Director' means the Director of the Central Intelligence 
Agency; and''.

SEC. 1078. ACCESS TO INSPECTOR GENERAL PROTECTIONS.

    Section 17(a)(1) of the Central Intelligence Agency Act of 1949 (50 
U.S.C. 403q(a)(1)) is amended by inserting before the semicolon at the 
end the following: ``and to programs and operations of the Office of 
the National Intelligence Director''.

SEC. 1079. GENERAL REFERENCES.

    (a) Director of Central Intelligence as Head of Intelligence 
Community.--Any reference to the Director of Central Intelligence or 
the Director of the Central Intelligence Agency in the Director's 
capacity as the head of the intelligence community in any law, 
regulation, document, paper, or other record of the United States shall 
be deemed to be a reference to the National Intelligence Director.
    (b) Director of Central Intelligence as Head of CIA.--Any reference 
to the Director of Central Intelligence or the Director of the Central 
Intelligence Agency in the Director's capacity as the head of the 
Central Intelligence Agency in any law, regulation, document, paper, or 
other record of the United States shall be deemed to be a reference to 
the Director of the Central Intelligence Agency.
    (c) Community Management Staff.--Any reference to the Community 
Management Staff in any law, regulation, document, paper, or other 
record of the United States shall be deemed to be a reference to the 
staff of the Office of the National Intelligence Director.

SEC. 1080. APPLICATION OF OTHER LAWS.

    (a) Political Service of Personnel.--Section 7323(b)(2)(B)(i) of 
title 5, United States Code, is amended--
            (1) in subclause (XII), by striking ``or'' at the end; and
            (2) by inserting after subclause (XIII) the following new 
        subclause:
                    ``(XIV) the Office of the National Intelligence 
                Director; or''.
    (b) Deletion of Information About Foreign Gifts.--Section 
7342(f)(4) of title 5, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(4)'';
            (2) in subparagraph (A), as so designated, by striking 
        ``the Director of Central Intelligence'' and inserting ``the 
        Director of the Central Intelligence Agency''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) In transmitting such listings for the Office of the National 
Intelligence Director, the National Intelligence Director may delete 
the information described in subparagraphs (A) and (C) of paragraphs 
(2) and (3) if the Director certifies in writing to the Secretary of 
State that the publication of such information could adversely affect 
United States intelligence sources.''.
    (c) Exemption From Financial Disclosures.--Section 105(a)(1) of the 
Ethics in Government Act (5 U.S.C. App.) is amended by inserting ``the 
Office of the National Intelligence Director,'' before ``the Central 
Intelligence Agency''.

   Subtitle H--Transfer, Termination, Transition and Other Provisions

SEC. 1091. TRANSFER OF COMMUNITY MANAGEMENT STAFF.

    (a) Transfer.--There shall be transferred to the Office of the 
National Intelligence Director the staff of the Community Management 
Staff as of the date of the enactment of this Act, including all 
functions and activities discharged by the Community Management Staff 
as of that date.
    (b) Administration.--The National Intelligence Director shall 
administer the Community Management Staff after the date of the 
enactment of this Act as a component of the Office of the National 
Intelligence Director under section 103(b) of the National Security Act 
of 1947, as amended by section 1011(a).

SEC. 1092. TRANSFER OF TERRORIST THREAT INTEGRATION CENTER.

    (a) Transfer.--There shall be transferred to the National 
counterterrorism Center the Terrorist Threat Integration Center (TTIC), 
including all functions and activities discharged by the Terrorist 
Threat Integration Center as of the date of the enactment of this Act.
    (b) Administration.--The Director of the National counterterrorism 
Center shall administer the Terrorist Threat Integration Center after 
the date of the enactment of this Act as a component of the Directorate 
of Intelligence of the National counterterrorism Center under section 
119(i) of the National Security Act of 1947, as added by section 
1021(a).

SEC. 1093. TERMINATION OF POSITIONS OF ASSISTANT DIRECTORS OF CENTRAL 
              INTELLIGENCE.

    (a) Termination.--The positions within the Central Intelligence 
Agency referred to in subsection (b) are hereby abolished.
    (b) Covered Positions.--The positions within the Central 
Intelligence Agency referred to in this subsection are as follows:
            (1) The Assistant Director of Central Intelligence for 
        Collection.
            (2) The Assistant Director of Central Intelligence for 
        Analysis and Production.
            (3) The Assistant Director of Central Intelligence for 
        Administration.

SEC. 1094. IMPLEMENTATION PLAN.

    (a) Submission of Plan.--The President shall transmit to Congress a 
plan for the implementation of this title and the amendments made by 
this title. The plan shall address, at a minimum, the following:
            (1) The transfer of personnel, assets, and obligations to 
        the National Intelligence Director pursuant to this title.
            (2) Any consolidation, reorganization, or streamlining of 
        activities transferred to the National Intelligence Director 
        pursuant to this title.
            (3) The establishment of offices within the Office of the 
        National Intelligence Director to implement the duties and 
        responsibilities of the National Intelligence Director as 
        described in this title.
            (4) Specification of any proposed disposition of property, 
        facilities, contracts, records, and other assets and 
        obligations to be transferred to the National Intelligence 
        Director.
            (5) Recommendations for additional legislative or 
        administrative action as the Director considers appropriate.
    (b) Sense of Congress.--It is the sense of Congress that the 
permanent location for the headquarters for the Office of the National 
Intelligence Director, should be at a location other than the George 
Bush Center for Intelligence in Langley, Virginia.

SEC. 1095. TRANSITIONAL AUTHORITIES.

    Upon the request of the National Intelligence Director, the head of 
any executive agency may, on a reimbursable basis, provide services or 
detail personnel to the National Intelligence Director.

SEC. 1096. EFFECTIVE DATES.

    (a) In General.--Except as otherwise expressly provided in this 
Act, this title and the amendments made by this title shall take effect 
on the date of the enactment of this Act.
    (b) Specific Effective Dates.--(1)(A) Not later than 60 days after 
the date of the enactment of this Act, the National Intelligence 
Director shall first appoint individuals to positions within the Office 
of the National Intelligence Director.
    (B) Subparagraph (A) shall not apply with respect to the Deputy 
National Intelligence Director.
    (2) Not later than 180 days after the date of the enactment of this 
Act, the President shall transmit to Congress the implementation plan 
required under section 1904.
    (3) Not later than one year after the date of the enactment of this 
Act, the National Intelligence Director shall prescribe regulations, 
policies, procedures, standards, and guidelines required under section 
102A of the National Security Act of 1947, as amended by section 
1011(a).

             TITLE II--TERRORISM PREVENTION AND PROSECUTION

     Subtitle A--Individual Terrorists as Agents of Foreign Powers

SECTION 2001. INDIVIDUAL TERRORISTS AS AGENTS OF FOREIGN POWERS.

    Section 101(b)(1) of the Foreign Intelligence Surveillance Act of 
1978 (50 U.S.C. 1801(b)(1)) is amended by adding at the end the 
following new subparagraph:
                    ``(C) engages in international terrorism or 
                activities in preparation therefor; or''.

       Subtitle B--Stop Terrorist and Military Hoaxes Act of 2004

SEC. 2021. SHORT TITLE.

    This subtitle may be cited as the ``Stop Terrorist and Military 
Hoaxes Act of 2004''.

SEC. 2022. HOAXES AND RECOVERY COSTS.

    (a) Prohibition on Hoaxes.--Chapter 47 of title 18, United States 
Code, is amended by inserting after section 1037 the following:
``Sec. 1038. False information and hoaxes
    ``(a) Criminal Violation.--
            ``(1) In general.--Whoever engages in any conduct with 
        intent to convey false or misleading information under 
        circumstances where such information may reasonably be believed 
        and where such information indicates that an activity has 
        taken, is taking, or will take place that would constitute a 
        violation of chapter 2, 10, 11B, 39, 40, 44, 111, or 113B of 
        this title, section 236 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2284), or section 46502, the second sentence of section 
        46504, section 46505 (b)(3) or (c), section 46506 if homicide 
        or attempted homicide is involved, or section 60123(b) of title 
        49 shall--
                    ``(A) be fined under this title or imprisoned not 
                more than 5 years, or both;
                    ``(B) if serious bodily injury results, be fined 
                under this title or imprisoned not more than 25 years, 
                or both; and
                    ``(C) if death results, be fined under this title 
                or imprisoned for any number of years up to life, or 
                both.
            ``(2) Armed forces.--Whoever, without lawful authority, 
        makes a false statement, with intent to convey false or 
        misleading information, about the death, injury, capture, or 
        disappearance of a member of the Armed Forces of the United 
        States during a war or armed conflict in which the United 
        States is engaged, shall--
                    ``(A) be fined under this title or imprisoned not 
                more than 5 years, or both;
                    ``(B) if serious bodily injury results, be fined 
                under this title or imprisoned not more than 25 years, 
                or both; and
                    ``(C) if death results, be fined under this title 
                or imprisoned for any number of years up to life, or 
                both.
    ``(b) Civil Action.--Whoever knowingly engages in any conduct with 
intent to convey false or misleading information under circumstances 
where such information may reasonably be believed and where such 
information indicates that an activity has taken, is taking, or will 
take place that would constitute a violation of chapter 2, 10, 11B, 39, 
40, 44, 111, or 113B of this title, section 236 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2284), or section 46502, the second sentence of 
section 46504, section 46505 (b)(3) or (c), section 46506 if homicide 
or attempted homicide is involved, or section 60123(b) of title 49 is 
liable in a civil action to any party incurring expenses incident to 
any emergency or investigative response to that conduct, for those 
expenses.
    ``(c) Reimbursement.--
            ``(1) In general.--The court, in imposing a sentence on a 
        defendant who has been convicted of an offense under subsection 
        (a), shall order the defendant to reimburse any state or local 
        government, or private not-for-profit organization that 
        provides fire or rescue service incurring expenses incident to 
        any emergency or investigative response to that conduct, for 
        those expenses.
            ``(2) Liability.--A person ordered to make reimbursement 
        under this subsection shall be jointly and severally liable for 
        such expenses with each other person, if any, who is ordered to 
        make reimbursement under this subsection for the same expenses.
            ``(3) Civil judgment.--An order of reimbursement under this 
        subsection shall, for the purposes of enforcement, be treated 
        as a civil judgment.
    ``(d) Activities of Law Enforcement.--This section does not 
prohibit any lawfully authorized investigative, protective, or 
intelligence activity of a law enforcement agency of the United States, 
a State, or political subdivision of a State, or of an intelligence 
agency of the United States.''.
    (b) Clerical Amendment.--The table of sections as the beginning of 
chapter 47 of title 18, United States Code, is amended by adding after 
the item for section 1037 the following:

``1038. False information and hoaxes.''.

SEC. 2023. OBSTRUCTION OF JUSTICE AND FALSE STATEMENTS IN TERRORISM 
              CASES.

    (a) Enhanced Penalty.--Section 1001(a) and the third undesignated 
paragraph of section 1505 of title 18, United States Code, are amended 
by striking ``be fined under this title or imprisoned not more than 5 
years, or both'' and inserting ``be fined under this title, imprisoned 
not more than 5 years or, if the matter relates to international or 
domestic terrorism (as defined in section 2331), imprisoned not more 
than 10 years, or both''.
    (b) Sentencing Guidelines.--Not later than 30 days of the enactment 
of this section, the United States Sentencing Commission shall amend 
the Sentencing Guidelines to provide for an increased offense level for 
an offense under sections 1001(a) and 1505 of title 18, United States 
Code, if the offense involves a matter relating to international or 
domestic terrorism, as defined in section 2331 of such title.

SEC. 2024. CLARIFICATION OF DEFINITION.

    Section 1958 of title 18, United States Code, is amended--
            (1) in subsection (a), by striking ``facility in'' and 
        inserting ``facility of''; and
            (2) in subsection (b)(2), by inserting ``or foreign'' after 
        ``interstate''.

 Subtitle C--Material Support to Terrorism Prohibition Enhancement Act 
                                of 2004

SEC. 2041. SHORT TITLE.

    This subtitle may be cited as the ``Material Support to Terrorism 
Prohibition Enhancement Act of 2004''.

SEC. 2042. RECEIVING MILITARY-TYPE TRAINING FROM A FOREIGN TERRORIST 
              ORGANIZATION.

    Chapter 113B of title 18, United States Code, is amended by adding 
after section 2339C the following new section:
``Sec. 2339D. Receiving military-type training from a foreign terrorist 
              organization
    ``(a) Offense.--Whoever knowingly receives military-type training 
from or on behalf of any organization designated at the time of the 
training by the Secretary of State under section 219(a)(1) of the 
Immigration and Nationality Act as a foreign terrorist organization 
shall be fined under this title or imprisoned for ten years, or both. 
To violate this subsection, a person must have knowledge that the 
organization is a designated terrorist organization (as defined in 
subsection (c)(4)), that the organization has engaged or engages in 
terrorist activity (as defined in section 212 of the Immigration and 
Nationality Act), or that the organization has engaged or engages in 
terrorism (as defined in section 140(d)(2) of the Foreign Relations 
Authorization Act, Fiscal Years 1988 and 1989).
    ``(b) Extraterritorial Jurisdiction.--There is extraterritorial 
Federal jurisdiction over an offense under this section. There is 
jurisdiction over an offense under subsection (a) if--
            ``(1) an offender is a national of the United States (as 
        defined in 101(a)(22) of the Immigration and Nationality Act) 
        or an alien lawfully admitted for permanent residence in the 
        United States (as defined in section 101(a)(20) of the 
        Immigration and Nationality Act);
            ``(2) an offender is a stateless person whose habitual 
        residence is in the United States;
            ``(3) after the conduct required for the offense occurs an 
        offender is brought into or found in the United States, even if 
        the conduct required for the offense occurs outside the United 
        States;
            ``(4) the offense occurs in whole or in part within the 
        United States;
            ``(5) the offense occurs in or affects interstate or 
        foreign commerce;
            ``(6) an offender aids or abets any person over whom 
        jurisdiction exists under this paragraph in committing an 
        offense under subsection (a) or conspires with any person over 
        whom jurisdiction exists under this paragraph to commit an 
        offense under subsection (a).
    ``(c) Definitions.--As used in this section--
            ``(1) the term `military-type training' includes training 
        in means or methods that can cause death or serious bodily 
        injury, destroy or damage property, or disrupt services to 
        critical infrastructure, or training on the use, storage, 
        production, or assembly of any explosive, firearm or other 
        weapon, including any weapon of mass destruction (as defined in 
        section 2232a(c)(2));
            ``(2) the term `serious bodily injury' has the meaning 
        given that term in section 1365(h)(3);
            ``(3) the term `critical infrastructure' means systems and 
        assets vital to national defense, national security, economic 
        security, public health or safety including both regional and 
        national infrastructure. Critical infrastructure may be 
        publicly or privately owned; examples of critical 
        infrastructure include gas and oil production, storage, or 
        delivery systems, water supply systems, telecommunications 
        networks, electrical power generation or delivery systems, 
        financing and banking systems, emergency services (including 
        medical, police, fire, and rescue services), and transportation 
        systems and services (including highways, mass transit, 
        airlines, and airports); and
            ``(4) the term `foreign terrorist organization' means an 
        organization designated as a terrorist organization under 
        section 219(a)(1) of the Immigration and Nationality Act.''.

SEC. 2043. PROVIDING MATERIAL SUPPORT TO TERRORISM.

    (a) Additions to Offense of Providing Material Support to 
Terrorists.--Section 2339A(a) of title 18, United States Code, is 
amended--
            (1) by designating the first sentence as paragraph (1);
            (2) by designating the second sentence as paragraph (3);
            (3) by inserting after paragraph (1) as so designated by 
        this subsection the following:
            ``(2) (A) Whoever in a circumstance described in 
        subparagraph (B) provides material support or resources or 
        conceals or disguises the nature, location, source, or 
        ownership of material support or resources, knowing or 
        intending that they are to be used in preparation for, or in 
        carrying out, an act of international or domestic terrorism (as 
        defined in section 2331), or in preparation for, or in carrying 
        out, the concealment or escape from the commission of any such 
        act, or attempts or conspires to do so, shall be punished as 
        provided under paragraph (1) for an offense under that 
        paragraph.
            ``(B) The circumstances referred to in subparagraph (A) are 
        any of the following:
                    ``(i) The offense occurs in or affects interstate 
                or foreign commerce.
                    ``(ii) The act of terrorism is an act of 
                international or domestic terrorism that violates the 
                criminal law of the United States.
                    ``(iii) The act of terrorism is an act of domestic 
                terrorism that appears to be intended to influence the 
                policy, or affect the conduct, of the Government of the 
                United States or a foreign government.
                    ``(iv) An offender, acting within the United States 
                or outside the territorial jurisdiction of the United 
                States, is a national of the United States (as defined 
                in section 101(a)(22) of the Immigration and 
                Nationality Act), an alien lawfully admitted for 
                permanent residence in the United States (as defined in 
                section 101(a)(20) of the Immigration and Nationality 
                Act), or a stateless person whose habitual residence is 
                in the United States, and the act of terrorism is an 
                act of international terrorism that appears to be 
                intended to influence the policy, or affect the 
                conduct, of the Government of the United States or a 
                foreign government.
                    ``(v) An offender, acting within the United States, 
                is an alien, and the act of terrorism is an act of 
                international terrorism that appears to be intended to 
                influence the policy, or affect the conduct, of the 
                Government of the United States or a foreign 
                government.
                    ``(vi) An offender, acting outside the territorial 
                jurisdiction of the United States, is an alien and the 
                act of terrorism is an act of international terrorism 
                that appears to be intended to influence the policy of, 
                or affect the conduct of, the Government of the United 
                States.
                    ``(vii) An offender aids or abets any person over 
                whom jurisdiction exists under this paragraph in 
                committing an offense under this paragraph or conspires 
                with any person over whom jurisdiction exists under 
                this paragraph to commit an offense under this 
                paragraph.''; and
            (4) by inserting ``act or'' after ``underlying''.
    (b) Definitions.--Section 2339A(b) of title 18, United States Code, 
is amended--
            (1) by striking ``In this'' and inserting ``(1) In this'';
            (2) by inserting ``any property, tangible or intangible, or 
        service, including'' after ``means'';
            (3) by inserting ``(one or more individuals who may be or 
        include oneself)'' after ``personnel'';
            (4) by inserting ``and'' before ``transportation'';
            (5) by striking ``and other physical assets''; and
            (6) by adding at the end the following:
    ``(2) As used in this subsection, the term `training' means 
instruction or teaching designed to impart a specific skill, as opposed 
to general knowledge, and the term `expert advice or assistance' means 
advice or assistance derived from scientific, technical or other 
specialized knowledge.''.
    (c) Addition to Offense of Providing Material Support to Terrorist 
Organizations.--Section 2339B(a)(1) of title 18, United States Code, is 
amended--
            (1) by striking ``, within the United States or subject to 
        the jurisdiction of the United States,'' and inserting ``in a 
        circumstance described in paragraph (2)''; and
            (2) by adding at the end the following: ``To violate this 
        paragraph, a person must have knowledge that the organization 
        is a designated terrorist organization (as defined in 
        subsection (g)(6)), that the organization has engaged or 
        engages in terrorist activity (as defined in section 
        212(a)(3)(B) of the Immigration and Nationality Act, or that 
        the organization has engaged or engages in terrorism (as 
        defined in section 140(d)(2) of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989.''.
    (d) Federal Authority.--Section 2339B(d) of title 18 is amended--
            (1) by inserting ``(1)'' before ``There''; and
            (2) by adding at the end the following:
    ``(2) The circumstances referred to in paragraph (1) are any of the 
following:
            ``(A) An offender is a national of the United States (as 
        defined in section 101(a)(22) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(22)) or an alien lawfully 
        admitted for permanent residence in the United States (as 
        defined in section 101(a)(20) of the Immigration and 
        Nationality Act.
            ``(B) An offender is a stateless person whose habitual 
        residence is in the United States.
            ``(C) After the conduct required for the offense occurs an 
        offender is brought into or found in the United States, even if 
        the conduct required for the offense occurs outside the United 
        States.
            ``(D) The offense occurs in whole or in part within the 
        United States.
            ``(E) The offense occurs in or affects interstate or 
        foreign commerce.
            ``(F) An offender aids or abets any person over whom 
        jurisdiction exists under this paragraph in committing an 
        offense under subsection (a) or conspires with any person over 
        whom jurisdiction exists under this paragraph to commit an 
        offense under subsection (a).''.
    (e) Definition.--Paragraph (4) of section 2339B(g) of title 18, 
United States Code, is amended to read as follows:
            ``(4) the term `material support or resources' has the same 
        meaning given that term in section 2339A;''.
    (f) Additional Provisions.--Section 2339B of title 18, United 
States Code, is amended by adding at the end the following:
    ``(h) Provision of Personnel.--No person may be prosecuted under 
this section in connection with the term `personnel' unless that person 
has knowingly provided, attempted to provide, or conspired to provide a 
foreign terrorist organization with one or more individuals (who may be 
or include himself) to work under that terrorist organization's 
direction or control or to organize, manage, supervise, or otherwise 
direct the operation of that organization. Individuals who act entirely 
independently of the foreign terrorist organization to advance its 
goals or objectives shall not be considered to be working under the 
foreign terrorist organization's direction and control.
    ``(i) Rule of Construction.--Nothing in this section shall be 
construed or applied so as to abridge the exercise of rights guaranteed 
under the First Amendment to the Constitution of the United States.''.

SEC. 2044. FINANCING OF TERRORISM.

    (a) Financing Terrorism.--Section 2339c(c)(2) of title 18, United 
States Code, is amended--
            (1) by striking ``, resources, or funds'' and inserting 
        ``or resources, or any funds or proceeds of such funds'';
            (2) in subparagraph (A), by striking ``were provided'' and 
        inserting ``are to be provided, or knowing that the support or 
        resources were provided,''; and
            (3) in subparagraph (B)--
                    (A) by striking ``or any proceeds of such funds''; 
                and
                    (B) by striking ``were provided or collected'' and 
                inserting ``are to be provided or collected, or knowing 
                that the funds were provided or collected,''.
    (b) Definitions.--Section 2339c(e) of title 18, United States Code, 
is amended--
            (1) by striking ``and'' at the end of paragraph (12);
            (2) by redesignating paragraph (13) as paragraph (14); and
            (3) by inserting after paragraph (12) the following:
            ``(13) the term `material support or resources' has the 
        same meaning given that term in section 2339B(g)(4) of this 
        title; and''.

Subtitle D--Weapons of Mass Destruction Prohibition Improvement Act of 
                                  2004

SEC. 2051. SHORT TITLE.

    This subtitle may be cited as the ``Weapons of Mass Destruction 
Prohibition Improvement Act of 2004''.

SEC. 2052. WEAPONS OF MASS DESTRUCTION.

    (a) Expansion of Jurisdictional Bases and Scope.--Section 2332a of 
title 18, United States Code, is amended--
            (1) so that paragraph (2) of subsection (a) reads as 
        follows:
            ``(2) against any person or property within the United 
        States, and
                    ``(A) the mail or any facility of interstate or 
                foreign commerce is used in furtherance of the offense;
                    ``(B) such property is used in interstate or 
                foreign commerce or in an activity that affects 
                interstate or foreign commerce;
                    ``(C) any perpetrator travels in or causes another 
                to travel in interstate or foreign commerce in 
                furtherance of the offense; or
                    ``(D) the offense, or the results of the offense, 
                affect interstate or foreign commerce, or, in the case 
                of a threat, attempt, or conspiracy, would have 
                affected interstate or foreign commerce;'';
            (2) in paragraph (3) of subsection (a), by striking the 
        comma at the end and inserting ``; or'';
            (3) in subsection (a), by adding the following at the end:
            ``(4) against any property within the United States that is 
        owned, leased, or used by a foreign government,'';
            (4) at the end of subsection (c)(1), by striking ``and'';
            (5) in subsection (c)(2), by striking the period at the end 
        and inserting ``; and''; and
            (6) in subsection (c), by adding at the end the following:
            ``(3) the term `property' includes all real and personal 
        property.''.
    (b) Restoration of the Coverage of Chemical Weapons.--Section 2332a 
of title 18, United States Code, as amended by subsection (a), is 
further amended--
            (1) in the section heading, by striking ``certain'';
            (2) in subsection (a), by striking ``(other than a chemical 
        weapon as that term is defined in section 229F)''; and
            (3) in subsection (b), by striking ``(other than a chemical 
        weapon (as that term is defined in section 229F))''.
    (c) Expansion of Categories of Restricted Persons Subject to 
Prohibitions Relating to Select Agents.--Section 175b(d)(2) of title 
18, United States Code, is amended--
            (1) in subparagraph (G) by--
                    (A) inserting ``(i)'' after ``(G)'';
                    (B) inserting ``, or (ii) acts for or on behalf of, 
                or operates subject to the direction or control of, a 
                government or official of a country described in this 
                subparagraph'' after ``terrorism''; and
                    (C) striking ``or'' after the semicolon.
            (2) in subparagraph (H) by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(I) is a member of, acts for or on behalf of, or 
                operates subject to the direction or control of, a 
                terrorist organization as defined in section 
                212(a)(3)(B)(vi) of the Immigration and Nationality Act 
                (8 U.S.C. 1182(a)(3)(B)(vi)).''.
    (d) Conforming Amendment to Regulations.--
            (1) Section 175b(a)(1) of title 18, United States Code, is 
        amended by striking ``as a select agent in Appendix A'' and all 
        that follows and inserting the following: ``as a non-overlap or 
        overlap select biological agent or toxin in sections 73.4 and 
        73.5 of title 42, Code of Federal Regulations, pursuant to 
        section 351A of the Public Health Service Act, and is not 
        excluded under sections 73.4 and 73.5 or exempted under section 
        73.6 of title 42, Code of Federal Regulations.''.
            (2) The amendment made by paragraph (1) shall take effect 
        at the same time that sections 73.4, 73.5, and 73.6 of title 
        42, Code of Federal Regulations, become effective.

SEC. 2053. PARTICIPATION IN NUCLEAR AND WEAPONS OF MASS DESTRUCTION 
              THREATS TO THE UNITED STATES.

    (a) Section 57(b) of the Atomic Energy Act of 1954 (42 U.S.C. 
2077(b)) is amended by striking ``in the production of any special 
nuclear material'' and inserting ``or participate in the development or 
production of any special nuclear material or atomic weapon''.
    (b) Title 18, United States Code, is amended--
            (1) in the table of sections at the beginning of chapter 
        39, by inserting after the item relating to section 831 the 
        following:

``832. Participation in nuclear and weapons of mass destruction threats 
                            to the United States.'';
            (2) by inserting after section 831 the following:
``Sec. 832. Participation in nuclear and weapons of mass destruction 
              threats to the United States
    ``(a) Whoever, within the United States or subject to the 
jurisdiction of the United States, willfully participates in or 
provides material support or resources (as defined in section 2339A) to 
a nuclear weapons program or other weapons of mass destruction program 
of a foreign terrorist power, or attempts or conspires to do so, shall 
be imprisoned for not more than 20 years.
    ``(b) There is extraterritorial Federal jurisdiction over an 
offense under this section.
    ``(c) As used in this section--
            ``(1) `nuclear weapons program' means a program or plan for 
        the development, acquisition, or production of any nuclear 
        weapon or weapons;
            ``(2) `weapons of mass destruction program' means a program 
        or plan for the development, acquisition, or production of any 
        weapon or weapons of mass destruction (as defined in section 
        2332a(c));
            ``(3) `foreign terrorist power' means a terrorist 
        organization designated under section 219 of the Immigration 
        and Nationality Act, or a state sponsor of terrorism designated 
        under section 6(j) of the Export Administration Act of 1979 or 
        section 620A of the Foreign Assistance Act of 1961; and
            ``(4) `nuclear weapon' means any weapon that contains or 
        uses nuclear material as defined in section 831(f)(1).''; and
            (3) in section 2332b(g)(5)(B)(i), by inserting after 
        ``nuclear materials),'' the following: ``832 (relating to 
        participation in nuclear and weapons of mass destruction 
        threats to the United States)''.

          Subtitle E--Money Laundering and Terrorist Financing

   CHAPTER 1--FUNDING TO COMBAT FINANCIAL CRIMES INCLUDING TERRORIST 
                               FINANCING

SEC. 2101. ADDITIONAL AUTHORIZATION FOR FINCEN.

    Subsection (d) of section 310 of title 31, United States Code, is 
amended--
            (1) by striking ``appropriations.--There are authorized'' 
        and inserting ``Appropriations.--
            ``(1) In general.--There are authorized''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Authorization for funding key technological 
        improvements in mission-critical fincen systems.--There are 
        authorized to be appropriated for fiscal year 2005 the 
        following amounts, which are authorized to remain available 
        until expended:
                    ``(A) BSA direct.--For technological improvements 
                to provide authorized law enforcement and financial 
                regulatory agencies with Web-based access to FinCEN 
                data, to fully develop and implement the highly secure 
                network required under section 362 of Public Law 107-56 
                to expedite the filing of, and reduce the filing costs 
                for, financial institution reports, including 
                suspicious activity reports, collected by FinCEN under 
                chapter 53 and related provisions of law, and enable 
                FinCEN to immediately alert financial institutions 
                about suspicious activities that warrant immediate and 
                enhanced scrutiny, and to provide and upgrade advanced 
                information-sharing technologies to materially improve 
                the Government's ability to exploit the information in 
                the FinCEN databanks, $16,500,000.
                    ``(B) Advanced analytical technologies.--To provide 
                advanced analytical tools needed to ensure that the 
                data collected by FinCEN under chapter 53 and related 
                provisions of law are utilized fully and appropriately 
                in safeguarding financial institutions and supporting 
                the war on terrorism, $5,000,000.
                    ``(C) Data networking modernization.--To improve 
                the telecommunications infrastructure to support the 
                improved capabilities of the FinCEN systems, 
                $3,000,000.
                    ``(D) Enhanced compliance capability.--To improve 
                the effectiveness of the Office of Compliance in 
                FinCEN, $3,000,000.
                    ``(E) Detection and prevention of financial crimes 
                and terrorism.--To provide development of, and training 
                in the use of, technology to detect and prevent 
                financial crimes and terrorism within and without the 
                United States, $8,000,000.''.

SEC. 2102. MONEY LAUNDERING AND FINANCIAL CRIMES STRATEGY 
              REAUTHORIZATION.

    (a) Program.--Section 5341(a)(2) of title 31, United States Code, 
is amended by striking ``and 2003,'' and inserting ``2003, and 2005,''.
    (b) Reauthorization of Appropriations.--Section 5355 of title 31, 
United States Code, is amended by adding at the end the following:

    ``2004.........................
                                        $15,000,000.
    ``2005.........................
                                        $15,000,000.''.

   CHAPTER 2--ENFORCEMENT TOOLS TO COMBAT FINANCIAL CRIMES INCLUDING 
                          TERRORIST FINANCING

 Subchapter A--Money laundering abatement and financial antiterrorism 
                         technical corrections

SEC. 2111. SHORT TITLE.

    This subchapter may be cited as the ``Money Laundering Abatement 
and Financial Antiterrorism Technical Corrections Act of 2004''.

SEC. 2112. TECHNICAL CORRECTIONS TO PUBLIC LAW 107-56.

    (a) The heading of title III of Public Law 107-56 is amended to 
read as follows:

  ``TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL 
                      ANTITERRORISM ACT OF 2001''.

    (b) The table of contents of Public Law 107-56 is amended by 
striking the item relating to title III and inserting the following new 
item:

  ``TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL 
                      ANTITERRORISM ACT OF 2001''.

    (c) Section 302 of Public Law 107-56 is amended--
            (1) in subsection (a)(4), by striking the comma after 
        ``movement of criminal funds'';
            (2) in subsection (b)(7), by inserting ``or types of 
        accounts'' after ``classes of international transactions''; and
            (3) in subsection (b)(10), by striking ``subchapters II and 
        III'' and inserting ``subchapter II''.
    (d) Section 303(a) of Public Law 107-56 is amended by striking 
``Anti-Terrorist Financing Act'' and inserting ``Financial 
Antiterrorism Act''.
    (e) The heading for section 311 of Public Law 107-56 is amended by 
striking ``or international transactions'' and inserting 
``international transactions, or types of accounts''.
    (f) Section 314 of Public Law 107-56 is amended--
            (1) in paragraph (1)--
                    (A) by inserting a comma after ``organizations 
                engaged in''; and
                    (B) by inserting a comma after ``credible evidence 
                of engaging in'';
            (2) in paragraph (2)(A)--
                    (A) by striking ``and'' after ``nongovernmental 
                organizations,''; and
                    (B) by inserting a comma after ``unwittingly 
                involved in such finances'';
            (3) in paragraph (3)(A)--
                    (A) by striking ``to monitor accounts of'' and 
                inserting ``monitor accounts of,''; and
                    (B) by striking the comma after ``organizations 
                identified''; and
            (4) in paragraph (3)(B), by inserting ``financial'' after 
        ``size, and nature of the''.
    (g) Section 321 of Public Law 107-56 is amended by striking 
``5312(2)'' and inserting ``5312(a)(2)''.
    (h) Section 325 of Public Law 107-56 is amended by striking ``as 
amended by section 202 of this title,'' and inserting ``as amended by 
section 352,''.
    (i) Subsections (a)(2) and (b)(2) of section 327 of Public Law 107-
56 are each amended by inserting a period after ``December 31, 2001'' 
and striking all that follows through the period at the end of each 
such subsection.
    (j) Section 356(c)(4) of Public Law 107-56 is amended by striking 
``or business or other grantor trust'' and inserting ``, business 
trust, or other grantor trust''.
    (k) Section 358(e) of Public Law 107-56 is amended--
            (1) by striking ``Section 123(a)'' and inserting ``That 
        portion of section 123(a)'';
            (2) by striking ``is amended to read'' and inserting ``that 
        precedes paragraph (1) of such section is amended to read''; 
        and
            (3) by striking ``.'.'' at the end of such section and 
        inserting ``--'''.
    (l) Section 360 of Public Law 107-56 is amended--
            (1) in subsection (a), by inserting ``the'' after 
        ``utilization of the funds of''; and
            (2) in subsection (b), by striking ``at such institutions'' 
        and inserting ``at such institution''.
    (m) Section 362(a)(1) of Public Law 107-56 is amended by striking 
``subchapter II or III'' and inserting ``subchapter II''.
    (n) Section 365 of Public Law 107-56 is amended--
            (1) by redesignating the 2nd of the 2 subsections 
        designated as subsection (c) (relating to a clerical amendment) 
        as subsection (d); and
            (2) by redesignating subsection (f) as subsection (e).
    (o) Section 365(d) of Public Law 107-56 (as so redesignated by 
subsection (n) of this section) is amended by striking ``section 5332 
(as added by section 112 of this title)'' and inserting ``section 
5330''.

SEC. 2113. TECHNICAL CORRECTIONS TO OTHER PROVISIONS OF LAW.

    (a) Section 310(c) of title 31, United States Code, is amended by 
striking ``the Network'' each place such term appears and inserting 
``FinCEN''.
    (b) Section 5312(a)(3)(C) of title 31, United States Code, is 
amended by striking ``sections 5333 and 5316'' and inserting ``sections 
5316 and 5331''.
    (c) Section 5318(i) of title 31, United States Code, is amended--
            (1) in paragraph (3)(B), by inserting a comma after 
        ``foreign political figure'' the 2nd place such term appears; 
        and
            (2) in the heading of paragraph (4), by striking 
        ``Definition'' and inserting ``Definitions''.
    (d) Section 5318(k)(1)(B) of title 31, United States Code, is 
amended by striking ``section 5318A(f)(1)(B)'' and inserting ``section 
5318A(e)(1)(B)''.
    (e) The heading for section 5318A of title 31, United States Code, 
is amended to read as follows:
``Sec. 5318A. Special measures for jurisdictions, financial 
              institutions, international transactions, or types of 
              accounts of primary money laundering concern''.
    (f) Section 5318A of title 31, United States Code, is amended--
            (1) in subsection (a)(4)(A), by striking ``, as defined in 
        section 3 of the Federal Deposit Insurance Act,'' and inserting 
        ``(as defined in section 3 of the Federal Deposit Insurance 
        Act)'';
            (2) in subsection (a)(4)(B)(iii), by striking ``or class of 
        transactions'' and inserting ``class of transactions, or type 
        of account'';
            (3) in subsection (b)(1)(A), by striking ``or class of 
        transactions to be'' and inserting ``class of transactions, or 
        type of account to be''; and
            (4) in subsection (e)(3), by inserting ``or subsection (i) 
        or (j) of section 5318'' after ``identification of individuals 
        under this section''.
    (g) Section 5324(b) of title 31, United States Code, is amended by 
striking ``5333'' each place such term appears and inserting ``5331''.
    (h) Section 5332 of title 31, United States Code, is amended--
            (1) in subsection (b)(2), by striking
        ``, subject to subsection (d) of this section''; and
            (2) in subsection (c)(1), by striking
        ``, subject to subsection (d) of this section,''.
    (i) The table of sections for subchapter II of chapter 53 of title 
31, United States Code, is amended by striking the item relating to 
section 5318A and inserting the following new item:

``5318A. Special measures for jurisdictions, financial institutions, 
                            international transactions, or types of 
                            accounts of primary money laundering 
                            concern.''.
    (j) Section 18(w)(3) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(w)(3)) is amended by inserting a comma after ``agent of 
such institution''.
    (k) Section 21(a)(2) of the Federal Deposit Insurance Act (12 
U.S.C. 1829b(a)(2)) is amended by striking ``recognizes that'' and 
inserting ``recognizing that''.
    (l) Section 626(e) of the Fair Credit Reporting Act (15 U.S.C. 
1681v(e)) is amended by striking ``governmental agency'' and inserting 
``government agency''.

SEC. 2114. REPEAL OF REVIEW.

    Title III of Public Law 107-56 is amended by striking section 303 
(31 U.S.C. 5311 note).

SEC. 2115. EFFECTIVE DATE.

    The amendments made by this subchapter to Public Law 107-56, the 
United States Code, the Federal Deposit Insurance Act, and any other 
provision of law shall take effect as if such amendments had been 
included in Public Law 107-56, as of the date of the enactment of such 
Public Law, and no amendment made by such Public Law that is 
inconsistent with an amendment made by this subchapter shall be deemed 
to have taken effect.

               Subchapter B--Additional enforcement tools

SEC. 2121. BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING.

    (a) Production of Documents.--Section 5114(a) of title 31, United 
States Code (relating to engraving and printing currency and security 
documents), is amended--
            (1) by striking ``(a) The Secretary of the Treasury'' and 
        inserting:
    ``(a) Authority to Engrave and Print.--
            ``(1) In general.--The Secretary of the Treasury''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) Engraving and printing for other governments.--The 
        Secretary of the Treasury may produce currency, postage stamps, 
        and other security documents for foreign governments if--
                    ``(A) the Secretary of the Treasury determines that 
                such production will not interfere with engraving and 
                printing needs of the United States; and
                    ``(B) the Secretary of State determines that such 
                production would be consistent with the foreign policy 
                of the United States.
            ``(3) Procurement guidelines.--Articles, material, and 
        supplies procured for use in the production of currency, 
        postage stamps, and other security documents for foreign 
        governments pursuant to paragraph (2) shall be treated in the 
        same manner as articles, material, and supplies procured for 
        public use within the United States for purposes of title III 
        of the Act of March 3, 1933 (41 U.S.C. 10a et seq.; commonly 
        referred to as the Buy American Act).''.
    (b) Reimbursement.--Section 5143 of title 31, United States Code 
(relating to payment for services of the Bureau of Engraving and 
Printing), is amended--
            (1) in the first sentence, by inserting ``or to a foreign 
        government under section 5114'' after ``agency'';
            (2) in the second sentence, by inserting ``and other'' 
        after ``including administrative''; and
            (3) in the last sentence, by inserting
        ``, and the Secretary shall take such action, in coordination 
        with the Secretary of State, as may be appropriate to ensure 
        prompt payment by a foreign government of any invoice or 
        statement of account submitted by the Secretary with respect to 
        services rendered under section 5114'' before the period at the 
        end.

SEC. 2122. CONDUCT IN AID OF COUNTERFEITING.

    (a) In General.--Section 474(a) of title 18, United States Code, is 
amended by inserting after the paragraph beginning ``Whoever has in his 
control, custody, or possession any plate'' the following:
    ``Whoever, with intent to defraud, has in his custody, control, or 
possession any material that can be used to make, alter, forge or 
counterfeit any obligations and other securities of the United States 
or any part of such securities and obligations, except under the 
authority of the Secretary of the Treasury; or''.
    (b) Foreign Obligations and Securities.--Section 481 of title 18, 
United States Code, is amended by inserting after the paragraph 
beginning ``Whoever, with intent to defraud'' the following:
    ``Whoever, with intent to defraud, has in his custody, control, or 
possession any material that can be used to make, alter, forge or 
counterfeit any obligation or other security of any foreign government, 
bank or corporation; or''.
    (c) Counterfeit Acts.--Section 470 of title 18, United States Code, 
is amended by striking ``or 474'' and inserting ``474, or 474A''.
    (d) Materials Used in Counterfeiting.--Section 474A(b) of title 18, 
United States Code, is amended by striking ``any essentially 
identical'' and inserting ``any thing or material made after or in the 
similitude of any''.

SEC. 2123. REPORTING OF CROSS-BORDER TRANSMITTAL OF FUNDS.

    Section 5318 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(n) Reporting of Cross-Border Transmittal of Funds.--
            ``(1) In general.--Subject to paragraph (3), the Secretary 
        shall prescribe regulations requiring such financial 
        institutions as the Secretary determines to be appropriate to 
        report to the Financial Crimes Enforcement Network certain 
        cross-border electronic transmittals of funds relevant to 
        efforts of the Secretary against money laundering and terrorist 
        financing.
            ``(2) Form and manner of reports.--In prescribing the 
        regulations required under paragraph (1), the Secretary shall 
        determine the appropriate form, manner, content and frequency 
        of filing of the required reports.
            ``(3) Feasibility report.--Before prescribing the 
        regulations required under paragraph (1), and as soon as is 
        practicable after the date of enactment of the 9/11 
        Recommendations Implementation Act, the Secretary shall 
        delegate to the Bank Secrecy Act Advisory Group established by 
        the Secretary the task of producing a report for the Secretary 
        and the Congress that--
                    ``(A) identifies the information in cross-border 
                electronic transmittals of funds that is relevant to 
                efforts against money laundering and terrorist 
                financing;
                    ``(B) makes recommendations regarding the 
                appropriate form, manner, content and frequency of 
                filing of the required reports; and
                    ``(C) identifies the technology necessary for the 
                Financial Crimes Enforcement Network to receive, keep, 
                exploit and disseminate information from reports of 
                cross-border electronic transmittals of funds to law 
                enforcement and other entities engaged in efforts 
                against money laundering and terrorist financing.
        The report shall be submitted to the Secretary and the Congress 
        no later than the end of the 1-year period beginning on the 
        date of enactment of such Act.
            ``(4) Regulations.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                regulations required by paragraph (1) shall be 
                prescribed in final form by the Secretary, in 
                consultation with the Board of Governors of the Federal 
                Reserve System, before the end of the 3-year period 
                beginning on the date of the enactment of the 9/11 
                Recommendations Implementation Act.
                    ``(B) Technological feasibility.--No regulations 
                shall be prescribed under this subsection before the 
                Secretary certifies to the Congress that the Financial 
                Crimes Enforcement Network has the technological 
                systems in place to effectively and efficiently 
                receive, keep, exploit, and disseminate information 
                from reports of cross-border electronic transmittals of 
                funds to law enforcement and other entities engaged in 
                efforts against money laundering and terrorist 
                financing.
            ``(5) Recordkeeping.--No financial institution required to 
        submit reports on certain cross-border electronic transmittals 
        of funds to the Financial Crimes Enforcement Network under this 
        subsection shall be subject to the recordkeeping requirement 
        under section 21(b)(3) of the Federal Deposit Insurance Act 
        with respect to such transmittals of funds.''.

SEC. 2124. ENHANCED EFFECTIVENESS OF EXAMINATIONS, INCLUDING ANTI-MONEY 
              LAUNDERING PROGRAMS.

    (a) Depository Institutions and Depository Institution Holding 
Companies.--Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 
1820) is amended by adding at the end the following new subsection:
    ``(k) Post-Employment Limitations on Leading Bank Examiners.--
            ``(1) In general.--In the case of any person who--
                    ``(A) was an officer or employee (including any 
                special Government employee) of a Federal banking 
                agency or a Federal reserve bank; and
                    ``(B) served 2 or more months during the final 18 
                months of such person's employment with such agency or 
                entity as the examiner-in-charge (or a functionally 
                equivalent position) of a depository institution or 
                depository institution holding company with dedicated, 
                overall, continuous, and ongoing responsibility for the 
                examination (or inspection) and supervision of that 
                depository institution or depository institution 
                holding company,
        such person may not hold any office, position, or employment at 
        any such depository institution or depository institution 
        holding company, become a controlling shareholder in, a 
        consultant for, a joint-venture partner with, or an independent 
        contractor for (including as attorney, appraiser, or 
        accountant) any such depository institution or holding company, 
        or any other company that controls such depository institution, 
        or otherwise participate in the conduct of the affairs of any 
        such depository institution or holding company, during the 1-
        year period beginning on such date.
            ``(2) Violators subject to industry-wide prohibition 
        orders.--
                    ``(A) In general.--In addition to any other penalty 
                which may apply, whenever the appropriate Federal 
                banking agency determines that a person subject to 
                paragraph (1) has violated the prohibition in such 
                paragraph with respect to any insured depository 
                institution or depository institution holding company 
                or any other company, the agency shall serve a written 
                notice or order, in accordance with and subject to the 
                provisions of section 8(e)(4) for written notices under 
                paragraphs (1) or (2) of section 8(e), upon such person 
                of the agency's intention to--
                            ``(i) remove such person from office in any 
                        capacity described in paragraph (1); and
                            ``(ii) prohibit any further participation 
                        by such person, in any manner, in the conduct 
                        of the affairs of any insured depository 
                        institution or depository institution holding 
                        company for a period of 5 years.
                    ``(B) Scope of prohibition order.--Any person 
                subject to an order issued under this subsection shall 
                be subject to paragraphs (6) and (7) of section 8(e) in 
                the same manner and to the same extent as a person 
                subject to an order issued under such section and 
                subsections (i) and (j) of section 8 and any other 
                provision of this Act applicable to orders issued under 
                subsection (e) or (g) shall apply with respect to such 
                order.
            ``(3) Regulations.--
                    ``(A) In general.--The Federal banking agencies 
                shall prescribe regulations to implement this 
                subsection, including the manner for determining which 
                persons are referred to in paragraph 1(B) taking into 
                account--
                            ``(i) the manner in which examiners and 
                        other persons who participate in the 
                        regulation, examination, or monitoring of 
                        depository institutions or depository 
                        institution holding companies are distributed 
                        among such institutions or companies by such 
                        agency, including the number of examiners and 
                        other persons assigned to each institution or 
                        holding company, the depth and structure of any 
                        group so assigned within such distribution, and 
                        the factors giving rise to that distribution;
                            ``(ii) the number of institutions or 
                        companies each such examiner or other person is 
                        so involved with in any given period of 
                        assignment;
                            ``(iii) the period of time for which each 
                        such examiner or other person is assigned to an 
                        institution or company, or a group of 
                        institutions or companies, before reassignment;
                            ``(iv) the size of the institutions or 
                        holding companies for which each such person is 
                        responsible and the amount of time devoted to 
                        each such institution or holding company during 
                        each examination period; and
                            ``(v) such other factors as the agency 
                        determines to be appropriate.
                    ``(B) Determination of applicability.--The 
                regulations prescribed or orders issued under this 
                subparagraph by an appropriate Federal banking agency 
                shall include a process, initiated by application or 
                otherwise, for determining whether any person who 
                ceases to be, or intends to cease to be, an examiner 
                of, or a person having supervisory authority over, 
                insured depository institutions or depository 
                institution holding companies for or on behalf of such 
                agency is subject to the limitations of this subsection 
                with respect to any particular insured depository 
                institution or depository institution holding company.
                    ``(C) Consultation.--The Federal banking agencies 
                shall consult with each other for the purpose of 
                assuring that the rules and regulations issued by the 
                agencies under subparagraph (A) are, to the extent 
                possible, consistent, comparable, and practicable, 
                taking into account any differences in the supervisory 
                programs utilized by the agencies for the supervision 
                of depository institutions and depository institution 
                holding companies.
            ``(4) Waiver.--A Federal banking agency may waive, on a 
        case-by-case basis, the restrictions imposed by this subsection 
        if--
                    ``(A) the head of the agency certifies in writing 
                that the grant of such waiver would be not inconsistent 
                with the public interest; and
                    ``(B) the waiver is provided in advance before the 
                person becomes affiliated in any way with the 
                depository institution or depository institution 
                holding company.
            ``(5) Definitions and rules of construction.--For purposes 
        of this subsection, the following definitions and rules shall 
        apply:
                    ``(A) Depository institution.--The term `depository 
                institution' includes an uninsured branch or agency of 
                a foreign bank if such branch or agency is located in 
                any State.
                    ``(B) Depository institution holding company.--The 
                term `depository institution holding company' includes 
                any foreign bank or company described in section 8(a) 
                of the International Banking Act of 1978.
                    ``(C) Head of the agency.--The term `the head of 
                agency' means--
                            ``(i) the Comptroller of the Currency, in 
                        the case of the Office of the Comptroller of 
                        the Currency;
                            ``(ii) the Chairman of the Board of 
                        Governors of the Federal Reserve System, in the 
                        case of the Board of Governors of the Federal 
                        Reserve System;
                            ``(iii) the Chairperson of the Board of 
                        Directors, in the case of the Federal Deposit 
                        Insurance Corporation; and
                            ``(iv) the Director, in the case of the 
                        Office of Thrift Supervision.
                    ``(D) Rule of construction for consultants and 
                independent contractors.--A person shall be deemed to 
                act as a consultant or independent contractor 
                (including as an attorney, appraiser, or accountant) 
                for a depository institution or a depository holding 
                company only if such person directly works on matters 
                for, or on behalf of, such depository institution or 
                depository holding company.
                    ``(E) Appropriate agency for certain other 
                companies.--The term `appropriate Federal banking 
                agency' means, with respect to a company that is not a 
                depository institution or depository institution 
                holding company, the Federal banking agency on whose 
                behalf the person described in paragraph (1) performed 
                the functions described in paragraph (3).''.
    (b) Credit Unions.--Section 206 of the Federal Credit Union Act (12 
U.S.C. 1786) is amended by adding at the end the following new 
subsection:
    ``(w) Post-Employment Limitations on Examiners.--
            ``(1) Regulations required.--The Board shall consult with 
        the Federal banking agencies and prescribe regulations imposing 
        the same limitations on persons employed by or on behalf of the 
        Board as leading examiners of, or functionally equivalent 
        positions with respect to, credit unions as are applicable 
        under section 10(k) of the Federal Deposit Insurance Act, 
        taking into account all the requirements and factors described 
        in paragraphs (3) and (4) of such section.
            ``(2) Enforcement.--The Board shall issue orders under 
        subsection (g) with respect to any person who violates any 
        regulation prescribed pursuant to paragraph (1) to--
                    ``(A) remove such person from office in any 
                capacity with respect to a credit union; and
                    ``(B) prohibit any further participation by such 
                person, in any manner, in the conduct of the affairs of 
                any credit union for a period of 5 years.
            ``(3) Scope of prohibition order.--Any person subject to an 
        order issued under this subsection shall be subject to 
        paragraphs (5) and (7) of subsection (g) in the same manner and 
        to the same extent as a person subject to an order issued under 
        such subsection and subsection (l) and any other provision of 
        this Act applicable to orders issued under subsection (g) shall 
        apply with respect to such order.''.
    (c) Study of Examiner Hiring and Retention.--
            (1) Study required.--The Board of Directors of the Federal 
        Deposit Insurance Corporation, the Comptroller of the Currency, 
        the Director of the Office of Thrift Supervision, the Board of 
        Governors of the Federal Reserve System, and the National 
        Credit Union Administration Board, acting through the Financial 
        Institutions Examination Council, shall conduct a study of 
        efforts and proposals for--
                    (A) retaining the services of experienced and 
                highly qualified examiners and supervisors already 
                employed by such agencies; and
                    (B) continuing to attract such examiners and 
                supervisors on an-ongoing basis to the extent necessary 
                to fulfill the agencies' obligations to maintain the 
                safety and soundness of the Nation's depository 
                institutions.
            (2) Report.--Before the end of the 1-year period beginning 
        on the date of the enactment of this Act, the agencies 
        conducting the study under paragraph (1) shall submit a report 
        containing the findings and conclusions of such agencies with 
        respect to such study, together with such recommendations for 
        administrative or legislative changes as the agencies determine 
        to be appropriate.

      Subchapter C--Unlawful Internet Gambling Funding Prohibition

SEC. 2131. SHORT TITLE.

    This subchapter may be cited as the ``Unlawful Internet Gambling 
Funding Prohibition Act''.

SEC. 2132. FINDINGS.

    The Congress finds as follows:
            (1) Internet gambling is primarily funded through personal 
        use of bank instruments, including credit cards and wire 
        transfers.
            (2) The National Gambling Impact Study Commission in 1999 
        recommended the passage of legislation to prohibit wire 
        transfers to Internet gambling sites or the banks which 
        represent them.
            (3) Internet gambling is a major cause of debt collection 
        problems for insured depository institutions and the consumer 
        credit industry.
            (4) Internet gambling conducted through offshore 
        jurisdictions has been identified by United States law 
        enforcement officials as a significant money laundering 
        vulnerability.

SEC. 2133. POLICIES AND PROCEDURES REQUIRED TO PREVENT PAYMENTS FOR 
              UNLAWFUL INTERNET GAMBLING.

    (a) Regulations.--Before the end of the 6-month period beginning on 
the date of the enactment of this subchapter, the Federal functional 
regulators shall prescribe regulations requiring any designated payment 
system to establish policies and procedures reasonably designed to 
identify and prevent restricted transactions in any of the following 
ways:
            (1) The establishment of policies and procedures that--
                    (A) allow the payment system and any person 
                involved in the payment system to identify restricted 
                transactions by means of codes in authorization 
                messages or by other means; and
                    (B) block restricted transactions identified as a 
                result of the policies and procedures developed 
                pursuant to subparagraph (A).
            (2) The establishment of policies and procedures that 
        prevent the acceptance of the products or services of the 
        payment system in connection with a restricted transaction.
    (b) Requirements for Policies and Procedures.--In prescribing 
regulations pursuant to subsection (a), the Federal functional 
regulators shall--
            (1) identify types of policies and procedures, including 
        nonexclusive examples, which would be deemed to be ``reasonably 
        designed to identify'' and ``reasonably designed to block'' or 
        to ``prevent the acceptance of the products or services'' with 
        respect to each type of transaction, such as, should credit 
        card transactions be so designated, identifying transactions by 
        a code or codes in the authorization message and denying 
        authorization of a credit card transaction in response to an 
        authorization message;
            (2) to the extent practical, permit any participant in a 
        payment system to choose among alternative means of identifying 
        and blocking, or otherwise preventing the acceptance of the 
        products or services of the payment system or participant in 
        connection with, restricted transactions; and
            (3) consider exempting restricted transactions from any 
        requirement under subsection (a) if the Federal functional 
        regulators find that it is not reasonably practical to identify 
        and block, or otherwise prevent, such transactions.
    (c) Compliance With Payment System Policies and Procedures.--A 
creditor, credit card issuer, financial institution, operator of a 
terminal at which an electronic fund transfer may be initiated, money 
transmitting business, or international, national, regional, or local 
network utilized to effect a credit transaction, electronic fund 
transfer, or money transmitting service, or a participant in such 
network, meets the requirement of subsection (a) if--
            (1) such person relies on and complies with the policies 
        and procedures of a designated payment system of which it is a 
        member or participant to--
                    (A) identify and block restricted transactions; or
                    (B) otherwise prevent the acceptance of the 
                products or services of the payment system, member, or 
                participant in connection with restricted transactions; 
                and
            (2) such policies and procedures of the designated payment 
        system comply with the requirements of regulations prescribed 
        under subsection (a).
    (d) Enforcement.--
            (1) In general.--This section shall be enforced by the 
        Federal functional regulators and the Federal Trade Commission 
        under applicable law in the manner provided in section 505(a) 
        of the Gramm-Leach-Bliley Act.
            (2) Factors to be considered.--In considering any 
        enforcement action under this subsection against any payment 
        system, or any participant in a payment system that is a 
        creditor, credit card issuer, financial institution, operator 
        of a terminal at which an electronic fund transfer may be 
        initiated, money transmitting business, or international, 
        national, regional, or local network utilized to effect a 
        credit transaction, electronic fund transfer, or money 
        transmitting service, or a participant in such network, the 
        Federal functional regulators and the Federal Trade Commission 
        shall consider the following factors:
                    (A) The extent to which such person is extending 
                credit or transmitting funds knowing the transaction is 
                in connection with unlawful Internet gambling.
                    (B) The history of such person in extending credit 
                or transmitting funds knowing the transaction is in 
                connection with unlawful Internet gambling.
                    (C) The extent to which such person has established 
                and is maintaining policies and procedures in 
                compliance with regulations prescribed under this 
                subsection.
                    (D) The feasibility that any specific remedy 
                prescribed can be implemented by such person without 
                substantial deviation from normal business practice.
                    (E) The costs and burdens the specific remedy will 
                have on such person.

SEC. 2134. DEFINITIONS.

    For purposes of this subchapter, the following definitions shall 
apply:
            (1) Restricted transaction.--The term ``restricted 
        transaction'' means any transaction or transmittal to any 
        person engaged in the business of betting or wagering, in 
        connection with the participation of another person in unlawful 
        Internet gambling, of--
                    (A) credit, or the proceeds of credit, extended to 
                or on behalf of such other person (including credit 
                extended through the use of a credit card);
                    (B) an electronic fund transfer or funds 
                transmitted by or through a money transmitting 
                business, or the proceeds of an electronic fund 
                transfer or money transmitting service, from or on 
                behalf of the other person;
                    (C) any check, draft, or similar instrument which 
                is drawn by or on behalf of the other person and is 
                drawn on or payable at or through any financial 
                institution; or
                    (D) the proceeds of any other form of financial 
                transaction as the Federal functional regulators may 
                prescribe by regulation which involves a financial 
                institution as a payor or financial intermediary on 
                behalf of or for the benefit of the other person.
            (2) Bets or wagers.--The term ``bets or wagers''--
                    (A) means the staking or risking by any person of 
                something of value upon the outcome of a contest of 
                others, a sporting event, or a game subject to chance, 
                upon an agreement or understanding that the person or 
                another person will receive something of greater value 
                than the amount staked or risked in the event of a 
                certain outcome;
                    (B) includes the purchase of a chance or 
                opportunity to win a lottery or other prize (which 
                opportunity to win is predominantly subject to chance);
                    (C) includes any scheme of a type described in 
                section 3702 of title 28, United States Code;
                    (D) includes any instructions or information 
                pertaining to the establishment or movement of funds in 
                an account by the bettor or customer with the business 
                of betting or wagering; and
                    (E) does not include--
                            (i) any activity governed by the securities 
                        laws (as that term is defined in section 
                        3(a)(47) of the Securities Exchange Act of 
                        1934) for the purchase or sale of securities 
                        (as that term is defined in section 3(a)(10) of 
                        such Act);
                            (ii) any transaction conducted on or 
                        subject to the rules of a registered entity or 
                        exempt board of trade pursuant to the Commodity 
                        Exchange Act;
                            (iii) any over-the-counter derivative 
                        instrument;
                            (iv) any other transaction that--
                                    (I) is excluded or exempt from 
                                regulation under the Commodity Exchange 
                                Act; or
                                    (II) is exempt from State gaming or 
                                bucket shop laws under section 12(e) of 
                                the Commodity Exchange Act or section 
                                28(a) of the Securities Exchange Act of 
                                1934;
                            (v) any contract of indemnity or guarantee;
                            (vi) any contract for insurance;
                            (vii) any deposit or other transaction with 
                        a depository institution (as defined in section 
                        3(c) of the Federal Deposit Insurance Act);
                            (viii) any participation in a simulation 
                        sports game or an educational game or contest 
                        that--
                                    (I) is not dependent solely on the 
                                outcome of any single sporting event or 
                                nonparticipant's singular individual 
                                performance in any single sporting 
                                event;
                                    (II) has an outcome that reflects 
                                the relative knowledge and skill of the 
                                participants with such outcome 
                                determined predominantly by accumulated 
                                statistical results of sporting events; 
                                and
                                    (III) offers a prize or award to a 
                                participant that is established in 
                                advance of the game or contest and is 
                                not determined by the number of 
                                participants or the amount of any fees 
                                paid by those participants; and
                            (ix) any lawful transaction with a business 
                        licensed or authorized by a State, and for 
                        purposes of this clause, the term ``lawful 
                        transaction'' means any transaction that is 
                        lawful under all applicable Federal laws and 
                        all applicable State laws of both the State in 
                        which the licensed or authorized business is 
                        located and the State where the bet is 
                        initiated.
            (3) Designated payment system defined.--The term 
        ``designated payment system'' means any system utilized by any 
        creditor, credit card issuer, financial institution, operator 
        of a terminal at which an electronic fund transfer may be 
        initiated, money transmitting business, or international, 
        national, regional, or local network utilized to effect a 
        credit transaction, electronic fund transfer, or money 
        transmitting service, or any participant in such network, that 
        the Federal functional regulators determine, by regulation or 
        order, could be utilized in connection with, or to facilitate, 
        any restricted transaction.
            (4) Federal functional regulator.--The term ``Federal 
        functional regulator'' has the same meaning as in section 
        509(2) of the Gramm-Leach-Bliley Act.
            (5) Internet.--The term ``Internet'' means the 
        international computer network of interoperable packet switched 
        data networks.
            (6) Unlawful internet gambling.--The term ``unlawful 
        Internet gambling'' means to place, receive, or otherwise 
        transmit a bet or wager by any means which involves the use, at 
        least in part, of the Internet where such bet or wager is 
        unlawful under any applicable Federal or State law in the State 
        in which the bet or wager is initiated, received, or otherwise 
        made.
            (7) Other terms.--
                    (A) Credit; creditor; and credit card.--The terms 
                ``credit'', ``creditor'', and ``credit card'' have the 
                meanings given such terms in section 103 of the Truth 
                in Lending Act.
                    (B) Electronic fund transfer.--The term 
                ``electronic fund transfer''--
                            (i) has the meaning given such term in 
                        section 903 of the Electronic Fund Transfer 
                        Act; and
                            (ii) includes any fund transfer covered by 
                        Article 4A of the Uniform Commercial Code, as 
                        in effect in any State.
                    (C) Financial institution.--The term ``financial 
                institution''--
                            (i) has the meaning given such term in 
                        section 903 of the Electronic Fund Transfer 
                        Act; and
                            (ii) includes any financial institution, as 
                        defined in section 509(3) of the Gramm-Leach-
                        Bliley Act.
                    (D) Money transmitting business and money 
                transmitting service.--The terms ``money transmitting 
                business'' and ``money transmitting service'' have the 
                meanings given such terms in section 5330(d) of title 
                31, United States Code.

SEC. 2135. COMMON SENSE RULE OF CONSTRUCTION.

    No provision of this subchapter shall be construed as altering, 
limiting, extending, changing the status of, or otherwise affecting any 
law relating to, affecting, or regulating gambling within the United 
States.

             Subtitle F--Criminal History Background Checks

SEC. 2141. SHORT TITLE.

    This subtitle may be cited as the ``Criminal History Access Means 
Protection of Infrastructures and Our Nation''.

SEC. 2142. CRIMINAL HISTORY INFORMATION CHECKS.

    (a) In General.--Section 534 of title 28, United States Code, is 
amended by adding at the end the following:
    ``(f)(1) Under rules prescribed by the Attorney General, the 
Attorney General shall establish and maintain a system for providing to 
an employer criminal history information that--
            ``(A) is in the possession of the Attorney General; and
            ``(B) is requested by an employer as part of an employee 
        criminal history investigation that has been authorized by the 
        State where the employee works or where the employer has their 
        principal place of business;
in order to ensure that a prospective employee is suitable for certain 
employment positions.
    ``(2) The Attorney General shall require that an employer seeking 
criminal history information of an employee request such information 
and submit fingerprints or other biometric identifiers as approved by 
the Attorney General to provide a positive and reliable identification 
of such prospective employee.
    ``(3) The Director of the Federal Bureau of Investigation may 
require an employer to pay a reasonable fee for such information.
    ``(4) Upon receipt of fingerprints or other biometric identifiers, 
the Attorney General shall conduct an Integrated Fingerprint 
Identification System of the Federal Bureau of Investigation (IAFIS) 
check and provide the results of such check to the requester.
    ``(5) As used in this subsection,
            ``(A) the term `criminal history information' and `criminal 
        history records' includes--
                    ``(i) an identifying description of the individual 
                to whom it pertains;
                    ``(ii) notations of arrests, detentions, 
                indictments, or other formal criminal charges 
                pertaining to such individual; and
                    ``(iii) any disposition to a notation revealed in 
                subparagraph (B), including acquittal, sentencing, 
                correctional supervision, or release.
            ``(B) the term `Integrated Automated Fingerprint 
        Identification System of the Federal Bureau of Investigation 
        (IAFIS)' means the national depository for fingerprint, 
        biometric, and criminal history information, through which 
        fingerprints are processed electronically.
    ``(6) Nothing in this subsection shall preclude the Attorney 
General from authorizing or requiring criminal history record checks on 
individuals employed or seeking employment in positions vital to the 
Nation's critical infrastructure or key resources as those terms are 
defined in section 1016(e) of Public Law 107-56 (42 U.S.C. 5195c(e)) 
and section 2(9) of the Homeland Security Act of 2002 (6 U.S.C. 
101(9)).''.
    (b) Report to Congress.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Attorney General shall report to 
        the appropriate committees of Congress regarding all statutory 
        requirements for criminal history record checks that are 
        required to be conducted by the Department of Justice or any of 
        its components.
            (2) Identification of information.--The Attorney General 
        shall identify the number of records requested, including the 
        type of information requested, usage of different terms and 
        definitions regarding criminal history information, and the 
        variation in fees charged for such information and who pays 
        such fees.
            (3) Recommendations.--The Attorney General shall make 
        recommendations for consolidating the existing procedures into 
        a unified procedure consistent with that provided in section 
        534(f) of title 28, United States Code, as amended by this 
        subtitle.

Subtitle G--Protection of United States Aviation System From Terrorist 
                                Attacks

SEC. 2171. PROVISION FOR THE USE OF BIOMETRIC OR OTHER TECHNOLOGY.

    (a) Use of Biometric Technology.--Section 44903(h) of title 49, 
United States Code, is amended--
            (1) in paragraph (4)(E) by striking ``may provide for'' and 
        inserting ``shall issue, not later than 120 days after the date 
        of enactment of paragraph (5), guidance for''; and
            (2) by adding at the end the following:
            ``(5) Use of biometric technology in airport access control 
        systems.--In issuing guidance under paragraph (4)(E), the 
        Assistant Secretary of Homeland Security (Transportation 
        Security Administration), in consultation with representatives 
        of the aviation industry, the biometrics industry, and the 
        National Institute of Standards and Technology, shall 
        establish, at a minimum--
                    ``(A) comprehensive technical and operational 
                system requirements and performance standards for the 
                use of biometrics in airport access control systems 
                (including airport perimeter access control systems) to 
                ensure that the biometric systems are effective, 
                reliable, and secure;
                    ``(B) a list of products and vendors that meet such 
                requirements and standards;
                    ``(C) procedures for implementing biometric 
                systems--
                            ``(i) to ensure that individuals do not use 
                        an assumed identity to enroll in a biometric 
                        system; and
                            ``(ii) to resolve failures to enroll, false 
                        matches, and false non-matches; and
                    ``(D) best practices for incorporating biometric 
                technology into airport access control systems in the 
                most effective manner, including a process to best 
                utilize existing airport access control systems, 
                facilities, and equipment and existing data networks 
                connecting airports.
            ``(6) Use of biometric technology for law enforcement 
        officer travel.--
                    ``(A) In general.--Not later than 120 days after 
                the date of enactment of this paragraph, the Assistant 
                Secretary shall--
                            ``(i) establish a law enforcement officer 
                        travel credential that incorporates biometrics 
                        and is uniform across all Federal, State, and 
                        local government law enforcement agencies;
                            ``(ii) establish a process by which the 
                        travel credential will be used to verify the 
                        identity of a Federal, State, or local 
                        government law enforcement officer seeking to 
                        carry a weapon on board an aircraft, without 
                        unnecessarily disclosing to the public that the 
                        individual is a law enforcement officer;
                            ``(iii) establish procedures--
                                    ``(I) to ensure that only Federal, 
                                State, and local government law 
                                enforcement officers are issued the 
                                travel credential;
                                    ``(II) to resolve failures to 
                                enroll, false matches, and false non-
                                matches relating to use of the travel 
                                credential; and
                                    ``(III) to invalidate any travel 
                                credential that is lost, stolen, or no 
                                longer authorized for use;
                            ``(iv) begin issuance of the travel 
                        credential to each Federal, State, and local 
                        government law enforcement officer authorized 
                        by the Assistant Secretary to carry a weapon on 
                        board an aircraft; and
                            ``(v) take such other actions with respect 
                        to the travel credential as the Secretary 
                        considers appropriate.
                    ``(B) Funding.--There are authorized to be 
                appropriated such sums as may be necessary to carry out 
                this paragraph.
            ``(7) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Biometric information.--The term `biometric 
                information' means the distinct physical or behavioral 
                characteristics that are used for identification, or 
                verification of the identity, of an individual.
                    ``(B) Biometrics.--The term `biometrics' means a 
                technology that enables the automated identification, 
                or verification of the identity, of an individual based 
                on biometric information.
                    ``(C) Failure to enroll.--The term `failure to 
                enroll' means the inability of an individual to enroll 
                in a biometric system due to an insufficiently 
                distinctive biometric sample, the lack of a body part 
                necessary to provide the biometric sample, a system 
                design that makes it difficult to provide consistent 
                biometric information, or other factors.
                    ``(D) False match.--The term `false match' means 
                the incorrect matching of one individual's biometric 
                information to another individual's biometric 
                information by a biometric system.
                    ``(E) False non-match.--The term `false non-match' 
                means the rejection of a valid identity by a biometric 
                system.
                    ``(F) Secure area of an airport.--The term `secure 
                area of an airport' means the sterile area and the 
                Secure Identification Display Area of an airport (as 
                such terms are defined in section 1540.5 of title 49, 
                Code of Federal Regulations, or any successor 
                regulation to such section).''.
    (b) Funding for Use of Biometric Technology in Airport Access 
Control Systems.--
            (1) Grant authority.--Section 44923(a)(4) of title 49, 
        United States Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by redesignating paragraph (4) as paragraph 
                (5); and
                    (C) by inserting after paragraph (3) the following:
            ``(4) for projects to implement biometric technologies in 
        accordance with guidance issued under section 44903(h)(4)(E); 
        and''.
            (2) Authorization of appropriations.--Section 44923(i)(1) 
        of such title is amended by striking ``$250,000,000 for each of 
        fiscal years 2004 through 2007'' and inserting ``$250,000,000 
        for fiscal year 2004, $345,000,000 for fiscal year 2005, and 
        $250,000,000 for each of fiscal years 2006 and 2007''.

SEC. 2172. TRANSPORTATION SECURITY STRATEGIC PLANNING.

    Section 44904 of title 49, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (e); and
            (2) by inserting after subsection (b) the following:
    ``(c) Transportation Security Strategic Planning.--
            ``(1) In general.--The Secretary of Homeland Security shall 
        prepare and update, as needed, a transportation sector specific 
        plan and transportation modal security plans in accordance with 
        this section.
            ``(2) Contents.--At a minimum, the modal security plan for 
        aviation prepared under paragraph (1) shall--
                    ``(A) set risk-based priorities for defending 
                aviation assets;
                    ``(B) select the most practical and cost-effective 
                methods for defending aviation assets;
                    ``(C) assign roles and missions to Federal, State, 
                regional, and local authorities and to stakeholders;
                    ``(D) establish a damage mitigation and recovery 
                plan for the aviation system in the event of a 
                terrorist attack; and
                    ``(E) include a threat matrix document that 
                outlines each threat to the United States civil 
                aviation system and the corresponding layers of 
                security in place to address such threat.
            ``(3) Reports.--Not later than 180 days after the date of 
        enactment of the subsection and annually thereafter, the 
        Secretary shall submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of the 
        Senate a report containing the plans prepared under paragraph 
        (1), including any updates to the plans. The report may be 
        submitted in a classified format.
    ``(d) Operational Criteria.--Not later than 90 days after the date 
of submission of the report under subsection (c)(3), the Assistant 
Secretary of Homeland Security (Transportation Security Administration) 
shall issue operational criteria to protect airport infrastructure and 
operations against the threats identified in the plans prepared under 
subsection (c)(1) and shall approve best practices guidelines for 
airport assets.''.

SEC. 2173. NEXT GENERATION AIRLINE PASSENGER PRESCREENING.

    (a) In General.--Section 44903(j)(2) of title 49, United States 
Code, is amended by adding at the end the following:
                    ``(C) Next generation airline passenger 
                prescreening.--
                            ``(i) Commencement of testing.--Not later 
                        than November 1, 2004, the Assistant Secretary 
                        of Homeland Security (Transportation Security 
                        Administration), or the designee of the 
                        Assistant Secretary, shall commence testing of 
                        a next generation passenger prescreening system 
                        that will allow the Department of Homeland 
                        Security to assume the performance of comparing 
                        passenger name records to the automatic 
                        selectee and no fly lists, utilizing all 
                        appropriate records in the consolidated and 
                        integrated terrorist watchlist maintained by 
                        the Federal Government.
                            ``(ii) Assumption of function.--Not later 
                        than 180 days after completion of testing under 
                        clause (i), the Assistant Secretary, or the 
                        designee of the Assistant Secretary, shall 
                        assume the performance of the passenger 
                        prescreening function of comparing passenger 
                        name records to the automatic selectee and no 
                        fly lists and utilize all appropriate records 
                        in the consolidated and integrated terrorist 
                        watchlist maintained by the Federal Government 
                        in performing that function.
                            ``(iii) Requirements.--In assuming 
                        performance of the function under clause (i), 
                        the Assistant Secretary shall--
                                    ``(I) establish a procedure to 
                                enable airline passengers, who are 
                                delayed or prohibited from boarding a 
                                flight because the next generation 
                                passenger prescreening system 
                                determined that they might pose a 
                                security threat, to appeal such 
                                determination and correct information 
                                contained in the system;
                                    ``(II) ensure that Federal 
                                Government databases that will be used 
                                to establish the identity of a 
                                passenger under the system will not 
                                produce a large number of false 
                                positives;
                                    ``(III) establish an internal 
                                oversight board to oversee and monitor 
                                the manner in which the system is being 
                                implemented;
                                    ``(IV) establish sufficient 
                                operational safeguards to reduce the 
                                opportunities for abuse;
                                    ``(V) implement substantial 
                                security measures to protect the system 
                                from unauthorized access;
                                    ``(VI) adopt policies establishing 
                                effective oversight of the use and 
                                operation of the system; and
                                    ``(VII) ensure that there are no 
                                specific privacy concerns with the 
                                technological architecture of the 
                                system.
                            ``(iv) Passenger name records.--Not later 
                        than 60 days after the completion of the 
                        testing of the next generation passenger 
                        prescreening system, the Assistant Secretary 
                        shall require air carriers to supply to the 
                        Assistant Secretary the passenger name records 
                        needed to begin implementing the next 
                        generation passenger prescreening system.
                    ``(D) Screening of employees against watchlist.--
                The Assistant Secretary of Homeland Security 
                (Transportation Security Administration), in 
                coordination with the Secretary of Transportation and 
                the Administrator of the Federal Aviation 
                Administration, shall ensure that individuals are 
                screened against all appropriate records in the 
                consolidated and integrated terrorist watchlist 
                maintained by the Federal Government before--
                            ``(i) being certificated by the Federal 
                        Aviation Administration;
                            ``(ii) being issued a credential for access 
                        to the secure area of an airport; or
                            ``(iii) being issued a credential for 
                        access to the air operations area (as defined 
                        in section 1540.5 of title 49, Code of Federal 
                        Regulations, or any successor regulation to 
                        such section) of an airport.
                    ``(E) Appeal procedures.--The Assistant Secretary 
                shall establish a timely and fair process for 
                individuals identified as a threat under subparagraph 
                (D) to appeal the determination and correct any 
                erroneous information.
                    ``(F) Definition.--In this paragraph, the term 
                `secure area of an airport' means the sterile area and 
                the Secure Identification Display Area of an airport 
                (as such terms are defined in section 1540.5 of title 
                49, Code of Federal Regulations, or any successor 
                regulation to such section).''.
    (b) GAO Report.--
            (1) In general.--Not later than 90 days after the date on 
        which the Assistant Secretary of Homeland Security 
        (Transportation Security Administration) assumes performance of 
        the passenger prescreening function under section 
        44903(j)(2)(C)(ii) of title 49, United States Code, the 
        Comptroller General shall submit to the appropriate 
        congressional committees a report on the assumption of such 
        function. The report may be submitted in a classified format.
            (2) Contents.--The report under paragraph (1) shall 
        address--
                    (A) whether a system exists in the next generation 
                passenger prescreening system whereby aviation 
                passengers, determined to pose a threat and either 
                delayed or prohibited from boarding their scheduled 
                flights by the Transportation Security Administration, 
                may appeal such a decision and correct erroneous 
                information;
                    (B) the sufficiency of identifying information 
                contained in passenger name records and any government 
                databases for ensuring that a large number of false 
                positives will not result under the next generation 
                passenger prescreening system in a significant number 
                of passengers being treated as a threat mistakenly or 
                in security resources being diverted;
                    (C) whether the Transportation Security 
                Administration stress tested the next generation 
                passenger prescreening system;
                    (D) whether an internal oversight board has been 
                established in the Department of Homeland Security to 
                monitor the next generation passenger prescreening 
                system;
                    (E) whether sufficient operational safeguards have 
                been established to prevent the opportunities for abuse 
                of the system;
                    (F) whether substantial security measures are in 
                place to protect the passenger prescreening database 
                from unauthorized access;
                    (G) whether policies have been adopted for the 
                effective oversight of the use and operation of the 
                system;
                    (H) whether specific privacy concerns still exist 
                with the system; and
                    (I) whether appropriate life cycle cost estimates 
                have been developed, and a benefit and cost analysis 
                has been performed, for the system.

SEC. 2174. DEPLOYMENT AND USE OF EXPLOSIVE DETECTION EQUIPMENT AT 
              AIRPORT SCREENING CHECKPOINTS.

    (a) Nonmetallic Weapons and Explosives.--In order to improve 
security, the Assistant Secretary of Homeland Security (Transportation 
Security Administration) shall give priority to developing, testing, 
improving, and deploying technology at screening checkpoints at 
airports that will detect nonmetallic weapons and explosives on the 
person of individuals, in their clothing, or in their carry-on baggage 
or personal property and shall ensure that the equipment alone, or as 
part of an integrated system, can detect under realistic operating 
conditions the types of nonmetallic weapons and explosives that 
terrorists would likely try to smuggle aboard an air carrier aircraft.
    (b) Strategic Plan for Deployment and Use of Explosive Detection 
Equipment at Airport Screening Checkpoints.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Assistant Secretary shall transmit 
        to the appropriate congressional committees a strategic plan to 
        promote the optimal utilization and deployment of explosive 
        detection systems at airports to screen individuals and their 
        carry-on baggage or personal property, including walk-through 
        explosive detection portals, document scanners, shoe scanners, 
        and any other explosive detection equipment for use at a 
        screening checkpoint. The plan may be transmitted in a 
        classified format.
            (2) Contents.--The strategic plan shall include 
        descriptions of the operational applications of explosive 
        detection equipment at airport screening checkpoints, a 
        deployment schedule and quantities of equipment needed to 
        implement the plan, and funding needs for implementation of the 
        plan, including a financing plan that provides for leveraging 
        non-Federal funding.

SEC. 2175. PILOT PROGRAM TO EVALUATE USE OF BLAST-RESISTANT CARGO AND 
              BAGGAGE CONTAINERS.

    (a) In General.--Beginning not later than 180 days after the date 
of enactment of this Act, the Assistant Secretary of Homeland Security 
(Transportation Security Administration) shall carry out a pilot 
program to evaluate the use of blast-resistant containers for cargo and 
baggage on passenger aircraft to minimize the potential effects of 
detonation of an explosive device.
    (b) Incentives for Participation in Pilot Program.--
            (1) In general.--As part of the pilot program, the 
        Assistant Secretary shall provide incentives to air carriers to 
        volunteer to test the use of blast-resistant containers for 
        cargo and baggage on passenger aircraft.
            (2) Applications.--To volunteer to participate in the 
        incentive program, an air carrier shall submit to the Assistant 
        Secretary an application that is in such form and contains such 
        information as the Assistant Secretary requires.
            (3) Types of assistance.--Assistance provided by the 
        Assistant Secretary to air carriers that volunteer to 
        participate in the pilot program shall include the use of 
        blast-resistant containers and financial assistance to cover 
        increased costs to the carriers associated with the use and 
        maintenance of the containers, including increased fuel costs.
    (c) Report.--Not later than one year after the date of enactment of 
this Act, the Assistant Secretary shall submit to appropriate 
congressional committees a report on the results of the pilot program.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,000,000. Such sums shall 
remain available until expended.

SEC. 2176. AIR CARGO SCREENING TECHNOLOGY.

    The Transportation Security Administration shall develop technology 
to better identify, track, and screen air cargo.

SEC. 2177. AIRPORT CHECKPOINT SCREENING EXPLOSIVE DETECTION.

    Section 44940 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(i) Checkpoint Screening Security Fund.--
            ``(1) Establishment.--There is established in the 
        Department of Homeland Security a fund to be known as the 
        `Checkpoint Screening Security Fund'.
            ``(2) Deposits.--In each of fiscal years 2005 and 2006, 
        after amounts are made available under section 44923(h), the 
        next $30,000,000 derived from fees received under subsection 
        (a)(1) shall be available to be deposited in the Fund.
            ``(3) Fees.--The Secretary of Homeland Security shall 
        impose the fee authorized by subsection (a)(1) so as to collect 
        at least $30,000,000 in each of fiscal years 2005 and 2006 for 
        deposit into the Fund.
            ``(4) Availability of amounts.--Amounts in the Fund shall 
        be available for the purchase, deployment, and installation of 
        equipment to improve the ability of security screening 
        personnel at screening checkpoints to detect explosives.''.

SEC. 2178. NEXT GENERATION SECURITY CHECKPOINT.

    (a) Pilot Program.--The Transportation Security Administration 
shall develop, not later than 120 days after the date of enactment of 
this Act, and conduct a pilot program to test, integrate, and deploy 
next generation security checkpoint screening technology at not less 
than 5 airports in the United States.
    (b) Human Factor Studies.-- The Administration shall conduct human 
factors studies to improve screener performance as part of the pilot 
program under subsection (a).

SEC. 2179. PENALTY FOR FAILURE TO SECURE COCKPIT DOOR.

    (a) Civil Penalty.--Section 46301(a) of title 49, United States 
Code, is amended by adding at the end the following:
            ``(6) Penalty for failure to secure flight deck door.--Any 
        person holding a part 119 certificate under part of title 14, 
        Code of Federal Regulations, is liable to the Government for a 
        civil penalty of not more than $25,000 for each violation, by 
        the pilot in command of an aircraft owned or operated by such 
        person, of any Federal regulation that requires that the flight 
        deck door be closed and locked when the aircraft is being 
        operated.''.
    (b) Technical Corrections.--
            (1) Compromise and setoff for false information.--Section 
        46302(b) of such title is amended by striking ``Secretary of 
        Transportation'' and inserting ``Secretary of the Department of 
        Homeland Security and, for a violation relating to section 
        46504, the Secretary of Transportation,''.
            (2) Carrying a weapon.--Section 46303 of such title is 
        amended--
                    (A) in subsection (b) by striking ``Secretary of 
                Transportation'' and inserting ``Secretary of Homeland 
                Security''; and
                    (B) in subsection (c)(2) by striking ``Under 
                Secretary of Transportation for Security'' and 
                inserting ``Secretary of Homeland Security''.
            (3) Administrative imposition of penalties.--Section 
        46301(d) of such title is amended--
                    (A) in the first sentence of paragraph (2) by 
                striking ``46302, 46303,'' and inserting ``46302 (for a 
                violation relating to section 46504),''; and
                    (B) in the second sentence of paragraph (2)--
                            (i) by striking ``Under Secretary of 
                        Transportation for Security'' and inserting 
                        ``Secretary of Homeland Security''; and
                            (ii) by striking ``44909)'' and inserting 
                        ``44909), 46302 (except for a violation 
                        relating to section 46504), 46303,'';
                    (C) in each of paragraphs (2), (3), and (4) by 
                striking ``Under Secretary or'' and inserting 
                ``Secretary of Homeland Security''; and
                    (D) in paragraph (4)(A) by moving clauses (i), 
                (ii), and (iii) 2 ems to the left.

SEC. 2180. FEDERAL AIR MARSHAL ANONYMITY.

    The Director of the Federal Air Marshal Service of the Department 
of Homeland Security shall continue to develop operational initiatives 
to protect the anonymity of Federal air marshals.

SEC. 2181. FEDERAL LAW ENFORCEMENT IN-FLIGHT COUNTERTERRORISM TRAINING.

    The Assistant Secretary for Immigration and Customs Enforcement and 
the Director of Federal Air Marshal Service of the Department of 
Homeland Security, in coordination with the Assistant Secretary of 
Homeland Security (Transportation Security Administration), shall make 
available appropriate in-flight counterterrorism procedures and tactics 
training to Federal law enforcement officers who fly while on duty.

SEC. 2182. FEDERAL FLIGHT DECK OFFICER WEAPON CARRIAGE PILOT PROGRAM.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Assistant Secretary of Homeland Security 
(Transportation Security Administration) shall implement a pilot 
program to allow pilots participating in the Federal flight deck 
officer program to transport their firearms on their persons. The 
Assistant Secretary may prescribe any training, equipment, or 
procedures that the Assistant Secretary determines necessary to ensure 
safety and maximize weapon retention.
    (b) Review.--Not later than 1 year after the date of initiation of 
the pilot program, the Assistant Secretary shall conduct a review of 
the safety record of the pilot program and transmit a report on the 
results of the review to the appropriate congressional committees.
    (c) Option.--If the Assistant Secretary as part of the review under 
subsection (b) determines that the safety level obtained under the 
pilot program is comparable to the safety level determined under 
existing methods of pilots carrying firearms on aircraft, the Assistant 
Secretary shall allow all pilots participating in the Federal flight 
deck officer program the option of carrying their firearm on their 
person subject to such requirements as the Assistant Secretary 
determines appropriate.

SEC. 2183. REGISTERED TRAVELER PROGRAM.

    The Transportation Security Administration shall expedite 
implementation of the registered traveler program.

SEC. 2184. WIRELESS COMMUNICATION.

    (a) Study.--The Transportation Security Administration, in 
consultation with the Federal Aviation Administration, shall conduct a 
study to determine the viability of providing devices or methods, 
including wireless methods, to enable a flight crew to discreetly 
notify the pilot in the case of a security breach or safety issue 
occurring in the cabin.
    (b) Matters to Be Considered.--In conducting the study, the 
Transportation Security Administration and the Federal Aviation 
Administration shall consider technology that is readily available and 
can be quickly integrated and customized for use aboard aircraft for 
flight crew communication.
    (c) Report.--Not later than 180 days after the date of enactment of 
this Act, the Transportation Security Administration shall submit to 
the appropriate congressional committees a report on the results of the 
study.

SEC. 2185. SECONDARY FLIGHT DECK BARRIERS.

    Not later than 6 months after the date of enactment of this Act, 
the Assistant Secretary of Homeland Security (Transportation Security 
Administration) shall transmit to the appropriate congressional 
committees a report on the costs and benefits associated with the use 
of secondary flight deck barriers and whether the use of such barriers 
should be mandated for all air carriers. The Assistant Secretary may 
transmit the report in a classified format.

SEC. 2186. EXTENSION.

    Section 48301(a) of title 49, United States Code, is amended by 
striking ``and 2005'' and inserting ``2005, and 2006''.

SEC. 2187. PERIMETER SECURITY.

    (a) Report.--Not later than 180 days after the date of enactment of 
this Act, the Assistant Secretary of Homeland Security (Transportation 
Security Administration), in consultation with airport operators and 
law enforcement authorities, shall develop and submit to the 
appropriate congressional committee a report on airport perimeter 
security. The report may be submitted in a classified format.
    (b) Contents.--The report shall include--
            (1) an examination of the feasibility of access control 
        technologies and procedures, including the use of biometrics 
        and other methods of positively identifying individuals prior 
        to entry into secure areas of airports, and provide best 
        practices for enhanced perimeter access control techniques; and
            (2) an assessment of the feasibility of physically 
        screening all individuals prior to entry into secure areas of 
        an airport and additional methods for strengthening the 
        background vetting process for all individuals credentialed to 
        gain access to secure areas of airports.

SEC. 2188. DEFINITIONS.

    In this title, the following definitions apply:
            (1) Appropriate congressional committee.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate.
            (2) Air carrier.--The term ``air carrier'' has the meaning 
        such term has under section 40102 of title 49, United States 
        Code.
            (3) Secure area of an airport.--The term ``secure area of 
        an airport'' means the sterile area and the Secure 
        Identification Display Area of an airport (as such terms are 
        defined in section 1540.5 of title 49, Code of Federal 
        Regulations, or any successor regulation to such section).

                       Subtitle H--Other Matters

SEC. 2191. GRAND JURY INFORMATION SHARING.

    (a) Rule Amendments.--Rule 6(e) of the Federal Rules of Criminal 
Procedure is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A)(ii), by striking ``or state 
                subdivision or of an Indian tribe'' and inserting ``, 
                state subdivision, Indian tribe, or foreign 
                government'';
                    (B) in subparagraph (D)--
                            (i) by inserting after the first sentence 
                        the following: ``An attorney for the government 
                        may also disclose any grand-jury matter 
                        involving a threat of actual or potential 
                        attack or other grave hostile acts of a foreign 
                        power or an agent of a foreign power, domestic 
                        or international sabotage, domestic or 
                        international terrorism, or clandestine 
                        intelligence gathering activities by an 
                        intelligence service or network of a foreign 
                        power or by an agent of a foreign power, within 
                        the United States or elsewhere, to any 
                        appropriate Federal, State, state subdivision, 
                        Indian tribal, or foreign government official 
                        for the purpose of preventing or responding to 
                        such a threat.''; and
                            (ii) in clause (i)--
                                    (I) by striking ``federal''; and
                                    (II) by adding at the end the 
                                following: ``Any State, state 
                                subdivision, Indian tribal, or foreign 
                                government official who receives 
                                information under Rule 6(e)(3)(D) may 
                                use the information only consistent 
                                with such guidelines as the Attorney 
                                General and the National Intellience 
                                Director shall jointly issue.''; and
                    (C) in subparagraph (E)--
                            (i) by redesignating clauses (iii) and (iv) 
                        as clauses (iv) and (v), respectively;
                            (ii) by inserting after clause (ii) the 
                        following:
                            ``(iii) at the request of the government, 
                        when sought by a foreign court or prosecutor 
                        for use in an official criminal 
                        investigation;''; and
                            (iii) in clause (iv), as redesignated--
                                    (I) by striking ``state or Indian 
                                tribal'' and inserting ``State, Indian 
                                tribal, or foreign''; and
                                    (II) by striking ``or Indian tribal 
                                official'' and inserting ``Indian 
                                tribal, or foreign government 
                                official''; and
            (2) in paragraph (7), by inserting ``, or of guidelines 
        jointly issued by the Attorney General and Director of Central 
        Intelligence pursuant to Rule 6,'' after ``Rule 6''.
    (b) Conforming Amendment.--Section 203(c) of Public Law 107-56 (18 
U.S.C. 2517 note) is amended by striking ``Rule 6(e)(3)(C)(i)(V) and 
(VI)'' and inserting ``Rule 6(e)(3)(D)''.

SEC. 2192. INTEROPERABLE LAW ENFORCEMENT AND INTELLIGENCE DATA SYSTEM.

    (a) Findings.--The Congress finds as follows:
            (1) The interoperable electronic data system know as the 
        ``Chimera system'', and required to be developed and 
        implemented by section 202(a)(2) of the Enhanced Border 
        Security and Visa Entry Reform Act of 2002 (8 U.S.C. 
        1722(a)(2)), has not in any way been implemented.
            (2) Little progress has been made since the enactment of 
        such Act with regard to establishing a process to connect 
        existing trusted systems operated independently by the 
        respective intelligence agencies.
            (3) It is advisable, therefore, to assign such 
        responsibility to the National Intelligence Director.
            (4) The National Intelligence Director should, pursuant to 
        the amendments made by subsection (c), begin systems planning 
        immediately upon assuming office to deliver an interim system 
        not later than 1 year after the date of the enactment of this 
        Act, and to deliver the fully functional Chimera system not 
        later than September 11, 2007.
            (5) Both the interim system, and the fully functional 
        Chimera system, should be designed so that intelligence 
        officers, Federal law enforcement agencies (as defined in 
        section 2 of such Act (8 U.S.C. 1701)), operational counter-
        terror support center personnel, consular officers, and 
        Department of Homeland Security enforcement officers have 
        access to them.
    (b) Purposes.--The purposes of this section are as follows:
            (1) To provide the National Intelligence Director with the 
        necessary authority and resources to establish both an interim 
        data system and, subsequently, a fully functional Chimera 
        system, to collect and share intelligence and operational 
        information with the intelligence community (as defined in 
        section 3(4) of the National Security Act of 1947 (50 U.S.C. 
        401a(4)).
            (2) To require the National Intelligence Director to 
        establish a state-of-the-art Chimera system with both biometric 
        identification and linguistic capabilities satisfying the best 
        technology standards.
            (3) To ensure that the National Intelligence Center will 
        have a fully functional capability, not later than September 
        11, 2007, for interoperable data and intelligence exchange with 
        the agencies of the intelligence community (as so defined).
    (c) Amendments.--
            (1) In general.--Title II of the Enhanced Border Security 
        and Visa Entry Reform Act of 2002 (8 U.S.C. 1721 et seq.) is 
        amended--
                    (A) in section 202(a)--
                            (i) by amending paragraphs (1) and (2) to 
                        read as follows:
            ``(1) Interim interoperable intelligence data exchange 
        system.--Not later than 1 year after assuming office, the 
        National Intelligence Director shall establish an interim 
        interoperable intelligence data exchange system that will 
        connect the data systems operated independently by the entities 
        in the intelligence community and by the National 
        counterterrorism Center, so as to permit automated data 
        exchange among all of these entities. Immediately upon assuming 
        office, the National Intelligence Director shall begin the 
        plans necessary to establish such interim system.
            ``(2) Chimera system.--Not later than September 11, 2007, 
        the National Intelligence Director shall establish a fully 
        functional interoperable law enforcement and intelligence 
        electronic data system within the National counterterrorism 
        Center to provide immediate access to information in databases 
        of Federal law enforcement agencies and the intelligence 
        community that is necessary to identify terrorists, and 
        organizations and individuals that support terrorism. The 
        system established under this paragraph shall referred to as 
        the `Chimera system'. '';
                            (ii) in paragraph (3)--
                                    (I) by striking ``President'' and 
                                inserting ``National Intelligence 
                                Director''; and
                                    (II) by striking ``the data 
                                system'' and inserting ``the interim 
                                system described in paragraph (1) and 
                                the Chimera system described in 
                                paragraph (2)'';
                            (iii) in paragraph (4)(A), by striking 
                        ``The data system'' and all that follows 
                        through ``(2),'' and inserting ``The interim 
                        system described in paragraph (1) and the 
                        Chimera system described in paragraph (2)'';
                            (iv) in paragraph (5)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking ``data 
                                system under this subsection'' and 
                                inserting ``Chimera system described in 
                                paragraph (2)'';
                                    (II) in subparagraph (B), by 
                                striking ``and'' at the end;
                                    (III) in subparagraph (C), by 
                                striking the period at the end and 
                                inserting ``; and''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(D) to any Federal law enforcement or 
                intelligence officer authorized to assist in the 
                investigation, identification, or prosecution of 
                terrorists, alleged terrorists, individuals supporting 
                terrorist activities, and individuals alleged to 
                support terrorist activities. ''; and
                            (v) in paragraph (6)--
                                    (I) by striking ``President'' and 
                                inserting ``National Intelligence 
                                Director'';
                                    (II) by striking ``the data 
                                system'' and all that follows through 
                                ``(2),'' and inserting ``the interim 
                                system described in paragraph (1) and 
                                the Chimera system described in 
                                paragraph (2)'';
                    (B) in section 202(b)--
                            (i) in paragraph (1), by striking ``The 
                        interoperable'' and all that follows through 
                        ``subsection (a)'' and inserting ``the Chimera 
                        system described in subsection (a)(2)'';
                            (ii) in paragraph (2), by striking 
                        ``interoperable electronic database'' and 
                        inserting ``Chimera system described in 
                        subsection (a)(2)''; and
                            (iii) by amending paragraph (4) to read as 
                        follows:
            ``(4) Interim reports.--Not later than 6 months after 
        assuming office, the National Intelligence Director shall 
        submit a report to the appropriate committees of Congress on 
        the progress in implementing each requirement of this 
        section.'';
                    (C) in section 204--
                            (i) by striking ``Attorney General'' each 
                        place such term appears and inserting 
                        ``National Intelligence Director'';
                            (ii) in subsection (d)(1), by striking 
                        ``Attorney General's'' and inserting ``National 
                        Intelligence Director's''; and
                    (D) by striking section 203 and redesignating 
                section 204 as section 203.
            (2) Clerical amendment.--The table of contents for the 
        Enhanced Border Security and Visa Entry Reform Act of 2002 (8 
        U.S.C. 1701 et seq.) is amended--
                    (A) by striking the item relating to section 203; 
                and
                    (B) by redesignating the item relating to section 
                204 as relating to section 203.

SEC. 2193. IMPROVEMENT OF INTELLIGENCE CAPABILITIES OF THE FEDERAL 
              BUREAU OF INVESTIGATION.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States and to meet the 
intelligence needs of the United States, Congress makes the following 
findings:
            (1) The Federal Bureau of Investigation has made 
        significant progress in improving its intelligence 
        capabilities.
            (2) The Federal Bureau of Investigation must further 
        enhance and fully institutionalize its ability to prevent, 
        preempt, and disrupt terrorist threats to our homeland, our 
        people, our allies, and our interests.
            (3) The Federal Bureau of Investigation must collect, 
        process, share, and disseminate, to the greatest extent 
        permitted by applicable law, to the President, the Vice 
        President, and other officials in the Executive Branch, all 
        terrorism information and other information necessary to 
        safeguard our people and advance our national and homeland 
        security interests.
            (4) The Federal Bureau of Investigation must move towards 
        full and seamless coordination and cooperation with all other 
        elements of the Intelligence Community, including full 
        participation in, and support to, the National counterterrorism 
        Center.
            (5) The Federal Bureau of Investigation must strengthen its 
        pivotal role in coordination and cooperation with Federal, 
        State, tribal, and local law enforcement agencies to ensure the 
        necessary sharing of information for counterterrorism and 
        criminal law enforcement purposes.
            (6) The Federal Bureau of Investigation must perform its 
        vital intelligence functions in a manner consistent with both 
        with national intelligence priorities and respect for privacy 
        and other civil liberties under the Constitution and laws of 
        the United States.
    (b) Improvement of Intelligence Capabilities.--The Director of the 
Federal Bureau of Investigation shall establish a comprehensive 
intelligence program for--
            (1) intelligence analysis, including recruitment and hiring 
        of analysts, analyst training, priorities and status for 
        analysis, and analysis performance measures;
            (2) intelligence production, including product standards, 
        production priorities, information sharing and dissemination, 
        and customer satisfaction measures;
            (3) production of intelligence that is responsive to 
        national intelligence requirements and priorities, including 
        measures of the degree to which each FBI headquarters and field 
        component is collecting and providing such intelligence;
            (4) intelligence sources, including source validation, new 
        source development, and performance measures;
            (5) field intelligence operations, including staffing and 
        infrastructure, management processes, priorities, and 
        performance measures;
            (6) full and seamless coordination and cooperation with the 
        other components of the Intelligence Community, consistent with 
        their responsibilities; and
            (7) sharing of FBI intelligence and information across 
        Federal, state, and local governments, with the private sector, 
        and with foreign partners as provided by law or by guidelines 
        of the Attorney General.
    (c) Intelligence Directorate.--The Director of the Federal Bureau 
of Investigation shall establish an Intelligence Directorate within the 
FBI. The Intelligence Directorate shall have the authority to manage 
and direct the intelligence operations of all FBI headquarters and 
field components. The Intelligence Directorate shall have 
responsibility for all components and functions of the FBI necessary 
for--
            (1) oversight of FBI field intelligence operations;
            (2) FBI human source development and management;
            (3) FBI collection against nationally-determined 
        intelligence requirements;
            (4) language services;
            (5) strategic analysis;
            (6) intelligence program and budget management; and
            (7) the intelligence workforce.
    (d) National Security Workforce.--The Director of the Federal 
Bureau of Investigation shall establish a specialized, integrated 
intelligence cadre composed of Special Agents, analysts, linguists, and 
surveillance specialists in a manner which creates and sustains within 
the FBI a workforce with substantial expertise in, and commitment to, 
the intelligence mission of the FBI. The Director shall--
            (1) ensure that these FBI employees may make their career, 
        including promotion to the most senior positions in the FBI, 
        within this career track;
            (2) establish intelligence cadre requirements for--
                    (A) training;
                    (B) career development and certification;
                    (C) recruitment, hiring, and selection;
                    (D) integrating field intelligence teams; and
                    (E) senior level field management;
            (3) establish intelligence officer certification 
        requirements, including requirements for training courses and 
        assignments to other intelligence, national security, or 
        homeland security components of the Executive branch, in order 
        to advance to senior operational management positions in the 
        FBI;
            (4) ensure that the FBI's recruitment and training program 
        enhances its ability to attract individuals with educational 
        and professional backgrounds in intelligence, international 
        relations, language, technology, and other skills relevant to 
        the intelligence mission of the FBI;
            (5) ensure that all Special Agents and analysts employed by 
        the FBI after the date of the enactment of this Act shall 
        receive basic training in both criminal justice matters and 
        intelligence matters;
            (6) ensure that all Special Agents employed by the FBI 
        after the date of the enactment of this Act, to the maximum 
        extent practicable, be given an opportunity to undergo, during 
        their early service with the FBI, meaningful assignments in 
        criminal justice matters and in intelligence matters;
            (7) ensure that, to the maximum extent practical, Special 
        Agents who specialize in intelligence are afforded the 
        opportunity to work on intelligence matters over the remainder 
        of their career with the FBI; and
            (8) ensure that, to the maximum extent practical, analysts 
        are afforded FBI training and career opportunities commensurate 
        with the training and career opportunities afforded analysts in 
        other elements of the intelligence community.
    (e) Field Office Matters.--The Director of the Federal Bureau of 
Investigation shall take appropriate actions to ensure the integration 
of analysis, Special Agents, linguists, and surveillance personnel in 
FBI field intelligence components and to provide effective leadership 
and infrastructure to support FBI field intelligence components. The 
Director shall--
            (1) ensure that each FBI field office has an official at 
        the level of Assistant Special Agent in Charge or higher with 
        responsibility for the FBI field intelligence component; and
            (2) to the extent practicable, provide for such expansion 
        of special compartmented information facilities in FBI field 
        offices as is necessary to ensure the discharge by the field 
        intelligence components of the national security and criminal 
        intelligence mission of the FBI.
    (f) Budget Matters.--The Director of the Federal Bureau of 
Investigation shall, in consultation with the Director of the Office of 
Management and Budget, modify the budget structure of the FBI in order 
to organize the budget according to its four main programs as follows:
            (1) Intelligence.
            (2) counterterrorism and counterintelligence.
            (3) Criminal enterprise/Federal crimes.
            (4) Criminal justice services.
    (g) Reports.--
            (1)(A) Not later than 180 days after the date of the 
        enactment of this Act, and every twelve months thereafter, the 
        Director of the Federal Bureau of Investigation shall submit to 
        Congress a report on the progress made as of the date of such 
        report in carrying out the requirements of this section.
            (B) The Director shall include in the first report required 
        by subparagraph (A) an estimate of the resources required to 
        complete the expansion of special compartmented information 
        facilities to carry out the intelligence mission of FBI field 
        intelligence components.
            (2) In each annual report required by paragraph (1)(A) the 
        director shall include--
                    (A) a report on the progress made by each FBI field 
                office during the period covered by such review in 
                addressing FBI and national intelligence priorities;
                    (B) a report assessing the qualifications, status, 
                and roles of analysts at FBI headquarters and in FBI 
                field offices; and
                    (C) a report on the progress of the FBI in 
                implementing information-sharing principles.
            (3) A report required by this subsection shall be 
        submitted--
                    (A) to each committee of Congress that has 
                jurisdiction over the subject matter of such report; 
                and
                    (B) in unclassified form, but may include a 
                classified annex.

            TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

        Subtitle A--Immigration Reform in the National Interest

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 3001. ELIMINATING THE ``WESTERN HEMISPHERE'' EXCEPTION FOR 
              CITIZENS.

    (a) In General.--
            (1) In general.--Section 215(b) of the Immigration and 
        Nationality Act (8 U.S.C. 1185(b)) is amended to read as 
        follows:
    ``(b)(1) Except as otherwise provided in this subsection, it shall 
be unlawful for any citizen of the United States to depart from or 
enter, or attempt to depart from or enter, the United States unless the 
citizen bears a valid United States passport.
    ``(2) Subject to such limitations and exceptions as the President 
may authorize and prescribe, the President may waive the application of 
paragraph (1) in the case of a citizen departing the United States to, 
or entering the United States from, foreign contiguous territory.
    ``(3) The President, if waiving the application of paragraph (1) 
pursuant to paragraph (2), shall require citizens departing the United 
States to, or entering the United States from, foreign contiguous 
territory to bear a document (or combination of documents) designated 
by the Secretary of Homeland Security under paragraph (4).
    ``(4) The Secretary of Homeland Security--
            ``(A) shall designate documents that are sufficient to 
        denote identity and citizenship in the United States such that 
        they may be used, either individually or in conjunction with 
        another document, to establish that the bearer is a citizen or 
        national of the United States for purposes of lawfully 
        departing from or entering the United States; and
            ``(B) shall publish a list of those documents in the 
        Federal Register.
    ``(5) A document may not be designated under paragraph (4) (whether 
alone or in combination with other documents) unless the Secretary of 
Homeland Security determines that the document--
            ``(A) may be relied upon for the purposes of this 
        subsection; and
            ``(B) may not be issued to an alien unlawfully present in 
        the United States.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 2006.
    (b) Interim Rule.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security--
                    (A) shall designate documents that are sufficient 
                to denote identity and citizenship in the United States 
                such that they may be used, either individually or in 
                conjunction with another document, to establish that 
                the bearer is a citizen or national of the United 
                States for purposes of lawfully departing from or 
                entering the United States; and
                    (B) shall publish a list of those documents in the 
                Federal Register.
            (2) Limitation on presidential authority.--Beginning on the 
        date that is 90 days after the publication described in 
        paragraph (1)(B), the President, notwithstanding section 215(b) 
        of the Immigration and Nationality Act (8 U.S.C. 1185(b)), may 
        not exercise the President's authority under such section so as 
        to permit any citizen of the United States to depart from or 
        enter, or attempt to depart from or enter, the United States 
        from any country other than foreign contiguous territory, 
        unless the citizen bears a document (or combination of 
        documents) designated under paragraph (1)(A).
            (3) Criteria for designation.--A document may not be 
        designated under paragraph (1)(A) (whether alone or in 
        combination with other documents) unless the Secretary of 
        Homeland Security determines that the document--
                    (A) may be relied upon for the purposes of this 
                subsection; and
                    (B) may not be issued to an alien unlawfully 
                present in the United States.
            (4) Effective date.--This subsection shall take effect on 
        the date of the enactment of this Act and shall cease to be 
        effective on September 30, 2006.

SEC. 3002. MODIFICATION OF WAIVER AUTHORITY WITH RESPECT TO 
              DOCUMENTATION REQUIREMENTS FOR NATIONALS OF FOREIGN 
              CONTIGUOUS TERRITORIES AND ADJACENT ISLANDS.

    (a) In General.--Section 212(d)(4) of the Immigration and 
Nationality Act (8 U.S.C. 1182(d)(4)) is amended--
            (1) by striking ``Attorney General'' and inserting 
        ``Secretary of Homeland Security'';
            (2) by striking ``on the basis of reciprocity'' and all 
        that follows through ``or (C)''; and
            (3) by adding at the end the following:
        ``Either or both of the requirements of such paragraph may also 
        be waived by the Secretary of Homeland Security and the 
        Secretary of State, acting jointly and on the basis of 
        reciprocity, with respect to nationals of foreign contiguous 
        territory or of adjacent islands, but only if such nationals 
        are required, in order to be admitted into the United States, 
        to be in possession of identification deemed by the Secretary 
        of Homeland Security to be secure.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on December 31, 2006.

SEC. 3003. INCREASE IN FULL-TIME BORDER PATROL AGENTS.

    The Secretary of Homeland Security, in each of fiscal years 2006 
through 2010, shall increase by not less than 2,000 the number of 
positions for full-time active-duty border patrol agents within the 
Department of Homeland Security above the number of such positions for 
which funds were allotted for the preceding fiscal year.

SEC. 3004. INCREASE IN FULL-TIME IMMIGRATION AND CUSTOMS ENFORCEMENT 
              INVESTIGATORS.

    The Secretary of Homeland Security, in each of fiscal years 2006 
through 2010, shall increase by not less than 800 the number of 
positions for full-time active-duty investigators within the Department 
of Homeland Security investigating violations of immigration laws (as 
defined in section 101(a)(17) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(17)) above the number of such positions for which funds 
were allotted for the preceding fiscal year. At least half of these 
additional investigators shall be designated to investigate potential 
violations of section 274A of the Immigration and Nationality Act (8 
U.S.C 1324a). Each State shall be allotted at least 3 of these 
additional investigators.

SEC. 3005. ALIEN IDENTIFICATION STANDARDS.

    Section 211 of the Immigration and Nationality Act (8 U.S.C. 1181) 
is amended by adding at the end the following:
    ``(d) For purposes of establishing identity to any Federal 
employee, an alien present in the United States may present any 
document issued by the Attorney General or the Secretary of Homeland 
Security under the authority of one of the immigration laws (as defined 
in section 101(a)(17)), or an unexpired lawfully issued foreign 
passport. Subject to the limitations and exceptions in immigration laws 
(as defined in section 101(a)(17) of the Immigration and Nationality 
Act (8 U.S.C. 1101(a)(17)), no other document may be presented for 
those purposes.''.

SEC. 3006. EXPEDITED REMOVAL.

    Section 235(b)(1)(A) of the Immigration and Nationality Act (8 
U.S.C. 1225(b)(1)(A)) is amended by striking clauses (i) through (iii) 
and inserting the following:
                            ``(i) In general.--If an immigration 
                        officer determines that an alien (other than an 
                        alien described in subparagraph (F)) who is 
                        arriving in the United States, or who has not 
                        been admitted or paroled into the United States 
                        and has not been physically present in the 
                        United States continuously for the 5-year 
                        period immediately prior to the date of the 
                        determination of inadmissibility under this 
                        paragraph, is inadmissible under section 
                        212(a)(6)(C) or 212(a)(7), the officer shall 
                        order the alien removed from the United States 
                        without further hearing or review, unless--
                                    ``(I) the alien has been charged 
                                with a crime, is in criminal 
                                proceedings, or is serving a criminal 
                                sentence; or
                                    ``(II) the alien indicates an 
                                intention to apply for asylum under 
                                section 208 or a fear of persecution 
                                and the officer determines that the 
                                alien has been physically present in 
                                the United States for less than 1 year.
                            ``(ii) Claims for asylum.--If an 
                        immigration officer determines that an alien 
                        (other than an alien described in subparagraph 
                        (F)) who is arriving in the United States, or 
                        who has not been admitted or paroled into the 
                        United States and has not been physically 
                        present in the United States continuously for 
                        the 5-year period immediately prior to the date 
                        of the determination of inadmissibility under 
                        this paragraph, is inadmissible under section 
                        212(a)(6)(C) or 212(a)(7), and the alien 
                        indicates either an intention to apply for 
                        asylum under section 208 or a fear of 
                        persecution, the officer shall refer the alien 
                        for an interview by an asylum officer under 
                        subparagraph (B) if the officer determines that 
                        the alien has been physically present in the 
                        United States for less than 1 year.''.

SEC. 3007. PREVENTING TERRORISTS FROM OBTAINING ASYLUM.

    (a) Conditions for Granting Asylum.--Section 208(b) of the 
Immigration and Nationality Act (8 U.S.C. 1158(b)) is amended--
            (1) in paragraph (1), by striking ``The Attorney General'' 
        and inserting the following:
                    ``(A) Eligibility.--The Secretary of Homeland 
                Security or the Attorney General''; and
            (2) by adding at the end the following:
                    ``(B) Burden of proof.--The burden of proof is on 
                the applicant to establish that the applicant is a 
                refugee within the meaning of section 101(a)(42)(A). To 
                establish that the applicant is a refugee within the 
                meaning of this Act, the applicant must establish that 
                race, religion, nationality, membership in a particular 
                social group, or political opinion was or will be the 
                central motive for persecuting the applicant. The 
                testimony of the applicant may be sufficient to sustain 
                such burden without corroboration, but only if it is 
                credible, is persuasive, and refers to specific facts 
                that demonstrate that the applicant is a refugee. Where 
                the trier of fact finds that it is reasonable to expect 
                corroborating evidence for certain alleged facts 
                pertaining to the specifics of the applicant's claim, 
                such evidence must be provided unless a reasonable 
                explanation is given as to why such information is not 
                provided. The credibility determination of the trier of 
                fact may be based, in addition to other factors, on the 
                demeanor, candor, or responsiveness of the applicant or 
                witness, the consistency between the applicant's or 
                witness's written and oral statements, whether or not 
                under oath, made at any time to any officer, agent, or 
                employee of the United States, the internal consistency 
                of each such statement, the consistency of such 
                statements with the country conditions in the country 
                from which the applicant claims asylum (as presented by 
                the Department of State) and any inaccuracies or 
                falsehoods in such statements. These factors may be 
                considered individually or cumulatively.''.
    (b) Standard of Review for Orders of Removal.--Section 242(b)(4) of 
the Immigration and Nationality Act (8 U.S.C. 1252(b)(4)) is amended by 
adding after subparagraph (D) the following flush language: ``No court 
shall reverse a determination made by an adjudicator with respect to 
the availability of corroborating evidence as described in section 
208(b)(1)(B), unless the court finds that a reasonable adjudicator is 
compelled to conclude that such corroborating evidence is 
unavailable.''.
    (c) Effective Date.--The amendment made by subsection (b) shall 
take effect upon the date of enactment of this Act and shall apply to 
cases in which the final administrative removal order was issued 
before, on, or after the date of enactment of this Act.

SEC. 3008. REVOCATION OF VISAS AND OTHER TRAVEL DOCUMENTATION.

    (a) Limitation on Review.--Section 221(i) of the Immigration and 
Nationality Act (8 U.S.C. 1201(i)) is amended by adding at the end the 
following: ``There shall be no means of administrative or judicial 
review of a revocation under this subsection, and no court or other 
person otherwise shall have jurisdiction to consider any claim 
challenging the validity of such a revocation.''.
    (b) Classes of Deportable Aliens.--Section 237(a)(1)(B) of the 
Immigration and Nationality Act (8 U.S.C. 1227(a)(1)(B)) is amended by 
striking ``United States is'' and inserting the following: ``United 
States, or whose nonimmigrant visa (or other documentation authorizing 
admission into the United States as a nonimmigrant) has been revoked 
under section 221(i), is''.
    (c) Revocation of Petitions.--Section 205 of the Immigration and 
Nationality Act (8 U.S.C. 1155) is amended--
            (1) by striking ``Attorney General'' and inserting 
        ``Secretary of Homeland Security''; and
            (2) by striking the final two sentences.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to 
revocations under sections 205 and 221(i) of the Immigration and 
Nationality Act made before, on, or after such date.

SEC. 3009. JUDICIAL REVIEW OF ORDERS OF REMOVAL.

    (a) In General.--Section 242 of the Immigration and Nationality Act 
(8 U.S.C. 1252) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) in subparagraphs (A), (B), and (C), by 
                        inserting ``(statutory and nonstatutory), 
                        including section 2241 of title 28, United 
                        States Code, or any other habeas corpus 
                        provision, and sections 1361 and 1651 of title 
                        28, United States Code'' after 
                        ``Notwithstanding any other provision of law''; 
                        and
                            (ii) by adding at the end the following:
                    ``(D) Judicial review of certain legal claims.--
                Nothing in this paragraph shall be construed as 
                precluding consideration by the circuit courts of 
                appeals of constitutional claims or pure questions of 
                law raised upon petitions for review filed in 
                accordance with this section. Notwithstanding any other 
                provision of law (statutory and nonstatutory), 
                including section 2241 of title 28, United States Code, 
                or, except as provided in subsection (e), any other 
                habeas corpus provision, and sections 1361 and 1651 of 
                title 28, United States Code, such petitions for review 
                shall be the sole and exclusive means of raising any 
                and all claims with respect to orders of removal 
                entered or issued under any provision of this Act.''; 
                and
                    (B) by adding at the end the following:
            ``(4) Claims under the united nations convention.--
        Notwithstanding any other provision of law (statutory and 
        nonstatutory), including section 2241 of title 28, United 
        States Code, or any other habeas corpus provision, and sections 
        1361 and 1651 of title 28, United States Code, a petition for 
        review by the circuit courts of appeals filed in accordance 
        with this section is the sole and exclusive means of judicial 
        review of claims arising under the United Nations Convention 
        Against Torture and Other Forms of Cruel, Inhuman, or Degrading 
        Treatment or Punishment.
            ``(5) Exclusive means of review.--The judicial review 
        specified in this subsection shall be the sole and exclusive 
        means for review by any court of an order of removal entered or 
        issued under any provision of this Act. For purposes of this 
        title, in every provision that limits or eliminates judicial 
        review or jurisdiction to review, the terms `judicial review' 
        and `jurisdiction to review' include habeas corpus review 
        pursuant to section 2241 of title 28, United States Code, or 
        any other habeas corpus provision, sections 1361 and 1651 of 
        title 28, United States Code, and review pursuant to any other 
        provision of law.'';
            (2) in subsection (b)--
                    (A) in paragraph (3)(B), by inserting ``pursuant to 
                subsection (f)'' after ``unless''; and
                    (B) in paragraph (9), by adding at the end the 
                following: ``Except as otherwise provided in this 
                subsection, no court shall have jurisdiction, by habeas 
                corpus under section 2241 of title 28, United States 
                Code, or any other habeas corpus provision, by section 
                1361 or 1651 of title 28, United States Code, or by any 
                other provision of law (statutory or nonstatutory), to 
                hear any cause or claim subject to these consolidation 
                provisions.'';
            (3) in subsection (f)(2), by inserting ``or stay, by 
        temporary or permanent order, including stays pending judicial 
        review,'' after ``no court shall enjoin''; and
            (4) in subsection (g), by inserting ``(statutory and 
        nonstatutory), including section 2241 of title 28, United 
        States Code, or any other habeas corpus provision, and sections 
        1361 and 1651 of title 28, United States Code'' after 
        ``notwithstanding any other provision of law''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect upon the date of enactment of this Act and shall apply to 
cases in which the final administrative removal order was issued 
before, on, or after the date of enactment of this Act.

    CHAPTER 2--DEPORTATION OF TERRORISTS AND SUPPORTERS OF TERRORISM

SEC. 3031. EXPANDED INAPPLICABILITY OF RESTRICTION ON REMOVAL.

    (a) In General.--Section 241(b)(3)(B) (8 U.S.C. 1231(b)(3)(B)) is 
amended--
            (1) in the matter preceding clause (i), by striking 
        ``section 237(a)(4)(D)'' and inserting ``paragraph (4)(B) or 
        (4)(D) of section 237(a)''; and
            (2) in clause (iii), by striking ``or'';
            (3) in clause (iv), by striking the period and inserting 
        ``; or'' ;
            (4) by inserting after clause (iv) and following:
                            ``(v) the alien is described in subclause 
                        (I), (II), (III), (IV), or (VI) of section 
                        212(a)(3)(B)(i) or section 237(a)(4)(B), 
                        unless, in the case only of an alien described 
                        in subclause (IV) of section 212(a)(3)(B)(i), 
                        the Secretary of Homeland Security determines, 
                        in the Secretary's discretion, that there are 
                        not reasonable grounds for regarding the alien 
                        as a danger to the security of the United 
                        States.''; and
            (5) by striking the last sentence.
    (b) Exceptions.--Section 208(b)(2)(A)(v) of the Immigration and 
Nationality Act (8 U.S.C. 1158(b)(2)(A)(v)) is amended--
            (1) by striking ``inadmissible under'' each place such term 
        appears and inserting ``described in''; and
            (2) by striking ``removable under''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to--
            (1) removal proceedings instituted before, on, or after the 
        date of the enactment of this Act; and
            (2) acts and conditions constituting a ground for 
        inadmissibility or removal occurring or existing before, on, or 
        after such date.

SEC. 3032. EXCEPTION TO RESTRICTION ON REMOVAL FOR TERRORISTS AND 
              CRIMINALS.

    (a) Regulations.--
            (1) Revision deadline.--Not later than 120 days after the 
        date of the enactment of this Act, the Secretary of Homeland 
        Security shall revise the regulations prescribed by the 
        Secretary to implement the United Nations Convention Against 
        Torture and Other Forms of Cruel, Inhuman or Degrading 
        Treatment or Punishment, done at New York on December 10, 1984.
            (2) Exclusion of certain aliens.--The revision--
                    (A) shall exclude from the protection of such 
                regulations aliens described in section 241(b)(3)(B) of 
                the Immigration and Nationality Act (8 U.S.C. 
                1231(b)(3)(B)) (as amended by this title), including 
                rendering such aliens ineligible for withholding or 
                deferral of removal under the Convention; and
                    (B) shall ensure that the revised regulations 
                operate so as to--
                            (i) allow for the reopening of 
                        determinations made under the regulations 
                        before the effective date of the revision; and
                            (ii) apply to acts and conditions 
                        constituting a ground for ineligibility for the 
                        protection of such regulations, as revised, 
                        regardless of when such acts or conditions 
                        occurred.
            (3) Burden of proof.--The revision shall also ensure that 
        the burden of proof is on the applicant for withholding or 
        deferral of removal under the Convention to establish by clear 
        and convincing evidence that he or she would be tortured if 
        removed to the proposed country of removal.
    (b) Judicial Review.--Notwithstanding any other provision of law, 
no court shall have jurisdiction to review the regulations adopted to 
implement this section, and nothing in this section shall be construed 
as providing any court jurisdiction to consider or review claims raised 
under the Convention or this section, except as part of the review of a 
final order of removal pursuant to section 242 of the Immigration and 
Nationality Act (8 U.S.C. 1252).

SEC. 3033. ADDITIONAL REMOVAL AUTHORITIES.

    (a) In General.--Section 241(b) of the Immigration and Nationality 
Act (8 U.S.C. 1231(b)) is amended--
            (1) in paragraph (1)--
                    (A) in each of subparagraphs (A) and (B), by 
                striking the period at the end and inserting ``unless, 
                in the opinion of the Secretary of Homeland Security, 
                removing the alien to such country would be prejudicial 
                to the United States.''; and
                    (B) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Alternative countries.--If the alien is not 
                removed to a country designated in subparagraph (A) or 
                (B), the Secretary of Homeland Security shall remove 
                the alien to--
                            ``(i) the country of which the alien is a 
                        citizen, subject, or national, where the alien 
                        was born, or where the alien has a residence, 
                        unless the country physically prevents the 
                        alien from entering the country upon the 
                        alien's removal there; or
                            ``(ii) any country whose government will 
                        accept the alien into that country.''; and
            (2) in paragraph (2)--
                    (A) by striking ``Attorney General'' each place 
                such term appears and inserting ``Secretary of Homeland 
                Security'';
                    (B) by amending subparagraph (D) to read as 
                follows:
                    ``(D) Alternative countries.--If the alien is not 
                removed to a country designated under subparagraph 
                (A)(i), the Secretary of Homeland Security shall remove 
                the alien to a country of which the alien is a subject, 
                national, or citizen, or where the alien has a 
                residence, unless--
                            ``(i) such country physically prevents the 
                        alien from entering the country upon the 
                        alien's removal there; or
                            ``(ii) in the opinion of the Secretary of 
                        Homeland Security, removing the alien to the 
                        country would be prejudicial to the United 
                        States.''; and
                    (C) by amending subparagraph (E)(vii) to read as 
                follows:
                            ``(vii) Any country whose government will 
                        accept the alien into that country.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply to 
any deportation, exclusion, or removal on or after such date pursuant 
to any deportation, exclusion, or removal order, regardless of whether 
such order is administratively final before, on, or after such date.

                Subtitle B--Identity Management Security

    CHAPTER 1--IMPROVED SECURITY FOR DRIVERS' LICENSES AND PERSONAL 
                          IDENTIFICATION CARDS

SEC. 3051. DEFINITIONS.

    In this chapter, the following definitions apply:
            (1) Driver's license.--The term ``driver's license'' means 
        a motor vehicle operator's license, as defined in section 30301 
        of title 49, United States Code.
            (2) Identification card.--The term ``identification card'' 
        means a personal identification card, as defined in section 
        1028(d) of title 18, United States Code, issued by a State.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (4) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and any other 
        territory or possession of the United States.

SEC. 3052. MINIMUM DOCUMENT REQUIREMENTS AND ISSUANCE STANDARDS FOR 
              FEDERAL RECOGNITION.

    (a) Minimum Standards for Federal Use.--
            (1) In general.--Beginning 3 years after the date of 
        enactment of this Act, a Federal agency may not accept, for any 
        official purpose, a driver's license or identification card 
        issued by a State to any person unless the State is meeting the 
        requirements of this section.
            (2) State certifications.--The Secretary shall determine 
        whether a State is meeting the requirements of this section 
        based on certifications made by the State to the Secretary. 
        Such certifications shall be made at such times and in such 
        manner as the Secretary, in consultation with the Secretary of 
        Transportation, may prescribe by regulation.
    (b) Minimum Document Requirements.--To meet the requirements of 
this section, a State shall include, at a minimum, the following 
information and features on each driver's license and identification 
card issued to a person by the State:
            (1) The person's full legal name.
            (2) The person's date of birth.
            (3) The person's gender.
            (4) The person's driver license or identification card 
        number.
            (5) A photograph of the person.
            (6) The person's address of principal residence.
            (7) The person's signature.
            (8) Physical security features designed to prevent 
        tampering, counterfeiting, or duplication of the document for 
        fraudulent purposes.
            (9) A common machine-readable technology, with defined 
        minimum data elements.
    (c) Minimum Issuance Standards.--
            (1) In general.--To meet the requirements of this section, 
        a State shall require, at a minimum, presentation and 
        verification of the following information before issuing a 
        driver's license or identification card to a person:
                    (A) A photo identity document, except that a non-
                photo identity document is acceptable if it includes 
                both the person's full legal name and date of birth.
                    (B) Documentation showing the person's date of 
                birth.
                    (C) Proof of the person's social security account 
                number or verification that the person is not eligible 
                for a social security account number.
                    (D) Documentation showing the person's name and 
                address of principal residence.
            (2) Verification of documents.--To meet the requirements of 
        this section, a State shall implement the following procedures:
                    (A) Before issuing a driver's license or 
                identification card to a person, the State shall 
                verify, with the issuing agency, the issuance, 
                validity, and completeness of each document required to 
                be presented by the person under paragraph (1).
                    (B) The State shall not accept any foreign 
                document, other than an official passport, to satisfy a 
                requirement of paragraph (1).
    (d) Other Requirements.--To meet the requirements of this section, 
a State shall adopt the following practices in the issuance of drivers' 
licenses and identification cards:
            (1) Employ technology to capture digital images of identity 
        source documents so that the images can be retained in 
        electronic storage in a transferable format.
            (2) Retain paper copies of source documents for a minimum 
        of 7 years or images of source documents presented for a 
        minimum of 10 years.
            (3) Subject each person applying for a driver's license or 
        identification card to mandatory facial image capture.
            (4) Establish an effective procedure to confirm or verify a 
        renewing applicant's information.
            (5) Confirm with the Social Security Administration a 
        social security account number presented by a person using the 
        full social security account number. In the event that a social 
        security account number is already registered to or associated 
        with another person to which any State has issued a driver's 
        license or identification card, the State shall resolve the 
        discrepancy and take appropriate action.
            (6) Refuse to issue a driver's license or identification 
        card to a person holding a driver's license issued by another 
        State without confirmation that the person is terminating or 
        has terminated the driver's license.
            (7) Ensure the physical security of locations where 
        drivers' licenses and identification cards are produced and the 
        security of document materials and papers from which drivers' 
        licenses and identification cards are produced.
            (8) Subject all persons authorized to manufacture or 
        produce drivers' licenses and identification cards to 
        appropriate security clearance requirements.
            (9) Establish fraudulent document recognition training 
        programs for appropriate employees engaged in the issuance of 
        drivers' licenses and identification cards.

SEC. 3053. LINKING OF DATABASES.

    (a) In General.--To be eligible to receive any grant or other type 
of financial assistance made available under this subtitle, a State 
shall participate in the interstate compact regarding sharing of driver 
license data, known as the ``Driver License Agreement'', in order to 
provide electronic access by a State to information contained in the 
motor vehicle databases of all other States.
    (b) Requirements for Information.--A State motor vehicle database 
shall contain, at a minimum, the following information:
            (1) All data fields printed on drivers' licenses and 
        identification cards issued by the State.
            (2) Motor vehicle drivers' histories, including motor 
        vehicle violations, suspensions, and points on licenses.

SEC. 3054. TRAFFICKING IN AUTHENTICATION FEATURES FOR USE IN FALSE 
              IDENTIFICATION DOCUMENTS.

    Section 1028(a)(8) of title 18, United States Code, is amended by 
striking ``false authentication features'' and inserting ``false or 
actual authentication features''.

SEC. 3055. GRANTS TO STATES.

    (a) In General.--The Secretary may make grants to a State to assist 
the State in conforming to the minimum standards set forth in this 
chapter.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of the fiscal years 2005 through 
2009 such sums as may be necessary to carry out this chapter.

SEC. 3056. AUTHORITY.

    (a) Participation of Secretary of Transportation and States.--All 
authority to issue regulations, certify standards, and issue grants 
under this chapter shall be carried out by the Secretary, in 
consultation with the Secretary of Transportation and the States.
    (b) Extensions of Deadlines.--The Secretary may grant to a State an 
extension of time to meet the requirements of section 3052(a)(1) if the 
State provides adequate justification for noncompliance.

          CHAPTER 2--IMPROVED SECURITY FOR BIRTH CERTIFICATES

SEC. 3061. DEFINITIONS.

    (a) Applicability of Definitions.--Except as otherwise specifically 
provided, the definitions contained in section 3051 apply to this 
chapter.
    (b) Other Definitions.--In this chapter, the following definitions 
apply:
            (1) Birth certificate.--The term ``birth certificate'' 
        means a certificate of birth--
                    (A) for an individual (regardless of where born)--
                            (i) who is a citizen or national of the 
                        United States at birth; and
                            (ii) whose birth is registered in the 
                        United States; and
                    (B) that--
                            (i) is issued by a Federal, State, or local 
                        government agency or authorized custodian of 
                        record and produced from birth records 
                        maintained by such agency or custodian of 
                        record; or
                            (ii) is an authenticated copy, issued by a 
                        Federal, State, or local government agency or 
                        authorized custodian of record, of an original 
                        certificate of birth issued by such agency or 
                        custodian of record.
            (2) Registrant.--The term ``registrant'' means, with 
        respect to a birth certificate, the person whose birth is 
        registered on the certificate.
            (3) State.--The term ``State'' shall have the meaning given 
        such term in section 3051; except that New York City shall be 
        treated as a State separate from New York.

SEC. 3062. APPLICABILITY OF MINIMUM STANDARDS TO LOCAL GOVERNMENTS.

    The minimum standards in this chapter applicable to birth 
certificates issued by a State shall also apply to birth certificates 
issued by a local government in the State. It shall be the 
responsibility of the State to ensure that local governments in the 
State comply with the minimum standards.

SEC. 3063. MINIMUM STANDARDS FOR FEDERAL RECOGNITION.

    (a) Minimum Standards for Federal Use.--
            (1) In general.--Beginning 3 years after the date of 
        enactment of this Act, a Federal agency may not accept, for any 
        official purpose, a birth certificate issued by a State to any 
        person unless the State is meeting the requirements of this 
        section.
            (2) State certifications.--The Secretary shall determine 
        whether a State is meeting the requirements of this section 
        based on certifications made by the State to the Secretary. 
        Such certifications shall be made at such times and in such 
        manner as the Secretary, in consultation with the Secretary of 
        Health and Human Services, may prescribe by regulation.
    (b) Minimum Document Standards.--To meet the requirements of this 
section, a State shall include, on each birth certificate issued to a 
person by the State, the use of safety paper, the seal of the issuing 
custodian of record, and such other features as the Secretary may 
determine necessary to prevent tampering, counterfeiting, and otherwise 
duplicating the birth certificate for fraudulent purposes. The 
Secretary may not require a single design to which birth certificates 
issued by all States must conform.
    (c) Minimum Issuance Standards.--
            (1) In general.--To meet the requirements of this section, 
        a State shall require and verify the following information from 
        the requestor before issuing an authenticated copy of a birth 
        certificate:
                    (A) The name on the birth certificate.
                    (B) The date and location of the birth.
                    (C) The mother's maiden name.
                    (D) Substantial proof of the requestor's identity.
            (2) Issuance to persons not named on birth certificate.--To 
        meet the requirements of this section, in the case of a request 
        by a person who is not named on the birth certificate, a State 
        must require the presentation of legal authorization to request 
        the birth certificate before issuance.
            (3) Issuance to family members.--Not later than one year 
        after the date of enactment of this Act, the Secretary, in 
        consultation with the Secretary of Health and Human Services 
        and the States, shall establish minimum standards for issuance 
        of a birth certificate to specific family members, their 
        authorized representatives, and others who demonstrate that the 
        certificate is needed for the protection of the requestor's 
        personal or property rights.
            (4) Waivers.--A State may waive the requirements set forth 
        in subparagraphs (A) through (C) of subsection (c)(1) in 
        exceptional circumstances, such as the incapacitation of the 
        registrant.
            (5) Applications by electronic means.--To meet the 
        requirements of this section, for applications by electronic 
        means, through the mail or by phone or fax, a State shall 
        employ third party verification, or equivalent verification, of 
        the identity of the requestor.
            (6) Verification of documents.--To meet the requirements of 
        this section, a State shall verify the documents used to 
        provide proof of identity of the requestor.
    (d) Other Requirements.--To meet the requirements of this section, 
a State shall adopt, at a minimum, the following practices in the 
issuance and administration of birth certificates:
            (1) Establish and implement minimum building security 
        standards for State and local vital record offices.
            (2) Restrict public access to birth certificates and 
        information gathered in the issuance process to ensure that 
        access is restricted to entities with which the State has a 
        binding privacy protection agreement.
            (3) Subject all persons with access to vital records to 
        appropriate security clearance requirements.
            (4) Establish fraudulent document recognition training 
        programs for appropriate employees engaged in the issuance 
        process.
            (5) Establish and implement internal operating system 
        standards for paper and for electronic systems.
            (6) Establish a central database that can provide 
        interoperative data exchange with other States and with Federal 
        agencies, subject to privacy restrictions and confirmation of 
        the authority and identity of the requestor.
            (7) Ensure that birth and death records are matched in a 
        comprehensive and timely manner, and that all electronic birth 
        records and paper birth certificates of decedents are marked 
        ``deceased''.
            (8) Cooperate with the Secretary in the implementation of 
        electronic verification of vital events under section 3065.

SEC. 3064. ESTABLISHMENT OF ELECTRONIC BIRTH AND DEATH REGISTRATION 
              SYSTEMS.

    In consultation with the Secretary of Health and Human Services and 
the Commissioner of Social Security, the Secretary shall take the 
following actions:
            (1) Work with the States to establish a common data set and 
        common data exchange protocol for electronic birth registration 
        systems and death registration systems.
            (2) Coordinate requirements for such systems to align with 
        a national model.
            (3) Ensure that fraud prevention is built into the design 
        of electronic vital registration systems in the collection of 
        vital event data, the issuance of birth certificates, and the 
        exchange of data among government agencies.
            (4) Ensure that electronic systems for issuing birth 
        certificates, in the form of printed abstracts of birth records 
        or digitized images, employ a common format of the certified 
        copy, so that those requiring such documents can quickly 
        confirm their validity.
            (5) Establish uniform field requirements for State birth 
        registries.
            (6) Not later than 1 year after the date of enactment of 
        this Act, establish a process with the Department of Defense 
        that will result in the sharing of data, with the States and 
        the Social Security Administration, regarding deaths of United 
        States military personnel and the birth and death of their 
        dependents.
            (7) Not later than 1 year after the date of enactment of 
        this Act, establish a process with the Department of State to 
        improve registration, notification, and the sharing of data 
        with the States and the Social Security Administration, 
        regarding births and deaths of United States citizens abroad.
            (8) Not later than 3 years after the date of establishment 
        of databases provided for under this section, require States to 
        record and retain electronic records of pertinent 
        identification information collected from requestors who are 
        not the registrants.
            (9) Not later than 6 months after the date of enactment of 
        this Act, submit to Congress, a report on whether there is a 
        need for Federal laws to address penalties for fraud and misuse 
        of vital records and whether violations are sufficiently 
        enforced.

SEC. 3065. ELECTRONIC VERIFICATION OF VITAL EVENTS.

    (a) Lead Agency.--The Secretary shall lead the implementation of 
electronic verification of a person's birth and death.
    (b) Regulations.--In carrying out subsection (a), the Secretary 
shall issue regulations to establish a means by which authorized 
Federal and State agency users with a single interface will be able to 
generate an electronic query to any participating vital records 
jurisdiction throughout the Nation to verify the contents of a paper 
birth certificate. Pursuant to the regulations, an electronic response 
from the participating vital records jurisdiction as to whether there 
is a birth record in their database that matches the paper birth 
certificate will be returned to the user, along with an indication if 
the matching birth record has been flagged ``deceased''. The 
regulations shall take effect not later than 5 years after the date of 
enactment of this Act.

SEC. 3066. GRANTS TO STATES.

    (a) In General.--The Secretary may make grants to a State to assist 
the State in conforming to the minimum standards set forth in this 
chapter.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of the fiscal years 2005 through 
2009 such sums as may be necessary to carry out this chapter.

SEC. 3067. AUTHORITY.

    (a) Participation With Federal Agencies and States.--All authority 
to issue regulations, certify standards, and issue grants under this 
chapter shall be carried out by the Secretary, with the concurrence of 
the Secretary of Health and Human Services and in consultation with 
State vital statistics offices and appropriate Federal agencies.
    (b) Extensions of Deadlines.--The Secretary may grant to a State an 
extension of time to meet the requirements of section 3063(a)(1) if the 
State provides adequate justification for noncompliance.

CHAPTER 3--MEASURES TO ENHANCE PRIVACY AND INTEGRITY OF SOCIAL SECURITY 
                            ACCOUNT NUMBERS

SEC. 3071. PROHIBITION OF THE DISPLAY OF SOCIAL SECURITY ACCOUNT 
              NUMBERS ON DRIVER'S LICENSES OR MOTOR VEHICLE 
              REGISTRATIONS.

    (a) In General.--Section 205(c)(2)(C)(vi) of the Social Security 
Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
            (1) by inserting ``(I)'' after ``(vi)''; and
            (2) by adding at the end the following new subclause:
    ``(II) Any State or political subdivision thereof (and any person 
acting as an agent of such an agency or instrumentality), in the 
administration of any driver's license or motor vehicle registration 
law within its jurisdiction, may not display a social security account 
number issued by the Commissioner of Social Security (or any derivative 
of such number) on any driver's license or motor vehicle registration 
or any other document issued by such State or political subdivision to 
an individual for purposes of identification of such individual or 
include on any such licence, registration, or other document a magnetic 
strip, bar code, or other means of communication which conveys such 
number (or derivative thereof).''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to licenses, registrations, and other documents 
issued or reissued after 1 year after the date of the enactment of this 
Act.

SEC. 3072. INDEPENDENT VERIFICATION OF BIRTH RECORDS PROVIDED IN 
              SUPPORT OF APPLICATIONS FOR SOCIAL SECURITY ACCOUNT 
              NUMBERS.

    (a) Applications for Social Security Account Numbers.--Section 
205(c)(2)(B)(ii) of the Social Security Act (42 U.S.C. 
405(c)(2)(B)(ii)) is amended--
            (1) by inserting ``(I)'' after ``(ii)''; and
            (2) by adding at the end the following new subclause:
    ``(II) With respect to an application for a social security account 
number for an individual, other than for purposes of enumeration at 
birth, the Commissioner shall require independent verification of any 
birth record provided by the applicant in support of the application. 
The Commissioner may provide by regulation for reasonable exceptions 
from the requirement for independent verification under this subclause 
in any case in which the Commissioner determines there is minimal 
opportunity for fraud.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to applications filed after 270 days after the date 
of the enactment of this Act.
    (c) Study Regarding Applications for Replacement Social Security 
Cards.--
            (1) In general.--As soon as practicable after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall undertake a study to test the feasibility and cost 
        effectiveness of verifying all identification documents 
        submitted by an applicant for a replacement social security 
        card. As part of such study, the Commissioner shall determine 
        the feasibility of, and the costs associated with, the 
        development of appropriate electronic processes for third party 
        verification of any such identification documents which are 
        issued by agencies and instrumentalities of the Federal 
        Government and of the States (and political subdivisions 
        thereof).
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Commissioner shall report to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate regarding the results of 
        the study undertaken under paragraph (1). Such report shall 
        contain such recommendations for legislative changes as the 
        Commissioner considers necessary to implement needed 
        improvements in the process for verifying identification 
        documents submitted by applicants for replacement social 
        security cards.

SEC. 3073. ENUMERATION AT BIRTH.

    (a) Improvement of Application Process.--
            (1) In general.--As soon as practicable after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall undertake to make improvements to the enumeration at 
        birth program for the issuance of social security account 
        numbers to newborns. Such improvements shall be designed to 
        prevent--
                    (A) the assignment of social security account 
                numbers to unnamed children;
                    (B) the issuance of more than 1 social security 
                account number to the same child; and
                    (C) other opportunities for fraudulently obtaining 
                a social security account number.
            (2) Report to the congress.--Not later than 1 year after 
        the date of the enactment of this Act, the Commissioner shall 
        transmit to each House of the Congress a report specifying in 
        detail the extent to which the improvements required under 
        paragraph (1) have been made.
    (b) Study Regarding Process for Enumeration at Birth.--
            (1) In general.--As soon as practicable after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall undertake a study to determine the most efficient options 
        for ensuring the integrity of the process for enumeration at 
        birth. Such study shall include an examination of available 
        methods for reconciling hospital birth records with birth 
        registrations submitted to agencies of States and political 
        subdivisions thereof and with information provided to the 
        Commissioner as part of the process for enumeration at birth.
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Commissioner shall report to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate regarding the results of 
        the study undertaken under paragraph (1). Such report shall 
        contain such recommendations for legislative changes as the 
        Commissioner considers necessary to implement needed 
        improvements in the process for enumeration at birth.

SEC. 3074. STUDY RELATING TO USE OF PHOTOGRAPHIC IDENTIFICATION IN 
              CONNECTION WITH APPLICATIONS FOR BENEFITS, SOCIAL 
              SECURITY ACCOUNT NUMBERS, AND SOCIAL SECURITY CARDS.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Commissioner of Social Security shall 
undertake a study to--
            (1) determine the best method of requiring and obtaining 
        photographic identification of applicants for old-age, 
        survivors, and disability insurance benefits under title II of 
        the Social Security Act, for a social security account number, 
        or for a replacement social security card, and of providing for 
        reasonable exceptions to any requirement for photographic 
        identification of such applicants that may be necessary to 
        promote efficient and effective administration of such title, 
        and
            (2) evaluate the benefits and costs of instituting such a 
        requirement for photographic identification, including the 
        degree to which the security and integrity of the old-age, 
        survivors, and disability insurance program would be enhanced.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commissioner shall report to the Committee 
on Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate regarding the results of the study undertaken 
under subsection (a). Such report shall contain such recommendations 
for legislative changes as the Commissioner considers necessary 
relating to requirements for photographic identification of applicants 
described in subsection (a).

SEC. 3075. RESTRICTIONS ON ISSUANCE OF MULTIPLE REPLACEMENT SOCIAL 
              SECURITY CARDS.

    (a) In General.--Section 205(c)(2)(G) of the Social Security Act 
(42 U.S.C. 405(c)(2)(G)) is amended by adding at the end the following 
new sentence: ``The Commissioner shall restrict the issuance of 
multiple replacement social security cards to any individual to 3 per 
year and to 10 for the life of the individual, except in any case in 
which the Commissioner determines there is minimal opportunity for 
fraud.''.
    (b) Regulations and Effective Date.--The Commissioner of Social 
Security shall issue regulations under the amendment made by subsection 
(a) not later than 1 year after the date of the enactment of this Act. 
Systems controls developed by the Commissioner pursuant to such 
amendment shall take effect upon the earlier of the issuance of such 
regulations or the end of such 1-year period.

SEC. 3076. STUDY RELATING TO MODIFICATION OF THE SOCIAL SECURITY 
              ACCOUNT NUMBERING SYSTEM TO SHOW WORK AUTHORIZATION 
              STATUS.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Commissioner of Social Security, in 
consultation with the Secretary of Homeland Security, shall undertake a 
study to examine the best method of modifying the social security 
account number assigned to individuals who--
            (1) are not citizens of the United States,
            (2) have not been admitted for permanent residence, and
            (3) are not authorized by the Secretary of Homeland 
        Security to work in the United States, or are so authorized 
        subject to one or more restrictions,
so as to include an indication of such lack of authorization to work or 
such restrictions on such an authorization.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Commissioner shall report to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate regarding the results of the study undertaken under this 
section. Such report shall include the Commissioner's recommendations 
of feasible options for modifying the social security account number in 
the manner described in subsection (a).

                 Subtitle C--Targeting Terrorist Travel

SEC. 3081. STUDIES ON MACHINE-READABLE PASSPORTS AND TRAVEL HISTORY 
              DATABASE.

    (a) In General.--Not later than May 31, 2005, the Comptroller 
General of the United States, the Secretary of State, and the Secretary 
of Homeland Security each shall submit to the Committees on the 
Judiciary of the House of Representatives and of the Senate, the 
Committee on International Relations of the House of Representatives, 
and the Committee on Foreign Relations of the Senate the results of a 
separate study on the subjects described in subsection (c).
    (b) Study.--The study submitted by the Secretary of State under 
subsection (a) shall be completed by the Office of Visa and Passport 
Control of the Department of State, in coordination with the 
appropriate officials of the Department of Homeland Security.
    (c) Contents.--The studies described in subsection (a) shall 
examine the feasibility, cost, potential benefits, and relative 
importance to the objectives of tracking suspected terrorists' travel, 
and apprehending suspected terrorists, of each of the following:
            (1) Requiring nationals of all countries to present 
        machine-readable, tamper-resistant passports that incorporate 
        biometric and document authentication identifiers.
            (2) Creation of a database containing information on the 
        lifetime travel history of each foreign national or United 
        States citizen who might seek to enter the United States or 
        another country at any time, in order that border and visa 
        issuance officials may ascertain the travel history of a 
        prospective entrant by means other than a passport.
    (d) Incentives.--The studies described in subsection (a) shall also 
make recommendations on incentives that might be offered to encourage 
foreign nations to participate in the initiatives described in 
paragraphs (1) and (2) of subsection (c).

SEC. 3082. EXPANDED PREINSPECTION AT FOREIGN AIRPORTS.

    (a) In General.--Section 235A(a)(4) of the Immigration and 
Nationality Act (8 U.S.C. 1225(a)(4)) is amended--
            (1) by striking ``October 31, 2000,'' and inserting 
        ``January 1, 2008,'';
            (2) by striking ``5 additional'' and inserting ``up to 25 
        additional'';
            (3) by striking ``number of aliens'' and inserting ``number 
        of inadmissible aliens, especially aliens who are potential 
        terrorists,'';
            (4) by striking ``who are inadmissible to the United 
        States.'' and inserting a period; and
            (5) by striking ``Attorney General'' each place such term 
        appears and inserting ``Secretary of Homeland Security''.
    (b) Report.--Not later than June 30, 2006, the Secretary of 
Homeland Security and the Secretary of State shall report to the 
Committees on the Judiciary of the House of Representatives and of the 
Senate, the Committee on International Relations of the House of 
Representatives, and the Committee on Foreign Relations of the Senate 
on the progress being made in implementing the amendments made by 
subsection (a).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Homeland Security to carry out the 
amendments made by subsection (a)--
            (1) $24,000,000 for fiscal year 2005;
            (2) $48,000,000 for fiscal year 2006; and
            (3) $97,000,000 for fiscal year 2007.

SEC. 3083. IMMIGRATION SECURITY INITIATIVE.

    (a) In General.--Section 235A(b) of the Immigration and Nationality 
Act (8 U.S.C. 1225(b)) is amended--
            (1) in the subsection heading, by inserting ``and 
        Immigration Security Initiative'' after ``Program''; and
            (2) by adding at the end the following:
``Beginning not later than December 31, 2006, the number of airports 
selected for an assignment under this subsection shall be at least 
50.''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Homeland Security to carry out the 
amendments made by subsection (a)--
            (1) $25,000,000 for fiscal year 2005;
            (2) $40,000,000 for fiscal year 2006; and
            (3) $40,000,000 for fiscal year 2007.

SEC. 3084. RESPONSIBILITIES AND FUNCTIONS OF CONSULAR OFFICERS.

    (a) Increased Number of Consular Officers.--The Secretary of State, 
in each of fiscal years 2006 through 2009, may increase by 150 the 
number of positions for consular officers above the number of such 
positions for which funds were allotted for the preceding fiscal year.
    (b) Limitation on Use of Foreign Nationals for Nonimmigrant Visa 
Screening.--Section 222(d) of the Immigration and Nationality Act (8 
U.S.C. 1202(d)) is amended by adding at the end the following:
``All nonimmigrant visa applications shall be reviewed and adjudicated 
by a consular officer.''.
    (c) Training for Consular Officers in Detection of Fraudulent 
Documents.--Section 305(a) of the Enhanced Border Security and Visa 
Entry Reform Act of 2002 (8 U.S.C. 1734(a)) is amended by adding at the 
end the following: ``As part of the consular training provided to such 
officers by the Secretary of State, such officers shall also receive 
training in detecting fraudulent documents and general document 
forensics and shall be required as part of such training to work with 
immigration officers conducting inspections of applicants for admission 
into the United States at ports of entry.''.
    (d) Assignment of Anti-Fraud Specialists.--
            (1) Survey regarding document fraud.--The Secretary of 
        State, in coordination with the Secretary of Homeland Security, 
        shall conduct a survey of each diplomatic and consular post at 
        which visas are issued to assess the extent to which fraudulent 
        documents are presented by visa applicants to consular officers 
        at such posts.
            (2) Placement of specialist.--Not later than July 31, 2005, 
        the Secretary shall, in coordination with the Secretary of 
        Homeland Security, identify 100 of such posts that experience 
        the greatest frequency of presentation of fraudulent documents 
        by visa applicants. The Secretary shall place in each such post 
        at least one full-time anti-fraud specialist employed by the 
        Department of State to assist the consular officers at each 
        such post in the detection of such fraud.

SEC. 3085. INCREASE IN PENALTIES FOR FRAUD AND RELATED ACTIVITY.

    Section 1028 of title 18, United States Code, relating to penalties 
for fraud and related activity in connection with identification 
documents and information, is amended--
            (1) in subsection (b)(1)(A)(i), by striking ``issued by or 
        under the authority of the United States'' and inserting the 
        following: ``as described in subsection (d)'';
            (2) in subsection (b)(2), by striking ``three years'' and 
        inserting ``six years'';
            (3) in subsection (b)(3), by striking ``20 years'' and 
        inserting ``25 years'';
            (4) in subsection (b)(4), by striking ``25 years'' and 
        inserting ``30 years''; and
            (5) in subsection (c)(1), by inserting after ``United 
        States'' the following: ``Government, a State, political 
        subdivision of a State, a foreign government, political 
        subdivision of a foreign government, an international 
        governmental or an international quasi-governmental 
        organization,''.

SEC. 3086. CRIMINAL PENALTY FOR FALSE CLAIM TO CITIZENSHIP.

    Section 1015 of title 18, United States Code, is amended--
            (1) by striking the dash at the end of subsection (f) and 
        inserting ``; or''; and
            (2) by inserting after subsection (f) the following:
    ``(g) Whoever knowingly makes any false statement or claim that he 
is a citizen of the United States in order to enter into, or remain in, 
the United States--''.

SEC. 3087. ANTITERRORISM ASSISTANCE TRAINING OF THE DEPARTMENT OF 
              STATE.

    (a) Limitation.--Notwithstanding any other provision of law, the 
Secretary of State shall ensure, subject to subsection (b), that the 
Antiterrorism Assistance Training (ATA) program of the Department of 
State (or any successor or related program) under chapter 8 of part II 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa et seq.) (or 
other relevant provisions of law) is carried out primarily to provide 
training to host nation security services for the specific purpose of 
ensuring the physical security and safety of United States Government 
facilities and personnel abroad (as well as foreign dignitaries and 
training related to the protection of such dignitaries), including 
security detail training and offenses related to passport or visa 
fraud.
    (b) Exception.--The limitation contained in subsection (a) shall 
not apply, and the Secretary of State may expand the ATA program to 
include other types of antiterrorism assistance training, if the 
Secretary first consults with the Attorney General and provides written 
notification of such proposed expansion to the appropriate 
congressional committees.
    (c) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on International Relations and the 
        Committee on the Judiciary of the House of Representatives; and
            (2) the Committee on Foreign Relations and the Committee on 
        the Judiciary of the Senate.

SEC. 3088. INTERNATIONAL AGREEMENTS TO TRACK AND CURTAIL TERRORIST 
              TRAVEL THROUGH THE USE OF FRAUDULENTLY OBTAINED 
              DOCUMENTS.

    (a) Findings.--Congress finds the following:
            (1) International terrorists travel across international 
        borders to raise funds, recruit members, train for operations, 
        escape capture, communicate, and plan and carry out attacks.
            (2) The international terrorists who planned and carried 
        out the attack on the World Trade Center on February 26, 1993, 
        the attack on the embassies of the United States in Kenya and 
        Tanzania on August 7, 1998, the attack on the USS Cole on 
        October 12, 2000, and the attack on the World Trade Center and 
        the Pentagon on September 11, 2001, traveled across 
        international borders to plan and carry out these attacks.
            (3) The international terrorists who planned other attacks 
        on the United States, including the plot to bomb New York City 
        landmarks in 1993, the plot to bomb the New York City subway in 
        1997, and the millennium plot to bomb Los Angeles International 
        Airport on December 31, 1999, traveled across international 
        borders to plan and carry out these attacks.
            (4) Many of the international terrorists who planned and 
        carried out large-scale attacks against foreign targets, 
        including the attack in Bali, Indonesia, on October 11, 2002, 
        and the attack in Madrid, Spain, on March 11, 2004, traveled 
        across international borders to plan and carry out these 
        attacks.
            (5) Throughout the 1990s, international terrorists, 
        including those involved in the attack on the World Trade 
        Center on February 26, 1993, the plot to bomb New York City 
        landmarks in 1993, and the millennium plot to bomb Los Angeles 
        International Airport on December 31, 1999, traveled on 
        fraudulent passports and often had more than one passport.
            (6) Two of the September 11, 2001, hijackers were carrying 
        passports that had been manipulated in a fraudulent manner and 
        several other hijackers whose passports did not survive the 
        attacks on the World Trade Center and Pentagon were likely to 
        have carried passports that were similarly manipulated.
            (7) The National Commission on Terrorist Attacks upon the 
        United States, (commonly referred to as the 9/11 Commission), 
        stated that ``Targeting travel is at least as powerful a weapon 
        against terrorists as targeting their money.''.
    (b) International Agreements to Track and Curtail Terrorist 
Travel.--
            (1) International agreement on lost, stolen, or falsified 
        documents.--The President shall lead efforts to track and 
        curtail the travel of terrorists by supporting the drafting, 
        adoption, and implementation of international agreements, and 
        by supporting the expansion of existing international 
        agreements, to track and stop international travel by 
        terrorists and other criminals through the use of lost, stolen, 
        or falsified documents to augment existing United Nations and 
        other international anti-terrorism efforts.
            (2) Contents of international agreement.--The President 
        shall seek, in the appropriate fora, the drafting, adoption, 
        and implementation of an effective international agreement 
        requiring--
                    (A) the establishment of a system to share 
                information on lost, stolen, and fraudulent passports 
                and other travel documents for the purposes of 
                preventing the undetected travel of persons using such 
                passports and other travel documents that were obtained 
                improperly;
                    (B) the establishment and implementation of a real-
                time verification system of passports and other travel 
                documents with issuing authorities;
                    (C) the assumption of an obligation by countries 
                that are parties to the agreement to share with 
                officials at ports of entry in any such country 
                information relating to lost, stolen, and fraudulent 
                passports and other travel documents;
                    (D) the assumption of an obligation by countries 
                that are parties to the agreement--
                            (i) to criminalize--
                                    (I) the falsification or 
                                counterfeiting of travel documents or 
                                breeder documents for any purpose;
                                    (II) the use or attempted use of 
                                false documents to obtain a visa or 
                                cross a border for any purpose;
                                    (III) the possession of tools or 
                                implements used to falsify or 
                                counterfeit such documents;
                                    (IV) the trafficking in false or 
                                stolen travel documents and breeder 
                                documents for any purpose;
                                    (V) the facilitation of travel by a 
                                terrorist; and
                                    (VI) attempts to commit, including 
                                conspiracies to commit, the crimes 
                                specified above;
                            (ii) to impose significant penalties so as 
                        to appropriately punish violations and 
                        effectively deter these crimes; and
                            (iii) to limit the issuance of citizenship 
                        papers, passports, identification documents, 
                        and the like to persons whose identity is 
                        proven to the issuing authority, who have a 
                        bona fide entitlement to or need for such 
                        documents, and who are not issued such 
                        documents principally on account of a 
                        disproportional payment made by them or on 
                        their behalf to the issuing authority;
                    (E) the provision of technical assistance to State 
                Parties to help them meet their obligations under the 
                convention;
                    (F) the establishment and implementation of a 
                system of self-assessments and peer reviews to examine 
                the degree of compliance with the convention; and
                    (G) an agreement that would permit immigration and 
                border officials to confiscate a lost, stolen, or 
                falsified passport at ports of entry and permit the 
                traveler to return to the sending country without being 
                in possession of the lost, stolen, or falsified 
                passport, and for the detention and investigation of 
                such traveler upon the return of the traveler to the 
                sending country.
            (3) International civil aviation organization.--The United 
        States shall lead efforts to track and curtail the travel of 
        terrorists by supporting efforts at the International Civil 
        Aviation Organization to continue to strengthen the security 
        features of passports and other travel documents.
    (c) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, and at least annually thereafter, 
        the President shall submit to the appropriate congressional 
        committees a report on progress toward achieving the goals 
        described in subsection (b).
            (2) Termination.--Paragraph (1) shall cease to be effective 
        when the President certifies to the Committee on International 
        Relations of the House of Representatives and the Committee on 
        Foreign Relations of the Senate that the goals described in 
        subsection (b) have been fully achieved.

SEC. 3089. INTERNATIONAL STANDARDS FOR TRANSLATION OF NAMES INTO THE 
              ROMAN ALPHABET FOR INTERNATIONAL TRAVEL DOCUMENTS AND 
              NAME-BASED WATCHLIST SYSTEMS.

    (a) Findings.--Congress finds that--
            (1) the current lack of a single convention for translating 
        Arabic names enabled some of the 19 hijackers of aircraft used 
        in the terrorist attacks against the United States that 
        occurred on September 11, 2001, to vary the spelling of their 
        names to defeat name-based terrorist watchlist systems and to 
        make more difficult any potential efforts to locate them; and
            (2) although the development and utilization of terrorist 
        watchlist systems using biometric identifiers will be helpful, 
        the full development and utilization of such systems will take 
        several years, and name-based terrorist watchlist systems will 
        always be useful.
    (b) Sense of Congress.--It is the sense of Congress that the 
President should seek to enter into an international agreement to 
modernize and improve standards for the translation of names into the 
Roman alphabet in order to ensure one common spelling for such names 
for international travel documents and name-based watchlist systems.

SEC. 3090. BIOMETRIC ENTRY AND EXIT DATA SYSTEM.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, Congress finds 
that completing a biometric entry and exit data system as expeditiously 
as possible is an essential investment in efforts to protect the United 
States by preventing the entry of terrorists.
    (b) Plan and Report.--
            (1) Development of plan.--The Secretary of Homeland 
        Security shall develop a plan to accelerate the full 
        implementation of an automated biometric entry and exit data 
        system required by applicable sections of--
                    (A) the Illegal Immigration Reform and Immigrant 
                Responsibility Act of 1996 (Public Law 104-208);
                    (B) the Immigration and Naturalization Service Data 
                Management Improvement Act of 2000 (Public Law 106-
                205);
                    (C) the Visa Waiver Permanent Program Act (Public 
                Law 106-396);
                    (D) the Enhanced Border Security and Visa Entry 
                Reform Act of 2002 (Public Law 107-173); and
                    (E) the Uniting and Strengthening America by 
                Providing Appropriate Tools Required to Intercept and 
                Obstruct Terrorism Act of 2001 (Public Law 107-56).
            (2) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary shall submit a report to 
        Congress on the plan developed under paragraph (1), which shall 
        contain--
                    (A) a description of the current functionality of 
                the entry and exit data system, including--
                            (i) a listing of ports of entry with 
                        biometric entry data systems in use and whether 
                        such screening systems are located at primary 
                        or secondary inspection areas;
                            (ii) a listing of ports of entry with 
                        biometric exit data systems in use;
                            (iii) a listing of databases and data 
                        systems with which the automated entry and exit 
                        data system are interoperable;
                            (iv) a description of--
                                    (I) identified deficiencies 
                                concerning the accuracy or integrity of 
                                the information contained in the entry 
                                and exit data system;
                                    (II) identified deficiencies 
                                concerning technology associated with 
                                processing individuals through the 
                                system; and
                                    (III) programs or policies planned 
                                or implemented to correct problems 
                                identified in subclause (I) or (II); 
                                and
                            (v) an assessment of the effectiveness of 
                        the entry and exit data system in fulfilling 
                        its intended purposes, including preventing 
                        terrorists from entering the United States;
                    (B) a description of factors relevant to the 
                accelerated implementation of the biometric entry and 
                exit system, including--
                            (i) the earliest date on which the 
                        Secretary estimates that full implementation of 
                        the biometric entry and exit data system can be 
                        completed;
                            (ii) the actions the Secretary will take to 
                        accelerate the full implementation of the 
                        biometric entry and exit data system at all 
                        ports of entry through which all aliens must 
                        pass that are legally required to do so; and
                            (iii) the resources and authorities 
                        required to enable the Secretary to meet the 
                        implementation date described in clause (i);
                    (C) a description of any improvements needed in the 
                information technology employed for the entry and exit 
                data system; and
                    (D) a description of plans for improved or added 
                interoperability with any other databases or data 
                systems.
    (c) Integration Requirement.--Not later than 2 years after the date 
of the enactment of this Act, the Secretary shall integrate the 
biometric entry and exit data system with all databases and data 
systems maintained by the United States Citizenship and Immigration 
Services that process or contain information on aliens.
    (d) Maintaining Accuracy and Integrity of Entry and Exit Data 
System.--
            (1) In general.--The Secretary, in consultation with other 
        appropriate agencies, shall establish rules, guidelines, 
        policies, and operating and auditing procedures for collecting, 
        removing, and updating data maintained in, and adding 
        information to, the entry and exit data system, and databases 
        and data systems linked to the entry and exit data system, that 
        ensure the accuracy and integrity of the data.
            (2) Requirements.--The rules, guidelines, policies, and 
        procedures established under paragraph (1) shall--
                    (A) incorporate a simple and timely method for--
                            (i) correcting errors; and
                            (ii) clarifying information known to cause 
                        false hits or misidentification errors; and
                    (B) include procedures for individuals to seek 
                corrections of data contained in the data systems.
    (e) Expediting Registered Travelers Across International Borders.--
            (1) Findings.--Consistent with the report of the National 
        Commission on Terrorist Attacks Upon the United States, 
        Congress finds that--
                    (A) expediting the travel of previously screened 
                and known travelers across the borders of the United 
                States should be a high priority; and
                    (B) the process of expediting known travelers 
                across the border can permit inspectors to better focus 
                on identifying terrorists attempting to enter the 
                United States.
            (2) Definition.--The term ``registered traveler program'' 
        means any program designed to expedite the travel of previously 
        screened and known travelers across the borders of the United 
        States.
            (3) Registered travel plan.--
                    (A) In general.--As soon as is practicable, the 
                Secretary shall develop and implement a plan to 
                expedite the processing of registered travelers who 
                enter and exit the United States through a single 
                registered traveler program.
                    (B) Integration.--The registered traveler program 
                developed under this paragraph shall be integrated into 
                the automated biometric entry and exit data system 
                described in this section.
                    (C) Review and evaluation.--In developing the 
                program under this paragraph, the Secretary shall--
                            (i) review existing programs or pilot 
                        projects designed to expedite the travel of 
                        registered travelers across the borders of the 
                        United States;
                            (ii) evaluate the effectiveness of the 
                        programs described in clause (i), the costs 
                        associated with such programs, and the costs to 
                        travelers to join such programs; and
                            (iii) increase research and development 
                        efforts to accelerate the development and 
                        implementation of a single registered traveler 
                        program.
            (4) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Secretary shall submit to the 
        Congress a report describing the Department's progress on the 
        development and implementation of the plan required by this 
        subsection.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary, for each of the fiscal years 2005 
through 2009, such sums as may be necessary to carry out the provisions 
of this section.

SEC. 3091. ENHANCED RESPONSIBILITIES OF THE COORDINATOR FOR 
              COUNTERTERRORISM.

    (a) Declaration of United States Policy.--Congress declares that it 
shall be the policy of the United States to--
            (1) make combating terrorist travel and those who assist 
        them a priority for the United States counterterrorism policy; 
        and
            (2) ensure that the information relating to individuals who 
        help facilitate terrorist travel by creating false passports, 
        visas, documents used to obtain such travel documents, and 
        other documents are fully shared within the United States 
        Government and, to the extent possible, with and from foreign 
        governments, in order to initiate United States and foreign 
        prosecutions of such individuals.
    (b) Amendment.--Section 1(e)(2) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a(e)(2)) is amended by adding at 
the end the following:
                    ``(C) Additional duties relating to terrorist 
                travel.--In addition to the principal duties of the 
                Coordinator described in subparagraph (B), the 
                Coordinator shall analyze methods used by terrorists to 
                travel internationally, develop policies with respect 
                to curtailing terrorist travel, and coordinate such 
                policies with the appropriate bureaus and other 
                entities of the Department of State, other United 
                States Government agencies, the Human Trafficking and 
                Smuggling Center, and foreign governments.''.

SEC. 3092. ESTABLISHMENT OF OFFICE OF VISA AND PASSPORT SECURITY IN THE 
              DEPARTMENT OF STATE.

    (a) Establishment.--There is established within the Bureau of 
Diplomatic Security of the Department of State an Office of Visa and 
Passport Security (in this section referred to as the ``Office'').
    (b) Head of Office.--
            (1) In general.--Notwithstanding any other provision of 
        law, the head of the Office shall be an individual who shall 
        have the rank and status of Deputy Assistant Secretary of State 
        for Diplomatic Security (in this section referred to as the 
        ``Deputy Assistant Secretary'').
            (2) Recruitment.--The Under Secretary of State for 
        Management shall chose the Deputy Assistant Secretary from 
        among individuals who are Diplomatic Security Agents.
            (3) Qualifications.--The Diplomatic Security Agent chosen 
        to serve as the Deputy Assistant Secretary shall have expertise 
        and experience in investigating and prosecuting visa and 
        passport fraud.
    (c) Duties.--
            (1) Preparation of strategic plan.--
                    (A) In general.--The Deputy Assistant Secretary, in 
                coordination with the appropriate officials of the 
                Department of Homeland Security, shall ensure the 
                preparation of a strategic plan to target and disrupt 
                individuals and organizations at home and in foreign 
                countries that are involved in the fraudulent 
                production, distribution, use, or other similar 
                activity--
                            (i) of a United States visa or United 
                        States passport;
                            (ii) of documents intended to help 
                        fraudulently procure a United States visa or 
                        United States passport, or other documents 
                        intended to gain unlawful entry into the United 
                        States; or
                            (iii) of passports and visas issued by 
                        foreign countries intended to gain unlawful 
                        entry into the United States.
                    (B) Emphasis.--Such plan shall--
                            (i) focus particular emphasis on 
                        individuals and organizations that may have 
                        links to domestic terrorist organizations or 
                        foreign terrorist organizations (as such term 
                        is defined in Section 219 of the Immigration 
                        and Nationality Act (8 U.S.C. 1189));
                            (ii) require the development of a strategic 
                        training course under the Antiterrorism 
                        Assistance Training (ATA) program of the 
                        Department of State (or any successor or 
                        related program) under chapter 8 of part II of 
                        the Foreign Assistance Act of 1961 (22 U.S.C. 
                        2349aa et seq.) (or other relevant provisions 
                        of law) to train participants in the 
                        identification of fraudulent documents and the 
                        forensic detection of such documents which may 
                        be used to obtain unlawful entry into the 
                        United States; and
                            (iii) determine the benefits and costs of 
                        providing technical assistance to foreign 
                        governments to ensure the security of 
                        passports, visas, and related documents and to 
                        investigate, arrest, and prosecute individuals 
                        who facilitate travel by the creation of false 
                        passports and visas, documents to obtain such 
                        passports and visas, and other types of travel 
                        documents.
            (2) Duties of office.--The Office shall have the following 
        duties:
                    (A) Analysis of methods.--Analyze methods used by 
                terrorists to travel internationally, particularly the 
                use of false or altered travel documents to illegally 
                enter foreign countries and the United States, and 
                advise the Bureau of Consular Affairs on changes to the 
                visa issuance process that could combat such methods, 
                including the introduction of new technologies into 
                such process.
                    (B) Identification of individuals and documents.--
                Identify, in cooperation with the Human Trafficking and 
                Smuggling Center, individuals who facilitate travel by 
                the creation of false passports and visas, documents 
                used to obtain such passports and visas, and other 
                types of travel documents, and ensure that the 
                appropriate agency is notified for further 
                investigation and prosecution or, in the case of such 
                individuals abroad for which no further investigation 
                or prosecution is initiated, ensure that all 
                appropriate information is shared with foreign 
                governments in order to facilitate investigation, 
                arrest, and prosecution of such individuals.
                    (C) Identification of foreign countries needing 
                assistance.--Identify foreign countries that need 
                technical assistance, such as law reform, 
                administrative reform, prosecutorial training, or 
                assistance to police and other investigative services, 
                to ensure passport, visa, and related document security 
                and to investigate, arrest, and prosecute individuals 
                who facilitate travel by the creation of false 
                passports and visas, documents used to obtain such 
                passports and visas, and other types of travel 
                documents.
                    (D) Inspection of applications.--Randomly inspect 
                visa and passport applications for accuracy, 
                efficiency, and fraud, especially at high terrorist 
                threat posts, in order to prevent a recurrence of the 
                issuance of visas to those who submit incomplete, 
                fraudulent, or otherwise irregular or incomplete 
                applications.
            (3) Report.--Not later than 90 days after the date of the 
        enactment of this Act, the Deputy Assistant Secretary shall 
        submit to Congress a report containing--
                    (A) a description of the strategic plan prepared 
                under paragraph (1); and
                    (B) an evaluation of the feasibility of 
                establishing civil service positions in field offices 
                of the Bureau of Diplomatic Security to investigate 
                visa and passport fraud, including an evaluation of 
                whether to allow diplomatic security agents to convert 
                to civil service officers to fill such positions.

                      Subtitle D--Terrorist Travel

SEC. 3101. INFORMATION SHARING AND COORDINATION.

    The Secretary of Homeland Security shall establish a mechanism to--
            (1) ensure the coordination and dissemination of terrorist 
        travel intelligence and operational information among the 
        appropriate agencies within the Department of Homeland 
        Security, including the Bureau of Customs and Border 
        Protection, the Bureau of Immigration and Customs Enforcement, 
        the Bureau of Citizenship and Immigration Services, the 
        Transportation Security Administration, the Coast Guard, and 
        other agencies as directed by the Secretary; and
            (2) ensure the sharing of terrorist travel intelligence and 
        operational information with the Department of State, the 
        National counterterrorism Center, and other appropriate Federal 
        agencies.

SEC. 3102. TERRORIST TRAVEL PROGRAM.

    The Secretary of Homeland Security shall establish a program to--
            (1) analyze and utilize information and intelligence 
        regarding terrorist travel tactics, patterns, trends, and 
        practices; and
            (2) disseminate that information to all front-line 
        Department of Homeland Security personnel who are at ports of 
        entry or between ports of entry, to immigration benefits 
        offices, and, in coordination with the Secretary of State, to 
        appropriate individuals at United States embassies and 
        consulates.

SEC. 3103. TRAINING PROGRAM.

    (a) Review, Evaluation, and Revision of Existing Training 
Programs.--The Secretary of Homeland Security shall--
            (1) review and evaluate the training currently provided to 
        Department of Homeland Security personnel and, in consultation 
        with the Secretary of State, relevant Department of State 
        personnel with respect to travel and identity documents, and 
        techniques, patterns, and trends associated with terrorist 
        travel; and
            (2) develop and implement a revised training program for 
        border, immigration, and consular officials in order to teach 
        such officials how to effectively detect, intercept, and 
        disrupt terrorist travel.
    (b) Required Topics of Revised Programs.--The training program 
developed under subsection (a)(2) shall include training in the 
following areas:
            (1) Methods for identifying fraudulent and genuine travel 
        documents.
            (2) Methods for detecting terrorist indicators on travel 
        documents and other relevant identity documents.
            (3) Recognizing travel patterns, tactics, and behaviors 
        exhibited by terrorists.
            (4) Effectively utilizing information contained in 
        databases and data systems available to the Department of 
        Homeland Security.
            (5) Other topics determined to be appropriate by the 
        Secretary of Homeland Security in consultation with the 
        Secretary of State or the National Intelligence Director.

SEC. 3104. TECHNOLOGY ACQUISITION AND DISSEMINATION PLAN.

    (a) Plan Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Homeland Security, in 
consultation with the Secretary of State, shall submit to the Congress 
a plan to ensure that the Department of Homeland Security and the 
Department of State acquire and deploy, to all consulates, ports of 
entry, and immigration benefits offices, technologies that facilitate 
document authentication and the detection of potential terrorist 
indicators on travel documents.
    (b) Interoperability Requirement.--To the extent possible, 
technologies to be acquired and deployed under the plan shall be 
compatible with current systems used by the Department of Homeland 
Security to detect and identify fraudulent documents and genuine 
documents.
    (c) Passport Screening.--The plan shall address the feasibility of 
using such technologies to screen passports submitted for 
identification purposes to a United States consular, border, or 
immigration official.

               Subtitle E--Maritime Security Requirements

SEC. 3111. DEADLINES FOR IMPLEMENTATION OF MARITIME SECURITY 
              REQUIREMENTS.

    (a) National Maritime Transportation Security Plan.--Section 
70103(a) of the 46, United States Code, is amended by striking ``The 
Secretary'' and inserting ``Not later than December 31, 2004, the 
Secretary''.
    (b) Facility and Vessel Vulnerability Assessments.--Section 
70102(b)(1) of the 46, United States Code, is amended by striking ``, 
the Secretary'' and inserting ``and by not later than December 31, 
2004, the Secretary''.
    (c) Transportation Security Card Regulations.--Section 70105(a) of 
the 46, United States Code, is amended by striking ``The Secretary'' 
and inserting ``Not later than December 31, 2004, the Secretary''.

          TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

         Subtitle A--Attack Terrorists and Their Organizations

        CHAPTER 1--PROVISIONS RELATING TO TERRORIST SANCTUARIES

SEC. 4001. UNITED STATES POLICY ON TERRORIST SANCTUARIES.

    It is the sense of Congress that it should be the policy of the 
United States--
            (1) to identify and prioritize foreign countries that are 
        or that could be used as terrorist sanctuaries;
            (2) to assess current United States resources being 
        provided to such foreign countries;
            (3) to develop and implement a coordinated strategy to 
        prevent terrorists from using such foreign countries as 
        sanctuaries; and
            (4) to work in bilateral and multilateral fora to prevent 
        foreign countries from being used as terrorist sanctuaries.

SEC. 4002. REPORTS ON TERRORIST SANCTUARIES.

    (a) Initial Report.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall transmit to 
        Congress a report that describes a strategy for addressing and, 
        where possible, eliminating terrorist sanctuaries.
            (2) Content.--The report required under this subsection 
        shall include the following:
                    (A) A list that prioritizes each actual and 
                potential terrorist sanctuary and a description of 
                activities in the actual and potential sanctuaries.
                    (B) An outline of strategies for preventing the use 
                of, disrupting, or ending the use of such sanctuaries.
                    (C) A detailed description of efforts, including an 
                assessment of successes and setbacks, by the United 
                States to work with other countries in bilateral and 
                multilateral fora to address or eliminate each actual 
                or potential terrorist sanctuary and disrupt or 
                eliminate the security provided to terrorists by each 
                such sanctuary.
                    (D) A description of long-term goals and actions 
                designed to reduce the conditions that allow the 
                formation of terrorist sanctuaries.
    (b) Subsequent Reports.--
            (1) Requirement of reports.--Section 140(a)(1) of the 
        Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 
        (22 U.S.C. 2656f(a)(1)) is amended--
                    (A) by striking ``(1)'' and inserting ``(1)(A)'';
                    (B) by redesignating subparagraphs (A) through (C) 
                as clauses (i) through (iii), respectively;
                    (C) in subparagraph (A)(iii) (as redesignated), by 
                adding ``and'' at the end; and
                    (D) by adding at the end the following:
            ``(B) detailed assessments with respect to each foreign 
        country whose territory is being used or could potentially be 
        used as a sanctuary for terrorists or terrorist 
        organizations;''.
            (2) Provisions to be included in report.--Section 140(b) of 
        such Act (22 U.S.C. 2656f(b)) is amended--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``subsection (a)(1)'' and 
                        inserting ``subsection (a)(1)(A)''; and
                            (ii) by striking ``and'' at the end;
                    (B) by redesignating paragraph (2) as paragraph 
                (3);
                    (C) by inserting after paragraph (1) the following:
            ``(2) with respect to subsection (a)(1)(B)--
                    ``(A) the extent of knowledge by the government of 
                the country with respect to terrorist activities in the 
                territory of the country; and
                    ``(B) the actions by the country--
                            ``(i) to eliminate each terrorist sanctuary 
                        in the territory of the country;
                            ``(ii) to cooperate with United States 
                        antiterrorism efforts; and
                            ``(iii) to prevent the proliferation of and 
                        trafficking in weapons of mass destruction in 
                        and through the territory of the country;'';
                    (D) by striking the period at the end of paragraph 
                (3) (as redesignated) and inserting a semicolon; and
                    (E) by inserting after paragraph (3) (as 
                redesignated) the following:
            ``(4) a strategy for addressing and, where possible, 
        eliminating terrorist sanctuaries that shall include--
                    ``(A) a description of actual and potential 
                terrorist sanctuaries, together with an assessment of 
                the priorities of addressing and eliminating such 
                sanctuaries;
                    ``(B) an outline of strategies for disrupting or 
                eliminating the security provided to terrorists by such 
                sanctuaries;
                    ``(C) a description of efforts by the United States 
                to work with other countries in bilateral and 
                multilateral fora to address or eliminate actual or 
                potential terrorist sanctuaries and disrupt or 
                eliminate the security provided to terrorists by such 
                sanctuaries; and
                    ``(D) a description of long-term goals and actions 
                designed to reduce the conditions that allow the 
                formation of terrorist sanctuaries;
            ``(5) an update of the information contained in the report 
        required to be transmitted to Congress pursuant to section 
        4002(a)(2) of the 9/11 Recommendations Implementation Act;
            ``(6) to the extent practicable, complete statistical 
        information on the number of individuals, including United 
        States citizens and dual nationals, killed, injured, or 
        kidnapped by each terrorist group during the preceding calendar 
        year; and
            ``(7) an analysis, as appropriate, relating to trends in 
        international terrorism, including changes in technology used, 
        methods and targets of attacks, demographic information on 
        terrorists, and other appropriate information.''.
            (3) Definitions.--Section 140(d) of such Act (22 U.S.C. 
        2656f(d)) is amended--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(4) the term `territory' and `territory of the country' 
        means the land, waters, and airspace of the country; and
            ``(5) the term `terrorist sanctuary' or `sanctuary' means 
        an area in the territory of a country that is used by a 
        terrorist group with the express or implied consent of the 
        government of the country--
                    ``(A) to carry out terrorist activities, including 
                training, fundraising, financing, recruitment, and 
                education activities; or
                    ``(B) to provide transit through the country.''.
            (4) Effective date.--The amendments made by paragraphs (1), 
        (2), and (3) apply with respect to the report required to be 
        transmitted under section 140 of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989, by April 30, 
        2006, and by April 30 of each subsequent year.

SEC. 4003. AMENDMENTS TO EXISTING LAW TO INCLUDE TERRORIST SANCTUARIES.

    (a) Amendments.--Section 6(j) of the Export Administration Act of 
1979 (50 U.S.C. App. 2405(j)) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following:
            ``(B) Any part of the territory of the country is being 
        used as a sanctuary for terrorists or terrorist 
        organizations.'';
            (2) in paragraph (3), by striking ``paragraph (1)(A)'' and 
        inserting ``subparagraph (A) or (B) of paragraph (1)'';
            (3) by redesignating paragraph (5) as paragraph (6);
            (4) by inserting after paragraph (4) the following:
    ``(5) A determination made by the Secretary of State under 
paragraph (1)(B) may not be rescinded unless the President submits to 
the Speaker of the House of Representatives and the chairman of the 
Committee on Banking, Housing, and Urban Affairs and the chairman of 
the Committee on Foreign Relations of the Senate before the proposed 
rescission would take effect a report certifying that the government of 
the country concerned --
            ``(A) is taking concrete, verifiable steps to eliminate 
        each terrorist sanctuary in the territory of the country;
            ``(B) is cooperating with United States antiterrorism 
        efforts; and
            ``(C) is taking all appropriate actions to prevent the 
        proliferation of and trafficking in weapons of mass destruction 
        in and through the territory of the country.''; and
            (5) by inserting after paragraph (6) (as redesignated) the 
        following:
    ``(7) In this subsection--
            ``(A) the term `territory of the country' means the land, 
        waters, and airspace of the country; and
            ``(B) the term `terrorist sanctuary' or `sanctuary' means 
        an area in the territory of a country that is used by a 
        terrorist group with the express or implied consent of the 
        government of the country--
                    ``(i) to carry out terrorist activities, including 
                training, fundraising, financing, recruitment, and 
                education activities; or
                    ``(ii) to provide transit through the country.''.
    (b) Implementation.--The President shall implement the amendments 
made by subsection (a) by exercising the authorities the President has 
under the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.).

                      CHAPTER 2--OTHER PROVISIONS

SEC. 4011. APPOINTMENTS TO FILL VACANCIES IN ARMS CONTROL AND 
              NONPROLIFERATION ADVISORY BOARD.

    (a) Requirement.--Not later than December 31, 2004, the Secretary 
of State shall appoint individuals to the Arms Control and 
Nonproliferation Advisory Board to fill all vacancies in the membership 
of the Board that exist on the date of the enactment of this Act.
    (b) Consultation.--Appointments to the Board under subsection (a) 
shall be made in consultation with the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate.

SEC. 4012. REVIEW OF UNITED STATES POLICY ON PROLIFERATION OF WEAPONS 
              OF MASS DESTRUCTION AND CONTROL OF STRATEGIC WEAPONS.

    (a) Review.--
            (1) In general.--The Undersecretary of State for Arms 
        Control and International Security shall instruct the Arms 
        Control and Nonproliferation Advisory Board (in this section 
        referred to as the ``Advisory Board'') to carry out a review of 
        existing policies of the United States relating to the 
        proliferation of weapons of mass destruction and the control of 
        strategic weapons.
            (2) Components.--The review required under this subsection 
        shall contain at a minimum the following:
                    (A) An identification of all major deficiencies in 
                existing United States policies relating to the 
                proliferation of weapons of mass destruction and the 
                control of strategic weapons.
                    (B) Proposals that contain a range of options that 
                if implemented would adequately address any significant 
                threat deriving from the deficiencies in existing 
                United States policies described in subparagraph (A).
    (b) Reports.--
            (1) Interim report.--Not later than June 15, 2005, the 
        Advisory Board shall prepare and submit to the Undersecretary 
        of State for Arms Control and International Security an interim 
        report that contains the initial results of the review carried 
        out pursuant to subsection (a).
            (2) Final report.--Not later than December 1, 2005, the 
        Advisory Board shall prepare and submit to the Undersecretary 
        of State for Arms Control and International Security, and to 
        the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate, a final report that contains the comprehensive results 
        of the review carried out pursuant to subsection (a).
    (c) Experts and Consultants.--In carrying out this section, the 
Advisory Board may procure temporary and intermittent services of 
experts and consultants, including experts and consultants from 
nongovernmental organizations, under section 3109(b) of title 5, United 
States Code.
    (d) Funding and Other Resources.--The Secretary of State shall 
provide to the Advisory Board an appropriate amount of funding and 
other resources to enable the Advisory Board to carry out this section.

SEC. 4013. INTERNATIONAL AGREEMENTS TO INTERDICT ACTS OF INTERNATIONAL 
              TERRORISM.

    Section 1(e)(2) of the State Department Basic Authorities Act of 
1956 (22 U.S.C. 2651a(e)(2)), as amended by section 3091(b), is further 
amended by adding at the end the following:
                    ``(D) Additional duties relating to international 
                agreements to interdict acts of international 
                terrorism.--
                            ``(i) In general.--In addition to the 
                        principal duties of the Coordinator described 
                        in subparagraph (B), the Coordinator, in 
                        consultation with relevant United States 
                        Government agencies, shall seek to negotiate on 
                        a bilateral basis international agreements 
                        under which parties to an agreement work in 
                        partnership to address and interdict acts of 
                        international terrorism.
                            ``(ii) Terms of international agreement.--
                        It is the sense of Congress that--
                                    ``(I) each party to an 
                                international agreement referred to in 
                                clause (i)--
                                            ``(aa) should be in full 
                                        compliance with United Nations 
                                        Security Council Resolution 
                                        1373 (September 28, 2001), 
                                        other appropriate international 
                                        agreements relating to 
                                        antiterrorism measures, and 
                                        such other appropriate criteria 
                                        relating to antiterrorism 
                                        measures;
                                            ``(bb) should sign and 
                                        adhere to a `counterterrorism 
                                        Pledge' and a list of 
                                        `Interdiction Principles', to 
                                        be determined by the parties to 
                                        the agreement;
                                            ``(cc) should identify 
                                        assets and agree to 
                                        multilateral efforts that 
                                        maximizes the country's 
                                        strengths and resources to 
                                        address and interdict acts of 
                                        international terrorism or the 
                                        financing of such acts;
                                            ``(dd) should agree to 
                                        joint training exercises among 
                                        the other parties to the 
                                        agreement; and
                                            ``(ee) should agree to the 
                                        negotiation and implementation 
                                        of other relevant international 
                                        agreements and consensus-based 
                                        international standards; and
                                    ``(II) an international agreement 
                                referred to in clause (i) should 
                                contain provisions that require the 
                                parties to the agreement--
                                            ``(aa) to identify regions 
                                        throughout the world that are 
                                        emerging terrorist threats;
                                            ``(bb) to establish 
                                        terrorism interdiction centers 
                                        in such regions and other 
                                        regions, as appropriate;
                                            ``(cc) to deploy terrorism 
                                        prevention teams to such 
                                        regions, including United 
                                        States-led teams; and
                                            ``(dd) to integrate 
                                        intelligence, military, and law 
                                        enforcement personnel from 
                                        countries that are parties to 
                                        the agreement in order to work 
                                        directly with the regional 
                                        centers described in item (bb) 
                                        and regional teams described in 
                                        item (cc).''.

SEC. 4014. EFFECTIVE COALITION APPROACH TOWARD DETENTION AND HUMANE 
              TREATMENT OF CAPTURED TERRORISTS.

    It is the sense of Congress that the President should pursue by all 
appropriate diplomatic means with countries that are participating in 
the Coalition to fight terrorism the development of an effective 
approach toward the detention and humane treatment of captured 
terrorists. The effective approach referred to in this section may, as 
appropriate, draw on Article 3 of the Convention Relative to the 
Treatment of Prisoners of War, done at Geneva on August 12, 1949 (6 UST 
3316).

SEC. 4015. SENSE OF CONGRESS AND REPORT REGARDING COUNTER-DRUG EFFORTS 
              IN AFGHANISTAN.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the President should make the substantial reduction of 
        illegal drug production and trafficking in Afghanistan a 
        priority in the Global War on Terrorism;
            (2) the Secretary of Defense, in coordination with the 
        Secretary of State and the heads of other appropriate Federal 
        agencies, should expand cooperation with the Government of 
        Afghanistan and international organizations involved in 
        counter-drug activities to assist in providing a secure 
        environment for counter-drug personnel in Afghanistan; and
            (3) the United States, in conjunction with the Government 
        of Afghanistan and coalition partners, should undertake 
        additional efforts to reduce illegal drug trafficking and 
        related activities that provide financial support for terrorist 
        organizations in Afghanistan and neighboring countries.
    (b) Report Required.--(1) The Secretary of Defense and the 
Secretary of State shall jointly prepare a report that describes--
            (A) the progress made towards substantially reducing poppy 
        cultivation and heroin production capabilities in Afghanistan; 
        and
            (B) the extent to which profits from illegal drug activity 
        in Afghanistan are used to financially support terrorist 
        organizations and groups seeking to undermine the Government of 
        Afghanistan.
    (2) The report required by this subsection shall be submitted to 
Congress not later than 120 days after the date of the enactment of 
this Act.

         Subtitle B--Prevent the Continued Growth of Terrorism

               CHAPTER 1--UNITED STATES PUBLIC DIPLOMACY

SEC. 4021. ANNUAL REVIEW AND ASSESSMENT OF PUBLIC DIPLOMACY STRATEGY.

    (a) In General.--The Secretary of State, in coordination with all 
appropriate Federal agencies, shall submit to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate an annual assessment of 
the impact of public diplomacy efforts on target audiences. Each 
assessment shall review the United States public diplomacy strategy 
worldwide and by region, including an examination of the allocation of 
resources and an evaluation and assessment of the progress in, and 
barriers to, achieving the goals set forth under previous plans 
submitted under this section. Not later than March 15 of every year, 
the Secretary shall submit the assessment required by this subsection.
    (b) Further Action.-- On the basis of such review, the Secretary, 
in coordination with all appropriate Federal agencies, shall submit, as 
part of the annual budget submission, a public diplomacy strategy plan 
which specifies goals, agency responsibilities, and necessary resources 
and mechanisms for achieving such goals during the next fiscal year. 
The plan may be submitted in classified form.

SEC. 4022. PUBLIC DIPLOMACY TRAINING.

    (a) Statement of Policy.--It should be the policy of the United 
States:
            (1) The Foreign Service should recruit individuals with 
        expertise and professional experience in public diplomacy.
            (2) United States chiefs of mission should have a prominent 
        role in the formulation of public diplomacy strategies for the 
        countries and regions to which they are assigned and should be 
        accountable for the operation and success of public diplomacy 
        efforts at their posts.
            (3) Initial and subsequent training of Foreign Service 
        officers should be enhanced to include information and training 
        on public diplomacy and the tools and technology of mass 
        communication.
    (b) Personnel.--
            (1) Qualifications.--In the recruitment, training, and 
        assignment of members of the Foreign Service, the Secretary of 
        State shall emphasize the importance of public diplomacy and 
        applicable skills and techniques. The Secretary shall consider 
        the priority recruitment into the Foreign Service, at middle-
        level entry, of individuals with expertise and professional 
        experience in public diplomacy, mass communications, or 
        journalism. The Secretary shall give special consideration to 
        individuals with language facility and experience in particular 
        countries and regions.
            (2) Languages of special interest.--The Secretary of State 
        shall seek to increase the number of Foreign Service officers 
        proficient in languages spoken in predominantly Muslim 
        countries. Such increase shall be accomplished through the 
        recruitment of new officers and incentives for officers in 
        service.

SEC. 4023. PROMOTING DIRECT EXCHANGES WITH MUSLIM COUNTRIES.

    (a) Declaration of Policy.--Congress declares that the United 
States should commit to a long-term and sustainable investment in 
promoting engagement with people of all levels of society in countries 
with predominantly Muslim populations, particularly with youth and 
those who influence youth. Such an investment should make use of the 
talents and resources in the private sector and should include programs 
to increase the number of people who can be exposed to the United 
States and its fundamental ideas and values in order to dispel 
misconceptions. Such programs should include youth exchange programs, 
young ambassadors programs, international visitor programs, academic 
and cultural exchange programs, American Corner programs, library 
programs, journalist exchange programs, sister city programs, and other 
programs related to people-to-people diplomacy.
    (b) Sense of Congress.--It is the sense of Congress that the United 
States should significantly increase its investment in the people-to-
people programs described in subsection (a).

SEC. 4024. PUBLIC DIPLOMACY REQUIRED FOR PROMOTION IN FOREIGN SERVICE.

    (a) In General.--Section 603(b) of the Foreign Service Act of 1980 
(22 U.S.C. 4003(b)) is amended by adding at the end the following new 
sentences: ``The precepts for such selection boards shall also consider 
whether the member of the Service or the member of the Senior Foreign 
Service, as the case may be, has served in at least one position in 
which the primary responsibility of such member was related to public 
diplomacy. A member may not be promoted into or within the Senior 
Foreign Service if such member has not served in at least one such 
position.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 2009.

            CHAPTER 2--UNITED STATES MULTILATERAL DIPLOMACY

SEC. 4031. PURPOSE.

    It is the purpose of this chapter to strengthen United States 
leadership and effectiveness at international organizations and 
multilateral institutions.

SEC. 4032. SUPPORT AND EXPANSION OF DEMOCRACY CAUCUS.

    (a) In General.--The President, acting through the Secretary of 
State and the relevant United States chiefs of mission, shall--
            (1) continue to strongly support and seek to expand the 
        work of the democracy caucus at the United Nations General 
        Assembly and the United Nations Human Rights Commission; and
            (2) seek to establish a democracy caucus at the United 
        Nations Conference on Disarmament and at other broad-based 
        international organizations.
    (b) Purposes of the Caucus.--A democracy caucus at an international 
organization should--
            (1) forge common positions, including, as appropriate, at 
        the ministerial level, on matters of concern before the 
        organization and work within and across regional lines to 
        promote agreed positions;
            (2) work to revise an increasingly outmoded system of 
        membership selection, regional voting, and decision making; and
            (3) establish a rotational leadership agreement to provide 
        member countries an opportunity, for a set period of time, to 
        serve as the designated president of the caucus, responsible 
        for serving as its voice in each organization.

SEC. 4033. LEADERSHIP AND MEMBERSHIP OF INTERNATIONAL ORGANIZATIONS.

    (a) United States Policy.--The President, acting through the 
Secretary of State, the relevant United States chiefs of mission, and, 
where appropriate, the Secretary of the Treasury, shall use the voice, 
vote, and influence of the United States to--
            (1) where appropriate, reform the criteria for leadership 
        and, in appropriate cases, for membership, at all United 
        Nations bodies and at other international organizations and 
        multilateral institutions to which the United States is a 
        member so as to exclude countries that violate the principles 
        of the specific organization;
            (2) make it a policy of the United Nations and other 
        international organizations and multilateral institutions of 
        which the United States is a member that a member country may 
        not stand in nomination for membership or in nomination or in 
        rotation for a leadership position in such bodies if the member 
        country is subject to sanctions imposed by the United Nations 
        Security Council; and
            (3) work to ensure that no member country stand in 
        nomination for membership, or in nomination or in rotation for 
        a leadership position in such organizations, or for membership 
        on the United Nations Security Council, if the member country 
        is subject to a determination under section 6(j)(1)(A) of the 
        Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j)(1)(A)), section 620A(a) of the Foreign Assistance Act 
        of 1961 (22 U.S.C. 2371(a)), or section 40(d) of the Arms 
        Export Control Act (22 U.S.C. 2780(d)).
    (b) Report to Congress.--Not later than 15 days after a country 
subject to a determination under one or more of the provisions of law 
specified in subsection (a)(3) is selected for membership or a 
leadership post in an international organization of which the United 
States is a member or for membership on the United Nations Security 
Council, the Secretary of State shall submit to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate a report on any steps 
taken pursuant to subsection (a)(3).

SEC. 4034. INCREASED TRAINING IN MULTILATERAL DIPLOMACY.

    (a) Training Programs.--Section 708 of the Foreign Service Act of 
1980 (22 U.S.C. 4028) is amended by adding at the end the following new 
subsection:
    ``(c) Training in Multilateral Diplomacy.--
            ``(1) In general.--The Secretary shall establish a series 
        of training courses for officers of the Service, including 
        appropriate chiefs of mission, on the conduct of diplomacy at 
        international organizations and other multilateral institutions 
        and at broad-based multilateral negotiations of international 
        instruments.
            ``(2) Particular programs.--The Secretary shall ensure that 
        the training described in paragraph (1) is provided at various 
        stages of the career of members of the service. In particular, 
        the Secretary shall ensure that after January 1, 2006--
                    ``(A) officers of the Service receive training on 
                the conduct of diplomacy at international organizations 
                and other multilateral institutions and at broad-based 
                multilateral negotiations of international instruments 
                as part of their training upon entry into the Service; 
                and
                    ``(B) officers of the Service, including chiefs of 
                mission, who are assigned to United States missions 
                representing the United States to international 
                organizations and other multilateral institutions or 
                who are assigned in Washington, D.C., to positions that 
                have as their primary responsibility formulation of 
                policy towards such organizations and institutions or 
                towards participation in broad-based multilateral 
                negotiations of international instruments, receive 
                specialized training in the areas described in 
                paragraph (1) prior to beginning of service for such 
                assignment or, if receiving such training at that time 
                is not practical, within the first year of beginning 
                such assignment.''.
    (b) Training for Civil Service Employees.--The Secretary shall 
ensure that employees of the Department of State who are members of the 
civil service and who are assigned to positions described in section 
708(c) of the Foreign Service Act of 1980 (as amended by subsection 
(a)) receive training described in such section.
    (c) Conforming Amendments.--Section 708 of such Act is further 
amended--
            (1) in subsection (a), by striking ``(a) The'' and 
        inserting ``(a) Training on Human Rights.--The''; and
            (2) in subsection (b), by striking ``(b) The'' and 
        inserting ``(b) Training on Refugee Law and Religious 
        Persecution.--The''.

SEC. 4035. IMPLEMENTATION AND ESTABLISHMENT OF OFFICE ON MULTILATERAL 
              NEGOTIATIONS.

    (a) Establishment of Office.--The Secretary of State is authorized 
to establish, within the Bureau of International Organizational 
Affairs, an Office on Multilateral Negotiations to be headed by a 
Special Representative for Multilateral Negotiations (in this section 
referred to as the ``Special Representative'').
    (b) Appointment.--The Special Representative shall be appointed by 
the President and shall have the rank of Ambassador-at-Large. At the 
discretion of the President another official at the Department may 
serve as the Special Representative.
    (c) Staffing.--The Special Representative shall have a staff of 
Foreign Service and civil service officers skilled in multilateral 
diplomacy.
    (d) Duties.--The Special Representative shall have the following 
responsibilities:
            (1) In general.--The primary responsibility of the Special 
        Representative shall be to assist in the organization of, and 
        preparation for, United States participation in multilateral 
        negotiations, including advocacy efforts undertaken by the 
        Department of State and other United States Government 
        agencies.
            (2) Consultations.--The Special Representative shall 
        consult with Congress, international organizations, 
        nongovernmental organizations, and the private sector on 
        matters affecting multilateral negotiations.
            (3) Advisory role.--The Special Representative shall advise 
        the Assistant Secretary for International Organizational 
        Affairs and, as appropriate, the Secretary of State, regarding 
        advocacy at international organizations, multilateral 
        institutions, and negotiations, and shall make recommendations 
        regarding--
                    (A) effective strategies (and tactics) to achieve 
                United States policy objectives at multilateral 
                negotiations;
                    (B) the need for and timing of high level 
                intervention by the President, the Secretary of State, 
                the Deputy Secretary of State, and other United States 
                officials to secure support from key foreign government 
                officials for United States positions at such 
                organizations, institutions, and negotiations; and
                    (C) the composition of United States delegations to 
                multilateral negotiations.
            (4) Annual diplomatic missions of multilateral issues.--The 
        Special Representative, in coordination with the Assistant 
        Secretary for International Organizational Affairs, shall 
        organize annual diplomatic missions to appropriate foreign 
        countries to conduct consultations between principal officers 
        responsible for advising the Secretary of State on 
        international organizations and high-level representatives of 
        the governments of such foreign countries to promote the United 
        States agenda at the United Nations General Assembly and other 
        key international fora (such as the United Nations Human Rights 
        Commission).
            (5) Leadership and membership of international 
        organizations.--The Special Representative, in coordination 
        with the Assistant Secretary of International Organizational 
        Affairs, shall direct the efforts of the United States to 
        reform the criteria for leadership of and membership in 
        international organizations as described in section 4033.
            (6) Participation in multilateral negotiations.--The 
        Secretary of State may direct the Special Representative to 
        serve as a member of a United States delegation to any 
        multilateral negotiation.
            (7) Coordination with the department of the treasury.--
                    (A) Coordination and consultation.--The Special 
                Representative shall coordinate and consult with the 
                relevant staff at the Department of the Treasury in 
                order to prepare recommendations for the Secretary of 
                State regarding multilateral negotiations involving 
                international financial institutions and other 
                multilateral financial policymaking bodies.
                    (B) Negotiating authority clarified.--
                Notwithstanding any other provision of law, the 
                Secretary of the Treasury shall remain the lead 
                representative and lead negotiator for the United 
                States within the international financial institutions 
                and other multilateral financial policymaking bodies.
                    (C) Definitions.--In this paragraph:
                            (i) International financial institutions.--
                        The term ``international financial 
                        institutions'' has the meaning given in section 
                        1701(c)(2) of the International Financial 
                        Institutions Act.
                            (ii) Other multilateral financial 
                        policymaking bodies.--The term ``other 
                        multilateral financial policymaking bodies'' 
                        means--
                                    (I) the Financial Action Task Force 
                                at the Organization for Economic 
                                Cooperation and Development;
                                    (II) the international network of 
                                financial intelligence units known as 
                                the ``Egmont Group'';
                                    (III) the United States, Canada, 
                                the United Kingdom, France, Germany, 
                                Italy, Japan, and Russia, when meeting 
                                as the Group of Eight; and
                                    (IV) any other multilateral 
                                financial policymaking group in which 
                                the Secretary of the Treasury 
                                represents the United States.
                            (iii) Financial action task force.--The 
                        term ``Financial Action Task Force'' means the 
                        international grouping of countries that meets 
                        periodically to address issues related to money 
                        laundering, terrorist financing, and other 
                        financial crimes.

                      CHAPTER 3--OTHER PROVISIONS

SEC. 4041. PILOT PROGRAM TO PROVIDE GRANTS TO AMERICAN-SPONSORED 
              SCHOOLS IN PREDOMINANTLY MUSLIM COUNTRIES TO PROVIDE 
              SCHOLARSHIPS.

    (a) Findings.--Congress finds the following:
            (1) During the 2003-2004 school year, the Office of 
        Overseas Schools of the Department of State is financially 
        assisting 189 elementary and secondary schools in foreign 
        countries.
            (2) American-sponsored elementary and secondary schools are 
        located in more than 20 countries with significant Muslim 
        populations in the Near East, Africa, South Asia, Central Asia, 
        and East Asia.
            (3) American-sponsored elementary and secondary schools 
        provide an American-style education in English, with curricula 
        that typically include an emphasis on the development of 
        critical thinking and analytical skills.
    (b) Purpose.--The United States has an interest in increasing the 
level of financial support provided to American-sponsored elementary 
and secondary schools in predominantly Muslim countries, in order to--
            (1) increase the number of students in such countries who 
        attend such schools;
            (2) increase the number of young people who may thereby 
        gain at any early age an appreciation for the culture, society, 
        and history of the United States; and
            (3) increase the number of young people who may thereby 
        improve their proficiency in the English language.
    (c) Pilot Program Authorized.--The Secretary of State, acting 
through the Director of the Office of Overseas Schools of the 
Department of State, may conduct a pilot program to make grants to 
American-sponsored elementary and secondary schools in predominantly 
Muslim countries for the purpose of providing full or partial merit-
based scholarships to students from lower- and middle-income families 
of such countries to attend such schools.
    (d) Determination of Eligible Students.--For purposes of expending 
grant funds, an American-sponsored elementary and secondary school that 
receives a grant under subsection (c) is authorized to establish 
criteria to be implemented by such school to determine what constitutes 
lower- and middle-income families in the country (or region of the 
country, if regional variations in income levels in the country are 
significant) in which such school is located.
    (e) Restriction on Use of Funds.--Amounts appropriated to the 
Secretary of State pursuant to the authorization of appropriations in 
subsection (h) shall be used for the sole purpose of making grants 
under this section, and may not be used for the administration of the 
Office of Overseas Schools of the Department of State or for any other 
activity of the Office.
    (f) Voluntary Participation.--Nothing in this section shall be 
construed to require participation in the pilot program by an American-
sponsored elementary or secondary school in a predominantly Muslim 
country.
    (g) Report.--Not later than April 15, 2006, the Secretary shall 
submit to the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
report on the pilot program. The report shall assess the success of the 
program, examine any obstacles encountered in its implementation, and 
address whether it should be continued, and if so, provide 
recommendations to increase its effectiveness.
    (h) Funding.--There are authorized to be appropriated to the 
Secretary of State such sums as may be necessary for each of fiscal 
years 2005, 2006, and 2007 to carry out this section.

SEC. 4042. ENHANCING FREE AND INDEPENDENT MEDIA.

    (a) Findings.--Congress makes the following findings:
            (1) Freedom of speech and freedom of the press are 
        fundamental human rights.
            (2) The United States has a national interest in promoting 
        these freedoms by supporting free media abroad, which is 
        essential to the development of free and democratic societies 
        consistent with our own.
            (3) Free media is undermined, endangered, or nonexistent in 
        many repressive and transitional societies around the world, 
        including in Eurasia, Africa, and the Middle East.
            (4) Individuals lacking access to a plurality of free media 
        are vulnerable to misinformation and propaganda and are 
        potentially more likely to adopt anti-American views.
            (5) Foreign governments have a responsibility to actively 
        and publicly discourage and rebut unprofessional and unethical 
        media while respecting journalistic integrity and editorial 
        independence.
    (b) Statements of Policy.--It shall be the policy of the United 
States, acting through the Secretary of State, to--
            (1) ensure that the promotion of press freedoms and free 
        media worldwide is a priority of United States foreign policy 
        and an integral component of United States public diplomacy;
            (2) respect the journalistic integrity and editorial 
        independence of free media worldwide; and
            (3) ensure that widely accepted standards for professional 
        and ethical journalistic and editorial practices are employed 
        when assessing international media.
    (c) Grants to Private Sector Group to Establish Media Network.--
            (1) In general.--Grants made available to the National 
        Endowment for Democracy (NED) pursuant to paragraph (3) shall 
        be used by NED to provide funding to a private sector group to 
        establish and manage a free and independent media network in 
        accordance with paragraph (2).
            (2) Purpose.--The purpose of the network shall be to 
        provide an effective forum to convene a broad range of 
        individuals, organizations, and governmental participants 
        involved in journalistic activities and the development of free 
        and independent media to--
                    (A) fund a clearinghouse to collect and share 
                information concerning international media development 
                and training;
                    (B) improve research in the field of media 
                assistance and program evaluation to better inform 
                decisions regarding funding and program design for 
                government and private donors;
                    (C) explore the most appropriate use of existing 
                means to more effectively encourage the involvement of 
                the private sector in the field of media assistance; 
                and
                    (D) identify effective methods for the development 
                of a free and independent media in societies in 
                transition.
            (3) Funding.--For grants made by the Department of State to 
        NED as authorized by the National Endowment for Democracy Act 
        (Public Law 98-164, 97 Stat. 1039), there are authorized to be 
        appropriated to the Secretary of State such sums as may be 
        necessary for each of fiscal years 2005, 2006, and 2007 to 
        carry out this section.

SEC. 4043. COMBATING BIASED OR FALSE FOREIGN MEDIA COVERAGE OF THE 
              UNITED STATES.

    (a) Findings.--Congress finds the following:
            (1) Biased or false media coverage of the United States and 
        its allies is a significant factor encouraging terrorist acts 
        against the people of the United States.
            (2) Public diplomacy efforts designed to encourage an 
        accurate understanding of the people of the United States and 
        the policies of the United States are unlikely to succeed if 
        foreign publics are subjected to unrelenting biased or false 
        local media coverage of the United States.
            (3) Where freedom of the press exists in foreign countries 
        the United States can combat biased or false media coverage by 
        responding in the foreign media or by communicating directly to 
        foreign publics in such countries.
            (4) Foreign governments which encourage biased or false 
        media coverage of the United States bear a significant degree 
        of responsibility for creating a climate within which terrorism 
        can flourish. Such governments are responsible for encouraging 
        biased or false media coverage if they--
                    (A) issue direct or indirect instructions to the 
                media to publish biased or false information regarding 
                the United States;
                    (B) make deliberately biased or false charges 
                expecting that such charges will be disseminated; or
                    (C) so severely constrain the ability of the media 
                to express criticism of any such government that one of 
                the few means of political expression available is 
                criticism of the United States.
    (b) Statements of Policy.--
            (1) Foreign governments.--It shall be the policy of the 
        United States to regard foreign governments as knowingly 
        engaged in unfriendly acts toward the United States if such 
        governments--
                    (A) instruct their state-owned or influenced media 
                to include content that is anti-American or prejudicial 
                to the foreign and security policies of the United 
                States; or
                    (B) make deliberately false charges regarding the 
                United States or permit false or biased charges against 
                the United States to be made while constraining normal 
                political discourse.
            (2) Seeking media access; responding to false charges.--It 
        shall be the policy of the United States to--
                    (A) seek access to the media in foreign countries 
                on terms no less favorable than those afforded any 
                other foreign entity or on terms available to the 
                foreign country in the United States; and
                    (B) combat biased or false media coverage in 
                foreign countries of the United States and its allies 
                by responding in the foreign media or by communicating 
                directly to foreign publics.
    (c) Responsibilities Regarding Biased or False Media Coverage.--
            (1) Secretary of state.--The Secretary of State shall 
        instruct chiefs of mission to report on and combat biased or 
        false media coverage originating in or received in foreign 
        countries to which such chiefs are posted. Based on such 
        reports and other information available to the Secretary, the 
        Secretary shall prioritize efforts to combat such media 
        coverage, giving special attention to audiences where fostering 
        popular opposition to terrorism is most important and such 
        media coverage is most prevalent.
            (2) Chiefs of mission.--Chiefs of mission shall have the 
        following responsibilities:
                    (A) Chiefs of mission shall give strong priority to 
                combatting biased or false media reports in foreign 
                countries to which such chiefs are posted regarding the 
                United States.
                    (B) Chiefs of mission posted to foreign countries 
                in which freedom of the press exists shall inform the 
                governments of such countries of the policies of the 
                United States regarding biased or false media coverage 
                of the United States, and shall make strong efforts to 
                persuade such governments to change policies that 
                encourage such media coverage.
    (d) Reports.--Not later than 120 days after the date of the 
enactment of this Act and at least annually thereafter until January 1, 
2015, the Secretary shall submit to the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate a report regarding the major themes of biased 
or false media coverage of the United States in foreign countries, the 
actions taken to persuade foreign governments to change policies that 
encourage such media coverage (and the results of such actions), and 
any other actions taken to combat such media coverage in foreign 
countries.

SEC. 4044. REPORT ON BROADCAST OUTREACH STRATEGY.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the President shall transmit to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate a report on the strategy 
of the United States to expand its outreach to foreign Muslim audiences 
through broadcast media.
    (b) Content.--The report required under subsection (a) shall 
contain the following:
            (1) An assessment of the Broadcasting Board of Governors 
        and the public diplomacy activities of the Department of State 
        with respect to outreach to foreign Muslim audiences through 
        broadcast media.
            (2) An outline of recommended actions that the United 
        States should take to more regularly and comprehensively 
        present a United States point of view through indigenous 
        broadcast media in countries with sizeable Muslim populations, 
        including increasing appearances by United States Government 
        officials, experts, and citizens.
            (3) An assessment of potential incentives for, and costs 
        associated with, encouraging United States broadcasters to dub 
        or subtitle into Arabic and other relevant languages their news 
        and public affairs programs broadcast in Muslim countries in 
        order to present those programs to a much broader Muslim 
        audience than is currently reached.
            (4) An assessment of providing a training program in media 
        and press affairs for members of the Foreign Service.

SEC. 4045. OFFICE RELOCATION.

    As soon as practicable after the date of the enactment of this Act, 
the Secretary of State shall take such actions as are necessary to 
consolidate within the Harry S. Truman Building all offices of the 
Department of State that are responsible for the conduct of public 
diplomacy, including the Bureau of Educational and Cultural Affairs.

SEC. 4046. STRENGTHENING THE COMMUNITY OF DEMOCRACIES FOR MUSLIM 
              COUNTRIES.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States--
            (1) should work with the Community of Democracies to 
        discuss, develop, and refine policies and assistance programs 
        to support and promote political, economic, judicial, 
        educational, and social reforms in Muslim countries;
            (2) should, as part of that effort, secure support to 
        require countries seeking membership in the Community of 
        Democracies to be in full compliance with the Community's 
        criteria for participation, as established by the Community's 
        Convening Group, should work to ensure that the criteria are 
        part of a legally binding document, and should urge other donor 
        countries to use compliance with the criteria as a basis for 
        determining diplomatic and economic relations (including 
        assistance programs) with such participating countries; and
            (3) should seek support for international contributions to 
        the Community of Democracies and should seek authority for the 
        Community's Convening Group to oversee adherence and compliance 
        of participating countries with the criteria.
    (b) Middle East Partnership Initiative and Broader Middle East and 
North Africa Initiative .--Amounts made available to carry out the 
Middle East Partnership Initiative and the Broader Middle East and 
North Africa Initiative may be made available to the Community of 
Democracies in order to strengthen and expand its work with Muslim 
countries.
    (c) Report.--The Secretary of State shall include in the annual 
report entitled ``Supporting Human Rights and Democracy: The U.S. 
Record'' a description of efforts by the Community of Democracies to 
support and promote political, economic, judicial, educational, and 
social reforms in Muslim countries and the extent to which such 
countries meet the criteria for participation in the Community of 
Democracies.

  Subtitle C--Reform of Designation of Foreign Terrorist Organizations

SEC. 4051. DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.

    (a) Period of Designation.--Section 219(a)(4) of the Immigration 
and Nationality Act (8 U.S.C. 1189(a)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``Subject to paragraphs (5) and 
                (6), a'' and inserting ``A''; and
                    (B) by striking ``for a period of 2 years beginning 
                on the effective date of the designation under 
                paragraph (2)(B)'' and inserting ``until revoked under 
                paragraph (5) or (6) or set aside pursuant to 
                subsection (c)'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Review of designation upon petition.--
                            ``(i) In general.--The Secretary shall 
                        review the designation of a foreign terrorist 
                        organization under the procedures set forth in 
                        clauses (iii) and (iv) if the designated 
                        organization files a petition for revocation 
                        within the petition period described in clause 
                        (ii).
                            ``(ii) Petition period.--For purposes of 
                        clause (i)--
                                    ``(I) if the designated 
                                organization has not previously filed a 
                                petition for revocation under this 
                                subparagraph, the petition period 
                                begins 2 years after the date on which 
                                the designation was made; or
                                    ``(II) if the designated 
                                organization has previously filed a 
                                petition for revocation under this 
                                subparagraph, the petition period 
                                begins 2 years after the date of the 
                                determination made under clause (iv) on 
                                that petition.
                            ``(iii) Procedures.--Any foreign terrorist 
                        organization that submits a petition for 
                        revocation under this subparagraph must provide 
                        evidence in that petition that the relevant 
                        circumstances described in paragraph (1) have 
                        changed in such a manner as to warrant 
                        revocation with respect to the organization.
                            ``(iv) Determination.--
                                    ``(I) In general.--Not later than 
                                180 days after receiving a petition for 
                                revocation submitted under this 
                                subparagraph, the Secretary shall make 
                                a determination as to such revocation.
                                    ``(II) Classified information.--The 
                                Secretary may consider classified 
                                information in making a determination 
                                in response to a petition for 
                                revocation. Classified information 
                                shall not be subject to disclosure for 
                                such time as it remains classified, 
                                except that such information may be 
                                disclosed to a court ex parte and in 
                                camera for purposes of judicial review 
                                under subsection (c).
                                    ``(III) Publication of 
                                determination.--A determination made by 
                                the Secretary under this clause shall 
                                be published in the Federal Register.
                                    ``(IV) Procedures.--Any revocation 
                                by the Secretary shall be made in 
                                accordance with paragraph (6).''; and
            (3) by adding at the end the following:
                    ``(C) Other review of designation.--
                            ``(i) In general.--If in a 6-year period no 
                        review has taken place under subparagraph (B), 
                        the Secretary shall review the designation of 
                        the foreign terrorist organization in order to 
                        determine whether such designation should be 
                        revoked pursuant to paragraph (6).
                            ``(ii) Procedures.--If a review does not 
                        take place pursuant to subparagraph (B) in 
                        response to a petition for revocation that is 
                        filed in accordance with that subparagraph, 
                        then the review shall be conducted pursuant to 
                        procedures established by the Secretary. The 
                        results of such review and the applicable 
                        procedures shall not be reviewable in any 
                        court.
                            ``(iii) Publication of results of review.--
                        The Secretary shall publish any determination 
                        made pursuant to this subparagraph in the 
                        Federal Register.''.
    (b) Aliases.--Section 219 of the Immigration and Nationality Act (8 
U.S.C. 1189) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Amendments to a Designation.--
            ``(1) In general.--The Secretary may amend a designation 
        under this subsection if the Secretary finds that the 
        organization has changed its name, adopted a new alias, 
        dissolved and then reconstituted itself under a different name 
        or names, or merged with another organization.
            ``(2) Procedure.--Amendments made to a designation in 
        accordance with paragraph (1) shall be effective upon 
        publication in the Federal Register. Subparagraphs (B) and (C) 
        of subsection (a)(2) shall apply to an amended designation upon 
        such publication. Paragraphs (2)(A)(i), (4), (5), (6), (7), and 
        (8) of subsection (a) shall also apply to an amended 
        designation.
            ``(3) Administrative record.--The administrative record 
        shall be corrected to include the amendments as well as any 
        additional relevant information that supports those amendments.
            ``(4) Classified information.--The Secretary may consider 
        classified information in amending a designation in accordance 
        with this subsection. Classified information shall not be 
        subject to disclosure for such time as it remains classified, 
        except that such information may be disclosed to a court ex 
        parte and in camera for purposes of judicial review under 
        subsection (c).''.
    (c) Technical and Conforming Amendments.--Section 219 of the 
Immigration and Nationality Act (8 U.S.C. 1189) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3)(B), by striking ``subsection 
                (b)'' and inserting ``subsection (c)'';
                    (B) in paragraph (6)(A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``or a redesignation made under 
                        paragraph (4)(B)'' and inserting ``at any time, 
                        and shall revoke a designation upon completion 
                        of a review conducted pursuant to subparagraphs 
                        (B) and (C) of paragraph (4)''; and
                            (ii) in clause (i), by striking ``or 
                        redesignation'';
                    (C) in paragraph (7), by striking ``, or the 
                revocation of a redesignation under paragraph (6),''; 
                and
                    (D) in paragraph (8)--
                            (i) by striking ``, or if a redesignation 
                        under this subsection has become effective 
                        under paragraph (4)(B),''; and
                            (ii) by striking ``or redesignation''; and
            (2) in subsection (c), as so redesignated--
                    (A) in paragraph (1), by striking ``of the 
                designation in the Federal Register,'' and all that 
                follows through ``review of the designation'' and 
                inserting ``in the Federal Register of a designation, 
                an amended designation, or a determination in response 
                to a petition for revocation, the designated 
                organization may seek judicial review'';
                    (B) in paragraph (2), by inserting ``, amended 
                designation, or determination in response to a petition 
                for revocation'' after ``designation'';
                    (C) in paragraph (3), by inserting ``, amended 
                designation, or determination in response to a petition 
                for revocation'' after ``designation''; and
                    (D) in paragraph (4), by inserting ``, amended 
                designation, or determination in response to a petition 
                for revocation'' after ``designation'' each place that 
                term appears.
    (d) Savings Provision.--For purposes of applying section 219 of the 
Immigration and Nationality Act on or after the date of enactment of 
this Act, the term ``designation'', as used in that section, includes 
all redesignations made pursuant to section 219(a)(4)(B) of the 
Immigration and Nationality Act (8 U.S.C. 1189(a)(4)(B)) prior to the 
date of enactment of this Act, and such redesignations shall continue 
to be effective until revoked as provided in paragraph (5) or (6) of 
section 219(a) of the Immigration and Nationality Act (8 U.S.C. 
1189(a)).

SEC. 4052. INCLUSION IN ANNUAL DEPARTMENT OF STATE COUNTRY REPORTS ON 
              TERRORISM OF INFORMATION ON TERRORIST GROUPS THAT SEEK 
              WEAPONS OF MASS DESTRUCTION AND GROUPS THAT HAVE BEEN 
              DESIGNATED AS FOREIGN TERRORIST ORGANIZATIONS.

    (a) Inclusion in Reports.--Section 140 of the Foreign Relations 
Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f) is 
amended--
            (1) in subsection (a)(2)--
                    (A) by inserting ``any terrorist group known to 
                have obtained or developed, or to have attempted to 
                obtain or develop, weapons of mass destruction,'' after 
                ``during the preceding five years,''; and
                    (B) by inserting ``any group designated by the 
                Secretary as a foreign terrorist organization under 
                section 219 of the Immigration and Nationality Act (8 
                U.S.C. 1189),'' after ``Export Administration Act of 
                1979,'';
            (2) in subsection (b)(1)(C)(iii), by striking ``and'' at 
        the end;
            (3) in subsection (b)(1)(C)--
                    (A) by redesignating clause (iv) as clause (v); and
                    (B) by inserting after clause (iii) the following 
                new clause:
                            ``(iv) providing weapons of mass 
                        destruction, or assistance in obtaining or 
                        developing such weapons, to terrorists or 
                        terrorist groups; and''; and
            (4) in subsection (b)(3) (as redesignated by section 
        4002(b)(2)(B) of this Act)--
                    (A) by redesignating subparagraphs (C), (D), and 
                (E) as (D), (E), and (F), respectively; and
                    (B) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) efforts by those groups to obtain or develop 
                weapons of mass destruction;''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply beginning with the first report under section 140 of the Foreign 
Relations Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
2656f), submitted more than one year after the date of the enactment of 
this Act.

     Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

SEC. 4061. SHORT TITLE.

    This subtitle may be cited as the ``Afghanistan Freedom Support Act 
Amendments of 2004''.

SEC. 4062. COORDINATION OF ASSISTANCE FOR AFGHANISTAN.

    (a) Findings.--Congress finds that--
            (1) the Final Report of the National Commission on 
        Terrorist Attacks Upon the United States criticized the 
        provision of United States assistance to Afghanistan for being 
        too inflexible; and
            (2) the Afghanistan Freedom Support Act of 2002 (Public Law 
        107-327; 22 U.S.C. 7501 et seq.) contains provisions that 
        provide for flexibility in the provision of assistance for 
        Afghanistan and are not subject to the requirements of typical 
        foreign assistance programs and provide for the designation of 
        a coordinator to oversee United States assistance for 
        Afghanistan.
    (b) Designation of Coordinator.--Section 104(a) of the Afghanistan 
Freedom Support Act of 2002 (22 U.S.C. 7514(a)) is amended in the 
matter preceding paragraph (1) by striking ``is strongly urged to'' and 
inserting ``shall''.
    (c) Other Matters.--Section 104 of such Act (22 U.S.C. 7514) is 
amended by adding at the end the following:
    ``(c) Program Plan.--The coordinator designated under subsection 
(a) shall annually submit to the Committees on International Relations 
and Appropriations of the House of Representatives and the Committees 
on Foreign Relations and Appropriations of the Senate the 
Administration's plan for assistance to Afghanistan together with a 
description of such assistance in prior years.
    ``(d) Coordination With International Community.--The coordinator 
designated under subsection (a) shall work with the international 
community and the Government of Afghanistan to ensure that assistance 
to Afghanistan is implemented in a coherent, consistent, and efficient 
manner to prevent duplication and waste. The coordinator designated 
under subsection (a) shall work through the Secretary of the Treasury 
and the United States Executive Directors at the international 
financial institutions in order to effectuate these responsibilities 
within the international financial institutions. The term 
`international financial institution' has the meaning given in section 
1701(c)(2) of the International Financial Institutions Act.''.

SEC. 4063. GENERAL PROVISIONS RELATING TO THE AFGHANISTAN FREEDOM 
              SUPPORT ACT OF 2002.

    (a) Assistance to Promote Economic, Political and Social 
Development.--
            (1) Declaration of policy.--Congress reaffirms the 
        authorities contained in title I of the Afghanistan Freedom 
        Support Act of 2002 (22 U.S.C. 7501 et seq.; relating to 
        economic and democratic development assistance for 
        Afghanistan).
            (2) Provision of assistance.--Section 103(a) of such Act 
        (22 U.S.C. 7513(a)) is amended in the matter preceding 
        paragraph (1) by striking ``section 512 of Public Law 107-115 
        or any other similar'' and inserting ``any other''.
    (b) Declarations of Policy.--Congress makes the following 
declarations:
            (1) The United States reaffirms the support that it and 
        other countries expressed for the report entitled ``Securing 
        Afghanistan's Future'' in their Berlin Declaration of April 
        2004. The United States should help enable the growth needed to 
        create an economically sustainable Afghanistan capable of the 
        poverty reduction and social development foreseen in the 
        report.
            (2) The United States supports the parliamentary elections 
        to be held in Afghanistan by April 2005 and will help ensure 
        that such elections are not undermined by warlords or narcotics 
        traffickers.
            (3)(A) The United States continues to urge North Atlantic 
        Treaty Organization members and other friendly countries to 
        make much greater military contributions toward securing the 
        peace in Afghanistan.
            (B) The United States should continue to lead in the 
        security domain by, among other things, providing logistical 
        support to facilitate those contributions.
            (C) In coordination with the Government of Afghanistan, the 
        United States should urge others, and act itself, to increase 
        efforts to promote disarmament, demobilization, and 
        reintegration efforts, to enhance counternarcotics activities, 
        to expand deployments of Provincial Reconstruction Teams, and 
        to increase training of Afghanistan's National Army and its 
        police and border security forces.
    (c) Long-Term Strategy.--
            (1) Strategy.--Title III of such Act (22 U.S.C. 7551 et 
        seq.) is amended by adding at the end the following:

``SEC. 304 FORMULATION OF LONG-TERM STRATEGY FOR AFGHANISTAN.

    ``(a) Strategy.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of the Afghanistan Freedom Support Act 
        Amendments of 2004, the President shall formulate and transmit 
        to the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate a 5-year strategy for Afghanistan that includes specific 
        and measurable goals, timeframes for accomplishing such goals, 
        and specific resource levels necessary for accomplishing such 
        goals for addressing the long-term development and security 
        needs of Afghanistan, including sectors such as agriculture and 
        irrigation, parliamentary and democratic development, the 
        judicial system and rule of law, human rights, education, 
        health, telecommunications, electricity, women's rights, 
        counternarcotics, police, border security, anti-corruption, and 
        other law-enforcement activities.
            ``(2) Additional requirement.--The strategy shall also 
        delineate responsibilities for achieving such goals and 
        identify and address possible external factors that could 
        significantly affect the achievement of such goals.
    ``(b) Implementation.--Not later than 30 days after the date of the 
transmission of the strategy required by subsection (a), the Secretary 
of State, the Administrator of the United States Agency for 
International Development, and the Secretary of Defense shall submit to 
the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
written 5-year action plan to implement the strategy developed pursuant 
to subsection (a). Such action plan shall include a description and 
schedule of the program evaluations that will monitor progress toward 
achieving the goals described in subsection (a).
    ``(c) Review.--The Secretary of State, the Administrator of the 
United States Agency for International Development, and the Secretary 
of Defense shall carry out an annual review of the strategy required by 
subsection (a) and the action plan required by subsection (b).
    ``(d) Monitoring.--The report required by section 206(c)(2) of this 
Act shall include--
            ``(1) a description of progress toward implementation of 
        both the strategy required by subsection (a) and the action 
        plan required by subsection (b); and
            ``(2) a description of any changes to the strategy or 
        action plan since the date of the submission of the last report 
        required by such section.''.
            (2) Clerical amendment.--The table of contents for such Act 
        (22 U.S.C. 7501 note) is amended by adding after the item 
        relating to section 303 the following:

``Sec. 304. Formulation of long-term strategy for Afghanistan.''.

SEC. 4064. RULE OF LAW AND RELATED ISSUES.

    Section 103(a)(5)(A) of the Afghanistan Freedom Support Act of 2002 
(22 U.S.C. 7513(a)(5)(A)) is amended--
            (1) in clause (v), to read as follows:
                            ``(v) support for the activities of the 
                        Government of Afghanistan to develop modern 
                        legal codes and court rules, to provide for the 
                        creation of legal assistance programs, and 
                        other initiatives to promote the rule of law in 
                        Afghanistan;'';
            (2) in clause (xii), to read as follows:
                            ``(xii) support for the effective 
                        administration of justice at the national, 
                        regional, and local levels, including programs 
                        to improve penal institutions and the 
                        rehabilitation of prisoners, to establish a 
                        responsible and community-based police force, 
                        and to rehabilitate or construct courthouses 
                        and detention facilities;''; and
            (3) in clause (xiii), by striking ``and'' at the end;
            (4) in clause (xiv), by striking the period at the end and 
        inserting ``; and''; and
            (5) by adding at the end the following:
                            ``(xv) assistance for the protection of 
                        Afghanistan's culture, history, and national 
                        identity, including with the rehabilitation of 
                        Afghanistan's museums and sites of cultural 
                        significance.''.

SEC. 4065. MONITORING OF ASSISTANCE.

    Section 108 of the Afghanistan Freedom Support Act of 2002 (22 
U.S.C. 7518) is amended by adding at the end the following:
    ``(c) Monitoring of Assistance for Afghanistan.--
            ``(1) Report.--Not later than January 15, 2005, and every 
        six months thereafter, the Secretary of State, in consultation 
        with the Administrator for the United States Agency for 
        International Development, shall submit to the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate a report on the 
        obligations and expenditures of United States assistance for 
        Afghanistan from all United States Government agencies.
            ``(2) Submission of information for report.--The head of 
        each United States Government agency referred to in paragraph 
        (1) shall provide on a timely basis to the Secretary of State 
        such information as the Secretary may reasonably require to 
        allow the Secretary to prepare and submit the report required 
        by such paragraph.''.

SEC. 4066. UNITED STATES POLICY TO SUPPORT DISARMAMENT OF PRIVATE 
              MILITIAS AND TO SUPPORT EXPANSION OF INTERNATIONAL 
              PEACEKEEPING AND SECURITY OPERATIONS IN AFGHANISTAN.

    (a) Disarmament of Private Militias.--Section 103 of the 
Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7513) is amended by 
adding at the end the following:
    ``(d) United States Policy Relating to Disarmament of Private 
Militias.--
            ``(1) In general.--It shall be the policy of the United 
        States to take immediate steps to provide active support for 
        the disarmament, demobilization, and reintegration of armed 
        soldiers, particularly child soldiers, in Afghanistan, in close 
        consultation with the President of Afghanistan.
            ``(2) Report.--The report required by section 206(c)(2) of 
        this Act shall include a description of the progress to 
        implement paragraph (1).''.
    (b) International Peacekeeping and Security Operations.--Section 
103 of such Act (22 U.S.C. 7513(d)), as amended by subsection (a), is 
further amended by adding at the end the following:
    ``(e) United States Policy Relating to International Peacekeeping 
and Security Operations.--It shall be the policy of the United States 
to make every effort to support the expansion of international 
peacekeeping and security operations in Afghanistan in order to--
            ``(1) increase the area in which security is provided and 
        undertake vital tasks related to promoting security, such as 
        disarming warlords, militias, and irregulars, and disrupting 
        opium production; and
            ``(2) safeguard highways in order to allow the free flow of 
        commerce and to allow material assistance to the people of 
        Afghanistan, and aid personnel in Afghanistan, to move more 
        freely.''.

SEC. 4067. EFFORTS TO EXPAND INTERNATIONAL PEACEKEEPING AND SECURITY 
              OPERATIONS IN AFGHANISTAN.

    Section 206(d)(1) of the Afghanistan Freedom Support Act of 2002 
(22 U.S.C. 7536(d)(1)) is amended to read as follows:
            ``(1) Efforts to expand international peacekeeping and 
        security operations in afghanistan.--
                    ``(A) Efforts.--The President shall encourage, and, 
                as authorized by law, enable other countries to 
                actively participate in expanded international 
                peacekeeping and security operations in Afghanistan, 
                especially through the provision of military personnel 
                for extended periods of time.
                    ``(B) Reports.--The President shall prepare and 
                transmit to the Committee on International Relations of 
                the House of Representatives and the Committee on 
                Foreign Relations of the Senate a report on efforts 
                carried out pursuant to subparagraph (A). The first 
                report under this subparagraph shall be transmitted not 
                later than 60 days after the date of the enactment of 
                the Afghanistan Freedom Support Act Amendments of 2004 
                and subsequent reports shall be transmitted every six 
                months thereafter and may be included in the report 
                required by section 206(c)(2) of this Act.''.

SEC. 4068. PROVISIONS RELATING TO COUNTERNARCOTICS EFFORTS IN 
              AFGHANISTAN.

    (a) counternarcotics Efforts.--The Afghanistan Freedom Support Act 
of 2002 (22 U.S.C. 7501 et seq.) is amended--
            (1) by redesignating--
                    (A) title III as title IV; and
                    (B) sections 301 through 304 as sections 401 
                through 404, respectively; and
            (2) by inserting after title II the following:

    ``TITLE III--PROVISIONS RELATING TO counternarcotics EFFORTS IN 
                              AFGHANISTAN

``SEC. 301. ASSISTANCE FOR COUNTERNARCOTICS EFFORTS.

    ``In addition to programs established pursuant to section 103(a)(3) 
of this Act or other similar programs, the President is authorized and 
encouraged to implement specific initiatives to assist in the 
eradication of poppy cultivation and the disruption of heroin 
production in Afghanistan, such as--
            ``(1) promoting alternatives to poppy cultivation, 
        including the introduction of high value crops that are 
        suitable for export and the provision of appropriate technical 
        assistance and credit mechanisms for farmers;
            ``(2) enhancing the ability of farmers to bring legitimate 
        agricultural goods to market;
            ``(3) notwithstanding section 660 of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2420), assistance, including nonlethal 
        equipment, training (including training in internationally 
        recognized standards of human rights, the rule of law, anti-
        corruption, and the promotion of civilian police roles that 
        support democracy), and payments, during fiscal years 2006 
        through 2008, for salaries for special counternarcotics police 
        and supporting units;
            ``(4) training the Afghan National Army in counternarcotics 
        activities; and
            ``(5) creating special counternarcotics courts, 
        prosecutors, and places of incarceration.''.
    (b) Clerical Amendments.--The table of contents for such Act (22 
U.S.C. 7501 note) is amended--
            (1) by redesignating--
                    (A) the item relating to title III as the item 
                relating to title IV; and
                    (B) the items relating to sections 301 through 304 
                as the items relating to sections 401 through 404; and
            (2) by inserting after the items relating to title II the 
        following:

    ``TITLE III--PROVISIONS RELATING TO counternarcotics EFFORTS IN 
                              AFGHANISTAN

``Sec. 301. Assistance for counternarcotics efforts.''.

SEC. 4069. ADDITIONAL AMENDMENTS TO THE AFGHANISTAN FREEDOM SUPPORT ACT 
              OF 2002.

    (a) Technical Amendment.--Section 103(a)(7)(A)(xii) of the 
Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7513(a)(7)(A)(xii)) 
is amended by striking ``National'' and inserting ``Afghan 
Independent''.
    (b) Reporting Requirement.--Section 206(c)(2) of such Act (22 
U.S.C. 7536(c)(2)) is amended in the matter preceding subparagraph (A) 
by striking ``2007'' and inserting ``2012''.

SEC. 4070. REPEAL.

    Section 620D of the Foreign Assistance Act of 1961 (22 U.S.C. 2374; 
relating to prohibition on assistance to Afghanistan) is hereby 
repealed.

      Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

SEC. 4081. NEW UNITED STATES STRATEGY FOR RELATIONSHIP WITH SAUDI 
              ARABIA.

    (a) Sense of Congress.--It is the sense of Congress that the 
relationship between the United States and Saudi Arabia should include 
a more robust dialogue between the people and Government of the United 
States and the people and Government of Saudi Arabia in order to 
provide for a reevaluation of, and improvements to, the relationship by 
both sides.
    (b) Report.--
            (1) In general.-- Not later than one year after the date of 
        the enactment of this Act, the President shall transmit to the 
        Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate a strategy for collaboration with the people and 
        Government of Saudi Arabia on subjects of mutual interest and 
        importance to the United States.
            (2) Contents.--The strategy required under paragraph (1) 
        shall include the following provisions:
                    (A) A framework for security cooperation in the 
                fight against terrorism, with special reference to 
                combating terrorist financing and an examination of the 
                origins of modern terrorism.
                    (B) A framework for political and economic reform 
                in Saudi Arabia and throughout the Middle East.
                    (C) An examination of steps that should be taken to 
                reverse the trend toward extremism in Saudi Arabia and 
                other Muslim countries and throughout the Middle East.
                    (D) A framework for promoting greater tolerance and 
                respect for cultural and religious diversity in Saudi 
                Arabia and throughout the Middle East.

SEC. 4082. UNITED STATES COMMITMENT TO THE FUTURE OF PAKISTAN.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States should, over a long-term period, help to ensure a promising, 
stable, and secure future for Pakistan, and should in particular 
provide assistance to encourage and enable Pakistan--
            (1) to continue and improve upon its commitment to 
        combating extremists;
            (2) to seek to resolve any outstanding difficulties with 
        its neighbors and other countries in its region;
            (3) to continue to make efforts to fully control its 
        territory and borders;
            (4) to progress towards becoming a more effective and 
        participatory democracy;
            (5) to participate more vigorously in the global 
        marketplace and to continue to modernize its economy;
            (6) to take all necessary steps to halt the spread of 
        weapons of mass destruction;
            (7) to continue to reform its education system; and
            (8) to, in other ways, implement a general strategy of 
        moderation.
    (b) Strategy.--Not later than 180 days after the date of the 
enactment of this Act, the President shall transmit to Congress a 
detailed proposed strategy for the future, long-term, engagement of the 
United States with Pakistan.

SEC. 4083. EXTENSION OF PAKISTAN WAIVERS.

     The Act entitled ``An Act to authorize the President to exercise 
waivers of foreign assistance restrictions with respect to Pakistan 
through September 30, 2003, and for other purposes'', approved October 
27, 2001 (Public Law 107-57; 115 Stat. 403), as amended by section 2213 
of the Emergency Supplemental Appropriations Act for Defense and for 
the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 
117 Stat. 1232), is further amended--
            (1) in section 1(b)--
                    (A) in the heading, by striking ``Fiscal Year 
                2004'' and inserting ``Fiscal Years 2005 and 2006''; 
                and
                    (B) in paragraph (1), by striking ``2004'' and 
                inserting ``2005 or 2006'';
            (2) in section 3(2), by striking ``and 2004,'' and 
        inserting ``2004, 2005, and 2006''; and
            (3) in section 6, by striking ``2004'' and inserting 
        ``2006''.

                    Subtitle F--Oversight Provisions

SEC. 4091. CASE-ZABLOCKI ACT REQUIREMENTS.

    (a) Availability of Treaties and International Agreements.--Section 
112a of title 1, United States Code, is amended by adding at the end 
the following:
    ``(d) The Secretary of State shall cause to be published in slip 
form or otherwise made publicly available through the Internet website 
of the Department of State each treaty or international agreement 
proposed to be published in the compilation entitled `United States 
Treaties and Other International Agreements' not later than 180 days 
after the date on which the treaty or agreement enters into force.''.
    (b) Transmission to Congress.--Section 112b(a) of title 1, United 
States Code (commonly referred to as the ``Case-Zablocki Act''), is 
amended--
            (1) in the first sentence, by striking ``has entered into 
        force'' and inserting ``has been signed or entered into 
        force''; and
            (2) in the second sentence, by striking ``Committee on 
        Foreign Affairs'' and inserting ``Committee on International 
        Relations''.
    (c) Report.--Section 112b of title 1, United States Code, is 
amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d)(1) The Secretary of State shall submit to Congress on an 
annual basis a report that contains an index of all international 
agreements (including oral agreements), listed by country, date, title, 
and summary of each such agreement (including a description of the 
duration of activities under the agreement and the agreement itself), 
that the United States--
            ``(A) has signed, proclaimed, or with reference to which 
        any other final formality has been executed, or that has been 
        extended or otherwise modified, during the preceding calendar 
        year; and
            ``(B) has not been published, or is not proposed to be 
        published, in the compilation entitled `United States Treaties 
        and Other International Agreements'.
    ``(2) The report described in paragraph (1) may be submitted in 
classified form.''.
    (d) Determination of International Agreement.--Subsection (e) of 
section 112b of title 1, United States Code, (as redesignated) is 
amended--
            (1) by striking ``(e) The Secretary of State'' and 
        inserting ``(e)(1) Subject to paragraph (2), the Secretary of 
        State''; and
            (2) by adding at the end the following:
    ``(2)(A) An arrangement shall constitute an international agreement 
within the meaning of this section (other than subsection (c) of this 
section) irrespective of the duration of activities under the 
arrangement or the arrangement itself.
    ``(B) Arrangements that constitute an international agreement 
within the meaning of this section (other than subsection (c) of this 
section) include, but are not limited to, the following:
            ``(i) A bilateral or multilateral counterterrorism 
        agreement.
            ``(ii) A bilateral agreement with a country that is subject 
        to a determination under section 6(j)(1)(A) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)), 
        section 620A(a) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2371(a)), or section 40(d) of the Arms Export Control 
        Act (22 U.S.C. 2780(d)).''.
    (e) Enforcement of Requirements.--Section 139(b) of the Foreign 
Relations Authorization Act, Fiscal Years 1988 and 1989 is amended to 
read as follows:
    ``(b) Effective Date.--Subsection (a) shall take effect 60 days 
after the date of the enactment of the 9/11 Recommendations 
Implementation Act and shall apply during fiscal years 2005, 2006, and 
2007.''.

  Subtitle G--Additional Protections of United States Aviation System 
                         from Terrorist Attacks

SEC. 4101. INTERNATIONAL AGREEMENTS TO ALLOW MAXIMUM DEPLOYMENT OF 
              FEDERAL FLIGHT DECK OFFICERS.

    The President is encouraged to pursue aggressively international 
agreements with foreign governments to allow the maximum deployment of 
Federal air marshals and Federal flight deck officers on international 
flights.

SEC. 4102. FEDERAL AIR MARSHAL TRAINING.

    Section 44917 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Training for Foreign Law Enforcement Personnel.--
            ``(1) In general.--The Assistant Secretary for Immigration 
        and Customs Enforcement of the Department of Homeland Security, 
        after consultation with the Secretary of State, may direct the 
        Federal Air Marshal Service to provide appropriate air marshal 
        training to law enforcement personnel of foreign countries.
            ``(2) Watchlist screening.--The Federal Air Marshal Service 
        may only provide appropriate air marshal training to law 
        enforcement personnel of foreign countries after comparing the 
        identifying information and records of law enforcement 
        personnel of foreign countries against appropriate records in 
        the consolidated and integrated terrorist watchlists of the 
        Federal Government.
            ``(3) Fees.--The Assistant Secretary shall establish 
        reasonable fees and charges to pay expenses incurred in 
        carrying out this subsection. Funds collected under this 
        subsection shall be credited to the account in the Treasury 
        from which the expenses were incurred and shall be available to 
        the Assistant Secretary for purposes for which amounts in such 
        account are available.''.

SEC. 4103. MAN-PORTABLE AIR DEFENSE SYSTEMS (MANPADS).

    (a) United States Policy on Nonproliferation and Export Control.--
            (1) To limit availability and transfer of manpads.--The 
        President shall pursue, on an urgent basis, further strong 
        international diplomatic and cooperative efforts, including 
        bilateral and multilateral treaties, in the appropriate forum 
        to limit the availability, transfer, and proliferation of 
        MANPADSs worldwide.
            (2) To limit the proliferation of manpads.--The President 
        is encouraged to seek to enter into agreements with the 
        governments of foreign countries that, at a minimum, would--
                    (A) prohibit the entry into force of a MANPADS 
                manufacturing license agreement and MANPADS co-
                production agreement, other than the entry into force 
                of a manufacturing license or co-production agreement 
                with a country that is party to such an agreement;
                    (B) prohibit, except pursuant to transfers between 
                governments, the export of a MANPADS, including any 
                component, part, accessory, or attachment thereof, 
                without an individual validated license; and
                    (C) prohibit the reexport or retransfer of a 
                MANPADS, including any component, part, accessory, or 
                attachment thereof, to a third person, organization, or 
                government unless the written consent of the government 
                that approved the original export or transfer is first 
                obtained.
            (3) To achieve destruction of manpads.--The President 
        should continue to pursue further strong international 
        diplomatic and cooperative efforts, including bilateral and 
        multilateral treaties, in the appropriate forum to assure the 
        destruction of excess, obsolete, and illicit stocks of MANPADSs 
        worldwide.
            (4) Reporting and briefing requirement.--
                    (A) President's report.--Not later than 180 days 
                after the date of enactment of this Act, the President 
                shall transmit to the appropriate congressional 
                committees a report that contains a detailed 
                description of the status of diplomatic efforts under 
                paragraphs (1), (2), and (3) and of efforts by the 
                appropriate United States agencies to comply with the 
                recommendations of the General Accounting Office set 
                forth in its report GAO-04-519, entitled 
                ``Nonproliferation: Further Improvements Needed in U.S. 
                Efforts to Counter Threats from Man-Portable Air 
                Defense Systems''.
                    (B) Annual briefings.--Annually after the date of 
                submission of the report under subparagraph (A) and 
                until completion of the diplomatic and compliance 
                efforts referred to in subparagraph (A), the Secretary 
                of State shall brief the appropriate congressional 
                committees on the status of such efforts.
    (b) FAA Airworthiness Certification of Missile Defense Systems for 
Commercial Aircraft.--
            (1) In general.--As soon as practicable, but not later than 
        the date of completion of Phase II of the Department of 
        Homeland Security's counter-man-portable air defense system 
        (MANPADS) development and demonstration program, the 
        Administrator of the Federal Aviation Administration shall 
        establish a process for conducting airworthiness and safety 
        certification of missile defense systems for commercial 
        aircraft certified as effective and functional by the 
        Department of Homeland Security. The process shall require a 
        certification by the Administrator that such systems can be 
        safely integrated into aircraft systems and ensure 
        airworthiness and aircraft system integrity.
            (2) Certification acceptance.--Under the process, the 
        Administrator shall accept the certification of the Department 
        of Homeland Security that a missile defense system is effective 
        and functional to defend commercial aircraft against MANPADSs.
            (3) Expeditious certification.--Under the process, the 
        Administrator shall expedite the airworthiness and safety 
        certification of missile defense systems for commercial 
        aircraft certified by the Department of Homeland Security.
            (4) Reports.--Not later than 90 days after the first 
        airworthiness and safety certification for a missile defense 
        system for commercial aircraft is issued by the Administrator, 
        and annually thereafter until December 31, 2008, the Federal 
        Aviation Administration shall transmit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report that contains a detailed 
        description of each airworthiness and safety certification 
        issued for a missile defense system for commercial aircraft.
    (c) Programs to Reduce MANPADS.--
            (1) In general.--The President is encouraged to pursue 
        strong programs to reduce the number of MANPADSs worldwide so 
        that fewer MANPADSs will be available for trade, proliferation, 
        and sale.
            (2) Reporting and briefing requirements.--Not later than 
        180 days after the date of enactment of this Act, the President 
        shall transmit to the appropriate congressional committees a 
        report that contains a detailed description of the status of 
        the programs being pursued under subsection (a). Annually 
        thereafter until the programs are no longer needed, the 
        Secretary of State shall brief the appropriate congressional 
        committees on the status of programs.
            (3) Funding.--There are authorized to be appropriated such 
        sums as may be necessary to carry out this section.
    (d) MANPADS Vulnerability Assessments Report.--
            (1) In general.--Not later than one year after the date of 
        enactment of this Act, the Secretary of Homeland Security shall 
        transmit to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report describing 
        the Department of Homeland Security's plans to secure airports 
        and the aircraft arriving and departing from airports against 
        MANPADSs attacks.
            (2) Matters to be addressed.--The Secretary's report shall 
        address, at a minimum, the following:
                    (A) The status of the Department's efforts to 
                conduct MANPADSs vulnerability assessments at United 
                States airports at which the Department is conducting 
                assessments.
                    (B) How intelligence is shared between the United 
                States intelligence agencies and Federal, State, and 
                local law enforcement to address the MANPADS threat and 
                potential ways to improve such intelligence sharing.
                    (C) Contingency plans that the Department has 
                developed in the event that it receives intelligence 
                indicating a high threat of a MANPADS attack on 
                aircraft at or near United States airports.
                    (D) The feasibility and effectiveness of 
                implementing public education and neighborhood watch 
                programs in areas surrounding United States airports in 
                cases in which intelligence reports indicate there is a 
                high risk of MANPADS attacks on aircraft.
                    (E) Any other issues that the Secretary deems 
                relevant.
            (3) Format.--The report required by this subsection may be 
        submitted in a classified format.
    (e) Definitions.--In this section, the following definitions apply:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Armed Services, the Committee 
                on International Relations, and the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives; and
                    (B) the Committee on Armed Services, the Committee 
                on Foreign Relations, and the Committee on Commerce, 
                Science, and Transportation of the Senate.
            (2) MANPADS.--The term ``MANPADS'' means--
                    (A) a surface-to-air missile system designed to be 
                man-portable and carried and fired by a single 
                individual; and
                    (B) any other surface-to-air missile system 
                designed to be operated and fired by more than one 
                individual acting as a crew and portable by several 
                individuals.

Subtitle H--Improving International Standards and Cooperation to Fight 
                          Terrorist Financing

SEC. 4111. SENSE OF THE CONGRESS REGARDING SUCCESS IN MULTILATERAL 
              ORGANIZATIONS.

    (a) Findings.--The Congress finds as follows:
            (1) The global war on terrorism and cutting off terrorist 
        financing is a policy priority for the United States and its 
        partners, working bilaterally and multilaterally through the 
        United Nations (UN), the UN Security Council and its 
        Committees, such as the 1267 and 1373 Committees, the Financial 
        Action Task Force (FATF) and various international financial 
        institutions, such as the International Monetary Fund (IMF), 
        the International Bank for Reconstruction and Development 
        (IBRD), and the regional multilateral development banks, and 
        other multilateral fora.
            (2) The Secretary of the Treasury has engaged the 
        international financial community in the global fight against 
        terrorist financing. Specifically, the Department of the 
        Treasury helped redirect the focus of the Financial Action Task 
        Force on the new threat posed by terrorist financing to the 
        international financial system, resulting in the establishment 
        of the FATF's Eight Special Recommendations on Terrorist 
        Financing as the international standard on combating terrorist 
        financing. The Secretary of the Treasury has engaged the Group 
        of Seven and the Group of Twenty Finance Ministers to develop 
        action plans to curb the financing of terror. In addition, 
        other economic and regional fora, such as the Asia-Pacific 
        Economic Cooperation (APEC) Forum, the Western Hemisphere 
        Financial Ministers, have been used to marshal political will 
        and actions in support of countering the financing of terrorism 
        (CFT) standards.
            (3) FATF's Forty Recommendations on Money Laundering and 
        the Eight Special Recommendations on Terrorist Financing are 
        the recognized global standards for fighting money laundering 
        and terrorist financing. The FATF has engaged in an assessment 
        process for jurisdictions based on their compliance with these 
        standards.
            (4) In March 2004, the IMF and IBRD Boards agreed to make 
        permanent a pilot program of collaboration with the FATF to 
        assess global compliance with the FATF Forty Recommendations on 
        Money Laundering and the Eight Special Recommendations on 
        Terrorist Financing. As a result, anti-money laundering (AML) 
        and combating the financing of terrorism (CFT) assessments are 
        now a regular part of their Financial Sector Assessment Progam 
        (FSAP) and Offshore Financial Center assessments, which provide 
        for a comprehensive analysis of the strength of a 
        jurisdiction's financial system. These reviews assess potential 
        systemic vulnerabilities, consider sectoral development needs 
        and priorities, and review the state of implementation of and 
        compliance with key financial codes and regulatory standards, 
        among them the AML and CFT standards.
            (5) To date, 70 FSAPs have been conducted, with over 24 of 
        those incorporating AML and CFT assessments. The international 
        financial institutions (IFIs), the FATF, and the FATF-style 
        regional bodies together are expected to assess AML and CFT 
        regimes in up to 40 countries or jurisdictions per year. This 
        will help countries and jurisdictions identify deficiencies in 
        their AML and CFT regimes and help focus technical assistance 
        (TA) efforts.
            (6) TA programs from the United States and other nations, 
        coordinated with the Department of State and other departments 
        and agencies, are playing an important role in helping 
        countries and jurisdictions address shortcomings in their AML 
        and CFT regimes and bringing their regimes into conformity with 
        international standards. Training is coordinated within the 
        United States Government, which leverages multilateral 
        organizations and bodies and international financial 
        institutions to internationalize the conveyance of technical 
        assistance.
            (7) In fulfilling its duties in advancing incorporation of 
        AML and CFT standards into the IFIs as part of the IFIs' work 
        on protecting the integrity of the international monetary 
        system, the Department of the Treasury, under the guidance of 
        the Secretary of the Treasury, has effectively brought together 
        all of the key United States Government agencies. In 
        particular, United States Government agencies continue to work 
        together to foster broad support for this important undertaking 
        in various multilateral fora, and United States Government 
        agencies recognize the need for close coordination and 
        communication within our own government.
    (b) Sense of the Congress.--It is the sense of the Congress that 
the Secretary of the Treasury should continue to promote the 
dissemination of international AML and CFT standards, and to press for 
full implementation of the FATF 40 + 8 Recommendations by all countries 
in order to curb financial risks and hinder terrorist financing around 
the globe.

SEC. 4112. EXPANDED REPORTING AND TESTIMONY REQUIREMENTS FOR THE 
              SECRETARY OF THE TREASURY.

    (a) Reporting Requirements.--Section 1503(a) of the International 
Financial Institutions Act (22 U.S.C. 262o-2(a)) is amended by adding 
at the end the following new paragraph:
            ``(15) Work with the International Monetary Fund to--
                    ``(A) foster strong global anti-money laundering 
                (AML) and combat the financing of terrorism (CFT) 
                regimes;
                    ``(B) ensure that country performance under the 
                Financial Action Task Force anti-money laundering and 
                counter-terrorist financing standards is effectively 
                and comprehensively monitored;
                    ``(C) ensure note is taken of AML and CFT issues in 
                Article IV reports, International Monetary Fund 
                programs, and other regular reviews of country 
                progress;
                    ``(D) ensure that effective AML and CFT regimes are 
                considered to be indispensable elements of sound 
                financial systems; and
                    ``(E) emphasize the importance of sound AML and CFT 
                regimes to global growth and development.''.
    (b) Testimony.--Section 1705(b) of such Act (22 U.S.C. 262r-4(b)) 
is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and'' and
            (3) by adding at the end the following:
            ``(4) the status of implementation of international anti-
        money laundering and counter-terrorist financing standards by 
        the International Monetary Fund, the multilateral development 
        banks, and other multilateral financial policymaking bodies.''.

SEC. 4113. COORDINATION OF UNITED STATES GOVERNMENT EFFORTS.

    The Secretary of the Treasury, or the designee of the Secretary as 
the lead United States Government official to the Financial Action Task 
Force (FATF), shall continue to convene the interagency United States 
Government FATF working group. This group, which includes 
representatives from all relevant federal agencies, shall meet at least 
once a year to advise the Secretary on policies to be pursued by the 
United States regarding the development of common international AML and 
CFT standards, to assess the adequacy and implementation of such 
standards, and to recommend to the Secretary improved or new standards 
as necessary.

SEC. 4114. DEFINITIONS.

    In this subtitle:
            (1) International financial institutions.--The term 
        ``international financial institutions'' has the meaning given 
        in section 1701(c)(2) of the International Financial 
        Institutions Act.
            (2) Financial Action Task Force.--The term ``Financial 
        Action Task Force'' means the international policy-making and 
        standard-setting body dedicated to combating money laundering 
        and terrorist financing that was created by the Group of Seven 
        in 1989.

                   TITLE V--GOVERNMENT RESTRUCTURING

      Subtitle A--Faster and Smarter Funding for First Responders

SEC. 5001. SHORT TITLE.

    This subtitle may be cited as the ``Faster and Smarter Funding for 
First Responders Act of 2004''.

SEC. 5002. FINDINGS.

    The Congress finds the following:
            (1) In order to achieve its objective of minimizing the 
        damage, and assisting in the recovery, from terrorist attacks, 
        the Department of Homeland Security must play a leading role in 
        assisting communities to reach the level of preparedness they 
        need to respond to a terrorist attack.
            (2) First responder funding is not reaching the men and 
        women of our Nation's first response teams quickly enough, and 
        sometimes not at all.
            (3) To reform the current bureaucratic process so that 
        homeland security dollars reach the first responders who need 
        it most, it is necessary to clarify and consolidate the 
        authority and procedures of the Department of Homeland Security 
        that support first responders.
            (4) Ensuring adequate resources for the new national 
        mission of homeland security, without degrading the ability to 
        address effectively other types of major disasters and 
        emergencies, requires a discrete and separate grant making 
        process for homeland security funds for first response to 
        terrorist acts, on the one hand, and for first responder 
        programs designed to meet pre-September 11 priorities, on the 
        other.
            (5) While a discrete homeland security grant making process 
        is necessary to ensure proper focus on the unique aspects of 
        terrorism prevention, preparedness, and response, it is 
        essential that State and local strategies for utilizing such 
        grants be integrated, to the greatest extent practicable, with 
        existing State and local emergency management plans.
            (6) Homeland security grants to first responders must be 
        based on the best intelligence concerning the capabilities and 
        intentions of our terrorist enemies, and that intelligence must 
        be used to target resources to the Nation's greatest threats, 
        vulnerabilities, and consequences.
            (7) The Nation's first response capabilities will be 
        improved by sharing resources, training, planning, personnel, 
        and equipment among neighboring jurisdictions through mutual 
        aid agreements and regional cooperation. Such regional 
        cooperation should be supported, where appropriate, through 
        direct grants from the Department of Homeland Security.
            (8) An essential prerequisite to achieving the Nation's 
        homeland security objectives for first responders is the 
        establishment of well-defined national goals for terrorism 
        preparedness. These goals should delineate the essential 
        capabilities that every jurisdiction in the United States 
        should possess or to which it should have access.
            (9) A national determination of essential capabilities is 
        needed to identify levels of State and local government 
        terrorism preparedness, to determine the nature and extent of 
        State and local first responder needs, to identify the human 
        and financial resources required to fulfill them, and to direct 
        funding to meet those needs and to measure preparedness levels 
        on a national scale.
            (10) To facilitate progress in achieving, maintaining, and 
        enhancing essential capabilities for State and local first 
        responders, the Department of Homeland Security should seek to 
        allocate homeland security funding for first responders to meet 
        nationwide needs.
            (11) Private sector resources and citizen volunteers can 
        perform critical functions in assisting in preventing and 
        responding to terrorist attacks, and should be integrated into 
        State and local planning efforts to ensure that their 
        capabilities and roles are understood, so as to provide 
        enhanced State and local operational capability and surge 
        capacity.
            (12) Public-private partnerships, such as the partnerships 
        between the Business Executives for National Security and the 
        States of New Jersey and Georgia, can be useful to identify and 
        coordinate private sector support for State and local first 
        responders. Such models should be expanded to cover all States 
        and territories.
            (13) An important aspect of essential capabilities is 
        measurability, so that it is possible to determine how prepared 
        a State or local government is now, and what additional steps 
        it needs to take, in order to respond to acts of terrorism.
            (14) The Department of Homeland Security should establish, 
        publish, and regularly update national voluntary consensus 
        standards for both equipment and training, in cooperation with 
        both public and private sector standard setting organizations, 
        to assist State and local governments in obtaining the 
        equipment and training to attain the essential capabilities for 
        first response to acts of terrorism, and to ensure that first 
        responder funds are spent wisely.

SEC. 5003. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

    (a) In General.--The Homeland Security Act of 2002 (Public Law 107-
296; 6 U.S.C. 361 et seq.) is amended--
            (1) in section 1(b) in the table of contents by adding at 
        the end the following:

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

        ``Sec. 1801. Definitions.
        ``Sec. 1802. Faster and smarter funding for first responders.
        ``Sec. 1803. Essential capabilities for first responders.
        ``Sec. 1804. Task Force on Essential Capabilities for First 
                            Responders.
        ``Sec. 1805. Covered grant eligibility and criteria.
        ``Sec. 1806. Use of funds and accountability requirements.
        ``Sec. 1807. National standards for first responder equipment 
                            and training.'';
        and
            (2) by adding at the end the following:

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``SEC. 1801. DEFINITIONS.

    ``In this title:
            ``(1) Board.--The term `Board' means the First Responder 
        Grants Board established under section 1805(f).
            ``(2) Covered grant.--The term `covered grant' means any 
        grant to which this title applies under section 1802.
            ``(3) Directly eligible tribe.--The term `directly eligible 
        tribe' means any Indian tribe or consortium of Indian tribes 
        that--
                    ``(A) meets the criteria for inclusion in the 
                qualified applicant pool for Self-Governance that are 
                set forth in section 402(c) of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                458bb(c));
                    ``(B) employs at least 10 full-time personnel in a 
                law enforcement or emergency response agency with the 
                capacity to respond to calls for law enforcement or 
                emergency services; and
                    ``(C)(i) is located on, or within 5 miles of, an 
                international border or waterway;
                    ``(ii) is located within 5 miles of a facility 
                within a critical infrastructure sector identified in 
                section 1803(c)(2);
                    ``(iii) is located within or contiguous to one of 
                the 50 largest metropolitan statistical areas in the 
                United States; or
                    ``(iv) has more than 1,000 square miles of Indian 
                country, as that term is defined in section 1151 of 
                title 18, United States Code.
            ``(4) Elevations in the threat alert level.--The term 
        `elevations in the threat alert level' means any designation 
        (including those that are less than national in scope) that 
        raises the homeland security threat level to either the highest 
        or second highest threat level under the Homeland Security 
        Advisory System referred to in section 201(d)(7).
            ``(5) Emergency preparedness.--The term `emergency 
        preparedness' shall have the same meaning that term has under 
        section 602 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5195a).
            ``(6) Essential capabilities.--The term `essential 
        capabilities' means the levels, availability, and competence of 
        emergency personnel, planning, training, and equipment across a 
        variety of disciplines needed to effectively and efficiently 
        prevent, prepare for, and respond to acts of terrorism 
        consistent with established practices.
            ``(7) First responder.--The term `first responder' shall 
        have the same meaning as the term `emergency response 
        provider'.
            ``(8) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaskan Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), which is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
            ``(9) Region.--The term `region' means--
                    ``(A) any geographic area consisting of all or 
                parts of 2 or more contiguous States, counties, 
                municipalities, or other local governments that have a 
                combined population of at least 1,650,000 or have an 
                area of not less than 20,000 square miles, and that, 
                for purposes of an application for a covered grant, is 
                represented by 1 or more governments or governmental 
                agencies within such geographic area, and that is 
                established by law or by agreement of 2 or more such 
                governments or governmental agencies in a mutual aid 
                agreement; or
                    ``(B) any other combination of contiguous local 
                government units (including such a combination 
                established by law or agreement of two or more 
                governments or governmental agencies in a mutual aid 
                agreement) that is formally certified by the Secretary 
                as a region for purposes of this Act with the consent 
                of--
                            ``(i) the State or States in which they are 
                        located, including a multi-State entity 
                        established by a compact between two or more 
                        States; and
                            ``(ii) the incorporated municipalities, 
                        counties, and parishes that they encompass.
            ``(10) Task force.--The term `Task Force' means the Task 
        Force on Essential Capabilities for First Responders 
        established under section 1804.

``SEC. 1802. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

    ``(a) Covered Grants.--This title applies to grants provided by the 
Department to States, regions, or directly eligible tribes for the 
primary purpose of improving the ability of first responders to 
prevent, prepare for, respond to, or mitigate threatened or actual 
terrorist attacks, especially those involving weapons of mass 
destruction, administered under the following:
            ``(1) State homeland security grant program.--The State 
        Homeland Security Grant Program of the Department, or any 
        successor to such grant program.
            ``(2) Urban area security initiative.--The Urban Area 
        Security Initiative of the Department, or any successor to such 
        grant program.
            ``(3) Law enforcement terrorism prevention program.--The 
        Law Enforcement Terrorism Prevention Program of the Department, 
        or any successor to such grant program.
            ``(4) Citizen corps program.--The Citizen Corps Program of 
        the Department, or any successor to such grant program.
    ``(b) Excluded Programs.--This title does not apply to or otherwise 
affect the following Federal grant programs or any grant under such a 
program:
            ``(1) Nondepartment programs.--Any Federal grant program 
        that is not administered by the Department.
            ``(2) Fire grant programs.--The fire grant programs 
        authorized by sections 33 and 34 of the Federal Fire Prevention 
        and Control Act of 1974 (15 U.S.C. 2229, 2229a).
            ``(3) Emergency management planning and assistance account 
        grants.--The Emergency Management Performance Grant program and 
        the Urban Search and Rescue Grants program authorized by title 
        VI of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5195 et seq.); the Departments of 
        Veterans Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2000 (113 Stat. 1047 
        et seq.); and the Earthquake Hazards Reduction Act of 1977 (42 
        U.S.C. 7701 et seq.).

``SEC. 1803. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

    ``(a) Establishment of Essential Capabilities.--
            ``(1) In general.--For purposes of covered grants, the 
        Secretary shall establish clearly defined essential 
        capabilities for State and local government preparedness for 
        terrorism, in consultation with--
                    ``(A) the Task Force on Essential Capabilities for 
                First Responders established under section 1804;
                    ``(B) the Under Secretaries for Emergency 
                Preparedness and Response, Border and Transportation 
                Security, Information Analysis and Infrastructure 
                Protection, and Science and Technology, and the 
                Director of the Office for Domestic Preparedness;
                    ``(C) the Secretary of Health and Human Services;
                    ``(D) other appropriate Federal agencies;
                    ``(E) State and local first responder agencies and 
                officials; and
                    ``(F) consensus-based standard making organizations 
                responsible for setting standards relevant to the first 
                responder community.
            ``(2) Deadlines.--The Secretary shall--
                    ``(A) establish essential capabilities under 
                paragraph (1) within 30 days after receipt of the 
                report under section 1804(b); and
                    ``(B) regularly update such essential capabilities 
                as necessary, but not less than every 3 years.
            ``(3) Provision of essential capabilities.--The Secretary 
        shall ensure that a detailed description of the essential 
        capabilities established under paragraph (1) is provided 
        promptly to the States and to the Congress. The States shall 
        make the essential capabilities available as necessary and 
        appropriate to local governments within their jurisdictions.
    ``(b) Objectives.--The Secretary shall ensure that essential 
capabilities established under subsection (a)(1) meet the following 
objectives:
            ``(1) Specificity.--The determination of essential 
        capabilities specifically shall describe the training, 
        planning, personnel, and equipment that different types of 
        communities in the Nation should possess, or to which they 
        should have access, in order to meet the Department's goals for 
        terrorism preparedness based upon--
                    ``(A) the most current risk assessment available by 
                the Directorate for Information Analysis and 
                Infrastructure Protection of the threats of terrorism 
                against the United States;
                    ``(B) the types of threats, vulnerabilities, 
                geography, size, and other factors that the Secretary 
                has determined to be applicable to each different type 
                of community; and
                    ``(C) the principles of regional coordination and 
                mutual aid among State and local governments.
            ``(2) Flexibility.--The establishment of essential 
        capabilities shall be sufficiently flexible to allow State and 
        local government officials to set priorities based on 
        particular needs, while reaching nationally determined 
        terrorism preparedness levels within a specified time period.
            ``(3) Measurability.--The establishment of essential 
        capabilities shall be designed to enable measurement of 
        progress towards specific terrorism preparedness goals.
            ``(4) Comprehensiveness.--The determination of essential 
        capabilities for terrorism preparedness shall be made within 
        the context of a comprehensive State emergency management 
        system.
    ``(c) Factors To Be Considered.--
            ``(1) In general.--In establishing essential capabilities 
        under subsection (a)(1), the Secretary specifically shall 
        consider the variables of threat, vulnerability, and 
        consequences with respect to the Nation's population (including 
        transient commuting and tourist populations) and critical 
        infrastructure. Such consideration shall be based upon the most 
        current risk assessment available by the Directorate for 
        Information Analysis and Infrastructure Protection of the 
        threats of terrorism against the United States.
            ``(2) Critical infrastructure sectors.--The Secretary 
        specifically shall consider threats of terrorism against the 
        following critical infrastructure sectors in all areas of the 
        Nation, urban and rural:
                    ``(A) Agriculture.
                    ``(B) Banking and finance.
                    ``(C) Chemical industries.
                    ``(D) The defense industrial base.
                    ``(E) Emergency services.
                    ``(F) Energy.
                    ``(G) Food.
                    ``(H) Government.
                    ``(I) Postal and shipping.
                    ``(J) Public health.
                    ``(K) Information and telecommunications networks.
                    ``(L) Transportation.
                    ``(M) Water.
        The order in which the critical infrastructure sectors are 
        listed in this paragraph shall not be construed as an order of 
        priority for consideration of the importance of such sectors.
            ``(3) Types of threat.--The Secretary specifically shall 
        consider the following types of threat to the critical 
        infrastructure sectors described in paragraph (2), and to 
        populations in all areas of the Nation, urban and rural:
                    ``(A) Biological threats.
                    ``(B) Nuclear threats.
                    ``(C) Radiological threats.
                    ``(D) Incendiary threats.
                    ``(E) Chemical threats.
                    ``(F) Explosives.
                    ``(G) Suicide bombers.
                    ``(H) Cyber threats.
                    ``(I) Any other threats based on proximity to 
                specific past acts of terrorism or the known activity 
                of any terrorist group.
        The order in which the types of threat are listed in this 
        paragraph shall not be construed as an order of priority for 
        consideration of the importance of such threats.
            ``(4) Consideration of additional factors.--In establishing 
        essential capabilities under subsection (a)(1), the Secretary 
        shall take into account any other specific threat to a 
        population (including a transient commuting or tourist 
        population) or critical infrastructure sector that the 
        Secretary has determined to exist.

``SEC. 1804. TASK FORCE ON ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

    ``(a) Establishment.--To assist the Secretary in establishing 
essential capabilities under section 1803(a)(1), the Secretary shall 
establish an advisory body pursuant to section 871(a) not later than 60 
days after the date of the enactment of this section, which shall be 
known as the Task Force on Essential Capabilities for First Responders.
    ``(b) Report.--
            ``(1) In general.--The Task Force shall submit to the 
        Secretary, not later than 9 months after its establishment by 
        the Secretary under subsection (a) and every 3 years 
        thereafter, a report on its recommendations for essential 
        capabilities for preparedness for terrorism.
            ``(2) Contents.--The report shall--
                    ``(A) include a priority ranking of essential 
                capabilities in order to provide guidance to the 
                Secretary and to the Congress on determining the 
                appropriate allocation of, and funding levels for, 
                first responder needs;
                    ``(B) set forth a methodology by which any State or 
                local government will be able to determine the extent 
                to which it possesses or has access to the essential 
                capabilities that States and local governments having 
                similar risks should obtain;
                    ``(C) describe the availability of national 
                voluntary consensus standards, and whether there is a 
                need for new national voluntary consensus standards, 
                with respect to first responder training and equipment;
                    ``(D) include such additional matters as the 
                Secretary may specify in order to further the terrorism 
                preparedness capabilities of first responders; and
                    ``(E) include such revisions to the contents of 
                past reports as are necessary to take into account 
                changes in the most current risk assessment available 
                by the Directorate for Information Analysis and 
                Infrastructure Protection or other relevant information 
                as determined by the Secretary.
            ``(3) Consistency with federal working group.--The Task 
        Force shall ensure that its recommendations for essential 
        capabilities are, to the extent feasible, consistent with any 
        preparedness goals or recommendations of the Federal working 
        group established under section 319F(a) of the Public Health 
        Service Act (42 U.S.C. 247d-6(a)).
            ``(4) Comprehensiveness.--The Task Force shall ensure that 
        its recommendations regarding essential capabilities for 
        terrorism preparedness are made within the context of a 
        comprehensive State emergency management system.
            ``(5) Prior measures.--The Task Force shall ensure that its 
        recommendations regarding essential capabilities for terrorism 
        preparedness take into account any capabilities that State or 
        local officials have determined to be essential and have 
        undertaken since September 11, 2001, to prevent or prepare for 
        terrorist attacks.
    ``(c) Membership.--
            ``(1) In general.--The Task Force shall consist of 25 
        members appointed by the Secretary, and shall, to the extent 
        practicable, represent a geographic and substantive cross 
        section of governmental and nongovernmental first responder 
        disciplines from the State and local levels, including as 
        appropriate--
                    ``(A) members selected from the emergency response 
                field, including fire service and law enforcement, 
                hazardous materials response, emergency medical 
                services, and emergency management personnel (including 
                public works personnel routinely engaged in emergency 
                response);
                    ``(B) health scientists, emergency and inpatient 
                medical providers, and public health professionals, 
                including experts in emergency health care response to 
                chemical, biological, radiological, and nuclear 
                terrorism, and experts in providing mental health care 
                during emergency response operations;
                    ``(C) experts from Federal, State, and local 
                governments, and the private sector, representing 
                standards-setting organizations, including 
                representation from the voluntary consensus codes and 
                standards development community, particularly those 
                with expertise in first responder disciplines; and
                    ``(D) State and local officials with expertise in 
                terrorism preparedness, subject to the condition that 
                if any such official is an elected official 
                representing one of the two major political parties, an 
                equal number of elected officials shall be selected 
                from each such party.
            ``(2) Coordination with the department of health and health 
        services.--In the selection of members of the Task Force who 
        are health professionals, including emergency medical 
        professionals, the Secretary shall coordinate the selection 
        with the Secretary of Health and Human Services.
            ``(3) Ex officio members.--The Secretary and the Secretary 
        of Health and Human Services shall each designate one or more 
        officers of their respective Departments to serve as ex officio 
        members of the Task Force. One of the ex officio members from 
        the Department of Homeland Security shall be the designated 
        officer of the Federal Government for purposes of subsection 
        (e) of section 10 of the Federal Advisory Committee Act (5 App. 
        U.S.C.).
    ``(d) Applicability of Federal Advisory Committee Act.--
Notwithstanding section 871(a), the Federal Advisory Committee Act (5 
U.S.C. App.), including subsections (a), (b), and (d) of section 10 of 
such Act, and section 552b(c) of title 5, United States Code, shall 
apply to the Task Force.

``SEC. 1805. COVERED GRANT ELIGIBILITY AND CRITERIA.

    ``(a) Grant Eligibility.--Any State, region, or directly eligible 
tribe shall be eligible to apply for a covered grant.
    ``(b) Grant Criteria.--In awarding covered grants, the Secretary 
shall assist States and local governments in achieving, maintaining, 
and enhancing the essential capabilities for first responders 
established by the Secretary under section 1803.
    ``(c) State Homeland Security Plans.--
            ``(1) Submission of plans.--The Secretary shall require 
        that any State applying to the Secretary for a covered grant 
        must submit to the Secretary a 3-year State homeland security 
        plan that--
                    ``(A) demonstrates the extent to which the State 
                has achieved the essential capabilities that apply to 
                the State;
                    ``(B) demonstrates the needs of the State necessary 
                to achieve, maintain, or enhance the essential 
                capabilities that apply to the State;
                    ``(C) includes a prioritization of such needs based 
                on threat, vulnerability, and consequence assessment 
                factors applicable to the State;
                    ``(D) describes how the State intends--
                            ``(i) to address such needs at the city, 
                        county, regional, tribal, State, and interstate 
                        level, including a precise description of any 
                        regional structure the State has established 
                        for the purpose of organizing homeland security 
                        preparedness activities funded by covered 
                        grants;
                            ``(ii) to use all Federal, State, and local 
                        resources available for the purpose of 
                        addressing such needs; and
                            ``(iii) to give particular emphasis to 
                        regional planning and cooperation, including 
                        the activities of multijurisdictional planning 
                        agencies governed by local officials, both 
                        within its jurisdictional borders and with 
                        neighboring States;
                    ``(E) is developed in consultation with and subject 
                to appropriate comment by local governments within the 
                State; and
                    ``(F) with respect to the emergency preparedness of 
                first responders, addresses the unique aspects of 
                terrorism as part of a comprehensive State emergency 
                management plan.
            ``(2) Approval by secretary.--The Secretary may not award 
        any covered grant to a State unless the Secretary has approved 
        the applicable State homeland security plan.
    ``(d) Consistency With State Plans.--The Secretary shall ensure 
that each covered grant is used to supplement and support, in a 
consistent and coordinated manner, the applicable State homeland 
security plan or plans.
    ``(e) Application for Grant.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, any State, region, or directly eligible tribe may 
        apply for a covered grant by submitting to the Secretary an 
        application at such time, in such manner, and containing such 
        information as is required under this subsection, or as the 
        Secretary may reasonably require.
            ``(2) Deadlines for applications and awards.--All 
        applications for covered grants must be submitted at such time 
        as the Secretary may reasonably require for the fiscal year for 
        which they are submitted. The Secretary shall award covered 
        grants pursuant to all approved applications for such fiscal 
        year as soon as practicable, but not later than March 1 of such 
        year.
            ``(3) Availability of funds.--All funds awarded by the 
        Secretary under covered grants in a fiscal year shall be 
        available for obligation through the end of the subsequent 
        fiscal year.
            ``(4) Minimum contents of application.--The Secretary shall 
        require that each applicant include in its application, at a 
        minimum--
                    ``(A) the purpose for which the applicant seeks 
                covered grant funds and the reasons why the applicant 
                needs the covered grant to meet the essential 
                capabilities for terrorism preparedness within the 
                State, region, or directly eligible tribe to which the 
                application pertains;
                    ``(B) a description of how, by reference to the 
                applicable State homeland security plan or plans under 
                subsection (c), the allocation of grant funding 
                proposed in the application, including, where 
                applicable, the amount not passed through under section 
                1806(g)(1), would assist in fulfilling the essential 
                capabilities specified in such plan or plans;
                    ``(C) a statement of whether a mutual aid agreement 
                applies to the use of all or any portion of the covered 
                grant funds;
                    ``(D) if the applicant is a State, a description of 
                how the State plans to allocate the covered grant funds 
                to regions, local governments, and Indian tribes;
                    ``(E) if the applicant is a region--
                            ``(i) a precise geographical description of 
                        the region and a specification of all 
                        participating and nonparticipating local 
                        governments within the geographical area 
                        comprising that region;
                            ``(ii) a specification of what governmental 
                        entity within the region will administer the 
                        expenditure of funds under the covered grant; 
                        and
                            ``(iii) a designation of a specific 
                        individual to serve as regional liaison;
                    ``(F) a capital budget showing how the applicant 
                intends to allocate and expend the covered grant funds;
                    ``(G) if the applicant is a directly eligible 
                tribe, a designation of a specific individual to serve 
                as the tribal liaison; and
                    ``(H) a statement of how the applicant intends to 
                meet the matching requirement, if any, that applies 
                under section 1806(g)(2).
            ``(5) Regional applications.--
                    ``(A) Relationship to state applications.--A 
                regional application--
                            ``(i) shall be coordinated with an 
                        application submitted by the State or States of 
                        which such region is a part;
                            ``(ii) shall supplement and avoid 
                        duplication with such State application; and
                            ``(iii) shall address the unique regional 
                        aspects of such region's terrorism preparedness 
                        needs beyond those provided for in the 
                        application of such State or States.
                    ``(B) State review and submission.--To ensure the 
                consistency required under subsection (d) and the 
                coordination required under subparagraph (A) of this 
                paragraph, an applicant that is a region must submit 
                its application to each State of which any part is 
                included in the region for review and concurrence prior 
                to the submission of such application to the Secretary. 
                The regional application shall be transmitted to the 
                Secretary through each such State within 30 days of its 
                receipt, unless the Governor of such a State notifies 
                the Secretary, in writing, that such regional 
                application is inconsistent with the State's homeland 
                security plan and provides an explanation of the 
                reasons therefor.
                    ``(C) Distribution of regional awards.--If the 
                Secretary approves a regional application, then the 
                Secretary shall distribute a regional award to the 
                State or States submitting the applicable regional 
                application under subparagraph (B), and each such State 
                shall, not later than the end of the 45-day period 
                beginning on the date after receiving a regional award, 
                pass through to the region all covered grant funds or 
                resources purchased with such funds, except those funds 
                necessary for the State to carry out its 
                responsibilities with respect to such regional 
                application: Provided, That in no such case shall the 
                State or States pass through to the region less than 80 
                percent of the regional award.
                    ``(D) Certifications regarding distribution of 
                grant funds to regions.--Any State that receives a 
                regional award under subparagraph (C) shall certify to 
                the Secretary, by not later than 30 days after the 
                expiration of the period described in subparagraph (C) 
                with respect to the grant, that the State has made 
                available to the region the required funds and 
                resources in accordance with subparagraph (C).
                    ``(E) Direct payments to regions.--If any State 
                fails to pass through a regional award to a region as 
                required by subparagraph (C) within 45 days after 
                receiving such award and does not request or receive an 
                extension of such period under section 1806(h)(2), the 
                region may petition the Secretary to receive directly 
                the portion of the regional award that is required to 
                be passed through to such region under subparagraph 
                (C).
                    ``(F) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(E)(iii) shall--
                            ``(i) coordinate with Federal, State, 
                        local, regional, and private officials within 
                        the region concerning terrorism preparedness;
                            ``(ii) develop a process for receiving 
                        input from Federal, State, local, regional, and 
                        private sector officials within the region to 
                        assist in the development of the regional 
                        application and to improve the region's access 
                        to covered grants; and
                            ``(iii) administer, in consultation with 
                        State, local, regional, and private officials 
                        within the region, covered grants awarded to 
                        the region.
            ``(6) Tribal applications.--
                    ``(A) Submission to the state or states.--To ensure 
                the consistency required under subsection (d), an 
                applicant that is a directly eligible tribe must submit 
                its application to each State within the boundaries of 
                which any part of such tribe is located for direct 
                submission to the Department along with the application 
                of such State or States.
                    ``(B) Opportunity for state comment.--Before 
                awarding any covered grant to a directly eligible 
                tribe, the Secretary shall provide an opportunity to 
                each State within the boundaries of which any part of 
                such tribe is located to comment to the Secretary on 
                the consistency of the tribe's application with the 
                State's homeland security plan. Any such comments shall 
                be submitted to the Secretary concurrently with the 
                submission of the State and tribal applications.
                    ``(C) Final authority.--The Secretary shall have 
                final authority to determine the consistency of any 
                application of a directly eligible tribe with the 
                applicable State homeland security plan or plans, and 
                to approve any application of such tribe. The Secretary 
                shall notify each State within the boundaries of which 
                any part of such tribe is located of the approval of an 
                application by such tribe.
                    ``(D) Tribal liaison.--A tribal liaison designated 
                under paragraph (4)(G) shall--
                            ``(i) coordinate with Federal, State, 
                        local, regional, and private officials 
                        concerning terrorism preparedness;
                            ``(ii) develop a process for receiving 
                        input from Federal, State, local, regional, and 
                        private sector officials to assist in the 
                        development of the application of such tribe 
                        and to improve the tribe's access to covered 
                        grants; and
                            ``(iii) administer, in consultation with 
                        State, local, regional, and private officials, 
                        covered grants awarded to such tribe.
                    ``(E) Limitation on the number of direct grants.--
                The Secretary may make covered grants directly to not 
                more than 20 directly eligible tribes per fiscal year.
                    ``(F) Tribes not receiving direct grants.--An 
                Indian tribe that does not receive a grant directly 
                under this section is eligible to receive funds under a 
                covered grant from the State or States within the 
                boundaries of which any part of such tribe is located, 
                consistent with the homeland security plan of the State 
                as described in subsection (c). If a State fails to 
                comply with section 1806(g)(1), the tribe may request 
                payment under section 1806(h)(3) in the same manner as 
                a local government.
            ``(7) Equipment standards.--If an applicant for a covered 
        grant proposes to upgrade or purchase, with assistance provided 
        under the grant, new equipment or systems that do not meet or 
        exceed any applicable national voluntary consensus standards 
        established by the Secretary under section 1807(a), the 
        applicant shall include in the application an explanation of 
        why such equipment or systems will serve the needs of the 
        applicant better than equipment or systems that meet or exceed 
        such standards.
    ``(f) First Responder Grants Board.--
            ``(1) Establishment of board.--The Secretary shall 
        establish a First Responder Grants Board, consisting of--
                    ``(A) the Secretary;
                    ``(B) the Under Secretary for Emergency 
                Preparedness and Response;
                    ``(C) the Under Secretary for Border and 
                Transportation Security;
                    ``(D) the Under Secretary for Information Analysis 
                and Infrastructure Protection;
                    ``(E) the Under Secretary for Science and 
                Technology; and
                    ``(F) the Director of the Office for Domestic 
                Preparedness.
            ``(2) Chairman.--
                    ``(A) In general.--The Secretary shall be the 
                Chairman of the Board.
                    ``(B) Exercise of authorities by deputy 
                secretary.--The Deputy Secretary of Homeland Security 
                may exercise the authorities of the Chairman, if the 
                Secretary so directs.
            ``(3) Ranking of grant applications.--
                    ``(A) Prioritization of grants.--The Board--
                            ``(i) shall evaluate and annually 
                        prioritize all pending applications for covered 
                        grants based upon the degree to which they 
                        would, by achieving, maintaining, or enhancing 
                        the essential capabilities of the applicants on 
                        a nationwide basis, lessen the threat to, 
                        vulnerability of, and consequences for persons 
                        and critical infrastructure; and
                            ``(ii) in evaluating the threat to persons 
                        and critical infrastructure for purposes of 
                        prioritizing covered grants, shall give greater 
                        weight to threats of terrorism based on their 
                        specificity and credibility, including any 
                        pattern of repetition.
                    ``(B) Minimum amounts.--After evaluating and 
                prioritizing grant applications under subparagraph (A), 
                the Board shall ensure that, for each fiscal year--
                            ``(i) each of the States, other than the 
                        Virgin Islands, American Samoa, Guam, and the 
                        Northern Mariana Islands, that has an approved 
                        State homeland security plan receives no less 
                        than 0.25 percent of the funds available for 
                        covered grants for that fiscal year for 
                        purposes of implementing its homeland security 
                        plan in accordance with the prioritization of 
                        needs under subsection (c)(1)(C);
                            ``(ii) each of the States, other than the 
                        Virgin Islands, American Samoa, Guam, and the 
                        Northern Mariana Islands, that has an approved 
                        State homeland security plan and that meets one 
                        or both of the additional high-risk qualifying 
                        criteria under subparagraph (C) receives no 
                        less than 0.45 percent of the funds available 
                        for covered grants for that fiscal year for 
                        purposes of implementing its homeland security 
                        plan in accordance with the prioritization of 
                        needs under subsection (c)(1)(C);
                            ``(iii) the Virgin Islands, American Samoa, 
                        Guam, and the Northern Mariana Islands each 
                        receives no less than 0.08 percent of the funds 
                        available for covered grants for that fiscal 
                        year for purposes of implementing its approved 
                        State homeland security plan in accordance with 
                        the prioritization of needs under subsection 
                        (c)(1)(C); and
                            ``(iv) directly eligible tribes 
                        collectively receive no less than 0.08 percent 
                        of the funds available for covered grants for 
                        such fiscal year for purposes of addressing the 
                        needs identified in the applications of such 
                        tribes, consistent with the homeland security 
                        plan of each State within the boundaries of 
                        which any part of any such tribe is located, 
                        except that this clause shall not apply with 
                        respect to funds available for a fiscal year if 
                        the Secretary receives less than 5 applications 
                        for such fiscal year from such tribes under 
                        subsection (e)(6)(A) or does not approve at 
                        least one such application.
                    ``(C) Additional high-risk qualifying criteria.--
                For purposes of subparagraph (B)(ii), additional high-
                risk qualifying criteria consist of--
                            ``(i) having a significant international 
                        land border; or
                            ``(ii) adjoining a body of water within 
                        North America through which an international 
                        boundary line extends.
            ``(4) Effect of regional awards on state minimum.--Any 
        regional award, or portion thereof, provided to a State under 
        subsection (e)(5)(C) shall not be considered in calculating the 
        minimum State award under paragraph (3)(B) of this subsection.
            ``(5) Functions of under secretaries.--The Under 
        Secretaries referred to in paragraph (1) shall seek to ensure 
        that the relevant expertise and input of the staff of their 
        directorates are available to and considered by the Board.

``SEC. 1806. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

    ``(a) In General.--A covered grant may be used for--
            ``(1) purchasing or upgrading equipment, including computer 
        software, to enhance terrorism preparedness and response;
            ``(2) exercises to strengthen terrorism preparedness and 
        response;
            ``(3) training for prevention (including detection) of, 
        preparedness for, or response to attacks involving weapons of 
        mass destruction, including training in the use of equipment 
        and computer software;
            ``(4) developing or updating response plans;
            ``(5) establishing or enhancing mechanisms for sharing 
        terrorism threat information;
            ``(6) systems architecture and engineering, program 
        planning and management, strategy formulation and strategic 
        planning, life-cycle systems design, product and technology 
        evaluation, and prototype development for terrorism 
        preparedness and response purposes;
            ``(7) additional personnel costs resulting from--
                    ``(A) elevations in the threat alert level of the 
                Homeland Security Advisory System by the Secretary, or 
                a similar elevation in threat alert level issued by a 
                State, region, or local government with the approval of 
                the Secretary;
                    ``(B) travel to and participation in exercises and 
                training in the use of equipment and on prevention 
                activities; and
                    ``(C) the temporary replacement of personnel during 
                any period of travel to and participation in exercises 
                and training in the use of equipment and on prevention 
                activities;
            ``(8) the costs of equipment (including software) required 
        to receive, transmit, handle, and store classified information;
            ``(9) protecting critical infrastructure against potential 
        attack by the addition of barriers, fences, gates, and other 
        such devices, except that the cost of such measures may not 
        exceed the greater of--
                    ``(A) $1,000,000 per project; or
                    ``(B) such greater amount as may be approved by the 
                Secretary, which may not exceed 10 percent of the total 
                amount of the covered grant;
            ``(10) the costs of commercially available interoperable 
        communications equipment (which, where applicable, is based on 
        national, voluntary consensus standards) that the Secretary, in 
        consultation with the Chairman of the Federal Communications 
        Commission, deems best suited to facilitate interoperability, 
        coordination, and integration between and among emergency 
        communications systems, and that complies with prevailing grant 
        guidance of the Department for interoperable communications;
            ``(11) educational curricula development for first 
        responders to ensure that they are prepared for terrorist 
        attacks;
            ``(12) training and exercises to assist public elementary 
        and secondary schools in developing and implementing programs 
        to instruct students regarding age-appropriate skills to 
        prepare for and respond to an act of terrorism;
            ``(13) paying of administrative expenses directly related 
        to administration of the grant, except that such expenses may 
        not exceed 3 percent of the amount of the grant; and
            ``(14) other appropriate activities as determined by the 
        Secretary.
    ``(b) Prohibited Uses.--Funds provided as a covered grant may not 
be used--
            ``(1) to supplant State or local funds;
            ``(2) to construct buildings or other physical facilities;
            ``(3) to acquire land; or
            ``(4) for any State or local government cost sharing 
        contribution.
    ``(c) Multiple-Purpose Funds.--Nothing in this section shall be 
construed to preclude State and local governments from using covered 
grant funds in a manner that also enhances first responder preparedness 
for emergencies and disasters unrelated to acts of terrorism, if such 
use assists such governments in achieving essential capabilities for 
terrorism preparedness established by the Secretary under section 1803.
    ``(d) Reimbursement of Costs.--In addition to the activities 
described in subsection (a), a covered grant may be used to provide a 
reasonable stipend to paid-on-call or volunteer first responders who 
are not otherwise compensated for travel to or participation in 
training covered by this section. Any such reimbursement shall not be 
considered compensation for purposes of rendering such a first 
responder an employee under the Fair Labor Standards Act of 1938 (29 
U.S.C. 201 et seq.).
    ``(e) Assistance Requirement.--The Secretary may not request that 
equipment paid for, wholly or in part, with funds provided as a covered 
grant be made available for responding to emergencies in surrounding 
States, regions, and localities, unless the Secretary undertakes to pay 
the costs directly attributable to transporting and operating such 
equipment during such response.
    ``(f) Flexibility in Unspent Homeland Security Grant Funds.--Upon 
request by the recipient of a covered grant, the Secretary may 
authorize the grantee to transfer all or part of funds provided as the 
covered grant from uses specified in the grant agreement to other uses 
authorized under this section, if the Secretary determines that such 
transfer is in the interests of homeland security.
    ``(g) State, Regional, and Tribal Responsibilities.--
            ``(1) Pass-through.--The Secretary shall require a 
        recipient of a covered grant that is a State to obligate or 
        otherwise make available to local governments, first 
        responders, and other local groups, to the extent required 
        under the State homeland security plan or plans specified in 
        the application for the grant, not less than 80 percent of the 
        grant funds, resources purchased with the grant funds having a 
        value equal to at least 80 percent of the amount of the grant, 
        or a combination thereof, by not later than the end of the 45-
        day period beginning on the date the grant recipient receives 
        the grant funds.
            ``(2) Cost sharing.--
                    ``(A) In general.--The Federal share of the costs 
                of an activity carried out with a covered grant to a 
                State, region, or directly eligible tribe awarded after 
                the 2-year period beginning on the date of the 
                enactment of this section shall not exceed 75 percent.
                    ``(B) Interim rule.--The Federal share of the costs 
                of an activity carried out with a covered grant awarded 
                before the end of the 2-year period beginning on the 
                date of the enactment of this section shall be 100 
                percent.
                    ``(C) In-kind matching.--Each recipient of a 
                covered grant may meet the matching requirement under 
                subparagraph (A) by making in-kind contributions of 
                goods or services that are directly linked with the 
                purpose for which the grant is made, including, but not 
                limited to, any necessary personnel overtime, 
                contractor services, administrative costs, equipment 
                fuel and maintenance, and rental space.
            ``(3) Certifications regarding distribution of grant funds 
        to local governments.--Any State that receives a covered grant 
        shall certify to the Secretary, by not later than 30 days after 
        the expiration of the period described in paragraph (1) with 
        respect to the grant, that the State has made available for 
        expenditure by local governments, first responders, and other 
        local groups the required amount of grant funds pursuant to 
        paragraph (1).
            ``(4) Quarterly report on homeland security spending.--The 
        Federal share described in paragraph (2)(A) may be increased by 
        up to 2 percent for any State, region, or directly eligible 
        tribe that, not later than 30 days after the end of each fiscal 
        quarter, submits to the Secretary a report on that fiscal 
        quarter. Each such report must include, for each recipient of a 
        covered grant or a pass-through under paragraph (1)--
                    ``(A) the amount obligated to that recipient in 
                that quarter;
                    ``(B) the amount expended by that recipient in that 
                quarter; and
                    ``(C) a summary description of the items purchased 
                by such recipient with such amount.
            ``(5) Annual report on homeland security spending.--Each 
        recipient of a covered grant shall submit an annual report to 
        the Secretary not later than 60 days after the end of each 
        fiscal year. Each recipient of a covered grant that is a region 
        must simultaneously submit its report to each State of which 
        any part is included in the region. Each recipient of a covered 
        grant that is a directly eligible tribe must simultaneously 
        submit its report to each State within the boundaries of which 
        any part of such tribe is located. Each report must include the 
        following:
                    ``(A) The amount, ultimate recipients, and dates of 
                receipt of all funds received under the grant during 
                the previous fiscal year.
                    ``(B) The amount and the dates of disbursements of 
                all such funds expended in compliance with paragraph 
                (1) or pursuant to mutual aid agreements or other 
                sharing arrangements that apply within the State, 
                region, or directly eligible tribe, as applicable, 
                during the previous fiscal year.
                    ``(C) How the funds were utilized by each ultimate 
                recipient or beneficiary during the preceding fiscal 
                year.
                    ``(D) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans were achieved, maintained, or enhanced as 
                the result of the expenditure of grant funds during the 
                preceding fiscal year.
                    ``(E) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans remain unmet.
            ``(6) Inclusion of restricted annexes.--A recipient of a 
        covered grant may submit to the Secretary an annex to the 
        annual report under paragraph (5) that is subject to 
        appropriate handling restrictions, if the recipient believes 
        that discussion in the report of unmet needs would reveal 
        sensitive but unclassified information.
            ``(7) Provision of reports.--The Secretary shall ensure 
        that each annual report under paragraph (5) is provided to the 
        Under Secretary for Emergency Preparedness and Response and the 
        Director of the Office for Domestic Preparedness.
    ``(h) Incentives to Efficient Administration of Homeland Security 
Grants.--
            ``(1) Penalties for delay in passing through local share.--
        If a recipient of a covered grant that is a State fails to pass 
        through to local governments, first responders, and other local 
        groups funds or resources required by subsection (g)(1) within 
        45 days after receiving funds under the grant, the Secretary 
        may--
                    ``(A) reduce grant payments to the grant recipient 
                from the portion of grant funds that is not required to 
                be passed through under subsection (g)(1);
                    ``(B) terminate payment of funds under the grant to 
                the recipient, and transfer the appropriate portion of 
                those funds directly to local first responders that 
                were intended to receive funding under that grant; or
                    ``(C) impose additional restrictions or burdens on 
                the recipient's use of funds under the grant, which may 
                include--
                            ``(i) prohibiting use of such funds to pay 
                        the grant recipient's grant-related overtime or 
                        other expenses;
                            ``(ii) requiring the grant recipient to 
                        distribute to local government beneficiaries 
                        all or a portion of grant funds that are not 
                        required to be passed through under subsection 
                        (g)(1); or
                            ``(iii) for each day that the grant 
                        recipient fails to pass through funds or 
                        resources in accordance with subsection (g)(1), 
                        reducing grant payments to the grant recipient 
                        from the portion of grant funds that is not 
                        required to be passed through under subsection 
                        (g)(1), except that the total amount of such 
                        reduction may not exceed 20 percent of the 
                        total amount of the grant.
            ``(2) Extension of period.--The Governor of a State may 
        request in writing that the Secretary extend the 45-day period 
        under section 1805(e)(5)(E) or paragraph (1) for an additional 
        15-day period. The Secretary may approve such a request, and 
        may extend such period for additional 15-day periods, if the 
        Secretary determines that the resulting delay in providing 
        grant funding to the local government entities that will 
        receive funding under the grant will not have a significant 
        detrimental impact on such entities' terrorism preparedness 
        efforts.
            ``(3) Provision of non-local share to local government.--
                    ``(A) In general.--The Secretary may upon request 
                by a local government pay to the local government a 
                portion of the amount of a covered grant awarded to a 
                State in which the local government is located, if--
                            ``(i) the local government will use the 
                        amount paid to expedite planned enhancements to 
                        its terrorism preparedness as described in any 
                        applicable State homeland security plan or 
                        plans;
                            ``(ii) the State has failed to pass through 
                        funds or resources in accordance with 
                        subsection (g)(1); and
                            ``(iii) the local government complies with 
                        subparagraphs (B) and (C).
                    ``(B) Showing required.--To receive a payment under 
                this paragraph, a local government must demonstrate 
                that--
                            ``(i) it is identified explicitly as an 
                        ultimate recipient or intended beneficiary in 
                        the approved grant application;
                            ``(ii) it was intended by the grantee to 
                        receive a severable portion of the overall 
                        grant for a specific purpose that is identified 
                        in the grant application;
                            ``(iii) it petitioned the grantee for the 
                        funds or resources after expiration of the 
                        period within which the funds or resources were 
                        required to be passed through under subsection 
                        (g)(1); and
                            ``(iv) it did not receive the portion of 
                        the overall grant that was earmarked or 
                        designated for its use or benefit.
                    ``(C) Effect of payment.--Payment of grant funds to 
                a local government under this paragraph--
                            ``(i) shall not affect any payment to 
                        another local government under this paragraph; 
                        and
                            ``(ii) shall not prejudice consideration of 
                        a request for payment under this paragraph that 
                        is submitted by another local government.
                    ``(D) Deadline for action by secretary.--The 
                Secretary shall approve or disapprove each request for 
                payment under this paragraph by not later than 15 days 
                after the date the request is received by the 
                Department.
    ``(i) Reports to Congress.--The Secretary shall submit an annual 
report to the Congress by December 31 of each year--
            ``(1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each State, 
        region, and directly eligible tribe in the preceding fiscal 
        year;
            ``(2) containing information on the use of such grant funds 
        by grantees; and
            ``(3) describing--
                    ``(A) the Nation's progress in achieving, 
                maintaining, and enhancing the essential capabilities 
                established under section 1803(a) as a result of the 
                expenditure of covered grant funds during the preceding 
                fiscal year; and
                    ``(B) an estimate of the amount of expenditures 
                required to attain across the United States the 
                essential capabilities established under section 
                1803(a).

``SEC. 1807. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
              TRAINING.

    ``(a) Equipment Standards.--
            ``(1) In general.--The Secretary, in consultation with the 
        Under Secretaries for Emergency Preparedness and Response and 
        Science and Technology and the Director of the Office for 
        Domestic Preparedness, shall, not later than 6 months after the 
        date of enactment of this section, support the development of, 
        promulgate, and update as necessary national voluntary 
        consensus standards for the performance, use, and validation of 
        first responder equipment for purposes of section 1805(e)(7). 
        Such standards--
                    ``(A) shall be, to the maximum extent practicable, 
                consistent with any existing voluntary consensus 
                standards;
                    ``(B) shall take into account, as appropriate, new 
                types of terrorism threats that may not have been 
                contemplated when such existing standards were 
                developed;
                    ``(C) shall be focused on maximizing 
                interoperability, interchangeability, durability, 
                flexibility, efficiency, efficacy, portability, 
                sustainability, and safety; and
                    ``(D) shall cover all appropriate uses of the 
                equipment.
            ``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary shall specifically consider the following 
        categories of first responder equipment:
                    ``(A) Thermal imaging equipment.
                    ``(B) Radiation detection and analysis equipment.
                    ``(C) Biological detection and analysis equipment.
                    ``(D) Chemical detection and analysis equipment.
                    ``(E) Decontamination and sterilization equipment.
                    ``(F) Personal protective equipment, including 
                garments, boots, gloves, and hoods and other protective 
                clothing.
                    ``(G) Respiratory protection equipment.
                    ``(H) Interoperable communications, including 
                wireless and wireline voice, video, and data networks.
                    ``(I) Explosive mitigation devices and explosive 
                detection and analysis equipment.
                    ``(J) Containment vessels.
                    ``(K) Contaminant-resistant vehicles.
                    ``(L) Such other equipment for which the Secretary 
                determines that national voluntary consensus standards 
                would be appropriate.
    ``(b) Training Standards.--
            ``(1) In general.--The Secretary, in consultation with the 
        Under Secretaries for Emergency Preparedness and Response and 
        Science and Technology and the Director of the Office for 
        Domestic Preparedness, shall support the development of, 
        promulgate, and regularly update as necessary national 
        voluntary consensus standards for first responder training 
        carried out with amounts provided under covered grant programs, 
        that will enable State and local government first responders to 
        achieve optimal levels of terrorism preparedness as quickly as 
        practicable. Such standards shall give priority to providing 
        training to--
                    ``(A) enable first responders to prevent, prepare 
                for, respond to, and mitigate terrorist threats, 
                including threats from chemical, biological, nuclear, 
                and radiological weapons and explosive devices capable 
                of inflicting significant human casualties; and
                    ``(B) familiarize first responders with the proper 
                use of equipment, including software, developed 
                pursuant to the standards established under subsection 
                (a).
            ``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary specifically shall include the following 
        categories of first responder activities:
                    ``(A) Regional planning.
                    ``(B) Joint exercises.
                    ``(C) Intelligence collection, analysis, and 
                sharing.
                    ``(D) Emergency notification of affected 
                populations.
                    ``(E) Detection of biological, nuclear, 
                radiological, and chemical weapons of mass destruction.
                    ``(F) Such other activities for which the Secretary 
                determines that national voluntary consensus training 
                standards would be appropriate.
            ``(3) Consistency.--In carrying out this subsection, the 
        Secretary shall ensure that such training standards are 
        consistent with the principles of emergency preparedness for 
        all hazards.
    ``(c) Consultation With Standards Organizations.--In establishing 
national voluntary consensus standards for first responder equipment 
and training under this section, the Secretary shall consult with 
relevant public and private sector groups, including--
            ``(1) the National Institute of Standards and Technology;
            ``(2) the National Fire Protection Association;
            ``(3) the National Association of County and City Health 
        Officials;
            ``(4) the Association of State and Territorial Health 
        Officials;
            ``(5) the American National Standards Institute;
            ``(6) the National Institute of Justice;
            ``(7) the Inter-Agency Board for Equipment Standardization 
        and Interoperability;
            ``(8) the National Public Health Performance Standards 
        Program;
            ``(9) the National Institute for Occupational Safety and 
        Health;
            ``(10) ASTM International;
            ``(11) the International Safety Equipment Association;
            ``(12) the Emergency Management Accreditation Program; and
            ``(13) to the extent the Secretary considers appropriate, 
        other national voluntary consensus standards development 
        organizations, other interested Federal, State, and local 
        agencies, and other interested persons.
    ``(d) Coordination With Secretary of HHS.--In establishing any 
national voluntary consensus standards under this section for first 
responder equipment or training that involve or relate to health 
professionals, including emergency medical professionals, the Secretary 
shall coordinate activities under this section with the Secretary of 
Health and Human Services.''.
    (b) Definition of Emergency Response Providers.--Paragraph (6) of 
section 2 of the Homeland Security Act of 2002 (Public Law 107-296; 6 
U.S.C. 101(6)) is amended by striking ``includes'' and all that follows 
and inserting ``includes Federal, State, and local governmental and 
nongovernmental emergency public safety, law enforcement, fire, 
emergency response, emergency medical (including hospital emergency 
facilities), and related personnel, organizations, agencies, and 
authorities.''.
    (c) Temporary Limitations on Application.--
            (1) 1-year delay in application.--The following provisions 
        of title XVIII of the Homeland Security Act of 2002, as amended 
        by subsection (a), shall not apply during the 1-year period 
        beginning on the date of the enactment of this Act:
                    (A) Subsections (b), (c), and (e)(4)(A) and (B) of 
                section 1805.
                    (B) In section 1805(f)(3)(A), the phrase ``, by 
                enhancing the essential capabilities of the 
                applicants,''.
            (2) 2-year delay in application.--The following provisions 
        of title XVIII of the Homeland Security Act of 2002, as amended 
        by subsection (a), shall not apply during the 2-year period 
        beginning on the date of the enactment of this Act:
            (A) Subparagraphs (D) and (E) of section 1806(g)(5).
            (B) Section 1806(i)(3).

SEC. 5004. MODIFICATION OF HOMELAND SECURITY ADVISORY SYSTEM.

    (a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 (Public Law 107-296; 6 U.S.C. 121 et seq.) is amended by 
adding at the end the following:

``SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

    ``(a) In General.--The Secretary shall revise the Homeland Security 
Advisory System referred to in section 201(d)(7) to require that any 
designation of a threat level or other warning shall be accompanied by 
a designation of the geographic regions or economic sectors to which 
the designation applies.
    ``(b) Reports.--The Secretary shall report to the Congress annually 
by not later than December 31 each year regarding the geographic 
region-specific warnings and economic sector-specific warnings issued 
during the preceding fiscal year under the Homeland Security Advisory 
System referred to in section 201(d)(7), and the bases for such 
warnings. The report shall be submitted in unclassified form and may, 
as necessary, include a classified annex.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by 
inserting after the item relating to section 202 the following:

``203. Homeland Security Advisory System.''.

SEC. 5005. COORDINATION OF INDUSTRY EFFORTS.

    Section 102(f) of the Homeland Security Act of 2002 (Public Law 
107-296; 6 U.S.C. 112(f)) is amended by striking ``and'' after the 
semicolon at the end of paragraph (6), by striking the period at the 
end of paragraph (7) and inserting ``; and'', and by adding at the end 
the following:
            ``(8) coordinating industry efforts, with respect to 
        functions of the Department of Homeland Security, to identify 
        private sector resources and capabilities that could be 
        effective in supplementing Federal, State, and local government 
        agency efforts to prevent or respond to a terrorist attack.''.

SEC. 5006. SUPERSEDED PROVISION.

    This subtitle supersedes section 1014 of Public Law 107-56.

SEC. 5007. SENSE OF CONGRESS REGARDING INTEROPERABLE COMMUNICATIONS.

    (a) Finding.--The Congress finds that--
            (1) many first responders working in the same jurisdiction 
        or in different jurisdictions cannot effectively and 
        efficiently communicate with one another; and
            (2) their inability to do so threatens the public's safety 
        and may result in unnecessary loss of lives and property.
    (b) Sense of Congress.--It is the sense of the Congress that 
interoperable emergency communications systems and radios should 
continue to be deployed as soon as practicable for use by the first 
responder community, and that upgraded and new digital communications 
systems and new digital radios must meet prevailing national, voluntary 
consensus standards for interoperability.

SEC. 5008. SENSE OF CONGRESS REGARDING CITIZEN CORPS COUNCILS.

    (a) Finding.--The Congress finds that Citizen Corps councils help 
to enhance local citizen participation in terrorism preparedness by 
coordinating multiple Citizen Corps programs, developing community 
action plans, assessing possible threats, and identifying local 
resources.
    (b) Sense of Congress.--It is the sense of the Congress that 
individual Citizen Corps councils should seek to enhance the 
preparedness and response capabilities of all organizations 
participating in the councils, including by providing funding to as 
many of their participating organizations as practicable to promote 
local terrorism preparedness programs.

SEC. 5009. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION SYSTEM.

    (a) Study.--The Secretary of Homeland Security, in consultation 
with the heads of other appropriate Federal agencies and 
representatives of providers and participants in the telecommunications 
industry, shall conduct a study to determine whether it is cost-
effective, efficient, and feasible to establish and implement an 
emergency telephonic alert notification system that will--
            (1) alert persons in the United States of imminent or 
        current hazardous events caused by acts of terrorism; and
            (2) provide information to individuals regarding 
        appropriate measures that may be undertaken to alleviate or 
        minimize threats to their safety and welfare posed by such 
        events.
    (b) Technologies to Consider.--In conducting the study, the 
Secretary shall consider the use of the telephone, wireless 
communications, and other existing communications networks to provide 
such notification.
    (c) Report.--Not later than 9 months after the date of the 
enactment of this Act, the Secretary shall submit to the Congress a 
report regarding the conclusions of the study.

SEC. 5010. REQUIRED COORDINATION.

    The Secretary of Homeland Security shall ensure that there is 
effective and ongoing coordination of Federal efforts to prevent, 
prepare for, and respond to acts of terrorism and other major disasters 
and emergencies among the divisions of the Department of Homeland 
Security, including the Directorate of Emergency Preparedness and 
Response and the Office for State and Local Government Coordination and 
Preparedness.

            Subtitle B--Government Reorganization Authority

SEC. 5021. AUTHORIZATION OF INTELLIGENCE COMMUNITY REORGANIZATION 
              PLANS.

    (a) Reorganization Plans.--Section 903(a)(2) of title 5, United 
States Code, is amended to read as follows:
            ``(2) the abolition of all or a part of the functions of an 
        agency;''.
    (b) Repeal of Limitations.--Section 905 of title 5, United States 
Code, is amended to read as follows:
``Sec. 905. Limitation on authority.
    ``The authority to submit reorganization plans under this chapter 
is limited to the following organizational units:
            ``(1) The Office of the National Intelligence Director.
            ``(2) The Central Intelligence Agency.
            ``(3) The National Security Agency.
            ``(4) The Defense Intelligence Agency.
            ``(5) The National Geospatial-Intelligence Agency.
            ``(6) The National Reconnaissance Office.
            ``(7) Other offices within the Department of Defense for 
        the collection of specialized national intelligence through 
        reconnaissance programs.
            ``(8) The intelligence elements of the Army, the Navy, the 
        Air Force, the Marine Corps, the Federal Bureau of 
        Investigation, and the Department of Energy.
            ``(9) The Bureau of Intelligence and Research of the 
        Department of State.
            ``(10) The Office of Intelligence Analysis of the 
        Department of Treasury.
            ``(11) The elements of the Department of Homeland Security 
        concerned with the analysis of intelligence information, 
        including the Office of Intelligence of the Coast Guard.
            ``(12) Such other elements of any other department or 
        agency as may be designated by the President, or designated 
        jointly by the National Intelligence Director and the head of 
        the department or agency concerned, as an element of the 
        intelligence community.''.
    (c) Reorganization Plans.--Section 903(a) of title 5, United States 
Code, is amended--
            (1) in paragraph (5), by striking ``or'' after the 
        semicolon;
            (2) in paragraph (6), by striking the period and inserting 
        ``; or''; and
            (3) by inserting after paragraph (6) the following:
            ``(7) the creation of an agency.''.
    (d) Application of Chapter.--Chapter 9 of title 5, United States 
Code, is amended by adding at the end the following:
``Sec. 913. Application of chapter
    ``This chapter shall apply to any reorganization plan transmitted 
to Congress in accordance with section 903(b) on or after the date of 
enactment of this section.''.
    (e) Technical and Conforming Amendments.--
            (1) Table of sections.--The table of sections for chapter 9 
        of title 5, United States Code, is amended by adding after the 
        item relating to section 912 the following:

``913. Application of chapter.''.
            (2) References.--Chapter 9 of title 5, United States Code, 
        is amended--
                    (A) in section 908(1), by striking ``on or before 
                December 31, 1984''; and
                    (B) in section 910, by striking ``Government 
                Operations'' each place it appears and inserting 
                ``Government Reform''.
            (3) Date modification.--Section 909 of title 5, United 
        States Code, is amended in the first sentence by striking 
        ``19'' and inserting ``20''.

   Subtitle C--Restructuring Relating to the Department of Homeland 
                  Security and Congressional Oversight

SEC. 5025. RESPONSIBILITIES OF COUNTERNARCOTICS OFFICE.

    (a) Amendment.--Section 878 of the Homeland Security Act of 2002 (6 
U.S.C. 458) is amended to read as follows:

``SEC. 878. OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

    ``(a) Office.--There shall be in the Department an Office of 
counternarcotics Enforcement, which shall be headed by a Director 
appointed by the President, by and with the advice and consent of the 
Senate.
    ``(b) Assignment of Personnel.--(1) The Secretary shall assign to 
the Office permanent staff and other appropriate personnel detailed 
from other subdivisions of the Department to carry out responsibilities 
under this section.
    ``(2) The Secretary shall designate senior employees from each 
appropriate subdivision of the Department that has significant 
counternarcotics responsibilities to act as a liaison between that 
subdivision and the Office of counternarcotics Enforcement.
    ``(c) Limitation on Concurrent Employment.--Except as provided in 
subsection (d), the Director of the Office of counternarcotics 
Enforcement shall not be employed by, assigned to, or serve as the head 
of, any other branch of the Federal Government, any State or local 
government, or any subdivision of the Department other than the Office 
of counternarcotics Enforcement.
    ``(d) Eligibility To Serve as the United States Interdiction 
Coordinator.--The Director of the Office of counternarcotics 
Enforcement may be appointed as the United States Interdiction 
Coordinator by the Director of the Office of National Drug Control 
Policy, and shall be the only person at the Department eligible to be 
so appointed.
    ``(e) Responsibilities.--The Secretary shall direct the Director of 
the Office of counternarcotics Enforcement--
            ``(1) to coordinate policy and operations within the 
        Department, between the Department and other Federal 
        departments and agencies, and between the Department and State 
        and local agencies with respect to stopping the entry of 
        illegal drugs into the United States;
            ``(2) to ensure the adequacy of resources within the 
        Department for stopping the entry of illegal drugs into the 
        United States;
            ``(3) to recommend the appropriate financial and personnel 
        resources necessary to help the Department better fulfill its 
        responsibility to stop the entry of illegal drugs into the 
        United States;
            ``(4) to track and sever connections between illegal drug 
        trafficking and terrorism; and
            ``(5) to be a representative of the Department on all task 
        forces, committees, or other entities whose purpose is to 
        coordinate the counternarcotics enforcement activities of the 
        Department and other Federal, state or local agencies.
    ``(f) Reports to Congress.--
            ``(1) Annual budget review.--The Director of the Office of 
        counternarcotics Enforcement shall, not later than 30 days 
        after the submission by the President to Congress of any 
        request for expenditures for the Department, submit to the 
        Committees on Appropriations and the authorizing committees of 
        jurisdiction of the House of Representatives and the Senate a 
        review and evaluation of such request. The review and 
        evaluation shall--
                    ``(A) identify any request or subpart of any 
                request that affects or may affect the counternarcotics 
                activities of the Department or any of its 
                subdivisions, or that affects the ability of the 
                Department or any subdivision of the Department to meet 
                its responsibility to stop the entry of illegal drugs 
                into the United States;
                    ``(B) describe with particularity how such 
                requested funds would be or could be expended in 
                furtherance of counternarcotics activities; and
                    ``(C) compare such requests with requests for 
                expenditures and amounts appropriated by Congress in 
                the previous fiscal year.
            ``(2) Evaluation of counternarcotics activities.--The 
        Director of the Office of counternarcotics Enforcement shall, 
        not later than February 1 of each year, submit to the 
        Committees on Appropriations and the authorizing committees of 
        jurisdiction of the House of Representatives and the Senate a 
        review and evaluation of the counternarcotics activities of the 
        Department for the previous fiscal year. The review and 
        evaluation shall--
                    ``(A) describe the counternarcotics activities of 
                the Department and each subdivision of the Department 
                (whether individually or in cooperation with other 
                subdivisions of the Department, or in cooperation with 
                other branches of the Federal Government or with State 
                or local agencies), including the methods, procedures, 
                and systems (including computer systems) for 
                collecting, analyzing, sharing, and disseminating 
                information concerning narcotics activity within the 
                Department and between the Department and other 
                Federal, State, and local agencies;
                    ``(B) describe the results of those activities, 
                using quantifiable data whenever possible;
                    ``(C) state whether those activities were 
                sufficient to meet the responsibility of the Department 
                to stop the entry of illegal drugs into the United 
                States, including a description of the performance 
                measures of effectiveness that were used in making that 
                determination; and
                    ``(D) recommend, where appropriate, changes to 
                those activities to improve the performance of the 
                Department in meeting its responsibility to stop the 
                entry of illegal drugs into the United States.
            ``(3) Classified or law enforcement sensitive 
        information.--Any content of a review and evaluation described 
        in the reports required in this subsection that involves 
        information classified under criteria established by an 
        Executive order, or whose public disclosure, as determined by 
        the Secretary, would be detrimental to the law enforcement or 
        national security activities of the Department or any other 
        Federal, State, or local agency, shall be presented to Congress 
        separately from the rest of the review and evaluation.''.
    (b) Conforming Amendment.--Section 103(a) of the Homeland Security 
Act of 2002 (6 U.S.C. 113(a)) is amended--
            (1) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            (2) by inserting after paragraph (7) the following new 
        paragraph (8):
            ``(8) A Director of the Office of counternarcotics 
        Enforcement.''.
    (c) Authorization of Appropriations.--Of the amounts appropriated 
for the Department of Homeland Security for Departmental management and 
operations for fiscal year 2005, there is authorized up to $6,000,000 
to carry out section 878 of the Department of Homeland Security Act of 
2002 (as amended by this section).

SEC. 5026. USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN 
              EMPLOYEE PERFORMANCE APPRAISALS.

    (a) In General.--Subtitle E of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 411 and following) is amended by adding at the 
end the following:

``SEC. 843. USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN 
              EMPLOYEE PERFORMANCE APPRAISALS.

    ``(a) In General.--Each subdivision of the Department that is a 
National Drug Control Program Agency shall include as one of the 
criteria in its performance appraisal system, for each employee 
directly or indirectly involved in the enforcement of Federal, State, 
or local narcotics laws, the performance of that employee with respect 
to the enforcement of Federal, State, or local narcotics laws, relying 
to the greatest extent practicable on objective performance measures, 
including--
            ``(1) the contribution of that employee to seizures of 
        narcotics and arrests of violators of Federal, State, or local 
        narcotics laws; and
            ``(2) the degree to which that employee cooperated with or 
        contributed to the efforts of other employees, either within 
        the Department or other Federal, State, or local agencies, in 
        counternarcotics enforcement.
    ``(b) Definitions.--For purposes of this section--
            ``(1) the term `National Drug Control Program Agency' 
        means--
                    ``(A) a National Drug Control Program Agency, as 
                defined in section 702(7) of the Office of National 
                Drug Control Policy Reauthorization Act of 1998 (as 
                last in effect); and
                    ``(B) any subdivision of the Department that has a 
                significant counternarcotics responsibility, as 
                determined by--
                            ``(i) the counternarcotics officer, 
                        appointed under section 878; or
                            ``(ii) if applicable, the counternarcotics 
                        officer's successor in function (as determined 
                        by the Secretary); and
            ``(2) the term `performance appraisal system' means a 
        system under which periodic appraisals of job performance of 
        employees are made, whether under chapter 43 of title 5, United 
        States Code, or otherwise.''.
    (b) Clerical Amendment.--The table of contents for the Homeland 
Security Act of 2002 is amended by inserting after the item relating to 
section 842 the following:

``Sec. 843. Use of counternarcotics enforcement activities in certain 
                            employee performance appraisals.''.

SEC. 5027. SENSE OF THE HOUSE OF REPRESENTATIVES ON ADDRESSING HOMELAND 
              SECURITY FOR THE AMERICAN PEOPLE.

    (a) Findings.--The House of Representatives finds that--
            (1) the House of Representatives created a Select Committee 
        on Homeland Security at the start of the 108th Congress to 
        provide for vigorous congressional oversight for the 
        implementation and operation of the Department of Homeland 
        Security;
            (2) the House of Representatives also charged the Select 
        Committee on Homeland Security, including its Subcommittee on 
        Rules, with undertaking a thorough and complete study of the 
        operation and implementation of the rules of the House, 
        including the rule governing committee jurisdiction, with 
        respect to the issue of homeland security and to make their 
        recommendations to the Committee on Rules;
            (3) on February 11, 2003, the Committee on Appropriations 
        of the House of Representatives created a new Subcommittee on 
        Homeland Security with jurisdiction over the Transportation 
        Security Administration, the Coast Guard, and other entities 
        within the Department of Homeland Security to help address the 
        integration of the Department of Homeland Security's 22 legacy 
        agencies; and
            (4) during the 108th Congress, the House of Representatives 
        has taken several steps to help ensure its continuity in the 
        event of a terrorist attack, including--
                    (A) adopting H.R. 2844, the Continuity of 
                Representation Act, a bill to require States to hold 
                expedited special elections to fill vacancies in the 
                House of Representatives not later than 45 days after 
                the vacancy is announced by the Speaker in 
                extraordinary circumstances;
                    (B) granting authority for joint-leadership recalls 
                from a period of adjournment to an alternate place;
                    (C) allowing for anticipatory consent with the 
                Senate to assemble in an alternate place;
                    (D) establishing the requirement that the Speaker 
                submit to the Clerk a list of Members in the order in 
                which each shall act as Speaker pro tempore in the case 
                of a vacancy in the Office of Speaker (including 
                physical inability of the Speaker to discharge his 
                duties) until the election of a Speaker or a Speaker 
                pro tempore, exercising such authorities of the Speaker 
                as may be necessary and appropriate to that end;
                    (E) granting authority for the Speaker to declare 
                an emergency recess of the House subject to the call of 
                the Chair when notified of an imminent threat to the 
                safety of the House;
                    (F) granting authority for the Speaker, during any 
                recess or adjournment of not more than three days, in 
                consultation with the Minority Leader, to postpone the 
                time for reconvening or to reconvene before the time 
                previously appointed solely to declare the House in 
                recess, in each case within the constitutional three-
                day limit;
                    (G) establishing the authority for the Speaker to 
                convene the House in an alternate place within the seat 
                of Government; and
                    (H) codifying the long-standing practice that the 
                death, resignation, expulsion, disqualification, or 
                removal of a Member results in an adjustment of the 
                quorum of the House, which the Speaker shall announce 
                to the House and which shall not be subject to appeal.
    (b) Sense of the House.--It is the sense of the House of 
Representatives that the Committee on Rules should act upon the 
recommendations provided by the Select Committee on Homeland Security, 
and other committees of existing jurisdiction, regarding the 
jurisdiction over proposed legislation, messages, petitions, memorials 
and other matters relating to homeland security prior to or at the 
start of the 109th Congress.

            Subtitle D--Improvements to Information Security

SEC. 5031. AMENDMENTS TO CLINGER-COHEN PROVISIONS TO ENHANCE AGENCY 
              PLANNING FOR INFORMATION SECURITY NEEDS.

    Chapter 113 of title 40, United States Code, is amended--
            (1) in section 11302(b), by inserting ``security,'' after 
        ``use,'';
            (2) in section 11302(c), by inserting ``, including 
        information security risks,'' after ``risks'' both places it 
        appears;
            (3) in section 11312(b)(1), by striking ``information 
        technology investments'' and inserting ``investments in 
        information technology (including information security 
        needs)''; and
            (4) in section 11315(b)(2), by inserting ``, secure,'' 
        after ``sound''.

             Subtitle E--Personnel Management Improvements

                 CHAPTER 1--APPOINTMENTS PROCESS REFORM

SEC. 5041. APPOINTMENTS TO NATIONAL SECURITY POSITIONS.

    (a) Definition of National Security Position.--For purposes of this 
section, the term ``national security position'' shall include--
            (1) those positions that involve activities of the United 
        States Government that are concerned with the protection of the 
        Nation from foreign aggression, terrorism, or espionage, 
        including development of defense plans or policies, 
        intelligence or counterintelligence activities, and related 
        activities concerned with the preservation of military strength 
        of the United States and protection of the homeland; and
            (2) positions that require regular use of, or access to, 
        classified information.
    (b) Publication in the Federal Register.--Not later than 60 days 
after the effective date of this section, the Director of the Office of 
Personnel Management shall publish in the Federal Register a list of 
offices that constitute national security positions under section (a) 
for which Senate confirmation is required by law, and the Director 
shall revise such list from time to time as appropriate.
    (c) Presidential Appointments.--(1) With respect to appointment of 
individuals to offices identified under section (b) and listed in 
sections 5315 or 5316 of title 5, United States Code, which shall arise 
after the publication of the list required by section (b), and 
notwithstanding any other provision of law, the advice and consent of 
the Senate shall not be required, but rather such appointment shall be 
made by the President alone.
    (2) With respect to appointment of individuals to offices 
identified under section (b) and listed in sections 5313 or 5314 of 
title 5, United States Code, which shall arise after the publication of 
the list required by section (b), and notwithstanding any other 
provision of law, the advice and consent of the Senate shall be 
required, except that if 30 legislative days shall have expired from 
the date on which a nomination is submitted to the Senate without a 
confirmation vote occurring in the Senate, such appointment shall be 
made by the President alone.
    (3) For the purposes of this subsection, the term ``legislative 
day'' means a day on which the Senate is in session.

SEC. 5042. PRESIDENTIAL INAUGURAL TRANSITIONS.

    Subsections (a) and (b) of section 3349a of title 5, United States 
Code, are amended to read as follows:
    ``(a) As used in this section--
            ``(1) the term `inauguration day' means the date on which 
        any person swears or affirms the oath of office as President; 
        and
            ``(2) the term `specified national security position' shall 
        mean not more than 20 positions requiring Senate confirmation, 
        not to include more than 3 heads of Executive Departments, 
        which are designated by the President on or after an 
        inauguration day as positions for which the duties involve 
        substantial responsibility for national security.
    ``(b) With respect to any vacancy that exists during the 60-day 
period beginning on an inauguration day, except where the person 
swearing or affirming the oath of office was the President on the date 
preceding the date of swearing or affirming such oath of office, the 
210-day period under section 3346 or 3348 shall be deemed to begin on 
the later of the date occurring--
            ``(1) 90 days after such transitional inauguration day; or
            ``(2) 90 days after the date on which the vacancy occurs.
    ``(c) With respect to any vacancy in any specified national 
security position that exists during the 60-day period beginning on an 
inauguration day, the requirements of subparagraphs (A) and (B) of 
section 3345(a)(3) shall not apply.''.

SEC. 5043. PUBLIC FINANCIAL DISCLOSURE FOR THE INTELLIGENCE COMMUNITY.

    (a) In General.--The Ethics in Government Act of 1978 (5 U.S.C. 
App.) is amended by inserting before title IV the following:

 ``TITLE III--INTELLIGENCE PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS

``SEC. 301. PERSONS REQUIRED TO FILE.

    ``(a) Within 30 days of assuming the position of an officer or 
employee described in subsection (e), an individual shall file a report 
containing the information described in section 302(b) unless the 
individual has left another position described in subsection (e) within 
30 days prior to assuming such new position or has already filed a 
report under this title with respect to nomination for the new position 
or as a candidate for the position.
    ``(b)(1) Within 5 days of the transmittal by the President to the 
Senate of the nomination of an individual to a position in the 
executive branch, appointment to which requires the advice and consent 
of the Senate, such individual shall file a report containing the 
information described in section 302(b). Such individual shall, not 
later than the date of the first hearing to consider the nomination of 
such individual, make current the report filed pursuant to this 
paragraph by filing the information required by section 302(a)(1)(A) 
with respect to income and honoraria received as of the date which 
occurs 5 days before the date of such hearing. Nothing in this Act 
shall prevent any congressional committee from requesting, as a 
condition of confirmation, any additional financial information from 
any Presidential nominee whose nomination has been referred to that 
committee.
    ``(2) An individual whom the President or the President-elect has 
publicly announced he intends to nominate to a position may file the 
report required by paragraph (1) at any time after that public 
announcement, but not later than is required under the first sentence 
of such paragraph.
    ``(c) Any individual who is an officer or employee described in 
subsection (e) during any calendar year and performs the duties of his 
position or office for a period in excess of 60 days in that calendar 
year shall file on or before May 15 of the succeeding year a report 
containing the information described in section 302(a).
    ``(d) Any individual who occupies a position described in 
subsection (e) shall, on or before the 30th day after termination of 
employment in such position, file a report containing the information 
described in section 302(a) covering the preceding calendar year if the 
report required by subsection (c) has not been filed and covering the 
portion of the calendar year in which such termination occurs up to the 
date the individual left such office or position, unless such 
individual has accepted employment in or takes the oath of office for 
another position described in subsection (e) or section 101(f).
    ``(e) The officers and employees referred to in subsections (a), 
(c), and (d) are those employed in or under--
            ``(1) the Office of the National Intelligence Director; or
            ``(2) an element of the intelligence community, as defined 
        in section 3(4) of the National Security Act of 1947 (50 U.S.C. 
        401a(4)).
    ``(f)(1) Reasonable extensions of time for filing any report may be 
granted under procedures prescribed by the Office of Government Ethics, 
but the total of such extensions shall not exceed 90 days.
    ``(2)(A) In the case of an individual who is serving in the Armed 
Forces, or serving in support of the Armed Forces, in an area while 
that area is designated by the President by Executive order as a combat 
zone for purposes of section 112 of the Internal Revenue Code of 1986, 
the date for the filing of any report shall be extended so that the 
date is 180 days after the later of--
            ``(i) the last day of the individual's service in such area 
        during such designated period; or
            ``(ii) the last day of the individual's hospitalization as 
        a result of injury received or disease contracted while serving 
        in such area.
    ``(B) The Office of Government Ethics, in consultation with the 
Secretary of Defense, may prescribe procedures under this paragraph.
    ``(g) The Director of the Office of Government Ethics may grant a 
publicly available request for a waiver of any reporting requirement 
under this title with respect to an individual if the Director 
determines that--
            ``(1) such individual is not a full-time employee of the 
        Government;
            ``(2) such individual is able to provide special services 
        needed by the Government;
            ``(3) it is unlikely that such individual's outside 
        employment or financial interests will create a conflict of 
        interest; and
            ``(4) public financial disclosure by such individual is not 
        necessary in the circumstances.
    ``(h)(1) The Director of the Office of Government Ethics may 
establish procedures under which an incoming individual can take 
actions to avoid conflicts of interest while in office if the 
individual has holdings or other financial interests that raise 
conflict concerns.
    ``(2) The actions referenced in paragraph (1) may include, but are 
not limited to, signed agreements with the individual's employing 
agency, the establishment of blind trusts, or requirements for 
divesting interests or holdings while in office.

``SEC. 302. CONTENTS OF REPORTS.

    ``(a) Each report filed pursuant to section 301 (c) and (d) shall 
include a full and complete statement with respect to the following:
            ``(1)(A) The source, description, and category of value of 
        income (other than income referred to in subparagraph (B)) from 
        any source (other than from current employment by the United 
        States Government), received during the preceding calendar 
        year, aggregating more than $500 in value, except that 
        honoraria received during Government service by an officer or 
        employee shall include, in addition to the source, the exact 
        amount and the date it was received.
            ``(B) The source and description of investment income which 
        may include but is not limited to dividends, rents, interest, 
        and capital gains, received during the preceding calendar year 
        which exceeds $500 in amount or value.
            ``(C) The categories for reporting the amount for income 
        covered in subparagraphs (A) and (B) are--
                    ``(i) greater than $500 but not more than $20,000;
                    ``(ii) greater than $20,000 but not more than 
                $100,000;
                    ``(iii) greater than $100,000 but not more than 
                $1,000,000;
                    ``(iv) greater than $1,000,000 but not more than 
                $2,500,000; and
                    ``(v) greater than $2,500,000.
            ``(2)(A) The identity of the source, a brief description, 
        and the value of all gifts aggregating more than the minimal 
        value as established by section 7342(a)(5) of title 5, United 
        States Code, or $250, whichever is greater, received from any 
        source other than a relative of the reporting individual during 
        the preceding calendar year, except that any food, lodging, or 
        entertainment received as personal hospitality of an individual 
        need not be reported, and any gift with a fair market value of 
        $100 or less, as adjusted at the same time and by the same 
        percentage as the minimal value is adjusted, need not be 
        aggregated for purposes of this subparagraph.
            ``(B) The identity of the source and a brief description 
        (including dates of travel and nature of expenses provided) of 
        reimbursements received from any source aggregating more than 
        the minimal value as established by section 7342(a)(5) of title 
        5, United States Code, or $250, whichever is greater and 
        received during the preceding calendar year.
            ``(3) The identity and category of value of any interest in 
        property held during the preceding calendar year in a trade or 
        business, or for investment or the production of income, which 
        has a fair market value which exceeds $5,000 as of the close of 
        the preceding calendar year, excluding any personal liability 
        owed to the reporting individual by a spouse, or by a parent, 
        brother, sister, or child of the reporting individual or of the 
        reporting individual's spouse, or any deposit accounts 
        aggregating $100,000 or less in a financial institution, or any 
        Federal Government securities aggregating $100,000 or less.
            ``(4) The identity and category of value of the total 
        liabilities owed to any creditor other than a spouse, or a 
        parent, brother, sister, or child of the reporting individual 
        or of the reporting individual's spouse which exceed $20,000 at 
        any time during the preceding calendar year, excluding--
                    ``(A) any mortgage secured by real property which 
                is a personal residence of the reporting individual or 
                his spouse; and
                    ``(B) any loan secured by a personal motor vehicle, 
                household furniture, or appliances, which loan does not 
                exceed the purchase price of the item which secures it.
        With respect to revolving charge accounts, only those with an 
        outstanding liability which exceeds $20,000 as of the close of 
        the preceding calendar year need be reported under this 
        paragraph. Notwithstanding the preceding sentence, individuals 
        required to file pursuant to section 301(b) shall also report 
        the aggregate sum of the outstanding balances of all revolving 
        charge accounts as of any date that is within 30 days of the 
        date of filing if the aggregate sum of those balances exceeds 
        $20,000.
            ``(5) Except as provided in this paragraph, a brief 
        description of any real property, other than property used 
        solely as a personal residence of the reporting individual or 
        his spouse, or stocks, bonds, commodities futures, and other 
        forms of securities, if--
                    ``(A) purchased, sold, or exchanged during the 
                preceding calendar year;
                    ``(B) the value of the transaction exceeded $5,000; 
                and
                    ``(C) the property or security is not already 
                required to be reported as a source of income pursuant 
                to paragraph (1)(B) or as an asset pursuant to 
                paragraph (3).
            ``(6)(A) The identity of all positions held on or before 
        the date of filing during the current calendar year (and, for 
        the first report filed by an individual, during the 1-year 
        period preceding such calendar year) as an officer, director, 
        trustee, partner, proprietor, representative, employee, or 
        consultant of any corporation, company, firm, partnership, or 
        other business enterprise, any nonprofit organization, any 
        labor organization, or any educational or other institution 
        other than the United States Government. This subparagraph 
        shall not require the reporting of positions held in any 
        religious, social, fraternal, or political entity and positions 
        solely of an honorary nature.
            ``(B) If any person, other than a person reported as a 
        source of income under paragraph (1)(A) or the United States 
        Government, paid a nonelected reporting individual compensation 
        in excess of $25,000 in the calendar year in which, or the 
        calendar year prior to the calendar year in which, the 
        individual files his first report under this title, the 
        individual shall include in the report--
                    ``(i) the identity of each source of such 
                compensation; and
                    ``(ii) a brief description of the nature of the 
                duties performed or services rendered by the reporting 
                individual for each such source.
        The preceding sentence shall not require any individual to 
        include in such report any information which is considered 
        confidential as a result of a privileged relationship, 
        established by law, between such individual and any person or 
        any information which the person for whom the services are 
        provided has a reasonable expectation of privacy, nor shall it 
        require an individual to report any information with respect to 
        any person for whom services were provided by any firm or 
        association of which such individual was a member, partner, or 
        employee unless such individual was directly involved in the 
        provision of such services.
            ``(7) A description of parties to and terms of any 
        agreement or arrangement with respect to (A) future employment; 
        (B) a leave of absence during the period of the reporting 
        individual's Government service; (C) continuation of payments 
        by a former employer other than the United States Government; 
        and (D) continuing participation in an employee welfare or 
        benefit plan maintained by a former employer. The description 
        of any formal agreement for future employment shall include the 
        date on which that agreement was entered into.
            ``(8) The category of the total cash value of any interest 
        of the reporting individual in a qualified blind trust.
    ``(b)(1) Each report filed pursuant to subsections (a) and (b) of 
section 301 shall include a full and complete statement with respect to 
the information required by--
            ``(A) paragraphs (1) and (6) of subsection (a) for the year 
        of filing and the preceding calendar year,
            ``(B) paragraphs (3) and (4) of subsection (a) as of the 
        date specified in the report but which is less than 31 days 
        before the filing date, and
            ``(C) paragraph (7) of subsection (a) as of the filing date 
        but for periods described in such paragraph.
    ``(2)(A) In lieu of filling out 1 or more schedules of a financial 
disclosure form, an individual may supply the required information in 
an alternative format, pursuant to either rules adopted by the Office 
of Government Ethics or pursuant to a specific written determination by 
the Director of the Office of Government Ethics for a reporting 
individual.
    ``(B) In lieu of indicating the category of amount or value of any 
item contained in any report filed under this title, a reporting 
individual may indicate the exact dollar amount of such item.
    ``(c)(1) In the case of any individual referred to in section 
301(c), the Office of Government Ethics may by regulation require a 
reporting period to include any period in which the individual served 
as an officer or employee described in section 301(e) and the period 
would not otherwise be covered by any public report filed pursuant to 
this title.
    ``(2) In the case of any individual referred to in section 301(d), 
any reference to the preceding calendar year shall be considered also 
to include that part of the calendar year of filing up to the date of 
the termination of employment.
    ``(d)(1) The categories for reporting the amount or value of the 
items covered in subsection (a)(3) are--
            ``(A) greater than $5,000 but not more than $15,000;
            ``(B) greater than $15,000 but not more than $100,000;
            ``(C) greater than $100,000 but not more than $1,000,000;
            ``(D) greater than $1,000,000 but not more than $2,500,000; 
        and
            ``(E) greater than $2,500,000.
    ``(2) For the purposes of subsection (a)(3) if the current value of 
an interest in real property (or an interest in a real estate 
partnership) is not ascertainable without an appraisal, an individual 
may list (A) the date of purchase and the purchase price of the 
interest in the real property, or (B) the assessed value of the real 
property for tax purposes, adjusted to reflect the market value of the 
property used for the assessment if the assessed value is computed at 
less than 100 percent of such market value, but such individual shall 
include in his report a full and complete description of the method 
used to determine such assessed value, instead of specifying a category 
of value pursuant to paragraph (1). If the current value of any other 
item required to be reported under subsection (a)(3) is not 
ascertainable without an appraisal, such individual may list the book 
value of a corporation whose stock is not publicly traded, the net 
worth of a business partnership, the equity value of an individually 
owned business, or with respect to other holdings, any recognized 
indication of value, but such individual shall include in his report a 
full and complete description of the method used in determining such 
value. In lieu of any value referred to in the preceding sentence, an 
individual may list the assessed value of the item for tax purposes, 
adjusted to reflect the market value of the item used for the 
assessment if the assessed value is computed at less than 100 percent 
of such market value, but a full and complete description of the method 
used in determining such assessed value shall be included in the 
report.
    ``(3) The categories for reporting the amount or value of the items 
covered in paragraphs (4) and (8) of subsection (a) are--
            ``(A) greater than $20,000 but not more than $100,000;
            ``(B) greater than $100,000 but not more than $500,000;
            ``(C) greater than $500,000 but not more than $1,000,000; 
        and
            ``(D) greater than $1,000,000.
    ``(e)(1) Except as provided in subparagraph (F), each report 
required by section 301 shall also contain information listed in 
paragraphs (1) through (5) of subsection (a) respecting the spouse or 
dependent child of the reporting individual as follows:
            ``(A) The sources of earned income earned by a spouse 
        including honoraria which exceed $500 except that, with respect 
        to earned income if the spouse is self-employed in business or 
        a profession, only the nature of such business or profession 
        need be reported.
            ``(B) All information required to be reported in subsection 
        (a)(1)(B) with respect to investment income derived by a spouse 
        or dependent child.
            ``(C) In the case of any gifts received by a spouse or 
        dependent child which are not received totally independent of 
        the relationship of the spouse or dependent child to the 
        reporting individual, the identity of the source and a brief 
        description of gifts of transportation, lodging, food, or 
        entertainment and a brief description and the value of other 
        gifts.
            ``(D) In the case of any reimbursements received by a 
        spouse or dependent child which are not received totally 
        independent of the relationship of the spouse or dependent 
        child to the reporting individual, the identity of the source 
        and a brief description of each such reimbursement.
            ``(E) In the case of items described in paragraphs (3) 
        through (5) of subsection (a), all information required to be 
        reported under these paragraphs other than items which the 
        reporting individual certifies (i) represent the spouse's or 
        dependent child's sole financial interest or responsibility and 
        which the reporting individual has no knowledge of, (ii) are 
        not in any way, past or present, derived from the income, 
        assets, or activities of the reporting individual, and (iii) 
        that he neither derives, nor expects to derive, any financial 
        or economic benefit.
            ``(F) Reports required by subsections (a), (b), and (c) of 
        section 301 shall, with respect to the spouse and dependent 
        child of the reporting individual, only contain information 
        listed in paragraphs (1), (3), and (4) of subsection (a).
    ``(2) No report shall be required with respect to a spouse living 
separate and apart from the reporting individual with the intention of 
terminating the marriage or providing for permanent separation, or with 
respect to any income or obligations of an individual arising from the 
dissolution of his marriage or the permanent separation from his 
spouse.
    ``(f)(1) Except as provided in paragraph (2), each reporting 
individual shall report the information required to be reported 
pursuant to subsections (a), (b), and (c) with respect to the holdings 
of and the income from a trust or other financial arrangement from 
which income is received by, or with respect to which a beneficial 
interest in principal or income is held by, such individual, his 
spouse, or any dependent child.
    ``(2) A reporting individual need not report the holdings of or the 
source of income from any of the holdings of--
            ``(A) any qualified blind trust (as defined in paragraph 
        (3));
            ``(B) a trust--
                    ``(i) which was not created directly by such 
                individual, his spouse, or any dependent child, and
                    ``(ii) the holdings or sources of income of which 
                such individual, his spouse, and any dependent child 
                have no knowledge; or
            ``(C) an entity described under the provisions of paragraph 
        (8), but such individual shall report the category of the 
        amount of income received by him, his spouse, or any dependent 
        child from the entity under subsection (a)(1)(B).
    ``(3) For purposes of this subsection, the term `qualified blind 
trust' includes any trust in which a reporting individual, his spouse, 
or any minor or dependent child has a beneficial interest in the 
principal or income, and which meets the following requirements:
            ``(A)(i) The trustee of the trust and any other entity 
        designated in the trust instrument to perform fiduciary duties 
        is a financial institution, an attorney, a certified public 
        accountant, a broker, or an investment advisor who--
                    ``(I) is independent of and not associated with any 
                interested party so that the trustee or other person 
                cannot be controlled or influenced in the 
                administration of the trust by any interested party;
                    ``(II) is not and has not been an employee of or 
                affiliated with any interested party and is not a 
                partner of, or involved in any joint venture or other 
                investment with, any interested party; and
                    ``(III) is not a relative of any interested party.
            ``(ii) Any officer or employee of a trustee or other entity 
        who is involved in the management or control of the trust--
                    ``(I) is independent of and not associated with any 
                interested party so that such officer or employee 
                cannot be controlled or influenced in the 
                administration of the trust by any interested party;
                    ``(II) is not a partner of, or involved in any 
                joint venture or other investment with, any interested 
                party; and
                    ``(III) is not a relative of any interested party.
            ``(B) Any asset transferred to the trust by an interested 
        party is free of any restriction with respect to its transfer 
        or sale unless such restriction is expressly approved by the 
        Office of Government Ethics.
            ``(C) The trust instrument which establishes the trust 
        provides that--
                    ``(i) except to the extent provided in subparagraph 
                (B), the trustee in the exercise of his authority and 
                discretion to manage and control the assets of the 
                trust shall not consult or notify any interested party;
                    ``(ii) the trust shall not contain any asset the 
                holding of which by an interested party is prohibited 
                by any law or regulation;
                    ``(iii) the trustee shall promptly notify the 
                reporting individual and the Office of Government 
                Ethics when the holdings of any particular asset 
                transferred to the trust by any interested party are 
                disposed of or when the value of such holding is less 
                than $1,000;
                    ``(iv) the trust tax return shall be prepared by 
                the trustee or his designee, and such return and any 
                information relating thereto (other than the trust 
                income summarized in appropriate categories necessary 
                to complete an interested party's tax return), shall 
                not be disclosed to any interested party;
                    ``(v) an interested party shall not receive any 
                report on the holdings and sources of income of the 
                trust, except a report at the end of each calendar 
                quarter with respect to the total cash value of the 
                interest of the interested party in the trust or the 
                net income or loss of the trust or any reports 
                necessary to enable the interested party to complete an 
                individual tax return required by law or to provide the 
                information required by subsection (a)(1) of this 
                section, but such report shall not identify any asset 
                or holding;
                    ``(vi) except for communications which solely 
                consist of requests for distributions of cash or other 
                unspecified assets of the trust, there shall be no 
                direct or indirect communication between the trustee 
                and an interested party with respect to the trust 
                unless such communication is in writing and unless it 
                relates only (I) to the general financial interest and 
                needs of the interested party (including, but not 
                limited to, an interest in maximizing income or long-
                term capital gain), (II) to the notification of the 
                trustee of a law or regulation subsequently applicable 
                to the reporting individual which prohibits the 
                interested party from holding an asset, which 
                notification directs that the asset not be held by the 
                trust, or (III) to directions to the trustee to sell 
                all of an asset initially placed in the trust by an 
                interested party which in the determination of the 
                reporting individual creates a conflict of interest or 
                the appearance thereof due to the subsequent assumption 
                of duties by the reporting individual (but nothing 
                herein shall require any such direction); and
                    ``(vii) the interested parties shall make no effort 
                to obtain information with respect to the holdings of 
                the trust, including obtaining a copy of any trust tax 
                return filed or any information relating thereto except 
                as otherwise provided in this subsection.
            ``(D) The proposed trust instrument and the proposed 
        trustee is approved by the Office of Government Ethics.
            ``(E) For purposes of this subsection, `interested party' 
        means a reporting individual, his spouse, and any minor or 
        dependent child; `broker' has the meaning set forth in section 
        3(a)(4) of the Securities and Exchange Act of 1934 (15 U.S.C. 
        78c(a)(4)); and `investment adviser' includes any investment 
        adviser who, as determined under regulations prescribed by the 
        supervising ethics office, is generally involved in his role as 
        such an adviser in the management or control of trusts.
    ``(4)(A) An asset placed in a trust by an interested party shall be 
considered a financial interest of the reporting individual, for the 
purposes of any applicable conflict of interest statutes, regulations, 
or rules of the Federal Government (including section 208 of title 18, 
United States Code), until such time as the reporting individual is 
notified by the trustee that such asset has been disposed of, or has a 
value of less than $1,000.
    ``(B)(i) The provisions of subparagraph (A) shall not apply with 
respect to a trust created for the benefit of a reporting individual, 
or the spouse, dependent child, or minor child of such a person, if the 
Office of Government Ethics finds that--
            ``(I) the assets placed in the trust consist of a well-
        diversified portfolio of readily marketable securities;
            ``(II) none of the assets consist of securities of entities 
        having substantial activities in the area of the reporting 
        individual's primary area of responsibility;
            ``(III) the trust instrument prohibits the trustee, 
        notwithstanding the provisions of paragraph (3)(C) (iii) and 
        (iv), from making public or informing any interested party of 
        the sale of any securities;
            ``(IV) the trustee is given power of attorney, 
        notwithstanding the provisions of paragraph (3)(C)(v), to 
        prepare on behalf of any interested party the personal income 
        tax returns and similar returns which may contain information 
        relating to the trust; and
            ``(V) except as otherwise provided in this paragraph, the 
        trust instrument provides (or in the case of a trust which by 
        its terms does not permit amendment, the trustee, the reporting 
        individual, and any other interested party agree in writing) 
        that the trust shall be administered in accordance with the 
        requirements of this subsection and the trustee of such trust 
        meets the requirements of paragraph (3)(A).
    ``(ii) In any instance covered by subparagraph (B) in which the 
reporting individual is an individual whose nomination is being 
considered by a congressional committee, the reporting individual shall 
inform the congressional committee considering his nomination before or 
during the period of such individual's confirmation hearing of his 
intention to comply with this paragraph.
    ``(5)(A) The reporting individual shall, within 30 days after a 
qualified blind trust is approved by the Office of Government Ethics, 
file with such office a copy of--
            ``(i) the executed trust instrument of such trust (other 
        than those provisions which relate to the testamentary 
        disposition of the trust assets), and
            ``(ii) a list of the assets which were transferred to such 
        trust, including the category of value of each asset as 
        determined under subsection (d).
This subparagraph shall not apply with respect to a trust meeting the 
requirements for being considered a qualified blind trust under 
paragraph (7).
    ``(B) The reporting individual shall, within 30 days of 
transferring an asset (other than cash) to a previously established 
qualified blind trust, notify the Office of Government Ethics of the 
identity of each such asset and the category of value of each asset as 
determined under subsection (d) of this section.
    ``(C) Within 30 days of the dissolution of a qualified blind trust, 
a reporting individual shall notify the Office of Government Ethics of 
such dissolution.
    ``(D) Documents filed under subparagraphs (A), (B), and (C) and the 
lists provided by the trustee of assets placed in the trust by an 
interested party which have been sold shall be made available to the 
public in the same manner as a report is made available under section 
305 and the provisions of that section shall apply with respect to such 
documents and lists.
    ``(E) A copy of each written communication with respect to the 
trust under paragraph (3)(C)(vi) shall be filed by the person 
initiating the communication with the Office of Government Ethics 
within 5 days of the date of the communication.
    ``(6)(A) A trustee of a qualified blind trust shall not knowingly 
and willfully, or negligently, (i) disclose any information to an 
interested party with respect to such trust that may not be disclosed 
under paragraph (3); (ii) acquire any holding the ownership of which is 
prohibited by the trust instrument; (iii) solicit advice from any 
interested party with respect to such trust, which solicitation is 
prohibited by paragraph (3) or the trust agreement; or (iv) fail to 
file any document required by this subsection.
    ``(B) A reporting individual shall not knowingly and willfully, or 
negligently, (i) solicit or receive any information with respect to a 
qualified blind trust of which he is an interested party that may not 
be disclosed under paragraph (3)(C) or (ii) fail to file any document 
required by this subsection.
    ``(C)(i) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully violates the provisions of subparagraph (A) or 
(B). The court in which such action is brought may assess against such 
individual a civil penalty in any amount not to exceed $10,000.
    ``(ii) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
negligently violates the provisions of subparagraph (A) or (B). The 
court in which such action is brought may assess against such 
individual a civil penalty in any amount not to exceed $5,000.
    ``(7) Any trust may be considered to be a qualified blind trust 
if--
            ``(A) the trust instrument is amended to comply with the 
        requirements of paragraph (3) or, in the case of a trust 
        instrument which does not by its terms permit amendment, the 
        trustee, the reporting individual, and any other interested 
        party agree in writing that the trust shall be administered in 
        accordance with the requirements of this subsection and the 
        trustee of such trust meets the requirements of paragraph 
        (3)(A); except that in the case of any interested party who is 
        a dependent child, a parent or guardian of such child may 
        execute the agreement referred to in this subparagraph;
            ``(B) a copy of the trust instrument (except testamentary 
        provisions) and a copy of the agreement referred to in 
        subparagraph (A), and a list of the assets held by the trust at 
        the time of approval by the Office of Government Ethics, 
        including the category of value of each asset as determined 
        under subsection (d), are filed with such office and made 
        available to the public as provided under paragraph (5)(D); and
            ``(C) the Director of the Office of Government Ethics 
        determines that approval of the trust arrangement as a 
        qualified blind trust is in the particular case appropriate to 
        assure compliance with applicable laws and regulations.
    ``(8) A reporting individual shall not be required to report the 
financial interests held by a widely held investment fund (whether such 
fund is a mutual fund, regulated investment company, pension or 
deferred compensation plan, or other investment fund), if--
            ``(A)(i) the fund is publicly traded; or
            ``(ii) the assets of the fund are widely diversified; and
            ``(B) the reporting individual neither exercises control 
        over nor has the ability to exercise control over the financial 
        interests held by the fund.
    ``(9)(A)(i) A reporting individual described in subsection (a) or 
(b) of section 301 shall not be required to report the holdings or 
sources of income of any trust or investment fund where--
            ``(I) reporting would result in the disclosure of assets or 
        sources of income of another person whose interests are not 
        required to be reported by the reporting individual under this 
        title;
            ``(II) the disclosure of such assets and sources of income 
        is prohibited by contract or the assets and sources of income 
        are not otherwise publicly available; and
            ``(III) the reporting individual has executed a written 
        ethics agreement which contains a general description of the 
        trust or investment fund and a commitment to divest the 
        interest in the trust or investment fund not later than 90 days 
        after the date of the agreement.
    ``(ii) An agreement described under clause (i)(III) shall be 
attached to the public financial disclosure which would otherwise 
include a listing of the holdings or sources of income from this trust 
or investment fund.
    ``(B)(i) The provisions of subparagraph (A) shall apply to an 
individual described in subsection (c) or (d) of section 301 if--
            ``(I) the interest in the trust or investment fund is 
        acquired involuntarily during the period to be covered by the 
        report, such as through marriage or inheritance, and
            ``(II) for an individual described in subsection (c), the 
        individual executes a written ethics agreement containing a 
        commitment to divest the interest no later than 90 days after 
        the date on which the report is due.
    ``(ii) An agreement described under clause (i)(II) shall be 
attached to the public financial disclosure which would otherwise 
include a listing of the holdings or sources of income from this trust 
or investment fund.
    ``(iii) Failure to divest within the time specified or after an 
extension granted by the Director of the Office of Government Ethics 
for good cause shown shall result in an immediate requirement to report 
as specified in paragraph (1).
    ``(g) Political campaign funds, including campaign receipts and 
expenditures, need not be included in any report filed pursuant to this 
title.
    ``(h) A report filed pursuant to subsection (a), (c), or (d) of 
section 301 need not contain the information described in subparagraphs 
(A), (B), and (C) of subsection (a)(2) with respect to gifts and 
reimbursements received in a period when the reporting individual was 
not an officer or employee of the Federal Government.
    ``(i) A reporting individual shall not be required under this title 
to report--
            ``(1) financial interests in or income derived from--
                    ``(A) any retirement system under title 5, United 
                States Code (including the Thrift Savings Plan under 
                subchapter III of chapter 84 of such title); or
                    ``(B) any other retirement system maintained by the 
                United States for officers or employees of the United 
                States, including the President, or for members of the 
                uniformed services; or
            ``(2) benefits received under the Social Security Act (42 
        U.S.C. 301 et seq.).
    ``(j)(1) Every month, each designated agency ethics officer shall 
submit to the Office of Government Ethics notification of any waiver of 
criminal conflict of interest laws granted to any individual in the 
preceding month with respect to a filing under this title that is not 
confidential.
    ``(2) Every month, the Office of Government Ethics shall make 
publicly available on the Internet--
            ``(A) all notifications of waivers submitted under 
        paragraph (1) in the preceding month; and
            ``(B) notification of all waivers granted by the Office of 
        Government Ethics in the preceding month.
    ``(k) A full copy of any waiver of criminal conflict of interest 
laws granted shall be included with any filing required under this 
title with respect to the year in which the waiver is granted.
    ``(l) The Office of Government Ethics shall provide upon request 
any waiver on file for which notice has been published.

``SEC. 303. FILING OF REPORTS.

    ``(a) Except as otherwise provided in this section, the reports 
required under this title shall be filed by the reporting individual 
with the designated agency ethics official at the agency by which he is 
employed (or in the case of an individual described in section 301(d), 
was employed) or in which he will serve. The date any report is 
received (and the date of receipt of any supplemental report) shall be 
noted on such report by such official.
    ``(b) Reports required to be filed under this title by the Director 
of the Office of Government Ethics shall be filed in the Office of 
Government Ethics and, immediately after being filed, shall be made 
available to the public in accordance with this title.
    ``(c) Reports required of members of the uniformed services shall 
be filed with the Secretary concerned.
    ``(d) The Office of Government Ethics shall develop and make 
available forms for reporting the information required by this title.

``SEC. 304. FAILURE TO FILE OR FILING FALSE REPORTS.

    ``(a) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully falsifies or who knowingly and willfully fails 
to file or report any information that such individual is required to 
report pursuant to section 302. The court in which such action is 
brought may assess against such individual a civil penalty in any 
amount, not to exceed $10,000.
    ``(b) The head of each agency, each Secretary concerned, or the 
Director of the Office of Government Ethics, as the case may be, shall 
refer to the Attorney General the name of any individual which such 
official has reasonable cause to believe has willfully failed to file a 
report or has willfully falsified or willfully failed to file 
information required to be reported.
    ``(c) The President, the Vice President, the Secretary concerned, 
or the head of each agency may take any appropriate personnel or other 
action in accordance with applicable law or regulation against any 
individual failing to file a report or falsifying or failing to report 
information required to be reported.
    ``(d)(1) Any individual who files a report required to be filed 
under this title more than 30 days after the later of--
            ``(A) the date such report is required to be filed pursuant 
        to the provisions of this title and the rules and regulations 
        promulgated thereunder; or
            ``(B) if a filing extension is granted to such individual 
        under section 301(g), the last day of the filing extension 
        period, shall, at the direction of and pursuant to regulations 
        issued by the Office of Government Ethics, pay a filing fee of 
        $500. All such fees shall be deposited in the miscellaneous 
        receipts of the Treasury. The authority under this paragraph to 
        direct the payment of a filing fee may be delegated by the 
        Office of Government Ethics to other agencies in the executive 
        branch.
    ``(2) The Office of Government Ethics may waive the filing fee 
under this subsection for good cause shown.

``SEC. 305. CUSTODY OF AND PUBLIC ACCESS TO REPORTS.

    ``Any report filed with or transmitted to an agency or the Office 
of Government Ethics pursuant to this title shall be retained by such 
agency or Office, as the case may be, for a period of 6 years after 
receipt of the report. After such 6-year period the report shall be 
destroyed unless needed in an ongoing investigation, except that in the 
case of an individual who filed the report pursuant to section 301(b) 
and was not subsequently confirmed by the Senate, such reports shall be 
destroyed 1 year after the individual is no longer under consideration 
by the Senate, unless needed in an ongoing investigation.

``SEC. 306. REVIEW OF REPORTS.

    ``(a) Each designated agency ethics official or Secretary concerned 
shall make provisions to ensure that each report filed with him under 
this title is reviewed within 60 days after the date of such filing, 
except that the Director of the Office of Government Ethics shall 
review only those reports required to be transmitted to him under this 
title within 60 days after the date of transmittal.
    ``(b)(1) If after reviewing any report under subsection (a), the 
Director of the Office of Government Ethics, the Secretary concerned, 
or the designated agency ethics official, as the case may be, is of the 
opinion that on the basis of information contained in such report the 
individual submitting such report is in compliance with applicable laws 
and regulations, he shall state such opinion on the report, and shall 
sign such report.
    ``(2) If the Director of the Office of Government Ethics, the 
Secretary concerned, or the designated agency ethics official after 
reviewing any report under subsection (a)--
            ``(A) believes additional information is required to be 
        submitted to complete the form or to perform a conflict of 
        interest analysis, he shall notify the individual submitting 
        such report what additional information is required and the 
        time by which it must be submitted, or
            ``(B) is of the opinion, on the basis of information 
        submitted, that the individual is not in compliance with 
        applicable laws and regulations, he shall notify the 
        individual, afford a reasonable opportunity for a written or 
        oral response, and after consideration of such response, reach 
        an opinion as to whether or not, on the basis of information 
        submitted, the individual is in compliance with such laws and 
        regulations.
    ``(3) If the Director of the Office of Government Ethics, the 
Secretary concerned, or the designated agency ethics official reaches 
an opinion under paragraph (2)(B) that an individual is not in 
compliance with applicable laws and regulations, the official shall 
notify the individual of that opinion and, after an opportunity for 
personal consultation (if practicable), determine and notify the 
individual of which steps, if any, would in the opinion of such 
official be appropriate for assuring compliance with such laws and 
regulations and the date by which such steps should be taken. Such 
steps may include, as appropriate--
            ``(A) divestiture,
            ``(B) restitution,
            ``(C) the establishment of a blind trust,
            ``(D) request for an exemption under section 208(b) of 
        title 18, United States Code, or
            ``(E) voluntary request for transfer, reassignment, 
        limitation of duties, or resignation.
The use of any such steps shall be in accordance with such rules or 
regulations as the Office of Government Ethics may prescribe.
    ``(4) If steps for assuring compliance with applicable laws and 
regulations are not taken by the date set under paragraph (3) by a 
member of the Foreign Service or the uniformed services, the Secretary 
concerned shall take appropriate action.
    ``(5) If steps for assuring compliance with applicable laws and 
regulations are not taken by the date set under paragraph (3) by any 
other officer or employee, the matter shall be referred to the head of 
the appropriate agency for appropriate action.
    ``(6) The Office of Government Ethics may render advisory opinions 
interpreting this title. Notwithstanding any other provision of law, 
the individual to whom a public advisory opinion is rendered in 
accordance with this paragraph, and any other individual covered by 
this title who is involved in a fact situation which is 
indistinguishable in all material aspects, and who acts in good faith 
in accordance with the provisions and findings of such advisory opinion 
shall not, as a result of such act, be subject to any penalty or 
sanction provided by this title.

``SEC. 307. CONFIDENTIAL REPORTS AND OTHER ADDITIONAL REQUIREMENTS.

    ``(a)(1) The Office of Government Ethics may require officers and 
employees of the executive branch (including special Government 
employees as defined in section 202 of title 18, United States Code) to 
file confidential financial disclosure reports, in such form as it may 
prescribe. The information required to be reported under this 
subsection by the officers and employees of any department or agency 
listed in section 301(e) shall be set forth in rules or regulations 
prescribed by the Office of Government Ethics, and may be less 
extensive than otherwise required by this title, or more extensive when 
determined by the Office of Government Ethics to be necessary and 
appropriate in light of sections 202 through 209 of title 18, United 
States Code, regulations promulgated thereunder, or the authorized 
activities of such officers or employees. Any individual required to 
file a report pursuant to section 301 shall not be required to file a 
confidential report pursuant to this subsection, except with respect to 
information which is more extensive than information otherwise required 
by this title. Section 305 shall not apply with respect to any such 
report.
    ``(2) Any information required to be provided by an individual 
under this subsection shall be confidential and shall not be disclosed 
to the public.
    ``(3) Nothing in this subsection exempts any individual otherwise 
covered by the requirement to file a public financial disclosure report 
under this title from such requirement.
    ``(b) The provisions of this title requiring the reporting of 
information shall supersede any general requirement under any other 
provision of law or regulation with respect to the reporting of 
information required for purposes of preventing conflicts of interest 
or apparent conflicts of interest. Such provisions of this title shall 
not supersede the requirements of section 7342 of title 5, United 
States Code.
    ``(c) Nothing in this Act requiring reporting of information shall 
be deemed to authorize the receipt of income, gifts, or reimbursements; 
the holding of assets, liabilities, or positions; or the participation 
in transactions that are prohibited by law, Executive order, rule, or 
regulation.

``SEC. 308. AUTHORITY OF COMPTROLLER GENERAL.

    ``The Comptroller General shall have access to financial disclosure 
reports filed under this title for the purposes of carrying out his 
statutory responsibilities.

``SEC. 309. DEFINITIONS.

    ``For the purposes of this title--
            ``(1) the term `dependent child' means, when used with 
        respect to any reporting individual, any individual who is a 
        son, daughter, stepson, or stepdaughter and who--
                    ``(A) is unmarried and under age 21 and is living 
                in the household of such reporting individual; or
                    ``(B) is a dependent of such reporting individual 
                within the meaning of section 152 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 152);
            ``(2) the term `designated agency ethics official' means an 
        officer or employee who is designated to administer the 
        provisions of this title within an agency;
            ``(3) the term `executive branch' includes--
                    ``(A) each Executive agency (as defined in section 
                105 of title 5, United States Code), other than the 
                General Accounting Office; and
                    ``(B) any other entity or administrative unit in 
                the executive branch;
            ``(4) the term `gift' means a payment, advance, 
        forbearance, rendering, or deposit of money, or any thing of 
        value, unless consideration of equal or greater value is 
        received by the donor, but does not include--
                    ``(A) bequests and other forms of inheritance;
                    ``(B) suitable mementos of a function honoring the 
                reporting individual;
                    ``(C) food, lodging, transportation, and 
                entertainment provided by a foreign government within a 
                foreign country or by the United States Government, the 
                District of Columbia, or a State or local government or 
                political subdivision thereof;
                    ``(D) food and beverages which are not consumed in 
                connection with a gift of overnight lodging;
                    ``(E) communications to the offices of a reporting 
                individual, including subscriptions to newspapers and 
                periodicals; or
                    ``(F) items that are accepted pursuant to or are 
                required to be reported by the reporting individual 
                under section 7342 of title 5, United States Code.
            ``(5) the term `honorarium' means a payment of money or 
        anything of value for an appearance, speech, or article;
            ``(6) the term `income' means all income from whatever 
        source derived, including but not limited to the following 
        items: compensation for services, including fees, commissions, 
        and similar items; gross income derived from business (and net 
        income if the individual elects to include it); gains derived 
        from dealings in property; interest; rents; royalties; prizes 
        and awards; dividends; annuities; income from life insurance 
        and endowment contracts; pensions; income from discharge of 
        indebtedness; distributive share of partnership income; and 
        income from an interest in an estate or trust;
            ``(7) the term `personal hospitality of any individual' 
        means hospitality extended for a nonbusiness purpose by an 
        individual, not a corporation or organization, at the personal 
        residence of that individual or his family or on property or 
        facilities owned by that individual or his family;
            ``(8) the term `reimbursement' means any payment or other 
        thing of value received by the reporting individual, other than 
        gifts, to cover travel-related expenses of such individual 
        other than those which are--
                    ``(A) provided by the United States Government, the 
                District of Columbia, or a State or local government or 
                political subdivision thereof;
                    ``(B) required to be reported by the reporting 
                individual under section 7342 of title 5, United States 
                Code; or
                    ``(C) required to be reported under section 304 of 
                the Federal Election Campaign Act of 1971 (2 U.S.C. 
                434);
            ``(9) the term `relative' means an individual who is 
        related to the reporting individual, as father, mother, son, 
        daughter, brother, sister, uncle, aunt, great aunt, great 
        uncle, first cousin, nephew, niece, husband, wife, grandfather, 
        grandmother, grandson, granddaughter, father-in-law, mother-in-
        law, son-in-law, daughter-in-law, brother-in-law, sister-in-
        law, stepfather, stepmother, stepson, stepdaughter, 
        stepbrother, stepsister, half brother, half sister, or who is 
        the grandfather or grandmother of the spouse of the reporting 
        individual, and shall be deemed to include the fiance or 
        fiancee of the reporting individual;
            ``(10) the term `Secretary concerned' has the meaning set 
        forth in section 101(a)(9) of title 10, United States Code; and
            ``(11) the term `value' means a good faith estimate of the 
        dollar value if the exact value is neither known nor easily 
        obtainable by the reporting individual.

``SEC. 310. NOTICE OF ACTIONS TAKEN TO COMPLY WITH ETHICS AGREEMENTS.

    ``(a) In any case in which an individual agrees with that 
individual's designated agency ethics official, the Office of 
Government Ethics, or a Senate confirmation committee, to take any 
action to comply with this Act or any other law or regulation governing 
conflicts of interest of, or establishing standards of conduct 
applicable with respect to, officers or employees of the Government, 
that individual shall notify in writing the designated agency ethics 
official, the Office of Government Ethics, or the appropriate committee 
of the Senate, as the case may be, of any action taken by the 
individual pursuant to that agreement. Such notification shall be made 
not later than the date specified in the agreement by which action by 
the individual must be taken, or not later than 3 months after the date 
of the agreement, if no date for action is so specified. If all actions 
agreed to have not been completed by the date of this notification, 
such notification shall continue on a monthly basis thereafter until 
the individual has met the terms of the agreement.
    ``(b) If an agreement described in subsection (a) requires that the 
individual recuse himself or herself from particular categories of 
agency or other official action, the individual shall reduce to writing 
those subjects regarding which the recusal agreement will apply and the 
process by which it will be determined whether the individual must 
recuse himself or herself in a specific instance. An individual shall 
be considered to have complied with the requirements of subsection (a) 
with respect to such recusal agreement if such individual files a copy 
of the document setting forth the information described in the 
preceding sentence with such individual's designated agency ethics 
official or the Office of Government Ethics within the time prescribed 
in the penultimate sentence of subsection (a).

``SEC. 311. ADMINISTRATION OF PROVISIONS.

    ``The Office of Government Ethics shall issue regulations, develop 
forms, and provide such guidance as is necessary to implement and 
interpret this title.''.
    (b) Exemption From Public Access to Financial Disclosures.--Section 
105(a)(1) of such Act is amended by inserting ``the Office of the 
National Intelligence Director,'' before ``the Central Intelligence 
Agency''.
    (c) Conforming Amendment.--Section 101(f) of such Act is amended--
            (1) in paragraph (12), by striking the period at the end 
        and inserting a semicolon; and
            (2) by adding at the end the following:
``but do not include any officer or employee of any department or 
agency listed in section 301(e).''.

SEC. 5044. REDUCTION OF POSITIONS REQUIRING APPOINTMENT WITH SENATE 
              CONFIRMATION.

    (a) Definition.--In this section, the term ``agency'' means an 
Executive agency, as defined under section 105 of title 5, United 
States Code.
    (b) Reduction Plan.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the head of each agency shall submit a 
        Presidential appointment reduction plan to--
                    (A) the President;
                    (B) the Committee on Governmental Affairs of the 
                Senate; and
                    (C) the Committee on Government Reform of the House 
                of Representatives.
            (2) Content.--The plan under this subsection shall provide 
        for the reduction of--
                    (A) the number of positions within that agency that 
                require an appointment by the President, by and with 
                the advice and consent of the Senate; and
                    (B) the number of levels of such positions within 
                that agency.

SEC. 5045. EFFECTIVE DATES.

    (a) Section 5043.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by section 5043 shall take effect on January 1 of the year 
        following the year in which occurs the date of enactment of 
        this Act.
            (2) Later date.--If this Act is enacted on or after July 1 
        of a year, the amendments made by section 301 shall take effect 
        on July 1 of the following year.
    (b) Section 5044.--Section 5044 shall take effect on the date of 
enactment of this Act.

       CHAPTER 2--FEDERAL BUREAU OF INVESTIGATION REVITALIZATION

SEC. 5051. MANDATORY SEPARATION AGE.

    (a) Civil Service Retirement System.--Section 8335(b) of title 5, 
United States Code, is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) In the case of employees of the Federal Bureau of 
Investigation, the second sentence of paragraph (1) shall be applied by 
substituting `65 years of age' for `60 years of age'. The authority to 
grant exemptions in accordance with the preceding sentence shall cease 
to be available after December 31, 2009.''.
    (b) Federal Employees' Retirement System.--Section 8425(b) of title 
5, United States Code, is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) In the case of employees of the Federal Bureau of 
Investigation, the second sentence of paragraph (1) shall be applied by 
substituting `65 years of age' for `60 years of age'. The authority to 
grant exemptions in accordance with the preceding sentence shall cease 
to be available after December 31, 2009.''.

SEC. 5052. RETENTION AND RELOCATION BONUSES.

    (a) In General.--Subchapter IV of chapter 57 of title 5, United 
States Code, is amended by adding at the end the following:
``Sec. 5759. Retention and relocation bonuses for the Federal Bureau of 
              Investigation
    ``(a) Authority.--The Director of the Federal Bureau of 
Investigation, after consultation with the Director of the Office of 
Personnel Management, may pay, on a case-by-case basis, a bonus under 
this section to an employee of the Bureau if--
            ``(1)(A) the unusually high or unique qualifications of the 
        employee or a special need of the Bureau for the employee's 
        services makes it essential to retain the employee; and
            ``(B) the Director of the Federal Bureau of Investigation 
        determines that, in the absence of such a bonus, the employee 
        would be likely to leave--
                    ``(i) the Federal service; or
                    ``(ii) for a different position in the Federal 
                service; or
            ``(2) the individual is transferred to a different 
        geographic area with a higher cost of living (as determined by 
        the Director of the Federal Bureau of Investigation).
    ``(b) Service Agreement.--Payment of a bonus under this section is 
contingent upon the employee entering into a written service agreement 
with the Bureau to complete a period of service with the Bureau. Such 
agreement shall include--
            ``(1) the period of service the individual shall be 
        required to complete in return for the bonus; and
            ``(2) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed, and the effect of the termination.
    ``(c) Limitation on Authority.--A bonus paid under this section may 
not exceed 50 percent of the employee's basic pay.
    ``(d) Impact on Basic Pay.--A retention bonus is not part of the 
basic pay of an employee for any purpose.
    ``(e) Termination of Authority.--The authority to grant bonuses 
under this section shall cease to be available after December 31, 
2009.''.
    (b) Clerical Amendment.--The analysis for chapter 57 of title 5, 
United States Code, is amended by adding at the end the following:

``5759. Retention and relocation bonuses for the Federal Bureau of 
                            Investigation.''.

SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE SERVICE.

    (a) In General.--Chapter 35 of title 5, United States Code, is 
amended by adding at the end the following:

  ``SUBCHAPTER VII--RETENTION OF RETIRED SPECIALIZED EMPLOYEES AT THE 
                    FEDERAL BUREAU OF INVESTIGATION

``Sec. 3598. Federal Bureau of Investigation Reserve Service
    ``(a) Establishment.--The Director of the Federal Bureau of 
Investigation may provide for the establishment and training of a 
Federal Bureau of Investigation Reserve Service (hereinafter in this 
section referred to as the `FBI Reserve Service') for temporary 
reemployment of employees in the Bureau during periods of emergency, as 
determined by the Director.
    ``(b) Membership.--Membership in the FBI Reserve Service shall be 
limited to individuals who previously served as full-time employees of 
the Bureau.
    ``(c) Annuitants.--If an individual receiving an annuity from the 
Civil Service Retirement and Disability Fund on the basis of such 
individual's service becomes temporarily reemployed pursuant to this 
section, such annuity shall not be discontinued thereby. An individual 
so reemployed shall not be considered an employee for the purposes of 
chapter 83 or 84.
    ``(d) No Impact on Bureau Personnel Ceiling.--FBI Reserve Service 
members reemployed on a temporary basis pursuant to this section shall 
not count against any personnel ceiling applicable to the Bureau.
    ``(e) Expenses.--The Director may provide members of the FBI 
Reserve Service transportation and per diem in lieu of subsistence, in 
accordance with applicable provisions of this title, for the purpose of 
participating in any training that relates to service as a member of 
the FBI Reserve Service.
    ``(f) Limitation on Membership.--Membership of the FBI Reserve 
Service is not to exceed 500 members at any given time.''.
    (b) Clerical Amendment.--The analysis for chapter 35 of title 5, 
United States Code, is amended by adding at the end the following:

  ``subchapter vii--retention of retired specialized employees at the 
                    federal bureau of investigation
``3598. Federal Bureau of Investigation Reserve Service.''.

SEC. 5054. CRITICAL POSITIONS IN THE FEDERAL BUREAU OF INVESTIGATION 
              INTELLIGENCE DIRECTORATE.

    Section 5377(a)(2) of title 5, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (F) the following:
                    ``(G) a position at the Federal Bureau of 
                Investigation, the primary duties and responsibilities 
                of which relate to intelligence functions (as 
                determined by the Director of the Federal Bureau of 
                Investigation).''.

                    CHAPTER 3--MANAGEMENT AUTHORITY

SEC. 5061. MANAGEMENT AUTHORITY.

    (a) Management Authority.--Section 7103(b)(1)(A) of title 5, United 
States Code, is amended by adding ``homeland security,'' after 
``investigative,''.
    (b) Exclusionary Authority.--Section 842 of the Homeland Security 
Act (Public Law 107-296; 6 U.S.C. 412) is repealed.

              Subtitle F--Security Clearance Modernization

SEC. 5071. DEFINITIONS.

    In this subtitle:
            (1) The term ``Director'' means the National Intelligence 
        Director.
            (2) The term ``agency'' means--
                    (A) an executive agency, as defined in section 105 
                of title 5, United States Code;
                    (B) a military department, as defined in section 
                102 of title 5, United States Code; and
                    (C) elements of the intelligence community, as 
                defined in section 3(4) of the National Security Act of 
                1947 (50 U.S.C. 401a(4)).
            (3) The term ``authorized investigative agency'' means an 
        agency authorized by law, regulation or direction of the 
        Director to conduct a counterintelligence investigation or 
        investigation of persons who are proposed for access to 
        classified information to ascertain whether such persons 
        satisfy the criteria for obtaining and retaining access to such 
        information.
            (4) The term ``authorized adjudicative agency'' means an 
        agency authorized by law, regulation or direction of the 
        Director to determine eligibility for access to classified 
        information in accordance with Executive Order 12968.
            (5) The term ``highly sensitive program'' means--
                    (A) a government program designated as a Special 
                Access Program (as defined by section 4.1(h) of 
                Executive Order 12958); and
                    (B) a government program that applies restrictions 
                required for--
                            (i) Restricted Data (as defined by section 
                        11 y. of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2014(y)); or
                            (ii) other information commonly referred to 
                        as ``Sensitive Compartmented Information''.
            (6) The term ``current investigation file'' means, with 
        respect to a security clearance, a file on an investigation or 
        adjudication that has been conducted during--
                    (A) the 5-year period beginning on the date the 
                security clearance was granted, in the case of a Top 
                Secret Clearance, or the date access was granted to a 
                highly sensitive program;
                    (B) the 10-year period beginning on the date the 
                security clearance was granted in the case of a Secret 
                Clearance; and
                    (C) the 15-year period beginning on the date the 
                security clearance was granted in the case of a 
                Confidential Clearance.
            (7) The term ``personnel security investigation'' means any 
        investigation required for the purpose of determining the 
        eligibility of any military, civilian, or government contractor 
        personnel to access classified information.
            (8) The term ``periodic reinvestigations'' means--
                    (A) investigations conducted for the purpose of 
                updating a previously completed background 
                investigation--
                            (i) every five years in the case of a Top 
                        Secret Clearance or access to a highly 
                        sensitive program;
                            (ii) every 10 years in the case of a Secret 
                        Clearance; and
                            (iii) every 15 years in the case of a 
                        Confidential Clearance;
                    (B) on-going investigations to identify personnel 
                security risks as they develop, pursuant to section 
                105(c).
            (9) The term ``appropriate committees of Congress'' means--
                    (A) the Permanent Select Committee on Intelligence 
                and the Committees on Armed Services, Judiciary, and 
                Government Reform of the House of Representatives; and
                    (B) the Select Committee on Intelligence and the 
                Committees on Armed Services, Judiciary, and 
                Governmental Affairs of the Senate.

SEC. 5072. SECURITY CLEARANCE AND INVESTIGATIVE PROGRAMS OVERSIGHT AND 
              ADMINISTRATION.

    The Deputy National Intelligence Director for Community Management 
and Resources shall have responsibility for the following:
            (1) Directing day-to-day oversight of investigations and 
        adjudications for personnel security clearances to highly 
        sensitive programs throughout the Federal Government.
            (2) Developing and implementing uniform and consistent 
        policies and procedures to ensure the effective, efficient, and 
        timely completion of security clearances and determinations for 
        access to highly sensitive programs, including the 
        standardization of security questionnaires, financial 
        disclosure requirements for security clearance applicants, and 
        polygraph policies and procedures.
            (3) Serving as the final authority to designate an 
        authorized investigative agency or authorized adjudicative 
        agency pursuant to section 5074(d).
            (4) Ensuring reciprocal recognition of access to classified 
        information among agencies, including acting as the final 
        authority to arbitrate and resolve disputes involving the 
        reciprocity of security clearances and access to highly 
        sensitive programs.
            (5) Ensuring, to the maximum extent practicable, that 
        sufficient resources are available in each agency to achieve 
        clearance and investigative program goals.
            (6) Reviewing and coordinating the development of tools and 
        techniques for enhancing the conduct of investigations and 
        granting of clearances.

SEC. 5073. RECIPROCITY OF SECURITY CLEARANCE AND ACCESS DETERMINATIONS.

    (a) Requirement for Reciprocity.--(1) All security clearance 
background investigations and determinations completed by an authorized 
investigative agency or authorized adjudicative agency shall be 
accepted by all agencies.
    (2) All security clearance background investigations initiated by 
an authorized investigative agency shall be transferable to any other 
authorized investigative agency.
    (b) Prohibition on Establishing Additional Requirements.--(1) An 
authorized investigative agency or authorized adjudicative agency may 
not establish additional investigative or adjudicative requirements 
(other than requirements for the conduct of a polygraph examination) 
that exceed requirements specified in Executive Orders establishing 
security requirements for access to classified information.
    (2) Notwithstanding the paragraph (1), the Director may establish 
additional requirements as needed for national security purposes.
    (c) Prohibition on Duplicative Investigations.--An authorized 
investigative agency or authorized adjudicative agency may not conduct 
an investigation for purposes of determining whether to grant a 
security clearance to an individual where a current investigation or 
clearance of equal level already exists or has been granted by another 
authorized adjudicative agency.

SEC. 5074. ESTABLISHMENT OF NATIONAL DATABASE .

    (a) Establishment.--Not later than 12 months after the date of the 
enactment of this Act, the Director of the Office of Personnel 
Management, in cooperation with the Director, shall establish, and 
begin operating and maintaining, an integrated, secure, national 
database into which appropriate data relevant to the granting, denial, 
or revocation of a security clearance or access pertaining to military, 
civilian, or government contractor personnel shall be entered from all 
authorized investigative and adjudicative agencies.
    (b) Integration.--The national database established under 
subsection (a) shall function to integrate information from existing 
Federal clearance tracking systems from other authorized investigative 
and adjudicative agencies into a single consolidated database.
    (c) Requirement to Check Database.--Each authorized investigative 
or adjudicative agency shall check the national database established 
under subsection (a) to determine whether an individual the agency has 
identified as requiring a security clearance has already been granted 
or denied a security clearance, or has had a security clearance 
revoked, by any other authorized investigative or adjudicative agency.
    (d) Certification of Authorized Investigative Agencies or 
Authorized Adjudicative Agencies.--The Director shall evaluate the 
extent to which an agency is submitting information to, and requesting 
information from, the national database established under subsection 
(a) as part of a determination of whether to certify the agency as an 
authorized investigative agency or authorized adjudicative agency.
    (e) Exclusion of Certain Intelligence Operatives.--The Director may 
authorize an agency to withhold information about certain individuals 
from the database established under subsection (a) if the Director 
determines it is necessary for national security purposes.
    (f) Compliance.--The Director shall establish a review procedure by 
which agencies can seek review of actions required under section 5073.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary for fiscal year 2005 and 
each subsequent fiscal year for the implementation, maintenance and 
operation of the database established in subsection (a).

SEC. 5075. USE OF AVAILABLE TECHNOLOGY IN CLEARANCE INVESTIGATIONS.

    (a) Investigations.--Not later than 12 months after the date of the 
enactment of this Act, each authorized investigative agency that 
conducts personnel security clearance investigations shall use, to the 
maximum extent practicable, available information technology and 
databases to expedite investigative processes and to verify standard 
information submitted as part of an application for a security 
clearance.
    (b) Interim Clearance.--If the application of an applicant for an 
interim clearance has been processed using the technology under 
subsection (a), the interim clearances for the applicant at the secret, 
top secret, and special access program levels may be granted before the 
completion of the appropriate investigation. Any request to process an 
interim clearance shall be given priority, and the authority granting 
the interim clearance shall ensure that final adjudication on the 
application is made within 90 days after the initial clearance is 
granted.
    (c) On-Going Monitoring of Individuals With Security Clearances.--
(1) Authorized investigative agencies and authorized adjudicative 
agencies shall establish procedures for the regular, ongoing 
verification of personnel with security clearances in effect for 
continued access to classified information. Such procedures shall 
include the use of available technology to detect, on a regularly 
recurring basis, any issues of concern that may arise involving such 
personnel and such access.
    (2) Such regularly recurring verification may be used as a basis 
for terminating a security clearance or access and shall be used in 
periodic reinvestigations to address emerging threats and adverse 
events associated with individuals with security clearances in effect 
to the maximum extent practicable.
    (3) If the Director certifies that the national security of the 
United States is not harmed by the discontinuation of periodic 
reinvestigations, the regularly recurring verification under this 
section may replace periodic reinvestigations.

SEC. 5076. REDUCTION IN LENGTH OF PERSONNEL SECURITY CLEARANCE PROCESS.

    (a) 60-Day Period for Determination on Clearances.--Each authorized 
adjudicative agency shall make a determination on an application for a 
personnel security clearance within 60 days after the date of receipt 
of the completed application for a security clearance by an authorized 
investigative agency. The 60-day period shall include--
            (1) a period of not longer than 40 days to complete the 
        investigative phase of the clearance review; and
            (2) a period of not longer than 20 days to complete the 
        adjudicative phase of the clearance review.
    (b) Effective Date and Phase-in.--
            (1) Effective date.--Subsection (a) shall take effect 5 
        years after the date of the enactment of this Act.
            (2) Phase-in.--During the period beginning on a date not 
        later than 2 years after the date after the enactment of this 
        Act and ending on the date on which subsection (a) takes effect 
        as specified in paragraph (1), each authorized adjudicative 
        agency shall make a determination on an application for a 
        personnel security clearance pursuant to this title within 120 
        days after the date of receipt of the application for a 
        security clearance by an authorized investigative agency. The 
        120-day period shall include--
                    (A) a period of not longer than 90 days to complete 
                the investigative phase of the clearance review; and
                    (B) a period of not longer than 30 days to complete 
                the adjudicative phase of the clearance review.

SEC. 5077. SECURITY CLEARANCES FOR PRESIDENTIAL TRANSITION.

    (a) Candidates for National Security Positions.--(1) The President-
elect shall submit to the Director the names of candidates for high-
level national security positions, for positions at the level of under 
secretary of executive departments and above, as soon as possible after 
the date of the general elections held to determine the electors of 
President and Vice President under section 1 or 2 of title 3, United 
States Code.
    (2) The Director shall be responsible for the expeditious 
completion of the background investigations necessary to provide 
appropriate security clearances to the individuals who are candidates 
described under paragraph (1) before the date of the inauguration of 
the President-elect as President and the inauguration of the Vice-
President-elect as Vice President.
    (b) Security Clearances for Transition Team Members.--(1) In this 
section, the term ``major party'' has the meaning provided under 
section 9002(6) of the Internal Revenue Code of 1986.
    (2) Each major party candidate for President, except a candidate 
who is the incumbent President, shall submit, before the date of the 
general presidential election, requests for security clearances for 
prospective transition team members who will have a need for access to 
classified information to carry out their responsibilities as members 
of the President-elect's transition team.
    (3) Necessary background investigations and eligibility 
determinations to permit appropriate prospective transition team 
members to have access to classified information shall be completed, to 
the fullest extent practicable, by the day after the date of the 
general presidential election.

SEC. 5078. REPORTS.

    Not later than February 15, 2006, and annually thereafter through 
2016, the Director shall submit to the appropriate committees of 
Congress a report on the progress made during the preceding year toward 
meeting the requirements specified in this Act. The report shall 
include--
            (1) the periods of time required by the authorized 
        investigative agencies and authorized adjudicative agencies 
        during the year covered by the report for conducting 
        investigations, adjudicating cases, and granting clearances, 
        from date of submission to ultimate disposition and 
        notification to the subject and the subject's employer;
            (2) a discussion of any impediments to the smooth and 
        timely functioning of the implementation of this title; and
            (3) such other information or recommendations as the Deputy 
        Director deems appropriate.

              Subtitle G--Emergency Financial Preparedness

        CHAPTER 1--EMERGENCY PREPAREDNESS FOR FISCAL AUTHORITIES

SEC. 5081. DELEGATION AUTHORITY OF THE SECRETARY OF THE TREASURY.

    Subsection (d) of section 306 of title 31, United States Code, is 
amended by inserting ``or employee'' after ``another officer''.

SEC. 5081A. TREASURY SUPPORT FOR FINANCIAL SERVICES INDUSTRY 
              PREPAREDNESS AND RESPONSE.

    (a) Congressional Finding.--The Congress finds that the Secretary 
of the Treasury--
            (1) has successfully communicated and coordinated with the 
        private-sector financial services industry about counter-
        terrorist financing activities and preparedness;
            (2) has successfully reached out to State and local 
        governments and regional public-private partnerships, such as 
        ChicagoFIRST, that protect employees and critical 
        infrastructure by enhancing communication and coordinating 
        plans for disaster preparedness and business continuity; and
            (3) has set an example for the Department of Homeland 
        Security and other Federal agency partners, whose active 
        participation is vital to the overall success of the activities 
        described in paragraphs (1) and (2).
    (b) Further Education and Preparation Efforts.--It is the sense of 
Congress that the Secretary of the Treasury, in consultation with the 
Secretary of Homeland Security and other Federal agency partners, 
should--
            (1) furnish sufficient personnel and technological and 
        financial resources to foster the formation of public-private 
        sector coalitions, similar to ChicagoFIRST, that, in 
        collaboration with the Department of Treasury, the Department 
        of Homeland Security, and other Federal agency partners, would 
        educate consumers and employees of the financial services 
        industry about domestic counter-terrorist financing activities, 
        including--
                    (A) how the public and private sector organizations 
                involved in counter-terrorist financing activities can 
                help to combat terrorism and simultaneously protect and 
                preserve the lives and civil liberties of consumers and 
                employees of the financial services industry; and
                    (B) how consumers and employees of the financial 
                services industry can assist the public and private 
                sector organizations involved in counter-terrorist 
                financing activities; and
            (2) submit annual reports to the Congress on Federal 
        efforts, in conjunction with public-private sector coalitions, 
        to educate consumers and employees of the financial services 
        industry about domestic counter-terrorist financing activities.

                     CHAPTER 2--MARKET PREPAREDNESS

              Subchapter A--Netting of Financial Contracts

SEC. 5082. SHORT TITLE.

    This subchapter may be cited as the ``Financial Contracts 
Bankruptcy Reform Act of 2004''.

SEC. 5082A. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR 
              RECEIVERS OF INSURED DEPOSITORY INSTITUTIONS.

    (a) Definition of Qualified Financial Contract.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(D)) is amended--
                    (A) by striking ``subsection--'' and inserting 
                ``subsection, the following definitions shall apply:''; 
                and
                    (B) in clause (i), by inserting ``, resolution, or 
                order'' after ``any similar agreement that the 
                Corporation determines by regulation''.
            (2) Insured credit unions.--Section 207(c)(8)(D) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended--
                    (A) by striking ``subsection--'' and inserting 
                ``subsection, the following definitions shall apply:''; 
                and
                    (B) in clause (i), by inserting ``, resolution, or 
                order'' after ``any similar agreement that the Board 
                determines by regulation''.
    (b) Definition of Securities Contract.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(D)(ii)) is amended to read as follows:
                            ``(ii) Securities contract.--The term 
                        `securities contract'--
                                    ``(I) means a contract for the 
                                purchase, sale, or loan of a security, 
                                a certificate of deposit, a mortgage 
                                loan, or any interest in a mortgage 
                                loan, a group or index of securities, 
                                certificates of deposit, or mortgage 
                                loans or interests therein (including 
                                any interest therein or based on the 
                                value thereof) or any option on any of 
                                the foregoing, including any option to 
                                purchase or sell any such security, 
                                certificate of deposit, mortgage loan, 
                                interest, group or index, or option, 
                                and including any repurchase or reverse 
                                repurchase transaction on any such 
                                security, certificate of deposit, 
                                mortgage loan, interest, group or 
                                index, or option;
                                    ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a participation in a 
                                commercial mortgage loan unless the 
                                Corporation determines by regulation, 
                                resolution, or order to include any 
                                such agreement within the meaning of 
                                such term;
                                    ``(III) means any option entered 
                                into on a national securities exchange 
                                relating to foreign currencies;
                                    ``(IV) means the guarantee by or to 
                                any securities clearing agency of any 
                                settlement of cash, securities, 
                                certificates of deposit, mortgage loans 
                                or interests therein, group or index of 
                                securities, certificates of deposit, or 
                                mortgage loans or interests therein 
                                (including any interest therein or 
                                based on the value thereof) or option 
                                on any of the foregoing, including any 
                                option to purchase or sell any such 
                                security, certificate of deposit, 
                                mortgage loan, interest, group or 
                                index, or option;
                                    ``(V) means any margin loan;
                                    ``(VI) means any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) means any combination of 
                                the agreements or transactions referred 
                                to in this clause;
                                    ``(VIII) means any option to enter 
                                into any agreement or transaction 
                                referred to in this clause;
                                    ``(IX) means a master agreement 
                                that provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), (V), (VI), (VII), or 
                                (VIII), together with all supplements 
                                to any such master agreement, without 
                                regard to whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a securities 
                                contract under this clause, except that 
                                the master agreement shall be 
                                considered to be a securities contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (III), (IV), (V), (VI), 
                                (VII), or (VIII); and
                                    ``(X) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in this clause.''.
            (2) Insured credit unions.--Section 207(c)(8)(D)(ii) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(ii)) is 
        amended to read as follows:
                            ``(ii) Securities contract.--The term 
                        `securities contract'--
                                    ``(I) means a contract for the 
                                purchase, sale, or loan of a security, 
                                a certificate of deposit, a mortgage 
                                loan, or any interest in a mortgage 
                                loan, a group or index of securities, 
                                certificates of deposit, or mortgage 
                                loans or interests therein (including 
                                any interest therein or based on the 
                                value thereof) or any option on any of 
                                the foregoing, including any option to 
                                purchase or sell any such security, 
                                certificate of deposit, mortgage loan, 
                                interest, group or index, or option, 
                                and including any repurchase or reverse 
                                repurchase transaction on any such 
                                security, certificate of deposit, 
                                mortgage loan, interest, group or 
                                index, or option;
                                    ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a participation in a 
                                commercial mortgage loan unless the 
                                Board determines by regulation, 
                                resolution, or order to include any 
                                such agreement within the meaning of 
                                such term;
                                    ``(III) means any option entered 
                                into on a national securities exchange 
                                relating to foreign currencies;
                                    ``(IV) means the guarantee by or to 
                                any securities clearing agency of any 
                                settlement of cash, securities, 
                                certificates of deposit, mortgage loans 
                                or interests therein, group or index of 
                                securities, certificates of deposit, or 
                                mortgage loans or interests therein 
                                (including any interest therein or 
                                based on the value thereof) or option 
                                on any of the foregoing, including any 
                                option to purchase or sell any such 
                                security, certificate of deposit, 
                                mortgage loan, interest, group or 
                                index, or option;
                                    ``(V) means any margin loan;
                                    ``(VI) means any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) means any combination of 
                                the agreements or transactions referred 
                                to in this clause;
                                    ``(VIII) means any option to enter 
                                into any agreement or transaction 
                                referred to in this clause;
                                    ``(IX) means a master agreement 
                                that provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), (V), (VI), (VII), or 
                                (VIII), together with all supplements 
                                to any such master agreement, without 
                                regard to whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a securities 
                                contract under this clause, except that 
                                the master agreement shall be 
                                considered to be a securities contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (III), (IV), (V), (VI), 
                                (VII), or (VIII); and
                                    ``(X) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in this clause.''.
    (c) Definition of Commodity Contract.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(8)(D)(iii)) is amended to read as follows:
                            ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                    ``(I) with respect to a futures 
                                commission merchant, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade;
                                    ``(II) with respect to a foreign 
                                futures commission merchant, a foreign 
                                future;
                                    ``(III) with respect to a leverage 
                                transaction merchant, a leverage 
                                transaction;
                                    ``(IV) with respect to a clearing 
                                organization, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade that is cleared by such clearing 
                                organization, or commodity option 
                                traded on, or subject to the rules of, 
                                a contract market or board of trade 
                                that is cleared by such clearing 
                                organization;
                                    ``(V) with respect to a commodity 
                                options dealer, a commodity option;
                                    ``(VI) any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(VIII) any option to enter into 
                                any agreement or transaction referred 
                                to in this clause;
                                    ``(IX) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), (IV), (V), (VI), 
                                (VII), or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                commodity contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a commodity 
                                contract under this clause only with 
                                respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), (III), (IV), (V), (VI), (VII), or 
                                (VIII); or
                                    ``(X) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in this clause, including 
                                any guarantee or reimbursement 
                                obligation in connection with any 
                                agreement or transaction referred to in 
                                this clause.''.
            (2) Insured credit unions.--Section 207(c)(8)(D)(iii) of 
        the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(iii)) is 
        amended to read as follows:
                            ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                    ``(I) with respect to a futures 
                                commission merchant, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade;
                                    ``(II) with respect to a foreign 
                                futures commission merchant, a foreign 
                                future;
                                    ``(III) with respect to a leverage 
                                transaction merchant, a leverage 
                                transaction;
                                    ``(IV) with respect to a clearing 
                                organization, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade that is cleared by such clearing 
                                organization, or commodity option 
                                traded on, or subject to the rules of, 
                                a contract market or board of trade 
                                that is cleared by such clearing 
                                organization;
                                    ``(V) with respect to a commodity 
                                options dealer, a commodity option;
                                    ``(VI) any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(VIII) any option to enter into 
                                any agreement or transaction referred 
                                to in this clause;
                                    ``(IX) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), (IV), (V), (VI), 
                                (VII), or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                commodity contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a commodity 
                                contract under this clause only with 
                                respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), (III), (IV), (V), (VI), (VII), or 
                                (VIII); or
                                    ``(X) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in this clause, including 
                                any guarantee or reimbursement 
                                obligation in connection with any 
                                agreement or transaction referred to in 
                                this clause.''.
    (d) Definition of Forward Contract.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(iv) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(D)(iv)) is amended to read as follows:
                            ``(iv) Forward contract.--The term `forward 
                        contract' means--
                                    ``(I) a contract (other than a 
                                commodity contract) for the purchase, 
                                sale, or transfer of a commodity or any 
                                similar good, article, service, right, 
                                or interest which is presently or in 
                                the future becomes the subject of 
                                dealing in the forward contract trade, 
                                or product or by-product thereof, with 
                                a maturity date more than 2 days after 
                                the date the contract is entered into, 
                                including, a repurchase transaction, 
                                reverse repurchase transaction, 
                                consignment, lease, swap, hedge 
                                transaction, deposit, loan, option, 
                                allocated transaction, unallocated 
                                transaction, or any other similar 
                                agreement;
                                    ``(II) any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (III);
                                    ``(III) any option to enter into 
                                any agreement or transaction referred 
                                to in subclause (I) or (II);
                                    ``(IV) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclauses 
                                (I), (II), or (III), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                forward contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a forward contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), or (III); or
                                    ``(V) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in subclause (I), (II), 
                                (III), or (IV), including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement or 
                                transaction referred to in any such 
                                subclause.''.
            (2) Insured credit unions.--Section 207(c)(8)(D)(iv) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(iv)) is 
        amended to read as follows:
                            ``(iv) Forward contract.--The term `forward 
                        contract' means--
                                    ``(I) a contract (other than a 
                                commodity contract) for the purchase, 
                                sale, or transfer of a commodity or any 
                                similar good, article, service, right, 
                                or interest which is presently or in 
                                the future becomes the subject of 
                                dealing in the forward contract trade, 
                                or product or by-product thereof, with 
                                a maturity date more than 2 days after 
                                the date the contract is entered into, 
                                including, a repurchase transaction, 
                                reverse repurchase transaction, 
                                consignment, lease, swap, hedge 
                                transaction, deposit, loan, option, 
                                allocated transaction, unallocated 
                                transaction, or any other similar 
                                agreement;
                                    ``(II) any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (III);
                                    ``(III) any option to enter into 
                                any agreement or transaction referred 
                                to in subclause (I) or (II);
                                    ``(IV) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclauses 
                                (I), (II), or (III), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                forward contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a forward contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), or (III); or
                                    ``(V) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in subclause (I), (II), 
                                (III), or (IV), including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement or 
                                transaction referred to in any such 
                                subclause.''.
    (e) Definition of Repurchase Agreement.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(v) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(D)(v)) is amended to read as follows:
                            ``(v) Repurchase agreement.--The term 
                        `repurchase agreement' (which definition also 
                        applies to a reverse repurchase agreement)--
                                    ``(I) means an agreement, including 
                                related terms, which provides for the 
                                transfer of one or more certificates of 
                                deposit, mortgage-related securities 
                                (as such term is defined in the 
                                Securities Exchange Act of 1934), 
                                mortgage loans, interests in mortgage-
                                related securities or mortgage loans, 
                                eligible bankers' acceptances, 
                                qualified foreign government securities 
                                or securities that are direct 
                                obligations of, or that are fully 
                                guaranteed by, the United States or any 
                                agency of the United States against the 
                                transfer of funds by the transferee of 
                                such certificates of deposit, eligible 
                                bankers' acceptances, securities, 
                                mortgage loans, or interests with a 
                                simultaneous agreement by such 
                                transferee to transfer to the 
                                transferor thereof certificates of 
                                deposit, eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, at a date 
                                certain not later than 1 year after 
                                such transfers or on demand, against 
                                the transfer of funds, or any other 
                                similar agreement;
                                    ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial mortgage 
                                loan unless the Corporation determines 
                                by regulation, resolution, or order to 
                                include any such participation within 
                                the meaning of such term;
                                    ``(III) means any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (IV);
                                    ``(IV) means any option to enter 
                                into any agreement or transaction 
                                referred to in subclause (I) or (III);
                                    ``(V) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), or (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                repurchase agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a repurchase 
                                agreement under this subclause only 
                                with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (III), or (IV); and
                                    ``(VI) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), or (V), including any 
                                guarantee or reimbursement obligation 
                                in connection with any agreement or 
                                transaction referred to in any such 
                                subclause.
                        For purposes of this clause, the term 
                        `qualified foreign government security' means a 
                        security that is a direct obligation of, or 
                        that is fully guaranteed by, the central 
                        government of a member of the Organization for 
                        Economic Cooperation and Development (as 
                        determined by regulation or order adopted by 
                        the appropriate Federal banking authority).''.
            (2) Insured credit unions.--Section 207(c)(8)(D)(v) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)(v)) is 
        amended to read as follows:
                            ``(v) Repurchase agreement.--The term 
                        `repurchase agreement' (which definition also 
                        applies to a reverse repurchase agreement)--
                                    ``(I) means an agreement, including 
                                related terms, which provides for the 
                                transfer of one or more certificates of 
                                deposit, mortgage-related securities 
                                (as such term is defined in the 
                                Securities Exchange Act of 1934), 
                                mortgage loans, interests in mortgage-
                                related securities or mortgage loans, 
                                eligible bankers' acceptances, 
                                qualified foreign government securities 
                                or securities that are direct 
                                obligations of, or that are fully 
                                guaranteed by, the United States or any 
                                agency of the United States against the 
                                transfer of funds by the transferee of 
                                such certificates of deposit, eligible 
                                bankers' acceptances, securities, 
                                mortgage loans, or interests with a 
                                simultaneous agreement by such 
                                transferee to transfer to the 
                                transferor thereof certificates of 
                                deposit, eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, at a date 
                                certain not later than 1 year after 
                                such transfers or on demand, against 
                                the transfer of funds, or any other 
                                similar agreement;
                                    ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial mortgage 
                                loan unless the Board determines by 
                                regulation, resolution, or order to 
                                include any such participation within 
                                the meaning of such term;
                                    ``(III) means any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (IV);
                                    ``(IV) means any option to enter 
                                into any agreement or transaction 
                                referred to in subclause (I) or (III);
                                    ``(V) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), or (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                repurchase agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a repurchase 
                                agreement under this subclause only 
                                with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (III), or (IV); and
                                    ``(VI) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), or (V), including any 
                                guarantee or reimbursement obligation 
                                in connection with any agreement or 
                                transaction referred to in any such 
                                subclause.
                        For purposes of this clause, the term 
                        `qualified foreign government security' means a 
                        security that is a direct obligation of, or 
                        that is fully guaranteed by, the central 
                        government of a member of the Organization for 
                        Economic Cooperation and Development (as 
                        determined by regulation or order adopted by 
                        the appropriate Federal banking authority).''.
    (f) Definition of Swap Agreement.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(vi) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(D)(vi)) is amended to read as follows:
                            ``(vi) Swap agreement.--The term `swap 
                        agreement' means--
                                    ``(I) any agreement, including the 
                                terms and conditions incorporated by 
                                reference in any such agreement, which 
                                is an interest rate swap, option, 
                                future, or forward agreement, including 
                                a rate floor, rate cap, rate collar, 
                                cross-currency rate swap, and basis 
                                swap; a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement; a currency swap, option, 
                                future, or forward agreement; an equity 
                                index or equity swap, option, future, 
                                or forward agreement; a debt index or 
                                debt swap, option, future, or forward 
                                agreement; a total return, credit 
                                spread or credit swap, option, future, 
                                or forward agreement; a commodity index 
                                or commodity swap, option, future, or 
                                forward agreement; or a weather swap, 
                                weather derivative, or weather option;
                                    ``(II) any agreement or transaction 
                                that is similar to any other agreement 
                                or transaction referred to in this 
                                clause and that is of a type that has 
                                been, is presently, or in the future 
                                becomes, the subject of recurrent 
                                dealings in the swap markets (including 
                                terms and conditions incorporated by 
                                reference in such agreement) and that 
                                is a forward, swap, future, or option 
                                on one or more rates, currencies, 
                                commodities, equity securities or other 
                                equity instruments, debt securities or 
                                other debt instruments, quantitative 
                                measures associated with an occurrence, 
                                extent of an occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic consequence, or 
                                economic or financial indices or 
                                measures of economic or financial risk 
                                or value;
                                    ``(III) any combination of 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(IV) any option to enter into any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), or (IV), together 
                                with all supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement contains an 
                                agreement or transaction that is not a 
                                swap agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a swap agreement 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), (III), or (IV); 
                                and
                                    ``(VI) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreements or 
                                transactions referred to in subclause 
                                (I), (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in any such subclause.
                        Such term is applicable for purposes of this 
                        subsection only and shall not be construed or 
                        applied so as to challenge or affect the 
                        characterization, definition, or treatment of 
                        any swap agreement under any other statute, 
                        regulation, or rule, including the Securities 
                        Act of 1933, the Securities Exchange Act of 
                        1934, the Public Utility Holding Company Act of 
                        1935, the Trust Indenture Act of 1939, the 
                        Investment Company Act of 1940, the Investment 
                        Advisers Act of 1940, the Securities Investor 
                        Protection Act of 1970, the Commodity Exchange 
                        Act, the Gramm-Leach-Bliley Act, and the Legal 
                        Certainty for Bank Products Act of 2000.''.
            (2) Insured credit unions.--Section 207(c)(8)(D) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended 
        by adding at the end the following new clause:
                            ``(vi) Swap agreement.--The term `swap 
                        agreement' means--
                                    ``(I) any agreement, including the 
                                terms and conditions incorporated by 
                                reference in any such agreement, which 
                                is an interest rate swap, option, 
                                future, or forward agreement, including 
                                a rate floor, rate cap, rate collar, 
                                cross-currency rate swap, and basis 
                                swap; a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement; a currency swap, option, 
                                future, or forward agreement; an equity 
                                index or equity swap, option, future, 
                                or forward agreement; a debt index or 
                                debt swap, option, future, or forward 
                                agreement; a total return, credit 
                                spread or credit swap, option, future, 
                                or forward agreement; a commodity index 
                                or commodity swap, option, future, or 
                                forward agreement; or a weather swap, 
                                weather derivative, or weather option;
                                    ``(II) any agreement or transaction 
                                that is similar to any other agreement 
                                or transaction referred to in this 
                                clause and that is of a type that has 
                                been, is presently, or in the future 
                                becomes, the subject of recurrent 
                                dealings in the swap markets (including 
                                terms and conditions incorporated by 
                                reference in such agreement) and that 
                                is a forward, swap, future, or option 
                                on one or more rates, currencies, 
                                commodities, equity securities or other 
                                equity instruments, debt securities or 
                                other debt instruments, quantitative 
                                measures associated with an occurrence, 
                                extent of an occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic consequence, or 
                                economic or financial indices or 
                                measures of economic or financial risk 
                                or value;
                                    ``(III) any combination of 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(IV) any option to enter into any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), or (IV), together 
                                with all supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement contains an 
                                agreement or transaction that is not a 
                                swap agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a swap agreement 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), (III), or (IV); 
                                and
                                    ``(VI) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreements or 
                                transactions referred to in subclause 
                                (I), (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in any such subclause.
                        Such term is applicable for purposes of this 
                        subsection only and shall not be construed or 
                        applied so as to challenge or affect the 
                        characterization, definition, or treatment of 
                        any swap agreement under any other statute, 
                        regulation, or rule, including the Securities 
                        Act of 1933, the Securities Exchange Act of 
                        1934, the Public Utility Holding Company Act of 
                        1935, the Trust Indenture Act of 1939, the 
                        Investment Company Act of 1940, the Investment 
                        Advisers Act of 1940, the Securities Investor 
                        Protection Act of 1970, the Commodity Exchange 
                        Act, the Gramm-Leach-Bliley Act, and the Legal 
                        Certainty for Bank Products Act of 2000.''.
    (g) Definition of Transfer.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(viii) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(8)(D)(viii)) is amended to read as follows:
                            ``(viii) Transfer.--The term `transfer' 
                        means every mode, direct or indirect, absolute 
                        or conditional, voluntary or involuntary, of 
                        disposing of or parting with property or with 
                        an interest in property, including retention of 
                        title as a security interest and foreclosure of 
                        the depository institution's equity of 
                        redemption.''.
            (2) Insured credit unions.--Section 207(c)(8)(D) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) (as amended 
        by subsection (f) of this section) is amended by adding at the 
        end the following new clause:
                            ``(viii) Transfer.--The term `transfer' 
                        means every mode, direct or indirect, absolute 
                        or conditional, voluntary or involuntary, of 
                        disposing of or parting with property or with 
                        an interest in property, including retention of 
                        title as a security interest and foreclosure of 
                        the depository institution's equity of 
                        redemption.''.
    (h) Treatment of Qualified Financial Contracts.--
            (1) FDIC-insured depository institutions.--Section 11(e)(8) 
        of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is 
        amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``paragraph (10)'' and 
                        inserting ``paragraphs (9) and (10)'';
                            (ii) in clause (i), by striking ``to cause 
                        the termination or liquidation'' and inserting 
                        ``such person has to cause the termination, 
                        liquidation, or acceleration''; and
                            (iii) by striking clause (ii) and inserting 
                        the following new clause:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to one or more qualified 
                        financial contracts described in clause (i);''; 
                        and
                    (B) in subparagraph (E), by striking clause (ii) 
                and inserting the following:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to one or more qualified 
                        financial contracts described in clause (i);''.
            (2) Insured credit unions.--Section 207(c)(8) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``paragraph (12)'' and 
                        inserting ``paragraphs (9) and (10)'';
                            (ii) in clause (i), by striking ``to cause 
                        the termination or liquidation'' and inserting 
                        ``such person has to cause the termination, 
                        liquidation, or acceleration''; and
                            (iii) by striking clause (ii) and inserting 
                        the following new clause:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to 1 or more qualified 
                        financial contracts described in clause (i);''; 
                        and
                    (B) in subparagraph (E), by striking clause (ii) 
                and inserting the following new clause:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to 1 or more qualified 
                        financial contracts described in clause (i);''.
    (i) Avoidance of Transfers.--
            (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(C)(i) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(8)(C)(i)) is amended by inserting ``section 5242 of the 
        Revised Statutes of the United States or any other Federal or 
        State law relating to the avoidance of preferential or 
        fraudulent transfers,'' before ``the Corporation''.
            (2) Insured credit unions.--Section 207(c)(8)(C)(i) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)(C)(i)) is 
        amended by inserting ``section 5242 of the Revised Statutes of 
        the United States or any other Federal or State law relating to 
        the avoidance of preferential or fraudulent transfers,'' before 
        ``the Board''.

SEC. 5082B. AUTHORITY OF THE FDIC AND NCUAB WITH RESPECT TO FAILED AND 
              FAILING INSTITUTIONS.

    (a) Federal Deposit Insurance Corporation.--
            (1) In general.--Section 11(e)(8) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(e)(8)) is amended--
                    (A) in subparagraph (E), by striking ``other than 
                paragraph (12) of this subsection, subsection (d)(9)'' 
                and inserting ``other than subsections (d)(9) and 
                (e)(10)''; and
                    (B) by adding at the end the following new 
                subparagraphs:
                    ``(F) Clarification.--No provision of law shall be 
                construed as limiting the right or power of the 
                Corporation, or authorizing any court or agency to 
                limit or delay, in any manner, the right or power of 
                the Corporation to transfer any qualified financial 
                contract in accordance with paragraphs (9) and (10) of 
                this subsection or to disaffirm or repudiate any such 
                contract in accordance with subsection (e)(1) of this 
                section.
                    ``(G) Walkaway clauses not effective.--
                            ``(i) In general.--Notwithstanding the 
                        provisions of subparagraphs (A) and (E), and 
                        sections 403 and 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act of 1991, 
                        no walkaway clause shall be enforceable in a 
                        qualified financial contract of an insured 
                        depository institution in default.
                            ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in a 
                        qualified financial contract that, after 
                        calculation of a value of a party's position or 
                        an amount due to or from 1 of the parties in 
                        accordance with its terms upon termination, 
                        liquidation, or acceleration of the qualified 
                        financial contract, either does not create a 
                        payment obligation of a party or extinguishes a 
                        payment obligation of a party in whole or in 
                        part solely because of such party's status as a 
                        nondefaulting party.''.
            (2) Technical and conforming amendment.--Section 
        11(e)(12)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(e)(12)(A)) is amended by inserting ``or the exercise of 
        rights or powers by'' after ``the appointment of''.
    (b) National Credit Union Administration Board.--
            (1) In general.--Section 207(c)(8) of the Federal Credit 
        Union Act (12 U.S.C. 1787(c)(8)) is amended--
                    (A) in subparagraph (E) (as amended by section 
                2(h)), by striking ``other than paragraph (12) of this 
                subsection, subsection (b)(9)'' and inserting ``other 
                than subsections (b)(9) and (c)(10)''; and
                    (B) by adding at the end the following new 
                subparagraphs:
                    ``(F) Clarification.--No provision of law shall be 
                construed as limiting the right or power of the Board, 
                or authorizing any court or agency to limit or delay, 
                in any manner, the right or power of the Board to 
                transfer any qualified financial contract in accordance 
                with paragraphs (9) and (10) of this subsection or to 
                disaffirm or repudiate any such contract in accordance 
                with subsection (c)(1) of this section.
                    ``(G) Walkaway clauses not effective.--
                            ``(i) In general.--Notwithstanding the 
                        provisions of subparagraphs (A) and (E), and 
                        sections 403 and 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act of 1991, 
                        no walkaway clause shall be enforceable in a 
                        qualified financial contract of an insured 
                        credit union in default.
                            ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in a 
                        qualified financial contract that, after 
                        calculation of a value of a party's position or 
                        an amount due to or from 1 of the parties in 
                        accordance with its terms upon termination, 
                        liquidation, or acceleration of the qualified 
                        financial contract, either does not create a 
                        payment obligation of a party or extinguishes a 
                        payment obligation of a party in whole or in 
                        part solely because of such party's status as a 
                        nondefaulting party.''.
            (2) Technical and conforming amendment.--Section 
        207(c)(12)(A) of the Federal Credit Union Act (12 U.S.C. 
        1787(c)(12)(A)) is amended by inserting ``or the exercise of 
        rights or powers by'' after ``the appointment of''.

SEC. 5082C. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
              CONTRACTS.

    (a) FDIC-Insured Depository Institutions.--
            (1) Transfers of qualified financial contracts to financial 
        institutions.--Section 11(e)(9) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(e)(9)) is amended to read as 
        follows:
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) In general.--In making any transfer of assets 
                or liabilities of a depository institution in default 
                which includes any qualified financial contract, the 
                conservator or receiver for such depository institution 
                shall either--
                            ``(i) transfer to one financial 
                        institution, other than a financial institution 
                        for which a conservator, receiver, trustee in 
                        bankruptcy, or other legal custodian has been 
                        appointed or which is otherwise the subject of 
                        a bankruptcy or insolvency proceeding--
                                    ``(I) all qualified financial 
                                contracts between any person or any 
                                affiliate of such person and the 
                                depository institution in default;
                                    ``(II) all claims of such person or 
                                any affiliate of such person against 
                                such depository institution under any 
                                such contract (other than any claim 
                                which, under the terms of any such 
                                contract, is subordinated to the claims 
                                of general unsecured creditors of such 
                                institution);
                                    ``(III) all claims of such 
                                depository institution against such 
                                person or any affiliate of such person 
                                under any such contract; and
                                    ``(IV) all property securing or any 
                                other credit enhancement for any 
                                contract described in subclause (I) or 
                                any claim described in subclause (II) 
                                or (III) under any such contract; or
                            ``(ii) transfer none of the qualified 
                        financial contracts, claims, property or other 
                        credit enhancement referred to in clause (i) 
                        (with respect to such person and any affiliate 
                        of such person).
                    ``(B) Transfer to foreign bank, foreign financial 
                institution, or branch or agency of a foreign bank or 
                financial institution.--In transferring any qualified 
                financial contracts and related claims and property 
                under subparagraph (A)(i), the conservator or receiver 
                for the depository institution shall not make such 
                transfer to a foreign bank, financial institution 
                organized under the laws of a foreign country, or a 
                branch or agency of a foreign bank or financial 
                institution unless, under the law applicable to such 
                bank, financial institution, branch or agency, to the 
                qualified financial contracts, and to any netting 
                contract, any security agreement or arrangement or 
                other credit enhancement related to one or more 
                qualified financial contracts, the contractual rights 
                of the parties to such qualified financial contracts, 
                netting contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted under 
                this section.
                    ``(C) Transfer of contracts subject to the rules of 
                a clearing organization.--In the event that a 
                conservator or receiver transfers any qualified 
                financial contract and related claims, property, and 
                credit enhancements pursuant to subparagraph (A)(i) and 
                such contract is cleared by or subject to the rules of 
                a clearing organization, the clearing organization 
                shall not be required to accept the transferee as a 
                member by virtue of the transfer.
                    ``(D) Definitions.--For purposes of this paragraph, 
                the term `financial institution' means a broker or 
                dealer, a depository institution, a futures commission 
                merchant, or any other institution, as determined by 
                the Corporation by regulation to be a financial 
                institution, and the term `clearing organization' has 
                the same meaning as in section 402 of the Federal 
                Deposit Insurance Corporation Improvement Act of 
                1991.''.
            (2) Notice to qualified financial contract 
        counterparties.--Section 11(e)(10)(A) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(e)(10)(A)) is amended in the 
        material immediately following clause (ii) by striking ``the 
        conservator'' and all that follows through the period and 
        inserting the following: ``the conservator or receiver shall 
        notify any person who is a party to any such contract of such 
        transfer by 5:00 p.m. (eastern time) on the business day 
        following the date of the appointment of the receiver in the 
        case of a receivership, or the business day following such 
        transfer in the case of a conservatorship.''.
            (3) Rights against receiver and conservator and treatment 
        of bridge banks.--Section 11(e)(10) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(e)(10)) is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (D); and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraphs:
                    ``(B) Certain rights not enforceable.--
                            ``(i) Receivership.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right that such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(A) of this subsection or section 403 or 404 
                        of the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by reason of or 
                        incidental to the appointment of a receiver for 
                        the depository institution (or the insolvency 
                        or financial condition of the depository 
                        institution for which the receiver has been 
                        appointed)--
                                    ``(I) until 5:00 p.m. (eastern 
                                time) on the business day following the 
                                date of the appointment of the 
                                receiver; or
                                    ``(II) after the person has 
                                received notice that the contract has 
                                been transferred pursuant to paragraph 
                                (9)(A).
                            ``(ii) Conservatorship.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right that such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(E) of this subsection or section 403 or 404 
                        of the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by reason of or 
                        incidental to the appointment of a conservator 
                        for the depository institution (or the 
                        insolvency or financial condition of the 
                        depository institution for which the 
                        conservator has been appointed).
                            ``(iii) Notice.--For purposes of this 
                        paragraph, the Corporation as receiver or 
                        conservator of an insured depository 
                        institution shall be deemed to have notified a 
                        person who is a party to a qualified financial 
                        contract with such depository institution if 
                        the Corporation has taken steps reasonably 
                        calculated to provide notice to such person by 
                        the time specified in subparagraph (A).
                    ``(C) Treatment of bridge banks.--The following 
                institutions shall not be considered to be a financial 
                institution for which a conservator, receiver, trustee 
                in bankruptcy, or other legal custodian has been 
                appointed or which is otherwise the subject of a 
                bankruptcy or insolvency proceeding for purposes of 
                paragraph (9):
                            ``(i) A bridge bank.
                            ``(ii) A depository institution organized 
                        by the Corporation, for which a conservator is 
                        appointed either--
                                    ``(I) immediately upon the 
                                organization of the institution; or
                                    ``(II) at the time of a purchase 
                                and assumption transaction between the 
                                depository institution and the 
                                Corporation as receiver for a 
                                depository institution in default.''.
    (b) Insured Credit Unions.--
            (1) Transfers of qualified financial contracts to financial 
        institutions.--Section 207(c)(9) of the Federal Credit Union 
        Act (12 U.S.C. 1787(c)(9)) is amended to read as follows:
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) In general.--In making any transfer of assets 
                or liabilities of a credit union in default which 
                includes any qualified financial contract, the 
                conservator or liquidating agent for such credit union 
                shall either--
                            ``(i) transfer to 1 financial institution, 
                        other than a financial institution for which a 
                        conservator, receiver, trustee in bankruptcy, 
                        or other legal custodian has been appointed or 
                        which is otherwise the subject of a bankruptcy 
                        or insolvency proceeding--
                                    ``(I) all qualified financial 
                                contracts between any person or any 
                                affiliate of such person and the credit 
                                union in default;
                                    ``(II) all claims of such person or 
                                any affiliate of such person against 
                                such credit union under any such 
                                contract (other than any claim which, 
                                under the terms of any such contract, 
                                is subordinated to the claims of 
                                general unsecured creditors of such 
                                credit union);
                                    ``(III) all claims of such credit 
                                union against such person or any 
                                affiliate of such person under any such 
                                contract; and
                                    ``(IV) all property securing or any 
                                other credit enhancement for any 
                                contract described in subclause (I) or 
                                any claim described in subclause (II) 
                                or (III) under any such contract; or
                            ``(ii) transfer none of the qualified 
                        financial contracts, claims, property or other 
                        credit enhancement referred to in clause (i) 
                        (with respect to such person and any affiliate 
                        of such person).
                    ``(B) Transfer to foreign bank, foreign financial 
                institution, or branch or agency of a foreign bank or 
                financial institution.--In transferring any qualified 
                financial contracts and related claims and property 
                under subparagraph (A)(i), the conservator or 
                liquidating agent for the credit union shall not make 
                such transfer to a foreign bank, financial institution 
                organized under the laws of a foreign country, or a 
                branch or agency of a foreign bank or financial 
                institution unless, under the law applicable to such 
                bank, financial institution, branch or agency, to the 
                qualified financial contracts, and to any netting 
                contract, any security agreement or arrangement or 
                other credit enhancement related to 1 or more qualified 
                financial contracts, the contractual rights of the 
                parties to such qualified financial contracts, netting 
                contracts, security agreements or arrangements, or 
                other credit enhancements are enforceable substantially 
                to the same extent as permitted under this section.
                    ``(C) Transfer of contracts subject to the rules of 
                a clearing organization.--In the event that a 
                conservator or liquidating agent transfers any 
                qualified financial contract and related claims, 
                property, and credit enhancements pursuant to 
                subparagraph (A)(i) and such contract is cleared by or 
                subject to the rules of a clearing organization, the 
                clearing organization shall not be required to accept 
                the transferee as a member by virtue of the transfer.
                    ``(D) Definitions.--For purposes of this 
                paragraph--
                            ``(i) the term `financial institution' 
                        means a broker or dealer, a depository 
                        institution, a futures commission merchant, a 
                        credit union, or any other institution, as 
                        determined by the Board by regulation to be a 
                        financial institution; and
                            ``(ii) the term `clearing organization' has 
                        the same meaning as in section 402 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991.''.
            (2) Notice to qualified financial contract 
        counterparties.--Section 207(c)(10)(A) of the Federal Credit 
        Union Act (12 U.S.C. 1787(c)(10)(A)) is amended in the material 
        immediately following clause (ii) by striking ``the 
        conservator'' and all that follows through the period and 
        inserting the following: ``the conservator or liquidating agent 
        shall notify any person who is a party to any such contract of 
        such transfer by 5:00 p.m. (eastern time) on the business day 
        following the date of the appointment of the liquidating agent 
        in the case of a liquidation, or the business day following 
        such transfer in the case of a conservatorship.''.
            (3) Rights against liquidating agent and conservator and 
        treatment of bridge banks.--Section 207(c)(10) of the Federal 
        Credit Union Act (12 U.S.C. 1787(c)(10)) is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (D); and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraphs:
                    ``(B) Certain rights not enforceable.--
                            ``(i) Liquidation.--A person who is a party 
                        to a qualified financial contract with an 
                        insured credit union may not exercise any right 
                        that such person has to terminate, liquidate, 
                        or net such contract under paragraph (8)(A) of 
                        this subsection or section 403 or 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by reason of or 
                        incidental to the appointment of a liquidating 
                        agent for the credit union institution (or the 
                        insolvency or financial condition of the credit 
                        union for which the liquidating agent has been 
                        appointed)--
                                    ``(I) until 5:00 p.m. (eastern 
                                time) on the business day following the 
                                date of the appointment of the 
                                liquidating agent; or
                                    ``(II) after the person has 
                                received notice that the contract has 
                                been transferred pursuant to paragraph 
                                (9)(A).
                            ``(ii) Conservatorship.--A person who is a 
                        party to a qualified financial contract with an 
                        insured credit union may not exercise any right 
                        that such person has to terminate, liquidate, 
                        or net such contract under paragraph (8)(E) of 
                        this subsection or section 403 or 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by reason of or 
                        incidental to the appointment of a conservator 
                        for the credit union or the insolvency or 
                        financial condition of the credit union for 
                        which the conservator has been appointed).
                            ``(iii) Notice.--For purposes of this 
                        paragraph, the Board as conservator or 
                        liquidating agent of an insured credit union 
                        shall be deemed to have notified a person who 
                        is a party to a qualified financial contract 
                        with such credit union if the Board has taken 
                        steps reasonably calculated to provide notice 
                        to such person by the time specified in 
                        subparagraph (A).
                    ``(C) Treatment of bridge banks.--The following 
                institutions shall not be considered to be a financial 
                institution for which a conservator, receiver, trustee 
                in bankruptcy, or other legal custodian has been 
                appointed or which is otherwise the subject of a 
                bankruptcy or insolvency proceeding for purposes of 
                paragraph (9):
                            ``(i) A bridge bank.
                            ``(ii) A credit union organized by the 
                        Board, for which a conservator is appointed 
                        either--
                                    ``(I) immediately upon the 
                                organization of the credit union; or
                                    ``(II) at the time of a purchase 
                                and assumption transaction between the 
                                credit union and the Board as receiver 
                                for a credit union in default.''.

SEC. 5082D. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
              QUALIFIED FINANCIAL CONTRACTS.

    (a) FDIC-Insured Depository Institutions.--Section 11(e) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)) is amended--
            (1) by redesignating paragraphs (11) through (15) as 
        paragraphs (12) through (16), respectively;
            (2) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) Disaffirmance or repudiation of qualified financial 
        contracts.--In exercising the rights of disaffirmance or 
        repudiation of a conservator or receiver with respect to any 
        qualified financial contract to which an insured depository 
        institution is a party, the conservator or receiver for such 
        institution shall either--
                    ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                            ``(i) any person or any affiliate of such 
                        person; and
                            ``(ii) the depository institution in 
                        default; or
                    ``(B) disaffirm or repudiate none of the qualified 
                financial contracts referred to in subparagraph (A) 
                (with respect to such person or any affiliate of such 
                person).''; and
            (3) by adding at the end the following new paragraph:
            ``(17) Savings clause.--The meanings of terms used in this 
        subsection are applicable for purposes of this subsection only, 
        and shall not be construed or applied so as to challenge or 
        affect the characterization, definition, or treatment of any 
        similar terms under any other statute, regulation, or rule, 
        including the Gramm-Leach-Bliley Act, the Legal Certainty for 
        Bank Products Act of 2000, the securities laws (as that term is 
        defined in section 3(a)(47) of the Securities Exchange Act of 
        1934), and the Commodity Exchange Act.''.
    (b) Insured Credit Unions.--Section 207(c) of the Federal Credit 
Union Act (12 U.S.C. 1787(c)) is amended--
            (1) by redesignating paragraphs (11), (12), and (13) as 
        paragraphs (12), (13), and (14), respectively;
            (2) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) Disaffirmance or repudiation of qualified financial 
        contracts.--In exercising the rights of disaffirmance or 
        repudiation of a conservator or liquidating agent with respect 
        to any qualified financial contract to which an insured credit 
        union is a party, the conservator or liquidating agent for such 
        credit union shall either--
                    ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                            ``(i) any person or any affiliate of such 
                        person; and
                            ``(ii) the credit union in default; or
                    ``(B) disaffirm or repudiate none of the qualified 
                financial contracts referred to in subparagraph (A) 
                (with respect to such person or any affiliate of such 
                person).''; and
            (3) by adding at the end the following new paragraph:
            ``(15) Savings clause.--The meanings of terms used in this 
        subsection are applicable for purposes of this subsection only, 
        and shall not be construed or applied so as to challenge or 
        affect the characterization, definition, or treatment of any 
        similar terms under any other statute, regulation, or rule, 
        including the Gramm-Leach-Bliley Act, the Legal Certainty for 
        Bank Products Act of 2000, the securities laws (as that term is 
        defined in section (a)(47) of the Securities Exchange Act of 
        1934), and the Commodity Exchange Act.''.

SEC. 5082E. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

    (a) FDIC-Insured Depository Institutions.--Section 11(e)(8)(D)(vii) 
of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vii)) is 
amended to read as follows:
                            ``(vii) Treatment of master agreement as 
                        one agreement.--Any master agreement for any 
                        contract or agreement described in any 
                        preceding clause of this subparagraph (or any 
                        master agreement for such master agreement or 
                        agreements), together with all supplements to 
                        such master agreement, shall be treated as a 
                        single agreement and a single qualified 
                        financial contract. If a master agreement 
                        contains provisions relating to agreements or 
                        transactions that are not themselves qualified 
                        financial contracts, the master agreement shall 
                        be deemed to be a qualified financial contract 
                        only with respect to those transactions that 
                        are themselves qualified financial 
                        contracts.''.
    (b) Insured Credit Unions.--Section 207(c)(8)(D) of the Federal 
Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended by inserting 
after clause (vi) (as added by section 5082A(f) of this subchapter) the 
following new clause:
                            ``(vii) Treatment of master agreement as 
                        one agreement.--Any master agreement for any 
                        contract or agreement described in any 
                        preceding clause of this subparagraph (or any 
                        master agreement for such master agreement or 
                        agreements), together with all supplements to 
                        such master agreement, shall be treated as a 
                        single agreement and a single qualified 
                        financial contract. If a master agreement 
                        contains provisions relating to agreements or 
                        transactions that are not themselves qualified 
                        financial contracts, the master agreement shall 
                        be deemed to be a qualified financial contract 
                        only with respect to those transactions that 
                        are themselves qualified financial 
                        contracts.''.

SEC. 5082F. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 
              1991.

    (a) Definitions.--Section 402 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4402) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(ii), by inserting before 
                the semicolon ``, or is exempt from such registration 
                by order of the Securities and Exchange Commission''; 
                and
                    (B) in subparagraph (B), by inserting before the 
                period ``, that has been granted an exemption under 
                section 4(c)(1) of the Commodity Exchange Act, or that 
                is a multilateral clearing organization (as defined in 
                section 408 of this Act)'';
            (2) in paragraph (6)--
                    (A) by redesignating subparagraphs (B) through (D) 
                as subparagraphs (C) through (E), respectively;
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) an uninsured national bank or an uninsured 
                State bank that is a member of the Federal Reserve 
                System, if the national bank or State member bank is 
                not eligible to make application to become an insured 
                bank under section 5 of the Federal Deposit Insurance 
                Act;''; and
                    (C) by amending subparagraph (C) (as redesignated) 
                to read as follows:
                    ``(C) a branch or agency of a foreign bank, a 
                foreign bank and any branch or agency of the foreign 
                bank, or the foreign bank that established the branch 
                or agency, as those terms are defined in section 1(b) 
                of the International Banking Act of 1978;'';
            (3) in paragraph (11), by inserting before the period ``and 
        any other clearing organization with which such clearing 
        organization has a netting contract'';
            (4) by amending paragraph (14)(A)(i) to read as follows:
                            ``(i) means a contract or agreement between 
                        2 or more financial institutions, clearing 
                        organizations, or members that provides for 
                        netting present or future payment obligations 
                        or payment entitlements (including liquidation 
                        or close out values relating to such 
                        obligations or entitlements) among the parties 
                        to the agreement; and''; and
            (5) by adding at the end the following new paragraph:
            ``(15) Payment.--The term `payment' means a payment of 
        United States dollars, another currency, or a composite 
        currency, and a noncash delivery, including a payment or 
        delivery to liquidate an unmatured obligation.''.
    (b) Enforceability of Bilateral Netting Contracts.--Section 403 of 
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4403) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act, paragraphs (8)(E), 
(8)(F), and (10)(B) of section 207(c) of the Federal Credit Union Act, 
or any order authorized under section 5(b)(2) of the Securities 
Investor Protection Act of 1970), the covered contractual payment 
obligations and the covered contractual payment entitlements between 
any 2 financial institutions shall be netted in accordance with, and 
subject to the conditions of, the terms of any applicable netting 
contract (except as provided in section 561(b)(2) of title 11, United 
States Code).''; and
            (2) by adding at the end the following new subsection:
    ``(f) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any 2 financial institutions 
shall be enforceable in accordance with their terms (except as provided 
in section 561(b)(2) of title 11, United States Code), and shall not be 
stayed, avoided, or otherwise limited by any State or Federal law 
(other than paragraphs (8)(E), (8)(F), and (10)(B) of section 11(e) of 
the Federal Deposit Insurance Act, paragraphs (8)(E), (8)(F), and 
(10)(B) of section 207(c) of the Federal Credit Union Act, and section 
5(b)(2) of the Securities Investor Protection Act of 1970).''.
    (c) Enforceability of Clearing Organization Netting Contracts.--
Section 404 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4404) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act, paragraphs (8)(E), 
(8)(F), and (10)(B) of section 207(c) of the Federal Credit Union Act, 
and any order authorized under section 5(b)(2) of the Securities 
Investor Protection Act of 1970), the covered contractual payment 
obligations and the covered contractual payment entitlements of a 
member of a clearing organization to and from all other members of a 
clearing organization shall be netted in accordance with and subject to 
the conditions of any applicable netting contract (except as provided 
in section 561(b)(2) of title 11, United States Code).''; and
            (2) by adding at the end the following new subsection:
    ``(h) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any 2 members of a clearing 
organization shall be enforceable in accordance with their terms 
(except as provided in section 561(b)(2) of title 11, United States 
Code), and shall not be stayed, avoided, or otherwise limited by any 
State or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) 
of section 11(e) of the Federal Deposit Insurance Act, paragraphs 
(8)(E), (8)(F), and (10)(B) of section 207(c) of the Federal Credit 
Union Act, and section 5(b)(2) of the Securities Investor Protection 
Act of 1970).''.
    (d) Enforceability of Contracts With Uninsured National Banks, 
Uninsured Federal Branches and Agencies, Certain Uninsured State Member 
Banks, and Edge Act Corporations.--The Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.) is 
amended--
            (1) by redesignating section 407 as section 407A; and
            (2) by inserting after section 406 the following new 
        section:

``SEC. 407. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS, 
              UNINSURED FEDERAL BRANCHES AND AGENCIES, CERTAIN 
              UNINSURED STATE MEMBER BANKS, AND EDGE ACT CORPORATIONS.

    ``(a) In General.--Notwithstanding any other provision of law, 
paragraphs (8), (9), (10), and (11) of section 11(e) of the Federal 
Deposit Insurance Act shall apply to an uninsured national bank or 
uninsured Federal branch or Federal agency, a corporation chartered 
under section 25A of the Federal Reserve Act, or an uninsured State 
member bank which operates, or operates as, a multilateral clearing 
organization pursuant to section 409 of this Act, except that for such 
purpose--
            ``(1) any reference to the `Corporation as receiver' or 
        `the receiver or the Corporation' shall refer to the receiver 
        appointed by the Comptroller of the Currency in the case of an 
        uninsured national bank or uninsured Federal branch or agency, 
        or to the receiver appointed by the Board of Governors of the 
        Federal Reserve System in the case of a corporation chartered 
        under section 25A of the Federal Reserve Act or an uninsured 
        State member bank;
            ``(2) any reference to the `Corporation' (other than in 
        section 11(e)(8)(D) of such Act), the `Corporation, whether 
        acting as such or as conservator or receiver', a `receiver', or 
        a `conservator' shall refer to the receiver or conservator 
        appointed by the Comptroller of the Currency in the case of an 
        uninsured national bank or uninsured Federal branch or agency, 
        or to the receiver or conservator appointed by the Board of 
        Governors of the Federal Reserve System in the case of a 
        corporation chartered under section 25A of the Federal Reserve 
        Act or an uninsured State member bank; and
            ``(3) any reference to an `insured depository institution' 
        or `depository institution' shall refer to an uninsured 
        national bank, an uninsured Federal branch or Federal agency, a 
        corporation chartered under section 25A of the Federal Reserve 
        Act, or an uninsured State member bank which operates, or 
        operates as, a multilateral clearing organization pursuant to 
        section 409 of this Act.
    ``(b) Liability.--The liability of a receiver or conservator of an 
uninsured national bank, uninsured Federal branch or agency, a 
corporation chartered under section 25A of the Federal Reserve Act, or 
an uninsured State member bank which operates, or operates as, a 
multilateral clearing organization pursuant to section 409 of this Act, 
shall be determined in the same manner and subject to the same 
limitations that apply to receivers and conservators of insured 
depository institutions under section 11(e) of the Federal Deposit 
Insurance Act.
    ``(c) Regulatory Authority.--
            ``(1) In general.--The Comptroller of the Currency in the 
        case of an uninsured national bank or uninsured Federal branch 
        or agency and the Board of Governors of the Federal Reserve 
        System in the case of a corporation chartered under section 25A 
        of the Federal Reserve Act, or an uninsured State member bank 
        that operates, or operates as, a multilateral clearing 
        organization pursuant to section 409 of this Act, in 
        consultation with the Federal Deposit Insurance Corporation, 
        may each promulgate regulations solely to implement this 
        section.
            ``(2) Specific requirement.--In promulgating regulations, 
        limited solely to implementing paragraphs (8), (9), (10), and 
        (11) of section 11(e) of the Federal Deposit Insurance Act, the 
        Comptroller of the Currency and the Board of Governors of the 
        Federal Reserve System each shall ensure that the regulations 
        generally are consistent with the regulations and policies of 
        the Federal Deposit Insurance Corporation adopted pursuant to 
        the Federal Deposit Insurance Act.
    ``(d) Definitions.--For purposes of this section, the terms 
`Federal branch', `Federal agency', and `foreign bank' have the same 
meanings as in section 1(b) of the International Banking Act of 
1978.''.

SEC. 5082G. BANKRUPTCY CODE AMENDMENTS.

    (a) Definitions of Forward Contract, Repurchase Agreement, 
Securities Clearing Agency, Swap Agreement, Commodity Contract, and 
Securities Contract.--Title 11, United States Code, is amended--
            (1) in section 101--
                    (A) in paragraph (25)--
                            (i) by striking ``means a contract'' and 
                        inserting ``means--
                    ``(A) a contract'';
                            (ii) by striking ``, or any combination 
                        thereof or option thereon;'' and inserting ``, 
                        or any other similar agreement;''; and
                            (iii) by adding at the end the following:
                    ``(B) any combination of agreements or transactions 
                referred to in subparagraphs (A) and (C);
                    ``(C) any option to enter into an agreement or 
                transaction referred to in subparagraph (A) or (B);
                    ``(D) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B), or (C), together with all supplements to any 
                such master agreement, without regard to whether such 
                master agreement provides for an agreement or 
                transaction that is not a forward contract under this 
                paragraph, except that such master agreement shall be 
                considered to be a forward contract under this 
                paragraph only with respect to each agreement or 
                transaction under such master agreement that is 
                referred to in subparagraph (A), (B), or (C); or
                    ``(E) any security agreement or arrangement, or 
                other credit enhancement related to any agreement or 
                transaction referred to in subparagraph (A), (B), (C), 
                or (D), including any guarantee or reimbursement 
                obligation by or to a forward contract merchant or 
                financial participant in connection with any agreement 
                or transaction referred to in any such subparagraph, 
                but not to exceed the damages in connection with any 
                such agreement or transaction, measured in accordance 
                with section 562 of this title;'';
                    (B) in paragraph (46), by striking ``on any day 
                during the period beginning 90 days before the date 
                of'' and inserting ``at any time before'';
                    (C) by amending paragraph (47) to read as follows:
            ``(47) `repurchase agreement' (which definition also 
        applies to a reverse repurchase agreement)--
                    ``(A) means--
                            ``(i) an agreement, including related 
                        terms, which provides for the transfer of one 
                        or more certificates of deposit, mortgage 
                        related securities (as defined in section 3 of 
                        the Securities Exchange Act of 1934), mortgage 
                        loans, interests in mortgage related securities 
                        or mortgage loans, eligible bankers' 
                        acceptances, qualified foreign government 
                        securities (defined as a security that is a 
                        direct obligation of, or that is fully 
                        guaranteed by, the central government of a 
                        member of the Organization for Economic 
                        Cooperation and Development), or securities 
                        that are direct obligations of, or that are 
                        fully guaranteed by, the United States or any 
                        agency of the United States against the 
                        transfer of funds by the transferee of such 
                        certificates of deposit, eligible bankers' 
                        acceptances, securities, mortgage loans, or 
                        interests, with a simultaneous agreement by 
                        such transferee to transfer to the transferor 
                        thereof certificates of deposit, eligible 
                        bankers' acceptance, securities, mortgage 
                        loans, or interests of the kind described in 
                        this clause, at a date certain not later than 1 
                        year after such transfer or on demand, against 
                        the transfer of funds;
                            ``(ii) any combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (iii);
                            ``(iii) an option to enter into an 
                        agreement or transaction referred to in clause 
                        (i) or (ii);
                            ``(iv) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clause (i), (ii), or (iii), together with all 
                        supplements to any such master agreement, 
                        without regard to whether such master agreement 
                        provides for an agreement or transaction that 
                        is not a repurchase agreement under this 
                        paragraph, except that such master agreement 
                        shall be considered to be a repurchase 
                        agreement under this paragraph only with 
                        respect to each agreement or transaction under 
                        the master agreement that is referred to in 
                        clause (i), (ii), or (iii); or
                            ``(v) any security agreement or arrangement 
                        or other credit enhancement related to any 
                        agreement or transaction referred to in clause 
                        (i), (ii), (iii), or (iv), including any 
                        guarantee or reimbursement obligation by or to 
                        a repo participant or financial participant in 
                        connection with any agreement or transaction 
                        referred to in any such clause, but not to 
                        exceed the damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this title; and
                    ``(B) does not include a repurchase obligation 
                under a participation in a commercial mortgage loan;'';
                    (D) in paragraph (48), by inserting ``, or exempt 
                from such registration under such section pursuant to 
                an order of the Securities and Exchange Commission,'' 
                after ``1934''; and
                    (E) by amending paragraph (53B) to read as follows:
            ``(53B) `swap agreement'--
                    ``(A) means--
                            ``(i) any agreement, including the terms 
                        and conditions incorporated by reference in 
                        such agreement, which is--
                                    ``(I) an interest rate swap, 
                                option, future, or forward agreement, 
                                including a rate floor, rate cap, rate 
                                collar, cross-currency rate swap, and 
                                basis swap;
                                    ``(II) a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement;
                                    ``(III) a currency swap, option, 
                                future, or forward agreement;
                                    ``(IV) an equity index or equity 
                                swap, option, future, or forward 
                                agreement;
                                    ``(V) a debt index or debt swap, 
                                option, future, or forward agreement;
                                    ``(VI) a total return, credit 
                                spread or credit swap, option, future, 
                                or forward agreement;
                                    ``(VII) a commodity index or a 
                                commodity swap, option, future, or 
                                forward agreement; or
                                    ``(VIII) a weather swap, weather 
                                derivative, or weather option;
                            ``(ii) any agreement or transaction that is 
                        similar to any other agreement or transaction 
                        referred to in this paragraph and that--
                                    ``(I) is of a type that has been, 
                                is presently, or in the future becomes, 
                                the subject of recurrent dealings in 
                                the swap markets (including terms and 
                                conditions incorporated by reference 
                                therein); and
                                    ``(II) is a forward, swap, future, 
                                or option on one or more rates, 
                                currencies, commodities, equity 
                                securities, or other equity 
                                instruments, debt securities or other 
                                debt instruments, quantitative measures 
                                associated with an occurrence, extent 
                                of an occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic consequence, or 
                                economic or financial indices or 
                                measures of economic or financial risk 
                                or value;
                            ``(iii) any combination of agreements or 
                        transactions referred to in this subparagraph;
                            ``(iv) any option to enter into an 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(v) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clause (i), (ii), (iii), or (iv), together with 
                        all supplements to any such master agreement, 
                        and without regard to whether the master 
                        agreement contains an agreement or transaction 
                        that is not a swap agreement under this 
                        paragraph, except that the master agreement 
                        shall be considered to be a swap agreement 
                        under this paragraph only with respect to each 
                        agreement or transaction under the master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), or (iv); or
                            ``(vi) any security agreement or 
                        arrangement or other credit enhancement related 
                        to any agreements or transactions referred to 
                        in clause (i) through (v), including any 
                        guarantee or reimbursement obligation by or to 
                        a swap participant or financial participant in 
                        connection with any agreement or transaction 
                        referred to in any such clause, but not to 
                        exceed the damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this title; and
                    ``(B) is applicable for purposes of this title 
                only, and shall not be construed or applied so as to 
                challenge or affect the characterization, definition, 
                or treatment of any swap agreement under any other 
                statute, regulation, or rule, including the Securities 
                Act of 1933, the Securities Exchange Act of 1934, the 
                Public Utility Holding Company Act of 1935, the Trust 
                Indenture Act of 1939, the Investment Company Act of 
                1940, the Investment Advisers Act of 1940, the 
                Securities Investor Protection Act of 1970, the 
                Commodity Exchange Act, the Gramm-Leach-Bliley Act, and 
                the Legal Certainty for Bank Products Act of 2000;'';
            (2) in section 741(7), by striking paragraph (7) and 
        inserting the following:
            ``(7) `securities contract'--
                    ``(A) means--
                            ``(i) a contract for the purchase, sale, or 
                        loan of a security, a certificate of deposit, a 
                        mortgage loan or any interest in a mortgage 
                        loan, a group or index of securities, 
                        certificates of deposit, or mortgage loans or 
                        interests therein (including an interest 
                        therein or based on the value thereof), or 
                        option on any of the foregoing, including an 
                        option to purchase or sell any such security, 
                        certificate of deposit, mortgage loan, 
                        interest, group or index, or option, and 
                        including any repurchase or reverse repurchase 
                        transaction on any such security, certificate 
                        of deposit, mortgage loan, interest, group or 
                        index, or option;
                            ``(ii) any option entered into on a 
                        national securities exchange relating to 
                        foreign currencies;
                            ``(iii) the guarantee by or to any 
                        securities clearing agency of a settlement of 
                        cash, securities, certificates of deposit, 
                        mortgage loans or interests therein, group or 
                        index of securities, or mortgage loans or 
                        interests therein (including any interest 
                        therein or based on the value thereof), or 
                        option on any of the foregoing, including an 
                        option to purchase or sell any such security, 
                        certificate of deposit, mortgage loan, 
                        interest, group or index, or option;
                            ``(iv) any margin loan;
                            ``(v) any other agreement or transaction 
                        that is similar to an agreement or transaction 
                        referred to in this subparagraph;
                            ``(vi) any combination of the agreements or 
                        transactions referred to in this subparagraph;
                            ``(vii) any option to enter into any 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(viii) a master agreement that provides 
                        for an agreement or transaction referred to in 
                        clause (i), (ii), (iii), (iv), (v), (vi), or 
                        (vii), together with all supplements to any 
                        such master agreement, without regard to 
                        whether the master agreement provides for an 
                        agreement or transaction that is not a 
                        securities contract under this subparagraph, 
                        except that such master agreement shall be 
                        considered to be a securities contract under 
                        this subparagraph only with respect to each 
                        agreement or transaction under such master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), (iv), (v), (vi), or (vii); or
                            ``(ix) any security agreement or 
                        arrangement or other credit enhancement related 
                        to any agreement or transaction referred to in 
                        this subparagraph, including any guarantee or 
                        reimbursement obligation by or to a 
                        stockbroker, securities clearing agency, 
                        financial institution, or financial participant 
                        in connection with any agreement or transaction 
                        referred to in this subparagraph, but not to 
                        exceed the damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this title; and
                    ``(B) does not include any purchase, sale, or 
                repurchase obligation under a participation in a 
                commercial mortgage loan;''; and
            (3) in section 761(4)--
                    (A) by striking ``or'' at the end of subparagraph 
                (D); and
                    (B) by adding at the end the following:
                    ``(F) any other agreement or transaction that is 
                similar to an agreement or transaction referred to in 
                this paragraph;
                    ``(G) any combination of the agreements or 
                transactions referred to in this paragraph;
                    ``(H) any option to enter into an agreement or 
                transaction referred to in this paragraph;
                    ``(I) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B), (C), (D), (E), (F), (G), or (H), together 
                with all supplements to such master agreement, without 
                regard to whether the master agreement provides for an 
                agreement or transaction that is not a commodity 
                contract under this paragraph, except that the master 
                agreement shall be considered to be a commodity 
                contract under this paragraph only with respect to each 
                agreement or transaction under the master agreement 
                that is referred to in subparagraph (A), (B), (C), (D), 
                (E), (F), (G), or (H); or
                    ``(J) any security agreement or arrangement or 
                other credit enhancement related to any agreement or 
                transaction referred to in this paragraph, including 
                any guarantee or reimbursement obligation by or to a 
                commodity broker or financial participant in connection 
                with any agreement or transaction referred to in this 
                paragraph, but not to exceed the damages in connection 
                with any such agreement or transaction, measured in 
                accordance with section 562 of this title;''.
    (b) Definitions of Financial Institution, Financial Participant, 
and Forward Contract Merchant.--Section 101 of title 11, United States 
Code, is amended--
            (1) by striking paragraph (22) and inserting the following:
            ``(22) `financial institution' means--
                    ``(A) a Federal reserve bank, or an entity 
                (domestic or foreign) that is a commercial or savings 
                bank, industrial savings bank, savings and loan 
                association, trust company, federally-insured credit 
                union, or receiver or conservator for such entity and, 
                when any such Federal reserve bank, receiver, 
                conservator or entity is acting as agent or custodian 
                for a customer in connection with a securities contract 
                (as defined in section 741) such customer; or
                    ``(B) in connection with a securities contract (as 
                defined in section 741) an investment company 
                registered under the Investment Company Act of 1940;'';
            (2) by inserting after paragraph (22) the following:
            ``(22A) `financial participant' means--
                    ``(A) an entity that, at the time it enters into a 
                securities contract, commodity contract, swap 
                agreement, repurchase agreement, or forward contract, 
                or at the time of the filing of the petition, has one 
                or more agreements or transactions described in 
                paragraph (1), (2), (3), (4), (5), or (6) of section 
                561(a) with the debtor or any other entity (other than 
                an affiliate) of a total gross dollar value of not less 
                than $1,000,000,000 in notional or actual principal 
                amount outstanding on any day during the previous 15-
                month period, or has gross mark-to-market positions of 
                not less than $100,000,000 (aggregated across 
                counterparties) in one or more such agreements or 
                transactions with the debtor or any other entity (other 
                than an affiliate) on any day during the previous 15-
                month period; or
                    ``(B) a clearing organization (as defined in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991);''; and
            (3) by striking paragraph (26) and inserting the following:
            ``(26) `forward contract merchant' means a Federal reserve 
        bank, or an entity the business of which consists in whole or 
        in part of entering into forward contracts as or with merchants 
        in a commodity (as defined in section 761) or any similar good, 
        article, service, right, or interest which is presently or in 
        the future becomes the subject of dealing in the forward 
        contract trade;''.
    (c) Definition of Master Netting Agreement and Master Netting 
Agreement Participant.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (38) the following new paragraphs:
            ``(38A) `master netting agreement'--
                    ``(A) means an agreement providing for the exercise 
                of rights, including rights of netting, setoff, 
                liquidation, termination, acceleration, or close out, 
                under or in connection with one or more contracts that 
                are described in any one or more of paragraphs (1) 
                through (5) of section 561(a), or any security 
                agreement or arrangement or other credit enhancement 
                related to one or more of the foregoing, including any 
                guarantee or reimbursement obligation related to 1 or 
                more of the foregoing; and
                    ``(B) if the agreement contains provisions relating 
                to agreements or transactions that are not contracts 
                described in paragraphs (1) through (5) of section 
                561(a), shall be deemed to be a master netting 
                agreement only with respect to those agreements or 
                transactions that are described in any one or more of 
                paragraphs (1) through (5) of section 561(a);
            ``(38B) `master netting agreement participant' means an 
        entity that, at any time before the filing of the petition, is 
        a party to an outstanding master netting agreement with the 
        debtor;''.
    (d) Swap Agreements, Securities Contracts, Commodity Contracts, 
Forward Contracts, Repurchase Agreements, and Master Netting Agreements 
Under the Automatic-stay.--
            (1) In general.--Section 362(b) of title 11, United States 
        Code, is amended--
                    (A) in paragraph (6), by inserting ``, pledged to, 
                under the control of,'' after ``held by'';
                    (B) in paragraph (7), by inserting ``, pledged to, 
                under the control of,'' after ``held by'';
                    (C) by striking paragraph (17) and inserting the 
                following:
            ``(17) under subsection (a), of the setoff by a swap 
        participant or financial participant of a mutual debt and claim 
        under or in connection with one or more swap agreements that 
        constitutes the setoff of a claim against the debtor for any 
        payment or other transfer of property due from the debtor under 
        or in connection with any swap agreement against any payment 
        due to the debtor from the swap participant or financial 
        participant under or in connection with any swap agreement or 
        against cash, securities, or other property held by, pledged 
        to, under the control of, or due from such swap participant or 
        financial participant to margin, guarantee, secure, or settle 
        any swap agreement;'';
                    (D) in paragraph (18) by striking the period at the 
                end and inserting
                ``; or''; and
                    (E) by inserting after paragraph (18) the following 
                new paragraph:
            ``(19) under subsection (a), of the setoff by a master 
        netting agreement participant of a mutual debt and claim under 
        or in connection with one or more master netting agreements or 
        any contract or agreement subject to such agreements that 
        constitutes the setoff of a claim against the debtor for any 
        payment or other transfer of property due from the debtor under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements against any payment due to 
        the debtor from such master netting agreement participant under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements or against cash, 
        securities, or other property held by, pledged to, under the 
        control of, or due from such master netting agreement 
        participant to margin, guarantee, secure, or settle such 
        agreements or any contract or agreement subject to such 
        agreements, to the extent that such participant is eligible to 
        exercise such offset rights under paragraph (6), (7), or (17) 
        for each individual contract covered by the master netting 
        agreement in issue.''.
            (2) Limitation.--Section 362 of title 11, United States 
        Code, is amended by adding at the end the following:
    ``(i) The exercise of rights not subject to the stay arising under 
subsection (a) pursuant to paragraph (6), (7), (17), or (19) of 
subsection (b) shall not be stayed by any order of a court or 
administrative agency in any proceeding under this title.''.
    (e) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, is amended--
            (1) in subsection (g) (as added by section 103 of Public 
        Law 101-311)--
                    (A) by striking ``under a swap agreement'';
                    (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in connection with 
                any swap agreement''; and
                    (C) by inserting ``or financial participant'' after 
                ``swap participant'' each place such term appears; and
            (2) by adding at the end the following:
    ``(i) Notwithstanding sections 544, 545, 547, 548(a)(1)(B), and 
548(b) the trustee may not avoid a transfer made by or to a master 
netting agreement participant under or in connection with any master 
netting agreement or any individual contract covered thereby that is 
made before the commencement of the case, except under section 
548(a)(1)(A) and except to the extent that the trustee could otherwise 
avoid such a transfer made under an individual contract covered by such 
master netting agreement.''.
    (f) Fraudulent Transfers of Master Netting Agreements.--Section 
548(d)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) a master netting agreement participant that receives 
        a transfer in connection with a master netting agreement or any 
        individual contract covered thereby takes for value to the 
        extent of such transfer, except that, with respect to a 
        transfer under any individual contract covered thereby, to the 
        extent that such master netting agreement participant otherwise 
        did not take (or is otherwise not deemed to have taken) such 
        transfer for value.''.
    (g) Termination or Acceleration of Securities Contracts.--Section 
555 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 555. Contractual right to liquidate, terminate, or accelerate a 
              securities contract'';
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (h) Termination or Acceleration of Commodities or Forward 
Contracts.--Section 556 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 556. Contractual right to liquidate, terminate, or accelerate a 
              commodities contract or forward contract'';
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''; and
            (3) in the second sentence, by striking ``As used'' and all 
        that follows through ``right,'' and inserting ``As used in this 
        section, the term `contractual right' includes a right set 
        forth in a rule or bylaw of a derivatives clearing organization 
        (as defined in the Commodity Exchange Act), a multilateral 
        clearing organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a national 
        securities exchange, a national securities association, a 
        securities clearing agency, a contract market designated under 
        the Commodity Exchange Act, a derivatives transaction execution 
        facility registered under the Commodity Exchange Act, or a 
        board of trade (as defined in the Commodity Exchange Act) or in 
        a resolution of the governing board thereof and a right,''.
    (i) Termination or Acceleration of Repurchase Agreements.--Section 
559 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 559. Contractual right to liquidate, terminate, or accelerate a 
              repurchase agreement'';
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''; and
            (3) in the third sentence, by striking ``As used'' and all 
        that follows through ``right,'' and inserting ``As used in this 
        section, the term `contractual right' includes a right set 
        forth in a rule or bylaw of a derivatives clearing organization 
        (as defined in the Commodity Exchange Act), a multilateral 
        clearing organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a national 
        securities exchange, a national securities association, a 
        securities clearing agency, a contract market designated under 
        the Commodity Exchange Act, a derivatives transaction execution 
        facility registered under the Commodity Exchange Act, or a 
        board of trade (as defined in the Commodity Exchange Act) or in 
        a resolution of the governing board thereof and a right,''.
    (j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 560. Contractual right to liquidate, terminate, or accelerate a 
              swap agreement'';
            (2) in the first sentence, by striking ``termination of a 
        swap agreement'' and inserting ``liquidation, termination, or 
        acceleration of one or more swap agreements'';
            (3) by striking ``in connection with any swap agreement'' 
        and inserting ``in connection with the termination, 
        liquidation, or acceleration of one or more swap agreements''; 
        and
            (4) in the second sentence, by striking ``As used'' and all 
        that follows through ``right,'' and inserting ``As used in this 
        section, the term `contractual right' includes a right set 
        forth in a rule or bylaw of a derivatives clearing organization 
        (as defined in the Commodity Exchange Act), a multilateral 
        clearing organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a national 
        securities exchange, a national securities association, a 
        securities clearing agency, a contract market designated under 
        the Commodity Exchange Act, a derivatives transaction execution 
        facility registered under the Commodity Exchange Act, or a 
        board of trade (as defined in the Commodity Exchange Act) or in 
        a resolution of the governing board thereof and a right,''.
    (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--
            (1) In general.--Title 11, United States Code, is amended 
        by inserting after section 560 the following:
``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
              offset under a master netting agreement and across 
              contracts; proceedings under section 304
    ``(a) Subject to subsection (b), the exercise of any contractual 
right, because of a condition of the kind specified in section 
365(e)(1), to cause the termination, liquidation, or acceleration of or 
to offset or net termination values, payment amounts, or other transfer 
obligations arising under or in connection with one or more (or the 
termination, liquidation, or acceleration of one or more)--
            ``(1) securities contracts, as defined in section 741(7);
            ``(2) commodity contracts, as defined in section 761(4);
            ``(3) forward contracts;
            ``(4) repurchase agreements;
            ``(5) swap agreements; or
            ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of any 
provision of this title or by any order of a court or administrative 
agency in any proceeding under this title.
    ``(b)(1) A party may exercise a contractual right described in 
subsection (a) to terminate, liquidate, or accelerate only to the 
extent that such party could exercise such a right under section 555, 
556, 559, or 560 for each individual contract covered by the master 
netting agreement in issue.
    ``(2) If a debtor is a commodity broker subject to subchapter IV of 
chapter 7--
            ``(A) a party may not net or offset an obligation to the 
        debtor arising under, or in connection with, a commodity 
        contract traded on or subject to the rules of a contract market 
        designated under the Commodity Exchange Act or a derivatives 
        transaction execution facility registered under the Commodity 
        Exchange Act against any claim arising under, or in connection 
        with, other instruments, contracts, or agreements listed in 
        subsection (a) except to the extent that the party has positive 
        net equity in the commodity accounts at the debtor, as 
        calculated under such subchapter; and
            ``(B) another commodity broker may not net or offset an 
        obligation to the debtor arising under, or in connection with, 
        a commodity contract entered into or held on behalf of a 
        customer of the debtor and traded on or subject to the rules of 
        a contract market designated under the Commodity Exchange Act 
        or a derivatives transaction execution facility registered 
        under the Commodity Exchange Act against any claim arising 
        under, or in connection with, other instruments, contracts, or 
        agreements listed in subsection (a).
    ``(3) No provision of subparagraph (A) or (B) of paragraph (2) 
shall prohibit the offset of claims and obligations that arise under--
            ``(A) a cross-margining agreement or similar arrangement 
        that has been approved by the Commodity Futures Trading 
        Commission or submitted to the Commodity Futures Trading 
        Commission under paragraph (1) or (2) of section 5c(c) of the 
        Commodity Exchange Act and has not been abrogated or rendered 
        ineffective by the Commodity Futures Trading Commission; or
            ``(B) any other netting agreement between a clearing 
        organization (as defined in section 761) and another entity 
        that has been approved by the Commodity Futures Trading 
        Commission.
    ``(c) As used in this section, the term `contractual right' 
includes a right set forth in a rule or bylaw of a derivatives clearing 
organization (as defined in the Commodity Exchange Act), a multilateral 
clearing organization (as defined in the Federal Deposit Insurance 
Corporation Improvement Act of 1991), a national securities exchange, a 
national securities association, a securities clearing agency, a 
contract market designated under the Commodity Exchange Act, a 
derivatives transaction execution facility registered under the 
Commodity Exchange Act, or a board of trade (as defined in the 
Commodity Exchange Act) or in a resolution of the governing board 
thereof, and a right, whether or not evidenced in writing, arising 
under common law, under law merchant, or by reason of normal business 
practice.
    ``(d) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall apply 
in a case under section 304, so that enforcement of contractual 
provisions of such contracts and agreements in accordance with their 
terms will not be stayed or otherwise limited by operation of any 
provision of this title or by order of a court in any case under this 
title, and to limit avoidance powers to the same extent as in a 
proceeding under chapter 7 or 11 of this title (such enforcement not to 
be limited based on the presence or absence of assets of the debtor in 
the United States).''.
            (2) Conforming amendment.--The table of sections for 
        chapter 5 of title 11, United States Code, is amended by 
        inserting after the item relating to section 560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
                            under a master netting agreement and across 
                            contracts; proceedings under section 
                            304.''.
    (l) Commodity Broker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 766 the following:
``Sec. 767. Commodity broker liquidation and forward contract 
              merchants, commodity brokers, stockbrokers, financial 
              institutions, financial participants, securities clearing 
              agencies, swap participants, repo participants, and 
              master netting agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, financial participant, securities 
clearing agency, swap participant, repo participant, or master netting 
agreement participant under this title shall not affect the priority of 
any unsecured claim it may have after the exercise of such rights.''.
    (m) Stockbroker Liquidations.--Title 11, United States Code, is 
amended by inserting after section 752 the following:
``Sec. 753. Stockbroker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              financial participants, securities clearing agencies, 
              swap participants, repo participants, and master netting 
              agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, financial participant, or master netting 
agreement participant under this title shall not affect the priority of 
any unsecured claim it may have after the exercise of such rights.''.
    (n) Setoff.--Section 553 of title 11, United States Code, is 
amended--
            (1) in subsection (a)(2)(B)(ii), by inserting before the 
        semicolon the following: ``(except for a setoff of a kind 
        described in section 362(b)(6), 362(b)(7), 362(b)(17), 
        362(b)(19), 555, 556, 559, 560, or 561)'';
            (2) in subsection (a)(3)(C), by inserting before the period 
        the following: ``(except for a setoff of a kind described in 
        section 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(19), 555, 556, 
        559, 560, or 561 of this title)''; and
            (3) in subsection (b)(1), by striking ``362(b)(14),'' and 
        inserting ``362(b)(17), 362(b)(19), 555, 556, 559, 560, 561,''.
    (o) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
            (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and inserting 
        ``financial institution, financial participant,'';
            (2) in sections 362(b)(7) and 546(f), by inserting ``or 
        financial participant'' after ``repo participant'' each place 
        such term appears;
            (3) in section 546(e), by inserting ``financial 
        participant,'' after ``financial institution,'';
            (4) in section 548(d)(2)(B), by inserting ``financial 
        participant,'' after ``financial institution,'';
            (5) in section 548(d)(2)(C), by inserting ``or financial 
        participant'' after ``repo participant'';
            (6) in section 548(d)(2)(D), by inserting ``or financial 
        participant'' after ``swap participant'';
            (7) in section 555--
                    (A) by inserting ``financial participant,'' after 
                ``financial institution,''; and
                    (B) by striking the second sentence and inserting 
                the following: ``As used in this section, the term 
                `contractual right' includes a right set forth in a 
                rule or bylaw of a derivatives clearing organization 
                (as defined in the Commodity Exchange Act), a 
                multilateral clearing organization (as defined in the 
                Federal Deposit Insurance Corporation Improvement Act 
                of 1991), a national securities exchange, a national 
                securities association, a securities clearing agency, a 
                contract market designated under the Commodity Exchange 
                Act, a derivatives transaction execution facility 
                registered under the Commodity Exchange Act, or a board 
                of trade (as defined in the Commodity Exchange Act), or 
                in a resolution of the governing board thereof, and a 
                right, whether or not in writing, arising under common 
                law, under law merchant, or by reason of normal 
                business practice'';
            (8) in section 556, by inserting ``, financial 
        participant,'' after ``commodity broker'';
            (9) in section 559, by inserting ``or financial 
        participant'' after ``repo participant'' each place such term 
        appears; and
            (10) in section 560, by inserting ``or financial 
        participant'' after ``swap participant''.
    (p) Conforming Amendments.--Title 11, United States Code, is 
amended--
            (1) in the table of sections for chapter 5--
                    (A) by amending the items relating to sections 555 
                and 556 to read as follows:

``555. Contractual right to liquidate, terminate, or accelerate a 
                            securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
                            commodities contract or forward 
                            contract.'';
                and
                    (B) by amending the items relating to sections 559 
                and 560 to read as follows:

``559. Contractual right to liquidate, terminate, or accelerate a 
                            repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
                            agreement.'';
                and
            (2) in the table of sections for chapter 7--
                    (A) by inserting after the item relating to section 
                766 the following:

``767. Commodity broker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, financial participants, 
                            securities clearing agencies, swap 
                            participants, repo participants, and master 
                            netting agreement participants.'';
                and
                    (B) by inserting after the item relating to section 
                752 the following:

``753. Stockbroker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, financial participants, 
                            securities clearing agencies, swap 
                            participants, repo participants, and master 
                            netting agreement participants.''.

SEC. 5082H. RECORDKEEPING REQUIREMENTS.

    (a) FDIC-Insured Depository Institutions.--Section 11(e)(8) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is amended by 
adding at the end the following new subparagraph:
                    ``(H) Recordkeeping requirements.--The Corporation, 
                in consultation with the appropriate Federal banking 
                agencies and the National Credit Union Administration 
                Board, may prescribe regulations requiring more 
                detailed recordkeeping by any insured depository 
                institution with respect to qualified financial 
                contracts (including market valuations) only if such 
                insured depository institution is in a troubled 
                condition (as such term is defined by the Corporation 
                pursuant to section 32).''.
    (b) Insured Credit Unions.--Section 207(c)(8) of the Federal Credit 
Union Act (12 U.S.C. 1787(c)(8)) is amended by adding at the end the 
following new subparagraph:
                    ``(H) Recordkeeping requirements.--The Board, in 
                consultation with the appropriate Federal banking 
                agencies, may prescribe regulations requiring more 
                detailed recordkeeping by any insured credit union with 
                respect to qualified financial contracts (including 
                market valuations) only if such insured credit union is 
                in a troubled condition (as such term is defined by the 
                Board pursuant to section 212).''.

SEC. 5082I. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.

    Section 13(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)(2)) is amended to read as follows:
            ``(2) Exemptions from contemporaneous execution 
        requirement.--An agreement to provide for the lawful 
        collateralization of--
                    ``(A) deposits of, or other credit extension by, a 
                Federal, State, or local governmental entity, or of any 
                depositor referred to in section 11(a)(2), including an 
                agreement to provide collateral in lieu of a surety 
                bond;
                    ``(B) bankruptcy estate funds pursuant to section 
                345(b)(2) of title 11, United States Code;
                    ``(C) extensions of credit, including any 
                overdraft, from a Federal reserve bank or Federal home 
                loan bank; or
                    ``(D) one or more qualified financial contracts, as 
                defined in section 11(e)(8)(D),
        shall not be deemed invalid pursuant to paragraph (1)(B) solely 
        because such agreement was not executed contemporaneously with 
        the acquisition of the collateral or because of pledges, 
        delivery, or substitution of the collateral made in accordance 
        with such agreement.''.

SEC. 5082J. DAMAGE MEASURE.

    (a) In General.--Title 11, United States Code, is amended--
            (1) by inserting after section 561, as added by section 
        5082G(k)(1) of this subchapter, the following:
``Sec. 562. Timing of damage measurement in connection with swap 
              agreements, securities contracts, forward contracts, 
              commodity contracts, repurchase agreements, and master 
              netting agreements
    ``(a) If the trustee rejects a swap agreement, securities contract 
(as defined in section 741), forward contract, commodity contract (as 
defined in section 761), repurchase agreement, or master netting 
agreement pursuant to section 365(a), or if a forward contract 
merchant, stockbroker, financial institution, securities clearing 
agency, repo participant, financial participant, master netting 
agreement participant, or swap participant liquidates, terminates, or 
accelerates such contract or agreement, damages shall be measured as of 
the earlier of--
            ``(1) the date of such rejection; or
            ``(2) the date or dates of such liquidation, termination, 
        or acceleration.
    ``(b) If there are not any commercially reasonable determinants of 
value as of any date referred to in paragraph (1) or (2) of subsection 
(a), damages shall be measured as of the earliest subsequent date or 
dates on which there are commercially reasonable determinants of value.
    ``(c) For the purposes of subsection (b), if damages are not 
measured as of the date or dates of rejection, liquidation, 
termination, or acceleration, and the forward contract merchant, 
stockbroker, financial institution, securities clearing agency, repo 
participant, financial participant, master netting agreement 
participant, or swap participant or the trustee objects to the timing 
of the measurement of damages--
            ``(1) the trustee, in the case of an objection by a forward 
        contract merchant, stockbroker, financial institution, 
        securities clearing agency, repo participant, financial 
        participant, master netting agreement participant, or swap 
        participant; or
            ``(2) the forward contract merchant, stockbroker, financial 
        institution, securities clearing agency, repo participant, 
        financial participant, master netting agreement participant, or 
        swap participant, in the case of an objection by the trustee,
has the burden of proving that there were no commercially reasonable 
determinants of value as of such date or dates.''; and
            (2) in the table of sections for chapter 5, by inserting 
        after the item relating to section 561 (as added by section 
        5082G(k)(2) of this subchapter) the following new item:

``562. Timing of damage measure in connection with swap agreements, 
                            securities contracts, forward contracts, 
                            commodity contracts, repurchase agreements, 
                            or master netting agreements.''.
    (b) Claims Arising From Rejection.--Section 502(g) of title 11, 
United States Code, is amended--
            (1) by inserting ``(1)'' after ``(g)''; and
            (2) by adding at the end the following:
    ``(2) A claim for damages calculated in accordance with section 562 
of this title shall be allowed under subsection (a), (b), or (c), or 
disallowed under subsection (d) or (e), as if such claim had arisen 
before the date of the filing of the petition.''.

SEC. 5082K. SIPC STAY.

    Section 5(b)(2) of the Securities Investor Protection Act of 1970 
(15 U.S.C. 78eee(b)(2)) is amended by adding at the end the following 
new subparagraph:
                    ``(C) Exception from stay.--
                            ``(i) Notwithstanding section 362 of title 
                        11, United States Code, neither the filing of 
                        an application under subsection (a)(3) nor any 
                        order or decree obtained by SIPC from the court 
                        shall operate as a stay of any contractual 
                        rights of a creditor to liquidate, terminate, 
                        or accelerate a securities contract, commodity 
                        contract, forward contract, repurchase 
                        agreement, swap agreement, or master netting 
                        agreement, as those terms are defined in 
                        sections 101, 741, and 761 of title 11, United 
                        States Code, to offset or net termination 
                        values, payment amounts, or other transfer 
                        obligations arising under or in connection with 
                        one or more of such contracts or agreements, or 
                        to foreclose on any cash collateral pledged by 
                        the debtor, whether or not with respect to one 
                        or more of such contracts or agreements.
                            ``(ii) Notwithstanding clause (i), such 
                        application, order, or decree may operate as a 
                        stay of the foreclosure on, or disposition of, 
                        securities collateral pledged by the debtor, 
                        whether or not with respect to one or more of 
                        such contracts or agreements, securities sold 
                        by the debtor under a repurchase agreement, or 
                        securities lent under a securities lending 
                        agreement.
                            ``(iii) As used in this subparagraph, the 
                        term `contractual right' includes a right set 
                        forth in a rule or bylaw of a national 
                        securities exchange, a national securities 
                        association, or a securities clearing agency, a 
                        right set forth in a bylaw of a clearing 
                        organization or contract market or in a 
                        resolution of the governing board thereof, and 
                        a right, whether or not in writing, arising 
                        under common law, under law merchant, or by 
                        reason of normal business practice.''.

SEC. 5082L. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

    Section 901(a) of title 11, United States Code, is amended--
            (1) by inserting ``555, 556,'' after ``553,''; and
            (2) by inserting ``559, 560, 561, 562'' after ``557,''.

SEC. 5082M. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--This subchapter shall take effect on the date 
of enactment of this Act.
    (b) Application of Amendments.--The amendments made by this 
subchapter shall apply with respect to cases commenced or appointments 
made under any Federal or State law on or after the date of enactment 
of this Act, but shall not apply with respect to cases commenced or 
appointments made under any Federal or State law before the date of 
enactment of this Act.

SEC. 5082N. SAVINGS CLAUSE.

    The meanings of terms used in this subchapter are applicable for 
purposes of this subchapter only, and shall not be construed or applied 
so as to challenge or affect the characterization, definition, or 
treatment of any similar terms under any other statute, regulation, or 
rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for 
Bank Products Act of 2000, the securities laws (as that term is defined 
in section 3(a)(47) of the Securities Exchange Act of 1934), and the 
Commodity Exchange Act.

              Subchapter B--Emergency Securities Response

SEC. 5086. SHORT TITLE.

    This subchapter may be cited as the ``Emergency Securities Response 
Act of 2004''.

SEC. 5087. EXTENSION OF EMERGENCY ORDER AUTHORITY OF THE SECURITIES AND 
              EXCHANGE COMMISSION.

    (a) Extension of Authority.--Paragraph (2) of section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(2)) is amended to 
read as follows:
            ``(2) Emergency.--(A) The Commission, in an emergency, may 
        by order summarily take such action to alter, supplement, 
        suspend, or impose requirements or restrictions with respect to 
        any matter or action subject to regulation by the Commission or 
        a self-regulatory organization under the securities laws, as 
        the Commission determines is necessary in the public interest 
        and for the protection of investors--
                    ``(i) to maintain or restore fair and orderly 
                securities markets (other than markets in exempted 
                securities);
                    ``(ii) to ensure prompt, accurate, and safe 
                clearance and settlement of transactions in securities 
                (other than exempted securities); or
                    ``(iii) to reduce, eliminate, or prevent the 
                substantial disruption by the emergency of (I) 
                securities markets (other than markets in exempted 
                securities), investment companies, or any other 
                significant portion or segment of such markets, or (II) 
                the transmission or processing of securities 
                transactions (other than transactions in exempted 
                securities).
            ``(B) An order of the Commission under this paragraph (2) 
        shall continue in effect for the period specified by the 
        Commission, and may be extended. Except as provided in 
        subparagraph (C), the Commission's action may not continue in 
        effect for more than 30 business days, including extensions.
            ``(C) An order of the Commission under this paragraph (2) 
        may be extended to continue in effect for more than 30 business 
        days if, at the time of the extension, the Commission finds 
        that the emergency still exists and determines that the 
        continuation of the order beyond 30 business days is necessary 
        in the public interest and for the protection of investors to 
        attain an objective described in clause (i), (ii), or (iii) of 
        subparagraph (A). In no event shall an order of the Commission 
        under this paragraph (2) continue in effect for more than 90 
        calendar days.
            ``(D) If the actions described in subparagraph (A) involve 
        a security futures product, the Commission shall consult with 
        and consider the views of the Commodity Futures Trading 
        Commission. In exercising its authority under this paragraph, 
        the Commission shall not be required to comply with the 
        provisions of section 553 of title 5, United States Code, or 
        with the provisions of section 19(c) of this title.
            ``(E) Notwithstanding the exclusion of exempted securities 
        (and markets therein) from the Commission's authority under 
        subparagraph (A), the Commission may use such authority to take 
        action to alter, supplement, suspend, or impose requirements or 
        restrictions with respect to clearing agencies for transactions 
        in such exempted securities. In taking any action under this 
        subparagraph, the Commission shall consult with and consider 
        the views of the Secretary of the Treasury.''.
    (b) Consultation; Definition of Emergency.--Section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)) is further amended 
by striking paragraph (6) and inserting the following:
            ``(6) Consultation.--Prior to taking any action described 
        in paragraph (1)(B), the Commission shall consult with and 
        consider the views of the Secretary of the Treasury, Board of 
        Governors of the Federal Reserve System, and the Commodity 
        Futures Trading Commission, unless such consultation is 
        impracticable in light of the emergency.
            ``(7) Definitions.--
                    ``(A) Emergency.--For purposes of this subsection, 
                the term `emergency' means--
                            ``(i) a major market disturbance 
                        characterized by or constituting--
                                    ``(I) sudden and excessive 
                                fluctuations of securities prices 
                                generally, or a substantial threat 
                                thereof, that threaten fair and orderly 
                                markets; or
                                    ``(II) a substantial disruption of 
                                the safe or efficient operation of the 
                                national system for clearance and 
                                settlement of transactions in 
                                securities, or a substantial threat 
                                thereof; or
                            ``(ii) a major disturbance that 
                        substantially disrupts, or threatens to 
                        substantially disrupt--
                                    ``(I) the functioning of securities 
                                markets, investment companies, or any 
                                other significant portion or segment of 
                                the securities markets; or
                                    ``(II) the transmission or 
                                processing of securities transactions.
                    ``(B) Securities laws.--Notwithstanding section 
                3(a)(47), for purposes of this subsection, the term 
                `securities laws' does not include the Public Utility 
                Holding Company Act of 1935 (15 U.S.C. 79a et seq.).''.

SEC. 5088. PARALLEL AUTHORITY OF THE SECRETARY OF THE TREASURY WITH 
              RESPECT TO GOVERNMENT SECURITIES.

    Section 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
5) is amended by adding at the end the following new subsection:
    ``(h) Emergency Authority.--The Secretary may by order take any 
action with respect to a matter or action subject to regulation by the 
Secretary under this section, or the rules of the Secretary thereunder, 
involving a government security or a market therein (or significant 
portion or segment of that market), that the Commission may take under 
section 12(k)(2) of this title with respect to transactions in 
securities (other than exempted securities) or a market therein (or 
significant portion or segment of that market).''.

SEC. 5089. JOINT REPORT ON IMPLEMENTATION OF FINANCIAL SYSTEM 
              RESILIENCE RECOMMENDATIONS.

    (a) Report Required.--Not later than April 30, 2006, the Board of 
Governors of the Federal Reserve System, the Comptroller of the 
Currency, and the Securities and Exchange Commission shall prepare and 
submit to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate a joint report on the efforts of the private 
sector to implement the Interagency Paper on Sound Practices to 
Strengthen the Resilience of the U.S. Financial System.
    (b) Contents of Report.--The report required by subsection (a) 
shall--
            (1) examine the efforts to date of covered private sector 
        financial services firms to implement enhanced business 
        continuity plans;
            (2) examine the extent to which the implementation of 
        business continuity plans has been done in a geographically 
        dispersed manner, including an analysis of the extent to which 
        such firms have located their main and backup facilities in 
        separate electrical networks, in different watersheds, in 
        independent transportation systems, and using separate 
        telecommunications centers;
            (3) examine the need to cover more financial services 
        entities than those covered by the Interagency Paper; and
            (4) recommend legislative and regulatory changes that 
        will--
                    (A) expedite the effective implementation of the 
                Interagency Paper by all covered financial services 
                entities; and
                    (B) maximize the effective implementation of 
                business continuity planning by all participants in the 
                financial services industry.
    (c) Confidentiality.--Any information provided to the Federal 
Reserve Board, the Comptroller of the Currency, or the Securities and 
Exchange Commission for the purposes of the preparation and submission 
of the report required by subsection (a) shall be treated as privileged 
and confidential. For purposes of section 552 of title 5, United States 
Code, this subsection shall be considered a statute described in 
subsection (b)(3)(B) of such section 552.
    (d) Definition.--The Interagency Paper on Sound Practices to 
Strengthen the Resilience of the U.S. Financial System is the 
interagency paper prepared by the Board of Governors of the Federal 
Reserve System, the Comptroller of the Currency, and the Securities and 
Exchange Commission that was announced in the Federal Register on April 
8, 2003.

SEC. 5089A. PRIVATE SECTOR PREPAREDNESS.

    It is the sense of the Congress that the insurance industry and 
credit-rating agencies, where relevant, should carefully consider a 
company's compliance with standards for private sector disaster and 
emergency preparedness in assessing insurability and creditworthiness, 
to ensure that private sector investment in disaster and emergency 
preparedness is appropriately encouraged.

SEC. 5089B. REPORT ON PUBLIC/PRIVATE PARTNERSHIPS.

    Before the end of the 6-month period beginning on the date of the 
enactment of this Act, the Secretary of the Treasury shall submit a 
report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing--
            (1) information on the efforts the Department of the 
        Treasury has made to encourage the formation of public/private 
        partnerships to protect critical financial infrastructure and 
        the type of support that the Department has provided to these 
        partnerships; and
            (2) recommendations for administrative or legislative 
        action regarding these partnerships as the Secretary may 
        determine to be appropriate.

                       Subtitle H--Other Matters

                       CHAPTER 1--PRIVACY MATTERS

SEC. 5091. REQUIREMENT THAT AGENCY RULEMAKING TAKE INTO CONSIDERATION 
              IMPACTS ON INDIVIDUAL PRIVACY.

    (a) Short Title.--This section may be cited as the ``Federal Agency 
Protection of Privacy Act of 2004''.
    (b) In General.--Title 5, United States Code, is amended by adding 
after section 553 the following new section:
``Sec. 553a. Privacy impact assessment in rulemaking
    ``(a) Initial Privacy Impact Assessment.--
            ``(1) In general.--Whenever an agency is required by 
        section 553 of this title, or any other law, to publish a 
        general notice of proposed rulemaking for a proposed rule, or 
        publishes a notice of proposed rulemaking for an interpretative 
        rule involving the internal revenue laws of the United States, 
        and such rule or proposed rulemaking pertains to the 
        collection, maintenance, use, or disclosure of personally 
        identifiable information from 10 or more individuals, other 
        than agencies, instrumentalities, or employees of the Federal 
        government, the agency shall prepare and make available for 
        public comment an initial privacy impact assessment that 
        describes the impact of the proposed rule on the privacy of 
        individuals. Such assessment or a summary thereof shall be 
        signed by the senior agency official with primary 
        responsibility for privacy policy and be published in the 
        Federal Register at the time of the publication of a general 
        notice of proposed rulemaking for the rule.
            ``(2) Contents.--Each initial privacy impact assessment 
        required under this subsection shall contain the following:
                    ``(A) A description and analysis of the extent to 
                which the proposed rule will impact the privacy 
                interests of individuals, including the extent to which 
                the proposed rule--
                            ``(i) provides notice of the collection of 
                        personally identifiable information, and 
                        specifies what personally identifiable 
                        information is to be collected and how it is to 
                        be collected, maintained, used, and disclosed;
                            ``(ii) allows access to such information by 
                        the person to whom the personally identifiable 
                        information pertains and provides an 
                        opportunity to correct inaccuracies;
                            ``(iii) prevents such information, which is 
                        collected for one purpose, from being used for 
                        another purpose; and
                            ``(iv) provides security for such 
                        information.
                    ``(B) A description of any significant alternatives 
                to the proposed rule which accomplish the stated 
                objectives of applicable statutes and which minimize 
                any significant privacy impact of the proposed rule on 
                individuals.
    ``(b) Final Privacy Impact Assessment.--
            ``(1) In general.--Whenever an agency promulgates a final 
        rule under section 553 of this title, after being required by 
        that section or any other law to publish a general notice of 
        proposed rulemaking, or promulgates a final interpretative rule 
        involving the internal revenue laws of the United States, and 
        such rule or proposed rulemaking pertains to the collection, 
        maintenance, use, or disclosure of personally identifiable 
        information from 10 or more individuals, other than agencies, 
        instrumentalities, or employees of the Federal government, the 
        agency shall prepare a final privacy impact assessment, signed 
        by the senior agency official with primary responsibility for 
        privacy policy.
            ``(2) Contents.--Each final privacy impact assessment 
        required under this subsection shall contain the following:
                    ``(A) A description and analysis of the extent to 
                which the final rule will impact the privacy interests 
                of individuals, including the extent to which such 
                rule--
                            ``(i) provides notice of the collection of 
                        personally identifiable information, and 
                        specifies what personally identifiable 
                        information is to be collected and how it is to 
                        be collected, maintained, used, and disclosed;
                            ``(ii) allows access to such information by 
                        the person to whom the personally identifiable 
                        information pertains and provides an 
                        opportunity to correct inaccuracies;
                            ``(iii) prevents such information, which is 
                        collected for one purpose, from being used for 
                        another purpose; and
                            ``(iv) provides security for such 
                        information.
                    ``(B) A summary of any significant issues raised by 
                the public comments in response to the initial privacy 
                impact assessment, a summary of the analysis of the 
                agency of such issues, and a statement of any changes 
                made in such rule as a result of such issues.
                    ``(C) A description of the steps the agency has 
                taken to minimize the significant privacy impact on 
                individuals consistent with the stated objectives of 
                applicable statutes, including a statement of the 
                factual, policy, and legal reasons for selecting the 
                alternative adopted in the final rule and why each one 
                of the other significant alternatives to the rule 
                considered by the agency which affect the privacy 
                interests of individuals was rejected.
            ``(3) Availability to public.--The agency shall make copies 
        of the final privacy impact assessment available to members of 
        the public and shall publish in the Federal Register such 
        assessment or a summary thereof.
    ``(c) Waivers.--
            ``(1) Emergencies.--An agency head may waive or delay the 
        completion of some or all of the requirements of subsections 
        (a) and (b) to the same extent as the agency head may, under 
        section 608, waive or delay the completion of some or all of 
        the requirements of sections 603 and 604, respectively.
            ``(2) National security.--An agency head may, for national 
        security reasons, or to protect from disclosure classified 
        information, confidential commercial information, or 
        information the disclosure of which may adversely affect a law 
        enforcement effort, waive or delay the completion of some or 
        all of the following requirements:
                    ``(A) The requirement of subsection (a)(1) to make 
                an assessment available for public comment.
                    ``(B) The requirement of subsection (a)(1) to have 
                an assessment or summary thereof published in the 
                Federal Register.
                    ``(C) The requirements of subsection (b)(3).
    ``(d) Procedures for Gathering Comments.--When any rule is 
promulgated which may have a significant privacy impact on individuals, 
or a privacy impact on a substantial number of individuals, the head of 
the agency promulgating the rule or the official of the agency with 
statutory responsibility for the promulgation of the rule shall assure 
that individuals have been given an opportunity to participate in the 
rulemaking for the rule through techniques such as--
            ``(1) the inclusion in an advance notice of proposed 
        rulemaking, if issued, of a statement that the proposed rule 
        may have a significant privacy impact on individuals, or a 
        privacy impact on a substantial number of individuals;
            ``(2) the publication of a general notice of proposed 
        rulemaking in publications of national circulation likely to be 
        obtained by individuals;
            ``(3) the direct notification of interested individuals;
            ``(4) the conduct of open conferences or public hearings 
        concerning the rule for individuals, including soliciting and 
        receiving comments over computer networks; and
            ``(5) the adoption or modification of agency procedural 
        rules to reduce the cost or complexity of participation in the 
        rulemaking by individuals.
    ``(e) Periodic Review of Rules.--
            ``(1) In general.--Each agency shall carry out a periodic 
        review of the rules promulgated by the agency that have a 
        significant privacy impact on individuals, or a privacy impact 
        on a substantial number of individuals. Under such periodic 
        review, the agency shall determine, for each such rule, whether 
        the rule can be amended or rescinded in a manner that minimizes 
        any such impact while remaining in accordance with applicable 
        statutes. For each such determination, the agency shall 
        consider the following factors:
                    ``(A) The continued need for the rule.
                    ``(B) The nature of complaints or comments received 
                from the public concerning the rule.
                    ``(C) The complexity of the rule.
                    ``(D) The extent to which the rule overlaps, 
                duplicates, or conflicts with other Federal rules, and, 
                to the extent feasible, with State and local 
                governmental rules.
                    ``(E) The length of time since the rule was last 
                reviewed under this subsection.
                    ``(F) The degree to which technology, economic 
                conditions, or other factors have changed in the area 
                affected by the rule since the rule was last reviewed 
                under this subsection.
            ``(2) Plan required.--Each agency shall carry out the 
        periodic review required by paragraph (1) in accordance with a 
        plan published by such agency in the Federal Register. Each 
        such plan shall provide for the review under this subsection of 
        each rule promulgated by the agency not later than 10 years 
        after the date on which such rule was published as the final 
        rule and, thereafter, not later than 10 years after the date on 
        which such rule was last reviewed under this subsection. The 
        agency may amend such plan at any time by publishing the 
        revision in the Federal Register.
            ``(3) Annual publication.--Each year, each agency shall 
        publish in the Federal Register a list of the rules to be 
        reviewed by such agency under this subsection during the 
        following year. The list shall include a brief description of 
        each such rule and the need for and legal basis of such rule 
        and shall invite public comment upon the determination to be 
        made under this subsection with respect to such rule.
    ``(f) Judicial Review.--
            ``(1) In general.--For any rule subject to this section, an 
        individual who is adversely affected or aggrieved by final 
        agency action is entitled to judicial review of agency 
        compliance with the requirements of subsections (b) and (c) in 
        accordance with chapter 7. Agency compliance with subsection 
        (d) shall be judicially reviewable in connection with judicial 
        review of subsection (b).
            ``(2) Jurisdiction.--Each court having jurisdiction to 
        review such rule for compliance with section 553, or under any 
        other provision of law, shall have jurisdiction to review any 
        claims of noncompliance with subsections (b) and (c) in 
        accordance with chapter 7. Agency compliance with subsection 
        (d) shall be judicially reviewable in connection with judicial 
        review of subsection (b).
            ``(3) Limitations.--
                    ``(A) An individual may seek such review during the 
                period beginning on the date of final agency action and 
                ending 1 year later, except that where a provision of 
                law requires that an action challenging a final agency 
                action be commenced before the expiration of 1 year, 
                such lesser period shall apply to an action for 
                judicial review under this subsection.
                    ``(B) In the case where an agency delays the 
                issuance of a final privacy impact assessment pursuant 
                to subsection (c), an action for judicial review under 
                this section shall be filed not later than--
                            ``(i) 1 year after the date the assessment 
                        is made available to the public; or
                            ``(ii) where a provision of law requires 
                        that an action challenging a final agency 
                        regulation be commenced before the expiration 
                        of the 1-year period, the number of days 
                        specified in such provision of law that is 
                        after the date the assessment is made available 
                        to the public.
            ``(4) Relief.--In granting any relief in an action under 
        this subsection, the court shall order the agency to take 
        corrective action consistent with this section and chapter 7, 
        including, but not limited to--
                    ``(A) remanding the rule to the agency; and
                    ``(B) deferring the enforcement of the rule against 
                individuals, unless the court finds that continued 
                enforcement of the rule is in the public interest.
            ``(5) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the authority of any court to stay 
        the effective date of any rule or provision thereof under any 
        other provision of law or to grant any other relief in addition 
        to the requirements of this subsection.
            ``(6) Record of agency action.--In an action for the 
        judicial review of a rule, the privacy impact assessment for 
        such rule, including an assessment prepared or corrected 
        pursuant to paragraph (4), shall constitute part of the entire 
        record of agency action in connection with such review.
            ``(7) Exclusivity.--Compliance or noncompliance by an 
        agency with the provisions of this section shall be subject to 
        judicial review only in accordance with this subsection.
            ``(8) Savings clause.--Nothing in this subsection bars 
        judicial review of any other impact statement or similar 
        assessment required by any other law if judicial review of such 
        statement or assessment is otherwise permitted by law.
    ``(g) Definition.--For purposes of this section, the term 
`personally identifiable information' means information that can be 
used to identify an individual, including such individual's name, 
address, telephone number, photograph, social security number or other 
identifying information. It includes information about such 
individual's medical or financial condition.''.
    (c) Periodic Review Transition Provisions.--
            (1) Initial plan.--For each agency, the plan required by 
        subsection (e) of section 553a of title 5, United States Code 
        (as added by subsection (a)), shall be published not later than 
        180 days after the date of the enactment of this Act.
            (2) In the case of a rule promulgated by an agency before 
        the date of the enactment of this Act, such plan shall provide 
        for the periodic review of such rule before the expiration of 
        the 10-year period beginning on the date of the enactment of 
        this Act. For any such rule, the head of the agency may provide 
        for a 1-year extension of such period if the head of the 
        agency, before the expiration of the period, certifies in a 
        statement published in the Federal Register that reviewing such 
        rule before the expiration of the period is not feasible. The 
        head of the agency may provide for additional 1-year extensions 
        of the period pursuant to the preceding sentence, but in no 
        event may the period exceed 15 years.
    (d) Congressional Review.--Section 801(a)(1)(B) of title 5, United 
States Code, is amended--
            (1) by redesignating clauses (iii) and (iv) as clauses (iv) 
        and (v), respectively; and
            (2) by inserting after clause (ii) the following new 
        clause:
            ``(iii) the agency's actions relevant to section 553a;''.
    (e) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of title 5, United States Code, is amended by adding after 
the item relating to section 553 the following new item:

``553a. Privacy impact assessment in rulemaking.''.

SEC. 5092. CHIEF PRIVACY OFFICERS FOR AGENCIES WITH LAW ENFORCEMENT OR 
              ANTI-TERRORISM FUNCTIONS.

    (a) In General.--There shall be within each Federal agency with law 
enforcement or anti-terrorism functions a chief privacy officer, who 
shall have primary responsibility within that agency for privacy 
policy. The agency chief privacy officer shall be designated by the 
head of the agency.
    (b) Responsibilities.--The responsibilities of each agency chief 
privacy officer shall include--
            (1) ensuring that the use of technologies sustains, and 
        does not erode, privacy protections relating to the use, 
        collection, and disclosure of personally identifiable 
        information;
            (2) ensuring that personally identifiable information 
        contained in systems of records is handled in full compliance 
        with fair information practices as set out in section 552a of 
        title 5, United States Code;
            (3) evaluating legislative and regulatory proposals 
        involving collection, use, and disclosure of personally 
        identifiable information by the Federal Government;
            (4) conducting a privacy impact assessment of proposed 
        rules of the agency on the privacy of personally identifiable 
        information, including the type of personally identifiable 
        information collected and the number of people affected;
            (5) preparing and submitting a report to Congress on an 
        annual basis on activities of the agency that affect privacy, 
        including complaints of privacy violations, implementation of 
        section 552a of title 5, United States Code, internal controls, 
        and other relevant matters;
            (6) ensuring that the agency protects personally 
        identifiable information and information systems from 
        unauthorized access, use, disclosure, disruption, modification, 
        or destruction in order to provide--
                    (A) integrity, which means guarding against 
                improper information modification or destruction, and 
                includes ensuring information nonrepudiation and 
                authenticity;
                    (B) confidentially, which means preserving 
                authorized restrictions on access and disclosure, 
                including means for protecting personal privacy and 
                proprietary information;
                    (C) availability, which means ensuring timely and 
                reliable access to and use of that information; and
                    (D) authentication, which means utilizing digital 
                credentials to assure the identity of users and 
                validate their access; and
            (7) advising the head of the agency and the Director of the 
        Office of Management and Budget on information security and 
        privacy issues pertaining to Federal Government information 
        systems.

            CHAPTER 2--MUTUAL AID AND LITIGATION MANAGEMENT

SEC. 5101. SHORT TITLE.

    This chapter may be cited as the ``Mutual Aid and Litigation 
Management Authorization Act of 2004''.

SEC. 5102. MUTUAL AID AUTHORIZED.

    (a) Authorization to Enter Into Agreements.--
            (1) In general.--The authorized representative of a State, 
        locality, or the Federal Government may enter into an 
        interstate mutual aid agreement or a mutual aid agreement with 
        the Federal Government on behalf of the State, locality, or 
        Federal Government under which, at the request of any party to 
        the agreement, the other party to the agreement may--
                    (A) provide law enforcement, fire, rescue, 
                emergency health and medical services, transportation, 
                communications, public works and engineering, mass 
                care, and resource support in an emergency or public 
                service event occurring in the jurisdiction of the 
                requesting party;
                    (B) provide other services to prepare for, 
                mitigate, manage, respond to, or recover from an 
                emergency or public service event occurring in the 
                jurisdiction of the requesting party; and
                    (C) participate in training events occurring in the 
                jurisdiction of the requesting party.
    (b) Liability and Actions at Law.--
            (1) Liability.--A responding party or its officers or 
        employees shall be liable on account of any act or omission 
        occurring while providing assistance or participating in a 
        training event in the jurisdiction of a requesting party under 
        a mutual aid agreement (including any act or omission arising 
        from the maintenance or use of any equipment, facilities, or 
        supplies in connection therewith), but only to the extent 
        permitted under and in accordance with the laws and procedures 
        of the State of the responding party and subject to this 
        chapter.
            (2) Jurisdiction of courts.--
                    (A) In general.--Subject to subparagraph (B) and 
                section 3, any action brought against a responding 
                party or its officers or employees on account of an act 
                or omission described in subsection (b)(1) may be 
                brought only under the laws and procedures of the State 
                of the responding party and only in the State courts or 
                United States District Courts located therein.
                    (B) United states as party.--If the United States 
                is the party against whom an action described in 
                paragraph (1) is brought, the action may be brought 
                only in a United States District Court.
    (c) Workers' Compensation and Death Benefits.--
            (1) Payment of benefits.--A responding party shall provide 
        for the payment of workers' compensation and death benefits 
        with respect to officers or employees of the party who sustain 
        injuries or are killed while providing assistance or 
        participating in a training event under a mutual aid agreement 
        in the same manner and on the same terms as if the injury or 
        death were sustained within the jurisdiction of the responding 
        party.
            (2) Liability for benefits.--No party shall be liable under 
        the law of any State other than its own (or, in the case of the 
        Federal Government, under any law other than Federal law) for 
        the payment of workers' compensation and death benefits with 
        respect to injured officers or employees of the party who 
        sustain injuries or are killed while providing assistance or 
        participating in a training event under a mutual aid agreement.
    (d) Licenses and Permits.--Whenever any person holds a license, 
certificate, or other permit issued by any responding party evidencing 
the meeting of qualifications for professional, mechanical, or other 
skills, such person will be deemed licensed, certified, or permitted by 
the requesting party to provide assistance involving such skill under a 
mutual aid agreement.
    (e) Scope.--Except to the extent provided in this section, the 
rights and responsibilities of the parties to a mutual aid agreement 
shall be as described in the mutual aid agreement.
    (f) Effect on Other Agreements.--Nothing in this section precludes 
any party from entering into supplementary mutual aid agreements with 
fewer than all the parties, or with another, or affects any other 
agreements already in force among any parties to such an agreement, 
including the Emergency Management Assistance Compact (EMAC) under 
Public Law 104-321.
    (g) Federal Government.--Nothing in this section may be construed 
to limit any other expressed or implied authority of any entity of the 
Federal Government to enter into mutual aid agreements.
    (h) Consistency With State Law.--A party may enter into a mutual 
aid agreement under this chapter only insofar as the agreement is in 
accord with State law.

SEC. 5103. LITIGATION MANAGEMENT AGREEMENTS.

    (a) Authorization to Enter Into Litigation Management Agreements.--
The authorized representative of a State or locality may enter into a 
litigation management agreement on behalf of the State or locality. 
Such litigation management agreements may provide that all claims 
against such Emergency Response Providers arising out of, relating to, 
or resulting from an act of terrorism when Emergency Response Providers 
from more than 1 State have acted in defense against, in response to, 
or recovery from such act shall be governed by the following 
provisions.
    (b) Federal Cause of Action.--
            (1) In general.--There shall exist a Federal cause of 
        action for claims against Emergency Response Providers arising 
        out of, relating to, or resulting from an act of terrorism when 
        Emergency Response Providers from more than 1 State have acted 
        in defense against, in response to, or recovery from such act. 
        As determined by the parties to a litigation management 
        agreement, the substantive law for decision in any such action 
        shall be--
                    (A) derived from the law, including choice of law 
                principles, of the State in which such acts of 
                terrorism occurred, unless such law is inconsistent 
                with or preempted by Federal law; or
                    (B) derived from the choice of law principles 
                agreed to by the parties to a litigation management 
                agreement as described in the litigation management 
                agreement, unless such principles are inconsistent with 
                or preempted by Federal law.
            (2) Jurisdiction.--Such appropriate district court of the 
        United States shall have original and exclusive jurisdiction 
        over all actions for any claim against Emergency Response 
        Providers for loss of property, personal injury, or death 
        arising out of, relating to, or resulting from an act of 
        terrorism when Emergency Response Providers from more than 1 
        State have acted in defense against, in response to, or 
        recovery from an act of terrorism.
            (3) Special rules.--In an action brought for damages that 
        is governed by a litigation management agreement, the following 
        provisions apply:
                    (A) Punitive damages.--No punitive damages intended 
                to punish or deter, exemplary damages, or other damages 
                not intended to compensate a plaintiff for actual 
                losses may be awarded, nor shall any party be liable 
                for interest prior to the judgment.
                    (B) Collateral sources.--Any recovery by a 
                plaintiff in an action governed by a litigation 
                management agreement shall be reduced by the amount of 
                collateral source compensation, if any, that the 
                plaintiff has received or is entitled to receive as a 
                result of such acts of terrorism.
            (4) Exclusions.--Nothing in this section shall in any way 
        limit the ability of any person to seek any form of recovery 
        from any person, government, or other entity that--
                    (A) attempts to commit, knowingly participates in, 
                aids and abets, or commits any act of terrorism, or any 
                criminal act related to or resulting from such act of 
                terrorism; or
                    (B) participates in a conspiracy to commit any such 
                act of terrorism or any such criminal act.

SEC. 5104. ADDITIONAL PROVISIONS.

    (a) No Abrogation of Other Immunities.--Nothing in this chapter 
shall abrogate any other immunities from liability that any party may 
have under any other State or Federal law.
    (b) Exception for Certain Federal Law Enforcement Activities.--A 
mutual aid agreement or a litigation management agreement may not apply 
to law enforcement security operations at special events of national 
significance under section 3056(e) of title 18, United States Code, or 
to other law enforcement functions of the United States Secret Service.
    (c) Secret Service.--Section 3056 of title 18, United States Code, 
is amended by adding at the end the following new subsection:
    ``(g) The Secret Service shall be maintained as a distinct entity 
within the Department of Homeland Security and shall not be merged with 
any other department function. All personnel and operational elements 
of the United States Secret Service shall report to the Director of the 
Secret Service, who shall report directly to the Secretary of Homeland 
Security without being required to report through any other official of 
the Department.''.

SEC. 5105. DEFINITIONS.

    For purposes of this chapter, the following definitions apply:
            (1) Authorized representative.--The term ``authorized 
        representative'' means--
                    (A) in the case of the Federal Government, any 
                individual designated by the President with respect to 
                the executive branch, the Chief Justice of the United 
                States with respect to the judicial branch, or the 
                President pro Tempore of the Senate and Speaker of the 
                House of Representatives with respect to the Congress, 
                or their designees, to enter into a mutual aid 
                agreement;
                    (B) in the case of a locality, the official 
                designated by law to declare an emergency in and for 
                the locality, or the official's designee;
                    (C) in the case of a State, the Governor or the 
                Governor's designee.
            (2) Emergency.--The term ``emergency'' means a major 
        disaster or emergency declared by the President, or a State of 
        Emergency declared by an authorized representative of a State 
        or locality, in response to which assistance may be provided 
        under a mutual aid agreement.
            (3) Emergency response provider.--The term ``Emergency 
        Response Provider'' means State or local emergency public 
        safety, law enforcement, emergency response, emergency medical 
        (including hospital emergency facilities), and related 
        personnel, agencies, and authorities that are a party to a 
        litigation management agreement.
            (4) Employee.--The term ``employee'' means, with respect to 
        a party to a mutual aid agreement, the employees of the party, 
        including its agents or authorized volunteers, who are 
        committed to provide assistance under the agreement.
            (5) Litigation management agreement.--The term ``litigation 
        management agreement'' means an agreement entered into pursuant 
        to the authority granted under section 5103.
            (6) Locality.--The term ``locality'' means a county, city, 
        or town.
            (7) Mutual aid agreement.--The term ``mutual aid 
        agreement'' means an agreement entered into pursuant to the 
        authority granted under section 5102.
            (8) Public service event.--The term ``public service 
        event'' means any undeclared emergency, incident, or situation 
        in preparation for or response to which assistance may be 
        provided under a mutual aid agreement.
            (9) Requesting party.--The term ``requesting party'' means, 
        with respect to a mutual aid agreement, the party in whose 
        jurisdiction assistance is provided, or a training event is 
        held, under the agreement.
            (10) Responding party.--The term ``responding party'' 
        means, with respect to a mutual aid agreement, the party 
        providing assistance, or participating in a training event, 
        under the agreement, but does not include the requesting party.
            (11) State.--The term ``State'' includes each of the 
        several States of the United States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of the Northern Mariana 
        Islands, and any other territory or possession of the United 
        States, and any political subdivision of any such place.
            (12) Training event.--The term ``training event'' means an 
        emergency and public service event-related exercise, test, or 
        other activity using equipment and personnel to prepare for or 
        simulate performance of any aspect of the giving or receiving 
        of assistance during emergencies or public service events, but 
        does not include an actual emergency or public service event.

                    CHAPTER 3--MISCELLANEOUS MATTERS

SEC. 5131. ENHANCEMENT OF PUBLIC SAFETY COMMUNICATIONS 
              INTEROPERABILITY.

    (a) Coordination of Public Safety Interoperable Communications 
Programs.--
            (1) Program.--The Secretary of Homeland Security, in 
        consultation with the Secretary of Commerce and the Chairman of 
        the Federal Communications Commission, shall establish a 
        program to enhance public safety interoperable communications 
        at all levels of government. Such program shall--
                    (A) establish a comprehensive national approach to 
                achieving public safety interoperable communications;
                    (B) coordinate with other Federal agencies in 
                carrying out subparagraph (A);
                    (C) develop, in consultation with other appropriate 
                Federal agencies and State and local authorities, 
                appropriate minimum capabilities for communications 
                interoperability for Federal, State, and local public 
                safety agencies;
                    (D) accelerate, in consultation with other Federal 
                agencies, including the National Institute of Standards 
                and Technology, the private sector, and nationally 
                recognized standards organizations as appropriate, the 
                development of national voluntary consensus standards 
                for public safety interoperable communications;
                    (E) encourage the development and implementation of 
                flexible and open architectures, with appropriate 
                levels of security, for short-term and long-term 
                solutions to public safety communications 
                interoperability;
                    (F) assist other Federal agencies in identifying 
                priorities for research, development, and testing and 
                evaluation with regard to public safety interoperable 
                communications;
                    (G) identify priorities within the Department of 
                Homeland Security for research, development, and 
                testing and evaluation with regard to public safety 
                interoperable communications;
                    (H) establish coordinated guidance for Federal 
                grant programs for public safety interoperable 
                communications;
                    (I) provide technical assistance to State and local 
                public safety agencies regarding planning, acquisition 
                strategies, interoperability architectures, training, 
                and other functions necessary to achieve public safety 
                communications interoperability;
                    (J) develop and disseminate best practices to 
                improve public safety communications interoperability; 
                and
                    (K) develop appropriate performance measures and 
                milestones to systematically measure the Nation's 
                progress towards achieving public safety communications 
                interoperability, including the development of national 
                voluntary consensus standards.
            (2) Office for interoperability and compatibility.--
                    (A) Establishment of office.--The Secretary may 
                establish an Office for Interoperability and 
                Compatibility to carry out this subsection.
                    (B) Functions.--If the Secretary establishes such 
                office, the Secretary shall, through such office--
                            (i) carry out Department of Homeland 
                        Security responsibilities and authorities 
                        relating to the SAFECOM Program; and
                            (ii) carry out subsection (c) (relating to 
                        rapid interoperable communications capabilities 
                        for high risk jurisdictions).
            (3) Applicability of federal advisory committee act.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
        to advisory groups established and maintained by the Secretary 
        for purposes of carrying out this subsection.
    (b) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall report to the Congress on 
Department of Homeland Security plans for accelerating the development 
of national voluntary consensus standards for public safety 
interoperable communications, a schedule of milestones for such 
development, and achievements of such development.
    (c) Rapid Interoperable Communications Capabilities for High Risk 
Jurisdictions.--The Secretary, in consultation with other relevant 
Federal, State, and local government agencies, shall provide technical, 
training, and other assistance as appropriate to support the rapid 
establishment of consistent, secure, and effective interoperable 
communications capabilities for emergency response providers in 
jurisdictions determined by the Secretary to be at consistently high 
levels of risk of terrorist attack.
    (d) Definitions.--In this section:
            (1) Interoperable communications.--The term ``interoperable 
        communications'' means the ability of emergency response 
        providers and relevant Federal, State, and local government 
        agencies to communicate with each other as necessary, through a 
        dedicated public safety network utilizing information 
        technology systems and radio communications systems, and to 
        exchange voice, data, or video with one another on demand, in 
        real time, as necessary.
            (2) Emergency response providers.--The term ``emergency 
        response providers'' has the meaning that term has under 
        section 2 of the Homeland Security Act of 2002 (6 U.S.C. 101)
    (e) Clarification of Responsibility for Interoperable 
Communications.--
            (1) Under secretary for emergency preparedness and 
        response.--Section 502(7) of the Homeland Security Act of 2002 
        (6 U.S.C. 312(7)) is amended--
                    (A) by striking ``developing comprehensive programs 
                for developing interoperative communications 
                technology, and''; and
                    (B) by striking ``such'' and inserting 
                ``interoperable communications''.
            (2) Office for domestic preparedness.--Section 430(c) of 
        such Act (6 U.S.C. 238(c)) is amended--
                    (A) in paragraph (7) by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (8) by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(9) helping to ensure the acquisition of interoperable 
        communication technology by State and local governments and 
        emergency response providers.''.

SEC. 5132. SENSE OF CONGRESS REGARDING THE INCIDENT COMMAND SYSTEM.

    (a) Findings.--The Congress finds that--
            (1) in Homeland Security Presidential Directive-5, the 
        President directed the Secretary of Homeland Security to 
        develop an incident command system to be known as the National 
        Incident Management System (NIMS), and directed all Federal 
        agencies to make the adoption of NIMS a condition for the 
        receipt of Federal emergency preparedness assistance by States, 
        territories, tribes, and local governments beginning in fiscal 
        year 2005;
            (2) in March 2004, the Secretary of Homeland Security 
        established NIMS, which provides a unified structural framework 
        for Federal, State, territorial, tribal, and local governments 
        to ensure coordination of command, operations, planning, 
        logistics, finance, and administration during emergencies 
        involving multiple jurisdictions or agencies; and
            (3) the National Commission on Terrorist Attacks Upon the 
        United States strongly supports the adoption of NIMS by 
        emergency response agencies nationwide, and the decision by the 
        President to condition Federal emergency preparedness 
        assistance upon the adoption of NIMS.
    (b) Sense of Congress.--It is the sense of the Congress that all 
levels of government should adopt NIMS, and that the regular use of and 
training in NIMS by States, territories, tribes, and local governments 
should be a condition for receiving Federal preparedness assistance.

SEC. 5133. SENSE OF CONGRESS REGARDING UNITED STATES NORTHERN COMMAND 
              PLANS AND STRATEGIES.

    It is the sense of Congress that the Secretary of Defense should 
regularly assess the adequacy of United States Northern Command's plans 
and strategies with a view to ensuring that the United States Northern 
Command is prepared to respond effectively to all military and 
paramilitary threats within the United States.

[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``9/11 Recommendations Implementation 
Act''.

[SEC. 2. TABLE OF CONTENTS.

    [The table of contents for this Act is as follows:

             [TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

[Sec. 1001. Short title.
      [Subtitle A--Establishment of National Intelligence Director

[Sec. 1011. Reorganization and improvement of management of 
                            intelligence community.
[Sec. 1012. Revised definition of national intelligence.
[Sec. 1013. Joint procedures for operational coordination between 
                            Department of Defense and Central 
                            Intelligence Agency.
[Sec. 1014. Role of National Intelligence Director in appointment of 
                            certain officials responsible for 
                            intelligence-related activities.
[Sec. 1015. Initial appointment of the National Intelligence Director.
[Sec. 1016. Executive schedule matters.
   [Subtitle B--National counterterrorism Center and Civil Liberties 
                              Protections

[Sec. 1021. National counterterrorism Center.
[Sec. 1022. Civil Liberties Protection Officer.
           [Subtitle C--Joint Intelligence Community Council

[Sec. 1031. Joint Intelligence Community Council.
        [Subtitle D--Improvement of Human Intelligence (HUMINT)

[Sec. 1041. Human intelligence as an increasingly critical component of 
                            the intelligence community.
[Sec. 1042. Improvement of human intelligence capacity.
  [Subtitle E--Improvement of Education for the Intelligence Community

[Sec. 1051. Modification of obligated service requirements under 
                            National Security Education Program.
[Sec. 1052. Improvements to the National Flagship Language Initiative.
[Sec. 1053. Establishment of scholarship program for English language 
                            studies for heritage community citizens of 
                            the United States within the National 
                            Security Education Program.
[Sec. 1054. Sense of Congress with respect to language and education 
                            for the intelligence community; reports.
[Sec. 1055. Advancement of foreign languages critical to the 
                            intelligence community.
[Sec. 1056. Pilot project for Civilian Linguist Reserve Corps.
[Sec. 1057. Codification of establishment of the National Virtual 
                            Translation Center.
[Sec. 1058. Report on recruitment and retention of qualified 
                            instructors of the Defense Language 
                            Institute.
    [Subtitle F--Additional Improvements of Intelligence Activities

[Sec. 1061. Permanent extension of Central Intelligence Agency 
                            Voluntary Separation Incentive Program.
[Sec. 1062. National Security Agency Emerging Technologies Panel.
              [Subtitle G--Conforming and Other Amendments

[Sec. 1071. Conforming amendments relating to roles of National 
                            Intelligence Director and Director of the 
                            Central Intelligence Agency.
[Sec. 1072. Other conforming amendments.
[Sec. 1073. Elements of intelligence community under National Security 
                            Act of 1947.
[Sec. 1074. Redesignation of National Foreign Intelligence Program as 
                            National Intelligence Program. 
[Sec. 1075. Repeal of superseded authorities.
[Sec. 1076. Clerical amendments to National Security Act of 1947.
[Sec. 1077. Conforming amendments relating to prohibiting dual service 
                            of the Director of the Central Intelligence 
                            Agency.
[Sec. 1078. Access to Inspector General protections.
[Sec. 1079. General references.
[Sec. 1080. Application of other laws.
  [Subtitle H--Transfer, Termination, Transition and Other Provisions

[Sec. 1091. Transfer of community management staff.
[Sec. 1092. Transfer of terrorist threat integration center.
[Sec. 1093. Termination of positions of Assistant Directors of Central 
                            Intelligence.
[Sec. 1094. Implementation plan.
[Sec. 1095. Transitional authorities.
[Sec. 1096. Effective dates.
            [TITLE II--TERRORISM PREVENTION AND PROSECUTION

     [Subtitle A--Individual Terrorists as Agents of Foreign Powers

[Sec. 2001. Presumption that certain non-United States persons engaging 
                            in international terrorism are agents of 
                            foreign powers for purposes of the Foreign 
                            Intelligence Surveillance Act of 1978.
      [Subtitle B--Stop Terrorist and Military Hoaxes Act of 2004

[Sec. 2021. Short title.
[Sec. 2022. Hoaxes and recovery costs.
[Sec. 2023. Obstruction of justice and false statements in terrorism 
                            cases.
[Sec. 2024. Clarification of definition.
[Subtitle C--Material Support to Terrorism Prohibition Enhancement Act 
                                of 2004

[Sec. 2041. Short title.
[Sec. 2042. Receiving military-type training from a foreign terrorist 
                            organization.
[Sec. 2043. Providing material support to terrorism.
[Sec. 2044. Financing of terrorism.
[Subtitle D--Weapons of Mass Destruction Prohibition Improvement Act of 
                                  2004

[Sec. 2051. Short title.
[Sec. 2052. Weapons of mass destruction.
[Sec. 2053. Participation in nuclear and weapons of mass destruction 
                            threats to the United States.
[Sec. 2054. Proliferation of weapons of mass destruction.
[Sec. 2055. Sense of Congress regarding international 
                            counterproliferation efforts.
[Sec. 2056. Removal of potential nuclear weapons materials from 
                            vulnerable sites worldwide.
         [Subtitle E--Money Laundering and Terrorist Financing

  [Chapter 1--Funding to Combat Financial Crimes Including Terrorist 
                               Financing

[Sec. 2101. Additional authorization for FinCEN.
[Sec. 2102. Money laundering and financial crimes strategy 
                            reauthorization.
  [Chapter 2--Enforcement Tools to Combat Financial Crimes Including 
 [subchapter a--money laundering abatement and financial antiterrorism 
                         technical corrections
[Sec. 2111. Short title.
[Sec. 2112. Technical corrections to Public Law 107-56.
[Sec. 2113. Technical corrections to other provisions of law.
[Sec. 2114. Repeal of review.
[Sec. 2115. Ef[subchapter b--additional enforcement tools
[Sec. 2121. Bureau of Engraving and Printing security printing.
[Sec. 2122. Conduct in aid of counterfeiting.
            [Subtitle F--Criminal History Background Checks

[Sec. 2141. Short title.
[Sec. 2142. Criminal history background checks.
[Sec. 2143. Protect Act.
[Sec. 2144. Reviews of criminal records of applicants for private 
                            security officer employment.
[Sec. 2145. Task force on clearinghouse for IAFIS criminal history 
                            records.
[Subtitle G--Protection of United States Aviation System from Terrorist 
                                Attacks

[Sec. 2171. Provision for the use of biometric or other technology.
[Sec. 2172. Transportation security strategic planning.
[Sec. 2173. Next generation airline passenger prescreening.
[Sec. 2174. Deployment and use of explosive detection equipment at 
                            airport screening checkpoints.
[Sec. 2175. Pilot program to evaluate use of blast-resistant cargo and 
                            baggage containers.
[Sec. 2176. Air cargo screening technology.
[Sec. 2177. Airport checkpoint screening explosive detection.
[Sec. 2178. Next generation security checkpoint.
[Sec. 2179. Penalty for failure to secure cockpit door.
[Sec. 2180. Federal air marshal anonymity.
[Sec. 2181. Federal law enforcement counterterrorism training.
[Sec. 2182. Federal flight deck officer weapon carriage pilot program.
[Sec. 2183. Registered traveler program.
[Sec. 2184. Wireless communication.
[Sec. 2185. Secondary flight deck barriers.
[Sec. 2186. Extension.
[Sec. 2187. Perimeter Security.
[Sec. 2188. Extremely hazardous materials transportation security.
[Sec. 2189. Definitions.
                       [Subtitle H--Other Matters

[Sec. 2191. Grand jury information sharing.
[Sec. 2192. Interoperable law enforcement and intelligence data system.
[Sec. 2193. Improvement of intelligence capabilities of the Federal 
                            Bureau of Investigation.
[Sec. 2194. Nuclear facility threats.
[Sec. 2195. Authorization and Change of COPS Program to single Grant 
                            Program.
                       [Subtitle I--Police Badges

[Sec. 2201. Short title.
[Sec. 2202. Police badges.
            [TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

        [Subtitle A--Immigration Reform in the National Interest

                     [Chapter 1--General Provisions

[Sec. 3001. Eliminating the ``Western Hemisphere'' exception for 
                            citizens.
[Sec. 3002. Modification of waiver authority with respect to 
                            documentation requirements for nationals of 
                            foreign contiguous territories and adjacent 
                            islands.
[Sec. 3003. Increase in full-time border patrol agents.
[Sec. 3004. Increase in full-time immigration and customs enforcement 
                            investigators.
[Sec. 3005. Alien identification standards.
[Sec. 3006. Expedited removal.
[Sec. 3007. Preventing terrorists from obtaining asylum.
[Sec. 3008. Revocation of visas and other travel documentation.
[Sec. 3009. Judicial review of orders of removal.
   [Chapter 2--Deportation of Terrorists and Supporters of Terrorism

[Sec. 3031. Expanded inapplicability of restriction on removal.
[Sec. 3032. Exception to restriction on removal for terrorists and 
                            criminals.
[Sec. 3033. Additional removal authorities.
           [Chapter 3--Preventing Commercial Alien Smuggling

[Sec. 3041. Bringing in and harboring certain aliens.
               [Subtitle B--Identity Management Security

   [Chapter 1--Improved Security for Drivers' Licenses and Personal 
                          Identification Cards

[Sec. 3051. Definitions.
[Sec. 3052. Minimum document requirements and issuance standards for 
                            Federal recognition.
[Sec. 3053. Linking of databases.
[Sec. 3054. Trafficking in authentication features for use in false 
                            identification documents.
[Sec. 3055. Grants to States.
[Sec. 3056. Authority.
          [Chapter 2--Improved Security for Birth Certificates

[Sec. 3061. Definitions.
[Sec. 3062. Applicability of minimum standards to local governments.
[Sec. 3063. Minimum standards for Federal recognition.
[Sec. 3064. Establishment of electronic birth and death registration 
                            systems.
[Sec. 3065. Electronic verification of vital events.
[Sec. 3066. Grants to States.
[Sec. 3067. Authority.
    [Chapter 3--Measures To Enhance Privacy and Integrity of Social 
                        Security Account Numbers

[Sec. 3071. Prohibition of the display of social security account 
                            numbers on driver's licenses or motor 
                            vehicle registrations.
[Sec. 3072. Independent verification of birth records provided in 
                            support of applications for social security 
                            account numbers.
[Sec. 3073. Enumeration at birth.
[Sec. 3074. Study relating to use of photographic identification in 
                            connection with applications for benefits, 
                            social security account numbers, and social 
                            security cards.
[Sec. 3075. Restrictions on issuance of multiple replacement social 
                            security cards.
[Sec. 3076. Study relating to modification of the social security 
                            account numbering system to show work 
                            authorization status.
                [Subtitle C--Targeting Terrorist Travel

[Sec. 3081. Studies on machine-readable passports and travel history 
                            database.
[Sec. 3082. Expanded preinspection at foreign airports.
[Sec. 3083. Immigration security initiative.
[Sec. 3084. Responsibilities and functions of consular officers.
[Sec. 3085. Increase in penalties for fraud and related activity.
[Sec. 3086. Criminal penalty for false claim to citizenship.
[Sec. 3087. Antiterrorism assistance training of the Department of 
                            State.
[Sec. 3088. International agreements to track and curtail terrorist 
                            travel through the use of fraudulently 
                            obtained documents.
[Sec. 3089. International standards for translation of names into the 
                            Roman alphabet for international travel 
                            documents and name-based watchlist systems.
[Sec. 3090. Biometric entry and exit data system.
[Sec. 3091. Biometric entry-exit screening system.
[Sec. 3092. Enhanced responsibilities of the Coordinator for 
                            counterterrorism.
[Sec. 3093. Establishment of Office of Visa and Passport Security in 
                            the Department of State.
                     [Subtitle D--Terrorist Travel

[Sec. 3101. Information sharing and coordination.
[Sec. 3102. Terrorist travel program.
[Sec. 3103. Training program.
[Sec. 3104. Technology acquisition and dissemination plan.
              [Subtitle E--Maritime Security Requirements

[Sec. 3111. Deadlines for implementation of maritime security 
                            requirements.
         [TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

         [Subtitle A--Attack Terrorists and Their Organizations

        [Chapter 1--Provisions Relating to Terrorist Sanctuaries

[Sec. 4001. United States policy on terrorist sanctuaries.
[Sec. 4002. Reports on terrorist sanctuaries.
[Sec. 4003. Amendments to existing law to include terrorist 
                            sanctuaries.
                      [Chapter 2--Other Provisions

[Sec. 4011. Appointments to fill vacancies in Arms Control and 
                            Nonproliferation Advisory Board.
[Sec. 4012. Review of United States policy on proliferation of weapons 
                            of mass destruction and control of 
                            strategic weapons.
[Sec. 4013. International agreements to interdict acts of international 
                            terrorism.
[Sec. 4014. Effective Coalition approach toward detention and humane 
                            treatment of captured terrorists.
[Sec. 4015. Sense of Congress and report regarding counter-drug efforts 
                            in Afghanistan.
         [Subtitle B--Prevent the Continued Growth of Terrorism

               [Chapter 1--United States Public Diplomacy

[Sec. 4021. Annual review and assessment of public diplomacy strategy.
[Sec. 4022. Public diplomacy training.
[Sec. 4023. Promoting direct exchanges with Muslim countries.
[Sec. 4024. Public diplomacy required for promotion in Foreign Service.
            [Chapter 2--United States Multilateral Diplomacy

[Sec. 4031. Purpose.
[Sec. 4032. Support and expansion of democracy caucus.
[Sec. 4033. Leadership and membership of international organizations.
[Sec. 4034. Increased training in multilateral diplomacy.
[Sec. 4035. Implementation and establishment of Office on Multilateral 
                            Negotiations.
                      [Chapter 3--Other Provisions

[Sec. 4041. Pilot program to provide grants to American-sponsored 
                            schools in predominantly Muslim countries 
                            to provide scholarships.
[Sec. 4042. Enhancing free and independent media.
[Sec. 4043. Combating biased or false foreign media coverage of the 
                            United States.
[Sec. 4044. Report on broadcast outreach strategy.
[Sec. 4045. Office relocation.
[Sec. 4046. Strengthening the Community of Democracies for Muslim 
                            countries.
 [Subtitle C--Reform of Designation of Foreign Terrorist Organizations

[Sec. 4051. Designation of foreign terrorist organizations.
[Sec. 4052. Inclusion in annual Department of State country reports on 
                            terrorism of information on terrorist 
                            groups that seek weapons of mass 
                            destruction and groups that have been 
                            designated as foreign terrorist 
                            organizations.
    [Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

[Sec. 4061. Short title.
[Sec. 4062. Coordination of assistance for Afghanistan.
[Sec. 4063. General provisions relating to the Afghanistan Freedom 
                            Support Act of 2002.
[Sec. 4064. Rule of law and related issues.
[Sec. 4065. Monitoring of assistance.
[Sec. 4066. United States policy to support disarmament of private 
                            militias and to support expansion of 
                            international peacekeeping and security 
                            operations in Afghanistan.
[Sec. 4067. Efforts to expand international peacekeeping and security 
                            operations in Afghanistan.
[Sec. 4068. Provisions relating to counternarcotics efforts in 
                            Afghanistan.
[Sec. 4069. Additional amendments to the Afghanistan Freedom Support 
                            Act of 2002.
[Sec. 4070. Repeal.
     [Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

[Sec. 4081. New United States strategy for relationship with Saudi 
                            Arabia.
[Sec. 4082. United States commitment to the future of Pakistan.
[Sec. 4083. Extension of Pakistan waivers.
                   [Subtitle F--Oversight Provisions

[Sec. 4091. Case-Zablocki Act requirements.
 [Subtitle G--Additional Protections of United States Aviation System 
                         from Terrorist Attacks

[Sec. 4101. International agreements to allow maximum deployment of 
                            Federal flight deck officers.
[Sec. 4102. Federal air marshal training.
[Sec. 4103. Man-portable air defense systems (MANPADS).
[Subtitle H--Improving International Standards and Cooperation to Fight 
                          Terrorist Financing

[Sec. 4111. Sense of the Congress regarding success in multilateral 
                            organizations.
[Sec. 4112. Expanded reporting requirement for the Secretary of the 
                            Treasury.
[Sec. 4113. International Terrorist Finance Coordinating Council.
[Sec. 4114. Definitions.
                   [TITLE V--GOVERNMENT RESTRUCTURING

      [Subtitle A--Faster and Smarter Funding for First Responders

[Sec. 5001. Short title.
[Sec. 5002. Findings.
[Sec. 5003. Faster and smarter funding for first responders.
[Sec. 5004. Modification of homeland security advisory system.
[Sec. 5005. Coordination of industry efforts.
[Sec. 5006. Superseded provision.
[Sec. 5007. Sense of Congress regarding interoperable communications.
[Sec. 5008. Sense of Congress regarding citizen corps councils.
[Sec. 5009. Study regarding nationwide emergency notification system.
[Sec. 5010. Required coordination.
            [Subtitle B--Government Reorganization Authority

[Sec. 5021. Authorization of intelligence community reorganization 
                            plans.
[Sec. 5022. Authority to enter into contracts and issue Federal loan 
                            guarantees.
   [Subtitle C--Restructuring Relating to the Department of Homeland 
                  Security and Congressional Oversight

[Sec. 5025. Responsibilities of counternarcotics Office.
[Sec. 5026. Use of counternarcotics enforcement activities in certain 
                            employee performance appraisals.
[Sec. 5027. Sense of the House of Representatives on addressing 
                            homeland security for the American people.
           [Subtitle D--Improvements to Information Security

[Sec. 5031. Amendments to Clinger-Cohen provisions to enhance agency 
                            planning for information security needs.
             [Subtitle E--Personnel Management Improvements

                [Chapter 1--Appointments Process Reform

[Sec. 5041. Appointments to national security positions.
[Sec. 5042. Presidential inaugural transitions.
[Sec. 5043. Public financial disclosure for the intelligence community.
[Sec. 5044. Reduction of positions requiring appointment with Senate 
                            confirmation.
[Sec. 5045. Effective dates.
       [Chapter 2--Federal Bureau of Investigation Revitalization

[Sec. 5051. Mandatory separation age.
[Sec. 5052. Retention and relocation bonuses.
[Sec. 5053. Federal Bureau of Investigation Reserve Service.
[Sec. 5054. Critical positions in the Federal Bureau of Investigation 
                            intelligence directorate.
                    [Chapter 3--Management Authority

[Sec. 5061. Management authority.
             [Subtitle F--Security Clearance Modernization

[Sec. 5071. Definitions.
[Sec. 5072. Security clearance and investigative programs oversight and 
                            administration.
[Sec. 5073. Reciprocity of security clearance and access 
                            determinations.
[Sec. 5074. Establishment of national database.
[Sec. 5075. Use of available technology in clearance investigations.
[Sec. 5076. Reduction in length of personnel security clearance 
                            process.
[Sec. 5077. Security clearances for presidential transition.
[Sec. 5078. Reports.
             [Subtitle G--Emergency Financial Preparedness

[Sec. 5081. Delegation authority of the Secretary of the Treasury.
[Sec. 5082. Extension of emergency order authority of the securities 
                            and exchange commission.
[Sec. 5083. Parallel authority of the Secretary of the Treasury with 
                            respect to government securities.
                       [Subtitle H--Other Matters

                      [Chapter 1--Privacy Matters

[Sec. 5091. Requirement that agency rulemaking take into consideration 
                            impacts on individual privacy.
[Sec. 5092. Chief privacy officers for agencies with law enforcement or 
                            anti-terrorism functions.
[Sec. 5093. Data-mining report.
[Sec. 5094. Privacy and civil liberties oversight board.
            [Chapter 2--Mutual Aid and Litigation Management

[Sec. 5101. Short title.
[Sec. 5102. Mutual aid authorized.
[Sec. 5103. Litigation management agreements.
[Sec. 5104. Additional provisions.
[Sec. 5105. Definitions.
                   [Chapter 3--Miscellaneous Matters

[Sec. 5131. Enhancement of public safety communications 
                            interoperability.
[Sec. 5132. Sense of Congress regarding the incident command system.
[Sec. 5133. Sense of Congress regarding United States Northern Command 
                            plans and strategies.

             [TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

[SEC. 1001. SHORT TITLE.

    [This title may be cited as the ``National Security Intelligence 
Improvement Act of 2004''.

      [Subtitle A--Establishment of National Intelligence Director

[SEC. 1011. REORGANIZATION AND IMPROVEMENT OF MANAGEMENT OF 
              INTELLIGENCE COMMUNITY.

    [(a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.) is amended by striking sections 102 through 104 and 
inserting the following new sections:

                   [``national intelligence director

    [``Sec. 102. (a) National Intelligence Director.--(1) There is a 
National Intelligence Director who shall be appointed by the President, 
by and with the advice and consent of the Senate.
    [``(2) The National Intelligence Director shall not be located 
within the Executive Office of the President.
    [``(b) Principal Responsibility.--Subject to the authority, 
direction, and control of the President, the National Intelligence 
Director shall--
            [``(1) serve as head of the intelligence community;
            [``(2) act as the principal adviser to the President, to 
        the National Security Council, and the Homeland Security 
        Council for intelligence matters related to the national 
        security; and
            [``(3) through the heads of the departments containing 
        elements of the intelligence community, and the Central 
        Intelligence Agency, manage and oversee the execution of the 
        National Intelligence Program and direct the National 
        Intelligence Program.
    [``(c) Prohibition on Dual Service.--The individual serving in the 
position of National Intelligence Director shall not, while so serving, 
also serve as the Director of the Central Intelligence Agency or as the 
head of any other element of the intelligence community.

   [``responsibilities and authorities of the national intelligence 
                                director

    [``Sec. 102A. (a) Provision of Intelligence.--(1) Under the 
direction of the President, the National Intelligence Director shall be 
responsible for ensuring that national intelligence is provided--
            [``(A) to the President;
            [``(B) to the heads of departments and agencies of the 
        executive branch;
            [``(C) to the Chairman of the Joint Chiefs of Staff and 
        senior military commanders;
            [``(D) where appropriate, to the Senate and House of 
        Representatives and the committees thereof; and
            [``(E) to such other persons as the National Intelligence 
        Director determines to be appropriate.
    [``(2) Such national intelligence should be timely, objective, 
independent of political considerations, and based upon all sources 
available to the intelligence community and other appropriate entities.
    [``(b) Access to Intelligence.--To the extent approved by the 
President, the National Intelligence Director shall have access to all 
national intelligence and intelligence related to the national security 
which is collected by any Federal department, agency, or other entity, 
except as otherwise provided by law or, as appropriate, under 
guidelines agreed upon by the Attorney General and the National 
Intelligence Director.
    [``(c) Budget Authorities.--(1)(A) The National Intelligence 
Director shall develop and present to the President on an annual basis 
a budget for intelligence and intelligence-related activities of the 
United States.
    [``(B) In carrying out subparagraph (A) for any fiscal year for the 
components of the budget that comprise the National Intelligence 
Program, the National Intelligence Director shall provide guidance to 
the heads of departments containing elements of the intelligence 
community, and to the heads of the elements of the intelligence 
community, for development of budget inputs to the National 
Intelligence Director.
    [``(2)(A) The National Intelligence Director shall participate in 
the development by the Secretary of Defense of the annual budgets for 
the Joint Military Intelligence Program and for Tactical Intelligence 
and Related Activities.
    [``(B) The National Intelligence Director shall provide guidance 
for the development of the annual budget for each element of the 
intelligence community that is not within the National Intelligence 
Program.
    [``(3) In carrying out paragraphs (1) and (2), the National 
Intelligence Director may, as appropriate, obtain the advice of the 
Joint Intelligence Community Council.
    [``(4) The National Intelligence Director shall ensure the 
effective execution of the annual budget for intelligence and 
intelligence-related activities.
    [``(5)(A) The National Intelligence Director shall facilitate the 
management and execution of funds appropriated for the National 
Intelligence Program.
    [``(B) Notwithstanding any other provision of law, in receiving 
funds pursuant to relevant appropriations Acts for the National 
Intelligence Program, the Office of Management and Budget shall 
apportion funds appropriated for the National Intelligence Program to 
the National Intelligence Director for allocation to the elements of 
the intelligence community through the host executive departments that 
manage programs and activities that are part of the National 
Intelligence Program.
    [``(C) The National Intelligence Director shall monitor the 
implementation and execution of the National Intelligence Program by 
the heads of the elements of the intelligence community that manage 
programs and activities that are part of the National Intelligence 
Program, which may include audits and evaluations, as necessary and 
feasible.
    [``(6) Apportionment and allotment of funds under this subsection 
shall be subject to chapter 13 and section 1517 of title 31, United 
States Code, and the Congressional Budget and Impoundment Control Act 
of 1974 (2 U.S.C. 621 et seq.).
    [``(7)(A) The National Intelligence Director shall provide a 
quarterly report, beginning April 1, 2005, and ending April 1, 2007, to 
the President and the Congress regarding implementation of this 
section.
    [``(B) The National Intelligence Director shall report to the 
President and the Congress not later than 5 days after learning of any 
instance in which a departmental comptroller acts in a manner 
inconsistent with the law (including permanent statutes, authorization 
Acts, and appropriations Acts), or the direction of the National 
Intelligence Director, in carrying out the National Intelligence 
Program.
    [``(d) Role of National Intelligence Director in Reprogramming.--
(1) No funds made available under the National Intelligence Program may 
be transferred or reprogrammed without the prior approval of the 
National Intelligence Director, except in accordance with procedures 
prescribed by the National Intelligence Director.
    [``(2) The Secretary of Defense shall consult with the National 
Intelligence Director before transferring or reprogramming funds made 
available under the Joint Military Intelligence Program.
    [``(e) Transfer of Funds or Personnel Within National Intelligence 
Program.--(1) In addition to any other authorities available under law 
for such purposes, the National Intelligence Director, with the 
approval of the Director of the Office of Management and Budget--
            [``(A) may transfer funds appropriated for a program within 
        the National Intelligence Program to another such program; and
            [``(B) in accordance with procedures to be developed by the 
        National Intelligence Director and the heads of the departments 
        and agencies concerned, may transfer personnel authorized for 
        an element of the intelligence community to another such 
        element for periods up to one year.
    [``(2) The amounts available for transfer in the National 
Intelligence Program in any given fiscal year, and the terms and 
conditions governing such transfers, are subject to the provisions of 
annual appropriations Acts and this subsection.
    [``(3)(A) A transfer of funds or personnel may be made under this 
subsection only if--
            [``(i) the funds or personnel are being transferred to an 
        activity that is a higher priority intelligence activity;
            [``(ii) the need for funds or personnel for such activity 
        is based on unforeseen requirements;
            [``(iii) the transfer does not involve a transfer of funds 
        to the Reserve for Contingencies of the Central Intelligence 
        Agency;
            [``(iv) in the case of a transfer of funds, the transfer 
        results in a cumulative transfer of funds out of any department 
        or agency, as appropriate, funded in the National Intelligence 
        Program in a single fiscal year--
                    [``(I) that is less than $100,000,000, and
                    [``(II) that is less than 5 percent of amounts 
                available to a department or agency under the National 
                Intelligence Program; and
            [``(v) the transfer does not terminate a program.
    [``(B) A transfer may be made without regard to a limitation set 
forth in clause (iv) or (v) of subparagraph (A) if the transfer has the 
concurrence of the head of the department or agency involved. The 
authority to provide such concurrence may only be delegated by the head 
of the department or agency involved to the deputy of such officer.
    [``(4) Funds transferred under this subsection shall remain 
available for the same period as the appropriations account to which 
transferred.
    [``(5) Any transfer of funds under this subsection shall be carried 
out in accordance with existing procedures applicable to reprogramming 
notifications for the appropriate congressional committees. Any 
proposed transfer for which notice is given to the appropriate 
congressional committees shall be accompanied by a report explaining 
the nature of the proposed transfer and how it satisfies the 
requirements of this subsection. In addition, the congressional 
intelligence committees shall be promptly notified of any transfer of 
funds made pursuant to this subsection in any case in which the 
transfer would not have otherwise required reprogramming notification 
under procedures in effect as of the date of the enactment of this 
subsection.
    [``(6)(A) The National Intelligence Director shall promptly submit 
to--
            [``(i) the congressional intelligence committees,
            [``(ii) in the case of the transfer of personnel to or from 
        the Department of Defense, the Committee on Armed Services of 
        the Senate and the Committee on Armed Services of the House of 
        Representatives, and
            [``(iii) in the case of the transfer of personnel to or 
        from the Department of Justice, to the Committees on the 
        Judiciary of the Senate and the House of Representatives,
a report on any transfer of personnel made pursuant to this subsection.
    [``(B) The Director shall include in any such report an explanation 
of the nature of the transfer and how it satisfies the requirements of 
this subsection.
    [``(f) Tasking and Other Authorities.--(1)(A) The National 
Intelligence Director shall--
            [``(i) develop collection objectives, priorities, and 
        guidance for the intelligence community to ensure timely and 
        effective collection, processing, analysis, and dissemination 
        (including access by users to collected data consistent with 
        applicable law and, as appropriate, the guidelines referred to 
        in subsection (b) and analytic products generated by or within 
        the intelligence community) of national intelligence;
            [``(ii) determine and establish requirements and priorities 
        for, and manage and direct the tasking of, collection, 
        analysis, production, and dissemination of national 
        intelligence by elements of the intelligence community, 
        including--
                    [``(I) approving requirements for collection and 
                analysis, and
                    [``(II) resolving conflicts in collection 
                requirements and in the tasking of national collection 
                assets of the elements of the intelligence community; 
                and
            [``(iii) provide advisory tasking to intelligence elements 
        of those agencies and departments not within the National 
        Intelligence Program.
    [``(B) The authority of the National Intelligence Director under 
subparagraph (A) shall not apply--
            [``(i) insofar as the President so directs;
            [``(ii) with respect to clause (ii) of subparagraph (A), 
        insofar as the Secretary of Defense exercises tasking authority 
        under plans or arrangements agreed upon by the Secretary of 
        Defense and the National Intelligence Director; or
            [``(iii) to the direct dissemination of information to 
        State government and local government officials and private 
        sector entities pursuant to sections 201 and 892 of the 
        Homeland Security Act of 2002 (6 U.S.C. 121, 482).
    [``(2) The National Intelligence Director shall oversee the 
National counterterrorism Center and may establish such other national 
intelligence centers as the Director determines necessary.
    [``(3)(A) The National Intelligence Director shall prescribe 
community-wide personnel policies that--
            [``(i) facilitate assignments across community elements and 
        to the intelligence centers;
            [``(ii) establish overarching standards for intelligence 
        education and training; and
            [``(iii) promote the most effective analysis and collection 
        of intelligence by ensuring a diverse workforce, including the 
        recruitment and training of women, minorities, and individuals 
        with diverse, ethnic, and linguistic backgrounds.
    [``(B) In developing the policies prescribed under subparagraph 
(A), the National Intelligence Director shall consult with the heads of 
the departments containing the elements of the intelligence community.
    [``(C) Policies prescribed under subparagraph (A) shall not be 
inconsistent with the personnel policies otherwise applicable to 
members of the uniformed services.
    [``(4) The National Intelligence Director shall ensure compliance 
with the Constitution and laws of the United States by the Central 
Intelligence Agency and shall ensure such compliance by other elements 
of the intelligence community through the host executive departments 
that manage the programs and activities that are part of the National 
Intelligence Program.
    [``(5) The National Intelligence Director shall ensure the 
elimination of waste and unnecessary duplication within the 
intelligence community.
    [``(6) The National Intelligence Director shall perform such other 
functions as the President may direct.
Nothing in this Act shall be construed as affecting the role of the 
Department of Justice or the Attorney General with respect to 
applications under the Foreign Intelligence Surveillance Act of 1978.
    [``(g) Intelligence Information Sharing.--(1) The National 
Intelligence Director shall have principal authority to ensure maximum 
availability of and access to intelligence information within the 
intelligence community consistent with national security requirements. 
The National Intelligence Director shall--
            [``(A) establish uniform security standards and procedures;
            [``(B) establish common information technology standards, 
        protocols, and interfaces;
            [``(C) ensure development of information technology systems 
        that include multi-level security and intelligence integration 
        capabilities; and
            [``(D) establish policies and procedures to resolve 
        conflicts between the need to share intelligence information 
        and the need to protect intelligence sources and methods.
    [``(2) The President shall ensure that the National Intelligence 
Director has all necessary support and authorities to fully and 
effectively implement paragraph (1).
    [``(3) Except as otherwise directed by the President or with the 
specific written agreement of the head of the department or agency in 
question, a Federal agency or official shall not be considered to have 
met any obligation to provide any information, report, assessment, or 
other material (including unevaluated intelligence information) to that 
department or agency solely by virtue of having provided that 
information, report, assessment, or other material to the National 
Intelligence Director or the National counterterrorism Center.
    [``(4) Not later than February 1 of each year, the National 
Intelligence Director shall submit to the President and to the Congress 
an annual report that identifies any statute, regulation, policy, or 
practice that the Director believes impedes the ability of the Director 
to fully and effectively implement paragraph (1).
    [``(h) Analysis.--(1) The National Intelligence Director shall 
ensure that all elements of the intelligence community strive for the 
most accurate analysis of intelligence derived from all sources to 
support national security needs.
    [``(2) The National Intelligence Director shall ensure that 
intelligence analysis generally receives the highest priority when 
distributing resources within the intelligence community and shall 
carry out duties under this subsection in a manner that--
            [``(A) develops all-source analysis techniques;
            [``(B) ensures competitive analysis;
            [``(C) ensures that differences in judgment are fully 
        considered and brought to the attention of policymakers; and
            [``(D) builds relationships between intelligence collectors 
        and analysts to facilitate greater understanding of the needs 
        of analysts.
    [``(i) Protection of Intelligence Sources and Methods.--(1) In 
order to protect intelligence sources and methods from unauthorized 
disclosure and, consistent with that protection, to maximize the 
dissemination of intelligence, the National Intelligence Director shall 
establish and implement guidelines for the intelligence community for 
the following purposes:
            [``(A) Classification of information.
            [``(B) Access to and dissemination of intelligence, both in 
        final form and in the form when initially gathered.
            [``(C) Preparation of intelligence products in such a way 
        that source information is removed to allow for dissemination 
        at the lowest level of classification possible or in 
        unclassified form to the extent practicable.
    [``(2) The Director may only delegate a duty or authority given the 
Director under this subsection to the Deputy National Intelligence 
Director.
    [``(j) Uniform Procedures for Sensitive Compartmented 
Information.--The President, acting through the National Intelligence 
Director, shall--
            [``(1) establish uniform standards and procedures for the 
        grant of access to sensitive compartmented information to any 
        officer or employee of any agency or department of the United 
        States and to employees of contractors of those agencies or 
        departments;
            [``(2) ensure the consistent implementation of those 
        standards and procedures throughout such agencies and 
        departments;
            [``(3) ensure that security clearances granted by 
        individual elements of the intelligence community are 
        recognized by all elements of the intelligence community, and 
        under contracts entered into by those agencies; and
            [``(4) ensure that the process for investigation and 
        adjudication of an application for access to sensitive 
        compartmented information is performed in the most expeditious 
        manner possible consistent with applicable standards for 
        national security.
    [``(k) Coordination With Foreign Governments.--Under the direction 
of the President and in a manner consistent with section 207 of the 
Foreign Service Act of 1980 (22 U.S.C. 3927), the National Intelligence 
Director shall oversee the coordination of the relationships between 
elements of the intelligence community and the intelligence or security 
services of foreign governments on all matters involving intelligence 
related to the national security or involving intelligence acquired 
through clandestine means.
    [``(l) Enhanced Personnel Management.--(1)(A) The National 
Intelligence Director shall, under regulations prescribed by the 
Director, provide incentives for personnel of elements of the 
intelligence community to serve--
            [``(i) on the staff of the National Intelligence Director;
            [``(ii) on the staff of the national intelligence centers;
            [``(iii) on the staff of the National counterterrorism 
        Center; and
            [``(iv) in other positions in support of the intelligence 
        community management functions of the Director.
    [``(B) Incentives under subparagraph (A) may include financial 
incentives, bonuses, and such other awards and incentives as the 
Director considers appropriate.
    [``(2)(A) Notwithstanding any other provision of law, the personnel 
of an element of the intelligence community who are assigned or 
detailed under paragraph (1)(A) to service under the National 
Intelligence Director shall be promoted at rates equivalent to or 
better than personnel of such element who are not so assigned or 
detailed.
    [``(B) The Director may prescribe regulations to carry out this 
section.
    [``(3)(A) The National Intelligence Director shall prescribe 
mechanisms to facilitate the rotation of personnel of the intelligence 
community through various elements of the intelligence community in the 
course of their careers in order to facilitate the widest possible 
understanding by such personnel of the variety of intelligence 
requirements, methods, users, and capabilities.
    [``(B) The mechanisms prescribed under subparagraph (A) may include 
the following:
            [``(i) The establishment of special occupational categories 
        involving service, over the course of a career, in more than 
        one element of the intelligence community.
            [``(ii) The provision of rewards for service in positions 
        undertaking analysis and planning of operations involving two 
        or more elements of the intelligence community.
            [``(iii) The establishment of requirements for education, 
        training, service, and evaluation that involve service in more 
        than one element of the intelligence community.
    [``(C) It is the sense of Congress that the mechanisms prescribed 
under this subsection should, to the extent practical, seek to 
duplicate for civilian personnel within the intelligence community the 
joint officer management policies established by chapter 38 of title 
10, United States Code, and the other amendments made by title IV of 
the Goldwater-Nichols Department of Defense Reorganization Act of 1986 
(Public Law 99-433).
    [``(4)(A) This subsection shall not apply with respect to personnel 
of the elements of the intelligence community who are members of the 
uniformed services or law enforcement officers (as that term is defined 
in section 5541(3) of title 5, United States Code).
    [``(B) Assignment to the Office of the National Intelligence 
Director of commissioned officers of the Armed Forces shall be 
considered a joint-duty assignment for purposes of the joint officer 
management policies prescribed by chapter 38 of title 10, United States 
Code, and other provisions of that title.
    [``(m) Additional Authority With Respect to Personnel.--(1) In 
addition to the authorities under subsection (f)(3), the National 
Intelligence Director may exercise with respect to the personnel of the 
Office of the National Intelligence Director any authority of the 
Director of the Central Intelligence Agency with respect to the 
personnel of the Central Intelligence Agency under the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.), and other 
applicable provisions of law, as of the date of the enactment of this 
subsection to the same extent, and subject to the same conditions and 
limitations, that the Director of the Central Intelligence Agency may 
exercise such authority with respect to personnel of the Central 
Intelligence Agency.
    [``(2) Employees and applicants for employment of the Office of the 
National Intelligence Director shall have the same rights and 
protections under the Office of the National Intelligence Director as 
employees of the Central Intelligence Agency have under the Central 
Intelligence Agency Act of 1949, and other applicable provisions of 
law, as of the date of the enactment of this subsection.
    [``(n) Acquisition Authorities.--(1) In carrying out the 
responsibilities and authorities under this section, the National 
Intelligence Director may exercise the acquisition authorities referred 
to in the Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
seq.).
    [``(2) For the purpose of the exercise of any authority referred to 
in paragraph (1), a reference to the head of an agency shall be deemed 
to be a reference to the National Intelligence Director or the Deputy 
National Intelligence Director.
    [``(3)(A) Any determination or decision to be made under an 
authority referred to in paragraph (1) by the head of an agency may be 
made with respect to individual purchases and contracts or with respect 
to classes of purchases or contracts, and shall be final.
    [``(B) Except as provided in subparagraph (C), the National 
Intelligence Director or the Deputy National Intelligence Director may, 
in such official's discretion, delegate to any officer or other 
official of the Office of the National Intelligence Director any 
authority to make a determination or decision as the head of the agency 
under an authority referred to in paragraph (1).
    [``(C) The limitations and conditions set forth in section 3(d) of 
the Central Intelligence Agency Act of 1949 (50 U.S.C. 403c(d)) shall 
apply to the exercise by the National Intelligence Director of an 
authority referred to in paragraph (1).
    [``(D) Each determination or decision required by an authority 
referred to in the second sentence of section 3(d) of the Central 
Intelligence Agency Act of 1949 shall be based upon written findings 
made by the official making such determination or decision, which 
findings shall be final and shall be available within the Office of the 
National Intelligence Director for a period of at least six years 
following the date of such determination or decision.
    [``(o) Consideration of Views of Elements of the Intelligence 
Community.--In carrying out the duties and responsibilities under this 
section, the National Intelligence Director shall take into account the 
views of a head of a department containing an element of the 
intelligence community and of the Director of the Central Intelligence 
Agency.

            [``office of the national intelligence director

    [``Sec. 103. (a) Establishment of Office; Function.--(1) There is 
an Office of the National Intelligence Director. The Office of the 
National Intelligence Director shall not be located within the 
Executive Office of the President.
    [``(2) The function of the Office is to assist the National 
Intelligence Director in carrying out the duties and responsibilities 
of the Director under this Act and to carry out such other duties as 
may be prescribed by the President or by law.
    [``(3) Any authority, power, or function vested by law in any 
officer, employee, or part of the Office of the National Intelligence 
Director is vested in, or may be exercised by, the National 
Intelligence Director.
    [``(4) Exemptions, exceptions, and exclusions for the Central 
Intelligence Agency or for personnel, resources, or activities of such 
Agency from otherwise applicable laws, other than the exception 
contained in section 104A(c)(1) shall apply in the same manner to the 
Office of the National Intelligence Director and the personnel, 
resources, or activities of such Office.
    [``(b) Office of National Intelligence Director.--(1) The Office of 
the National Intelligence Director is composed of the following:
            [``(A) The National Intelligence Director.
            [``(B) The Deputy National Intelligence Director.
            [``(C) The Deputy National Intelligence Director for 
        Operations.
            [``(D) The Deputy National Intelligence Director for 
        Community Management and Resources.
            [``(E) The Associate National Intelligence Director for 
        Military Support.
            [``(F) The Associate National Intelligence Director for 
        Domestic Security.
            [``(G) The Associate National Intelligence Director for 
        Diplomatic Affairs.
            [``(H) The National Intelligence Council.
            [``(I) The General Counsel to the National Intelligence 
        Director.
            [``(J) Such other offices and officials as may be 
        established by law or the National Intelligence Director may 
        establish or designate in the Office.
    [``(2) To assist the National Intelligence Director in fulfilling 
the duties and responsibilities of the Director, the Director shall 
employ and utilize in the Office of the National Intelligence Director 
a staff having expertise in matters relating to such duties and 
responsibilities and may establish permanent positions and appropriate 
rates of pay with respect to such staff.
    [``(c) Deputy National Intelligence Director.--(1) There is a 
Deputy National Intelligence Director who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    [``(2) The Deputy National Intelligence Director shall assist the 
National Intelligence Director in carrying out the responsibilities of 
the National Intelligence Director under this Act.
    [``(3) The Deputy National Intelligence Director shall act for, and 
exercise the powers of, the National Intelligence Director during the 
absence or disability of the National Intelligence Director or during a 
vacancy in the position of the National Intelligence Director.
    [``(4) The Deputy National Intelligence Director takes precedence 
in the Office of the National Intelligence Director immediately after 
the National Intelligence Director.
    [``(d) Deputy National Intelligence Director for Operations.--(1) 
There is a Deputy National Intelligence Director for Operations.
    [``(2) The Deputy National Intelligence Director for Operations 
shall--
            [``(A) assist the National Intelligence Director in all 
        aspects of intelligence operations, including intelligence 
        tasking, requirements, collection, and analysis;
            [``(B) assist the National Intelligence Director in 
        overseeing the national intelligence centers; and
            [``(C) perform such other duties and exercise such powers 
        as National Intelligence Director may prescribe.
    [``(e) Deputy National Intelligence Director for Community 
Management and Resources.--(1) There is a Deputy National Intelligence 
Director for Community Management and Resources.
    [``(2) The Deputy National Intelligence Director for Community 
Management and Resources shall--
            [``(A) assist the National Intelligence Director in all 
        aspects of management and resources, including administration, 
        budgeting, information security, personnel, training, and 
        programmatic functions; and
            [``(B) perform such other duties and exercise such powers 
        as the National Intelligence Director may prescribe.
    [``(f) Associate National Intelligence Director for Military 
Support.--(1) There is an Associate National Intelligence Director for 
Military Support who shall be appointed by the National Intelligence 
Director, in consultation with the Secretary of Defense.
    [``(2) The Associate National Intelligence Director for Military 
Support shall--
            [``(A) ensure that the intelligence needs of the Department 
        of Defense are met; and
            [``(B) perform such other duties and exercise such powers 
        as the National Intelligence Director may prescribe.
    [``(g) Associate National Intelligence Director for Domestic 
Security.--(1) There is an Associate National Intelligence Director for 
Domestic Security who shall be appointed by the National Intelligence 
Director in consultation with the Attorney General and the Secretary of 
Homeland Security.
    [``(2) The Associate National Intelligence Director for Domestic 
Security shall--
            [``(A) ensure that the intelligence needs of the Department 
        of Justice, the Department of Homeland Security, and other 
        relevant executive departments and agencies are met; and
            [``(B) perform such other duties and exercise such powers 
        as the National Intelligence Director may prescribe, except 
        that the National Intelligence Director may not make such 
        officer responsible for disseminating any domestic or homeland 
        security information to State government or local government 
        officials or any private sector entity.
    [``(h) Associate National Intelligence Director for Diplomatic 
Affairs.--(1) There is an Associate National Intelligence Director for 
Diplomatic Affairs who shall be appointed by the National Intelligence 
Director in consultation with the Secretary of State.
    [``(2) The Associate National Intelligence Director for Diplomatic 
Affairs shall--
            [``(A) ensure that the intelligence needs of the Department 
        of State are met; and
            [``(B) perform such other duties and exercise such powers 
        as the National Intelligence Director may prescribe.
    [``(i) Military Status of Director and Deputy Directors.--(1) Not 
more than one of the individuals serving in the positions specified in 
paragraph (2) may be a commissioned officer of the Armed Forces in 
active status.
    [``(2) The positions referred to in this paragraph are the 
following:
            [``(A) The National Intelligence Director.
            [``(B) The Deputy National Intelligence Director.
    [``(3) It is the sense of Congress that, under ordinary 
circumstances, it is desirable that one of the individuals serving in 
the positions specified in paragraph (2)--
            [``(A) be a commissioned officer of the Armed Forces, in 
        active status; or
            [``(B) have, by training or experience, an appreciation of 
        military intelligence activities and requirements.
    [``(4) A commissioned officer of the Armed Forces, while serving in 
a position specified in paragraph (2)--
            [``(A) shall not be subject to supervision or control by 
        the Secretary of Defense or by any officer or employee of the 
        Department of Defense;
            [``(B) shall not exercise, by reason of the officer's 
        status as a commissioned officer, any supervision or control 
        with respect to any of the military or civilian personnel of 
        the Department of Defense except as otherwise authorized by 
        law; and
            [``(C) shall not be counted against the numbers and 
        percentages of commissioned officers of the rank and grade of 
        such officer authorized for the military department of that 
        officer.
    [``(5) Except as provided in subparagraph (A) or (B) of paragraph 
(4), the appointment of an officer of the Armed Forces to a position 
specified in paragraph (2) shall not affect the status, position, rank, 
or grade of such officer in the Armed Forces, or any emolument, 
perquisite, right, privilege, or benefit incident to or arising out of 
such status, position, rank, or grade.
    [``(6) A commissioned officer of the Armed Forces on active duty 
who is appointed to a position specified in paragraph (2), while 
serving in such position and while remaining on active duty, shall 
continue to receive military pay and allowances and shall not receive 
the pay prescribed for such position. Funds from which such pay and 
allowances are paid shall be reimbursed from funds available to the 
National Intelligence Director.
    [``(j) National Intelligence Council.--(1) Within the Office of the 
Deputy National Intelligence Director for Operations, there is a 
National Intelligence Council.
    [``(2)(A) The National Intelligence Council shall be composed of 
senior analysts within the intelligence community and substantive 
experts from the public and private sector, who shall be appointed by 
and report to the Deputy National Intelligence Director for Operations.
    [``(B) The Director shall prescribe appropriate security 
requirements for personnel appointed from the private sector as a 
condition of service on the Council, or as contractors of the Council 
or employees of such contractors, to ensure the protection of 
intelligence sources and methods while avoiding, wherever possible, 
unduly intrusive requirements which the Director considers to be 
unnecessary for this purpose.
    [``(3) The National Intelligence Council shall--
            [``(A) produce national intelligence estimates for the 
        United States Government, which shall include as a part of such 
        estimates in their entirety, alternative views, if any, held by 
        elements of the intelligence community;
            [``(B) evaluate community-wide collection and production of 
        intelligence by the intelligence community and the requirements 
        and resources of such collection and production; and
            [``(C) otherwise assist the National Intelligence Director 
        in carrying out the responsibility of the National Intelligence 
        Director to provide national intelligence.
    [``(4) Within their respective areas of expertise and under the 
direction of the Deputy National Intelligence Director for Operations, 
the members of the National Intelligence Council shall constitute the 
senior intelligence advisers of the intelligence community for purposes 
of representing the views of the intelligence community within the 
United States Government.
    [``(5) Subject to the direction and control of the Deputy National 
Intelligence Director for Operations, the National Intelligence Council 
may carry out its responsibilities under this section by contract, 
including contracts for substantive experts necessary to assist the 
Council with particular assessments under this subsection.
    [``(6) The Deputy National Intelligence Director for Operations 
shall make available to the National Intelligence Council such 
personnel as may be necessary to permit the Council to carry out its 
responsibilities under this section.
    [``(7) The heads of the elements of the intelligence community 
shall, as appropriate, furnish such support to the National 
Intelligence Council, including the preparation of intelligence 
analyses, as may be required by the National Intelligence Director.
    [``(k) General Counsel to the National Intelligence Director.--(1) 
There is a General Counsel to the National Intelligence Director.
    [``(2) The individual serving in the position of General Counsel to 
the National Intelligence Director may not, while so serving, also 
serve as the General Counsel of any other agency or department of the 
United States.
    [``(3) The General Counsel to the National Intelligence Director is 
the chief legal officer for the National Intelligence Director.
    [``(4) The General Counsel to the National Intelligence Director 
shall perform such functions as the National Intelligence Director may 
prescribe.
    [``(l) Intelligence Community Information Technology Officer.--(1) 
There is an Intelligence Community Information Technology Officer who 
shall be appointed by the National Intelligence Director.
    [``(2) The mission of the Intelligence Community Information 
Technology Officer is to assist the National Intelligence Director in 
ensuring the sharing of information in the fullest and most prompt 
manner between and among elements of the intelligence community 
consistent with section 102A(g).
    [``(3) The Intelligence Community Information Technology Officer 
shall--
            [``(A) assist the Deputy National Intelligence Director for 
        Community Management and Resources in developing and 
        implementing an integrated information technology network;
            [``(B) develop an enterprise architecture for the 
        intelligence community and assist the Deputy National 
        Intelligence Director for Community Management and Resources in 
        ensuring that elements of the intelligence community comply 
        with such architecture;
            [``(C) have procurement approval authority over all 
        enterprise architecture-related information technology items 
        funded in the National Intelligence Program;
            [``(D) ensure that all such elements have the most direct 
        and continuous electronic access to all information (including 
        unevaluated intelligence consistent with existing laws and the 
        guidelines referred to in section 102A(b)) necessary for 
        appropriately cleared analysts to conduct comprehensive all-
        source analysis and for appropriately cleared policymakers to 
        perform their duties--
                    [``(i) directly, in the case of the elements of the 
                intelligence community within the National Intelligence 
                Program, and
                    [``(ii) in conjunction with the Secretary of 
                Defense and other applicable heads of departments with 
                intelligence elements outside the National Intelligence 
                Program;
            [``(E) review and provide recommendations to the Deputy 
        National Intelligence Director for Community Management and 
        Resources on National Intelligence Program budget requests for 
        information technology and national security systems;
            [``(F) assist the Deputy National Intelligence Director for 
        Community Management and Resources in promulgating and 
        enforcing standards on information technology and national 
        security systems that apply throughout the elements of the 
        intelligence community;
            [``(G) ensure that within and between the elements of the 
        National Intelligence Program, duplicative and unnecessary 
        information technology and national security systems are 
        eliminated; and
            [``(H) pursuant to the direction of the National 
        Intelligence Director, consult with the Director of the Office 
        of Management and Budget to ensure that the Office of the 
        National Intelligence Director coordinates and complies with 
        national security requirements consistent with applicable law, 
        Executive orders, and guidance; and
            [``(I) perform such other duties with respect to the 
        information systems and information technology of the Office of 
        the National Intelligence Director as may be prescribed by the 
        Deputy National Intelligence Director for Community Management 
        and Resources or specified by law.

                     [``central intelligence agency

    [``Sec. 104. (a) Central Intelligence Agency.--There is a Central 
Intelligence Agency.
    [``(b) Function.--The function of the Central Intelligence Agency 
is to assist the Director of the Central Intelligence Agency in 
carrying out the responsibilities specified in section 104A(c).

             [``director of the central intelligence agency

    [``Sec. 104A. (a) Director of Central Intelligence Agency.--There 
is a Director of the Central Intelligence Agency who shall be appointed 
by the President, by and with the advice and consent of the Senate. The 
Director shall be under the authority, direction, and control of the 
National Intelligence Director, except as otherwise determined by the 
President.
    [``(b) Duties.--In the capacity as Director of the Central 
Intelligence Agency, the Director of the Central Intelligence Agency 
shall--
            [``(1) carry out the responsibilities specified in 
        subsection (c); and
            [``(2) serve as the head of the Central Intelligence 
        Agency.
    [``(c) Responsibilities.--The Director of the Central Intelligence 
Agency shall--
            [``(1) collect intelligence through human sources and by 
        other appropriate means, except that the Director of the 
        Central Intelligence Agency shall have no police, subpoena, or 
        law enforcement powers or internal security functions;
            [``(2) provide overall direction for the collection of 
        national intelligence overseas or outside of the United States 
        through human sources by elements of the intelligence community 
        authorized to undertake such collection and, in coordination 
        with other agencies of the Government which are authorized to 
        undertake such collection, ensure that the most effective use 
        is made of resources and that the risks to the United States 
        and those involved in such collection are minimized;
            [``(3) correlate and evaluate intelligence related to the 
        national security and provide appropriate dissemination of such 
        intelligence;
            [``(4) perform such additional services as are of common 
        concern to the elements of the intelligence community, which 
        services the National Intelligence Director determines can be 
        more efficiently accomplished centrally; and
            [``(5) perform such other functions and duties related to 
        intelligence affecting the national security as the President 
        or the National Intelligence Director may direct.
    [``(d) Deputy Director of the Central Intelligence Agency.--There 
is a Deputy Director of the Central Intelligence Agency who shall be 
appointed by the President. The Deputy Director shall perform such 
functions as the Director may prescribe and shall perform the duties of 
the Director during the Director's absence or disability or during a 
vacancy in the position of the Director of the Central Intelligence 
Agency.
    [``(e) Termination of Employment of CIA Employees.--(1) 
Notwithstanding the provisions of any other law, the Director of the 
Central Intelligence Agency may, in the discretion of the Director, 
terminate the employment of any officer or employee of the Central 
Intelligence Agency whenever the Director considers the termination of 
employment of such officer or employee necessary or advisable in the 
interests of the United States.
    [``(2) Any termination of employment of an officer or employee 
under paragraph (1) shall not affect the right of the officer or 
employee to seek or accept employment in any other department, agency, 
or element of the United States Government if declared eligible for 
such employment by the Office of Personnel Management.''.
    [(b) First Director.--(1) When the Senate receives the nomination 
of a person for the initial appointment by the President for the 
position of National Intelligence Director, it shall consider and 
dispose of such nomination within a period of 30 legislative days.
    [(2) If the Senate does not dispose of such nomination referred to 
in paragraph (1) within such period--
            [(A) Senate confirmation is not required; and
            [(B) the appointment of such nominee as National 
        Intelligence Director takes effect upon administration of the 
        oath of office.
    [(3) For the purposes of this subsection, the term ``legislative 
day'' means a day on which the Senate is in session.

[SEC. 1012. REVISED DEFINITION OF NATIONAL INTELLIGENCE.

    [Paragraph (5) of section 3 of the National Security Act of 1947 
(50 U.S.C. 401a) is amended to read as follows:
            [``(5) The terms `national intelligence' and `intelligence 
        related to national security' refer to all intelligence, 
        regardless of the source from which derived and including 
        information gathered within or outside the United States, 
        that--
                    [``(A) pertains, as determined consistent with any 
                guidance issued by the President, to more than one 
                United States Government agency; and
                    [``(B) that involves--
                            [``(i) threats to the United States, its 
                        people, property, or interests;
                            [``(ii) the development, proliferation, or 
                        use of weapons of mass destruction; or
                            [``(iii) any other matter bearing on United 
                        States national or homeland security.''.

[SEC. 1013. JOINT PROCEDURES FOR OPERATIONAL COORDINATION BETWEEN 
              DEPARTMENT OF DEFENSE AND CENTRAL INTELLIGENCE AGENCY.

    [(a) Development of Procedures.--The National Intelligence 
Director, in consultation with the Secretary of Defense and the 
Director of the Central Intelligence Agency, shall develop joint 
procedures to be used by the Department of Defense and the Central 
Intelligence Agency to improve the coordination and deconfliction of 
operations that involve elements of both the Armed Forces and the 
Central Intelligence Agency consistent with national security and the 
protection of human intelligence sources and methods. Those procedures 
shall, at a minimum, provide the following:
            [(1) Methods by which the Director of the Central 
        Intelligence Agency and the Secretary of Defense can improve 
        communication and coordination in the planning, execution, and 
        sustainment of operations, including, as a minimum--
                    [(A) information exchange between senior officials 
                of the Central Intelligence Agency and senior officers 
                and officials of the Department of Defense when 
                planning for such an operation commences by either 
                organization; and
                    [(B) exchange of information between the Secretary 
                and the Director of the Central Intelligence Agency to 
                ensure that senior operational officials in both the 
                Department of Defense and the Central Intelligence 
                Agency have knowledge of the existence of the ongoing 
                operations of the other.
            [(2) When appropriate, in cases where the Department of 
        Defense and the Central Intelligence Agency are conducting 
        separate missions in the same geographical area, mutual 
        agreement on the tactical and strategic objectives for the 
        region and a clear delineation of operational responsibilities 
        to prevent conflict and duplication of effort.
    [(b) Implementation Report.--Not later than 180 days after the date 
of the enactment of the Act, the National Intelligence Director shall 
submit to the congressional defense committees (as defined in section 
101 of title 10, United States Code) and the congressional intelligence 
committees (as defined in section 3(7) of the National Security Act of 
1947 (50 U.S.C. 401a(7))) a report describing the procedures 
established pursuant to subsection (a) and the status of the 
implementation of those procedures.

[SEC. 1014. ROLE OF NATIONAL INTELLIGENCE DIRECTOR IN APPOINTMENT OF 
              CERTAIN OFFICIALS RESPONSIBLE FOR INTELLIGENCE-RELATED 
              ACTIVITIES.

    [Section 106 of the National Security Act of 1947 (50 U.S.C. 403-6) 
is amended by striking all after the heading and inserting the 
following:
    [``(a) Recommendation of NID in Certain Appointments.--(1) In the 
event of a vacancy in a position referred to in paragraph (2), the 
National Intelligence Director shall recommend to the President an 
individual for nomination to fill the vacancy.
    [``(2) Paragraph (1) applies to the following positions:
            [``(A) The Deputy National Intelligence Director.
            [``(B) The Director of the Central Intelligence Agency.
    [``(b) Concurrence of NID in Appointments to Positions in the 
Intelligence Community.--(1) In the event of a vacancy in a position 
referred to in paragraph (2), the head of the department or agency 
having jurisdiction over the position shall obtain the concurrence of 
the National Intelligence Director before appointing an individual to 
fill the vacancy or recommending to the President an individual to be 
nominated to fill the vacancy. If the Director does not concur in the 
recommendation, the head of the department or agency concerned may not 
fill the vacancy or make the recommendation to the President (as the 
case may be).
    [``(2) Paragraph (1) applies to the following positions:
            [``(A) The Director of the National Security Agency.
            [``(B) The Director of the National Reconnaissance Office.
            [``(C) The Director of the National Geospatial-Intelligence 
        Agency.
    [``(c) Consultation With National Intelligence Director in Certain 
Positions.--(1) In the event of a vacancy in a position referred to in 
paragraph (2), the head of the department or agency having jurisdiction 
over the position shall consult with the National Intelligence Director 
before appointing an individual to fill the vacancy or recommending to 
the President an individual to be nominated to fill the vacancy.
    [``(2) Paragraph (1) applies to the following positions:
            [``(A) The Director of the Defense Intelligence Agency.
            [``(B) The Assistant Secretary of State for Intelligence 
        and Research.
            [``(C) The Director of the Office of Intelligence of the 
        Department of Energy.
            [``(D) The Director of the Office of counterintelligence of 
        the Department of Energy.
            [``(E) The Assistant Secretary for Intelligence and 
        Analysis of the Department of the Treasury.
            [``(F) The Executive Assistant Director for Intelligence of 
        the Federal Bureau of Investigation or that officer's 
        successor.
            [``(G) The Under Secretary of Homeland Security for 
        Information Analysis and Infrastructure Protection.
            [``(H) The Deputy Assistant Commandant of the Coast Guard 
        for Intelligence.

[SEC. 1015. INITIAL APPOINTMENT OF THE NATIONAL INTELLIGENCE DIRECTOR.

    [(a) Initial Appointment of the National Intelligence Director.--
Notwithstanding section 102(a)(1) of the National Security Act of 1947, 
as added by section 1011(a), the individual serving as the Director of 
Central Intelligence on the date immediately preceding the date of the 
enactment of this Act may, at the discretion of the President, become 
the National Intelligence Director as of the date of the enactment of 
this Act.
    [(b) General References.--(1) Any reference to the Director of 
Central Intelligence in the Director's capacity as the head of the 
intelligence community in any law, regulation, document, paper, or 
other record of the United States shall be deemed to be a reference to 
the National Intelligence Director.
    [(2) Any reference to the Director of Central Intelligence in the 
Director's capacity as the head of the Central Intelligence Agency in 
any law, regulation, document, paper, or other record of the United 
States shall be deemed to be a reference to the Director of the Central 
Intelligence Agency.
    [(3) Any reference to the Deputy Director of Central Intelligence 
in the Deputy Director's capacity as deputy to the head of the 
intelligence community in any law, regulation, document, paper, or 
other record of the United States shall be deemed to be a reference to 
the Deputy National Intelligence Director.
    [(4) Any reference to the Deputy Director of Central Intelligence 
for Community Management in any law, regulation, document, paper, or 
other record of the United States shall be deemed to be a reference to 
the Deputy National Intelligence Director for Community Management and 
Resources.

[SEC. 1016. EXECUTIVE SCHEDULE MATTERS.

    [(a) Executive Schedule Level I.--Section 5312 of title 5, United 
States Code, is amended by adding the end the following new item:
            [``National Intelligence Director.''.
    [(b) Executive Schedule Level II.--Section 5313 of title 5, United 
States Code, is amended by adding at the end the following new items:
            [``Deputy National Intelligence Director.
            [``Director of the National counterterrorism Center.''.
    [(c) Executive Schedule Level IV.--Section 5315 of title 5, United 
States Code, is amended by striking the item relating to the Assistant 
Directors of Central Intelligence.

   [Subtitle B--National counterterrorism Center and Civil Liberties 
                              Protections

[SEC. 1021. NATIONAL COUNTERTERRORISM CENTER.

    [(a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.) is amended by adding at the end the following new 
section:

                  [``national counterterrorism center

    [``Sec. 119. (a) Establishment of Center.--There is within the 
Office of the National Intelligence Director a National 
counterterrorism Center.
    [``(b) Director of National counterterrorism Center.--There is a 
Director of the National counterterrorism Center, who shall be the head 
of the National counterterrorism Center, who shall be appointed by 
National Intelligence Director.
    [``(c) Supervision.--The Director of the National counterterrorism 
Center shall report to the National Intelligence Director on--
            [``(1) the budget and programs of the National 
        counterterrorism Center;
            [``(2) the activities of the Directorate of Intelligence of 
        the National counterterrorism Center under subsection (h);
            [``(3) the conduct of intelligence operations implemented 
        by other elements of the intelligence community; and
            [``(4) the planning and progress of joint counterterrorism 
        operations (other than intelligence operations).
The National Intelligence Director shall carry out this section through 
the Deputy National Intelligence Director for Operations.
    [``(d) Primary Missions.--The primary missions of the National 
counterterrorism Center shall be as follows:
            [``(1) To serve as the primary organization in the United 
        States Government for analyzing and integrating all 
        intelligence possessed or acquired by the United States 
        Government pertaining to terrorism and counterterrorism, 
        excepting intelligence pertaining exclusively to domestic 
        counterterrorism.
            [``(2) To conduct strategic operational planning for 
        counterterrorism activities, integrating all instruments of 
        national power, including diplomatic, financial, military, 
        intelligence, homeland security, and law enforcement activities 
        within and among agencies.
            [``(3) To support operational responsibilities assigned to 
        lead agencies for counterterrorism activities by ensuring that 
        such agencies have access to and receive intelligence needed to 
        accomplish their assigned activities.
            [``(4) To ensure that agencies, as appropriate, have access 
        to and receive all-source intelligence support needed to 
        execute their counterterrorism plans or perform independent, 
        alternative analysis.
    [``(e) Domestic counterterrorism Intelligence.--(1) The Center may, 
consistent with applicable law, the direction of the President, and the 
guidelines referred to in section 102A(b), receive intelligence 
pertaining exclusively to domestic counterterrorism from any Federal, 
State, or local government or other source necessary to fulfill its 
responsibilities and retain and disseminate such intelligence.
    [``(2) Any agency authorized to conduct counterterrorism activities 
may request information from the Center to assist it in its 
responsibilities, consistent with applicable law and the guidelines 
referred to in section 102A(b).
    [``(f) Duties and Responsibilities of Director.--The Director of 
the National counterterrorism Center shall--
            [``(1) serve as the principal adviser to the National 
        Intelligence Director on intelligence operations relating to 
        counterterrorism;
            [``(2) provide strategic guidance and plans for the 
        civilian and military counterterrorism efforts of the United 
        States Government and for the effective integration of 
        counterterrorism intelligence and operations across agency 
        boundaries, both inside and outside the United States;
            [``(3) advise the National Intelligence Director on the 
        extent to which the counterterrorism program recommendations 
        and budget proposals of the departments, agencies, and elements 
        of the United States Government conform to the priorities 
        established by the President;
            [``(4) disseminate terrorism information, including current 
        terrorism threat analysis, to the President, the Vice 
        President, the Secretaries of State, Defense, and Homeland 
        Security, the Attorney General, the Director of the Central 
        Intelligence Agency, and other officials of the executive 
        branch as appropriate, and to the appropriate committees of 
        Congress;
            [``(5) support the Department of Justice and the Department 
        of Homeland Security, and other appropriate agencies, in 
        fulfillment of their responsibilities to disseminate terrorism 
        information, consistent with applicable law, guidelines 
        referred to in section 102A(b), Executive Orders and other 
        Presidential guidance, to State and local government officials, 
        and other entities, and coordinate dissemination of terrorism 
        information to foreign governments as approved by the National 
        Intelligence Director;
            [``(6) consistent with priorities approved by the 
        President, assist the National Intelligence Director in 
        establishing requirements for the intelligence community for 
        the collection of terrorism information; and
            [``(7) perform such other duties as the National 
        Intelligence Director may prescribe or are prescribed by law.
    [``(g) Limitation.--The Director of the National counterterrorism 
Center may not direct the execution of counterterrorism operations.
    [``(h) Resolution of Disputes.--The National Intelligence Director 
shall resolve disagreements between the National counterterrorism 
Center and the head of a department, agency, or element of the United 
States Government on designations, assignments, plans, or 
responsibilities. The head of such a department, agency, or element may 
appeal the resolution of the disagreement by the National Intelligence 
Director to the President.
    [``(i) Directorate of Intelligence.--The Director of the National 
counterterrorism Center shall establish and maintain within the 
National counterterrorism Center a Directorate of Intelligence which 
shall have primary responsibility within the United States Government 
for analysis of terrorism and terrorist organizations (except for 
purely domestic terrorism and domestic terrorist organizations) from 
all sources of intelligence, whether collected inside or outside the 
United States.
    [``(j) Directorate of Strategic Planning.--The Director of the 
National counterterrorism Center shall establish and maintain within 
the National counterterrorism Center a Directorate of Strategic 
Planning which shall provide strategic guidance and plans for 
counterterrorism operations conducted by the United States 
Government.''.
    [(b) Clerical Amendment.--The table of sections for the National 
Security Act of 1947 is amended by inserting after the item relating to 
section 118 the following new item:

[``Sec. 119. National counterterrorism Center.''.

[SEC. 1022. CIVIL LIBERTIES PROTECTION OFFICER.

    [(a) Civil Liberties Protection Officer.--(1) Within the Office of 
the National Intelligence Director, there is a Civil Liberties 
Protection Officer who shall be appointed by the National Intelligence 
Director.
    [(2) The Civil Liberties Protection Officer shall report directly 
to the National Intelligence Director.
    [(b) Duties.--The Civil Liberties Protection Officer shall--
            [(1) ensure that the protection of civil liberties and 
        privacy is appropriately incorporated in the policies and 
        procedures developed for and implemented by the Office of the 
        National Intelligence Director and the elements of the 
        intelligence community within the National Intelligence 
        Program;
            [(2) oversee compliance by the Office and the National 
        Intelligence Director with requirements under the Constitution 
        and all laws, regulations, Executive orders, and implementing 
        guidelines relating to civil liberties and privacy;
            [(3) review and assess complaints and other information 
        indicating possible abuses of civil liberties and privacy in 
        the administration of the programs and operations of the Office 
        and the National Intelligence Director and, as appropriate, 
        investigate any such complaint or information;
            [(4) ensure that the use of technologies sustain, and do 
        not erode, privacy protections relating to the use, collection, 
        and disclosure of personal information;
            [(5) ensure that personal information contained in a system 
        of records subject to section 552a of title 5, United States 
        Code (popularly referred to as the `Privacy Act'), is handled 
        in full compliance with fair information practices as set out 
        in that section;
            [(6) conduct privacy impact assessments when appropriate or 
        as required by law; and
            [(7) perform such other duties as may be prescribed by the 
        National Intelligence Director or specified by law.
    [(c) Use of Agency Inspectors General.--When appropriate, the Civil 
Liberties Protection Officer may refer complaints to the Office of 
Inspector General having responsibility for the affected element of the 
department or agency of the intelligence community to conduct an 
investigation under paragraph (3) of subsection (b).

           [Subtitle C--Joint Intelligence Community Council

[SEC. 1031. JOINT INTELLIGENCE COMMUNITY COUNCIL.

    [(a) Establishment.--There is hereby established a Joint 
Intelligence Community Council.
    [(b) Functions.--(1) The Joint Intelligence Community Council shall 
provide advice to the National Intelligence Director as appropriate.
    [(2) The National Intelligence Director shall consult with the 
Joint Intelligence Community Council in developing guidance for the 
development of the annual National Intelligence Program budget.
    [(c) Membership.--The Joint Intelligence Community Council shall 
consist of the following:
            [(1) The National Intelligence Director, who shall chair 
        the Council.
            [(2) The Secretary of State.
            [(3) The Secretary of the Treasury.
            [(4) The Secretary of Defense.
            [(5) The Attorney General.
            [(6) The Secretary of Energy.
            [(7) The Secretary of Homeland Security.
            [(8) Such other officials of the executive branch as the 
        President may designate.

        [Subtitle D--Improvement of Human Intelligence (HUMINT)

[SEC. 1041. HUMAN INTELLIGENCE AS AN INCREASINGLY CRITICAL COMPONENT OF 
              THE INTELLIGENCE COMMUNITY.

    [It is a sense of Congress that--
            [(1) the human intelligence officers of the intelligence 
        community have performed admirably and honorably in the face of 
        great personal dangers;
            [(2) during an extended period of unprecedented investment 
        and improvements in technical collection means, the human 
        intelligence capabilities of the United States have not 
        received the necessary and commensurate priorities;
            [(3) human intelligence is becoming an increasingly 
        important capability to provide information on the asymmetric 
        threats to the national security of the United States;
            [(4) the continued development and improvement of a robust 
        and empowered and flexible human intelligence work force is 
        critical to identifying, understanding, and countering the 
        plans and intentions of the adversaries of the United States; 
        and
            [(5) an increased emphasis on, and resources applied to, 
        enhancing the depth and breadth of human intelligence 
        capabilities of the United States intelligence community must 
        be among the top priorities of the National Intelligence 
        Director.

[SEC. 1042. IMPROVEMENT OF HUMAN INTELLIGENCE CAPACITY.

    [Not later than 6 months after the date of the enactment of this 
Act, the National Intelligence Director shall submit to Congress a 
report on existing human intelligence (HUMINT) capacity which shall 
include a plan to implement changes, as necessary, to accelerate 
improvements to, and increase the capacity of, HUMINT across the 
intelligence community.

  [Subtitle E--Improvement of Education for the Intelligence Community

[SEC. 1051. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS UNDER 
              NATIONAL SECURITY EDUCATION PROGRAM.

    [(a) In General.--(1) Subsection (b)(2) of section 802 of the David 
L. Boren National Security Education Act of 1991 (50 U.S.C. 1902) is 
amended to read as follows:
            [``(2) will meet the requirements for obligated service 
        described in subsection (j); and''.
    [(2) Such section is further amended by adding at the end the 
following new subsection:
    [``(j) Requirements for Obligated Service in the Government.--(1) 
Each recipient of a scholarship or a fellowship under the program shall 
work in a specified national security position. In this subsection, the 
term `specified national security position' means a position of a 
department or agency of the United States that the Secretary certifies 
is appropriate to use the unique language and region expertise acquired 
by the recipient pursuant to the study for which scholarship or 
fellowship assistance (as the case may be) was provided under the 
program.
    [``(2) Each such recipient shall commence work in a specified 
national security position as soon as practicable but in no case later 
than two years after the completion by the recipient of the study for 
which scholarship or fellowship assistance (as the case may be) was 
provided under the program.
    [``(3) Each such recipient shall work in a specified national 
security position for a period specified by the Secretary, which period 
shall include--
            [``(A) in the case of a recipient of a scholarship, one 
        year of service for each year, or portion thereof, for which 
        such scholarship assistance was provided, and
            [``(B) in the case of a recipient of a fellowship, not less 
        than one nor more than three years for each year, or portion 
        thereof, for which such fellowship assistance was provided.
    [``(4) Recipients shall seek specified national security positions 
as follows:
            [``(A) In the Department of Defense or in any element of 
        the intelligence community.
            [``(B) In the Department of State or in the Department of 
        Homeland Security, if the recipient demonstrates to the 
        Secretary that no position is available in the Department of 
        Defense or in any element of the intelligence community.
            [``(C) In any other Federal department or agency not 
        referred to in subparagraphs (A) and (B), if the recipient 
        demonstrates to the Secretary that no position is available in 
        a Federal department or agency specified in such paragraphs.''.
    [(b) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out subsection (j) of section 802 of the David L. 
Boren National Security Education Act of 1991, as added by subsection 
(a). In prescribing such regulations, the Secretary shall establish 
standards that recipients of scholarship and fellowship assistance 
under the program under section 802 of the David L. Boren National 
Security Education Act of 1991 are required to demonstrate in order to 
satisfy the requirement of a good faith effort to gain employment as 
required under such subsection.
    [(c) Applicability.--(1) The amendments made by subsection (a) 
shall apply with respect to service agreements entered into under the 
David L. Boren National Security Education Act of 1991 on or after the 
date of the enactment of this Act.
    [(2) The amendments made by subsection (a) shall not affect the 
force, validity, or terms of any service agreement entered into under 
the David L. Boren National Security Education Act of 1991 before the 
date of the enactment of this Act that is in force as of that date.

[SEC. 1052. IMPROVEMENTS TO THE NATIONAL FLAGSHIP LANGUAGE INITIATIVE.

    [(a) Increase in Annual Authorization of Appropriations.--(1) Title 
VIII of the Intelligence Authorization Act for Fiscal Year 1992 (Public 
Law 102-183; 105 Stat. 1271), as amended by section 311(c) of the 
Intelligence Authorization Act for Fiscal Year 1994 (Public Law 103-
178; 107 Stat. 2037) and by section 333(b) of the Intelligence 
Authorization Act for Fiscal Year 2003 (Public Law 107-306; 116 Stat. 
2397), is amended in subsection (a) of section 811 by striking ``there 
is authorized to be appropriated to the Secretary for each fiscal year, 
beginning with fiscal year 2003, $10,000,000,'' and inserting ``there 
is authorized to be appropriated to the Secretary for each of fiscal 
years 2003 and 2004, $10,000,000, and for fiscal year 2005 and each 
subsequent fiscal year, $12,000,000,''.
    [(2) Subsection (b) of such section is amended by inserting ``for 
fiscal years 2003 and 2004 only'' after ``authorization of 
appropriations under subsection (a)''.
    [(b) Requirement for Employment Agreements.--(1) Section 802(i) of 
the David L. Boren National Security Education Act of 1991 (50 U.S.C. 
1902(i)) is amended by adding at the end the following new paragraph:
    [``(5)(A) In the case of an undergraduate or graduate student that 
participates in training in programs under paragraph (1), the student 
shall enter into an agreement described in subsection (b), other than 
such a student who has entered into such an agreement pursuant to 
subparagraph (A)(ii) or (B)(ii) of section 802(a)(1).
    [``(B) In the case of an employee of an agency or department of the 
Federal Government that participates in training in programs under 
paragraph (1), the employee shall agree in writing--
            [``(i) to continue in the service of the agency or 
        department of the Federal Government employing the employee for 
        the period of such training;
            [``(ii) to continue in the service of such agency or 
        department employing the employee following completion of such 
        training for a period of two years for each year, or part of 
        the year, of such training;
            [``(iii) to reimburse the United States for the total cost 
        of such training (excluding the employee's pay and allowances) 
        provided to the employee if, before the completion by the 
        employee of the training, the employment of the employee by the 
        agency or department is terminated due to misconduct by the 
        employee or by the employee voluntarily; and
            [``(iv) to reimburse the United States if, after completing 
        such training, the employment of the employee by the agency or 
        department is terminated either by the agency or department due 
        to misconduct by the employee or by the employee voluntarily, 
        before the completion by the employee of the period of service 
        required in clause (ii), in an amount that bears the same ratio 
        to the total cost of the training (excluding the employee's pay 
        and allowances) provided to the employee as the unserved 
        portion of such period of service bears to the total period of 
        service under clause (ii).
    [``(C) Subject to subparagraph (D), the obligation to reimburse the 
United States under an agreement under subparagraph (A) is for all 
purposes a debt owing the United States.
    [``(D) The head of an element of the intelligence community may 
release an employee, in whole or in part, from the obligation to 
reimburse the United States under an agreement under subparagraph (A) 
when, in the discretion of the head of the element, the head of the 
element determines that equity or the interests of the United States so 
require.''.
    [(2) The amendment made by paragraph (1) shall apply to training 
that begins on or after the date that is 90 days after the date of the 
enactment of this Act.
    [(c) Increase in the Number of Participating Educational 
Institutions.--The Secretary of Defense shall take such steps as the 
Secretary determines will increase the number of qualified educational 
institutions that receive grants under the National Flagship Language 
Initiative to establish, operate, or improve activities designed to 
train students in programs in a range of disciplines to achieve 
advanced levels of proficiency in those foreign languages that the 
Secretary identifies as being the most critical in the interests of the 
national security of the United States.
    [(d) Clarification of Authority to Support Studies Abroad.--
Educational institutions that receive grants under the National 
Flagship Language Initiative may support students who pursue total 
immersion foreign language studies overseas of foreign languages that 
are critical to the national security of the United States.

[SEC. 1053. ESTABLISHMENT OF SCHOLARSHIP PROGRAM FOR ENGLISH LANGUAGE 
              STUDIES FOR HERITAGE COMMUNITY CITIZENS OF THE UNITED 
              STATES WITHIN THE NATIONAL SECURITY EDUCATION PROGRAM.

    [(a) Scholarship Program for English Language Studies for Heritage 
Community Citizens of the United States.--(1) Subsection (a)(1) of 
section 802 of the David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1902) is amended--
            [(A) by striking ``and'' at the end of subparagraph (C);
            [(B) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            [(C) by adding at the end the following new subparagraph:
                    [``(E) awarding scholarships to students who--
                            [``(i) are United States citizens who--
                                    [``(I) are native speakers 
                                (commonly referred to as heritage 
                                community residents) of a foreign 
                                language that is identified as critical 
                                to the national security interests of 
                                the United States who should be 
                                actively recruited for employment by 
                                Federal security agencies with a need 
                                for linguists; and
                                    [``(II) are not proficient at a 
                                professional level in the English 
                                language with respect to reading, 
                                writing, and interpersonal skills 
                                required to carry out the national 
                                security interests of the United 
                                States, as determined by the Secretary,
                        to enable such students to pursue English 
                        language studies at an institution of higher 
                        education of the United States to attain 
                        proficiency in those skills; and
                            [``(ii) enter into an agreement to work in 
                        a national security position or work in the 
                        field of education in the area of study for 
                        which the scholarship was awarded in a similar 
                        manner (as determined by the Secretary) as 
                        agreements entered into pursuant to subsection 
                        (b)(2)(A).''.
    [(2) The matter following subsection (a)(2) of such section is 
amended--
            [(A) in the first sentence, by inserting ``or for the 
        scholarship program under paragraph (1)(E)'' after ``under 
        paragraph (1)(D) for the National Flagship Language Initiative 
        described in subsection (i)''; and
            [(B) by adding at the end the following: ``For the 
        authorization of appropriations for the scholarship program 
        under paragraph (1)(E), see section 812.''.
    [(3) Section 803(d)(4)(E) of such Act (50 U.S.C. 1903(d)(4)(E)) is 
amended by inserting before the period the following: ``and section 
802(a)(1)(E) (relating to scholarship programs for advanced English 
language studies by heritage community residents)''.
    [(b) Funding.--The David L. Boren National Security Education Act 
of 1991 (50 U.S.C. 1901 et seq.) is amended by adding at the end the 
following new section:

[``SEC. 812. FUNDING FOR SCHOLARSHIP PROGRAM FOR CERTAIN HERITAGE 
              COMMUNITY RESIDENTS.

    [``There is authorized to be appropriated to the Secretary for each 
fiscal year, beginning with fiscal year 2005, $4,000,000, to carry out 
the scholarship programs for English language studies by certain 
heritage community residents under section 802(a)(1)(E).

[SEC. 1054. SENSE OF CONGRESS WITH RESPECT TO LANGUAGE AND EDUCATION 
              FOR THE INTELLIGENCE COMMUNITY; REPORTS.

    [(a) Sense of Congress.--It is the sense of Congress that there 
should be within the Office of the National Intelligence Director a 
senior official responsible to assist the National Intelligence 
Director in carrying out the Director's responsibilities for 
establishing policies and procedure for foreign language education and 
training of the intelligence community. The duties of such official 
should include the following:
            [(1) Overseeing and coordinating requirements for foreign 
        language education and training of the intelligence community.
            [(2) Establishing policy, standards, and priorities 
        relating to such requirements.
            [(3) Identifying languages that are critical to the 
        capability of the intelligence community to carry out national 
        security activities of the United States.
            [(4) Monitoring the allocation of resources for foreign 
        language education and training in order to ensure the 
        requirements of the intelligence community with respect to 
        foreign language proficiency are met.
    [(b) Reports.--Not later than one year after the date of the 
enactment of this Act, the National Intelligence Director shall submit 
to Congress the following reports:
            [(1) A report that identifies--
                    [(A) skills and processes involved in learning a 
                foreign language; and
                    [(B) characteristics and teaching techniques that 
                are most effective in teaching foreign languages.
            [(2)(A) A report that identifies foreign language heritage 
        communities, particularly such communities that include 
        speakers of languages that are critical to the national 
        security of the United States.
            [(B) For purposes of subparagraph (A), the term ``foreign 
        language heritage community'' means a community of residents or 
        citizens of the United States--
                    [(i) who are native speakers of, or who have 
                fluency in, a foreign language; and
                    [(ii) who should be actively recruited for 
                employment by Federal security agencies with a need for 
                linguists.
            [(3) A report on--
                    [(A) the estimated cost of establishing a program 
                under which the heads of elements of the intelligence 
                community agree to repay employees of the intelligence 
                community for any student loan taken out by that 
                employee for the study of foreign languages critical 
                for the national security of the United States; and
                    [(B) the effectiveness of such a program in 
                recruiting and retaining highly qualified personnel in 
                the intelligence community.

[SEC. 1055. ADVANCEMENT OF FOREIGN LANGUAGES CRITICAL TO THE 
              INTELLIGENCE COMMUNITY.

    [(a) In General.--Title X of the National Security Act of 1947 (50 
U.S.C.) is amended--
            [(1) by inserting before section 1001 (50 U.S.C. 441g) the 
        following:

                [``Subtitle A--Science and Technology'';

        and
            [(2) by adding at the end the following new subtitles:

                [``Subtitle B--Foreign Languages Program

    [``program on advancement of foreign languages critical to the 
                         intelligence community

    [``Sec. 1011. (a) Establishment of Program.--The Secretary of 
Defense and the National Intelligence Director may jointly establish a 
program to advance foreign languages skills in languages that are 
critical to the capability of the intelligence community to carry out 
national security activities of the United States (hereinafter in this 
subtitle referred to as the `Foreign Languages Program').
    [``(b) Identification of Requisite Actions.--In order to carry out 
the Foreign Languages Program, the Secretary of Defense and the 
National Intelligence Director shall jointly determine actions required 
to improve the education of personnel in the intelligence community in 
foreign languages that are critical to the capability of the 
intelligence community to carry out national security activities of the 
United States to meet the long-term intelligence needs of the United 
States.

                       [``education partnerships

    [``Sec. 1012. (a) In General.--In carrying out the Foreign 
Languages Program, the head of a department or agency containing an 
element of an intelligence community entity may enter into one or more 
education partnership agreements with educational institutions in the 
United States in order to encourage and enhance the study of foreign 
languages that are critical to the capability of the intelligence 
community to carry out national security activities of the United 
States in educational institutions.
    [``(b) Assistance Provided Under Educational Partnership 
Agreements.--Under an educational partnership agreement entered into 
with an educational institution pursuant to this section, the head of 
an element of an intelligence community entity may provide the 
following assistance to the educational institution:
            [``(1) The loan of equipment and instructional materials of 
        the element of the intelligence community entity to the 
        educational institution for any purpose and duration that the 
        head determines to be appropriate.
            [``(2) Notwithstanding any other provision of law relating 
        to transfers of surplus property, the transfer to the 
        educational institution of any computer equipment, or other 
        equipment, that is--
                    [``(A) commonly used by educational institutions;
                    [``(B) surplus to the needs of the entity; and
                    [``(C) determined by the head of the element to be 
                appropriate for support of such agreement.
            [``(3) The provision of dedicated personnel to the 
        educational institution--
                    [``(A) to teach courses in foreign languages that 
                are critical to the capability of the intelligence 
                community to carry out national security activities of 
                the United States; or
                    [``(B) to assist in the development of such courses 
                and materials for the institution.
            [``(4) The involvement of faculty and students of the 
        educational institution in research projects of the element of 
        the intelligence community entity.
            [``(5) Cooperation with the educational institution in 
        developing a program under which students receive academic 
        credit at the educational institution for work on research 
        projects of the element of the intelligence community entity.
            [``(6) The provision of academic and career advice and 
        assistance to students of the educational institution.
            [``(7) The provision of cash awards and other items that 
        the head of the element of the intelligence community entity 
        determines to be appropriate.

                         [``voluntary services

    [``Sec. 1013. (a) Authority To Accept Services.--Notwithstanding 
section 1342 of title 31, United States Code, and subject to subsection 
(b), the Foreign Languages Program under section 1011 shall include 
authority for the head of an element of an intelligence community 
entity to accept from any individual who is dedicated personnel (as 
defined in section 1016(3)) voluntary services in support of the 
activities authorized by this subtitle.
    [``(b) Requirements and Limitations.--(1) In accepting voluntary 
services from an individual under subsection (a), the head of the 
element shall--
            [``(A) supervise the individual to the same extent as the 
        head of the element would supervise a compensated employee of 
        that element providing similar services; and
            [``(B) ensure that the individual is licensed, privileged, 
        has appropriate educational or experiential credentials, or is 
        otherwise qualified under applicable law or regulations to 
        provide such services.
    [``(2) In accepting voluntary services from an individual under 
subsection (a), the head of an element of the intelligence community 
entity may not--
            [``(A) place the individual in a policymaking position, or 
        other position performing inherently government functions; or
            [``(B) compensate the individual for the provision of such 
        services.
    [``(c) Authority To Recruit and Train Individuals Providing 
Services.--The head of an element of an intelligence community entity 
may recruit and train individuals to provide voluntary services 
accepted under subsection (a).
    [``(d) Status of Individuals Providing Services.--(1) Subject to 
paragraph (2), while providing voluntary services accepted under 
subsection (a) or receiving training under subsection (c), an 
individual shall be considered to be an employee of the Federal 
Government only for purposes of the following provisions of law:
            [``(A) Section 552a of title 5, United States Code 
        (relating to maintenance of records on individuals).
            [``(B) Chapter 11 of title 18, United States Code (relating 
        to conflicts of interest).
    [``(2)(A) With respect to voluntary services accepted under 
paragraph (1) provided by an individual that are within the scope of 
the services so accepted, the individual is deemed to be a volunteer of 
a governmental entity or nonprofit institution for purposes of the 
Volunteer Protection Act of 1997 (42 U.S.C. 14501 et seq.).
    [``(B) In the case of any claim against such an individual with 
respect to the provision of such services, section 4(d) of such Act (42 
U.S.C. 14503(d)) shall not apply.
    [``(3) Acceptance of voluntary services under this section shall 
have no bearing on the issuance or renewal of a security clearance.
    [``(e) Reimbursement of Incidental Expenses.--(1) The head of an 
element of the intelligence community entity may reimburse an 
individual for incidental expenses incurred by the individual in 
providing voluntary services accepted under subsection (a). The head of 
an element of the intelligence community entity shall determine which 
expenses are eligible for reimbursement under this subsection.
    [``(2) Reimbursement under paragraph (1) may be made from 
appropriated or nonappropriated funds.
    [``(f) Authority To Install Equipment.--(1) The head of an element 
of the intelligence community may install telephone lines and any 
necessary telecommunication equipment in the private residences of 
individuals who provide voluntary services accepted under subsection 
(a).
    [``(2) The head of an element of the intelligence community may pay 
the charges incurred for the use of equipment installed under paragraph 
(1) for authorized purposes.
    [``(3) Notwithstanding section 1348 of title 31, United States 
Code, the head of an element of the intelligence community entity may 
use appropriated funds or nonappropriated funds of the element in 
carrying out this subsection.

                             [``regulations

    [``Sec. 1014. (a) In General.--The Secretary of Defense and the 
National Intelligence Director jointly shall promulgate regulations 
necessary to carry out the Foreign Languages Program authorized under 
this subtitle.
    [``(b) Elements of the Intelligence Community.--Each head of an 
element of an intelligence community entity shall prescribe regulations 
to carry out sections 1012 and 1013 with respect to that element 
including the following:
            [``(1) Procedures to be utilized for the acceptance of 
        voluntary services under section 1013.
            [``(2) Procedures and requirements relating to the 
        installation of equipment under section 1013(g).

                             [``definitions

    [``Sec. 1015. In this subtitle:
            [``(1) The term `intelligence community entity' means an 
        agency, office, bureau, or element referred to in subparagraphs 
        (B) through (K) of section 3(4).
            [``(2) The term `educational institution' means--
                    [``(A) a local educational agency (as that term is 
                defined in section 9101(26) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7801(26))),
                    [``(B) an institution of higher education (as 
                defined in section 102 of the Higher Education Act of 
                1965 (20 U.S.C. 1002) other than institutions referred 
                to in subsection (a)(1)(C) of such section), or
                    [``(C) any other nonprofit institution that 
                provides instruction of foreign languages in languages 
                that are critical to the capability of the intelligence 
                community to carry out national security activities of 
                the United States.
            [``(3) The term `dedicated personnel' means employees of 
        the intelligence community and private citizens (including 
        former civilian employees of the Federal Government who have 
        been voluntarily separated, and members of the United States 
        Armed Forces who have been honorably discharged or generally 
        discharged under honorable circumstances, and rehired on a 
        voluntary basis specifically to perform the activities 
        authorized under this subtitle).

             [``Subtitle C--Additional Education Provisions

 [``assignment of intelligence community personnel as language students

    [``Sec. 1021. (a) In General.--(1) The National Intelligence 
Director, acting through the heads of the elements of the intelligence 
community, may provide for the assignment of military and civilian 
personnel described in paragraph (2) as students at accredited 
professional, technical, or other institutions of higher education for 
training at the graduate or undergraduate level in foreign languages 
required for the conduct of duties and responsibilities of such 
positions.
    [``(2) Personnel referred to in paragraph (1) are personnel of the 
elements of the intelligence community who serve in analysts positions 
in such elements and who require foreign language expertise required 
for the conduct of duties and responsibilities of such positions.
    [``(b) Authority for Reimbursement of Costs of Tuition and 
Training.--(1) The Director may reimburse an employee assigned under 
subsection (a) for the total cost of the training described in 
subsection (a), including costs of educational and supplementary 
reading materials.
    [``(2) The authority under paragraph (1) shall apply to employees 
who are assigned on a full-time or part-time basis.
    [``(3) Reimbursement under paragraph (1) may be made from 
appropriated or nonappropriated funds.
    [``(c) Relationship to Compensation as an Analyst.--Reimbursement 
under this section to an employee who is an analyst is in addition to 
any benefits, allowances, travels, or other compensation the employee 
is entitled to by reason of serving in such an analyst position.''.
    [(b) Clerical Amendment.--The table of contents for the National 
Security Act of 1947 is amended by striking the item relating to 
section 1001 and inserting the following new items:

                 [``Subtitle A--Science and Technology

[``Sec. 1001. Scholarships and work-study for pursuit of graduate 
                            degrees in science and technology.
                [``Subtitle B--Foreign Languages Program

[``Sec. 1011. Program on advancement of foreign languages critical to 
                            the intelligence community.
[``Sec. 1012. Education partnerships.
[``Sec. 1013. Voluntary services.
[``Sec. 1014. Regulations.
[``Sec. 1015. Definitions.
             [``Subtitle C--Additional Education Provisions

[``Sec. 1021. Assignment of intelligence community personnel as 
                            language students.''.

[SEC. 1056. PILOT PROJECT FOR CIVILIAN LINGUIST RESERVE CORPS.

    [(a) Pilot Project.--The National Intelligence Director shall 
conduct a pilot project to establish a Civilian Linguist Reserve Corps 
comprised of United States citizens with advanced levels of proficiency 
in foreign languages who would be available upon a call of the 
President to perform such service or duties with respect to such 
foreign languages in the Federal Government as the President may 
specify.
    [(b) Conduct of Project.--Taking into account the findings and 
recommendations contained in the report required under section 325 of 
the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 
107-306; 116 Stat. 2393), in conducting the pilot project under 
subsection (a) the National Intelligence Director shall--
            [(1) identify several foreign languages that are critical 
        for the national security of the United States;
            [(2) identify United States citizens with advanced levels 
        of proficiency in those foreign languages who would be 
        available to perform the services and duties referred to in 
        subsection (a); and
            [(3) implement a call for the performance of such services 
        and duties.
    [(c) Duration of Project.--The pilot project under subsection (a) 
shall be conducted for a three-year period.
    [(d) Authority To Enter Into Contracts.--The National Intelligence 
Director may enter into contracts with appropriate agencies or entities 
to carry out the pilot project under subsection (a).
    [(e) Reports.--(1) The National Intelligence Director shall submit 
to Congress an initial and a final report on the pilot project 
conducted under subsection (a).
    [(2) Each report required under paragraph (1) shall contain 
information on the operation of the pilot project, the success of the 
pilot project in carrying out the objectives of the establishment of a 
Civilian Linguist Reserve Corps, and recommendations for the 
continuation or expansion of the pilot project.
    [(3) The final report shall be submitted not later than 6 months 
after the completion of the project.
    [(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the National Intelligence Director such sums as are 
necessary for each of fiscal years 2005, 2006, and 2007 in order to 
carry out the pilot project under subsection (a).

[SEC. 1057. CODIFICATION OF ESTABLISHMENT OF THE NATIONAL VIRTUAL 
              TRANSLATION CENTER.

    [(a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.), as amended by section 1021(a), is further amended 
by adding at the end the following new section:

                 [``national virtual translation center

    [``Sec. 120. (a) In General.--There is an element of the 
intelligence community known as the National Virtual Translation Center 
under the direction of the National Intelligence Director.
    [``(b) Function.--The National Virtual Translation Center shall 
provide for timely and accurate translations of foreign intelligence 
for all other elements of the intelligence community.
    [``(c) Facilitating Access to Translations.--In order to minimize 
the need for a central facility for the National Virtual Translation 
Center, the Center shall--
            [``(1) use state-of-the-art communications technology;
            [``(2) integrate existing translation capabilities in the 
        intelligence community; and
            [``(3) use remote-connection capacities.
    [``(d) Use of Secure Facilities.--Personnel of the National Virtual 
Translation Center may carry out duties of the Center at any location 
that--
            [``(1) has been certified as a secure facility by an agency 
        or department of the United States; and
            [``(2) the National Intelligence Director determines to be 
        appropriate for such purpose.''.
    [(b) Clerical Amendment.--The table of sections for that Act, as 
amended by section 1021(b), is further amended by inserting after the 
item relating to section 119 the following new item:

[``Sec. 120. National Virtual Translation Center.''.

[SEC. 1058. REPORT ON RECRUITMENT AND RETENTION OF QUALIFIED 
              INSTRUCTORS OF THE DEFENSE LANGUAGE INSTITUTE.

    [(a) Study.--The Secretary of Defense shall conduct a study on 
methods to improve the recruitment and retention of qualified foreign 
language instructors at the Foreign Language Center of the Defense 
Language Institute. In conducting the study, the Secretary shall 
consider, in the case of a foreign language instructor who is an alien, 
to expeditiously adjust the status of the alien from a temporary status 
to that of an alien lawfully admitted for permanent residence.
    [(b) Report.--(1) Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
appropriate congressional committees a report on the study conducted 
under subsection (a), and shall include in that report recommendations 
for such changes in legislation and regulation as the Secretary 
determines to be appropriate.
    [(2) Definition.--In this subsection, the term ``appropriate 
congressional committees'' means the following:
            [(A) The Select Committee on Intelligence and the Committee 
        on Armed Services of the Senate.
            [(B) The Permanent Select Committee on Intelligence and the 
        Committee on Armed Services of the House of Representatives.

    [Subtitle F--Additional Improvements of Intelligence Activities

[SEC. 1061. PERMANENT EXTENSION OF CENTRAL INTELLIGENCE AGENCY 
              VOLUNTARY SEPARATION INCENTIVE PROGRAM.

    [(a) Extension of Program.--Section 2 of the Central Intelligence 
Agency Voluntary Separation Pay Act (50 U.S.C. 403-4 note) is amended--
            [(1) by striking subsection (f); and
            [(2) by redesignating subsections (g) and (h) as 
        subsections (f) and (g), respectively.
    [(b) Termination of Funds Remittance Requirement.--(1) Section 2 of 
such Act (50 U.S.C. 403-4 note) is further amended by striking 
subsection (i).
    [(2) Section 4(a)(2)(B)(ii) of the Federal Workforce Restructuring 
Act of 1994 (5 U.S.C. 8331 note) is amended by striking ``, or section 
2 of the Central Intelligence Agency Voluntary Separation Pay Act 
(Public Law 103-36; 107 Stat. 104)''.

[SEC. 1062. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES PANEL.

    [The National Security Agency Act of 1959 (50 U.S.C. 402 note) is 
amended by adding at the end the following new section:
    [``Sec. 19. (a) There is established the National Security Agency 
Emerging Technologies Panel. The panel is a standing panel of the 
National Security Agency. The panel shall be appointed by, and shall 
report directly to, the Director.
    [``(b) The National Security Agency Emerging Technologies Panel 
shall study and assess, and periodically advise the Director on, the 
research, development, and application of existing and emerging science 
and technology advances, advances on encryption, and other topics.
    [``(c) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply with respect to the National Security Agency Emerging 
Technologies Panel.''.

              [Subtitle G--Conforming and Other Amendments

[SEC. 1071. CONFORMING AMENDMENTS RELATING TO ROLES OF NATIONAL 
              INTELLIGENCE DIRECTOR AND DIRECTOR OF THE CENTRAL 
              INTELLIGENCE AGENCY.

    [(a) National Security Act of 1947.--(1) The National Security Act 
of 1947 (50 U.S.C. 401 et seq.) is amended by striking ``Director of 
Central Intelligence'' each place it appears in the following 
provisions and inserting ``National Intelligence Director'':
            [(A) Section 3(5)(B) (50 U.S.C. 401a(5)(B)).
            [(B) Section 101(h)(2)(A) (50 U.S.C. 402(h)(2)(A)).
            [(C) Section 101(h)(5) (50 U.S.C. 402(h)(5)).
            [(D) Section 101(i)(2)(A) (50 U.S.C. 402(i)(2)(A)).
            [(E) Section 101(j) (50 U.S.C. 402(j)).
            [(F) Section 105(a) (50 U.S.C. 403-5(a)).
            [(G) Section 105(b)(6)(A) (50 U.S.C. 403-5(b)(6)(A)).
            [(H) Section 105B(a)(1) (50 U.S.C. 403-5b(a)(1)).
            [(I) Section 105B(b) (50 U.S.C. 403-5b(b)), the first place 
        it appears.
            [(J) Section 110(b) (50 U.S.C. 404e(b)).
            [(K) Section 110(c) (50 U.S.C. 404e(c)).
            [(L) Section 112(a)(1) (50 U.S.C. 404g(a)(1)).
            [(M) Section 112(d)(1) (50 U.S.C. 404g(d)(1)).
            [(N) Section 113(b)(2)(A) (50 U.S.C. 404h(b)(2)(A)).
            [(O) Section 114(a)(1) (50 U.S.C. 404i(a)(1)).
            [(P) Section 114(b)(1) (50 U.S.C. 404i(b)(1)).
            [(Q) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
            [(R) Section 115(b) (50 U.S.C. 404j(b)).
            [(S) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).
            [(T) Section 116(a) (50 U.S.C. 404k(a)).
            [(U) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
            [(V) Section 303(a) (50 U.S.C. 405(a)), both places it 
        appears.
            [(W) Section 501(d) (50 U.S.C. 413(d)).
            [(X) Section 502(a) (50 U.S.C. 413a(a)).
            [(Y) Section 502(c) (50 U.S.C. 413a(c)).
            [(Z) Section 503(b) (50 U.S.C. 413b(b)).
            [(AA) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
            [(BB) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
            [(CC) Section 506A(a)(1) (50 U.S.C. 415a-1(a)(1)).
            [(DD) Section 603(a) (50 U.S.C. 423(a)).
            [(EE) Section 702(a)(1) (50 U.S.C. 432(a)(1)).
            [(FF) Section 702(a)(6)(B)(viii) (50 U.S.C. 
        432(a)(6)(B)(viii)).
            [(GG) Section 702(b)(1) (50 U.S.C. 432(b)(1)), both places 
        it appears.
            [(HH) Section 703(a)(1) (50 U.S.C. 432a(a)(1)).
            [(II) Section 703(a)(6)(B)(viii) (50 U.S.C. 
        432a(a)(6)(B)(viii)).
            [(JJ) Section 703(b)(1) (50 U.S.C. 432a(b)(1)), both places 
        it appears.
            [(KK) Section 704(a)(1) (50 U.S.C. 432b(a)(1)).
            [(LL) Section 704(f)(2)(H) (50 U.S.C. 432b(f)(2)(H)).
            [(MM) Section 704(g)(1)) (50 U.S.C. 432b(g)(1)), both 
        places it appears.
            [(NN) Section 1001(a) (50 U.S.C. 441g(a)).
            [(OO) Section 1102(a)(1) (50 U.S.C. 442a(a)(1)).
            [(PP) Section 1102(b)(1) (50 U.S.C. 442a(b)(1)).
            [(QQ) Section 1102(c)(1) (50 U.S.C. 442a(c)(1)).
            [(RR) Section 1102(d) (50 U.S.C. 442a(d)).
    [(2) That Act is further amended by striking ``of Central 
Intelligence'' each place it appears in the following provisions:
            [(A) Section 105(a)(2) (50 U.S.C. 403-5(a)(2)).
            [(B) Section 105B(a)(2) (50 U.S.C. 403-5b(a)(2)).
            [(C) Section 105B(b) (50 U.S.C. 403-5b(b)), the second 
        place it appears.
    [(3) That Act is further amended by striking ``Director'' each 
place it appears in the following provisions and inserting ``National 
Intelligence Director'':
            [(A) Section 114(c) (50 U.S.C. 404i(c)).
            [(B) Section 116(b) (50 U.S.C. 404k(b)).
            [(C) Section 1001(b) (50 U.S.C. 441g(b)).
            [(D) Section 1001(c) (50 U.S.C. 441g(c)), the first place 
        it appears.
            [(E) Section 1001(d)(1)(B) (50 U.S.C. 441g(d)(1)(B)).
            [(F) Section 1001(e) (50 U.S.C. 441g(e)), the first place 
        it appears.
    [(4) Section 114A of that Act (50 U.S.C. 404i-1) is amended by 
striking ``Director of Central Intelligence'' and inserting ``National 
Intelligence Director, the Director of the Central Intelligence 
Agency''
    [(5) Section 504(a)(2) of that Act (50 U.S.C. 414(a)(2)) is amended 
by striking ``Director of Central Intelligence'' and inserting 
``Director of the Central Intelligence Agency''.
    [(6) Section 701 of that Act (50 U.S.C. 431) is amended--
            [(A) in subsection (a), by striking ``Operational files of 
        the Central Intelligence Agency may be exempted by the Director 
        of Central Intelligence'' and inserting ``The Director of the 
        Central Intelligence Agency, with the coordination of the 
        National Intelligence Director, may exempt operational files of 
        the Central Intelligence Agency''; and
            [(B) in subsection (g)(1), by striking ``Director of 
        Central Intelligence'' and inserting ``Director of the Central 
        Intelligence Agency and the National Intelligence Director''.
    [(7) The heading for section 114 of that Act (50 U.S.C. 404i) is 
amended to read as follows:

[``additional annual reports from the national intelligence director''.

    [(b) Central Intelligence Agency Act of 1949.--(1) The Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) is amended by 
striking ``Director of Central Intelligence'' each place it appears in 
the following provisions and inserting ``National Intelligence 
Director'':
            [(A) Section 6 (50 U.S.C. 403g).
            [(B) Section 17(f) (50 U.S.C. 403q(f)), both places it 
        appears.
    [(2) That Act is further amended by striking ``of Central 
Intelligence'' in each of the following provisions:
            [(A) Section 2 (50 U.S.C. 403b).
            [(B) Section 16(c)(1)(B) (50 U.S.C. 403p(c)(1)(B)).
            [(C) Section 17(d)(1) (50 U.S.C. 403q(d)(1)).
            [(D) Section 20(c) (50 U.S.C. 403t(c)).
    [(3) That Act is further amended by striking ``Director of Central 
Intelligence'' each place it appears in the following provisions and 
inserting ``Director of the Central Intelligence Agency'':
            [(A) Section 14(b) (50 U.S.C. 403n(b)).
            [(B) Section 16(b)(2) (50 U.S.C. 403p(b)(2)).
            [(C) Section 16(b)(3) (50 U.S.C. 403p(b)(3)), both places 
        it appears.
            [(D) Section 21(g)(1) (50 U.S.C. 403u(g)(1)).
            [(E) Section 21(g)(2) (50 U.S.C. 403u(g)(2)).
    [(c) Central Intelligence Agency Retirement Act.--Section 101 of 
the Central Intelligence Agency Retirement Act (50 U.S.C. 2001) is 
amended by striking paragraph (2) and inserting the following new 
paragraph (2):
            [``(2) Director.--The term `Director' means the Director of 
        the Central Intelligence Agency.''.
    [(d) CIA Voluntary Separation Pay Act.--Subsection (a)(1) of 
section 2 of the Central Intelligence Agency Voluntary Separation Pay 
Act (50 U.S.C. 2001 note) is amended to read as follows:
            [``(1) the term `Director' means the Director of the 
        Central Intelligence Agency;''.
    [(e) Foreign Intelligence Surveillance Act of 1978.--(1) The 
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) 
is amended by striking ``Director of Central Intelligence'' each place 
it appears and inserting ``National Intelligence Director''.
    [(f) Classified Information Procedures Act.--Section 9(a) of the 
Classified Information Procedures Act (5 U.S.C. App.) is amended by 
striking ``Director of Central Intelligence'' and inserting ``National 
Intelligence Director''.
    [(g) Intelligence Authorization Acts.--
            [(1) Public law 103-359.--Section 811(c)(6)(C) of the 
        counterintelligence and Security Enhancements Act of 1994 
        (title VIII of Public Law 103-359) is amended by striking 
        ``Director of Central Intelligence'' and inserting ``National 
        Intelligence Director''.
            [(2) Public law 107-306.--(A) The Intelligence 
        Authorization Act for Fiscal Year 2003 (Public Law 107-306) is 
        amended by striking ``Director of Central Intelligence, acting 
        as the head of the intelligence community,'' each place it 
        appears in the following provisions and inserting ``National 
        Intelligence Director'':
                    [(i) Section 313(a) (50 U.S.C. 404n(a)).
                    [(ii) Section 343(a)(1) (50 U.S.C. 404n-2(a)(1))
            [(B) That Act is further amended by striking ``Director of 
        Central Intelligence'' each place it appears in the following 
        provisions and inserting ``National Intelligence Director'':
                    [(i) Section 902(a)(2) (50 U.S.C. 402b(a)(2)).
                    [(ii) Section 904(e)(4) (50 U.S.C. 402c(e)(4)).
                    [(iii) Section 904(e)(5) (50 U.S.C. 402c(e)(5)).
                    [(iv) Section 904(h) (50 U.S.C. 402c(h)), each 
                place it appears.
                    [(v) Section 904(m) (50 U.S.C. 402c(m)).
            [(C) Section 341 of that Act (50 U.S.C. 404n-1) is amended 
        by striking ``Director of Central Intelligence, acting as the 
        head of the intelligence community, shall establish in the 
        Central Intelligence Agency'' and inserting ``National 
        Intelligence Director shall establish within the Central 
        Intelligence Agency''.
            [(D) Section 352(b) of that Act (50 U.S.C. 404-3 note) is 
        amended by striking ``Director'' and inserting ``National 
        Intelligence Director''.
            [(3) Public law 108-177.--(A) The Intelligence 
        Authorization Act for Fiscal Year 2004 (Public Law 108-177) is 
        amended by striking ``Director of Central Intelligence'' each 
        place it appears in the following provisions and inserting 
        ``National Intelligence Director'':
                    [(i) Section 317(a) (50 U.S.C. 403-3 note).
                    [(ii) Section 317(h)(1).
                    [(iii) Section 318(a) (50 U.S.C. 441g note).
                    [(iv) Section 319(b) (50 U.S.C. 403 note).
                    [(v) Section 341(b) (28 U.S.C. 519 note).
                    [(vi) Section 357(a) (50 U.S.C. 403 note).
                    [(vii) Section 504(a) (117 Stat. 2634), both places 
                it appears.
            [(B) Section 319(f)(2) of that Act (50 U.S.C. 403 note) is 
        amended by striking ``Director'' the first place it appears and 
        inserting ``National Intelligence Director''.
            [(C) Section 404 of that Act (18 U.S.C. 4124 note) is 
        amended by striking ``Director of Central Intelligence'' and 
        inserting ``Director of the Central Intelligence Agency''.

[SEC. 1072. OTHER CONFORMING AMENDMENTS

    [(a) National Security Act of 1947.--(1) Section 101(j) of the 
National Security Act of 1947 (50 U.S.C. 402(j)) is amended by striking 
``Deputy Director of Central Intelligence'' and inserting ``Deputy 
National Intelligence Director''.
    [(2) Section 112(d)(1) of that Act (50 U.S.C. 404g(d)(1)) is 
amended by striking ``section 103(c)(6) of this Act'' and inserting 
``section 102A(g) of this Act''.
    [(3) Section 116(b) of that Act (50 U.S.C. 404k(b)) is amended by 
striking ``to the Deputy Director of Central Intelligence, or with 
respect to employees of the Central Intelligence Agency, the Director 
may delegate such authority to the Deputy Director for Operations'' and 
inserting ``to the Deputy National Intelligence Director, or with 
respect to employees of the Central Intelligence Agency, to the 
Director of the Central Intelligence Agency''.
    [(4) Section 506A(b)(1) of that Act (50 U.S.C. 415a-1(b)(1)) is 
amended by striking ``Office of the Deputy Director of Central 
Intelligence'' and inserting ``Office of the National Intelligence 
Director''.
    [(5) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is amended 
by striking ``Office of the Director of Central Intelligence'' and 
inserting ``Office of the National Intelligence Director''.
    [(6) Section 1001(b) of that Act (50 U.S.C. 441g(b)) is amended by 
striking ``Assistant Director of Central Intelligence for 
Administration'' and inserting ``Office of the National Intelligence 
Director''.
    [(b) Central Intelligence Act of 1949.--Section 6 of the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403g) is amended by striking 
``section 103(c)(7) of the National Security Act of 1947 (50 U.S.C. 
403-3(c)(7))'' and inserting ``section 102A(g) of the National Security 
Act of 1947''.
    [(c) Central Intelligence Agency Retirement Act.--Section 201(c) of 
the Central Intelligence Agency Retirement Act (50 U.S.C. 2011(c)) is 
amended by striking ``paragraph (6) of section 103(c) of the National 
Security Act of 1947 (50 U.S.C. 403-3(c)) that the Director of Central 
Intelligence'' and inserting ``section 102A(g) of the National Security 
Act of 1947 (50 U.S.C. 403-3(c)(1)) that the National Intelligence 
Director''.
    [(d) Intelligence Authorization Acts.--
            [(1) Public law 107-306.--(A) Section 343(c) of the 
        Intelligence Authorization Act for Fiscal Year 2003 (Public Law 
        107-306; 50 U.S.C. 404n-2(c)) is amended by striking ``section 
        103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-
        3((c)(6))'' and inserting ``section 102A(g) of the National 
        Security Act of 1947 (50 U.S.C. 403-3(c)(1))''.
            [(B) Section 904 of that Act (50 U.S.C. 402c) is amended--
                    [(i) in subsection (c), by striking ``Office of the 
                Director of Central Intelligence'' and inserting 
                ``Office of the National Intelligence Director''; and
                    [(ii) in subsection (l), by striking ``Office of 
                the Director of Central Intelligence'' and inserting 
                ``Office of the National Intelligence Director''.
            [(2) Public law 108-177.--Section 317 of the Intelligence 
        Authorization Act for Fiscal Year 2004 (Public Law 108-177; 50 
        U.S.C. 403-3 note) is amended--
                    [(A) in subsection (g), by striking ``Assistant 
                Director of Central Intelligence for Analysis and 
                Production'' and inserting ``Deputy National 
                Intelligence Director''; and
                    [(B) in subsection (h)(2)(C), by striking 
                ``Assistant Director'' and inserting ``Deputy National 
                Intelligence Director''.

[SEC. 1073. ELEMENTS OF INTELLIGENCE COMMUNITY UNDER NATIONAL SECURITY 
              ACT OF 1947.

    [Paragraph (4) of section 3 of the National Security Act of 1947 
(50 U.S.C. 401a) is amended to read as follows:
            [``(4) The term `intelligence community' includes the 
        following:
                    [``(A) The Office of the National Intelligence 
                Director.
                    [``(B) The Central Intelligence Agency.
                    [``(C) The National Security Agency.
                    [``(D) The Defense Intelligence Agency.
                    [``(E) The National Geospatial-Intelligence Agency.
                    [``(F) The National Reconnaissance Office.
                    [``(G) Other offices within the Department of 
                Defense for the collection of specialized national 
                intelligence through reconnaissance programs.
                    [``(H) The intelligence elements of the Army, the 
                Navy, the Air Force, the Marine Corps, the Federal 
                Bureau of Investigation, and the Department of Energy.
                    [``(I) The Bureau of Intelligence and Research of 
                the Department of State.
                    [``(J) The Office of Intelligence and Analysis of 
                the Department of the Treasury.
                    [``(K) The elements of the Department of Homeland 
                Security concerned with the analysis of intelligence 
                information, including the Office of Intelligence of 
                the Coast Guard.
                    [``(L) Such other elements of any other department 
                or agency as may be designated by the President, or 
                designated jointly by the National Intelligence 
                Director and the head of the department or agency 
                concerned, as an element of the intelligence 
                community.''.

[SEC. 1074. REDESIGNATION OF NATIONAL FOREIGN INTELLIGENCE PROGRAM AS 
              NATIONAL INTELLIGENCE PROGRAM.

    [(a) Redesignation.--Paragraph (6) of section 3 of the National 
Security Act of 1947 (50 U.S.C. 401a) is amended by striking 
``Foreign''.
    [(b) Conforming Amendments.--(1) Section 506(a) of the National 
Security Act of 1947 (50 U.S.C. 415a(a)) is amended by striking 
``National Foreign Intelligence Program'' and inserting ``National 
Intelligence Program''.
    [(2) Section 17(f) of the Central Intelligence Agency Act of 1949 
(50 U.S.C. 403q(f)) is amended by striking ``National Foreign 
Intelligence Program'' and inserting ``National Intelligence Program''.
    [(c) Heading Amendment.--The heading of section 506 of that Act is 
amended by striking ``foreign''.

[SEC. 1075. REPEAL OF SUPERSEDED AUTHORITIES.

    [(a) Appointment of Certain Intelligence Officials.--Section 106 of 
the National Security Act of 1947 (50 U.S.C. 403-6) is repealed.
    [(b) Collection Tasking Authority.--Section 111 of the National 
Security Act of 1947 (50 U.S.C. 404f) is repealed.

[SEC. 1076. CLERICAL AMENDMENTS TO NATIONAL SECURITY ACT OF 1947.

    [The table of contents for the National Security Act of 1947 is 
amended--
            [(1) by striking the items relating to sections 102 through 
        104 and inserting the following new items:

[``Sec. 102. National Intelligence Director.
[``Sec. 102A. Responsibilities and authorities of National Intelligence 
                            Director.
[``Sec. 103. Office of the National Intelligence Director.
[``Sec. 104. Central Intelligence Agency.
[``Sec. 104A. Director of the Central Intelligence Agency.''; and
            [(2) by striking the item relating to section 114 and 
        inserting the following new item:

[``Sec. 114. Additional annual reports from the National Intelligence 
                            Director.'';
            [and
            [(3) by striking the item relating to section 506 and 
        inserting the following new item:

[``Sec. 506. Specificity of National Intelligence Program budget 
                            amounts for counterterrorism, 
                            counterproliferation, counternarcotics, and 
                            counterintelligence''.

[SEC. 1077. CONFORMING AMENDMENTS RELATING TO PROHIBITING DUAL SERVICE 
              OF THE DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY.

    [Section 1 of the Central Intelligence Agency Act of 1949 (50 
U.S.C. 403a) is amended--
            [(1) by redesignating paragraphs (a), (b), and (c) as 
        paragraphs (1), (2), and (3), respectively; and
            [(2) by striking paragraph (2), as so redesignated, and 
        inserting the following new paragraph (2):
    [``(2) `Director' means the Director of the Central Intelligence 
Agency; and''.

[SEC. 1078. ACCESS TO INSPECTOR GENERAL PROTECTIONS.

    [Section 17(a)(1) of the Central Intelligence Agency Act of 1949 
(50 U.S.C. 403q(a)(1)) is amended by inserting before the semicolon at 
the end the following: ``and to programs and operations of the Office 
of the National Intelligence Director''.

[SEC. 1079. GENERAL REFERENCES.

    [(a) Director of Central Intelligence as Head of Intelligence 
Community.--Any reference to the Director of Central Intelligence or 
the Director of the Central Intelligence Agency in the Director's 
capacity as the head of the intelligence community in any law, 
regulation, document, paper, or other record of the United States shall 
be deemed to be a reference to the National Intelligence Director.
    [(b) Director of Central Intelligence as Head of CIA.--Any 
reference to the Director of Central Intelligence or the Director of 
the Central Intelligence Agency in the Director's capacity as the head 
of the Central Intelligence Agency in any law, regulation, document, 
paper, or other record of the United States shall be deemed to be a 
reference to the Director of the Central Intelligence Agency.
    [(c) Community Management Staff.--Any reference to the Community 
Management Staff in any law, regulation, document, paper, or other 
record of the United States shall be deemed to be a reference to the 
staff of the Office of the National Intelligence Director.

[SEC. 1080. APPLICATION OF OTHER LAWS.

    [(a) Political Service of Personnel.--Section 7323(b)(2)(B)(i) of 
title 5, United States Code, is amended--
            [(1) in subclause (XII), by striking ``or'' at the end; and
            [(2) by inserting after subclause (XIII) the following new 
        subclause:
                    [``(XIV) the Office of the National Intelligence 
                Director; or''.
    [(b) Deletion of Information About Foreign Gifts.--Section 
7342(f)(4) of title 5, United States Code, is amended--
            [(1) by inserting ``(A)'' after ``(4)'';
            [(2) in subparagraph (A), as so designated, by striking 
        ``the Director of Central Intelligence'' and inserting ``the 
        Director of the Central Intelligence Agency''; and
            [(3) by adding at the end the following new subparagraph:
    [``(B) In transmitting such listings for the Office of the National 
Intelligence Director, the National Intelligence Director may delete 
the information described in subparagraphs (A) and (C) of paragraphs 
(2) and (3) if the Director certifies in writing to the Secretary of 
State that the publication of such information could adversely affect 
United States intelligence sources.''.
    [(c) Exemption from Financial Disclosures.--Section 105(a)(1) of 
the Ethics in Government Act (5 U.S.C. App.) is amended by inserting 
``the Office of the National Intelligence Director,'' before ``the 
Central Intelligence Agency''.

  [Subtitle H--Transfer, Termination, Transition and Other Provisions

[SEC. 1091. TRANSFER OF COMMUNITY MANAGEMENT STAFF.

    [(a) Transfer.--There shall be transferred to the Office of the 
National Intelligence Director the staff of the Community Management 
Staff as of the date of the enactment of this Act, including all 
functions and activities discharged by the Community Management Staff 
as of that date.
    [(b) Administration.--The National Intelligence Director shall 
administer the Community Management Staff after the date of the 
enactment of this Act as a component of the Office of the National 
Intelligence Director under section 103(b) of the National Security Act 
of 1947, as amended by section 1011(a).

[SEC. 1092. TRANSFER OF TERRORIST THREAT INTEGRATION CENTER.

    [(a) Transfer.--There shall be transferred to the National 
counterterrorism Center the Terrorist Threat Integration Center (TTIC), 
including all functions and activities discharged by the Terrorist 
Threat Integration Center as of the date of the enactment of this Act.
    [(b) Administration.--The Director of the National counterterrorism 
Center shall administer the Terrorist Threat Integration Center after 
the date of the enactment of this Act as a component of the Directorate 
of Intelligence of the National counterterrorism Center under section 
119(i) of the National Security Act of 1947, as added by section 
1021(a).

[SEC. 1093. TERMINATION OF POSITIONS OF ASSISTANT DIRECTORS OF CENTRAL 
              INTELLIGENCE.

    [(a) Termination.--The positions within the Central Intelligence 
Agency referred to in subsection (b) are hereby abolished.
    [(b) Covered Positions.--The positions within the Central 
Intelligence Agency referred to in this subsection are as follows:
            [(1) The Assistant Director of Central Intelligence for 
        Collection.
            [(2) The Assistant Director of Central Intelligence for 
        Analysis and Production.
            [(3) The Assistant Director of Central Intelligence for 
        Administration.

[SEC. 1094. IMPLEMENTATION PLAN.

    [(a) Submission of Plan.--The President shall transmit to Congress 
a plan for the implementation of this title and the amendments made by 
this title. The plan shall address, at a minimum, the following:
            [(1) The transfer of personnel, assets, and obligations to 
        the National Intelligence Director pursuant to this title.
            [(2) Any consolidation, reorganization, or streamlining of 
        activities transferred to the National Intelligence Director 
        pursuant to this title.
            [(3) The establishment of offices within the Office of the 
        National Intelligence Director to implement the duties and 
        responsibilities of the National Intelligence Director as 
        described in this title.
            [(4) Specification of any proposed disposition of property, 
        facilities, contracts, records, and other assets and 
        obligations to be transferred to the National Intelligence 
        Director.
            [(5) Recommendations for additional legislative or 
        administrative action as the Director considers appropriate.
    [(b) Sense of Congress.--It is the sense of Congress that the 
permanent location for the headquarters for the Office of the National 
Intelligence Director, should be at a location other than the George 
Bush Center for Intelligence in Langley, Virginia.

[SEC. 1095. TRANSITIONAL AUTHORITIES.

    [Upon the request of the National Intelligence Director, the head 
of any executive agency may, on a reimbursable basis, provide services 
or detail personnel to the National Intelligence Director.

[SEC. 1096. EFFECTIVE DATES.

    [(a) In General.--Except as otherwise expressly provided in this 
Act, this title and the amendments made by this title shall take effect 
on the date of the enactment of this Act.
    [(b) Specific Effective Dates.--(1)(A) Not later than 60 days after 
the date of the enactment of this Act, the National Intelligence 
Director shall first appoint individuals to positions within the Office 
of the National Intelligence Director.
    [(B) Subparagraph (A) shall not apply with respect to the Deputy 
National Intelligence Director.
    [(2) Not later than 180 days after the date of the enactment of 
this Act, the President shall transmit to Congress the implementation 
plan required under section 1904.
    [(3) Not later than one year after the date of the enactment of 
this Act, the National Intelligence Director shall prescribe 
regulations, policies, procedures, standards, and guidelines required 
under section 102A of the National Security Act of 1947, as amended by 
section 1011(a).

            [TITLE II--TERRORISM PREVENTION AND PROSECUTION

     [Subtitle A--Individual Terrorists as Agents of Foreign Powers

[SEC. 2001. PRESUMPTION THAT CERTAIN NON-UNITED STATES PERSONS ENGAGING 
              IN INTERNATIONAL TERRORISM ARE AGENTS OF FOREIGN POWERS 
              FOR PURPOSES OF THE FOREIGN INTELLIGENCE SURVEILLANCE ACT 
              OF 1978.

    [(a) Presumption.--(1) The Foreign Intelligence Surveillance Act of 
1978 (50 U.S.C. 1801 et seq.) is amended by inserting after section 101 
the following new section:

   [``presumption of treatment of certain non-united states persons 
     engaged in international terrorism as agents of foreign powers

    [``Sec. 101A. Upon application by the Federal official applying for 
an order under this Act, the court may presume that a non-United States 
person who is knowingly engaged in sabotage or international terrorism, 
or activities that are in preparation therefor, is an agent of a 
foreign power under section 101(b)(2)(C).''.
    [(2) The table of contents for that Act is amended by inserting 
after the item relating to section 101 the following new item:

[``Sec. 101A. Presumption of treatment of certain non-United States 
                            persons engaged in international terrorism 
                            as agents of foreign powers.''.
    [(b) Sunset.--The amendments made by subsection (a) shall be 
subject to the sunset provision in section 224 of the USA PATRIOT Act 
of 2001 (Public Law 107-56; 115 Stat. 295), including the exception 
provided in subsection (b) of such section 224.

      [Subtitle B--Stop Terrorist and Military Hoaxes Act of 2004

[SEC. 2021. SHORT TITLE.

    [This subtitle may be cited as the ``Stop Terrorist and Military 
Hoaxes Act of 2004''.

[SEC. 2022. HOAXES AND RECOVERY COSTS.

    [(a) Prohibition on Hoaxes.--Chapter 47 of title 18, United States 
Code, is amended by inserting after section 1037 the following:
[``Sec. 1038. False information and hoaxes
    [``(a) Criminal Violation.--
            [``(1) In general.--Whoever engages in any conduct with 
        intent to convey false or misleading information under 
        circumstances where such information may reasonably be believed 
        and where such information indicates that an activity has 
        taken, is taking, or will take place that would constitute a 
        violation of chapter 2, 10, 11B, 39, 40, 44, 111, or 113B of 
        this title, section 236 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2284), or section 46502, the second sentence of section 
        46504, section 46505 (b)(3) or (c), section 46506 if homicide 
        or attempted homicide is involved, or section 60123(b) of title 
        49 shall--
                    [``(A) be fined under this title or imprisoned not 
                more than 5 years, or both;
                    [``(B) if serious bodily injury results, be fined 
                under this title or imprisoned not more than 25 years, 
                or both; and
                    [``(C) if death results, be fined under this title 
                or imprisoned for any number of years up to life, or 
                both.
            [``(2) Armed forces.--Whoever, without lawful authority, 
        makes a false statement, with intent to convey false or 
        misleading information, about the death, injury, capture, or 
        disappearance of a member of the Armed Forces of the United 
        States during a war or armed conflict in which the United 
        States is engaged, shall--
                    [``(A) be fined under this title or imprisoned not 
                more than 5 years, or both;
                    [``(B) if serious bodily injury results, be fined 
                under this title or imprisoned not more than 25 years, 
                or both; and
                    [``(C) if death results, be fined under this title 
                or imprisoned for any number of years up to life, or 
                both.
    [``(b) Civil Action.--Whoever knowingly engages in any conduct with 
intent to convey false or misleading information under circumstances 
where such information may reasonably be believed and where such 
information indicates that an activity has taken, is taking, or will 
take place that would constitute a violation of chapter 2, 10, 11B, 39, 
40, 44, 111, or 113B of this title, section 236 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2284), or section 46502, the second sentence of 
section 46504, section 46505 (b)(3) or (c), section 46506 if homicide 
or attempted homicide is involved, or section 60123(b) of title 49 is 
liable in a civil action to any party incurring expenses incident to 
any emergency or investigative response to that conduct, for those 
expenses.
    [``(c) Reimbursement.--
            [``(1) In general.--The court, in imposing a sentence on a 
        defendant who has been convicted of an offense under subsection 
        (a), shall order the defendant to reimburse any state or local 
        government, or private not-for-profit organization that 
        provides fire or rescue service incurring expenses incident to 
        any emergency or investigative response to that conduct, for 
        those expenses.
            [``(2) Liability.--A person ordered to make reimbursement 
        under this subsection shall be jointly and severally liable for 
        such expenses with each other person, if any, who is ordered to 
        make reimbursement under this subsection for the same expenses.
            [``(3) Civil judgment.--An order of reimbursement under 
        this subsection shall, for the purposes of enforcement, be 
        treated as a civil judgment.
    [``(d) Activities of Law Enforcement.--This section does not 
prohibit any lawfully authorized investigative, protective, or 
intelligence activity of a law enforcement agency of the United States, 
a State, or political subdivision of a State, or of an intelligence 
agency of the United States.''.
    [(b) Clerical Amendment.--The table of sections as the beginning of 
chapter 47 of title 18, United States Code, is amended by adding after 
the item for section 1037 the following:

[``1038. False information and hoaxes.''.

[SEC. 2023. OBSTRUCTION OF JUSTICE AND FALSE STATEMENTS IN TERRORISM 
              CASES.

    [(a) Enhanced Penalty.--Section 1001(a) and the third undesignated 
paragraph of section 1505 of title 18, United States Code, are amended 
by striking ``be fined under this title or imprisoned not more than 5 
years, or both'' and inserting ``be fined under this title, imprisoned 
not more than 5 years or, if the matter relates to international or 
domestic terrorism (as defined in section 2331), imprisoned not more 
than 10 years, or both''.
    [(b) Sentencing Guidelines.--Not later than 30 days of the 
enactment of this section, the United States Sentencing Commission 
shall amend the Sentencing Guidelines to provide for an increased 
offense level for an offense under sections 1001(a) and 1505 of title 
18, United States Code, if the offense involves a matter relating to 
international or domestic terrorism, as defined in section 2331 of such 
title.

[SEC. 2024. CLARIFICATION OF DEFINITION.

    [Section 1958 of title 18, United States Code, is amended--
            [(1) in subsection (a), by striking ``facility in'' and 
        inserting ``facility of''; and
            [(2) in subsection (b)(2), by inserting ``or foreign'' 
        after ``interstate''.

[Subtitle C--Material Support to Terrorism Prohibition Enhancement Act 
                                of 2004

[SEC. 2041. SHORT TITLE.

    [This subtitle may be cited as the ``Material Support to Terrorism 
Prohibition Enhancement Act of 2004''.

[SEC. 2042. RECEIVING MILITARY-TYPE TRAINING FROM A FOREIGN TERRORIST 
              ORGANIZATION.

    [Chapter 113B of title 18, United States Code, is amended by adding 
after section 2339C the following new section:
[``Sec. 2339D. Receiving military-type training from a foreign 
              terrorist organization
    [``(a) Offense.--Whoever knowingly receives military-type training 
from or on behalf of any organization designated at the time of the 
training by the Secretary of State under section 219(a)(1) of the 
Immigration and Nationality Act as a foreign terrorist organization 
shall be fined under this title or imprisoned for ten years, or both. 
To violate this subsection, a person must have knowledge that the 
organization is a designated terrorist organization (as defined in 
subsection (c)(4)), that the organization has engaged or engages in 
terrorist activity (as defined in section 212 of the Immigration and 
Nationality Act), or that the organization has engaged or engages in 
terrorism (as defined in section 140(d)(2) of the Foreign Relations 
Authorization Act, Fiscal Years 1988 and 1989).
    [``(b) Extraterritorial Jurisdiction.--There is extraterritorial 
Federal jurisdiction over an offense under this section. There is 
jurisdiction over an offense under subsection (a) if--
            [``(1) an offender is a national of the United States (as 
        defined in 101(a)(22) of the Immigration and Nationality Act) 
        or an alien lawfully admitted for permanent residence in the 
        United States (as defined in section 101(a)(20) of the 
        Immigration and Nationality Act);
            [``(2) an offender is a stateless person whose habitual 
        residence is in the United States;
            [``(3) after the conduct required for the offense occurs an 
        offender is brought into or found in the United States, even if 
        the conduct required for the offense occurs outside the United 
        States;
            [``(4) the offense occurs in whole or in part within the 
        United States;
            [``(5) the offense occurs in or affects interstate or 
        foreign commerce;
            [``(6) an offender aids or abets any person over whom 
        jurisdiction exists under this paragraph in committing an 
        offense under subsection (a) or conspires with any person over 
        whom jurisdiction exists under this paragraph to commit an 
        offense under subsection (a).
    [``(c) Definitions.--As used in this section--
            [``(1) the term `military-type training' includes training 
        in means or methods that can cause death or serious bodily 
        injury, destroy or damage property, or disrupt services to 
        critical infrastructure, or training on the use, storage, 
        production, or assembly of any explosive, firearm or other 
        weapon, including any weapon of mass destruction (as defined in 
        section 2232a(c)(2));
            [``(2) the term `serious bodily injury' has the meaning 
        given that term in section 1365(h)(3);
            [``(3) the term `critical infrastructure' means systems and 
        assets vital to national defense, national security, economic 
        security, public health or safety including both regional and 
        national infrastructure. Critical infrastructure may be 
        publicly or privately owned; examples of critical 
        infrastructure include gas and oil production, storage, or 
        delivery systems, water supply systems, telecommunications 
        networks, electrical power generation or delivery systems, 
        financing and banking systems, emergency services (including 
        medical, police, fire, and rescue services), and transportation 
        systems and services (including highways, mass transit, 
        airlines, and airports); and
            [``(4) the term `foreign terrorist organization' means an 
        organization designated as a terrorist organization under 
        section 219(a)(1) of the Immigration and Nationality Act.''.

[SEC. 2043. PROVIDING MATERIAL SUPPORT TO TERRORISM.

    [(a) Additions to Offense of Providing Material Support to 
Terrorists.--Section 2339A(a) of title 18, United States Code, is 
amended--
            [(1) by designating the first sentence as paragraph (1);
            [(2) by designating the second sentence as paragraph (3);
            [(3) by inserting after paragraph (1) as so designated by 
        this subsection the following:
            [``(2) (A) Whoever in a circumstance described in 
        subparagraph (B) provides material support or resources or 
        conceals or disguises the nature, location, source, or 
        ownership of material support or resources, knowing or 
        intending that they are to be used in preparation for, or in 
        carrying out, an act of international or domestic terrorism (as 
        defined in section 2331), or in preparation for, or in carrying 
        out, the concealment or escape from the commission of any such 
        act, or attempts or conspires to do so, shall be punished as 
        provided under paragraph (1) for an offense under that 
        paragraph.
            [``(B) The circumstances referred to in subparagraph (A) 
        are any of the following:
                    [``(i) The offense occurs in or affects interstate 
                or foreign commerce.
                    [``(ii) The act of terrorism is an act of 
                international or domestic terrorism that violates the 
                criminal law of the United States.
                    [``(iii) The act of terrorism is an act of domestic 
                terrorism that appears to be intended to influence the 
                policy, or affect the conduct, of the Government of the 
                United States or a foreign government.
                    [``(iv) An offender, acting within the United 
                States or outside the territorial jurisdiction of the 
                United States, is a national of the United States (as 
                defined in section 101(a)(22) of the Immigration and 
                Nationality Act), an alien lawfully admitted for 
                permanent residence in the United States (as defined in 
                section 101(a)(20) of the Immigration and Nationality 
                Act), or a stateless person whose habitual residence is 
                in the United States, and the act of terrorism is an 
                act of international terrorism that appears to be 
                intended to influence the policy, or affect the 
                conduct, of the Government of the United States or a 
                foreign government.
                    [``(v) An offender, acting within the United 
                States, is an alien, and the act of terrorism is an act 
                of international terrorism that appears to be intended 
                to influence the policy, or affect the conduct, of the 
                Government of the United States or a foreign 
                government.
                    [``(vi) An offender, acting outside the territorial 
                jurisdiction of the United States, is an alien and the 
                act of terrorism is an act of international terrorism 
                that appears to be intended to influence the policy of, 
                or affect the conduct of, the Government of the United 
                States.
                    [``(vii) An offender aids or abets any person over 
                whom jurisdiction exists under this paragraph in 
                committing an offense under this paragraph or conspires 
                with any person over whom jurisdiction exists under 
                this paragraph to commit an offense under this 
                paragraph.''; and
            [(4) by inserting ``act or'' after ``underlying''.
    [(b) Definitions.--Section 2339A(b) of title 18, United States 
Code, is amended--
            [(1) by striking ``In this'' and inserting ``(1) In this'';
            [(2) by inserting ``any property, tangible or intangible, 
        or service, including'' after ``means'';
            [(3) by inserting ``(one or more individuals who may be or 
        include oneself)'' after ``personnel'';
            [(4) by inserting ``and'' before ``transportation'';
            [(5) by striking ``and other physical assets''; and
            [(6) by adding at the end the following:
    [``(2) As used in this subsection, the term `training' means 
instruction or teaching designed to impart a specific skill, as opposed 
to general knowledge, and the term `expert advice or assistance' means 
advice or assistance derived from scientific, technical or other 
specialized knowledge.''.
    [(c) Addition to Offense of Providing Material Support to Terrorist 
Organizations.--Section 2339B(a)(1) of title 18, United States Code, is 
amended--
            [(1) by striking ``, within the United States or subject to 
        the jurisdiction of the United States,'' and inserting ``in a 
        circumstance described in paragraph (2)''; and
            [(2) by adding at the end the following: ``To violate this 
        paragraph, a person must have knowledge that the organization 
        is a designated terrorist organization (as defined in 
        subsection (g)(6)), that the organization has engaged or 
        engages in terrorist activity (as defined in section 
        212(a)(3)(B) of the Immigration and Nationality Act, or that 
        the organization has engaged or engages in terrorism (as 
        defined in section 140(d)(2) of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989.''.
    [(d) Federal Authority.--Section 2339B(d) of title 18 is amended--
            [(1) by inserting ``(1)'' before ``There''; and
            [(2) by adding at the end the following:
    [``(2) The circumstances referred to in paragraph (1) are any of 
the following:
            [``(A) An offender is a national of the United States (as 
        defined in section 101(a)(22) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(22)) or an alien lawfully 
        admitted for permanent residence in the United States (as 
        defined in section 101(a)(20) of the Immigration and 
        Nationality Act.
            [``(B) An offender is a stateless person whose habitual 
        residence is in the United States.
            [``(C) After the conduct required for the offense occurs an 
        offender is brought into or found in the United States, even if 
        the conduct required for the offense occurs outside the United 
        States.
            [``(D) The offense occurs in whole or in part within the 
        United States.
            [``(E) The offense occurs in or affects interstate or 
        foreign commerce.
            [``(F) An offender aids or abets any person over whom 
        jurisdiction exists under this paragraph in committing an 
        offense under subsection (a) or conspires with any person over 
        whom jurisdiction exists under this paragraph to commit an 
        offense under subsection (a).''.
    [(e) Definition.--Paragraph (4) of section 2339B(g) of title 18, 
United States Code, is amended to read as follows:
            [``(4) the term `material support or resources' has the 
        same meaning given that term in section 2339A;''.
    [(f) Additional Provisions.--Section 2339B of title 18, United 
States Code, is amended by adding at the end the following:
    [``(h) Provision of Personnel.--No person may be prosecuted under 
this section in connection with the term `personnel' unless that person 
has knowingly provided, attempted to provide, or conspired to provide a 
foreign terrorist organization with one or more individuals (who may be 
or include himself) to work under that terrorist organization's 
direction or control or to organize, manage, supervise, or otherwise 
direct the operation of that organization. Individuals who act entirely 
independently of the foreign terrorist organization to advance its 
goals or objectives shall not be considered to be working under the 
foreign terrorist organization's direction and control.
    [``(i) Rule of Construction.--Nothing in this section shall be 
construed or applied so as to abridge the exercise of rights guaranteed 
under the First Amendment to the Constitution of the United States.''.

[SEC. 2044. FINANCING OF TERRORISM.

    [(a) Financing Terrorism.--Section 2339c(c)(2) of title 18, United 
States Code, is amended--
            [(1) by striking ``, resources, or funds'' and inserting 
        ``or resources, or any funds or proceeds of such funds'';
            [(2) in subparagraph (A), by striking ``were provided'' and 
        inserting ``are to be provided, or knowing that the support or 
        resources were provided,''; and
            [(3) in subparagraph (B)--
                    [(A) by striking ``or any proceeds of such funds''; 
                and
                    [(B) by striking ``were provided or collected'' and 
                inserting ``are to be provided or collected, or knowing 
                that the funds were provided or collected,''.
    [(b) Definitions.--Section 2339c(e) of title 18, United States 
Code, is amended--
            [(1) by striking ``and'' at the end of paragraph (12);
            [(2) by redesignating paragraph (13) as paragraph (14); and
            [(3) by inserting after paragraph (12) the following:
            [``(13) the term `material support or resources' has the 
        same meaning given that term in section 2339B(g)(4) of this 
        title; and''.

[Subtitle D--Weapons of Mass Destruction Prohibition Improvement Act of 
                                  2004

[SEC. 2051. SHORT TITLE.

    [This subtitle may be cited as the ``Weapons of Mass Destruction 
Prohibition Improvement Act of 2004''.

[SEC. 2052. WEAPONS OF MASS DESTRUCTION.

    [(a) Expansion of Jurisdictional Bases and Scope.--Section 2332a of 
title 18, United States Code, is amended--
            [(1) so that paragraph (2) of subsection (a) reads as 
        follows:
            [``(2) against any person or property within the United 
        States, and
                    [``(A) the mail or any facility of interstate or 
                foreign commerce is used in furtherance of the offense;
                    [``(B) such property is used in interstate or 
                foreign commerce or in an activity that affects 
                interstate or foreign commerce;
                    [``(C) any perpetrator travels in or causes another 
                to travel in interstate or foreign commerce in 
                furtherance of the offense; or
                    [``(D) the offense, or the results of the offense, 
                affect interstate or foreign commerce, or, in the case 
                of a threat, attempt, or conspiracy, would have 
                affected interstate or foreign commerce;'';
            [(2) in paragraph (3) of subsection (a), by striking the 
        comma at the end and inserting ``; or'';
            [(3) in subsection (a), by adding the following at the end:
            [``(4) against any property within the United States that 
        is owned, leased, or used by a foreign government,'';
            [(4) at the end of subsection (c)(1), by striking ``and'';
            [(5) in subsection (c)(2), by striking the period at the 
        end and inserting ``; and''; and
            [(6) in subsection (c), by adding at the end the following:
            [``(3) the term `property' includes all real and personal 
        property.''.
    [(b) Restoration of the Coverage of Chemical Weapons.--Section 
2332a of title 18, United States Code, as amended by subsection (a), is 
further amended--
            [(1) in the section heading, by striking ``certain'';
            [(2) in subsection (a), by striking ``(other than a 
        chemical weapon as that term is defined in section 229F)''; and
            [(3) in subsection (b), by striking ``(other than a 
        chemical weapon (as that term is defined in section 229F))''.
    [(c) Expansion of Categories of Restricted Persons Subject to 
Prohibitions Relating to Select Agents.--Section 175b(d)(2) of title 
18, United States Code, is amended--
            [(1) in subparagraph (G) by--
                    [(A) inserting ``(i)'' after ``(G)'';
                    [(B) inserting ``, or (ii) acts for or on behalf 
                of, or operates subject to the direction or control of, 
                a government or official of a country described in this 
                subparagraph'' after ``terrorism''; and
                    [(C) striking ``or'' after the semicolon.
            [(2) in subparagraph (H) by striking the period and 
        inserting ``; or''; and
            [(3) by adding at the end the following new subparagraph:
                    [``(I) is a member of, acts for or on behalf of, or 
                operates subject to the direction or control of, a 
                terrorist organization as defined in section 
                212(a)(3)(B)(vi) of the Immigration and Nationality Act 
                (8 U.S.C. 1182(a)(3)(B)(vi)).''.
    [(d) Conforming Amendment to Regulations.--
            [(1) Section 175b(a)(1) of title 18, United States Code, is 
        amended by striking ``as a select agent in Appendix A'' and all 
        that follows and inserting the following: ``as a non-overlap or 
        overlap select biological agent or toxin in sections 73.4 and 
        73.5 of title 42, Code of Federal Regulations, pursuant to 
        section 351A of the Public Health Service Act, and is not 
        excluded under sections 73.4 and 73.5 or exempted under section 
        73.6 of title 42, Code of Federal Regulations.''.
            [(2) The amendment made by paragraph (1) shall take effect 
        at the same time that sections 73.4, 73.5, and 73.6 of title 
        42, Code of Federal Regulations, become effective.
    [(e) Enhancing Prosecution of Weapons of Mass Destruction 
Offenses.--Section 1961(1)(B) of title 18, United States Code, is 
amended by adding at the end the following: ``sections 175-178 
(relating to biological weapons), sections 229-229F (relating to 
chemical weapons), section 831 (relating to nuclear materials),''.

[SEC. 2053. PARTICIPATION IN NUCLEAR AND WEAPONS OF MASS DESTRUCTION 
              THREATS TO THE UNITED STATES.

    [(a) Section 57(b) of the Atomic Energy Act of 1954 (42 U.S.C. 
2077(b)) is amended by striking ``in the production of any special 
nuclear material'' and inserting ``or participate in the development or 
production of any special nuclear material or atomic weapon''.
    [(b) Title 18, United States Code, is amended--
            [(1) in the table of sections at the beginning of chapter 
        39, by inserting after the item relating to section 831 the 
        following:

[``832. Participation in nuclear and weapons of mass destruction 
                            threats to the United States.'';
            [(2) by inserting after section 831 the following:
[``Sec. 832. Participation in nuclear and weapons of mass destruction 
              threats to the United States
    [``(a) Whoever, within the United States or subject to the 
jurisdiction of the United States, willfully participates in or 
provides material support or resources (as defined in section 2339A) to 
a nuclear weapons program or other weapons of mass destruction program 
of a foreign terrorist power, or attempts or conspires to do so, shall 
be imprisoned for not more than 20 years.
    [``(b) There is extraterritorial Federal jurisdiction over an 
offense under this section.
    [``(c) Whoever without lawful authority develops, possesses, or 
attempts or conspires to develop or possess a radiological weapon, or 
threatens to use or uses a radiological weapon against any person 
within the United States, or a national of the United States while such 
national is outside the United States or against any property that is 
owned, leased, funded or used by the United States, whether that 
property is within or outside the United States, shall be imprisoned 
for any term of years or for life, and if death results, shall be 
punished by death or imprisoned for any term of years or for life.
    [``(d) As used in this section--
            [``(1) `nuclear weapons program' means a program or plan 
        for the development, acquisition, or production of any nuclear 
        weapon or weapons;
            [``(2) `weapons of mass destruction program' means a 
        program or plan for the development, acquisition, or production 
        of any weapon or weapons of mass destruction (as defined in 
        section 2332a(c));
            [``(3) `foreign terrorist power' means a terrorist 
        organization designated under section 219 of the Immigration 
        and Nationality Act, or a state sponsor of terrorism designated 
        under section 6(j) of the Export Administration Act of 1979 or 
        section 620A of the Foreign Assistance Act of 1961; and
            [``(4) `nuclear weapon' means any weapon that contains or 
        uses nuclear material as defined in section 831(f)(1).''; and
            [(3) in section 2332b(g)(5)(B)(i), by inserting after 
        ``nuclear materials),'' the following: ``832 (relating to 
        participation in nuclear and weapons of mass destruction 
        threats to the United States)''.

[SEC. 2054. PROLIFERATION OF WEAPONS OF MASS DESTRUCTION.

    [(a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, Congress makes 
the following findings:
            [(1) Al Qaeda has tried to acquire or make weapons of mass 
        destruction since 1994 or earlier.
            [(2) The United States doubtless would be a prime target 
        for use of any such weapon by al Qaeda.
            [(3) Although the United States Government has redoubled 
        its international commitments to supporting the programs for 
        Cooperative Threat Reduction and other nonproliferation 
        assistance programs, nonproliferation experts continue to 
        express deep concern about the United States Government's 
        commitment and approach to securing the weapons of mass 
        destruction and related highly dangerous materials that are 
        still scattered among Russia and other countries of the former 
        Soviet Union.
            [(4) The cost of increased investment in the prevention of 
        proliferation of weapons of mass destruction and related 
        dangerous materials is greatly outweighed by the potentially 
        catastrophic cost to the United States of use of weapons of 
        mass destruction or related dangerous materials by the 
        terrorists who are so eager to acquire them.
    [(b) Sense of Congress.--It is the sense of Congress that--
            [(1) maximum effort to prevent the proliferation of weapons 
        of mass destruction, wherever such proliferation may occur, is 
        warranted; and
            [(2) the programs of the United States Government to 
        prevent or counter the proliferation of weapons of mass 
        destruction, including the Proliferation Security Initiative, 
        the programs for Cooperative Threat Reduction, and other 
        nonproliferation assistance programs, should be expanded, 
        improved, and better funded to address the global dimensions of 
        the proliferation threat.
    [(c) Requirement for Strategy.--Not later than 180 days after the 
date of the enactment of this Act, the President shall submit to 
Congress--
            [(1) a strategy for expanding and strengthening the 
        Proliferation Security Initiative, the programs for Cooperative 
        Threat Reduction, and other nonproliferation assistance 
        programs; and
            [(2) an estimate of the funding necessary to execute that 
        strategy.
    [(d) Report on Reforming the Cooperative Threat Reduction Program 
and Other Non-proliferation Assistance Programs.--Not later than 180 
days after the date of the enactment of this Act, the President shall 
submit to Congress a report evaluating whether the United States could 
more effectively address the global threat of nuclear proliferation 
by--
            [(1) establishing a central coordinator for the programs 
        for Cooperative Threat Reduction;
            [(2) eliminating the requirement that the President spend 
        no more than $50,000,000 annually on programs for Cooperative 
        Threat Reduction and other non-proliferation assistance 
        programs carried out outside the former Soviet Union; or
            [(3) repealing the provisions of the Soviet Nuclear Threat 
        Reduction Act of 1991 (22 U.S.C. 2551 note) that place 
        conditions on assistance to the former Soviet Union unrelated 
        to bilateral cooperation on weapons dismantlement.

[SEC. 2055. SENSE OF CONGRESS REGARDING INTERNATIONAL 
              COUNTERPROLIFERATION EFFORTS.

    [It is the sense of Congress that the United States should work 
with the international community to develop laws and an international 
legal regime with universal jurisdiction to enable the interdiction of 
nuclear material and technology, and the capture, interdiction, and 
prosecution of individuals or entities involved in the smuggling or 
transfer of nuclear material or technology to any state in the world 
where they do not fully disclose the nature of their nuclear program.

[SEC. 2056. REMOVAL OF POTENTIAL NUCLEAR WEAPONS MATERIALS FROM 
              VULNERABLE SITES WORLDWIDE.

    [(a) Sense of Congress.--It is the sense of Congress that removing 
potential nuclear weapons materials from vulnerable sites around the 
world would reduce the possibility that such materials could fall into 
the hands of al Qaeda or other groups and states hostile to the United 
States, and should be a top priority for achieving the national 
security of the United States. Several actions may be taken to reduce 
the risk that nuclear weapons materials may end up in terrorist hands, 
including--
            [(1) transporting such materials from such sites to secure 
        facilities;
            [(2) providing interim security upgrades for such materials 
        pending their removal from their current sites;
            [(3) managing such materials after their arrival at secure 
        facilities;
            [(4) purchasing such materials;
            [(5) converting such sites to the use of low-enriched 
        uranium fuels;
            [(6) assisting in the closure and decommissioning of such 
        sites;
            [(7) providing incentives to facilitate the removal of such 
        materials from vulnerable facilities;
            [(8) arranging for the shipment of potential nuclear 
        weapons materials to the United States, or to other countries 
        willing to accept such materials and able to provide high 
        levels of security for such materials, and dispose of such 
        materials, in order to ensure that United States national 
        security objectives are accomplished as quickly and effectively 
        as possible; and
            [(9) providing funds to upgrade security and accounting at 
        sites where potential nuclear weapons materials will remain for 
        an extended period in order to ensure that such materials are 
        secure against plausible potential threats, and will remain so 
        in the future.
    [(b) Report.--
            [(1) Not later than 30 days after the submittal to Congress 
        of the budget of the President for fiscal year 2006 pursuant to 
        section 1105(a) of title 31, United States Code, the 
        administration shall submit to Congress a report that includes 
        the following:
                    [(A) A list of the sites determined to be of the 
                highest priorities for removal of potential nuclear 
                weapons materials, based on the quantity and 
                attractiveness of such materials at such sites and the 
                risk of theft or diversion of such materials for 
                weapons purposes.
                    [(B) An inventory of all sites worldwide where 
                highly-enriched uranium or separated plutonium is 
                located, including, to the extent practicable, a 
                prioritized assessment of the terrorism and 
                proliferation risk posed by such materials at each such 
                site, based on the quantity of such materials, the 
                attractiveness of such materials for use in nuclear 
                weapons, the current level of security and accounting 
                for such materials, and the level of threat (including 
                the effects of terrorist or criminal activity and the 
                pay and morale of personnel and guards) in the country 
                or region where such sites are located.
                    [(C) A strategic plan, including measurable 
                milestones and metrics.
                    [(D) An estimate of the funds required to secure 
                these materials.
                    [(E) The recommendations of the Administration on 
                whether any further legislative actions or 
                international agreements are necessary to facilitate 
                the accomplishment of the objective.
            [(2) The report shall be submitted in unclassified form, 
        but may include a classified annex.
    [(c) Potential Nuclear Weapons Material Defined.--In this section, 
the term ``potential nuclear weapons material'' means plutonium, 
highly-enriched uranium, or other material capable of sustaining an 
explosive nuclear chain reaction, including irradiated materials if the 
radiation field from such materials is not sufficient to prevent the 
theft and use of such materials for an explosive nuclear chain 
reaction.

         [Subtitle E--Money Laundering and Terrorist Financing

  [CHAPTER 1--FUNDING TO COMBAT FINANCIAL CRIMES INCLUDING TERRORIST 
                               FINANCING

[SEC. 2101. ADDITIONAL AUTHORIZATION FOR FINCEN.

    [Subsection (d) of section 310 of title 31, United States Code, is 
amended--
            [(1) by striking ``appropriations.--There are authorized'' 
        and inserting ``Appropriations.--
            [``(1) In general.--There are authorized''; and
            [(2) by adding at the end the following new paragraph:
            [``(2) Authorization for funding key technological 
        improvements in mission-critical fincen systems.--There are 
        authorized to be appropriated for fiscal year 2005 the 
        following amounts, which are authorized to remain available 
        until expended:
                    [``(A) BSA direct.--For technological improvements 
                to provide authorized law enforcement and financial 
                regulatory agencies with Web-based access to FinCEN 
                data, to fully develop and implement the highly secure 
                network required under section 362 of Public Law 107-56 
                to expedite the filing of, and reduce the filing costs 
                for, financial institution reports, including 
                suspicious activity reports, collected by FinCEN under 
                chapter 53 and related provisions of law, and enable 
                FinCEN to immediately alert financial institutions 
                about suspicious activities that warrant immediate and 
                enhanced scrutiny, and to provide and upgrade advanced 
                information-sharing technologies to materially improve 
                the Government's ability to exploit the information in 
                the FinCEN databanks $16,500,000.
                    [``(B) Advanced analytical technologies.--To 
                provide advanced analytical tools needed to ensure that 
                the data collected by FinCEN under chapter 53 and 
                related provisions of law are utilized fully and 
                appropriately in safeguarding financial institutions 
                and supporting the war on terrorism, $5,000,000.
                    [``(C) Data networking modernization.--To improve 
                the telecommunications infrastructure to support the 
                improved capabilities of the FinCEN systems, 
                $3,000,000.
                    [``(D) Enhanced compliance capability.--To improve 
                the effectiveness of the Office of Compliance in 
                FinCEN, $3,000,000.
                    [``(E) Detection and prevention of financial crimes 
                and terrorism.--To provide development of, and training 
                in the use of, technology to detect and prevent 
                financial crimes and terrorism within and without the 
                United States, $8,000,000.''.

[SEC. 2102. MONEY LAUNDERING AND FINANCIAL CRIMES STRATEGY 
              REAUTHORIZATION.

    [(a) Program.--Section 5341(a)(2) of title 31, United States Code, 
is amended by striking ``and 2003,'' and inserting ``2003, and 2005,''.
    [(b) Reauthorization of Appropriations.--Section 5355 of title 31, 
United States Code, is amended by adding at the end the following:


 
 
 
[``Fiscal year 2004...................................      $15,000,000
[Fiscal year 2005.....................................   $15,000,000''.

  [CHAPTER 2--ENFORCEMENT TOOLS TO COMBAT FINANCIAL CRIMES INCLUDING 
                          TERRORIST FINANCING

 [Subchapter A--Money Laundering Abatement and Financial Antiterrorism 
                         Technical Corrections

[SEC. 2111. SHORT TITLE.

    [This subtitle may be cited as the ``Money Laundering Abatement and 
Financial Antiterrorism Technical Corrections Act of 2004''.

[SEC. 2112. TECHNICAL CORRECTIONS TO PUBLIC LAW 107-56.

    [(a) The heading of title III of Public Law 107-56 is amended to 
read as follows:

 [``TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL 
                      ANTITERRORISM ACT OF 2001''.

    [(b) The table of contents of Public Law 107-56 is amended by 
striking the item relating to title III and inserting the following new 
item:

 [``TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL 
                      ANTITERRORISM ACT OF 2001''.

    [(c) Section 302 of Public Law 107-56 is amended--
            [(1) in subsection (a)(4), by striking the comma after 
        ``movement of criminal funds'';
            [(2) in subsection (b)(7), by inserting ``or types of 
        accounts'' after ``classes of international transactions''; and
            [(3) in subsection (b)(10), by striking ``subchapters II 
        and III'' and inserting ``subchapter II''.
    [(d) Section 303(a) of Public Law 107-56 is amended by striking 
``Anti-Terrorist Financing Act'' and inserting ``Financial 
Antiterrorism Act''.
    [(e) The heading for section 311 of Public Law 107-56 is amended by 
striking ``or international transactions'' and inserting 
``international transactions, or types of accounts''.
    [(f) Section 314 of Public Law 107-56 is amended--
            [(1) in paragraph (1)--
                    [(A) by inserting a comma after ``organizations 
                engaged in''; and
                    [(B) by inserting a comma after ``credible evidence 
                of engaging in'';
            [(2) in paragraph (2)(A)--
                    [(A) by striking ``and'' after ``nongovernmental 
                organizations,''; and
                    [(B) by inserting a comma after ``unwittingly 
                involved in such finances'';
            [(3) in paragraph (3)(A)--
                    [(A) by striking ``to monitor accounts of'' and 
                inserting ``monitor accounts of,''; and
                    [(B) by striking the comma after ``organizations 
                identified''; and
            [(4) in paragraph (3)(B), by inserting ``financial'' after 
        ``size, and nature of the''.
    [(g) Section 321 of Public Law 107-56 is amended by striking 
``5312(2)'' and inserting ``5312(a)(2)''.
    [(h) Section 325 of Public Law 107-56 is amended by striking ``as 
amended by section 202 of this title,'' and inserting ``as amended by 
section 352,''.
    [(i) Subsections (a)(2) and (b)(2) of section 327 of Public Law 
107-56 are each amended by inserting a period after ``December 31, 
2001'' and striking all that follows through the period at the end of 
each such subsection.
    [(j) Section 356(c)(4) of Public Law 107-56 is amended by striking 
``or business or other grantor trust'' and inserting ``, business 
trust, or other grantor trust''.
    [(k) Section 358(e) of Public Law 107-56 is amended--
            [(1) by striking ``Section 123(a)'' and inserting ``That 
        portion of section 123(a)'';
            [(2) by striking ``is amended to read'' and inserting 
        ``that precedes paragraph (1) of such section is amended to 
        read''; and
            [(3) by striking ``.'.'' at the end of such section and 
        inserting ``--'''.
    [(l) Section 360 of Public Law 107-56 is amended--
            [(1) in subsection (a), by inserting ``the'' after 
        ``utilization of the funds of''; and
            [(2) in subsection (b), by striking ``at such 
        institutions'' and inserting ``at such institution''.
    [(m) Section 362(a)(1) of Public Law 107-56 is amended by striking 
``subchapter II or III'' and inserting ``subchapter II''.
    [(n) Section 365 of Public Law 107-56 is amended --
            [(1) by redesignating the 2nd of the 2 subsections 
        designated as subsection (c) (relating to a clerical amendment) 
        as subsection (d); and
            [(2) by redesignating subsection (f) as subsection (e).
    [(o) Section 365(d) of Public Law 107-56 (as so redesignated by 
subsection (n) of this section) is amended by striking ``section 5332 
(as added by section 112 of this title)'' and inserting ``section 
5330''.

[SEC. 2113. TECHNICAL CORRECTIONS TO OTHER PROVISIONS OF LAW.

    [(a) Section 310(c) of title 31, United States Code, is amended by 
striking ``the Network'' each place such term appears and inserting 
``FinCEN''.
    [(b) Section 5312(a)(3)(C) of title 31, United States Code, is 
amended by striking ``sections 5333 and 5316'' and inserting ``sections 
5316 and 5331''.
    [(c) Section 5318(i) of title 31, United States Code, is amended--
            [(1) in paragraph (3)(B), by inserting a comma after 
        ``foreign political figure'' the 2nd place such term appears; 
        and
            [(2) in the heading of paragraph (4), by striking 
        ``Definition'' and inserting ``Definitions''.
    [(d) Section 5318(k)(1)(B) of title 31, United States Code, is 
amended by striking ``section 5318A(f)(1)(B)'' and inserting ``section 
5318A(e)(1)(B)''.
    [(e) The heading for section 5318A of title 31, United States Code, 
is amended to read as follows:
[``Sec. 5318A Special measures for jurisdictions, financial 
              institutions, international transactions, or types of 
              accounts of primary money laundering concern''.
    [(f) Section 5318A of title 31, United States Code, is amended--
            [(1) in subsection (a)(4)(A), by striking ``, as defined in 
        section 3 of the Federal Deposit Insurance Act,'' and inserting 
        `` (as defined in section 3 of the Federal Deposit Insurance 
        Act)'';
            [(2) in subsection (a)(4)(B)(iii), by striking ``or class 
        of transactions'' and inserting ``class of transactions, or 
        type of account'';
            [(3) in subsection (b)(1)(A), by striking ``or class of 
        transactions to be'' and inserting ``class of transactions, or 
        type of account to be''; and
            [(4) in subsection (e)(3), by inserting ``or subsection (i) 
        or (j) of section 5318'' after ``identification of individuals 
        under this section''.
    [(g) Section 5324(b) of title 31, United States Code, is amended by 
striking ``5333'' each place such term appears and inserting ``5331''.
    [(h) Section 5332 of title 31, United States Code, is amended--
            [(1) in subsection (b)(2), by striking ``, subject to 
        subsection (d) of this section''; and
            [(2) in subsection (c)(1), by striking ``, subject to 
        subsection (d) of this section,''.
    [(i) The table of sections for subchapter II of chapter 53 of title 
31, United States Code, is amended by striking the item relating to 
section 5318A and inserting the following new item:

[``5318A. Special measures for jurisdictions, financial institutions, 
                            international transactions, or types of 
                            accounts of primary money laundering 
                            concern.''.
    [(j) Section 18(w)(3) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(w)(3)) is amended by inserting a comma after ``agent of 
such institution''.
    [(k) Section 21(a)(2) of the Federal Deposit Insurance Act (12 
U.S.C. 1829b(a)(2)) is amended by striking ``recognizes that'' and 
inserting ``recognizing that''.
    [(l) Section 626(e) of the Fair Credit Reporting Act (15 U.S.C. 
1681v(e)) is amended by striking ``governmental agency'' and inserting 
``government agency''.

[SEC. 2114. REPEAL OF REVIEW.

    [Title III of Public Law 107-56 is amended by striking section 303 
(31 U.S.C. 5311 note).

[SEC. 2115. EFFECTIVE DATE.

    [The amendments made by this subtitle to Public Law 107-56, the 
United States Code, the Federal Deposit Insurance Act, and any other 
provision of law shall take effect as if such amendments had been 
included in Public Law 107-56, as of the date of the enactment of such 
Public Law, and no amendment made by such Public Law that is 
inconsistent with an amendment made by this subtitle shall be deemed to 
have taken effect.

              [Subchapter B--Additional Enforcement Tools

[SEC. 2121. BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING.

    [(a) Production of Documents.--Section 5114(a) of title 31, United 
States Code (relating to engraving and printing currency and security 
documents), is amended--
            [(1) by striking ``(a) The Secretary of the Treasury'' and 
        inserting:
    [``(a) Authority to Engrave and Print.--
            [``(1) In general.--The Secretary of the Treasury''; and
            [(2) by adding at the end the following new paragraphs:
            [``(2) Engraving and printing for other governments.--The 
        Secretary of the Treasury may produce currency, postage stamps, 
        and other security documents for foreign governments if--
                    [``(A) the Secretary of the Treasury determines 
                that such production will not interfere with engraving 
                and printing needs of the United States; and
                    [``(B) the Secretary of State determines that such 
                production would be consistent with the foreign policy 
                of the United States.
            [``(3) Procurement guidelines.--Articles, material, and 
        supplies procured for use in the production of currency, 
        postage stamps, and other security documents for foreign 
        governments pursuant to paragraph (2) shall be treated in the 
        same manner as articles, material, and supplies procured for 
        public use within the United States for purposes of title III 
        of the Act of March 3, 1933 (41 U.S.C. 10a et seq.; commonly 
        referred to as the Buy American Act).''.
    [(b) Reimbursement.--Section 5143 of title 31, United States Code 
(relating to payment for services of the Bureau of Engraving and 
Printing), is amended--
            [(1) in the first sentence, by inserting ``or to a foreign 
        government under section 5114'' after ``agency'';
            [(2) in the second sentence, by inserting ``and other'' 
        after ``including administrative''; and
            [(3) in the last sentence, by inserting ``, and the 
        Secretary shall take such action, in coordination with the 
        Secretary of State, as may be appropriate to ensure prompt 
        payment by a foreign government of any invoice or statement of 
        account submitted by the Secretary with respect to services 
        rendered under section 5114'' before the period at the end.

[SEC. 2122. CONDUCT IN AID OF COUNTERFEITING.

    [(a) In General.--Section 474(a) of title 18, United States Code, 
is amended by inserting after the paragraph beginning ``Whoever has in 
his control, custody, or possession any plate'' the following:
    [``Whoever, with intent to defraud, has in his custody, control, or 
possession any material that can be used to make, alter, forge or 
counterfeit any obligations and other securities of the United States 
or any part of such securities and obligations, except under the 
authority of the Secretary of the Treasury; or''.
    [(b) Foreign Obligations and Securities.--Section 481 of title 18, 
United States Code, is amended by inserting after the paragraph 
beginning ``Whoever, with intent to defraud'' the following:
    [``Whoever, with intent to defraud, has in his custody, control, or 
possession any material that can be used to make, alter, forge or 
counterfeit any obligation or other security of any foreign government, 
bank or corporation; or''.
    [(c) Counterfeit Acts.--Section 470 of title 18, United States 
Code, is amended by striking ``or 474'' and inserting ``474, or 474A''.
    [(d) Materials Used in Counterfeiting.--Section 474A(b) of title 
18, United States Code, is amended by striking ``any essentially 
identical'' and inserting ``any thing or material made after or in the 
similitude of any''.

            [Subtitle F--Criminal History Background Checks

[SEC. 2141. SHORT TITLE.

    [This subtitle may be cited as the ``Criminal History Access Means 
Protection of Infrastructures and Our Nation Act''.

[SEC. 2142. CRIMINAL HISTORY BACKGROUND CHECKS.

    [(a) In General.--Section 534 of title 28, United States Code, is 
amended by adding at the end the following:
    [``(f)(1) Under rules prescribed by the Attorney General, the 
Attorney General shall, within 60 days after the date of enactment, 
initiate a pilot program to establish and maintain a system for 
providing to an employer criminal history information that--
            [``(A) is in the possession of the Attorney General; and
            [``(B) is requested by an employer as part of an employee 
        criminal history investigation that has been authorized by the 
        State where the employee works or where the employer has their 
        principal place of business;
in order to ensure that a prospective employee is suitable for certain 
employment positions.
    [``(2) The Attorney General shall require that an employer seeking 
criminal history information of an employee request such information 
and submit fingerprints or other biometric identifiers as approved by 
the Attorney General to provide a positive and reliable identification 
of such prospective employee.
    [``(3) The Director of the Federal Bureau of Investigation may 
require an employer to pay a reasonable fee for such information.
    [``(4) Upon receipt of fingerprints or other biometric identifiers, 
the Attorney General shall conduct an Integrated Fingerprint 
Identification System of the Federal Bureau of Investigation (IAFIS) 
check and provide the results of such check to the requester.
    [``(5) As used in this subsection,
            [``(A) the term `criminal history information' and 
        `criminal history records' includes--
                    [``(i) an identifying description of the individual 
                to whom it pertains;
                    [``(ii) notations of arrests, detentions, 
                indictments, or other formal criminal charges 
                pertaining to such individual; and
                    [``(iii) any disposition to a notation revealed in 
                subparagraph (B), including acquittal, sentencing, 
                correctional supervision, or release.
            [``(B) the term `Integrated Automated Fingerprint 
        Identification System of the Federal Bureau of Investigation 
        (IAFIS)' means the national depository for fingerprint, 
        biometric, and criminal history information, through which 
        fingerprints are processed electronically.
    [``(6) Nothing in this subsection shall preclude the Attorney 
General from authorizing or requiring criminal history record checks on 
individuals employed or seeking employment in positions vital to the 
Nation's critical infrastructure or key resources as those terms are 
defined in section 1016(e) of Public Law 107-56 (42 U.S.C. 5195c(e)) 
and section 2(9) of the Homeland Security Act of 2002 (6 U.S.C. 
101(9)), if pursuant to a law or executive order.''.
    [(b) Report to Congress.--
            [(1) In general.--Not later than 60 days after the 
        conclusion of the pilot program, the Attorney General shall 
        report to the appropriate committees of Congress regarding all 
        statutory requirements for criminal history record checks that 
        are required to be conducted by the Department of Justice or 
        any of its components.
            [(2) Identification of information.--The Attorney General 
        shall identify the number of records requested, including the 
        type of information requested, usage of different terms and 
        definitions regarding criminal history information, and the 
        variation in fees charged for such information and who pays 
        such fees.
            [(3) Recommendations.--The Attorney General shall make 
        recommendations for consolidating the existing procedures into 
        a unified procedure consistent with that provided in section 
        534(f) of title 28, United States Code, as amended by this 
        subtitle. In making the recommendations to Congress, the 
        Attorney General shall consider--
                    [(A) the effectiveness of utilizing commercially 
                available databases as a supplement to IAFIS criminal 
                history information checks;
                    [(B) the effectiveness of utilizing State databases 
                as a supplement to IAFIS criminal history information 
                checks;
                    [(C) any feasibility studies by the Department of 
                Justice of the FBI's resources and structure to 
                establish a system to provide criminal history 
                information; and
                    [(D) privacy rights and other employee protections 
                to include employee consent, access to the records used 
                if employment was denied, an appeal mechanism, and 
                penalties for misuse of the information.

[SEC. 2143. PROTECT ACT.

    [Public Law 108-21 is amended--
            [(1) in section 108(a)(2)(A) by striking ``an 18 month'' 
        and inserting ``a 30-month''; and
            [(2) in section 108(a)(3)(A) by striking ``an 18-month'' 
        and inserting ``a 30-month''.

[SEC. 2144. REVIEWS OF CRIMINAL RECORDS OF APPLICANTS FOR PRIVATE 
              SECURITY OFFICER EMPLOYMENT.

    [(a) Short Title.--This section may be cited as the ``Private 
Security Officer Employment Authorization Act of 2004''.
    [(b) Findings.--Congress finds that--
            [(1) employment of private security officers in the United 
        States is growing rapidly;
            [(2) private security officers function as an adjunct to, 
        but not a replacement for, public law enforcement by helping to 
        reduce and prevent crime;
            [(3) such private security officers protect individuals, 
        property, and proprietary information, and provide protection 
        to such diverse operations as banks, hospitals, research and 
        development centers, manufacturing facilities, defense and 
        aerospace contractors, high technology businesses, nuclear 
        power plants, chemical companies, oil and gas refineries, 
        airports, communication facilities and operations, office 
        complexes, schools, residential properties, apartment 
        complexes, gated communities, and others;
            [(4) sworn law enforcement officers provide significant 
        services to the citizens of the United States in its public 
        areas, and are supplemented by private security officers;
            [(5) the threat of additional terrorist attacks requires 
        cooperation between public and private sectors and demands 
        professional, reliable, and responsible security officers for 
        the protection of people, facilities, and institutions;
            [(6) the trend in the Nation toward growth in such security 
        services has accelerated rapidly;
            [(7) such growth makes available more public sector law 
        enforcement officers to combat serious and violent crimes, 
        including terrorism;
            [(8) the American public deserves the employment of 
        qualified, well-trained private security personnel as an 
        adjunct to sworn law enforcement officers; and
            [(9) private security officers and applicants for private 
        security officer positions should be thoroughly screen and 
        trained.
    [(c) Definitions.--In this Act:
            [(1) Employee.--The term ``employee'' includes both a 
        current employee and an applicant for employment as a private 
        security officer.
            [(2) Authorized employer.--The term ``authorized employer'' 
        means any person that--
                    [(A) employs private security officers; and
                    [(B) is authorized by regulations promulgated by 
                the Attorney General to request a criminal history 
                record information search of an employee through a 
                State identification bureau pursuant to this section.
            [(3) Private security officer.--The term ``private security 
        officer'--
                    [(A) means an individual other than an employee of 
                a Federal, State, or local government, whose primary 
                duty is to perform security services, full- or part-
                time, for consideration, whether armed or unarmed and 
                in uniform or plain clothes (except for services 
                excluded from coverage under this Act if the Attorney 
                General determines by regulation that such exclusion 
                would serve the public interest); but
                    [(B) does not include--
                            [(i) employees whose duties are primarily 
                        internal audit or credit functions;
                            [(ii) employees of electronic security 
                        system companies acting as technicians or 
                        monitors; or
                            [(iii) employees whose duties primarily 
                        involve the secure movement of prisoners.
            [(4) Security services.--The term ``security services'' 
        means acts to protect people or property as defined by 
        regulations promulgated by the Attorney General.
            [(5) State identification bureau.--The term ``State 
        identification bureau'' means the State entity designated by 
        the Attorney General for the submission and receipt of criminal 
        history record information.
    [(d) Criminal History Record Information Search.--
            [(1) In general.--
                    [(A) Submission of fingerprints.--An authorized 
                employer may submit to the State identification bureau 
                of a participating State, fingerprints or other means 
                of positive identification, as determined by the 
                Attorney General, of an employee of such employer for 
                purposes of a criminal history record information 
                search pursuant to this Act.
                    [(B) Employee rights.--
                            [(i) Permission.--An authorized employer 
                        shall obtain written consent from an employee 
                        to submit to the State identification bureau of 
                        a participating State the request to search the 
                        criminal history record information of the 
                        employee under this Act.
                            [(ii) Access.--An authorized employer shall 
                        provide to the employee confidential access to 
                        any information relating to the employee 
                        received by the authorized employer pursuant to 
                        this Act.
                    [(C) Providing information to the state 
                identification bureau.--Upon receipt of a request for a 
                criminal history record information search from an 
                authorized employer pursuant to this Act, submitted 
                through the State identification bureau of a 
                participating State, the Attorney General shall--
                            [(i) search the appropriate records of the 
                        Criminal Justice Information Services Division 
                        of the Federal Bureau of Investigation; and
                            [(ii) promptly provide any resulting 
                        identification and criminal history record 
                        information to the submitting State 
                        identification bureau requesting the 
                        information.
                    [(D) Use of information.--
                            [(i) In general.--Upon receipt of the 
                        criminal history record information from the 
                        Attorney General by the State identification 
                        bureau, the information shall be used only as 
                        provided in clause (ii).
                            [(ii) Terms.--In the case of--
                                    [(I) a participating State that has 
                                no State standards for qualification to 
                                be a private security officer, the 
                                State shall notify an authorized 
                                employer as to the fact of whether an 
                                employee has been--
                                            [(aa) convicted of a 
                                        felony, an offense involving 
                                        dishonesty or a false statement 
                                        if the conviction occurred 
                                        during the previous 10 years, 
                                        or an offense involving the use 
                                        or attempted use of physical 
                                        force against the person of 
                                        another if the conviction 
                                        occurred during the previous 10 
                                        years; or
                                            [(bb) charged with a 
                                        criminal felony for which there 
                                        has been no resolution during 
                                        the preceding 365 days; or
                                    [(II) a participating State that 
                                has State standards for qualification 
                                to be a private security officer, the 
                                State shall use the information 
                                received pursuant to this Act in 
                                applying the State standards and shall 
                                only notify the employer of the results 
                                of the application of the State 
                                standards.
                    [(E) Frequency of requests.--An authorized employer 
                may request a criminal history record information 
                search for an employee only once every 12 months of 
                continuous employment by that employee unless the 
                authorized employer has good cause to submit additional 
                requests.
            [(2) Regulations.--Not later than 180 days after the date 
        of enactment of this Act, the Attorney General shall issue such 
        final or interim final regulations as may be necessary to carry 
        out this Act, including--
                    [(A) measures relating to the security, 
                confidentiality, accuracy, use, submission, 
                dissemination, destruction of information and audits, 
                and record keeping;
                    [(B) standards for qualification as an authorized 
                employer; and
                    [(C) the imposition of reasonable fees necessary 
                for conducting the background checks.
            [(3) Criminal penalties for use of information.--Whoever 
        knowingly and intentionally uses any information obtained 
        pursuant to this Act other than for the purpose of determining 
        the suitability of an individual for employment as a private 
        security officer shall be fined under title 18, United States 
        Code, or imprisoned for not more than 2 years, or both.
            [(4) User fees.--
                    [(A) In general.--The Director of the Federal 
                Bureau of Investigation may--
                            [(i) collect fees to process background 
                        checks provided for by this Act; and
                            [(ii) establish such fees at a level to 
                        include an additional amount to defray expenses 
                        for the automation of fingerprint 
                        identification and criminal justice information 
                        services and associated costs.
                    [(B) Limitations.--Any fee collected under this 
                subsection--
                            [(i) shall, consistent with Public Law 101-
                        515 and Public Law 104-99, be credited to the 
                        appropriation to be used for salaries and other 
                        expenses incurred through providing the 
                        services described in such Public Laws and in 
                        subparagraph (A);
                            [(ii) shall be available for expenditure 
                        only to pay the costs of such activities and 
                        services; and
                            [(iii) shall remain available until 
                        expended.
                    [(C) State costs.--Nothing in this Act shall be 
                construed as restricting the right of a State to assess 
                a reasonable fee on an authorized employer for the 
                costs to the State of administering this Act.
            [(5) State opt out.--A State may decline to participate in 
        the background check system authorized by this Act by enacting 
        a law or issuing an order by the Governor (if consistent with 
        State law) providing that the State is declining to participate 
        pursuant to this subsection.

[SEC. 2145. TASK FORCE ON CLEARINGHOUSE FOR IAFIS CRIMINAL HISTORY 
              RECORDS.

    [Not later than 60 days after the date of enactment of this Act, 
the Attorney General shall establish a task force to examine the 
establishment of a national clearinghouse to process IAFIS criminal 
history record requests received directly from employers providing 
private security guard services with respect to critical infrastructure 
(as defined in section 1016(e) of Public Law 107-56 (42 U.S.C. 
5195c(e))) and other private security guard services. Members of this 
task force shall include representatives of the Department of Justice 
and the Federal Bureau of Investigation, in consultation with 
representatives of the security guard industry. Not later than 90 days 
after the establishment of the task force, the Attorney General shall 
submit to Congress a report outlining how the national clearinghouse 
shall be established, and specifying a date certain (within one year of 
the enactment of this Act) by which the national clearinghouse will 
begin operations.

[Subtitle G--Protection of United States Aviation System From Terrorist 
                                Attacks

[SEC. 2171. PROVISION FOR THE USE OF BIOMETRIC OR OTHER TECHNOLOGY.

    [(a) Use of Biometric Technology.--Section 44903(h) of title 49, 
United States Code, is amended--
            [(1) in paragraph (4)(E) by striking ``may provide for'' 
        and inserting ``shall issue, not later than 120 days after the 
        date of enactment of paragraph (5), guidance for''; and
            [(2) by adding at the end the following:
            [``(5) Use of biometric technology in airport access 
        control systems.--In issuing guidance under paragraph (4)(E), 
        the Assistant Secretary of Homeland Security (Transportation 
        Security Administration), in consultation with the Attorney 
        General, representatives of the aviation industry, the 
        biometrics industry, and the National Institute of Standards 
        and Technology, shall establish, at a minimum--
                    [``(A) comprehensive technical and operational 
                system requirements and performance standards for the 
                use of biometrics in airport access control systems 
                (including airport perimeter access control systems) to 
                ensure that the biometric systems are effective, 
                reliable, and secure;
                    [``(B) a list of products and vendors that meet 
                such requirements and standards;
                    [``(C) procedures for implementing biometric 
                systems--
                            [``(i) to ensure that individuals do not 
                        use an assumed identity to enroll in a 
                        biometric system; and
                            [``(ii) to resolve failures to enroll, 
                        false matches, and false non-matches; and
                    [``(D) best practices for incorporating biometric 
                technology into airport access control systems in the 
                most effective manner, including a process to best 
                utilize existing airport access control systems, 
                facilities, and equipment and existing data networks 
                connecting airports.
            [``(6) Use of biometric technology for law enforcement 
        officer travel.--
                    [``(A) In general.--Not later than 120 days after 
                the date of enactment of this paragraph, the Assistant 
                Secretary in consultation with the Attorney General 
                shall--
                            [``(i) establish a law enforcement officer 
                        travel credential that incorporates biometrics 
                        and is uniform across all Federal, State, and 
                        local government law enforcement agencies;
                            [``(ii) establish a process by which the 
                        travel credential will be used to verify the 
                        identity of a Federal, State, or local 
                        government law enforcement officer seeking to 
                        carry a weapon on board an aircraft, without 
                        unnecessarily disclosing to the public that the 
                        individual is a law enforcement officer;
                            [``(iii) establish procedures--
                                    [``(I) to ensure that only Federal, 
                                State, and local government law 
                                enforcement officers are issued the 
                                travel credential;
                                    [``(II) to resolve failures to 
                                enroll, false matches, and false non-
                                matches relating to use of the travel 
                                credential; and
                                    [``(III) to invalidate any travel 
                                credential that is lost, stolen, or no 
                                longer authorized for use;
                            [``(iv) begin issuance of the travel 
                        credential to each Federal, State, and local 
                        government law enforcement officer authorized 
                        by the Assistant Secretary to carry a weapon on 
                        board an aircraft; and
                            [``(v) take such other actions with respect 
                        to the travel credential as the Secretary 
                        considers appropriate.
                    [``(B) Funding.--There are authorized to be 
                appropriated such sums as may be necessary to carry out 
                this paragraph.
            [``(7) Definitions.--In this subsection, the following 
        definitions apply:
                    [``(A) Biometric information.--The term `biometric 
                information' means the distinct physical or behavioral 
                characteristics that are used for identification, or 
                verification of the identity, of an individual.
                    [``(B) Biometrics.--The term `biometrics' means a 
                technology that enables the automated identification, 
                or verification of the identity, of an individual based 
                on biometric information.
                    [``(C) Failure to enroll.--The term `failure to 
                enroll' means the inability of an individual to enroll 
                in a biometric system due to an insufficiently 
                distinctive biometric sample, the lack of a body part 
                necessary to provide the biometric sample, a system 
                design that makes it difficult to provide consistent 
                biometric information, or other factors.
                    [``(D) False match.--The term `false match' means 
                the incorrect matching of one individual's biometric 
                information to another individual's biometric 
                information by a biometric system.
                    [``(E) False non-match.--The term `false non-match' 
                means the rejection of a valid identity by a biometric 
                system.
                    [``(F) Secure area of an airport.--The term `secure 
                area of an airport' means the sterile area and the 
                Secure Identification Display Area of an airport (as 
                such terms are defined in section 1540.5 of title 49, 
                Code of Federal Regulations, or any successor 
                regulation to such section).''.
    [(b) Funding for Use of Biometric Technology in Airport Access 
Control Systems.--
            [(1) Grant authority.--Section 44923(a)(4) of title 49, 
        United States Code, is amended--
                    [(A) by striking ``and'' at the end of paragraph 
                (3);
                    [(B) by redesignating paragraph (4) as paragraph 
                (5); and
                    [(C) by inserting after paragraph (3) the 
                following:
            [``(4) for projects to implement biometric technologies in 
        accordance with guidance issued under section 44903(h)(4)(E); 
        and''.
            [(2) Authorization of appropriations.--Section 44923(i)(1) 
        of such title is amended by striking ``$250,000,000 for each of 
        fiscal years 2004 through 2007'' and inserting ``$250,000,000 
        for fiscal year 2004, $345,000,000 for fiscal year 2005, and 
        $250,000,000 for each of fiscal years 2006 and 2007''.

[SEC. 2172. TRANSPORTATION SECURITY STRATEGIC PLANNING.

    [Section 44904 of title 49, United States Code, is amended--
            [(1) by redesignating subsection (c) as subsection (e); and
            [(2) by inserting after subsection (b) the following:
    [``(c) Transportation Security Strategic Planning.--
            [``(1) In general.--The Secretary of Homeland Security in 
        consultation with the Attorney General, shall prepare and 
        update, as needed, a transportation sector specific plan and 
        transportation modal security plans in accordance with this 
        section.
            [``(2) Contents.--At a minimum, the modal security plan for 
        aviation prepared under paragraph (1) shall--
                    [``(A) set risk-based priorities for defending 
                aviation assets;
                    [``(B) select the most practical and cost-effective 
                methods for defending aviation assets;
                    [``(C) assign roles and missions to Federal, State, 
                regional, and local authorities and to stakeholders;
                    [``(D) establish a damage mitigation and recovery 
                plan for the aviation system in the event of a 
                terrorist attack; and
                    [``(E) include a threat matrix document that 
                outlines each threat to the United States civil 
                aviation system and the corresponding layers of 
                security in place to address such threat.
            [``(3) Reports.--Not later than 180 days after the date of 
        enactment of the subsection and annually thereafter, the 
        Secretary shall submit to the Committee on Transportation and 
        Infrastructure and the Committee on the Judiciary of the House 
        of Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report containing the plans 
        prepared under paragraph (1), including any updates to the 
        plans. The report may be submitted in a classified format.
    [``(d) Operational Criteria.--Not later than 90 days after the date 
of submission of the report under subsection (c)(3), the Assistant 
Secretary of Homeland Security (Transportation Security Administration) 
in consultation with the Attorney General shall issue operational 
criteria to protect airport infrastructure and operations against the 
threats identified in the plans prepared under subsection (c)(1) and 
shall approve best practices guidelines for airport assets.''.

[SEC. 2173. NEXT GENERATION AIRLINE PASSENGER PRESCREENING.

    [(a) In General.--Section 44903(j)(2) of title 49, United States 
Code, is amended by adding at the end the following:
                    [``(C) Next generation airline passenger 
                prescreening.--
                            [``(i) Commencement of testing.--Not later 
                        than November 1, 2004, the Assistant Secretary 
                        of Homeland Security (Transportation Security 
                        Administration), or the designee of the 
                        Assistant Secretary, shall commence testing of 
                        a next generation passenger prescreening system 
                        that will allow the Department of Homeland 
                        Security to assume the performance of comparing 
                        passenger name records to the automatic 
                        selectee and no fly lists, utilizing all 
                        appropriate records in the consolidated and 
                        integrated terrorist watchlist maintained by 
                        the Federal Government.
                            [``(ii) Assumption of function.--Not later 
                        than 180 days after completion of testing under 
                        clause (i), the Assistant Secretary, or the 
                        designee of the Assistant Secretary, shall 
                        assume the performance of the passenger 
                        prescreening function of comparing passenger 
                        name records to the automatic selectee and no 
                        fly lists and utilize all appropriate records 
                        in the consolidated and integrated terrorist 
                        watchlist maintained by the Federal Government 
                        in performing that function.
                            [``(iii) Requirements.--In assuming 
                        performance of the function under clause (i), 
                        the Assistant Secretary shall--
                                    [``(I) establish a procedure to 
                                enable airline passengers, who are 
                                delayed or prohibited from boarding a 
                                flight because the next generation 
                                passenger prescreening system 
                                determined that they might pose a 
                                security threat, to appeal such 
                                determination and correct information 
                                contained in the system;
                                    [``(II) ensure that Federal 
                                Government databases that will be used 
                                to establish the identity of a 
                                passenger under the system will not 
                                produce a large number of false 
                                positives;
                                    [``(III) establish an internal 
                                oversight board to oversee and monitor 
                                the manner in which the system is being 
                                implemented;
                                    [``(IV) establish sufficient 
                                operational safeguards to reduce the 
                                opportunities for abuse;
                                    [``(V) implement substantial 
                                security measures to protect the system 
                                from unauthorized access;
                                    [``(VI) adopt policies establishing 
                                effective oversight of the use and 
                                operation of the system; and
                                    [``(VII) ensure that there are no 
                                specific privacy concerns with the 
                                technological architecture of the 
                                system.
                            [``(iv) Passenger name records.--Not later 
                        than 60 days after the completion of the 
                        testing of the next generation passenger 
                        prescreening system, the Assistant Secretary 
                        shall require air carriers to supply to the 
                        Assistant Secretary the passenger name records 
                        needed to begin implementing the next 
                        generation passenger prescreening system.
                    [``(D) Screening of employees against watchlist.--
                The Assistant Secretary of Homeland Security 
                (Transportation Security Administration), in 
                coordination with the Secretary of Transportation and 
                the Administrator of the Federal Aviation 
                Administration, shall ensure that individuals are 
                screened against all appropriate records in the 
                consolidated and integrated terrorist watchlist 
                maintained by the Federal Government before--
                            [``(i) being certificated by the Federal 
                        Aviation Administration;
                            [``(ii) being issued a credential for 
                        access to the secure area of an airport; or
                            [``(iii) being issued a credential for 
                        access to the air operations area (as defined 
                        in section 1540.5 of title 49, Code of Federal 
                        Regulations, or any successor regulation to 
                        such section) of an airport.
                    [``(E) Appeal procedures.--The Assistant Secretary 
                shall establish a timely and fair process for 
                individuals identified as a threat under subparagraph 
                (D) to appeal the determination and correct any 
                erroneous information.
                    [``(F) Definition.--In this paragraph, the term 
                `secure area of an airport' means the sterile area and 
                the Secure Identification Display Area of an airport 
                (as such terms are defined in section 1540.5 of title 
                49, Code of Federal Regulations, or any successor 
                regulation to such section).''.
    [(b) GAO Report.--
            [(1) In general.--Not later than 90 days after the date on 
        which the Assistant Secretary of Homeland Security 
        (Transportation Security Administration) assumes performance of 
        the passenger prescreening function under section 
        44903(j)(2)(C)(ii) of title 49, United States Code, the 
        Comptroller General shall submit to the appropriate 
        congressional committees a report on the assumption of such 
        function. The report may be submitted in a classified format.
            [(2) Contents.--The report under paragraph (1) shall 
        address--
                    [(A) whether a system exists in the next generation 
                passenger prescreening system whereby aviation 
                passengers, determined to pose a threat and either 
                delayed or prohibited from boarding their scheduled 
                flights by the Transportation Security Administration, 
                may appeal such a decision and correct erroneous 
                information;
                    [(B) the sufficiency of identifying information 
                contained in passenger name records and any government 
                databases for ensuring that a large number of false 
                positives will not result under the next generation 
                passenger prescreening system in a significant number 
                of passengers being treated as a threat mistakenly or 
                in security resources being diverted;
                    [(C) whether the Transportation Security 
                Administration stress tested the next generation 
                passenger prescreening system;
                    [(D) whether an internal oversight board has been 
                established in the Department of Homeland Security to 
                monitor the next generation passenger prescreening 
                system;
                    [(E) whether sufficient operational safeguards have 
                been established to prevent the opportunities for abuse 
                of the system;
                    [(F) whether substantial security measures are in 
                place to protect the passenger prescreening database 
                from unauthorized access;
                    [(G) whether policies have been adopted for the 
                effective oversight of the use and operation of the 
                system;
                    [(H) whether specific privacy concerns still exist 
                with the system; and
                    [(I) whether appropriate life cycle cost estimates 
                have been developed, and a benefit and cost analysis 
                has been performed, for the system.

[SEC. 2174. DEPLOYMENT AND USE OF EXPLOSIVE DETECTION EQUIPMENT AT 
              AIRPORT SCREENING CHECKPOINTS.

    [(a) Nonmetallic Weapons and Explosives.--In order to improve 
security, the Assistant Secretary of Homeland Security (Transportation 
Security Administration) shall give priority to developing, testing, 
improving, and deploying technology at screening checkpoints at 
airports that will detect nonmetallic weapons and explosives on the 
person of individuals, in their clothing, or in their carry-on baggage 
or personal property and shall ensure that the equipment alone, or as 
part of an integrated system, can detect under realistic operating 
conditions the types of nonmetallic weapons and explosives that 
terrorists would likely try to smuggle aboard an air carrier aircraft.
    [(b) Strategic Plan for Deployment and Use of Explosive Detection 
Equipment at Airport Screening Checkpoints.--
            [(1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Assistant Secretary shall transmit 
        to the appropriate congressional committees a strategic plan to 
        promote the optimal utilization and deployment of explosive 
        detection systems at airports to screen individuals and their 
        carry-on baggage or personal property, including walk-through 
        explosive detection portals, document scanners, shoe scanners, 
        and any other explosive detection equipment for use at a 
        screening checkpoint. The plan may be transmitted in a 
        classified format.
            [(2) Contents.--The strategic plan shall include 
        descriptions of the operational applications of explosive 
        detection equipment at airport screening checkpoints, a 
        deployment schedule and quantities of equipment needed to 
        implement the plan, and funding needs for implementation of the 
        plan, including a financing plan that provides for leveraging 
        non-Federal funding.

[SEC. 2175. PILOT PROGRAM TO EVALUATE USE OF BLAST-RESISTANT CARGO AND 
              BAGGAGE CONTAINERS.

    [(a) In General.--Beginning not later than 180 days after the date 
of enactment of this Act, the Assistant Secretary of Homeland Security 
(Transportation Security Administration) shall carry out a pilot 
program to evaluate the use of blast-resistant containers for cargo and 
baggage on passenger aircraft to minimize the potential effects of 
detonation of an explosive device.
    [(b) Incentives for Participation in Pilot Program.--
            [(1) In general.--As part of the pilot program, the 
        Assistant Secretary shall provide incentives to air carriers to 
        volunteer to test the use of blast-resistant containers for 
        cargo and baggage on passenger aircraft.
            [(2) Applications.--To volunteer to participate in the 
        incentive program, an air carrier shall submit to the Assistant 
        Secretary an application that is in such form and contains such 
        information as the Assistant Secretary requires.
            [(3) Types of assistance.--Assistance provided by the 
        Assistant Secretary to air carriers that volunteer to 
        participate in the pilot program shall include the use of 
        blast-resistant containers and financial assistance to cover 
        increased costs to the carriers associated with the use and 
        maintenance of the containers, including increased fuel costs.
    [(c) Report.--Not later than one year after the date of enactment 
of this Act, the Assistant Secretary shall submit to appropriate 
congressional committees a report on the results of the pilot program.
    [(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,000,000. Such sums shall 
remain available until expended.

[SEC. 2176. AIR CARGO SCREENING TECHNOLOGY.

    [The Transportation Security Administration shall develop 
technology to better identify, track, and screen air cargo.

[SEC. 2177. AIRPORT CHECKPOINT SCREENING EXPLOSIVE DETECTION.

    [Section 44940 of title 49, United States Code, is amended by 
adding at the end the following:
    [``(i) Checkpoint Screening Security Fund.--
            [``(1) Establishment.--There is established in the 
        Department of Homeland Security a fund to be known as the 
        `Checkpoint Screening Security Fund'.
            [``(2) Deposits.--In each of fiscal years 2005 and 2006, 
        after amounts are made available under section 44923(h), the 
        next $30,000,000 derived from fees received under subsection 
        (a)(1) shall be available to be deposited in the Fund.
            [``(3) Fees.--The Secretary of Homeland Security shall 
        impose the fee authorized by subsection (a)(1) so as to collect 
        at least $30,000,000 in each of fiscal years 2005 and 2006 for 
        deposit into the Fund.
            [``(4) Availability of amounts.--Amounts in the Fund shall 
        be available for the purchase, deployment, and installation of 
        equipment to improve the ability of security screening 
        personnel at screening checkpoints to detect explosives.''.

[SEC. 2178. NEXT GENERATION SECURITY CHECKPOINT.

    [(a) Pilot Program.--The Transportation Security Administration 
shall develop, not later than 120 days after the date of enactment of 
this Act, and conduct a pilot program to test, integrate, and deploy 
next generation security checkpoint screening technology at not less 
than 5 airports in the United States.
    [(b) Human Factor Studies.-- The Administration shall conduct human 
factors studies to improve screener performance as part of the pilot 
program under subsection (a).

[SEC. 2179. PENALTY FOR FAILURE TO SECURE COCKPIT DOOR.

    [(a) Civil Penalty.--Section 46301(a) of title 49, United States 
Code, is amended by adding at the end the following:
            [``(6) Penalty for failure to secure flight deck door.--Any 
        person holding a part 119 certificate under part of title 14, 
        Code of Federal Regulations, is liable to the Government for a 
        civil penalty of not more than $25,000 for each violation, by 
        the pilot in command of an aircraft owned or operated by such 
        person, of any Federal regulation that requires that the flight 
        deck door be closed and locked when the aircraft is being 
        operated.''.
    [(b) Technical Corrections.--
            [(1) Compromise and setoff for false information.--Section 
        46302(b) of such title is amended by striking ``Secretary of 
        Transportation'' and inserting ``Secretary of the Department of 
        Homeland Security and, for a violation relating to section 
        46504, the Secretary of Transportation,''.
            [(2) Carrying a weapon.--Section 46303 of such title is 
        amended--
                    [(A) in subsection (b) by striking ``Secretary of 
                Transportation'' and inserting ``Secretary of Homeland 
                Security''; and
                    [(B) in subsection (c)(2) by striking ``Under 
                Secretary of Transportation for Security'' and 
                inserting ``Secretary of Homeland Security''.
            [(3) Administrative imposition of penalties.--Section 
        46301(d) of such title is amended--
                    [(A) in the first sentence of paragraph (2) by 
                striking ``46302, 46303,'' and inserting ``46302 (for a 
                violation relating to section 46504),''; and
                    [(B) in the second sentence of paragraph (2)--
                            [(i) by striking ``Under Secretary of 
                        Transportation for Security'' and inserting 
                        ``Secretary of Homeland Security''; and
                            [(ii) by striking ``44909)'' and inserting 
                        ``44909), 46302 (except for a violation 
                        relating to section 46504), 46303,'';
                    [(C) in each of paragraphs (2), (3), and (4) by 
                striking ``Under Secretary or'' and inserting 
                ``Secretary of Homeland Security''; and
                    [(D) in paragraph (4)(A) by moving clauses (i), 
                (ii), and (iii) 2 ems to the left.

[SEC. 2180. FEDERAL AIR MARSHAL ANONYMITY.

    [The Director of the Federal Air Marshal Service of the Department 
of Homeland Security shall continue to develop operational initiatives 
to protect the anonymity of Federal air marshals.

[SEC. 2181. FEDERAL LAW ENFORCEMENT COUNTERTERRORISM TRAINING.

    [(a) The Assistant Secretary for Immigration and Customs 
Enforcement and the Director of Federal Air Marshal Service of the 
Department of Homeland Security, in coordination with the Assistant 
Secretary of Homeland Security (Transportation Security 
Administration), shall make available appropriate in-flight 
counterterrorism and weapons handling procedures and tactics training 
to Federal law enforcement officers who fly while on duty.
    [(b) The Assistant Secretary for Immigration and Customs 
Enforcement and the Director of Federal Air Marshal Service of the 
Department of Homeland Security, in coordination with the Assistant 
Secretary of Homeland Security (Transportation Security 
Administration), shall ensure that Transportation Security 
Administration screeners and Federal Air Marshals receive training in 
identifying fraudulent identification documents, including fraudulent 
or expired Visas and Passports. Such training shall also be made 
available to other Federal law enforcement agencies and local law 
enforcement agencies located in border states.

[SEC. 2182. FEDERAL FLIGHT DECK OFFICER WEAPON CARRIAGE PILOT PROGRAM.

    [(a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Assistant Secretary of Homeland Security 
(Transportation Security Administration), with the concurrence of the 
Attorney General, shall implement a pilot program to allow pilots 
participating in the Federal flight deck officer program to transport 
their firearms on their persons. The Assistant Secretary, in 
consultation with the Attorney General, may prescribe any training, 
equipment, or procedures including procedures for reporting of missing, 
lost or stolen firearms, that the Assistant Secretary determines 
necessary to ensure safety and maximize weapon retention.
    [(b) Review.--Not later than 1 year after the date of initiation of 
the pilot program, the Assistant Secretary shall conduct a review of 
the safety record of the pilot program and transmit a report on the 
results of the review to the appropriate congressional committees.
    [(c) Option.--If the Assistant Secretary as part of the review 
under subsection (b) determines that the safety level obtained under 
the pilot program is comparable to the safety level determined under 
existing methods of pilots carrying firearms on aircraft, the Assistant 
Secretary shall allow all pilots participating in the Federal flight 
deck officer program the option of carrying their firearm on their 
person subject to such requirements as the Assistant Secretary 
determines appropriate.

[SEC. 2183. REGISTERED TRAVELER PROGRAM.

    [The Transportation Security Administration shall expedite 
implementation of the registered traveler program.

[SEC. 2184. WIRELESS COMMUNICATION.

    [(a) Study.--The Transportation Security Administration, in 
consultation with the Federal Aviation Administration, shall conduct a 
study to determine the viability of providing devices or methods, 
including wireless methods, to enable a flight crew to discreetly 
notify the pilot in the case of a security breach or safety issue 
occurring in the cabin.
    [(b) Matters to Be Considered.--In conducting the study, the 
Transportation Security Administration and the Federal Aviation 
Administration shall consider technology that is readily available and 
can be quickly integrated and customized for use aboard aircraft for 
flight crew communication.
    [(c) Report.--Not later than 180 days after the date of enactment 
of this Act, the Transportation Security Administration shall submit to 
the appropriate congressional committees a report on the results of the 
study.

[SEC. 2185. SECONDARY FLIGHT DECK BARRIERS.

    [Not later than 6 months after the date of enactment of this Act, 
the Assistant Secretary of Homeland Security (Transportation Security 
Administration) shall transmit to the appropriate congressional 
committees a report on the costs and benefits associated with the use 
of secondary flight deck barriers and whether the use of such barriers 
should be mandated for all air carriers. The Assistant Secretary may 
transmit the report in a classified format.

[SEC. 2186. EXTENSION.

    [Section 48301(a) of title 49, United States Code, is amended by 
striking ``and 2005'' and inserting ``2005, and 2006''.

[SEC. 2187. PERIMETER SECURITY.

    [(a) Report.--Not later than 180 days after the date of enactment 
of this Act, the Assistant Secretary of Homeland Security 
(Transportation Security Administration), in consultation with airport 
operators and law enforcement authorities, shall develop and submit to 
the appropriate congressional committee a report on airport perimeter 
security. The report may be submitted in a classified format.
    [(b) Contents.--The report shall include--
            [(1) an examination of the feasibility of access control 
        technologies and procedures, including the use of biometrics 
        and other methods of positively identifying individuals prior 
        to entry into secure areas of airports, and provide best 
        practices for enhanced perimeter access control techniques; and
            [(2) an assessment of the feasibility of physically 
        screening all individuals prior to entry into secure areas of 
        an airport and additional methods for strengthening the 
        background vetting process for all individuals credentialed to 
        gain access to secure areas of airports.

[SEC. 2188. EXTREMELY HAZARDOUS MATERIALS TRANSPORTATION SECURITY.

    [(a) Rulemaking.--
            [(1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Homeland Security, in 
        consultation with the Attorney General and the heads of other 
        appropriate Federal, State, and local government entities, 
        security experts, representatives of the hazardous materials 
        shipping industry and labor unions representing persons who 
        work in the hazardous materials shipping industry, and other 
        interested persons, shall issue, after notice and opportunity 
        for public comment, regulations concerning the shipping of 
        extremely hazardous materials.
            [(2) Purposes of regulations.--The regulations shall be 
        consistent, to the extent the Secretary determines appropriate, 
        with and not duplicative of other Federal regulations and 
        international agreements relating to the shipping of extremely 
        hazardous materials and shall require--
                    [(A) physical security measures for such shipments, 
                such as the use of passive secondary containment of 
                tanker valves, additional security force personnel, and 
                surveillance technologies and barriers;
                    [(B) concerned Federal, State, and local law 
                enforcement authorities (including, if applicable, 
                transit, railroad, or port authority police agencies) 
                to be informed before an extremely hazardous material 
                is transported within, through, or near an area of 
                concern;
                    [(C) coordination with Federal, State, and local 
                law enforcement authorities to create response plans 
                for a terrorist attack on a shipment of extremely 
                hazardous materials;
                    [(D) the use of currently available technologies 
                and systems to ensure effective and immediate 
                communication between transporters of extremely 
                hazardous materials, law enforcement authorities and 
                first responders;
                    [(E) comprehensive and appropriate training in the 
                area of extremely hazardous materials transportation 
                security for all individuals who transport, load, 
                unload, or are otherwise involved in the shipping of 
                extremely hazardous materials or who would respond to 
                an accident or incident involving a shipment of 
                extremely hazardous material or would have to repair 
                transportation equipment and facilities in the event of 
                such an accident or incident; and
                    [(F) for the transportation of extremely hazardous 
                materials through or near an area of concern, the 
                Secretary to determine whether or not the 
                transportation could be made by one or more alternate 
                routes at lower security risk and, if the Secretary 
                determines the transportation could be made by an 
                alternate route, the use of such alternate route, 
                except when the origination or destination of the 
                shipment is located within the area of concern.
    [(b) Judicial Relief.--A person (other than an individual) who 
transports, loads, unloads, or is otherwise involved in the shipping of 
hazardous materials and violates or fails to comply with a regulation 
issued by the Secretary under subsection (a) may be subject, in a civil 
action brought in United States district court, for each shipment with 
respect to which the violation occurs--
            [(1) to an order for injunctive relief; or
            [(2) to a civil penalty of not more than $100,000.
    [(c) Administrative Penalties.--
            [(1) Penalty orders.--The Secretary may issue an order 
        imposing an administrative penalty of not more than $1,000,000 
        for failure by a person (other than an individual) who 
        transports, loads, unloads, or is otherwise involved in the 
        shipping of hazardous materials to comply with a regulation 
        issued by the Secretary under subsection (a).
            [(2) Notice and hearing.--Before issuing an order described 
        in paragraph (1), the Secretary shall provide to the person 
        against whom the penalty is to be assessed--
                    [(A) written notice of the proposed order; and
                    [(B) the opportunity to request, not later than 30 
                days after the date on which the person receives the 
                notice, a hearing on the proposed order.
            [(3) Procedures.--The Secretary may issue regulations 
        establishing procedures for administrative hearings and 
        appropriate review of penalties issued under this subsection, 
        including necessary deadlines.
    [(d) Whistleblower Protection.--
            [(1) In general.--No person involved in the shipping of 
        extremely hazardous materials may be discharged, demoted, 
        suspended, threatened, harassed, or in any other manner 
        discriminated against because of any lawful act done by the 
        person--
                    [(A) to provide information, cause information to 
                be provided, or otherwise assist in an investigation 
                regarding any conduct which the person reasonably 
                believes constitutes a violation of any law, rule or 
                regulation related to the security of shipments of 
                extremely hazardous materials, or any other threat to 
                the security of shipments of extremely hazardous 
                materials, when the information or assistance is 
                provided to or the investigation is conducted by--
                            [(i) a Federal regulatory or law 
                        enforcement agency;
                            [(ii) any Member of Congress or any 
                        committee of Congress; or
                            [(iii) a person with supervisory authority 
                        over the person (or such other person who has 
                        the authority to investigate, discover, or 
                        terminate misconduct); or
                    [(B) to file, cause to be filed, testify, 
                participate in, or otherwise assist in a proceeding or 
                action filed or about to be filed relating to a 
                violation of any law, rule or regulation related to the 
                security of shipments of extremely hazardous materials 
                or any other threat to the security of shipments of 
                extremely hazardous materials.
                    [(C) to refuse to violate or assist in the 
                violation of any law, rule, or regulation related to 
                the security of shipments of extremely hazardous 
                materials.
            [(2) Enforcement action.--
                    [(A) In general.--A person who alleges discharge or 
                other discrimination by any person in violation of 
                paragraph (1) may seek relief under paragraph (3), by--
                            [(i) filing a complaint with the Secretary 
                        of Labor; or
                            [(ii) if the Secretary has not issued a 
                        final decision within 180 days of the filing of 
                        the complaint and there is no showing that such 
                        delay is due to the bad faith of the claimant, 
                        bringing an action at law or equity for de novo 
                        review in the appropriate district court of the 
                        United States, which shall have jurisdiction 
                        over such an action without regard to the 
                        amount in controversy.
                    [(B) Procedure.--
                            [(i) In general.-- An action under 
                        subparagraph (A)(i) shall be governed under the 
                        rules and procedures set forth in section 
                        42121(b) of title 49, United States Code.
                            [(ii) Exception.--Notification made under 
                        section 42121(b)(1) of title 49, United States 
                        Code, shall be made to the person named in the 
                        complaint and to the person's employer.
                            [(iii) Burdens of proof.--An action brought 
                        under subparagraph (A)(ii) shall be governed by 
                        the legal burdens of proof set forth in section 
                        42121(b) of title 49, United States Code.
                            [(iv) Statute of limitations.--An action 
                        under subparagraph (A) shall be commenced not 
                        later than 90 days after the date on which the 
                        violation occurs.
            [(3) Remedies.--
                    [(A) In general.--A person prevailing in any action 
                under paragraph (2)(A) shall be entitled to all relief 
                necessary to make the person whole.
                    [(B) Compensatory damages.--Relief for any action 
                under subparagraph (A) shall include--
                            [(i) reinstatement with the same seniority 
                        status that the person would have had, but for 
                        the discrimination;
                            [(ii) the amount of any back pay, with 
                        interest; and
                            [(iii) compensation for any special damages 
                        sustained as a result of the discrimination, 
                        including litigation costs, expert witness 
                        fees, and reasonable attorney fees.
            [(4) Rights retained by person.--Nothing in this subsection 
        shall be deemed to diminish the rights, privileges, or remedies 
        of any person under any Federal or State law, or under any 
        collective bargaining agreement.
    [(e) Definitions.--In this section, the following definitions 
apply:
            [(1) Extremely hazardous material.--The term ``extremely 
        hazardous material'' means--
                    [(A) a material that is toxic by inhalation;
                    [(B) a material that is extremely flammable;
                    [(C) a material that is highly explosive; and
                    [(D) any other material designated by the Secretary 
                to be extremely hazardous.
            [(2) Area of concern.--The term ``area of concern'' means 
        an area that the Secretary determines could pose a particular 
        interest to terrorists.

[SEC. 2189. DEFINITIONS.

    [In this title, the following definitions apply:
            [(1) Appropriate congressional committee.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Transportation and Infrastructure and the Committee on the 
        Judiciary of the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate.
            [(2) Air carrier.--The term ``air carrier'' has the meaning 
        such term has under section 40102 of title 49, United States 
        Code.
            [(3) Secure area of an airport.--The term ``secure area of 
        an airport'' means the sterile area and the Secure 
        Identification Display Area of an airport (as such terms are 
        defined in section 1540.5 of title 49, Code of Federal 
        Regulations, or any successor regulation to such section).

                       [Subtitle H--Other Matters

[SEC. 2191. GRAND JURY INFORMATION SHARING.

    [(a) Rule Amendments.--Rule 6(e) of the Federal Rules of Criminal 
Procedure is amended--
            [(1) in paragraph (3)--
                    [(A) in subparagraph (A)(ii), by striking ``or 
                state subdivision or of an Indian tribe'' and inserting 
                ``, state subdivision, Indian tribe, or foreign 
                government'';
                    [(B) in subparagraph (D)--
                            [(i) by inserting after the first sentence 
                        the following: ``An attorney for the government 
                        may also disclose any grand-jury matter 
                        involving a threat of actual or potential 
                        attack or other grave hostile acts of a foreign 
                        power or an agent of a foreign power, domestic 
                        or international sabotage, domestic or 
                        international terrorism, or clandestine 
                        intelligence gathering activities by an 
                        intelligence service or network of a foreign 
                        power or by an agent of a foreign power, within 
                        the United States or elsewhere, to any 
                        appropriate Federal, State, state subdivision, 
                        Indian tribal, or foreign government official 
                        for the purpose of preventing or responding to 
                        such a threat.''; and
                            [(ii) in clause (i)--
                                    [(I) by striking ``federal''; and
                                    [(II) by adding at the end the 
                                following: ``Any State, state 
                                subdivision, Indian tribal, or foreign 
                                government official who receives 
                                information under Rule 6(e)(3)(D) may 
                                use the information only consistent 
                                with such guidelines as the Attorney 
                                General and the National Intelligence 
                                Director shall jointly issue.''; and
                    [(C) in subparagraph (E)--
                            [(i) by redesignating clauses (iii) and 
                        (iv) as clauses (iv) and (v), respectively;
                            [(ii) by inserting after clause (ii) the 
                        following:
                            [``(iii) at the request of the government, 
                        when sought by a foreign court or prosecutor 
                        for use in an official criminal 
                        investigation;''; and
                            [(iii) in clause (iv), as redesignated--
                                    [(I) by striking ``state or Indian 
                                tribal'' and inserting ``State, Indian 
                                tribal, or foreign''; and
                                    [(II) by striking ``or Indian 
                                tribal official'' and inserting 
                                ``Indian tribal, or foreign government 
                                official''; and
            [(2) in paragraph (7), by inserting ``, or of guidelines 
        jointly issued by the Attorney General and Director of Central 
        Intelligence pursuant to Rule 6,'' after ``Rule 6''.
    [(b) Conforming Amendment.--Section 203(c) of Public Law 107-56 (18 
U.S.C. 2517 note) is amended by striking ``Rule 6(e)(3)(C)(i)(V) and 
(VI)'' and inserting ``Rule 6(e)(3)(D)''.

[SEC. 2192. INTEROPERABLE LAW ENFORCEMENT AND INTELLIGENCE DATA SYSTEM.

    [(a) Findings.--The Congress finds as follows:
            [(1) The interoperable electronic data system know as the 
        ``Chimera system'', and required to be developed and 
        implemented by section 202(a)(2) of the Enhanced Border 
        Security and Visa Entry Reform Act of 2002 (8 U.S.C. 
        1722(a)(2)), has not in any way been implemented.
            [(2) Little progress has been made since the enactment of 
        such Act with regard to establishing a process to connect 
        existing trusted systems operated independently by the 
        respective intelligence agencies.
            [(3) It is advisable, therefore, to assign such 
        responsibility to the National Intelligence Director.
            [(4) The National Intelligence Director should, pursuant to 
        the amendments made by subsection (c), begin systems planning 
        immediately upon assuming office to deliver an interim system 
        not later than 1 year after the date of the enactment of this 
        Act, and to deliver the fully functional Chimera system not 
        later than September 11, 2007.
            [(5) Both the interim system, and the fully functional 
        Chimera system, should be designed so that intelligence 
        officers, Federal law enforcement agencies (as defined in 
        section 2 of such Act (8 U.S.C. 1701)), operational counter-
        terror support center personnel, consular officers, and 
        Department of Homeland Security enforcement officers have 
        access to them.
    [(b) Purposes.--The purposes of this section are as follows:
            [(1) To provide the National Intelligence Director with the 
        necessary authority and resources to establish both an interim 
        data system and, subsequently, a fully functional Chimera 
        system, to collect and share intelligence and operational 
        information with the intelligence community (as defined in 
        section 3(4) of the National Security Act of 1947 (50 U.S.C. 
        401a(4)).
            [(2) To require the National Intelligence Director to 
        establish a state-of-the-art Chimera system with both biometric 
        identification and linguistic capabilities satisfying the best 
        technology standards.
            [(3) To ensure that the National Intelligence Center will 
        have a fully functional capability, not later than September 
        11, 2007, for interoperable data and intelligence exchange with 
        the agencies of the intelligence community (as so defined).
    [(c) Amendments.--
            [(1) In general.--Title II of the Enhanced Border Security 
        and Visa Entry Reform Act of 2002 (8 U.S.C. 1721 et seq.) is 
        amended--
                    [(A) in section 202(a)--
                            [(i) by amending paragraphs (1) and (2) to 
                        read as follows:
            [``(1) Interim interoperable intelligence data exchange 
        system.--Not later than 1 year after assuming office, the 
        National Intelligence Director shall establish an interim 
        interoperable intelligence data exchange system that will 
        connect the data systems operated independently by the entities 
        in the intelligence community and by the National 
        counterterrorism Center, so as to permit automated data 
        exchange among all of these entities. Immediately upon assuming 
        office, the National Intelligence Director shall begin the 
        plans necessary to establish such interim system.
            [``(2) Chimera system.--Not later than September 11, 2007, 
        the National Intelligence Director shall establish a fully 
        functional interoperable law enforcement and intelligence 
        electronic data system within the National counterterrorism 
        Center to provide immediate access to information in databases 
        of Federal law enforcement agencies and the intelligence 
        community that is necessary to identify terrorists, and 
        organizations and individuals that support terrorism. The 
        system established under this paragraph shall referred to as 
        the `Chimera system'. '';
                            [(ii) in paragraph (3)--
                                    [(I) by striking ``President'' and 
                                inserting ``National Intelligence 
                                Director''; and
                                    [(II) by striking ``the data 
                                system'' and inserting ``the interim 
                                system described in paragraph (1) and 
                                the Chimera system described in 
                                paragraph (2)'';
                            [(iii) in paragraph (4)(A), by striking 
                        ``The data system'' and all that follows 
                        through ``(2),'' and inserting ``The interim 
                        system described in paragraph (1) and the 
                        Chimera system described in paragraph (2)'';
                            [(iv) in paragraph (5)--
                                    [(I) in the matter preceding 
                                subparagraph (A), by striking ``data 
                                system under this subsection'' and 
                                inserting ``Chimera system described in 
                                paragraph (2)'';
                                    [(II) in subparagraph (B), by 
                                striking ``and'' at the end;
                                    [(III) in subparagraph (C), by 
                                striking the period at the end and 
                                inserting ``; and''; and
                                    [(IV) by adding at the end the 
                                following:
                    [``(D) to any Federal law enforcement or 
                intelligence officer authorized to assist in the 
                investigation, identification, or prosecution of 
                terrorists, alleged terrorists, individuals supporting 
                terrorist activities, and individuals alleged to 
                support terrorist activities. ''; and
                            [(v) in paragraph (6)--
                                    [(I) by striking ``President'' and 
                                inserting ``National Intelligence 
                                Director'';
                                    [(II) by striking ``the data 
                                system'' and all that follows through 
                                ``(2),'' and inserting ``the interim 
                                system described in paragraph (1) and 
                                the Chimera system described in 
                                paragraph (2)'';
                    [(B) in section 202(b)--
                            [(i) in paragraph (1), by striking ``The 
                        interoperable'' and all that follows through 
                        ``subsection (a)'' and inserting ``the Chimera 
                        system described in subsection (a)(2)'';
                            [(ii) in paragraph (2), by striking 
                        ``interoperable electronic database'' and 
                        inserting ``Chimera system described in 
                        subsection (a)(2)''; and
                            [(iii) by amending paragraph (4) to read as 
                        follows:
            [``(4) Interim reports.--Not later than 6 months after 
        assuming office, the National Intelligence Director shall 
        submit a report to the appropriate committees of Congress on 
        the progress in implementing each requirement of this 
        section.'';
                    [(C) in section 204--
                            [(i) by striking ``Attorney General'' each 
                        place such term appears and inserting 
                        ``National Intelligence Director'';
                            [(ii) in subsection (d)(1), by striking 
                        ``Attorney General's'' and inserting ``National 
                        Intelligence Director's''; and
                    [(D) by striking section 203 and redesignating 
                section 204 as section 203.
            [(2) Clerical amendment.--The table of contents for the 
        Enhanced Border Security and Visa Entry Reform Act of 2002 (8 
        U.S.C. 1701 et seq.) is amended--
                    [(A) by striking the item relating to section 203; 
                and
                    [(B) by redesignating the item relating to section 
                204 as relating to section 203.

[SEC. 2193. IMPROVEMENT OF INTELLIGENCE CAPABILITIES OF THE FEDERAL 
              BUREAU OF INVESTIGATION.

    [(a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States and to meet the 
intelligence needs of the United States, Congress makes the following 
findings:
            [(1) The Federal Bureau of Investigation has made 
        significant progress in improving its intelligence 
        capabilities.
            [(2) The Federal Bureau of Investigation must further 
        enhance and fully institutionalize its ability to prevent, 
        preempt, and disrupt terrorist threats to our homeland, our 
        people, our allies, and our interests.
            [(3) The Federal Bureau of Investigation must collect, 
        process, share, and disseminate, to the greatest extent 
        permitted by applicable law, to the President, the Vice 
        President, and other officials in the Executive Branch, all 
        terrorism information and other information necessary to 
        safeguard our people and advance our national and homeland 
        security interests.
            [(4) The Federal Bureau of Investigation must move towards 
        full and seamless coordination and cooperation with all other 
        elements of the Intelligence Community, including full 
        participation in, and support to, the National counterterrorism 
        Center.
            [(5) The Federal Bureau of Investigation must strengthen 
        its pivotal role in coordination and cooperation with Federal, 
        State, tribal, and local law enforcement agencies to ensure the 
        necessary sharing of information for counterterrorism and 
        criminal law enforcement purposes.
            [(6) The Federal Bureau of Investigation must perform its 
        vital intelligence functions in a manner consistent with both 
        with national intelligence priorities and respect for privacy 
        and other civil liberties under the Constitution and laws of 
        the United States.
    [(b) Improvement of Intelligence Capabilities.--The Director of the 
Federal Bureau of Investigation shall establish a comprehensive 
intelligence program for--
            [(1) intelligence analysis, including recruitment and 
        hiring of analysts, analyst training, priorities and status for 
        analysis, and analysis performance measures;
            [(2) intelligence production, including product standards, 
        production priorities, information sharing and dissemination, 
        and customer satisfaction measures;
            [(3) production of intelligence that is responsive to 
        national intelligence requirements and priorities, including 
        measures of the degree to which each FBI headquarters and field 
        component is collecting and providing such intelligence;
            [(4) intelligence sources, including source validation, new 
        source development, and performance measures;
            [(5) field intelligence operations, including staffing and 
        infrastructure, management processes, priorities, and 
        performance measures;
            [(6) full and seamless coordination and cooperation with 
        the other components of the Intelligence Community, consistent 
        with their responsibilities; and
            [(7) sharing of FBI intelligence and information across 
        Federal, state, and local governments, with the private sector, 
        and with foreign partners as provided by law or by guidelines 
        of the Attorney General.
    [(c) Intelligence Directorate.--The Director of the Federal Bureau 
of Investigation shall establish an Intelligence Directorate within the 
FBI. The Intelligence Directorate shall have the authority to manage 
and direct the intelligence operations of all FBI headquarters and 
field components. The Intelligence Directorate shall have 
responsibility for all components and functions of the FBI necessary 
for--
            [(1) oversight of FBI field intelligence operations;
            [(2) FBI human source development and management;
            [(3) FBI collection against nationally-determined 
        intelligence requirements;
            [(4) language services;
            [(5) strategic analysis;
            [(6) intelligence program and budget management; and
            [(7) the intelligence workforce.
    [(d) National Security Workforce.--The Director of the Federal 
Bureau of Investigation shall establish a specialized, integrated 
intelligence cadre composed of Special Agents, analysts, linguists, and 
surveillance specialists in a manner which creates and sustains within 
the FBI a workforce with substantial expertise in, and commitment to, 
the intelligence mission of the FBI. The Director shall--
            [(1) ensure that these FBI employees may make their career, 
        including promotion to the most senior positions in the FBI, 
        within this career track;
            [(2) establish intelligence cadre requirements for--
                    [(A) training;
                    [(B) career development and certification;
                    [(C) recruitment, hiring, and selection;
                    [(D) integrating field intelligence teams; and
                    [(E) senior level field management;
            [(3) establish intelligence officer certification 
        requirements, including requirements for training courses and 
        assignments to other intelligence, national security, or 
        homeland security components of the Executive branch, in order 
        to advance to senior operational management positions in the 
        FBI;
            [(4) ensure that the FBI's recruitment and training program 
        enhances its ability to attract individuals with educational 
        and professional backgrounds in intelligence, international 
        relations, language, technology, and other skills relevant to 
        the intelligence mission of the FBI;
            [(5) ensure that all Special Agents and analysts employed 
        by the FBI after the date of the enactment of this Act shall 
        receive basic training in both criminal justice matters and 
        intelligence matters;
            [(6) ensure that all Special Agents employed by the FBI 
        after the date of the enactment of this Act, to the maximum 
        extent practicable, be given an opportunity to undergo, during 
        their early service with the FBI, meaningful assignments in 
        criminal justice matters and in intelligence matters;
            [(7) ensure that, to the maximum extent practical, Special 
        Agents who specialize in intelligence are afforded the 
        opportunity to work on intelligence matters over the remainder 
        of their career with the FBI; and
            [(8) ensure that, to the maximum extent practical, analysts 
        are afforded FBI training and career opportunities commensurate 
        with the training and career opportunities afforded analysts in 
        other elements of the intelligence community.
    [(e) Field Office Matters.--The Director of the Federal Bureau of 
Investigation shall take appropriate actions to ensure the integration 
of analysis, Special Agents, linguists, and surveillance personnel in 
FBI field intelligence components and to provide effective leadership 
and infrastructure to support FBI field intelligence components. The 
Director shall--
            [(1) ensure that each FBI field office has an official at 
        the level of Assistant Special Agent in Charge or higher with 
        responsibility for the FBI field intelligence component; and
            [(2) to the extent practicable, provide for such expansion 
        of special compartmented information facilities in FBI field 
        offices as is necessary to ensure the discharge by the field 
        intelligence components of the national security and criminal 
        intelligence mission of the FBI.
    [(f) Budget Matters.--The Director of the Federal Bureau of 
Investigation shall, in consultation with the Director of the Office of 
Management and Budget, modify the budget structure of the FBI in order 
to organize the budget according to its four main programs as follows:
            [(1) Intelligence.
            [(2) counterterrorism and counterintelligence.
            [(3) Criminal enterprise/Federal crimes.
            [(4) Criminal justice services.
    [(g) Reports.--
            [(1)(A) Not later than 180 days after the date of the 
        enactment of this Act, and every twelve months thereafter, the 
        Director of the Federal Bureau of Investigation shall submit to 
        Congress a report on the progress made as of the date of such 
        report in carrying out the requirements of this section.
            [(B) The Director shall include in the first report 
        required by subparagraph (A) an estimate of the resources 
        required to complete the expansion of special compartmented 
        information facilities to carry out the intelligence mission of 
        FBI field intelligence components.
            [(2) In each annual report required by paragraph (1)(A) the 
        director shall include--
                    [(A) a report on the progress made by each FBI 
                field office during the period covered by such review 
                in addressing FBI and national intelligence priorities;
                    [(B) a report assessing the qualifications, status, 
                and roles of analysts at FBI headquarters and in FBI 
                field offices; and
                    [(C) a report on the progress of the FBI in 
                implementing information-sharing principles.
            [(3) A report required by this subsection shall be 
        submitted--
                    [(A) to each committee of Congress that has 
                jurisdiction over the subject matter of such report; 
                and
                    [(B) in unclassified form, but may include a 
                classified annex.

[SEC. 2194. NUCLEAR FACILITY THREATS.

    [(a) Study.--The President, in consultation with the Nuclear 
Regulatory Commission and other appropriate Federal, State, and local 
agencies and private entities, shall conduct a study to identify the 
types of threats that pose an appreciable risk to the security of the 
various classes of facilities licensed by the Nuclear Regulatory 
Commission under the Atomic Energy Act of 1954. Such study shall take 
into account, but not be limited to--
            [(1) the events of September 11, 2001;
            [(2) an assessment of physical, cyber, biochemical, and 
        other terrorist threats;
            [(3) the potential for attack on facilities by multiple 
        coordinated teams of a large number of individuals;
            [(4) the potential for assistance in an attack from several 
        persons employed at the facility;
            [(5) the potential for suicide attacks;
            [(6) the potential for water-based and air-based threats;
            [(7) the potential use of explosive devices of considerable 
        size and other modern weaponry;
            [(8) the potential for attacks by persons with a 
        sophisticated knowledge of facility operations;
            [(9) the potential for fires, especially fires of long 
        duration; and
            [(10) the potential for attacks on spent fuel shipments by 
        multiple coordinated teams of a large number of individuals.
    [(b) Summary and Classification Report.--Not later than 180 days 
after the date of the enactment of this Act, the President shall 
transmit to the Congress and the Nuclear Regulatory Commission a 
report--
            [(1) summarizing the types of threats identified under 
        subsection (a); and
            [(2) classifying each type of threat identified under 
        subsection (a), in accordance with existing laws and 
        regulations, as either--
                    [(A) involving attacks and destructive acts, 
                including sabotage, directed against the facility by an 
                enemy of the United States, whether a foreign 
                government or other person, or otherwise falling under 
                the responsibilities of the Federal Government; or
                    [(B) involving the type of risks that Nuclear 
                Regulatory Commission licensees should be responsible 
                for guarding against.
    [(c) Federal Action Report.--Not later than 90 days after the date 
on which a report is transmitted under subsection (b), the President 
shall transmit to the Congress a report on actions taken, or to be 
taken, to address the types of threats identified under subsection 
(b)(2)(A). Such report may include a classified annex as appropriate.
    [(d) Regulations.--Not later than 270 days after the date on which 
a report is transmitted under subsection (b), the Nuclear Regulatory 
Commission shall issue regulations, including changes to the design 
basis threat, to ensure that licensees address the threats identified 
under subsection (b)(2)(B).
    [(e) Physical Security Program.--The Nuclear Regulatory Commission 
shall establish an operational safeguards response evaluation program 
that ensures that the physical protection capability and operational 
safeguards response for sensitive nuclear facilities, as determined by 
the Commission consistent with the protection of public health and the 
common defense and security, shall be tested periodically through 
Commission designed, observed, and evaluated force-on-force exercises 
to determine whether the ability to defeat the design basis threat is 
being maintained. The exercises shall be conducted by a mock terrorist 
team consisting of Commission personnel with advanced knowledge of 
special weapons and tactics comparable to special operations forces of 
the Armed Forces. For purposes of this subsection, the term ``sensitive 
nuclear facilities'' includes at a minimum commercial nuclear power 
plants, including associated spent fuel storage facilities, spent fuel 
storage pools and dry cask storage at closed reactors, independent 
spent fuel storage facilities and geologic repository operations areas, 
category I fuel cycle facilities, and gaseous diffusion plants. There 
are authorized to be appropriated to the Nuclear Regulatory Commission 
$3,000,000 for the purposes of carrying out this subsection.
    [(f) Control of Information.--In carrying out this section, the 
President and the Nuclear Regulatory Commission shall control the 
dissemination of restricted data, safeguards information, and other 
classified national security information in a manner so as to ensure 
the common defense and security, consistent with chapter 12 of the 
Atomic Energy Act of 1954.

[SEC. 2195. AUTHORIZATION AND CHANGE OF COPS PROGRAM TO SINGLE GRANT 
              PROGRAM.

    [(a) In General.--Section 1701 of title I of the Omnibus Crime 
Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd) is amended--
            [(1) by amending subsection (a) to read as follows:
    [``(a) Grant Authorization.--The Attorney General shall carry out a 
single grant program under which the Attorney General makes grants to 
States, units of local government, Indian tribal governments, other 
public and private entities, and multi-jurisdictional or regional 
consortia for the purposes described in subsection (b).'';
            [(2) by striking subsections (b) and (c);
            [(3) by redesignating subsection (d) as subsection (b), and 
        in that subsection--
                    [(A) by striking ``Additional Grant Projects.--
                Grants made under subsection (a) may include programs, 
                projects, and other activities to--'' and inserting 
                ``Uses of Grant Amounts.--The purposes for which grants 
                made under subsection (a) may be made are--'';
                    [(B) by redesignating paragraphs (1) through (12) 
                as paragraphs (6) through (17), respectively;
                    [(C) by inserting before paragraph (5) (as so 
                redesignated) the following new paragraphs:
            [``(1) rehire law enforcement officers who have been laid 
        off as a result of State and local budget reductions for 
        deployment in community-oriented policing;
            [``(2) hire and train new, additional career law 
        enforcement officers for deployment in community-oriented 
        policing across the Nation;
            [``(3) procure equipment, technology, or support systems, 
        or pay overtime, to increase the number of officers deployed in 
        community-oriented policing;
            [``(4) improve security at schools and on school grounds in 
        the jurisdiction of the grantee through--
                    [``(A) placement and use of metal detectors, locks, 
                lighting, and other deterrent measures;
                    [``(B) security assessments;
                    [``(C) security training of personnel and students;
                    [``(D) coordination with local law enforcement; and
                    [``(E) any other measure that, in the determination 
                of the Attorney General, may provide a significant 
                improvement in security;
            [``(5) pay for officers hired to perform intelligence, 
        anti-terror, or homeland security duties exclusively;''; and
                    [(D) by amending paragraph (9) (as so redesignated) 
                to read as follows:
            [``(8) develop new technologies, including interoperable 
        communications technologies, modernized criminal record 
        technology, and forensic technology, to assist State and local 
        law enforcement agencies in reorienting the emphasis of their 
        activities from reacting to crime to preventing crime and to 
        train law enforcement officers to use such technologies;'';
            [(4) by redesignating subsections (e) through (k) as 
        subsections (c) through (i), respectively;
            [(5) in subsection (c) (as so redesignated) by striking 
        ``subsection (i)'' and inserting ``subsection (g)''; and
            [(6) by adding at the end the following new subsection:
    [``(j) Matching Funds for School Security Grants.--Notwithstanding 
subsection (i), in the case of a grant under subsection (a) for the 
purposes described in subsection (b)(4)--
            [``(1) the portion of the costs of a program provided by 
        that grant may not exceed 50 percent;
            [``(2) any funds appropriated by Congress for the 
        activities of any agency of an Indian tribal government or the 
        Bureau of Indian Affairs performing law enforcement functions 
        on any Indian lands may be used to provide the non-Federal 
        share of a matching requirement funded under this subsection; 
        and
            [``(3) the Attorney General may provide, in the guidelines 
        implementing this section, for the requirement of paragraph (1) 
        to be waived or altered in the case of a recipient with a 
        financial need for such a waiver or alteration.''.
    [(b) Conforming Amendment.--Section 1702 of title I of such Act (42 
U.S.C. 3796dd-1) is amended in subsection (d)(2) by striking ``section 
1701(d)'' and inserting ``section 1701(b)''.
    [(c) Authorization of Appropriations.--Section 1001(a)(11) of title 
I of such Act (42 U.S.C. 3793(a)(11)) is amended--
            [(1) in subparagraph (A) by striking clause (i) and all 
        that follows through the period at the end and inserting the 
        following:
            [``(i) $1,007,624,000 for fiscal year 2005;
            [``(ii) $1,027,176,000 for fiscal year 2006; and
            [``(iii) $1,047,119,000 for fiscal year 2007.''; and
            [(2) in subparagraph (B)--
                    [(A) by striking ``section 1701(f)'' and inserting 
                ``section 1701(d)''; and
                    [(B) by striking the third sentence.

                       [Subtitle I--Police Badges

[SEC. 2201. SHORT TITLE.

    [This subtitle may be cited as the ``Badge Security Enhancement Act 
of 2004'' .

[SEC. 2202. POLICE BADGES.

    [Section 716 of title 18, United States Code, is amended in 
subsection (b)--
            [(1) by striking paragraphs (2) and (4); and
            [(2) by redesignating paragraph (3) as paragraph (2).

            [TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

        [Subtitle A--Immigration Reform in the National Interest

                     [CHAPTER 1--GENERAL PROVISIONS

[SEC. 3001. ELIMINATING THE ``WESTERN HEMISPHERE'' EXCEPTION FOR 
              CITIZENS.

    [(a) In General.--
            [(1) In general.--Section 215(b) of the Immigration and 
        Nationality Act (8 U.S.C. 1185(b)) is amended to read as 
        follows:
    [``(b)(1) Except as otherwise provided in this subsection, it shall 
be unlawful for any citizen of the United States to depart from or 
enter, or attempt to depart from or enter, the United States unless the 
citizen bears a valid United States passport.
    [``(2) Subject to such limitations and exceptions as the President 
may authorize and prescribe, the President may waive the application of 
paragraph (1) in the case of a citizen departing the United States to, 
or entering the United States from, foreign contiguous territory.
    [``(3) The President, if waiving the application of paragraph (1) 
pursuant to paragraph (2), shall require citizens departing the United 
States to, or entering the United States from, foreign contiguous 
territory to bear a document (or combination of documents) designated 
by the Secretary of Homeland Security under paragraph (4).
    [``(4) The Secretary of Homeland Security--
            [``(A) shall designate documents that are sufficient to 
        denote identity and citizenship in the United States such that 
        they may be used, either individually or in conjunction with 
        another document, to establish that the bearer is a citizen or 
        national of the United States for purposes of lawfully 
        departing from or entering the United States; and
            [``(B) shall publish a list of those documents in the 
        Federal Register.
    [``(5) A document may not be designated under paragraph (4) 
(whether alone or in combination with other documents) unless the 
Secretary of Homeland Security determines that the document--
            [``(A) may be relied upon for the purposes of this 
        subsection; and
            [``(B) may not be issued to an alien unlawfully present in 
        the United States.''.
            [(2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 2006.
    [(b) Interim Rule.--
            [(1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security--
                    [(A) shall designate documents that are sufficient 
                to denote identity and citizenship in the United States 
                such that they may be used, either individually or in 
                conjunction with another document, to establish that 
                the bearer is a citizen or national of the United 
                States for purposes of lawfully departing from or 
                entering the United States; and
                    [(B) shall publish a list of those documents in the 
                Federal Register.
            [(2) Limitation on presidential authority.--Beginning on 
        the date that is 90 days after the publication described in 
        paragraph (1)(B), the President, notwithstanding section 215(b) 
        of the Immigration and Nationality Act (8 U.S.C. 1185(b)), may 
        not exercise the President's authority under such section so as 
        to permit any citizen of the United States to depart from or 
        enter, or attempt to depart from or enter, the United States 
        from any country other than foreign contiguous territory, 
        unless the citizen bears a document (or combination of 
        documents) designated under paragraph (1)(A).
            [(3) Criteria for designation.--A document may not be 
        designated under paragraph (1)(A) (whether alone or in 
        combination with other documents) unless the Secretary of 
        Homeland Security determines that the document--
                    [(A) may be relied upon for the purposes of this 
                subsection; and
                    [(B) may not be issued to an alien unlawfully 
                present in the United States.
            [(4) Effective date.--This subsection shall take effect on 
        the date of the enactment of this Act and shall cease to be 
        effective on September 30, 2006.

[SEC. 3002. MODIFICATION OF WAIVER AUTHORITY WITH RESPECT TO 
              DOCUMENTATION REQUIREMENTS FOR NATIONALS OF FOREIGN 
              CONTIGUOUS TERRITORIES AND ADJACENT ISLANDS.

    [(a) In General.--Section 212(d)(4) of the Immigration and 
Nationality Act (8 U.S.C. 1182(d)(4)) is amended--
            [(1) by striking ``Attorney General'' and inserting 
        ``Secretary of Homeland Security'';
            [(2) by striking ``on the basis of reciprocity'' and all 
        that follows through ``or (C)''; and
            [(3) by adding at the end the following:
        ``Either or both of the requirements of such paragraph may also 
        be waived by the Secretary of Homeland Security and the 
        Secretary of State, acting jointly and on the basis of 
        reciprocity, with respect to nationals of foreign contiguous 
        territory or of adjacent islands, but only if such nationals 
        are required, in order to be admitted into the United States, 
        to be in possession of identification deemed by the Secretary 
        of Homeland Security to be secure.''.
    [(b) Effective Date.--The amendment made by subsection (a) shall 
take effect on December 31, 2006.

[SEC. 3003. INCREASE IN FULL-TIME BORDER PATROL AGENTS.

    [The Secretary of Homeland Security, in each of fiscal years 2006 
through 2010, shall increase by not less than 2,000 the number of 
positions for full-time active-duty border patrol agents within the 
Department of Homeland Security above the number of such positions for 
which funds were allotted for the preceding fiscal year.

[SEC. 3004. INCREASE IN FULL-TIME IMMIGRATION AND CUSTOMS ENFORCEMENT 
              INVESTIGATORS.

    [The Secretary of Homeland Security, in each of fiscal years 2006 
through 2010, shall increase by not less than 800 the number of 
positions for full-time active-duty investigators within the Department 
of Homeland Security investigating violations of immigration laws (as 
defined in section 101(a)(17) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(17)) above the number of such positions for which funds 
were allotted for the preceding fiscal year. At least half of these 
additional investigators shall be designated to investigate potential 
violations of section 274A of the Immigration and Nationality Act (8 
U.S.C 1324a). Each State shall be allotted at least 3 of these 
additional investigators.

[SEC. 3005. ALIEN IDENTIFICATION STANDARDS.

    [Section 211 of the Immigration and Nationality Act (8 U.S.C. 1181) 
is amended by adding at the end the following:
    [``(d) For purposes of establishing identity to any Federal 
employee, an alien present in the United States may present any 
document issued by the Attorney General or the Secretary of Homeland 
Security under the authority of one of the immigration laws (as defined 
in section 101(a)(17)), or an unexpired lawfully issued foreign 
passport. Subject to the limitations and exceptions in immigration laws 
(as defined in section 101(a)(17) of the Immigration and Nationality 
Act (8 U.S.C. 1101(a)(17)), no other document may be presented for 
those purposes.''.

[SEC. 3006. EXPEDITED REMOVAL.

    [Section 235(b)(1)(A) of the Immigration and Nationality Act (8 
U.S.C. 1225(b)(1)(A)) is amended by striking clauses (i) through (iii) 
and inserting the following:
                            [``(i) In general.--If an immigration 
                        officer determines that an alien (other than an 
                        alien described in subparagraph (F)) who is 
                        arriving in the United States, or who has not 
                        been admitted or paroled into the United States 
                        and has not been physically present in the 
                        United States continuously for the 5-year 
                        period immediately prior to the date of the 
                        determination of inadmissibility under this 
                        paragraph, is inadmissible under section 
                        212(a)(6)(C) or 212(a)(7), the officer shall 
                        order the alien removed from the United States 
                        without further hearing or review, unless--
                                    [``(I) the alien has been charged 
                                with a crime, is in criminal 
                                proceedings, or is serving a criminal 
                                sentence; or
                                    [``(II) the alien indicates an 
                                intention to apply for asylum under 
                                section 208 or a fear of persecution 
                                and the officer determines that the 
                                alien has been physically present in 
                                the United States for less than 1 year.
                            [``(ii) Claims for asylum.--If an 
                        immigration officer determines that an alien 
                        (other than an alien described in subparagraph 
                        (F)) who is arriving in the United States, or 
                        who has not been admitted or paroled into the 
                        United States and has not been physically 
                        present in the United States continuously for 
                        the 5-year period immediately prior to the date 
                        of the determination of inadmissibility under 
                        this paragraph, is inadmissible under section 
                        212(a)(6)(C) or 212(a)(7), and the alien 
                        indicates either an intention to apply for 
                        asylum under section 208 or a fear of 
                        persecution, the officer shall refer the alien 
                        for an interview by an asylum officer under 
                        subparagraph (B) if the officer determines that 
                        the alien has been physically present in the 
                        United States for less than 1 year.''.

[SEC. 3007. PREVENTING TERRORISTS FROM OBTAINING ASYLUM.

    [(a) Conditions for Granting Asylum.--Section 208(b) of the 
Immigration and Nationality Act (8 U.S.C. 1158(b)) is amended--
            [(1) in paragraph (1), by striking ``The Attorney General'' 
        and inserting the following:
                    [``(A) Eligibility.--The Secretary of Homeland 
                Security or the Attorney General''; and
            [(2) by adding at the end the following:
                    [``(B) Burden of proof.--The burden of proof is on 
                the applicant to establish that the applicant is a 
                refugee within the meaning of section 101(a)(42)(A). To 
                establish that the applicant is a refugee within the 
                meaning of this Act, the applicant must establish that 
                race, religion, nationality, membership in a particular 
                social group, or political opinion was or will be the 
                central motive for persecuting the applicant. The 
                testimony of the applicant may be sufficient to sustain 
                such burden without corroboration, but only if it is 
                credible, is persuasive, and refers to specific facts 
                that demonstrate that the applicant is a refugee. Where 
                the trier of fact finds that it is reasonable to expect 
                corroborating evidence for certain alleged facts 
                pertaining to the specifics of the applicant's claim, 
                such evidence must be provided unless a reasonable 
                explanation is given as to why such information is not 
                provided. The credibility determination of the trier of 
                fact may be based, in addition to other factors, on the 
                demeanor, candor, or responsiveness of the applicant or 
                witness, the consistency between the applicant's or 
                witness's written and oral statements, whether or not 
                under oath, made at any time to any officer, agent, or 
                employee of the United States, the internal consistency 
                of each such statement, the consistency of such 
                statements with the country conditions in the country 
                from which the applicant claims asylum (as presented by 
                the Department of State) and any inaccuracies or 
                falsehoods in such statements. These factors may be 
                considered individually or cumulatively.''.
    [(b) Standard of Review for Orders of Removal.--Section 242(b)(4) 
of the Immigration and Nationality Act (8 U.S.C. 1252(b)(4)) is amended 
by adding after subparagraph (D) the following flush language: ``No 
court shall reverse a determination made by an adjudicator with respect 
to the availability of corroborating evidence as described in section 
208(b)(1)(B), unless the court finds that a reasonable adjudicator is 
compelled to conclude that such corroborating evidence is 
unavailable.''.
    [(c) Effective Date.--The amendment made by subsection (b) shall 
take effect upon the date of enactment of this Act and shall apply to 
cases in which the final administrative removal order was issued 
before, on, or after the date of enactment of this Act.

[SEC. 3008. REVOCATION OF VISAS AND OTHER TRAVEL DOCUMENTATION.

    [(a) Limitation on Review.--Section 221(i) of the Immigration and 
Nationality Act (8 U.S.C. 1201(i)) is amended by adding at the end the 
following: ``There shall be no means of administrative or judicial 
review of a revocation under this subsection, and no court or other 
person otherwise shall have jurisdiction to consider any claim 
challenging the validity of such a revocation.''.
    [(b) Classes of Deportable Aliens.--Section 237(a)(1)(B) of the 
Immigration and Nationality Act (8 U.S.C. 1227(a)(1)(B)) is amended by 
striking ``United States is'' and inserting the following: ``United 
States, or whose nonimmigrant visa (or other documentation authorizing 
admission into the United States as a nonimmigrant) has been revoked 
under section 221(i), is''.
    [(c) Revocation of Petitions.--Section 205 of the Immigration and 
Nationality Act (8 U.S.C. 1155) is amended--
            [(1) by striking ``Attorney General'' and inserting 
        ``Secretary of Homeland Security''; and
            [(2) by striking the final two sentences.
    [(d) Effective Date.--The amendments made by this section shall 
take effect on the date of the enactment of this Act and shall apply to 
revocations under sections 205 and 221(i) of the Immigration and 
Nationality Act made before, on, or after such date.

[SEC. 3009. JUDICIAL REVIEW OF ORDERS OF REMOVAL.

    [(a) In General.--Section 242 of the Immigration and Nationality 
Act (8 U.S.C. 1252) is amended--
            [(1) in subsection (a)--
                    [(A) in paragraph (2)--
                            [(i) in subparagraphs (A), (B), and (C), by 
                        inserting ``(statutory and nonstatutory), 
                        including section 2241 of title 28, United 
                        States Code, or any other habeas corpus 
                        provision, and sections 1361 and 1651 of title 
                        28, United States Code'' after 
                        ``Notwithstanding any other provision of law''; 
                        and
                            [(ii) by adding at the end the following:
                    [``(D) Judicial review of certain legal claims.--
                Nothing in this paragraph shall be construed as 
                precluding consideration by the circuit courts of 
                appeals of constitutional claims or pure questions of 
                law raised upon petitions for review filed in 
                accordance with this section. Notwithstanding any other 
                provision of law (statutory and nonstatutory), 
                including section 2241 of title 28, United States Code, 
                or, except as provided in subsection (e), any other 
                habeas corpus provision, and sections 1361 and 1651 of 
                title 28, United States Code, such petitions for review 
                shall be the sole and exclusive means of raising any 
                and all claims with respect to orders of removal 
                entered or issued under any provision of this Act.''; 
                and
                    [(B) by adding at the end the following:
            [``(4) Claims under the united nations convention.--
        Notwithstanding any other provision of law (statutory and 
        nonstatutory), including section 2241 of title 28, United 
        States Code, or any other habeas corpus provision, and sections 
        1361 and 1651 of title 28, United States Code, a petition for 
        review by the circuit courts of appeals filed in accordance 
        with this section is the sole and exclusive means of judicial 
        review of claims arising under the United Nations Convention 
        Against Torture and Other Forms of Cruel, Inhuman, or Degrading 
        Treatment or Punishment.
            [``(5) Exclusive means of review.--The judicial review 
        specified in this subsection shall be the sole and exclusive 
        means for review by any court of an order of removal entered or 
        issued under any provision of this Act. For purposes of this 
        title, in every provision that limits or eliminates judicial 
        review or jurisdiction to review, the terms `judicial review' 
        and `jurisdiction to review' include habeas corpus review 
        pursuant to section 2241 of title 28, United States Code, or 
        any other habeas corpus provision, sections 1361 and 1651 of 
        title 28, United States Code, and review pursuant to any other 
        provision of law.'';
            [(2) in subsection (b)--
                    [(A) in paragraph (3)(B), by inserting ``pursuant 
                to subsection (f)'' after ``unless''; and
                    [(B) in paragraph (9), by adding at the end the 
                following: ``Except as otherwise provided in this 
                subsection, no court shall have jurisdiction, by habeas 
                corpus under section 2241 of title 28, United States 
                Code, or any other habeas corpus provision, by section 
                1361 or 1651 of title 28, United States Code, or by any 
                other provision of law (statutory or nonstatutory), to 
                hear any cause or claim subject to these consolidation 
                provisions.'';
            [(3) in subsection (f)(2), by inserting ``or stay, by 
        temporary or permanent order, including stays pending judicial 
        review,'' after ``no court shall enjoin''; and
            [(4) in subsection (g), by inserting ``(statutory and 
        nonstatutory), including section 2241 of title 28, United 
        States Code, or any other habeas corpus provision, and sections 
        1361 and 1651 of title 28, United States Code'' after 
        ``notwithstanding any other provision of law''.
    [(b) Effective Date.--The amendments made by subsection (a) shall 
take effect upon the date of enactment of this Act and shall apply to 
cases in which the final administrative removal order was issued 
before, on, or after the date of enactment of this Act.

   [CHAPTER 2--DEPORTATION OF TERRORISTS AND SUPPORTERS OF TERRORISM

[SEC. 3031. EXPANDED INAPPLICABILITY OF RESTRICTION ON REMOVAL.

    [(a) In General.--Section 241(b)(3)(B) (8 U.S.C. 1231(b)(3)(B)) is 
amended--
            [(1) in the matter preceding clause (i), by striking 
        ``section 237(a)(4)(D)'' and inserting ``paragraph (4)(B) or 
        (4)(D) of section 237(a)''; and
            [(2) in clause (iii), by striking ``or'';
            [(3) in clause (iv), by striking the period and inserting 
        ``; or'' ;
            [(4) by inserting after clause (iv) and following:
                            [``(v) the alien is described in subclause 
                        (I), (II), (III), (IV), or (VI) of section 
                        212(a)(3)(B)(i) or section 237(a)(4)(B), 
                        unless, in the case only of an alien described 
                        in subclause (IV) of section 212(a)(3)(B)(i), 
                        the Secretary of Homeland Security determines, 
                        in the Secretary's discretion, that there are 
                        not reasonable grounds for regarding the alien 
                        as a danger to the security of the United 
                        States.''; and
            [(5) by striking the last sentence.
    [(b) Exceptions.--Section 208(b)(2)(A)(v) of the Immigration and 
Nationality Act (8 U.S.C. 1158(b)(2)(A)(v)) is amended--
            [(1) by striking ``inadmissible under'' each place such 
        term appears and inserting ``described in''; and
            [(2) by striking ``removable under''.
    [(c) Effective Date.--The amendments made by this section shall 
take effect on the date of the enactment of this Act and shall apply 
to--
            [(1) removal proceedings instituted before, on, or after 
        the date of the enactment of this Act; and
            [(2) acts and conditions constituting a ground for 
        inadmissibility or removal occurring or existing before, on, or 
        after such date.

[SEC. 3032. EXCEPTION TO RESTRICTION ON REMOVAL FOR TERRORISTS AND 
              CRIMINALS.

    [(a) Regulations.--
            [(1) Revision deadline.--Not later than 120 days after the 
        date of the enactment of this Act, the Secretary of Homeland 
        Security shall revise the regulations prescribed by the 
        Secretary to implement the United Nations Convention Against 
        Torture and Other Forms of Cruel, Inhuman or Degrading 
        Treatment or Punishment, done at New York on December 10, 1984.
            [(2) Exclusion of certain aliens.--The revision--
                    [(A) shall exclude from the protection of such 
                regulations aliens described in section 241(b)(3)(B) of 
                the Immigration and Nationality Act (8 U.S.C. 
                1231(b)(3)(B)) (as amended by this title), including 
                rendering such aliens ineligible for withholding or 
                deferral of removal under the Convention; and
                    [(B) shall ensure that the revised regulations 
                operate so as to--
                            [(i) allow for the reopening of 
                        determinations made under the regulations 
                        before the effective date of the revision; and
                            [(ii) apply to acts and conditions 
                        constituting a ground for ineligibility for the 
                        protection of such regulations, as revised, 
                        regardless of when such acts or conditions 
                        occurred.
            [(3) Burden of proof.--The revision shall also ensure that 
        the burden of proof is on the applicant for withholding or 
        deferral of removal under the Convention to establish by clear 
        and convincing evidence that he or she would be tortured if 
        removed to the proposed country of removal.
    [(b) Judicial Review.--Notwithstanding any other provision of law, 
no court shall have jurisdiction to review the regulations adopted to 
implement this section, and nothing in this section shall be construed 
as providing any court jurisdiction to consider or review claims raised 
under the Convention or this section, except as part of the review of a 
final order of removal pursuant to section 242 of the Immigration and 
Nationality Act (8 U.S.C. 1252).

[SEC. 3033. ADDITIONAL REMOVAL AUTHORITIES.

    [(a) In General.--Section 241(b) of the Immigration and Nationality 
Act (8 U.S.C. 1231(b)) is amended--
            [(1) in paragraph (1)--
                    [(A) in each of subparagraphs (A) and (B), by 
                striking the period at the end and inserting ``unless, 
                in the opinion of the Secretary of Homeland Security, 
                removing the alien to such country would be prejudicial 
                to the United States.''; and
                    [(B) by amending subparagraph (C) to read as 
                follows:
                    [``(C) Alternative countries.--If the alien is not 
                removed to a country designated in subparagraph (A) or 
                (B), the Secretary of Homeland Security shall remove 
                the alien to--
                            [``(i) the country of which the alien is a 
                        citizen, subject, or national, where the alien 
                        was born, or where the alien has a residence, 
                        unless the country physically prevents the 
                        alien from entering the country upon the 
                        alien's removal there; or
                            [``(ii) any country whose government will 
                        accept the alien into that country.''; and
            [(2) in paragraph (2)--
                    [(A) by striking ``Attorney General'' each place 
                such term appears and inserting ``Secretary of Homeland 
                Security'';
                    [(B) by amending subparagraph (D) to read as 
                follows:
                    [``(D) Alternative countries.--If the alien is not 
                removed to a country designated under subparagraph 
                (A)(i), the Secretary of Homeland Security shall remove 
                the alien to a country of which the alien is a subject, 
                national, or citizen, or where the alien has a 
                residence, unless--
                            [``(i) such country physically prevents the 
                        alien from entering the country upon the 
                        alien's removal there; or
                            [``(ii) in the opinion of the Secretary of 
                        Homeland Security, removing the alien to the 
                        country would be prejudicial to the United 
                        States.''; and
                    [(C) by amending subparagraph (E)(vii) to read as 
                follows:
                            [``(vii) Any country whose government will 
                        accept the alien into that country.''.
    [(b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply to 
any deportation, exclusion, or removal on or after such date pursuant 
to any deportation, exclusion, or removal order, regardless of whether 
such order is administratively final before, on, or after such date.

           [CHAPTER 3--PREVENTING COMMERCIAL ALIEN SMUGGLING

[SEC. 3041. BRINGING IN AND HARBORING CERTAIN ALIENS.

    [(a) Criminal Penalties.--Section 274(a) of the Immigration and 
Nationality Act (8 U.S.C. 1324(a)) is amended by adding at the end the 
following:
    [``(4) In the case of a person who has brought aliens into the 
United States in violation of this subsection, the sentence otherwise 
provided for may be increased by up to 10 years if--
            [``(A) the offense was part of an ongoing commercial 
        organization or enterprise;
            [``(B) aliens were transported in groups of 10 or more;
            [``(C) aliens were transported in a manner that endangered 
        their lives; or
            [``(D) the aliens presented a life-threatening health risk 
        to people in the United States.''.
    [(b) Outreach Program.--Section 274 of the Immigration and 
Nationality Act (8 U.S.C. 1324), as amended by subsection (a), is 
further amended by adding at the end the following:
    [``(f) Outreach Program.--The Secretary of Homeland Security, in 
consultation as appropriate with the Attorney General and the Secretary 
of State, shall develop and implement an outreach program to educate 
the public in the United States and abroad about the penalties for 
bringing in and harboring aliens in violation of this section.

               [Subtitle B--Identity Management Security

   [CHAPTER 1--IMPROVED SECURITY FOR DRIVERS' LICENSES AND PERSONAL 
                          IDENTIFICATION CARDS

[SEC. 3051. DEFINITIONS.

    [In this chapter, the following definitions apply:
            [(1) Driver's license.--The term ``driver's license'' means 
        a motor vehicle operator's license, as defined in section 30301 
        of title 49, United States Code.
            [(2) Identification card.--The term ``identification card'' 
        means a personal identification card, as defined in section 
        1028(d) of title 18, United States Code, issued by a State.
            [(3) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            [(4) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and any other 
        territory or possession of the United States.

[SEC. 3052. MINIMUM DOCUMENT REQUIREMENTS AND ISSUANCE STANDARDS FOR 
              FEDERAL RECOGNITION.

    [(a) Minimum Standards for Federal Use.--
            [(1) In general.--Beginning 3 years after the date of 
        enactment of this Act, a Federal agency may not accept, for any 
        official purpose, a driver's license or identification card 
        issued by a State to any person unless the State is meeting the 
        requirements of this section.
            [(2) State certifications.--The Secretary shall determine 
        whether a State is meeting the requirements of this section 
        based on certifications made by the State to the Secretary. 
        Such certifications shall be made at such times and in such 
        manner as the Secretary, in consultation with the Secretary of 
        Transportation, may prescribe by regulation.
    [(b) Minimum Document Requirements.--To meet the requirements of 
this section, a State shall include, at a minimum, the following 
information and features on each driver's license and identification 
card issued to a person by the State:
            [(1) The person's full legal name.
            [(2) The person's date of birth.
            [(3) The person's gender.
            [(4) The person's driver license or identification card 
        number.
            [(5) A photograph of the person.
            [(6) The person's address of principal residence.
            [(7) The person's signature.
            [(8) Physical security features designed to prevent 
        tampering, counterfeiting, or duplication of the document for 
        fraudulent purposes.
            [(9) A common machine-readable technology, with defined 
        minimum data elements.
    [(c) Minimum Issuance Standards.--
            [(1) In general.--To meet the requirements of this section, 
        a State shall require, at a minimum, presentation and 
        verification of the following information before issuing a 
        driver's license or identification card to a person:
                    [(A) A photo identity document, except that a non-
                photo identity document is acceptable if it includes 
                both the person's full legal name and date of birth.
                    [(B) Documentation showing the person's date of 
                birth.
                    [(C) Proof of the person's social security account 
                number or verification that the person is not eligible 
                for a social security account number.
                    [(D) Documentation showing the person's name and 
                address of principal residence.
            [(2) Verification of documents.--To meet the requirements 
        of this section, a State shall implement the following 
        procedures:
                    [(A) Before issuing a driver's license or 
                identification card to a person, the State shall 
                verify, with the issuing agency, the issuance, 
                validity, and completeness of each document required to 
                be presented by the person under paragraph (1).
                    [(B) The State shall not accept any foreign 
                document, other than an official passport, to satisfy a 
                requirement of paragraph (1).
    [(d) Other Requirements.--To meet the requirements of this section, 
a State shall adopt the following practices in the issuance of drivers' 
licenses and identification cards:
            [(1) Employ technology to capture digital images of 
        identity source documents so that the images can be retained in 
        electronic storage in a transferable format.
            [(2) Retain paper copies of source documents for a minimum 
        of 7 years or images of source documents presented for a 
        minimum of 10 years.
            [(3) Subject each person applying for a driver's license or 
        identification card to mandatory facial image capture.
            [(4) Establish an effective procedure to confirm or verify 
        a renewing applicant's information.
            [(5) Confirm with the Social Security Administration a 
        social security account number presented by a person using the 
        full social security account number. In the event that a social 
        security account number is already registered to or associated 
        with another person to which any State has issued a driver's 
        license or identification card, the State shall resolve the 
        discrepancy and take appropriate action.
            [(6) Refuse to issue a driver's license or identification 
        card to a person holding a driver's license issued by another 
        State without confirmation that the person is terminating or 
        has terminated the driver's license.
            [(7) Ensure the physical security of locations where 
        drivers' licenses and identification cards are produced and the 
        security of document materials and papers from which drivers' 
        licenses and identification cards are produced.
            [(8) Subject all persons authorized to manufacture or 
        produce drivers' licenses and identification cards to 
        appropriate security clearance requirements.
            [(9) Establish fraudulent document recognition training 
        programs for appropriate employees engaged in the issuance of 
        drivers' licenses and identification cards.

[SEC. 3053. LINKING OF DATABASES.

    [(a) In General.--To be eligible to receive any grant or other type 
of financial assistance made available under this subtitle, a State 
shall participate in the interstate compact regarding sharing of driver 
license data, known as the ``Driver License Agreement'', in order to 
provide electronic access by a State to information contained in the 
motor vehicle databases of all other States.
    [(b) Requirements for Information.--A State motor vehicle database 
shall contain, at a minimum, the following information:
            [(1) All data fields printed on drivers' licenses and 
        identification cards issued by the State.
            [(2) Motor vehicle drivers' histories, including motor 
        vehicle violations, suspensions, and points on licenses.

[SEC. 3054. TRAFFICKING IN AUTHENTICATION FEATURES FOR USE IN FALSE 
              IDENTIFICATION DOCUMENTS.

    [Section 1028(a)(8) of title 18, United States Code, is amended by 
striking ``false authentication features'' and inserting ``false or 
actual authentication features''.

[SEC. 3055. GRANTS TO STATES.

    [(a) In General.--The Secretary may make grants to a State to 
assist the State in conforming to the minimum standards set forth in 
this chapter.
    [(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of the fiscal years 2005 through 
2009 such sums as may be necessary to carry out this chapter.

[SEC. 3056. AUTHORITY.

    [(a) Participation of Secretary of Transportation and States.--All 
authority to issue regulations, certify standards, and issue grants 
under this chapter shall be carried out by the Secretary, in 
consultation with the Secretary of Transportation and the States.
    [(b) Extensions of Deadlines.--The Secretary may grant to a State 
an extension of time to meet the requirements of section 3052(a)(1) if 
the State provides adequate justification for noncompliance.

          [CHAPTER 2--IMPROVED SECURITY FOR BIRTH CERTIFICATES

[SEC. 3061. DEFINITIONS.

    [(a) Applicability of Definitions.--Except as otherwise 
specifically provided, the definitions contained in section 3051 apply 
to this chapter.
    [(b) Other Definitions.--In this chapter, the following definitions 
apply:
            [(1) Birth certificate.--The term ``birth certificate'' 
        means a certificate of birth--
                    [(A) for an individual (regardless of where born)--
                            [(i) who is a citizen or national of the 
                        United States at birth; and
                            [(ii) whose birth is registered in the 
                        United States; and
                    [(B) that--
                            [(i) is issued by a Federal, State, or 
                        local government agency or authorized custodian 
                        of record and produced from birth records 
                        maintained by such agency or custodian of 
                        record; or
                            [(ii) is an authenticated copy, issued by a 
                        Federal, State, or local government agency or 
                        authorized custodian of record, of an original 
                        certificate of birth issued by such agency or 
                        custodian of record.
            [(2) Registrant.--The term ``registrant'' means, with 
        respect to a birth certificate, the person whose birth is 
        registered on the certificate.
            [(3) State.--The term ``State'' shall have the meaning 
        given such term in section 3051; except that New York City 
        shall be treated as a State separate from New York.

[SEC. 3062. APPLICABILITY OF MINIMUM STANDARDS TO LOCAL GOVERNMENTS.

    [The minimum standards in this chapter applicable to birth 
certificates issued by a State shall also apply to birth certificates 
issued by a local government in the State. It shall be the 
responsibility of the State to ensure that local governments in the 
State comply with the minimum standards.

[SEC. 3063. MINIMUM STANDARDS FOR FEDERAL RECOGNITION.

    [(a) Minimum Standards for Federal Use.--
            [(1) In general.--Beginning 3 years after the date of 
        enactment of this Act, a Federal agency may not accept, for any 
        official purpose, a birth certificate issued by a State to any 
        person unless the State is meeting the requirements of this 
        section.
            [(2) State certifications.--The Secretary shall determine 
        whether a State is meeting the requirements of this section 
        based on certifications made by the State to the Secretary. 
        Such certifications shall be made at such times and in such 
        manner as the Secretary, in consultation with the Secretary of 
        Health and Human Services, may prescribe by regulation.
    [(b) Minimum Document Standards.--To meet the requirements of this 
section, a State shall include, on each birth certificate issued to a 
person by the State, the use of safety paper, the seal of the issuing 
custodian of record, and such other features as the Secretary may 
determine necessary to prevent tampering, counterfeiting, and otherwise 
duplicating the birth certificate for fraudulent purposes. The 
Secretary may not require a single design to which birth certificates 
issued by all States must conform.
    [(c) Minimum Issuance Standards.--
            [(1) In general.--To meet the requirements of this section, 
        a State shall require and verify the following information from 
        the requestor before issuing an authenticated copy of a birth 
        certificate:
                    [(A) The name on the birth certificate.
                    [(B) The date and location of the birth.
                    [(C) The mother's maiden name.
                    [(D) Substantial proof of the requestor's identity.
            [(2) Issuance to persons not named on birth certificate.--
        To meet the requirements of this section, in the case of a 
        request by a person who is not named on the birth certificate, 
        a State must require the presentation of legal authorization to 
        request the birth certificate before issuance.
            [(3) Issuance to family members.--Not later than one year 
        after the date of enactment of this Act, the Secretary, in 
        consultation with the Secretary of Health and Human Services 
        and the States, shall establish minimum standards for issuance 
        of a birth certificate to specific family members, their 
        authorized representatives, and others who demonstrate that the 
        certificate is needed for the protection of the requestor's 
        personal or property rights.
            [(4) Waivers.--A State may waive the requirements set forth 
        in subparagraphs (A) through (C) of subsection (c)(1) in 
        exceptional circumstances, such as the incapacitation of the 
        registrant.
            [(5) Applications by electronic means.--To meet the 
        requirements of this section, for applications by electronic 
        means, through the mail or by phone or fax, a State shall 
        employ third party verification, or equivalent verification, of 
        the identity of the requestor.
            [(6) Verification of documents.--To meet the requirements 
        of this section, a State shall verify the documents used to 
        provide proof of identity of the requestor.
    [(d) Other Requirements.--To meet the requirements of this section, 
a State shall adopt, at a minimum, the following practices in the 
issuance and administration of birth certificates:
            [(1) Establish and implement minimum building security 
        standards for State and local vital record offices.
            [(2) Restrict public access to birth certificates and 
        information gathered in the issuance process to ensure that 
        access is restricted to entities with which the State has a 
        binding privacy protection agreement.
            [(3) Subject all persons with access to vital records to 
        appropriate security clearance requirements.
            [(4) Establish fraudulent document recognition training 
        programs for appropriate employees engaged in the issuance 
        process.
            [(5) Establish and implement internal operating system 
        standards for paper and for electronic systems.
            [(6) Establish a central database that can provide 
        interoperative data exchange with other States and with Federal 
        agencies, subject to privacy restrictions and confirmation of 
        the authority and identity of the requestor.
            [(7) Ensure that birth and death records are matched in a 
        comprehensive and timely manner, and that all electronic birth 
        records and paper birth certificates of decedents are marked 
        ``deceased''.
            [(8) Cooperate with the Secretary in the implementation of 
        electronic verification of vital events under section 3065.

[SEC. 3064. ESTABLISHMENT OF ELECTRONIC BIRTH AND DEATH REGISTRATION 
              SYSTEMS.

    [In consultation with the Secretary of Health and Human Services 
and the Commissioner of Social Security, the Secretary shall take the 
following actions:
            [(1) Work with the States to establish a common data set 
        and common data exchange protocol for electronic birth 
        registration systems and death registration systems.
            [(2) Coordinate requirements for such systems to align with 
        a national model.
            [(3) Ensure that fraud prevention is built into the design 
        of electronic vital registration systems in the collection of 
        vital event data, the issuance of birth certificates, and the 
        exchange of data among government agencies.
            [(4) Ensure that electronic systems for issuing birth 
        certificates, in the form of printed abstracts of birth records 
        or digitized images, employ a common format of the certified 
        copy, so that those requiring such documents can quickly 
        confirm their validity.
            [(5) Establish uniform field requirements for State birth 
        registries.
            [(6) Not later than 1 year after the date of enactment of 
        this Act, establish a process with the Department of Defense 
        that will result in the sharing of data, with the States and 
        the Social Security Administration, regarding deaths of United 
        States military personnel and the birth and death of their 
        dependents.
            [(7) Not later than 1 year after the date of enactment of 
        this Act, establish a process with the Department of State to 
        improve registration, notification, and the sharing of data 
        with the States and the Social Security Administration, 
        regarding births and deaths of United States citizens abroad.
            [(8) Not later than 3 years after the date of establishment 
        of databases provided for under this section, require States to 
        record and retain electronic records of pertinent 
        identification information collected from requestors who are 
        not the registrants.
            [(9) Not later than 6 months after the date of enactment of 
        this Act, submit to Congress, a report on whether there is a 
        need for Federal laws to address penalties for fraud and misuse 
        of vital records and whether violations are sufficiently 
        enforced.

[SEC. 3065. ELECTRONIC VERIFICATION OF VITAL EVENTS.

    [(a) Lead Agency.--The Secretary shall lead the implementation of 
electronic verification of a person's birth and death.
    [(b) Regulations.--In carrying out subsection (a), the Secretary 
shall issue regulations to establish a means by which authorized 
Federal and State agency users with a single interface will be able to 
generate an electronic query to any participating vital records 
jurisdiction throughout the Nation to verify the contents of a paper 
birth certificate. Pursuant to the regulations, an electronic response 
from the participating vital records jurisdiction as to whether there 
is a birth record in their database that matches the paper birth 
certificate will be returned to the user, along with an indication if 
the matching birth record has been flagged ``deceased''. The 
regulations shall take effect not later than 5 years after the date of 
enactment of this Act.

[SEC. 3066. GRANTS TO STATES.

    [(a) In General.--The Secretary may make grants to a State to 
assist the State in conforming to the minimum standards set forth in 
this chapter.
    [(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of the fiscal years 2005 through 
2009 such sums as may be necessary to carry out this chapter.

[SEC. 3067. AUTHORITY.

    [(a) Participation With Federal Agencies and States.--All authority 
to issue regulations, certify standards, and issue grants under this 
chapter shall be carried out by the Secretary, with the concurrence of 
the Secretary of Health and Human Services and in consultation with 
State vital statistics offices and appropriate Federal agencies.
    [(b) Extensions of Deadlines.--The Secretary may grant to a State 
an extension of time to meet the requirements of section 3063(a)(1) if 
the State provides adequate justification for noncompliance.

    [CHAPTER 3--MEASURES TO ENHANCE PRIVACY AND INTEGRITY OF SOCIAL 
                        SECURITY ACCOUNT NUMBERS

[SEC. 3071. PROHIBITION OF THE DISPLAY OF SOCIAL SECURITY ACCOUNT 
              NUMBERS ON DRIVER'S LICENSES OR MOTOR VEHICLE 
              REGISTRATIONS.

    [(a) In General.--Section 205(c)(2)(C)(vi) of the Social Security 
Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
            [(1) by inserting ``(I)'' after ``(vi)''; and
            [(2) by adding at the end the following new subclause:
    [``(II) Any State or political subdivision thereof (and any person 
acting as an agent of such an agency or instrumentality), in the 
administration of any driver's license or motor vehicle registration 
law within its jurisdiction, may not display a social security account 
number issued by the Commissioner of Social Security (or any derivative 
of such number) on any driver's license or motor vehicle registration 
or any other document issued by such State or political subdivision to 
an individual for purposes of identification of such individual or 
include on any such license, registration, or other document a magnetic 
strip, bar code, or other means of communication which conveys such 
number (or derivative thereof).''.
    [(b) Effective Date.--The amendments made by this section shall 
apply with respect to licenses, registrations, and other documents 
issued or reissued after 1 year after the date of the enactment of this 
Act.

[SEC. 3072. INDEPENDENT VERIFICATION OF BIRTH RECORDS PROVIDED IN 
              SUPPORT OF APPLICATIONS FOR SOCIAL SECURITY ACCOUNT 
              NUMBERS.

    [(a) Applications for Social Security Account Numbers.--Section 
205(c)(2)(B)(ii) of the Social Security Act (42 U.S.C. 
405(c)(2)(B)(ii)) is amended--
            [(1) by inserting ``(I)'' after ``(ii)''; and
            [(2) by adding at the end the following new subclause:
    [``(II) With respect to an application for a social security 
account number for an individual, other than for purposes of 
enumeration at birth, the Commissioner shall require independent 
verification of any birth record provided by the applicant in support 
of the application. The Commissioner may provide by regulation for 
reasonable exceptions from the requirement for independent verification 
under this subclause in any case in which the Commissioner determines 
there is minimal opportunity for fraud.''.
    [(b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to applications filed after 270 days after the date 
of the enactment of this Act.
    [(c) Study Regarding Applications for Replacement Social Security 
Cards.--
            [(1) In general.--As soon as practicable after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall undertake a study to test the feasibility and cost 
        effectiveness of verifying all identification documents 
        submitted by an applicant for a replacement social security 
        card. As part of such study, the Commissioner shall determine 
        the feasibility of, and the costs associated with, the 
        development of appropriate electronic processes for third party 
        verification of any such identification documents which are 
        issued by agencies and instrumentalities of the Federal 
        Government and of the States (and political subdivisions 
        thereof).
            [(2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Commissioner shall report to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate regarding the results of 
        the study undertaken under paragraph (1). Such report shall 
        contain such recommendations for legislative changes as the 
        Commissioner considers necessary to implement needed 
        improvements in the process for verifying identification 
        documents submitted by applicants for replacement social 
        security cards.

[SEC. 3073. ENUMERATION AT BIRTH.

    [(a) Improvement of Application Process.--
            [(1) In general.--As soon as practicable after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall undertake to make improvements to the enumeration at 
        birth program for the issuance of social security account 
        numbers to newborns. Such improvements shall be designed to 
        prevent--
                    [(A) the assignment of social security account 
                numbers to unnamed children;
                    [(B) the issuance of more than 1 social security 
                account number to the same child; and
                    [(C) other opportunities for fraudulently obtaining 
                a social security account number.
            [(2) Report to the congress.--Not later than 1 year after 
        the date of the enactment of this Act, the Commissioner shall 
        transmit to each House of the Congress a report specifying in 
        detail the extent to which the improvements required under 
        paragraph (1) have been made.
    [(b) Study Regarding Process for Enumeration at Birth.--
            [(1) In general.--As soon as practicable after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall undertake a study to determine the most efficient options 
        for ensuring the integrity of the process for enumeration at 
        birth. Such study shall include an examination of available 
        methods for reconciling hospital birth records with birth 
        registrations submitted to agencies of States and political 
        subdivisions thereof and with information provided to the 
        Commissioner as part of the process for enumeration at birth.
            [(2) Report.--Not later than 18 months after the date of 
        the enactment of this Act, the Commissioner shall report to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate regarding the results of 
        the study undertaken under paragraph (1). Such report shall 
        contain such recommendations for legislative changes as the 
        Commissioner considers necessary to implement needed 
        improvements in the process for enumeration at birth.

[SEC. 3074. STUDY RELATING TO USE OF PHOTOGRAPHIC IDENTIFICATION IN 
              CONNECTION WITH APPLICATIONS FOR BENEFITS, SOCIAL 
              SECURITY ACCOUNT NUMBERS, AND SOCIAL SECURITY CARDS.

    [(a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Commissioner of Social Security shall 
undertake a study to--
            [(1) determine the best method of requiring and obtaining 
        photographic identification of applicants for old-age, 
        survivors, and disability insurance benefits under title II of 
        the Social Security Act, for a social security account number, 
        or for a replacement social security card, and of providing for 
        reasonable exceptions to any requirement for photographic 
        identification of such applicants that may be necessary to 
        promote efficient and effective administration of such title, 
        and
            [(2) evaluate the benefits and costs of instituting such a 
        requirement for photographic identification, including the 
        degree to which the security and integrity of the old-age, 
        survivors, and disability insurance program would be enhanced.
    [(b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commissioner shall report to the Committee 
on Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate regarding the results of the study undertaken 
under subsection (a). Such report shall contain such recommendations 
for legislative changes as the Commissioner considers necessary 
relating to requirements for photographic identification of applicants 
described in subsection (a).

[SEC. 3075. RESTRICTIONS ON ISSUANCE OF MULTIPLE REPLACEMENT SOCIAL 
              SECURITY CARDS.

    [(a) In General.--Section 205(c)(2)(G) of the Social Security Act 
(42 U.S.C. 405(c)(2)(G)) is amended by adding at the end the following 
new sentence: ``The Commissioner shall restrict the issuance of 
multiple replacement social security cards to any individual to 3 per 
year and to 10 for the life of the individual, except in any case in 
which the Commissioner determines there is minimal opportunity for 
fraud.''.
    [(b) Regulations and Effective Date.--The Commissioner of Social 
Security shall issue regulations under the amendment made by subsection 
(a) not later than 1 year after the date of the enactment of this Act. 
Systems controls developed by the Commissioner pursuant to such 
amendment shall take effect upon the earlier of the issuance of such 
regulations or the end of such 1-year period.

[SEC. 3076. STUDY RELATING TO MODIFICATION OF THE SOCIAL SECURITY 
              ACCOUNT NUMBERING SYSTEM TO SHOW WORK AUTHORIZATION 
              STATUS.

    [(a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Commissioner of Social Security, in 
consultation with the Secretary of Homeland Security, shall undertake a 
study to examine the best method of modifying the social security 
account number assigned to individuals who--
            [(1) are not citizens of the United States,
            [(2) have not been admitted for permanent residence, and
            [(3) are not authorized by the Secretary of Homeland 
        Security to work in the United States, or are so authorized 
        subject to one or more restrictions,
so as to include an indication of such lack of authorization to work or 
such restrictions on such an authorization.
    [(b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Commissioner shall report to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate regarding the results of the study undertaken under this 
section. Such report shall include the Commissioner's recommendations 
of feasible options for modifying the social security account number in 
the manner described in subsection (a).

                [Subtitle C--Targeting Terrorist Travel

[SEC. 3081. STUDIES ON MACHINE-READABLE PASSPORTS AND TRAVEL HISTORY 
              DATABASE.

    [(a) In General.--Not later than May 31, 2005, the Comptroller 
General of the United States, the Secretary of State, and the Secretary 
of Homeland Security each shall submit to the Committees on the 
Judiciary of the House of Representatives and of the Senate, the 
Committee on International Relations of the House of Representatives, 
and the Committee on Foreign Relations of the Senate the results of a 
separate study on the subjects described in subsection (c).
    [(b) Study.--The study submitted by the Secretary of State under 
subsection (a) shall be completed by the Office of Visa and Passport 
Control of the Department of State, in coordination with the 
appropriate officials of the Department of Homeland Security.
    [(c) Contents.--The studies described in subsection (a) shall 
examine the feasibility, cost, potential benefits, and relative 
importance to the objectives of tracking suspected terrorists' travel, 
and apprehending suspected terrorists, of each of the following:
            [(1) Requiring nationals of all countries to present 
        machine-readable, tamper-resistant passports that incorporate 
        biometric and document authentication identifiers.
            [(2) Creation of a database containing information on the 
        lifetime travel history of each foreign national or United 
        States citizen who might seek to enter the United States or 
        another country at any time, in order that border and visa 
        issuance officials may ascertain the travel history of a 
        prospective entrant by means other than a passport.
    [(d) Incentives.--The studies described in subsection (a) shall 
also make recommendations on incentives that might be offered to 
encourage foreign nations to participate in the initiatives described 
in paragraphs (1) and (2) of subsection (c).

[SEC. 3082. EXPANDED PREINSPECTION AT FOREIGN AIRPORTS.

    [(a) In General.--Section 235A(a)(4) of the Immigration and 
Nationality Act (8 U.S.C. 1225(a)(4)) is amended--
            [(1) by striking ``October 31, 2000,'' and inserting 
        ``January 1, 2008,'';
            [(2) by striking ``5 additional'' and inserting ``up to 25 
        additional'';
            [(3) by striking ``number of aliens'' and inserting 
        ``number of inadmissible aliens, especially aliens who are 
        potential terrorists,'';
            [(4) by striking ``who are inadmissible to the United 
        States.'' and inserting a period; and
            [(5) by striking ``Attorney General'' each place such term 
        appears and inserting ``Secretary of Homeland Security''.
    [(b) Report.--Not later than June 30, 2006, the Secretary of 
Homeland Security and the Secretary of State shall report to the 
Committees on the Judiciary of the House of Representatives and of the 
Senate, the Committee on International Relations of the House of 
Representatives, and the Committee on Foreign Relations of the Senate 
on the progress being made in implementing the amendments made by 
subsection (a).
    [(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Homeland Security to carry out the 
amendments made by subsection (a)--
            [(1) $24,000,000 for fiscal year 2005;
            [(2) $48,000,000 for fiscal year 2006; and
            [(3) $97,000,000 for fiscal year 2007.

[SEC. 3083. IMMIGRATION SECURITY INITIATIVE.

    [(a) In General.--Section 235A(b) of the Immigration and 
Nationality Act (8 U.S.C. 1225(b)) is amended--
            [(1) in the subsection heading, by inserting ``and 
        Immigration Security Initiative'' after ``Program''; and
            [(2) by adding at the end the following:
``Beginning not later than December 31, 2006, the number of airports 
selected for an assignment under this subsection shall be at least 
50.''.
    [(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Homeland Security to carry out the 
amendments made by subsection (a)--
            [(1) $25,000,000 for fiscal year 2005;
            [(2) $40,000,000 for fiscal year 2006; and
            [(3) $40,000,000 for fiscal year 2007.

[SEC. 3084. RESPONSIBILITIES AND FUNCTIONS OF CONSULAR OFFICERS.

    [(a) Increased Number of Consular Officers.--The Secretary of 
State, in each of fiscal years 2006 through 2009, may increase by 150 
the number of positions for consular officers above the number of such 
positions for which funds were allotted for the preceding fiscal year.
    [(b) Limitation on Use of Foreign Nationals for Nonimmigrant Visa 
Screening.--Section 222(d) of the Immigration and Nationality Act (8 
U.S.C. 1202(d)) is amended by adding at the end the following:
``All nonimmigrant visa applications shall be reviewed and adjudicated 
by a consular officer.''.
    [(c) Training for Consular Officers in Detection of Fraudulent 
Documents.--Section 305(a) of the Enhanced Border Security and Visa 
Entry Reform Act of 2002 (8 U.S.C. 1734(a)) is amended by adding at the 
end the following: ``As part of the consular training provided to such 
officers by the Secretary of State, such officers shall also receive 
training in detecting fraudulent documents and general document 
forensics and shall be required as part of such training to work with 
immigration officers conducting inspections of applicants for admission 
into the United States at ports of entry.''.
    [(d) Assignment of Anti-Fraud Specialists.--
            [(1) Survey regarding document fraud.--The Secretary of 
        State, in coordination with the Secretary of Homeland Security, 
        shall conduct a survey of each diplomatic and consular post at 
        which visas are issued to assess the extent to which fraudulent 
        documents are presented by visa applicants to consular officers 
        at such posts.
            [(2) Placement of specialist.--Not later than July 31, 
        2005, the Secretary shall, in coordination with the Secretary 
        of Homeland Security, identify 100 of such posts that 
        experience the greatest frequency of presentation of fraudulent 
        documents by visa applicants. The Secretary shall place in each 
        such post at least one full-time anti-fraud specialist employed 
        by the Department of State to assist the consular officers at 
        each such post in the detection of such fraud.

[SEC. 3085. INCREASE IN PENALTIES FOR FRAUD AND RELATED ACTIVITY.

    [Section 1028 of title 18, United States Code, relating to 
penalties for fraud and related activity in connection with 
identification documents and information, is amended--
            [(1) in subsection (b)(1)(A)(i), by striking ``issued by or 
        under the authority of the United States'' and inserting the 
        following: ``as described in subsection (d)'';
            [(2) in subsection (b)(2), by striking ``three years'' and 
        inserting ``six years'';
            [(3) in subsection (b)(3), by striking ``20 years'' and 
        inserting ``25 years'';
            [(4) in subsection (b)(4), by striking ``25 years'' and 
        inserting ``30 years''; and
            [(5) in subsection (c)(1), by inserting after ``United 
        States'' the following: ``Government, a State, political 
        subdivision of a State, a foreign government, political 
        subdivision of a foreign government, an international 
        governmental or an international quasi-governmental 
        organization,''.

[SEC. 3086. CRIMINAL PENALTY FOR FALSE CLAIM TO CITIZENSHIP.

    [Section 1015 of title 18, United States Code, is amended--
            [(1) by striking the dash at the end of subsection (f) and 
        inserting ``; or''; and
            [(2) by inserting after subsection (f) the following:
    [``(g) Whoever knowingly makes any false statement or claim that he 
is a citizen of the United States in order to enter into, or remain in, 
the United States--''.

[SEC. 3087. ANTITERRORISM ASSISTANCE TRAINING OF THE DEPARTMENT OF 
              STATE.

    [(a) Limitation.--Notwithstanding any other provision of law, the 
Secretary of State shall ensure, subject to subsection (b), that the 
Antiterrorism Assistance Training (ATA) program of the Department of 
State (or any successor or related program) under chapter 8 of part II 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa et seq.) (or 
other relevant provisions of law) is carried out primarily to provide 
training to host nation security services for the specific purpose of 
ensuring the physical security and safety of United States Government 
facilities and personnel abroad (as well as foreign dignitaries and 
training related to the protection of such dignitaries), including 
security detail training and offenses related to passport or visa 
fraud.
    [(b) Exception.--The limitation contained in subsection (a) shall 
not apply, and the Secretary of State may expand the ATA program to 
include other types of antiterrorism assistance training, if the 
Secretary first obtains the approval of the Attorney General and 
provides written notification of such proposed expansion to the 
appropriate congressional committees.
    [(c) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            [(1) the Committee on International Relations and the 
        Committee on the Judiciary of the House of Representatives; and
            [(2) the Committee on Foreign Relations and the Committee 
        on the Judiciary of the Senate.

[SEC. 3088. INTERNATIONAL AGREEMENTS TO TRACK AND CURTAIL TERRORIST 
              TRAVEL THROUGH THE USE OF FRAUDULENTLY OBTAINED 
              DOCUMENTS.

    [(a) Findings.--Congress finds the following:
            [(1) International terrorists travel across international 
        borders to raise funds, recruit members, train for operations, 
        escape capture, communicate, and plan and carry out attacks.
            [(2) The international terrorists who planned and carried 
        out the attack on the World Trade Center on February 26, 1993, 
        the attack on the embassies of the United States in Kenya and 
        Tanzania on August 7, 1998, the attack on the USS Cole on 
        October 12, 2000, and the attack on the World Trade Center and 
        the Pentagon on September 11, 2001, traveled across 
        international borders to plan and carry out these attacks.
            [(3) The international terrorists who planned other attacks 
        on the United States, including the plot to bomb New York City 
        landmarks in 1993, the plot to bomb the New York City subway in 
        1997, and the millennium plot to bomb Los Angeles International 
        Airport on December 31, 1999, traveled across international 
        borders to plan and carry out these attacks.
            [(4) Many of the international terrorists who planned and 
        carried out large-scale attacks against foreign targets, 
        including the attack in Bali, Indonesia, on October 11, 2002, 
        and the attack in Madrid, Spain, on March 11, 2004, traveled 
        across international borders to plan and carry out these 
        attacks.
            [(5) Throughout the 1990s, international terrorists, 
        including those involved in the attack on the World Trade 
        Center on February 26, 1993, the plot to bomb New York City 
        landmarks in 1993, and the millennium plot to bomb Los Angeles 
        International Airport on December 31, 1999, traveled on 
        fraudulent passports and often had more than one passport.
            [(6) Two of the September 11, 2001, hijackers were carrying 
        passports that had been manipulated in a fraudulent manner and 
        several other hijackers whose passports did not survive the 
        attacks on the World Trade Center and Pentagon were likely to 
        have carried passports that were similarly manipulated.
            [(7) The National Commission on Terrorist Attacks upon the 
        United States, (commonly referred to as the 9/11 Commission), 
        stated that ``Targeting travel is at least as powerful a weapon 
        against terrorists as targeting their money.''.
    [(b) International Agreements to Track and Curtail Terrorist 
Travel.--
            [(1) International agreement on lost, stolen, or falsified 
        documents.--The President shall lead efforts to track and 
        curtail the travel of terrorists by supporting the drafting, 
        adoption, and implementation of international agreements, and 
        by supporting the expansion of existing international 
        agreements, to track and stop international travel by 
        terrorists and other criminals through the use of lost, stolen, 
        or falsified documents to augment existing United Nations and 
        other international anti-terrorism efforts.
            [(2) Contents of international agreement.--The President 
        shall seek, in the appropriate fora, the drafting, adoption, 
        and implementation of an effective international agreement 
        requiring--
                    [(A) the establishment of a system to share 
                information on lost, stolen, and fraudulent passports 
                and other travel documents for the purposes of 
                preventing the undetected travel of persons using such 
                passports and other travel documents that were obtained 
                improperly;
                    [(B) the establishment and implementation of a 
                real-time verification system of passports and other 
                travel documents with issuing authorities;
                    [(C) the assumption of an obligation by countries 
                that are parties to the agreement to share with 
                officials at ports of entry in any such country 
                information relating to lost, stolen, and fraudulent 
                passports and other travel documents;
                    [(D) the assumption of an obligation by countries 
                that are parties to the agreement--
                            [(i) to criminalize--
                                    [(I) the falsification or 
                                counterfeiting of travel documents or 
                                breeder documents for any purpose;
                                    [(II) the use or attempted use of 
                                false documents to obtain a visa or 
                                cross a border for any purpose;
                                    [(III) the possession of tools or 
                                implements used to falsify or 
                                counterfeit such documents;
                                    [(IV) the trafficking in false or 
                                stolen travel documents and breeder 
                                documents for any purpose;
                                    [(V) the facilitation of travel by 
                                a terrorist; and
                                    [(VI) attempts to commit, including 
                                conspiracies to commit, the crimes 
                                specified above;
                            [(ii) to impose significant penalties so as 
                        to appropriately punish violations and 
                        effectively deter these crimes; and
                            [(iii) to limit the issuance of citizenship 
                        papers, passports, identification documents, 
                        and the like to persons whose identity is 
                        proven to the issuing authority, who have a 
                        bona fide entitlement to or need for such 
                        documents, and who are not issued such 
                        documents principally on account of a 
                        disproportional payment made by them or on 
                        their behalf to the issuing authority;
                    [(E) the provision of technical assistance to State 
                Parties to help them meet their obligations under the 
                convention;
                    [(F) the establishment and implementation of a 
                system of self-assessments and peer reviews to examine 
                the degree of compliance with the convention; and
                    [(G) an agreement that would permit immigration and 
                border officials to confiscate a lost, stolen, or 
                falsified passport at ports of entry and permit the 
                traveler to return to the sending country without being 
                in possession of the lost, stolen, or falsified 
                passport, and for the detention and investigation of 
                such traveler upon the return of the traveler to the 
                sending country.
            [(3) International civil aviation organization.--The United 
        States shall lead efforts to track and curtail the travel of 
        terrorists by supporting efforts at the International Civil 
        Aviation Organization to continue to strengthen the security 
        features of passports and other travel documents.
    [(c) Report.--
            [(1) In general.--Not later than one year after the date of 
        the enactment of this Act, and at least annually thereafter, 
        the President shall submit to the appropriate congressional 
        committees a report on progress toward achieving the goals 
        described in subsection (b).
            [(2) Termination.--Paragraph (1) shall cease to be 
        effective when the President certifies to the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate that the goals 
        described in subsection (b) have been fully achieved.

[SEC. 3089. INTERNATIONAL STANDARDS FOR TRANSLATION OF NAMES INTO THE 
              ROMAN ALPHABET FOR INTERNATIONAL TRAVEL DOCUMENTS AND 
              NAME-BASED WATCHLIST SYSTEMS.

    [(a) Findings.--Congress finds that--
            [(1) the current lack of a single convention for 
        translating Arabic names enabled some of the 19 hijackers of 
        aircraft used in the terrorist attacks against the United 
        States that occurred on September 11, 2001, to vary the 
        spelling of their names to defeat name-based terrorist 
        watchlist systems and to make more difficult any potential 
        efforts to locate them; and
            [(2) although the development and utilization of terrorist 
        watchlist systems using biometric identifiers will be helpful, 
        the full development and utilization of such systems will take 
        several years, and name-based terrorist watchlist systems will 
        always be useful.
    [(b) Sense of Congress.--It is the sense of Congress that the 
President should seek to enter into an international agreement to 
modernize and improve standards for the translation of names into the 
Roman alphabet in order to ensure one common spelling for such names 
for international travel documents and name-based watchlist systems.

[SEC. 3090. BIOMETRIC ENTRY AND EXIT DATA SYSTEM.

    [(a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, Congress finds 
that completing a biometric entry and exit data system as expeditiously 
as possible is an essential investment in efforts to protect the United 
States by preventing the entry of terrorists.
    [(b) Plan and Report.--
            [(1) Development of plan.--The Secretary of Homeland 
        Security shall develop a plan to accelerate the full 
        implementation of an automated biometric entry and exit data 
        system required by applicable sections of--
                    [(A) the Illegal Immigration Reform and Immigrant 
                Responsibility Act of 1996 (Public Law 104-208);
                    [(B) the Immigration and Naturalization Service 
                Data Management Improvement Act of 2000 (Public Law 
                106-205);
                    [(C) the Visa Waiver Permanent Program Act (Public 
                Law 106-396);
                    [(D) the Enhanced Border Security and Visa Entry 
                Reform Act of 2002 (Public Law 107-173); and
                    [(E) the Uniting and Strengthening America by 
                Providing Appropriate Tools Required to Intercept and 
                Obstruct Terrorism Act of 2001 (Public Law 107-56).
            [(2) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary shall submit a report to 
        Congress on the plan developed under paragraph (1), which shall 
        contain--
                    [(A) a description of the current functionality of 
                the entry and exit data system, including--
                            [(i) a listing of ports of entry with 
                        biometric entry data systems in use and whether 
                        such screening systems are located at primary 
                        or secondary inspection areas;
                            [(ii) a listing of ports of entry with 
                        biometric exit data systems in use;
                            [(iii) a listing of databases and data 
                        systems with which the automated entry and exit 
                        data system are interoperable;
                            [(iv) a description of--
                                    [(I) identified deficiencies 
                                concerning the accuracy or integrity of 
                                the information contained in the entry 
                                and exit data system;
                                    [(II) identified deficiencies 
                                concerning technology associated with 
                                processing individuals through the 
                                system; and
                                    [(III) programs or policies planned 
                                or implemented to correct problems 
                                identified in subclause (I) or (II); 
                                and
                            [(v) an assessment of the effectiveness of 
                        the entry and exit data system in fulfilling 
                        its intended purposes, including preventing 
                        terrorists from entering the United States;
                    [(B) a description of factors relevant to the 
                accelerated implementation of the biometric entry and 
                exit system, including--
                            [(i) the earliest date on which the 
                        Secretary estimates that full implementation of 
                        the biometric entry and exit data system can be 
                        completed;
                            [(ii) the actions the Secretary will take 
                        to accelerate the full implementation of the 
                        biometric entry and exit data system at all 
                        ports of entry through which all aliens must 
                        pass that are legally required to do so; and
                            [(iii) the resources and authorities 
                        required to enable the Secretary to meet the 
                        implementation date described in clause (i);
                    [(C) a description of any improvements needed in 
                the information technology employed for the entry and 
                exit data system; and
                    [(D) a description of plans for improved or added 
                interoperability with any other databases or data 
                systems.
    [(c) Integration Requirement.--Not later than 2 years after the 
date of the enactment of this Act, the Secretary shall integrate the 
biometric entry and exit data system with all databases and data 
systems maintained by the United States Citizenship and Immigration 
Services that process or contain information on aliens.
    [(d) Maintaining Accuracy and Integrity of Entry and Exit Data 
System.--
            [(1) In general.--The Secretary, in consultation with other 
        appropriate agencies, shall establish rules, guidelines, 
        policies, and operating and auditing procedures for collecting, 
        removing, and updating data maintained in, and adding 
        information to, the entry and exit data system, and databases 
        and data systems linked to the entry and exit data system, that 
        ensure the accuracy and integrity of the data.
            [(2) Requirements.--The rules, guidelines, policies, and 
        procedures established under paragraph (1) shall--
                    [(A) incorporate a simple and timely method for--
                            [(i) correcting errors; and
                            [(ii) clarifying information known to cause 
                        false hits or misidentification errors; and
                    [(B) include procedures for individuals to seek 
                corrections of data contained in the data systems.
    [(e) Expediting Registered Travelers Across International 
Borders.--
            [(1) Findings.--Consistent with the report of the National 
        Commission on Terrorist Attacks Upon the United States, 
        Congress finds that--
                    [(A) expediting the travel of previously screened 
                and known travelers across the borders of the United 
                States should be a high priority; and
                    [(B) the process of expediting known travelers 
                across the border can permit inspectors to better focus 
                on identifying terrorists attempting to enter the 
                United States.
            [(2) Definition.--The term ``registered traveler program'' 
        means any program designed to expedite the travel of previously 
        screened and known travelers across the borders of the United 
        States.
            [(3) Registered travel plan.--
                    [(A) In general.--As soon as is practicable, the 
                Secretary shall develop and implement a plan to 
                expedite the processing of registered travelers who 
                enter and exit the United States through a single 
                registered traveler program.
                    [(B) Integration.--The registered traveler program 
                developed under this paragraph shall be integrated into 
                the automated biometric entry and exit data system 
                described in this section.
                    [(C) Review and evaluation.--In developing the 
                program under this paragraph, the Secretary shall--
                            [(i) review existing programs or pilot 
                        projects designed to expedite the travel of 
                        registered travelers across the borders of the 
                        United States;
                            [(ii) evaluate the effectiveness of the 
                        programs described in clause (i), the costs 
                        associated with such programs, and the costs to 
                        travelers to join such programs; and
                            [(iii) increase research and development 
                        efforts to accelerate the development and 
                        implementation of a single registered traveler 
                        program.
            [(4) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Secretary shall submit to the 
        Congress a report describing the Department's progress on the 
        development and implementation of the plan required by this 
        subsection.
    [(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary, for each of the fiscal years 2005 
through 2009, such sums as may be necessary to carry out the provisions 
of this section.

[SEC. 3091. BIOMETRIC ENTRY-EXIT SCREENING SYSTEM.

    [(a) Integrated Biometric Entry-Exit Screening System.--With 
respect to the biometric entry/exit data system referred to in 
subsections (a) and (b), such systems shall--
            [(1) Ensure that the system's tracking capabilities 
        encompass data related to all immigration benefits processing, 
        including visa applications with the Department of State, 
        immigration related filings with the Department of Labor, cases 
        pending before the Executive Office for Immigration review, and 
        matters pending or under investigation before the Department of 
        Homeland Security.
            [(2) Utilize a biometric based identity number tied to an 
        applicant's biometric algorithm established under the entry/
        exit system to track all immigration related matters concerning 
        the applicant.
            [(3) Provide that all information about an applicant's 
        immigration related history, including entry/exit history, can 
        be queried through electronic means. Database access and usage 
        guidelines shall include stringent safeguards to prevent misuse 
        of data.
            [(4) Provide real time updates to the database described in 
        paragraph (3) including pertinent data from all agencies 
        referenced in paragraph (1).
            [(5) Limit access to the database described in paragraph 
        (4) (and any other database used for tracking immigration 
        related processing and/or entry/exit) to personnel explicitly 
        authorized to do so, and that any such access may be 
        ascertained by authorized persons by review of the person's 
        access authorization code or number.
            [(6) Provide continuing education in counterterrorism 
        techniques, tools, and methods for all Federal personnel 
        employed in the evaluation of immigration documents and 
        immigration-related policy.
    [(b) Entry-Exit System Goals.--The Department of Homeland Security 
shall continue to implement the system described in subsections (a) and 
(b), in such a way that it fulfills the following goals:
            [(1) Serves as a vital counterterrorism tool.
            [(2) Screens travelers efficiently and in a welcoming 
        manner.
            [(3) Provides inspectors and related personnel with 
        adequate real-time information.
            [(4) Ensures flexibility of training and security protocols 
        to most effectively comply with security mandates.
            [(5) Integrates relevant databases and plans for database 
        modifications to address volume increase and database usage.
            [(6) Improves database search capacities by utilizing 
        language algorithms to detect alternate names.
    [(c) Dedicated Specialists and Front Line Personnel Training.--In 
implementing the provisions of subsections (a), (b), and (c), the 
Department of Homeland Security and the Department of State shall--
            [(1) develop cross-training programs that focus on the 
        scope and procedures of the entry/exit system;
            [(2) provide extensive community outreach and education on 
        the entry/exit system procedures;
            [(3) provide clear and consistent eligibility guidelines 
        for applicants in low-risk traveler programs; and
            [(4) establish ongoing training modules on immigration law 
        to improve adjudications at our ports of entry, consulates, and 
        embassies.
    [(d) Information Accuracy Standards.--
            [(1) Any information placed in the entry/exit database 
        shall be entered by authorized officers in compliance with 
        established procedures, as set forth in section 407 of this 
        Act, that guarantee the identification of the person making the 
        database entry.
            [(2) The Secretary of Homeland Security, the Secretary of 
        State, and the Attorney General, after consultation with 
        directors of the relevant intelligence agencies, shall 
        standardize the information and data collected from foreign 
        nationals as well as the procedures utilized to collect such 
        data to ensure that the information is consistent and of value 
        to officials accessing that data across multiple agencies.
    [(e) Accessibility.--The Secretary of Homeland Security, the 
Secretary of State, the Attorney General, and the head of any other 
department or agency that possesses authority to enter data related to 
the immigration status of foreign nationals, including lawful permanent 
resident aliens, or where such information could serve to impede lawful 
admission of United States citizens to the United States, shall each 
establish guidelines related to data entry procedures. Such guidelines 
shall--
            [(1) strictly limit the agency personnel authorized to 
        enter data into the system;
            [(2) identify classes of information to be designated as 
        temporary or permanent entries, with corresponding expiration 
        dates for temporary entries; and
            [(3) identify classes of prejudicial information requiring 
        additional authority of supervisory personnel prior to entry.
    [(f) System Adaptability.--
            [(1) Each agency authorized to enter data related to the 
        immigration status of any persons identified in subsection (b) 
        above shall develop and implement system protocols to--
                    [(A) correct erroneous data entries in a timely and 
                effective manner;
                    [(B) clarify information known to cause false hits 
                or misidentification errors; and
                    [(C) update all relevant information that is 
                dispositive to the adjudicatory or admission process.
            [(2) The President or agency director so designated by the 
        President shall establish a clearinghouse bureau as part of the 
        Department of Homeland Security to centralize and streamline 
        the process through which members of the public can seek 
        corrections to erroneous or inaccurate information related to 
        immigration status, or which otherwise impedes lawful admission 
        to the United States contained in agency databases. Such 
        process shall include specific time schedules for reviewing 
        data correction requests, rendering decisions on such requests, 
        and implementing appropriate corrective action in a timely 
        manner.
    [(g) Training.--Agency personnel authorized to enter data pursuant 
to subsection (b)(1) shall undergo extensive training in immigration 
law and procedure.
    [(h) Implementation Audit.--The Secretary of the Department of 
Homeland Security shall issue a report to Congress within 6 months of 
enactment of this Act that details activities undertaken to date to 
develop an entry-exit system, areas in which the system currently does 
not achieve the mandates set forth by this section, and the funding, 
infrastructure, technology and other factors needed to complete the 
system, as well as a detailed time frame in which the completion of the 
system will be achieved.
    [(i) Reports.--
            [(1) The Secretaries of the Departments of State and 
        Homeland Security jointly shall report biannually to Congress 
        on: Current infrastructure and staffing at each port of entry 
        and each consular post, numbers of immigrant and nonimmigrant 
        visas issued, specify the numbers of individuals subject to 
        expedited removal at the ports of entry as well as within 100 
        miles of the United States border, the plan for enhanced 
        database review at entry, the number of suspected terrorists 
        and criminals intercepted utilizing the entry/exit system and 
        the moneys spent in the preceding fiscal year to achieve the 
        mandates of this section, areas in which they failed to achieve 
        these mandates, and the steps they are taking to address these 
        deficiencies. For ports of entry, similar information shall be 
        provided including the number of I-94s issued, immigrant visa 
        admissions made, and nonimmigrant admissions.
            [(2) No later than 120 days after enactment of this Act, 
        the Secretary of Homeland Security and the Secretary of State, 
        after consultation with the Director of the National Institute 
        of Standards and Technology and the Commission on Interoperable 
        Data Sharing, shall issue a report addressing the following 
        areas:
                    [(A) The status of agency compliance with the 
                mandates set forth in section 202 (``Interoperable Law 
                Enforcement and Intelligence Data System with Name-
                Matching Capacity and Training'') of the Enhanced 
                Border Security and Visa Entry Reform Act (Public Law 
                107-173).
                    [(B) The status of agency compliance with section 
                201(c)(3) (``Protections Regarding Information and Uses 
                Thereof'') of the Enhanced Border Security and Visa 
                Entry Reform Act (Public Law 107-173).
            [(3) No later than 1 year after enactment of this Act, the 
        Secretary of Homeland Security, the Secretary of State, the 
        Attorney General, and the head of any other department or 
        agency bound by the mandates in this Act, shall issue both 
        individual status reports and a joint status report detailing 
        compliance with each mandate contained in this section.
    [(j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

[SEC. 3092. ENHANCED RESPONSIBILITIES OF THE COORDINATOR FOR 
              COUNTERTERRORISM.

    [(a) Declaration of United States Policy.--Congress declares that 
it shall be the policy of the United States to--
            [(1) make combating terrorist travel and those who assist 
        them a priority for the United States counterterrorism policy; 
        and
            [(2) ensure that the information relating to individuals 
        who help facilitate terrorist travel by creating false 
        passports, visas, documents used to obtain such travel 
        documents, and other documents are fully shared within the 
        United States Government and, to the extent possible, with and 
        from foreign governments, in order to initiate United States 
        and foreign prosecutions of such individuals.
    [(b) Amendment.--Section 1(e)(2) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a(e)(2)) is amended by adding at 
the end the following:
                    [``(C) Additional duties relating to terrorist 
                travel.--In addition to the principal duties of the 
                Coordinator described in subparagraph (B), the 
                Coordinator shall analyze methods used by terrorists to 
                travel internationally, develop policies with respect 
                to curtailing terrorist travel, and coordinate such 
                policies with the appropriate bureaus and other 
                entities of the Department of State, other United 
                States Government agencies, the Human Trafficking and 
                Smuggling Center, and foreign governments.''.

[SEC. 3093. ESTABLISHMENT OF OFFICE OF VISA AND PASSPORT SECURITY IN 
              THE DEPARTMENT OF STATE.

    [(a) Establishment.--There is established within the Bureau of 
Diplomatic Security of the Department of State an Office of Visa and 
Passport Security (in this section referred to as the ``Office'').
    [(b) Head of Office.--
            [(1) In general.--Notwithstanding any other provision of 
        law, the head of the Office shall be an individual who shall 
        have the rank and status of Deputy Assistant Secretary of State 
        for Diplomatic Security (in this section referred to as the 
        ``Deputy Assistant Secretary'').
            [(2) Recruitment.--The Under Secretary of State for 
        Management shall chose the Deputy Assistant Secretary from 
        among individuals who are Diplomatic Security Agents.
            [(3) Qualifications.--The Diplomatic Security Agent chosen 
        to serve as the Deputy Assistant Secretary shall have expertise 
        and experience in investigating and prosecuting visa and 
        passport fraud.
    [(c) Duties.--
            [(1) Preparation of strategic plan.--
                    [(A) In general.--The Deputy Assistant Secretary, 
                in coordination with the appropriate officials of the 
                Department of Homeland Security, shall ensure the 
                preparation of a strategic plan to target and disrupt 
                individuals and organizations at home and in foreign 
                countries that are involved in the fraudulent 
                production, distribution, use, or other similar 
                activity--
                            [(i) of a United States visa or United 
                        States passport;
                            [(ii) of documents intended to help 
                        fraudulently procure a United States visa or 
                        United States passport, or other documents 
                        intended to gain unlawful entry into the United 
                        States; or
                            [(iii) of passports and visas issued by 
                        foreign countries intended to gain unlawful 
                        entry into the United States.
                    [(B) Emphasis.--Such plan shall--
                            [(i) focus particular emphasis on 
                        individuals and organizations that may have 
                        links to domestic terrorist organizations or 
                        foreign terrorist organizations (as such term 
                        is defined in Section 219 of the Immigration 
                        and Nationality Act (8 U.S.C. 1189));
                            [(ii) require the development of a 
                        strategic training course under the 
                        Antiterrorism Assistance Training (ATA) program 
                        of the Department of State (or any successor or 
                        related program) under chapter 8 of part II of 
                        the Foreign Assistance Act of 1961 (22 U.S.C. 
                        2349aa et seq.) (or other relevant provisions 
                        of law) to train participants in the 
                        identification of fraudulent documents and the 
                        forensic detection of such documents which may 
                        be used to obtain unlawful entry into the 
                        United States; and
                            [(iii) determine the benefits and costs of 
                        providing technical assistance to foreign 
                        governments to ensure the security of 
                        passports, visas, and related documents and to 
                        investigate, arrest, and prosecute individuals 
                        who facilitate travel by the creation of false 
                        passports and visas, documents to obtain such 
                        passports and visas, and other types of travel 
                        documents.
            [(2) Duties of office.--The Office shall have the following 
        duties:
                    [(A) Analysis of methods.--Analyze methods used by 
                terrorists to travel internationally, particularly the 
                use of false or altered travel documents to illegally 
                enter foreign countries and the United States, and 
                advise the Bureau of Consular Affairs on changes to the 
                visa issuance process that could combat such methods, 
                including the introduction of new technologies into 
                such process.
                    [(B) Identification of individuals and documents.--
                Identify, in cooperation with the Human Trafficking and 
                Smuggling Center, individuals who facilitate travel by 
                the creation of false passports and visas, documents 
                used to obtain such passports and visas, and other 
                types of travel documents, and ensure that the 
                appropriate agency is notified for further 
                investigation and prosecution or, in the case of such 
                individuals abroad for which no further investigation 
                or prosecution is initiated, ensure that all 
                appropriate information is shared with foreign 
                governments in order to facilitate investigation, 
                arrest, and prosecution of such individuals.
                    [(C) Identification of foreign countries needing 
                assistance.--Identify foreign countries that need 
                technical assistance, such as law reform, 
                administrative reform, prosecutorial training, or 
                assistance to police and other investigative services, 
                to ensure passport, visa, and related document security 
                and to investigate, arrest, and prosecute individuals 
                who facilitate travel by the creation of false 
                passports and visas, documents used to obtain such 
                passports and visas, and other types of travel 
                documents.
                    [(D) Inspection of applications.--Randomly inspect 
                visa and passport applications for accuracy, 
                efficiency, and fraud, especially at high terrorist 
                threat posts, in order to prevent a recurrence of the 
                issuance of visas to those who submit incomplete, 
                fraudulent, or otherwise irregular or incomplete 
                applications.
            [(3) Report.--Not later than 90 days after the date of the 
        enactment of this Act, the Deputy Assistant Secretary shall 
        submit to Congress a report containing--
                    [(A) a description of the strategic plan prepared 
                under paragraph (1); and
                    [(B) an evaluation of the feasibility of 
                establishing civil service positions in field offices 
                of the Bureau of Diplomatic Security to investigate 
                visa and passport fraud, including an evaluation of 
                whether to allow diplomatic security agents to convert 
                to civil service officers to fill such positions.

                     [Subtitle D--Terrorist Travel

[SEC. 3101. INFORMATION SHARING AND COORDINATION.

    [The Secretary of Homeland Security shall establish a mechanism 
to--
            [(1) ensure the coordination and dissemination of terrorist 
        travel intelligence and operational information among the 
        appropriate agencies within the Department of Homeland 
        Security, including the Bureau of Customs and Border 
        Protection, the Bureau of Immigration and Customs Enforcement, 
        the Bureau of Citizenship and Immigration Services, the 
        Transportation Security Administration, the Coast Guard, and 
        other agencies as directed by the Secretary; and
            [(2) ensure the sharing of terrorist travel intelligence 
        and operational information with the Department of State, the 
        National counterterrorism Center, and other appropriate Federal 
        agencies.

[SEC. 3102. TERRORIST TRAVEL PROGRAM.

    [The Secretary of Homeland Security shall establish a program to--
            [(1) analyze and utilize information and intelligence 
        regarding terrorist travel tactics, patterns, trends, and 
        practices; and
            [(2) disseminate that information to all front-line 
        Department of Homeland Security personnel who are at ports of 
        entry or between ports of entry, to immigration benefits 
        offices, and, in coordination with the Secretary of State, to 
        appropriate individuals at United States embassies and 
        consulates.

[SEC. 3103. TRAINING PROGRAM.

    [(a) Review, Evaluation, and Revision of Existing Training 
Programs.--The Secretary of Homeland Security shall--
            [(1) review and evaluate the training currently provided to 
        Department of Homeland Security personnel and, in consultation 
        with the Secretary of State, relevant Department of State 
        personnel with respect to travel and identity documents, and 
        techniques, patterns, and trends associated with terrorist 
        travel; and
            [(2) develop and implement a revised training program for 
        border, immigration, and consular officials in order to teach 
        such officials how to effectively detect, intercept, and 
        disrupt terrorist travel.
    [(b) Required Topics of Revised Programs.--The training program 
developed under subsection (a)(2) shall include training in the 
following areas:
            [(1) Methods for identifying fraudulent and genuine travel 
        documents.
            [(2) Methods for detecting terrorist indicators on travel 
        documents and other relevant identity documents.
            [(3) Recognizing travel patterns, tactics, and behaviors 
        exhibited by terrorists.
            [(4) Effectively utilizing information contained in 
        databases and data systems available to the Department of 
        Homeland Security.
            [(5) Other topics determined to be appropriate by the 
        Secretary of Homeland Security in consultation with the 
        Secretary of State or the National Intelligence Director.

[SEC. 3104. TECHNOLOGY ACQUISITION AND DISSEMINATION PLAN.

    [(a) Plan Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Homeland Security, in 
consultation with the Secretary of State, shall submit to the Congress 
a plan to ensure that the Department of Homeland Security and the 
Department of State acquire and deploy, to all consulates, ports of 
entry, and immigration benefits offices, technologies that facilitate 
document authentication and the detection of potential terrorist 
indicators on travel documents.
    [(b) Interoperability Requirement.--To the extent possible, 
technologies to be acquired and deployed under the plan shall be 
compatible with current systems used by the Department of Homeland 
Security to detect and identify fraudulent documents and genuine 
documents.
    [(c) Passport Screening.--The plan shall address the feasibility of 
using such technologies to screen passports submitted for 
identification purposes to a United States consular, border, or 
immigration official.

              [Subtitle E--Maritime Security Requirements

[SEC. 3111. DEADLINES FOR IMPLEMENTATION OF MARITIME SECURITY 
              REQUIREMENTS.

    [(a) National Maritime Transportation Security Plan.--Section 
70103(a) of the 46, United States Code, is amended by striking ``The 
Secretary'' and inserting ``Not later than December 31, 2004, the 
Secretary''.
    [(b) Facility and Vessel Vulnerability Assessments.--Section 
70102(b)(1) of the 46, United States Code, is amended by striking ``, 
the Secretary'' and inserting ``and by not later than December 31, 
2004, the Secretary''.
    [(c) Transportation Security Card Regulations.--Section 70105(a) of 
the 46, United States Code, is amended by striking ``The Secretary'' 
and inserting ``Not later than December 31, 2004, the Secretary''.

         [TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

         [Subtitle A--Attack Terrorists and Their Organizations

        [CHAPTER 1--PROVISIONS RELATING TO TERRORIST SANCTUARIES

[SEC. 4001. UNITED STATES POLICY ON TERRORIST SANCTUARIES.

    [It is the sense of Congress that it should be the policy of the 
United States--
            [(1) to identify and prioritize foreign countries that are 
        or that could be used as terrorist sanctuaries;
            [(2) to assess current United States resources being 
        provided to such foreign countries;
            [(3) to develop and implement a coordinated strategy to 
        prevent terrorists from using such foreign countries as 
        sanctuaries; and
            [(4) to work in bilateral and multilateral fora to prevent 
        foreign countries from being used as terrorist sanctuaries.

[SEC. 4002. REPORTS ON TERRORIST SANCTUARIES.

    [(a) Initial Report.--
            [(1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall transmit to 
        Congress a report that describes a strategy for addressing and, 
        where possible, eliminating terrorist sanctuaries.
            [(2) Content.--The report required under this subsection 
        shall include the following:
                    [(A) A list that prioritizes each actual and 
                potential terrorist sanctuary and a description of 
                activities in the actual and potential sanctuaries.
                    [(B) An outline of strategies for preventing the 
                use of, disrupting, or ending the use of such 
                sanctuaries.
                    [(C) A detailed description of efforts, including 
                an assessment of successes and setbacks, by the United 
                States to work with other countries in bilateral and 
                multilateral fora to address or eliminate each actual 
                or potential terrorist sanctuary and disrupt or 
                eliminate the security provided to terrorists by each 
                such sanctuary.
                    [(D) A description of long-term goals and actions 
                designed to reduce the conditions that allow the 
                formation of terrorist sanctuaries.
    [(b) Subsequent Reports.--
            [(1) Requirement of reports.--Section 140(a)(1) of the 
        Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 
        (22 U.S.C. 2656f(a)(1)) is amended--
                    [(A) by striking ``(1)'' and inserting ``(1)(A)'';
                    [(B) by redesignating subparagraphs (A) through (C) 
                as clauses (i) through (iii), respectively;
                    [(C) in subparagraph (A)(iii) (as redesignated), by 
                adding ``and'' at the end; and
                    [(D) by adding at the end the following:
            [``(B) detailed assessments with respect to each foreign 
        country whose territory is being used or could potentially be 
        used as a sanctuary for terrorists or terrorist 
        organizations;''.
            [(2) Provisions to be included in report.--Section 140(b) 
        of such Act (22 U.S.C. 2656f(b)) is amended--
                    [(A) in paragraph (1)--
                            [(i) in the matter preceding subparagraph 
                        (A), by striking ``subsection (a)(1)'' and 
                        inserting ``subsection (a)(1)(A)''; and
                            [(ii) by striking ``and'' at the end;
                    [(B) by redesignating paragraph (2) as paragraph 
                (3);
                    [(C) by inserting after paragraph (1) the 
                following:
            [``(2) with respect to subsection (a)(1)(B)--
                    [``(A) the extent of knowledge by the government of 
                the country with respect to terrorist activities in the 
                territory of the country; and
                    [``(B) the actions by the country--
                            [``(i) to eliminate each terrorist 
                        sanctuary in the territory of the country;
                            [``(ii) to cooperate with United States 
                        antiterrorism efforts; and
                            [``(iii) to prevent the proliferation of 
                        and trafficking in weapons of mass destruction 
                        in and through the territory of the country;'';
                    [(D) by striking the period at the end of paragraph 
                (3) (as redesignated) and inserting a semicolon; and
                    [(E) by inserting after paragraph (3) (as 
                redesignated) the following:
            [``(4) a strategy for addressing and, where possible, 
        eliminating terrorist sanctuaries that shall include--
                    [``(A) a description of actual and potential 
                terrorist sanctuaries, together with an assessment of 
                the priorities of addressing and eliminating such 
                sanctuaries;
                    [``(B) an outline of strategies for disrupting or 
                eliminating the security provided to terrorists by such 
                sanctuaries;
                    [``(C) a description of efforts by the United 
                States to work with other countries in bilateral and 
                multilateral fora to address or eliminate actual or 
                potential terrorist sanctuaries and disrupt or 
                eliminate the security provided to terrorists by such 
                sanctuaries; and
                    [``(D) a description of long-term goals and actions 
                designed to reduce the conditions that allow the 
                formation of terrorist sanctuaries;
            [``(5) an update of the information contained in the report 
        required to be transmitted to Congress pursuant to section 
        4002(a)(2) of the 9/11 Recommendations Implementation Act;
            [``(6) to the extent practicable, complete statistical 
        information on the number of individuals, including United 
        States citizens and dual nationals, killed, injured, or 
        kidnapped by each terrorist group during the preceding calendar 
        year; and
            [``(7) an analysis, as appropriate, relating to trends in 
        international terrorism, including changes in technology used, 
        methods and targets of attacks, demographic information on 
        terrorists, and other appropriate information.''.
            [(3) Definitions.--Section 140(d) of such Act (22 U.S.C. 
        2656f(d)) is amended--
                    [(A) in paragraph (2), by striking ``and'' at the 
                end;
                    [(B) in paragraph (3), by striking the period at 
                the end and inserting a semicolon; and
                    [(C) by adding at the end the following:
            [``(4) the term `territory' and `territory of the country' 
        means the land, waters, and airspace of the country; and
            [``(5) the term `terrorist sanctuary' or `sanctuary' means 
        an area in the territory of a country that is used by a 
        terrorist group with the express or implied consent of the 
        government of the country--
                    [``(A) to carry out terrorist activities, including 
                training, fundraising, financing, recruitment, and 
                education activities; or
                    [``(B) to provide transit through the country.''.
            [(4) Effective date.--The amendments made by paragraphs 
        (1), (2), and (3) apply with respect to the report required to 
        be transmitted under section 140 of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989, by April 30, 
        2006, and by April 30 of each subsequent year.

[SEC. 4003. AMENDMENTS TO EXISTING LAW TO INCLUDE TERRORIST 
              SANCTUARIES.

    [(a) Amendments.--Section 6(j) of the Export Administration Act of 
1979 (50 U.S.C. App. 2405(j)) is amended--
            [(1) in paragraph (1)--
                    [(A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    [(B) by inserting after subparagraph (A) the 
                following:
            [``(B) Any part of the territory of the country is being 
        used as a sanctuary for terrorists or terrorist 
        organizations.'';
            [(2) in paragraph (3), by striking ``paragraph (1)(A)'' and 
        inserting ``subparagraph (A) or (B) of paragraph (1)'';
            [(3) by redesignating paragraph (5) as paragraph (6);
            [(4) by inserting after paragraph (4) the following:
    [``(5) A determination made by the Secretary of State under 
paragraph (1)(B) may not be rescinded unless the President submits to 
the Speaker of the House of Representatives and the chairman of the 
Committee on Banking, Housing, and Urban Affairs and the chairman of 
the Committee on Foreign Relations of the Senate before the proposed 
rescission would take effect a report certifying that the government of 
the country concerned --
            [``(A) is taking concrete, verifiable steps to eliminate 
        each terrorist sanctuary in the territory of the country;
            [``(B) is cooperating with United States antiterrorism 
        efforts; and
            [``(C) is taking all appropriate actions to prevent the 
        proliferation of and trafficking in weapons of mass destruction 
        in and through the territory of the country.''; and
            [(5) by inserting after paragraph (6) (as redesignated) the 
        following:
    [``(7) In this subsection--
            [``(A) the term `territory of the country' means the land, 
        waters, and airspace of the country; and
            [``(B) the term `terrorist sanctuary' or `sanctuary' means 
        an area in the territory of a country that is used by a 
        terrorist group with the express or implied consent of the 
        government of the country--
                    [``(i) to carry out terrorist activities, including 
                training, fundraising, financing, recruitment, and 
                education activities; or
                    [``(ii) to provide transit through the country.''.
    [(b) Implementation.--The President shall implement the amendments 
made by subsection (a) by exercising the authorities the President has 
under the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.).

                      [CHAPTER 2--OTHER PROVISIONS

[SEC. 4011. APPOINTMENTS TO FILL VACANCIES IN ARMS CONTROL AND 
              NONPROLIFERATION ADVISORY BOARD.

    [(a) Requirement.--Not later than December 31, 2004, the Secretary 
of State shall appoint individuals to the Arms Control and 
Nonproliferation Advisory Board to fill all vacancies in the membership 
of the Board that exist on the date of the enactment of this Act.
    [(b) Consultation.--Appointments to the Board under subsection (a) 
shall be made in consultation with the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate.

[SEC. 4012. REVIEW OF UNITED STATES POLICY ON PROLIFERATION OF WEAPONS 
              OF MASS DESTRUCTION AND CONTROL OF STRATEGIC WEAPONS.

    [(a) Review.--
            [(1) In general.--The Undersecretary of State for Arms 
        Control and International Security shall instruct the Arms 
        Control and Nonproliferation Advisory Board (in this section 
        referred to as the ``Advisory Board'') to carry out a review of 
        existing policies of the United States relating to the 
        proliferation of weapons of mass destruction and the control of 
        strategic weapons.
            [(2) Components.--The review required under this subsection 
        shall contain at a minimum the following:
                    [(A) An identification of all major deficiencies in 
                existing United States policies relating to the 
                proliferation of weapons of mass destruction and the 
                control of strategic weapons.
                    [(B) Proposals that contain a range of options that 
                if implemented would adequately address any significant 
                threat deriving from the deficiencies in existing 
                United States policies described in subparagraph (A).
    [(b) Reports.--
            [(1) Interim report.--Not later than June 15, 2005, the 
        Advisory Board shall prepare and submit to the Undersecretary 
        of State for Arms Control and International Security an interim 
        report that contains the initial results of the review carried 
        out pursuant to subsection (a).
            [(2) Final report.--Not later than December 1, 2005, the 
        Advisory Board shall prepare and submit to the Undersecretary 
        of State for Arms Control and International Security, and to 
        the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate, a final report that contains the comprehensive results 
        of the review carried out pursuant to subsection (a).
    [(c) Experts and Consultants.--In carrying out this section, the 
Advisory Board may procure temporary and intermittent services of 
experts and consultants, including experts and consultants from 
nongovernmental organizations, under section 3109(b) of title 5, United 
States Code.
    [(d) Funding and Other Resources.--The Secretary of State shall 
provide to the Advisory Board an appropriate amount of funding and 
other resources to enable the Advisory Board to carry out this section.

[SEC. 4013. INTERNATIONAL AGREEMENTS TO INTERDICT ACTS OF INTERNATIONAL 
              TERRORISM.

    [Section 1(e)(2) of the State Department Basic Authorities Act of 
1956 (22 U.S.C. 2651a(e)(2)), as amended by section 3091(b), is further 
amended by adding at the end the following:
                    [``(D) Additional duties relating to international 
                agreements to interdict acts of international 
                terrorism.--
                            [``(i) In general.--In addition to the 
                        principal duties of the Coordinator described 
                        in subparagraph (B), the Coordinator, in 
                        consultation with relevant United States 
                        Government agencies, shall seek to negotiate on 
                        a bilateral basis international agreements 
                        under which parties to an agreement work in 
                        partnership to address and interdict acts of 
                        international terrorism.
                            [``(ii) Terms of international agreement.--
                        It is the sense of Congress that--
                                    [``(I) each party to an 
                                international agreement referred to in 
                                clause (i)--
                                            [``(aa) should be in full 
                                        compliance with United Nations 
                                        Security Council Resolution 
                                        1373 (September 28, 2001), 
                                        other appropriate international 
                                        agreements relating to 
                                        antiterrorism measures, and 
                                        such other appropriate criteria 
                                        relating to antiterrorism 
                                        measures;
                                            [``(bb) should sign and 
                                        adhere to a `counterterrorism 
                                        Pledge' and a list of 
                                        `Interdiction Principles', to 
                                        be determined by the parties to 
                                        the agreement;
                                            [``(cc) should identify 
                                        assets and agree to 
                                        multilateral efforts that 
                                        maximizes the country's 
                                        strengths and resources to 
                                        address and interdict acts of 
                                        international terrorism or the 
                                        financing of such acts;
                                            [``(dd) should agree to 
                                        joint training exercises among 
                                        the other parties to the 
                                        agreement; and
                                            [``(ee) should agree to the 
                                        negotiation and implementation 
                                        of other relevant international 
                                        agreements and consensus-based 
                                        international standards; and
                                    [``(II) an international agreement 
                                referred to in clause (i) should 
                                contain provisions that require the 
                                parties to the agreement--
                                            [``(aa) to identify regions 
                                        throughout the world that are 
                                        emerging terrorist threats;
                                            [``(bb) to establish 
                                        terrorism interdiction centers 
                                        in such regions and other 
                                        regions, as appropriate;
                                            [``(cc) to deploy terrorism 
                                        prevention teams to such 
                                        regions, including United 
                                        States-led teams; and
                                            [``(dd) to integrate 
                                        intelligence, military, and law 
                                        enforcement personnel from 
                                        countries that are parties to 
                                        the agreement in order to work 
                                        directly with the regional 
                                        centers described in item (bb) 
                                        and regional teams described in 
                                        item (cc).''.

[SEC. 4014. EFFECTIVE COALITION APPROACH TOWARD DETENTION AND HUMANE 
              TREATMENT OF CAPTURED TERRORISTS.

    [It is the sense of Congress that the President should pursue by 
all appropriate diplomatic means with countries that are participating 
in the Coalition to fight terrorism the development of an effective 
approach toward the detention and humane treatment of captured 
terrorists. The effective approach referred to in this section may, as 
appropriate, draw on Article 3 of the Convention Relative to the 
Treatment of Prisoners of War, done at Geneva on August 12, 1949 (6 UST 
3316).

[SEC. 4015. SENSE OF CONGRESS AND REPORT REGARDING COUNTER-DRUG EFFORTS 
              IN AFGHANISTAN.

    [(a) Sense of Congress.--It is the sense of Congress that--
            [(1) the President should make the substantial reduction of 
        illegal drug production and trafficking in Afghanistan a 
        priority in the Global War on Terrorism;
            [(2) the Secretary of Defense, in coordination with the 
        Secretary of State, Attorney General, and the heads of other 
        appropriate Federal agencies, should expand cooperation with 
        the Government of Afghanistan and international organizations 
        involved in counter-drug activities to assist in providing a 
        secure environment for counter-drug personnel in Afghanistan; 
        and
            [(3) the United States, in conjunction with the Government 
        of Afghanistan and coalition partners, should undertake 
        additional efforts to reduce illegal drug trafficking and 
        related activities that provide financial support for terrorist 
        organizations in Afghanistan and neighboring countries.
    [(b) Report Required.--(1) The Secretary of Defense and the 
Secretary of State shall jointly prepare a report that describes--
            [(A) the progress made towards substantially reducing poppy 
        cultivation and heroin production capabilities in Afghanistan; 
        and
            [(B) the extent to which profits from illegal drug activity 
        in Afghanistan are used to financially support terrorist 
        organizations and groups seeking to undermine the Government of 
        Afghanistan.
    [(2) The report required by this subsection shall be submitted to 
Congress not later than 120 days after the date of the enactment of 
this Act.

         [Subtitle B--Prevent the Continued Growth of Terrorism

               [CHAPTER 1--UNITED STATES PUBLIC DIPLOMACY

[SEC. 4021. ANNUAL REVIEW AND ASSESSMENT OF PUBLIC DIPLOMACY STRATEGY.

    [(a) In General.--The Secretary of State, in coordination with all 
appropriate Federal agencies, shall submit to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate an annual assessment of 
the impact of public diplomacy efforts on target audiences. Each 
assessment shall review the United States public diplomacy strategy 
worldwide and by region, including an examination of the allocation of 
resources and an evaluation and assessment of the progress in, and 
barriers to, achieving the goals set forth under previous plans 
submitted under this section. Not later than March 15 of every year, 
the Secretary shall submit the assessment required by this subsection.
    [(b) Further Action.-- On the basis of such review, the Secretary, 
in coordination with all appropriate Federal agencies, shall submit, as 
part of the annual budget submission, a public diplomacy strategy plan 
which specifies goals, agency responsibilities, and necessary resources 
and mechanisms for achieving such goals during the next fiscal year. 
The plan may be submitted in classified form.

[SEC. 4022. PUBLIC DIPLOMACY TRAINING.

    [(a) Statement of Policy.--It should be the policy of the United 
States:
            [(1) The Foreign Service should recruit individuals with 
        expertise and professional experience in public diplomacy.
            [(2) United States chiefs of mission should have a 
        prominent role in the formulation of public diplomacy 
        strategies for the countries and regions to which they are 
        assigned and should be accountable for the operation and 
        success of public diplomacy efforts at their posts.
            [(3) Initial and subsequent training of Foreign Service 
        officers should be enhanced to include information and training 
        on public diplomacy and the tools and technology of mass 
        communication.
    [(b) Personnel.--
            [(1) Qualifications.--In the recruitment, training, and 
        assignment of members of the Foreign Service, the Secretary of 
        State shall emphasize the importance of public diplomacy and 
        applicable skills and techniques. The Secretary shall consider 
        the priority recruitment into the Foreign Service, at middle-
        level entry, of individuals with expertise and professional 
        experience in public diplomacy, mass communications, or 
        journalism. The Secretary shall give special consideration to 
        individuals with language facility and experience in particular 
        countries and regions.
            [(2) Languages of special interest.--The Secretary of State 
        shall seek to increase the number of Foreign Service officers 
        proficient in languages spoken in predominantly Muslim 
        countries. Such increase shall be accomplished through the 
        recruitment of new officers and incentives for officers in 
        service.

[SEC. 4023. PROMOTING DIRECT EXCHANGES WITH MUSLIM COUNTRIES.

    [(a) Declaration of Policy.--Congress declares that the United 
States should commit to a long-term and sustainable investment in 
promoting engagement with people of all levels of society in countries 
with predominantly Muslim populations, particularly with youth and 
those who influence youth. Such an investment should make use of the 
talents and resources in the private sector and should include programs 
to increase the number of people who can be exposed to the United 
States and its fundamental ideas and values in order to dispel 
misconceptions. Such programs should include youth exchange programs, 
young ambassadors programs, international visitor programs, academic 
and cultural exchange programs, American Corner programs, library 
programs, journalist exchange programs, sister city programs, and other 
programs related to people-to-people diplomacy.
    [(b) Sense of Congress.--It is the sense of Congress that the 
United States should significantly increase its investment in the 
people-to-people programs described in subsection (a).

[SEC. 4024. PUBLIC DIPLOMACY REQUIRED FOR PROMOTION IN FOREIGN SERVICE.

    [(a) In General.--Section 603(b) of the Foreign Service Act of 1980 
(22 U.S.C. 4003(b)) is amended by adding at the end the following new 
sentences: ``The precepts for such selection boards shall also consider 
whether the member of the Service or the member of the Senior Foreign 
Service, as the case may be, has served in at least one position in 
which the primary responsibility of such member was related to public 
diplomacy. A member may not be promoted into or within the Senior 
Foreign Service if such member has not served in at least one such 
position.''.
    [(b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 2009.

            [CHAPTER 2--UNITED STATES MULTILATERAL DIPLOMACY

[SEC. 4031. PURPOSE.

    [It is the purpose of this chapter to strengthen United States 
leadership and effectiveness at international organizations and 
multilateral institutions.

[SEC. 4032. SUPPORT AND EXPANSION OF DEMOCRACY CAUCUS.

    [(a) In General.--The President, acting through the Secretary of 
State and the relevant United States chiefs of mission, shall--
            [(1) continue to strongly support and seek to expand the 
        work of the democracy caucus at the United Nations General 
        Assembly and the United Nations Human Rights Commission; and
            [(2) seek to establish a democracy caucus at the United 
        Nations Conference on Disarmament and at other broad-based 
        international organizations.
    [(b) Purposes of the Caucus.--A democracy caucus at an 
international organization should--
            [(1) forge common positions, including, as appropriate, at 
        the ministerial level, on matters of concern before the 
        organization and work within and across regional lines to 
        promote agreed positions;
            [(2) work to revise an increasingly outmoded system of 
        membership selection, regional voting, and decision making; and
            [(3) establish a rotational leadership agreement to provide 
        member countries an opportunity, for a set period of time, to 
        serve as the designated president of the caucus, responsible 
        for serving as its voice in each organization.

[SEC. 4033. LEADERSHIP AND MEMBERSHIP OF INTERNATIONAL ORGANIZATIONS.

    [(a) United States Policy.--The President, acting through the 
Secretary of State and the relevant United States chiefs of mission, 
shall use the voice, vote, and influence of the United States to--
            [(1) where appropriate, reform the criteria for leadership 
        and, in appropriate cases, for membership, at all United 
        Nations bodies and at other international organizations and 
        multilateral institutions to which the United States is a 
        member so as to exclude countries that violate the principles 
        of the specific organization;
            [(2) make it a policy of the United Nations and other 
        international organizations and multilateral institutions of 
        which the United States is a member that a member country may 
        not stand in nomination for membership or in nomination or in 
        rotation for a leadership position in such bodies if the member 
        country is subject to sanctions imposed by the United Nations 
        Security Council; and
            [(3) work to ensure that no member country stand in 
        nomination for membership, or in nomination or in rotation for 
        a leadership position in such organizations, or for membership 
        on the United Nations Security Council, if the member country 
        is subject to a determination under section 6(j)(1)(A) of the 
        Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j)(1)(A)), section 620A(a) of the Foreign Assistance Act 
        of 1961 (22 U.S.C. 2371(a)), or section 40(d) of the Arms 
        Export Control Act (22 U.S.C. 2780(d)).
    [(b) Report to Congress.--Not later than 15 days after a country 
subject to a determination under one or more of the provisions of law 
specified in subsection (a)(3) is selected for membership or a 
leadership post in an international organization of which the United 
States is a member or for membership on the United Nations Security 
Council, the Secretary of State shall submit to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate a report on any steps 
taken pursuant to subsection (a)(3).

[SEC. 4034. INCREASED TRAINING IN MULTILATERAL DIPLOMACY.

    [(a) Training Programs.--Section 708 of the Foreign Service Act of 
1980 (22 U.S.C. 4028) is amended by adding at the end the following new 
subsection:
    [``(c) Training in Multilateral Diplomacy.--
            [``(1) In general.--The Secretary shall establish a series 
        of training courses for officers of the Service, including 
        appropriate chiefs of mission, on the conduct of diplomacy at 
        international organizations and other multilateral institutions 
        and at broad-based multilateral negotiations of international 
        instruments.
            [``(2) Particular programs.--The Secretary shall ensure 
        that the training described in paragraph (1) is provided at 
        various stages of the career of members of the service. In 
        particular, the Secretary shall ensure that after January 1, 
        2006--
                    [``(A) officers of the Service receive training on 
                the conduct of diplomacy at international organizations 
                and other multilateral institutions and at broad-based 
                multilateral negotiations of international instruments 
                as part of their training upon entry into the Service; 
                and
                    [``(B) officers of the Service, including chiefs of 
                mission, who are assigned to United States missions 
                representing the United States to international 
                organizations and other multilateral institutions or 
                who are assigned in Washington, D.C., to positions that 
                have as their primary responsibility formulation of 
                policy towards such organizations and institutions or 
                towards participation in broad-based multilateral 
                negotiations of international instruments, receive 
                specialized training in the areas described in 
                paragraph (1) prior to beginning of service for such 
                assignment or, if receiving such training at that time 
                is not practical, within the first year of beginning 
                such assignment.''.
    [(b) Training for Civil Service Employees.--The Secretary shall 
ensure that employees of the Department of State who are members of the 
civil service and who are assigned to positions described in section 
708(c) of the Foreign Service Act of 1980 (as amended by subsection 
(a)) receive training described in such section.
    [(c) Conforming Amendments.--Section 708 of such Act is further 
amended--
            [(1) in subsection (a), by striking ``(a) The'' and 
        inserting ``(a) Training on Human Rights.--The''; and
            [(2) in subsection (b), by striking ``(b) The'' and 
        inserting ``(b) Training on Refugee Law and Religious 
        Persecution.--The''.

[SEC. 4035. IMPLEMENTATION AND ESTABLISHMENT OF OFFICE ON MULTILATERAL 
              NEGOTIATIONS.

    [(a) Establishment of Office.--The Secretary of State is authorized 
to establish, within the Bureau of International Organizational 
Affairs, an Office on Multilateral Negotiations to be headed by a 
Special Representative for Multilateral Negotiations (in this section 
referred to as the ``Special Representative'').
    [(b) Appointment.--The Special Representative shall be appointed by 
the President and shall have the rank of Ambassador-at-Large. At the 
discretion of the President another official at the Department may 
serve as the Special Representative.
    [(c) Staffing.--The Special Representative shall have a staff of 
Foreign Service and civil service officers skilled in multilateral 
diplomacy.
    [(d) Duties.--The Special Representative shall have the following 
responsibilities:
            [(1) In general.--The primary responsibility of the Special 
        Representative shall be to assist in the organization of, and 
        preparation for, United States participation in multilateral 
        negotiations, including advocacy efforts undertaken by the 
        Department of State and other United States Government 
        agencies.
            [(2) Consultations.--The Special Representative shall 
        consult with Congress, international organizations, 
        nongovernmental organizations, and the private sector on 
        matters affecting multilateral negotiations.
            [(3) Advisory role.--The Special Representative shall 
        advise the Assistant Secretary for International Organizational 
        Affairs and, as appropriate, the Secretary of State, regarding 
        advocacy at international organizations, multilateral 
        institutions, and negotiations, and shall make recommendations 
        regarding--
                    [(A) effective strategies (and tactics) to achieve 
                United States policy objectives at multilateral 
                negotiations;
                    [(B) the need for and timing of high level 
                intervention by the President, the Secretary of State, 
                the Deputy Secretary of State, and other United States 
                officials to secure support from key foreign government 
                officials for United States positions at such 
                organizations, institutions, and negotiations; and
                    [(C) the composition of United States delegations 
                to multilateral negotiations.
            [(4) Annual diplomatic missions of multilateral issues.--
        The Special Representative, in coordination with the Assistant 
        Secretary for International Organizational Affairs, shall 
        organize annual diplomatic missions to appropriate foreign 
        countries to conduct consultations between principal officers 
        responsible for advising the Secretary of State on 
        international organizations and high-level representatives of 
        the governments of such foreign countries to promote the United 
        States agenda at the United Nations General Assembly and other 
        key international fora (such as the United Nations Human Rights 
        Commission).
            [(5) Leadership and membership of international 
        organizations.--The Special Representative, in coordination 
        with the Assistant Secretary of International Organizational 
        Affairs, shall direct the efforts of the United States to 
        reform the criteria for leadership of and membership in 
        international organizations as described in section 4033.
            [(6) Participation in multilateral negotiations.--The 
        Secretary of State may direct the Special Representative to 
        serve as a member of a United States delegation to any 
        multilateral negotiation.

                      [CHAPTER 3--OTHER PROVISIONS

[SEC. 4041. PILOT PROGRAM TO PROVIDE GRANTS TO AMERICAN-SPONSORED 
              SCHOOLS IN PREDOMINANTLY MUSLIM COUNTRIES TO PROVIDE 
              SCHOLARSHIPS.

    [(a) Findings.--Congress finds the following:
            [(1) During the 2003-2004 school year, the Office of 
        Overseas Schools of the Department of State is financially 
        assisting 189 elementary and secondary schools in foreign 
        countries.
            [(2) American-sponsored elementary and secondary schools 
        are located in more than 20 countries with significant Muslim 
        populations in the Near East, Africa, South Asia, Central Asia, 
        and East Asia.
            [(3) American-sponsored elementary and secondary schools 
        provide an American-style education in English, with curricula 
        that typically include an emphasis on the development of 
        critical thinking and analytical skills.
    [(b) Purpose.--The United States has an interest in increasing the 
level of financial support provided to American-sponsored elementary 
and secondary schools in predominantly Muslim countries, in order to--
            [(1) increase the number of students in such countries who 
        attend such schools;
            [(2) increase the number of young people who may thereby 
        gain at any early age an appreciation for the culture, society, 
        and history of the United States; and
            [(3) increase the number of young people who may thereby 
        improve their proficiency in the English language.
    [(c) Pilot Program Authorized.--The Secretary of State, acting 
through the Director of the Office of Overseas Schools of the 
Department of State, may conduct a pilot program to make grants to 
American-sponsored elementary and secondary schools in predominantly 
Muslim countries for the purpose of providing full or partial merit-
based scholarships to students from lower- and middle-income families 
of such countries to attend such schools.
    [(d) Determination of Eligible Students.--For purposes of expending 
grant funds, an American-sponsored elementary and secondary school that 
receives a grant under subsection (c) is authorized to establish 
criteria to be implemented by such school to determine what constitutes 
lower- and middle-income families in the country (or region of the 
country, if regional variations in income levels in the country are 
significant) in which such school is located.
    [(e) Restriction on Use of Funds.--Amounts appropriated to the 
Secretary of State pursuant to the authorization of appropriations in 
subsection (h) shall be used for the sole purpose of making grants 
under this section, and may not be used for the administration of the 
Office of Overseas Schools of the Department of State or for any other 
activity of the Office.
    [(f) Voluntary Participation.--Nothing in this section shall be 
construed to require participation in the pilot program by an American-
sponsored elementary or secondary school in a predominantly Muslim 
country.
    [(g) Report.--Not later than April 15, 2006, the Secretary shall 
submit to the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
report on the pilot program. The report shall assess the success of the 
program, examine any obstacles encountered in its implementation, and 
address whether it should be continued, and if so, provide 
recommendations to increase its effectiveness.
    [(h) Funding.--There are authorized to be appropriated to the 
Secretary of State such sums as may be necessary for each of fiscal 
years 2005, 2006, and 2007 to carry out this section.

[SEC. 4042. ENHANCING FREE AND INDEPENDENT MEDIA.

    [(a) Findings.--Congress makes the following findings:
            [(1) Freedom of speech and freedom of the press are 
        fundamental human rights.
            [(2) The United States has a national interest in promoting 
        these freedoms by supporting free media abroad, which is 
        essential to the development of free and democratic societies 
        consistent with our own.
            [(3) Free media is undermined, endangered, or nonexistent 
        in many repressive and transitional societies around the world, 
        including in Eurasia, Africa, and the Middle East.
            [(4) Individuals lacking access to a plurality of free 
        media are vulnerable to misinformation and propaganda and are 
        potentially more likely to adopt anti-American views.
            [(5) Foreign governments have a responsibility to actively 
        and publicly discourage and rebut unprofessional and unethical 
        media while respecting journalistic integrity and editorial 
        independence.
    [(b) Statements of Policy.--It shall be the policy of the United 
States, acting through the Secretary of State, to--
            [(1) ensure that the promotion of press freedoms and free 
        media worldwide is a priority of United States foreign policy 
        and an integral component of United States public diplomacy;
            [(2) respect the journalistic integrity and editorial 
        independence of free media worldwide; and
            [(3) ensure that widely accepted standards for professional 
        and ethical journalistic and editorial practices are employed 
        when assessing international media.
    [(c) Grants to Private Sector Group to Establish Media Network.--
            [(1) In general.--Grants made available to the National 
        Endowment for Democracy (NED) pursuant to paragraph (3) shall 
        be used by NED to provide funding to a private sector group to 
        establish and manage a free and independent media network in 
        accordance with paragraph (2).
            [(2) Purpose.--The purpose of the network shall be to 
        provide an effective forum to convene a broad range of 
        individuals, organizations, and governmental participants 
        involved in journalistic activities and the development of free 
        and independent media to--
                    [(A) fund a clearinghouse to collect and share 
                information concerning international media development 
                and training;
                    [(B) improve research in the field of media 
                assistance and program evaluation to better inform 
                decisions regarding funding and program design for 
                government and private donors;
                    [(C) explore the most appropriate use of existing 
                means to more effectively encourage the involvement of 
                the private sector in the field of media assistance; 
                and
                    [(D) identify effective methods for the development 
                of a free and independent media in societies in 
                transition.
            [(3) Funding.--For grants made by the Department of State 
        to NED as authorized by the National Endowment for Democracy 
        Act (Public Law 98-164, 97 Stat. 1039), there are authorized to 
        be appropriated to the Secretary of State such sums as may be 
        necessary for each of fiscal years 2005, 2006, and 2007 to 
        carry out this section.

[SEC. 4043. COMBATING BIASED OR FALSE FOREIGN MEDIA COVERAGE OF THE 
              UNITED STATES.

    [(a) Findings.--Congress finds the following:
            [(1) Biased or false media coverage of the United States 
        and its allies is a significant factor encouraging terrorist 
        acts against the people of the United States.
            [(2) Public diplomacy efforts designed to encourage an 
        accurate understanding of the people of the United States and 
        the policies of the United States are unlikely to succeed if 
        foreign publics are subjected to unrelenting biased or false 
        local media coverage of the United States.
            [(3) Where freedom of the press exists in foreign countries 
        the United States can combat biased or false media coverage by 
        responding in the foreign media or by communicating directly to 
        foreign publics in such countries.
            [(4) Foreign governments which encourage biased or false 
        media coverage of the United States bear a significant degree 
        of responsibility for creating a climate within which terrorism 
        can flourish. Such governments are responsible for encouraging 
        biased or false media coverage if they--
                    [(A) issue direct or indirect instructions to the 
                media to publish biased or false information regarding 
                the United States;
                    [(B) make deliberately biased or false charges 
                expecting that such charges will be disseminated; or
                    [(C) so severely constrain the ability of the media 
                to express criticism of any such government that one of 
                the few means of political expression available is 
                criticism of the United States.
    [(b) Statements of Policy.--
            [(1) Foreign governments.--It shall be the policy of the 
        United States to regard foreign governments as knowingly 
        engaged in unfriendly acts toward the United States if such 
        governments--
                    [(A) instruct their state-owned or influenced media 
                to include content that is anti-American or prejudicial 
                to the foreign and security policies of the United 
                States; or
                    [(B) make deliberately false charges regarding the 
                United States or permit false or biased charges against 
                the United States to be made while constraining normal 
                political discourse.
            [(2) Seeking media access; responding to false charges.--It 
        shall be the policy of the United States to--
                    [(A) seek access to the media in foreign countries 
                on terms no less favorable than those afforded any 
                other foreign entity or on terms available to the 
                foreign country in the United States; and
                    [(B) combat biased or false media coverage in 
                foreign countries of the United States and its allies 
                by responding in the foreign media or by communicating 
                directly to foreign publics.
    [(c) Responsibilities Regarding Biased or False Media Coverage.--
            [(1) Secretary of state.--The Secretary of State shall 
        instruct chiefs of mission to report on and combat biased or 
        false media coverage originating in or received in foreign 
        countries to which such chiefs are posted. Based on such 
        reports and other information available to the Secretary, the 
        Secretary shall prioritize efforts to combat such media 
        coverage, giving special attention to audiences where fostering 
        popular opposition to terrorism is most important and such 
        media coverage is most prevalent.
            [(2) Chiefs of mission.--Chiefs of mission shall have the 
        following responsibilities:
                    [(A) Chiefs of mission shall give strong priority 
                to combatting biased or false media reports in foreign 
                countries to which such chiefs are posted regarding the 
                United States.
                    [(B) Chiefs of mission posted to foreign countries 
                in which freedom of the press exists shall inform the 
                governments of such countries of the policies of the 
                United States regarding biased or false media coverage 
                of the United States, and shall make strong efforts to 
                persuade such governments to change policies that 
                encourage such media coverage.
    [(d) Reports.--Not later than 120 days after the date of the 
enactment of this Act and at least annually thereafter until January 1, 
2015, the Secretary shall submit to the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate a report regarding the major themes of biased 
or false media coverage of the United States in foreign countries, the 
actions taken to persuade foreign governments to change policies that 
encourage such media coverage (and the results of such actions), and 
any other actions taken to combat such media coverage in foreign 
countries.

[SEC. 4044. REPORT ON BROADCAST OUTREACH STRATEGY.

    [(a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the President shall transmit to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate a report on the strategy 
of the United States to expand its outreach to foreign Muslim audiences 
through broadcast media.
    [(b) Content.--The report required under subsection (a) shall 
contain the following:
            [(1) An assessment of the Broadcasting Board of Governors 
        and the public diplomacy activities of the Department of State 
        with respect to outreach to foreign Muslim audiences through 
        broadcast media.
            [(2) An outline of recommended actions that the United 
        States should take to more regularly and comprehensively 
        present a United States point of view through indigenous 
        broadcast media in countries with sizeable Muslim populations, 
        including increasing appearances by United States Government 
        officials, experts, and citizens.
            [(3) An assessment of potential incentives for, and costs 
        associated with, encouraging United States broadcasters to dub 
        or subtitle into Arabic and other relevant languages their news 
        and public affairs programs broadcast in Muslim countries in 
        order to present those programs to a much broader Muslim 
        audience than is currently reached.
            [(4) An assessment of providing a training program in media 
        and press affairs for members of the Foreign Service.

[SEC. 4045. OFFICE RELOCATION.

    [As soon as practicable after the date of the enactment of this 
Act, the Secretary of State shall take such actions as are necessary to 
consolidate within the Harry S. Truman Building all offices of the 
Department of State that are responsible for the conduct of public 
diplomacy, including the Bureau of Educational and Cultural Affairs.

[SEC. 4046. STRENGTHENING THE COMMUNITY OF DEMOCRACIES FOR MUSLIM 
              COUNTRIES.

    [(a) Sense of Congress.--It is the sense of Congress that the 
United States--
            [(1) should work with the Community of Democracies to 
        discuss, develop, and refine policies and assistance programs 
        to support and promote political, economic, judicial, 
        educational, and social reforms in Muslim countries;
            [(2) should, as part of that effort, secure support to 
        require countries seeking membership in the Community of 
        Democracies to be in full compliance with the Community's 
        criteria for participation, as established by the Community's 
        Convening Group, should work to ensure that the criteria are 
        part of a legally binding document, and should urge other donor 
        countries to use compliance with the criteria as a basis for 
        determining diplomatic and economic relations (including 
        assistance programs) with such participating countries; and
            [(3) should seek support for international contributions to 
        the Community of Democracies and should seek authority for the 
        Community's Convening Group to oversee adherence and compliance 
        of participating countries with the criteria.
    [(b) Middle East Partnership Initiative and Broader Middle East and 
North Africa Initiative.--Amounts made available to carry out the 
Middle East Partnership Initiative and the Broader Middle East and 
North Africa Initiative may be made available to the Community of 
Democracies in order to strengthen and expand its work with Muslim 
countries.
    [(c) Report.--The Secretary of State shall include in the annual 
report entitled ``Supporting Human Rights and Democracy: The U.S. 
Record'' a description of efforts by the Community of Democracies to 
support and promote political, economic, judicial, educational, and 
social reforms in Muslim countries and the extent to which such 
countries meet the criteria for participation in the Community of 
Democracies.

 [Subtitle C--Reform of Designation of Foreign Terrorist Organizations

[SEC. 4051. DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.

    [(a) Period of Designation.--Section 219(a)(4) of the Immigration 
and Nationality Act (8 U.S.C. 1189(a)(4)) is amended--
            [(1) in subparagraph (A)--
                    [(A) by striking ``Subject to paragraphs (5) and 
                (6), a'' and inserting ``A''; and
                    [(B) by striking ``for a period of 2 years 
                beginning on the effective date of the designation 
                under paragraph (2)(B)'' and inserting ``until revoked 
                under paragraph (5) or (6) or set aside pursuant to 
                subsection (c)'';
            [(2) by striking subparagraph (B) and inserting the 
        following:
                    [``(B) Review of designation upon petition.--
                            [``(i) In general.--The Secretary shall 
                        review the designation of a foreign terrorist 
                        organization under the procedures set forth in 
                        clauses (iii) and (iv) if the designated 
                        organization files a petition for revocation 
                        within the petition period described in clause 
                        (ii).
                            [``(ii) Petition period.--For purposes of 
                        clause (i)--
                                    [``(I) if the designated 
                                organization has not previously filed a 
                                petition for revocation under this 
                                subparagraph, the petition period 
                                begins 2 years after the date on which 
                                the designation was made; or
                                    [``(II) if the designated 
                                organization has previously filed a 
                                petition for revocation under this 
                                subparagraph, the petition period 
                                begins 2 years after the date of the 
                                determination made under clause (iv) on 
                                that petition.
                            [``(iii) Procedures.--Any foreign terrorist 
                        organization that submits a petition for 
                        revocation under this subparagraph must provide 
                        evidence in that petition that the relevant 
                        circumstances described in paragraph (1) have 
                        changed in such a manner as to warrant 
                        revocation with respect to the organization.
                            [``(iv) Determination.--
                                    [``(I) In general.--Not later than 
                                180 days after receiving a petition for 
                                revocation submitted under this 
                                subparagraph, the Secretary shall make 
                                a determination as to such revocation.
                                    [``(II) Classified information.--
                                The Secretary may consider classified 
                                information in making a determination 
                                in response to a petition for 
                                revocation. Classified information 
                                shall not be subject to disclosure for 
                                such time as it remains classified, 
                                except that such information may be 
                                disclosed to a court ex parte and in 
                                camera for purposes of judicial review 
                                under subsection (c).
                                    [``(III) Publication of 
                                determination.--A determination made by 
                                the Secretary under this clause shall 
                                be published in the Federal Register.
                                    [``(IV) Procedures.--Any revocation 
                                by the Secretary shall be made in 
                                accordance with paragraph (6).''; and
            [(3) by adding at the end the following:
                    [``(C) Other review of designation.--
                            [``(i) In general.--If in a 6-year period 
                        no review has taken place under subparagraph 
                        (B), the Secretary shall review the designation 
                        of the foreign terrorist organization in order 
                        to determine whether such designation should be 
                        revoked pursuant to paragraph (6).
                            [``(ii) Procedures.--If a review does not 
                        take place pursuant to subparagraph (B) in 
                        response to a petition for revocation that is 
                        filed in accordance with that subparagraph, 
                        then the review shall be conducted pursuant to 
                        procedures established by the Secretary. The 
                        results of such review and the applicable 
                        procedures shall not be reviewable in any 
                        court.
                            [``(iii) Publication of results of 
                        review.--The Secretary shall publish any 
                        determination made pursuant to this 
                        subparagraph in the Federal Register.''.
    [(b) Aliases.--Section 219 of the Immigration and Nationality Act 
(8 U.S.C. 1189) is amended--
            [(1) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
            [(2) by inserting after subsection (a) the following new 
        subsection (b):
    [``(b) Amendments to a Designation.--
            [``(1) In general.--The Secretary may amend a designation 
        under this subsection if the Secretary finds that the 
        organization has changed its name, adopted a new alias, 
        dissolved and then reconstituted itself under a different name 
        or names, or merged with another organization.
            [``(2) Procedure.--Amendments made to a designation in 
        accordance with paragraph (1) shall be effective upon 
        publication in the Federal Register. Subparagraphs (B) and (C) 
        of subsection (a)(2) shall apply to an amended designation upon 
        such publication. Paragraphs (2)(A)(i), (4), (5), (6), (7), and 
        (8) of subsection (a) shall also apply to an amended 
        designation.
            [``(3) Administrative record.--The administrative record 
        shall be corrected to include the amendments as well as any 
        additional relevant information that supports those amendments.
            [``(4) Classified information.--The Secretary may consider 
        classified information in amending a designation in accordance 
        with this subsection. Classified information shall not be 
        subject to disclosure for such time as it remains classified, 
        except that such information may be disclosed to a court ex 
        parte and in camera for purposes of judicial review under 
        subsection (c).''.
    [(c) Technical and Conforming Amendments.--Section 219 of the 
Immigration and Nationality Act (8 U.S.C. 1189) is amended--
            [(1) in subsection (a)--
                    [(A) in paragraph (3)(B), by striking ``subsection 
                (b)'' and inserting ``subsection (c)'';
                    [(B) in paragraph (6)(A)--
                            [(i) in the matter preceding clause (i), by 
                        striking ``or a redesignation made under 
                        paragraph (4)(B)'' and inserting ``at any time, 
                        and shall revoke a designation upon completion 
                        of a review conducted pursuant to subparagraphs 
                        (B) and (C) of paragraph (4)''; and
                            [(ii) in clause (i), by striking ``or 
                        redesignation'';
                    [(C) in paragraph (7), by striking ``, or the 
                revocation of a redesignation under paragraph (6),''; 
                and
                    [(D) in paragraph (8)--
                            [(i) by striking ``, or if a redesignation 
                        under this subsection has become effective 
                        under paragraph (4)(B),''; and
                            [(ii) by striking ``or redesignation''; and
            [(2) in subsection (c), as so redesignated--
                    [(A) in paragraph (1), by striking ``of the 
                designation in the Federal Register,'' and all that 
                follows through ``review of the designation'' and 
                inserting ``in the Federal Register of a designation, 
                an amended designation, or a determination in response 
                to a petition for revocation, the designated 
                organization may seek judicial review'';
                    [(B) in paragraph (2), by inserting ``, amended 
                designation, or determination in response to a petition 
                for revocation'' after ``designation'';
                    [(C) in paragraph (3), by inserting ``, amended 
                designation, or determination in response to a petition 
                for revocation'' after ``designation''; and
                    [(D) in paragraph (4), by inserting ``, amended 
                designation, or determination in response to a petition 
                for revocation'' after ``designation'' each place that 
                term appears.
    [(d) Savings Provision.--For purposes of applying section 219 of 
the Immigration and Nationality Act on or after the date of enactment 
of this Act, the term ``designation'', as used in that section, 
includes all redesignations made pursuant to section 219(a)(4)(B) of 
the Immigration and Nationality Act (8 U.S.C. 1189(a)(4)(B)) prior to 
the date of enactment of this Act, and such redesignations shall 
continue to be effective until revoked as provided in paragraph (5) or 
(6) of section 219(a) of the Immigration and Nationality Act (8 U.S.C. 
1189(a)).

[SEC. 4052. INCLUSION IN ANNUAL DEPARTMENT OF STATE COUNTRY REPORTS ON 
              TERRORISM OF INFORMATION ON TERRORIST GROUPS THAT SEEK 
              WEAPONS OF MASS DESTRUCTION AND GROUPS THAT HAVE BEEN 
              DESIGNATED AS FOREIGN TERRORIST ORGANIZATIONS.

    [(a) Inclusion in Reports.--Section 140 of the Foreign Relations 
Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f) is 
amended--
            [(1) in subsection (a)(2)--
                    [(A) by inserting ``any terrorist group known to 
                have obtained or developed, or to have attempted to 
                obtain or develop, weapons of mass destruction,'' after 
                ``during the preceding five years,''; and
                    [(B) by inserting ``any group designated by the 
                Secretary as a foreign terrorist organization under 
                section 219 of the Immigration and Nationality Act (8 
                U.S.C. 1189),'' after ``Export Administration Act of 
                1979,'';
            [(2) in subsection (b)(1)(C)(iii), by striking ``and'' at 
        the end;
            [(3) in subsection (b)(1)(C)--
                    [(A) by redesignating clause (iv) as clause (v); 
                and
                    [(B) by inserting after clause (iii) the following 
                new clause:
                            [``(iv) providing weapons of mass 
                        destruction, or assistance in obtaining or 
                        developing such weapons, to terrorists or 
                        terrorist groups; and''; and
            [(4) in subsection (b)(3) (as redesignated by section 
        4002(b)(2)(B) of this Act)--
                    [(A) by redesignating subparagraphs (C), (D), and 
                (E) as (D), (E), and (F), respectively; and
                    [(B) by inserting after subparagraph (B) the 
                following new subparagraph:
                    [``(C) efforts by those groups to obtain or develop 
                weapons of mass destruction;''.
    [(b) Effective Date.--The amendments made by subsection (a) shall 
apply beginning with the first report under section 140 of the Foreign 
Relations Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
2656f), submitted more than one year after the date of the enactment of 
this Act.

    [Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

[SEC. 4061. SHORT TITLE.

    [This subtitle may be cited as the ``Afghanistan Freedom Support 
Act Amendments of 2004''.

[SEC. 4062. COORDINATION OF ASSISTANCE FOR AFGHANISTAN.

    [(a) Findings.--Congress finds that--
            [(1) the Final Report of the National Commission on 
        Terrorist Attacks Upon the United States criticized the 
        provision of United States assistance to Afghanistan for being 
        too inflexible; and
            [(2) the Afghanistan Freedom Support Act of 2002 (Public 
        Law 107-327; 22 U.S.C. 7501 et seq.) contains provisions that 
        provide for flexibility in the provision of assistance for 
        Afghanistan and are not subject to the requirements of typical 
        foreign assistance programs and provide for the designation of 
        a coordinator to oversee United States assistance for 
        Afghanistan.
    [(b) Designation of Coordinator.--Section 104(a) of the Afghanistan 
Freedom Support Act of 2002 (22 U.S.C. 7514(a)) is amended in the 
matter preceding paragraph (1) by striking ``is strongly urged to'' and 
inserting ``shall''.
    [(c) Other Matters.--Section 104 of such Act (22 U.S.C. 7514) is 
amended by adding at the end the following:
    [``(c) Program Plan.--The coordinator designated under subsection 
(a) shall annually submit to the Committees on International Relations 
and Appropriations of the House of Representatives and the Committees 
on Foreign Relations and Appropriations of the Senate the 
Administration's plan for assistance to Afghanistan together with a 
description of such assistance in prior years.
    [``(d) Coordination With International Community.--The coordinator 
designated under subsection (a) shall work with the international 
community, including multilateral organizations and international 
financial institutions, and the Government of Afghanistan to ensure 
that assistance to Afghanistan is implemented in a coherent, 
consistent, and efficient manner to prevent duplication and waste.''.

[SEC. 4063. GENERAL PROVISIONS RELATING TO THE AFGHANISTAN FREEDOM 
              SUPPORT ACT OF 2002.

    [(a) Assistance to Promote Economic, Political and Social 
Development.--
            [(1) Declaration of policy.--Congress reaffirms the 
        authorities contained in title I of the Afghanistan Freedom 
        Support Act of 2002 (22 U.S.C. 7501 et seq.; relating to 
        economic and democratic development assistance for 
        Afghanistan).
            [(2) Provision of assistance.--Section 103(a) of such Act 
        (22 U.S.C. 7513(a)) is amended in the matter preceding 
        paragraph (1) by striking ``section 512 of Public Law 107-115 
        or any other similar'' and inserting ``any other''.
    [(b) Declarations of Policy.--Congress makes the following 
declarations:
            [(1) The United States reaffirms the support that it and 
        other countries expressed for the report entitled ``Securing 
        Afghanistan's Future'' in their Berlin Declaration of April 
        2004. The United States should help enable the growth needed to 
        create an economically sustainable Afghanistan capable of the 
        poverty reduction and social development foreseen in the 
        report.
            [(2) The United States supports the parliamentary elections 
        to be held in Afghanistan by April 2005 and will help ensure 
        that such elections are not undermined by warlords or narcotics 
        traffickers.
            [(3)(A) The United States continues to urge North Atlantic 
        Treaty Organization members and other friendly countries to 
        make much greater military contributions toward securing the 
        peace in Afghanistan.
            [(B) The United States should continue to lead in the 
        security domain by, among other things, providing logistical 
        support to facilitate those contributions.
            [(C) In coordination with the Government of Afghanistan, 
        the United States should urge others, and act itself, to 
        increase efforts to promote disarmament, demobilization, and 
        reintegration efforts, to enhance counternarcotics activities, 
        to expand deployments of Provincial Reconstruction Teams, and 
        to increase training of Afghanistan's National Army and its 
        police and border security forces.
    [(c) Long-Term Strategy.--
            [(1) Strategy.--Title III of such Act (22 U.S.C. 7551 et 
        seq.) is amended by adding at the end the following:

[``SEC. 304 FORMULATION OF LONG-TERM STRATEGY FOR AFGHANISTAN.

    [``(a) Strategy.--
            [``(1) In general.--Not later than 180 days after the date 
        of the enactment of the Afghanistan Freedom Support Act 
        Amendments of 2004, the President shall formulate and transmit 
        to the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate a 5-year strategy for Afghanistan that includes specific 
        and measurable goals, timeframes for accomplishing such goals, 
        and specific resource levels necessary for accomplishing such 
        goals for addressing the long-term development and security 
        needs of Afghanistan, including sectors such as agriculture and 
        irrigation, parliamentary and democratic development, the 
        judicial system and rule of law, human rights, education, 
        health, telecommunications, electricity, women's rights, 
        counternarcotics, police, border security, anti-corruption, and 
        other law-enforcement activities.
            [``(2) Additional requirement.--The strategy shall also 
        delineate responsibilities for achieving such goals and 
        identify and address possible external factors that could 
        significantly affect the achievement of such goals.
    [``(b) Implementation.--Not later than 30 days after the date of 
the transmission of the strategy required by subsection (a), the 
Secretary of State, the Administrator of the United States Agency for 
International Development, and the Secretary of Defense shall submit to 
the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
written 5-year action plan to implement the strategy developed pursuant 
to subsection (a). Such action plan shall include a description and 
schedule of the program evaluations that will monitor progress toward 
achieving the goals described in subsection (a).
    [``(c) Review.--The Secretary of State, the Administrator of the 
United States Agency for International Development, and the Secretary 
of Defense shall carry out an annual review of the strategy required by 
subsection (a) and the action plan required by subsection (b).
    [``(d) Monitoring.--The report required by section 206(c)(2) of 
this Act shall include--
            [``(1) a description of progress toward implementation of 
        both the strategy required by subsection (a) and the action 
        plan required by subsection (b); and
            [``(2) a description of any changes to the strategy or 
        action plan since the date of the submission of the last report 
        required by such section.''.
            [(2) Clerical amendment.--The table of contents for such 
        Act (22 U.S.C. 7501 note) is amended by adding after the item 
        relating to section 303 the following:

[``Sec. 304. Formulation of long-term strategy for Afghanistan.''.

[SEC. 4064. RULE OF LAW AND RELATED ISSUES.

    [Section 103(a)(5)(A) of the Afghanistan Freedom Support Act of 
2002 (22 U.S.C. 7513(a)(5)(A)) is amended--
            [(1) in clause (v), to read as follows:
                            [``(v) support for the activities of the 
                        Government of Afghanistan to develop modern 
                        legal codes and court rules, to provide for the 
                        creation of legal assistance programs, and 
                        other initiatives to promote the rule of law in 
                        Afghanistan;'';
            [(2) in clause (xii), to read as follows:
                            [``(xii) support for the effective 
                        administration of justice at the national, 
                        regional, and local levels, including programs 
                        to improve penal institutions and the 
                        rehabilitation of prisoners, to establish a 
                        responsible and community-based police force, 
                        and to rehabilitate or construct courthouses 
                        and detention facilities;''; and
            [(3) in clause (xiii), by striking ``and'' at the end;
            [(4) in clause (xiv), by striking the period at the end and 
        inserting ``; and''; and
            [(5) by adding at the end the following:
                            [``(xv) assistance for the protection of 
                        Afghanistan's culture, history, and national 
                        identity, including with the rehabilitation of 
                        Afghanistan's museums and sites of cultural 
                        significance.''.

[SEC. 4065. MONITORING OF ASSISTANCE.

    [Section 108 of the Afghanistan Freedom Support Act of 2002 (22 
U.S.C. 7518) is amended by adding at the end the following:
    [``(c) Monitoring of Assistance for Afghanistan.--
            [``(1) Report.--Not later than January 15, 2005, and every 
        six months thereafter, the Secretary of State, in consultation 
        with the Administrator for the United States Agency for 
        International Development, shall submit to the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate a report on the 
        obligations and expenditures of United States assistance for 
        Afghanistan from all United States Government agencies.
            [``(2) Submission of information for report.--The head of 
        each United States Government agency referred to in paragraph 
        (1) shall provide on a timely basis to the Secretary of State 
        such information as the Secretary may reasonably require to 
        allow the Secretary to prepare and submit the report required 
        by such paragraph.''.

[SEC. 4066. UNITED STATES POLICY TO SUPPORT DISARMAMENT OF PRIVATE 
              MILITIAS AND TO SUPPORT EXPANSION OF INTERNATIONAL 
              PEACEKEEPING AND SECURITY OPERATIONS IN AFGHANISTAN.

    [(a) Disarmament of Private Militias.--Section 103 of the 
Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7513) is amended by 
adding at the end the following:
    [``(d) United States Policy Relating to Disarmament of Private 
Militias.--
            [``(1) In general.--It shall be the policy of the United 
        States to take immediate steps to provide active support for 
        the disarmament, demobilization, and reintegration of armed 
        soldiers, particularly child soldiers, in Afghanistan, in close 
        consultation with the President of Afghanistan.
            [``(2) Report.--The report required by section 206(c)(2) of 
        this Act shall include a description of the progress to 
        implement paragraph (1).''.
    [(b) International Peacekeeping and Security Operations.--Section 
103 of such Act (22 U.S.C. 7513(d)), as amended by subsection (a), is 
further amended by adding at the end the following:
    [``(e) United States Policy Relating to International Peacekeeping 
and Security Operations.--It shall be the policy of the United States 
to make every effort to support the expansion of international 
peacekeeping and security operations in Afghanistan in order to--
            [``(1) increase the area in which security is provided and 
        undertake vital tasks related to promoting security, such as 
        disarming warlords, militias, and irregulars, and disrupting 
        opium production; and
            [``(2) safeguard highways in order to allow the free flow 
        of commerce and to allow material assistance to the people of 
        Afghanistan, and aid personnel in Afghanistan, to move more 
        freely.''.

[SEC. 4067. EFFORTS TO EXPAND INTERNATIONAL PEACEKEEPING AND SECURITY 
              OPERATIONS IN AFGHANISTAN.

    [Section 206(d)(1) of the Afghanistan Freedom Support Act of 2002 
(22 U.S.C. 7536(d)(1)) is amended to read as follows:
            [``(1) Efforts to expand international peacekeeping and 
        security operations in afghanistan.--
                    [``(A) Efforts.--The President shall encourage, 
                and, as authorized by law, enable other countries to 
                actively participate in expanded international 
                peacekeeping and security operations in Afghanistan, 
                especially through the provision of military personnel 
                for extended periods of time.
                    [``(B) Reports.--The President shall prepare and 
                transmit to the Committee on International Relations of 
                the House of Representatives and the Committee on 
                Foreign Relations of the Senate a report on efforts 
                carried out pursuant to subparagraph (A). The first 
                report under this subparagraph shall be transmitted not 
                later than 60 days after the date of the enactment of 
                the Afghanistan Freedom Support Act Amendments of 2004 
                and subsequent reports shall be transmitted every six 
                months thereafter and may be included in the report 
                required by section 206(c)(2) of this Act.''.

[SEC. 4068. PROVISIONS RELATING TO COUNTERNARCOTICS EFFORTS IN 
              AFGHANISTAN.

    [(a) counternarcotics Efforts.--The Afghanistan Freedom Support Act 
of 2002 (22 U.S.C. 7501 et seq.) is amended--
            [(1) by redesignating--
                    [(A) title III as title IV; and
                    [(B) sections 301 through 304 as sections 401 
                through 404, respectively; and
            [(2) by inserting after title II the following:

   [``TITLE III--PROVISIONS RELATING TO counternarcotics EFFORTS IN 
                              AFGHANISTAN

[``SEC. 301. ASSISTANCE FOR COUNTERNARCOTICS EFFORTS.

    [``In addition to programs established pursuant to section 
103(a)(3) of this Act or other similar programs, the President is 
authorized and encouraged to implement specific initiatives to assist 
in the eradication of poppy cultivation and the disruption of heroin 
production in Afghanistan, such as--
            [``(1) promoting alternatives to poppy cultivation, 
        including the introduction of high value crops that are 
        suitable for export and the provision of appropriate technical 
        assistance and credit mechanisms for farmers;
            [``(2) enhancing the ability of farmers to bring legitimate 
        agricultural goods to market;
            [``(3) notwithstanding section 660 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2420), assistance, including 
        nonlethal equipment, training (including training in 
        internationally recognized standards of human rights, the rule 
        of law, anti-corruption, and the promotion of civilian police 
        roles that support democracy), and payments, during fiscal 
        years 2006 through 2008, for salaries for special 
        counternarcotics police and supporting units;
            [``(4) training the Afghan National Army in 
        counternarcotics activities; and
            [``(5) creating special counternarcotics courts, 
        prosecutors, and places of incarceration.''.
    [(b) Clerical Amendments.--The table of contents for such Act (22 
U.S.C. 7501 note) is amended--
            [(1) by redesignating--
                    [(A) the item relating to title III as the item 
                relating to title IV; and
                    [(B) the items relating to sections 301 through 304 
                as the items relating to sections 401 through 404; and
            [(2) by inserting after the items relating to title II the 
        following:

   [``TITLE III--PROVISIONS RELATING TO counternarcotics EFFORTS IN 
                              AFGHANISTAN

[``Sec. 301. Assistance for counternarcotics efforts.''.

[SEC. 4069. ADDITIONAL AMENDMENTS TO THE AFGHANISTAN FREEDOM SUPPORT 
              ACT OF 2002.

    [(a) Technical Amendment.--Section 103(a)(7)(A)(xii) of the 
Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7513(a)(7)(A)(xii)) 
is amended by striking ``National'' and inserting ``Afghan 
Independent''.
    [(b) Reporting Requirement.--Section 206(c)(2) of such Act (22 
U.S.C. 7536(c)(2)) is amended in the matter preceding subparagraph (A) 
by striking ``2007'' and inserting ``2012''.

[SEC. 4070. REPEAL.

    [Section 620D of the Foreign Assistance Act of 1961 (22 U.S.C. 
2374; relating to prohibition on assistance to Afghanistan) is hereby 
repealed.

     [Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

[SEC. 4081. NEW UNITED STATES STRATEGY FOR RELATIONSHIP WITH SAUDI 
              ARABIA.

    [(a) Sense of Congress.--It is the sense of Congress that the 
relationship between the United States and Saudi Arabia should include 
a more robust dialogue between the people and Government of the United 
States and the people and Government of Saudi Arabia in order to 
provide for a reevaluation of, and improvements to, the relationship by 
both sides.
    [(b) Report.--
            [(1) In general.-- Not later than one year after the date 
        of the enactment of this Act, the President shall transmit to 
        the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate a strategy for collaboration with the people and 
        Government of Saudi Arabia on subjects of mutual interest and 
        importance to the United States.
            [(2) Contents.--The strategy required under paragraph (1) 
        shall include the following provisions:
                    [(A) A framework for security cooperation in the 
                fight against terrorism, with special reference to 
                combating terrorist financing and an examination of the 
                origins of modern terrorism.
                    [(B) A framework for political and economic reform 
                in Saudi Arabia and throughout the Middle East.
                    [(C) An examination of steps that should be taken 
                to reverse the trend toward extremism in Saudi Arabia 
                and other Muslim countries and throughout the Middle 
                East.
                    [(D) A framework for promoting greater tolerance 
                and respect for cultural and religious diversity in 
                Saudi Arabia and throughout the Middle East.

[SEC. 4082. UNITED STATES COMMITMENT TO THE FUTURE OF PAKISTAN.

    [(a) Sense of Congress.--It is the sense of Congress that the 
United States should, over a long-term period, help to ensure a 
promising, stable, and secure future for Pakistan, and should in 
particular provide assistance to encourage and enable Pakistan--
            [(1) to continue and improve upon its commitment to 
        combating extremists;
            [(2) to seek to resolve any outstanding difficulties with 
        its neighbors and other countries in its region;
            [(3) to continue to make efforts to fully control its 
        territory and borders;
            [(4) to progress towards becoming a more effective and 
        participatory democracy;
            [(5) to participate more vigorously in the global 
        marketplace and to continue to modernize its economy;
            [(6) to take all necessary steps to halt the spread of 
        weapons of mass destruction;
            [(7) to continue to reform its education system; and
            [(8) to, in other ways, implement a general strategy of 
        moderation.
    [(b) Strategy.--Not later than 180 days after the date of the 
enactment of this Act, the President shall transmit to Congress a 
detailed proposed strategy for the future, long-term, engagement of the 
United States with Pakistan.

[SEC. 4083. EXTENSION OF PAKISTAN WAIVERS.

    [ The Act entitled ``An Act to authorize the President to exercise 
waivers of foreign assistance restrictions with respect to Pakistan 
through September 30, 2003, and for other purposes'', approved October 
27, 2001 (Public Law 107-57; 115 Stat. 403), as amended by section 2213 
of the Emergency Supplemental Appropriations Act for Defense and for 
the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 
117 Stat. 1232), is further amended--
            [(1) in section 1(b)--
                    [(A) in the heading, by striking ``Fiscal Year 
                2004'' and inserting ``Fiscal Years 2005 and 2006''; 
                and
                    [(B) in paragraph (1), by striking ``2004'' and 
                inserting ``2005 or 2006'';
            [(2) in section 3(2), by striking ``and 2004,'' and 
        inserting ``2004, 2005, and 2006''; and
            [(3) in section 6, by striking ``2004'' and inserting 
        ``2006''.

                   [Subtitle F--Oversight Provisions

[SEC. 4091. CASE-ZABLOCKI ACT REQUIREMENTS.

    [(a) Availability of Treaties and International Agreements.--
Section 112a of title 1, United States Code, is amended by adding at 
the end the following:
    [``(d) The Secretary of State shall cause to be published in slip 
form or otherwise made publicly available through the Internet website 
of the Department of State each treaty or international agreement 
proposed to be published in the compilation entitled `United States 
Treaties and Other International Agreements' not later than 180 days 
after the date on which the treaty or agreement enters into force.''.
    [(b) Transmission to Congress.--Section 112b(a) of title 1, United 
States Code (commonly referred to as the ``Case-Zablocki Act''), is 
amended--
            [(1) in the first sentence, by striking ``has entered into 
        force'' and inserting ``has been signed or entered into 
        force''; and
            [(2) in the second sentence, by striking ``Committee on 
        Foreign Affairs'' and inserting ``Committee on International 
        Relations''.
    [(c) Report.--Section 112b of title 1, United States Code, is 
amended--
            [(1) by redesignating subsections (d) and (e) as 
        subsections (e) and (f), respectively; and
            [(2) by inserting after subsection (c) the following:
    [``(d)(1) The Secretary of State shall submit to Congress on an 
annual basis a report that contains an index of all international 
agreements (including oral agreements), listed by country, date, title, 
and summary of each such agreement (including a description of the 
duration of activities under the agreement and the agreement itself), 
that the United States--
            [``(A) has signed, proclaimed, or with reference to which 
        any other final formality has been executed, or that has been 
        extended or otherwise modified, during the preceding calendar 
        year; and
            [``(B) has not been published, or is not proposed to be 
        published, in the compilation entitled `United States Treaties 
        and Other International Agreements'.
    [``(2) The report described in paragraph (1) may be submitted in 
classified form.''.
    [(d) Determination of International Agreement.--Subsection (e) of 
section 112b of title 1, United States Code, (as redesignated) is 
amended--
            [(1) by striking ``(e) The Secretary of State'' and 
        inserting ``(e)(1) Subject to paragraph (2), the Secretary of 
        State''; and
            [(2) by adding at the end the following:
    [``(2)(A) An arrangement shall constitute an international 
agreement within the meaning of this section (other than subsection (c) 
of this section) irrespective of the duration of activities under the 
arrangement or the arrangement itself.
    [``(B) Arrangements that constitute an international agreement 
within the meaning of this section (other than subsection (c) of this 
section) include, but are not limited to, the following:
            [``(i) A bilateral or multilateral counterterrorism 
        agreement.
            [``(ii) A bilateral agreement with a country that is 
        subject to a determination under section 6(j)(1)(A) of the 
        Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j)(1)(A)), section 620A(a) of the Foreign Assistance Act 
        of 1961 (22 U.S.C. 2371(a)), or section 40(d) of the Arms 
        Export Control Act (22 U.S.C. 2780(d)).''.
    [(e) Enforcement of Requirements.--Section 139(b) of the Foreign 
Relations Authorization Act, Fiscal Years 1988 and 1989 is amended to 
read as follows:
    [``(b) Effective Date.--Subsection (a) shall take effect 60 days 
after the date of the enactment of the 9/11 Recommendations 
Implementation Act and shall apply during fiscal years 2005, 2006, and 
2007.''.

 [Subtitle G--Additional Protections of United States Aviation System 
                         from Terrorist Attacks

[SEC. 4101. INTERNATIONAL AGREEMENTS TO ALLOW MAXIMUM DEPLOYMENT OF 
              FEDERAL FLIGHT DECK OFFICERS.

    [The President is encouraged to pursue aggressively international 
agreements with foreign governments to allow the maximum deployment of 
Federal air marshals and Federal flight deck officers on international 
flights.

[SEC. 4102. FEDERAL AIR MARSHAL TRAINING.

    [Section 44917 of title 49, United States Code, is amended by 
adding at the end the following:
    [``(d) Training for Foreign Law Enforcement Personnel.--
            [``(1) In general.--The Assistant Secretary for Immigration 
        and Customs Enforcement of the Department of Homeland Security, 
        after consultation with the Secretary of State, may direct the 
        Federal Air Marshal Service to provide appropriate air marshal 
        training to law enforcement personnel of foreign countries.
            [``(2) Watchlist screening.--The Federal Air Marshal 
        Service may only provide appropriate air marshal training to 
        law enforcement personnel of foreign countries after comparing 
        the identifying information and records of law enforcement 
        personnel of foreign countries against appropriate records in 
        the consolidated and integrated terrorist watchlists of the 
        Federal Government.
            [``(3) Fees.--The Assistant Secretary shall establish 
        reasonable fees and charges to pay expenses incurred in 
        carrying out this subsection. Funds collected under this 
        subsection shall be credited to the account in the Treasury 
        from which the expenses were incurred and shall be available to 
        the Assistant Secretary for purposes for which amounts in such 
        account are available.''.

[SEC. 4103. MAN-PORTABLE AIR DEFENSE SYSTEMS (MANPADS).

    [(a) United States Policy on Nonproliferation and Export Control.--
            [(1) To limit availability and transfer of manpads.--The 
        President shall pursue, on an urgent basis, further strong 
        international diplomatic and cooperative efforts, including 
        bilateral and multilateral treaties, in the appropriate forum 
        to limit the availability, transfer, and proliferation of 
        MANPADSs worldwide.
            [(2) To limit the proliferation of manpads.--The President 
        is encouraged to seek to enter into agreements with the 
        governments of foreign countries that, at a minimum, would--
                    [(A) prohibit the entry into force of a MANPADS 
                manufacturing license agreement and MANPADS co-
                production agreement, other than the entry into force 
                of a manufacturing license or co-production agreement 
                with a country that is party to such an agreement;
                    [(B) prohibit, except pursuant to transfers between 
                governments, the export of a MANPADS, including any 
                component, part, accessory, or attachment thereof, 
                without an individual validated license; and
                    [(C) prohibit the reexport or retransfer of a 
                MANPADS, including any component, part, accessory, or 
                attachment thereof, to a third person, organization, or 
                government unless the written consent of the government 
                that approved the original export or transfer is first 
                obtained.
            [(3) To achieve destruction of manpads.--The President 
        should continue to pursue further strong international 
        diplomatic and cooperative efforts, including bilateral and 
        multilateral treaties, in the appropriate forum to assure the 
        destruction of excess, obsolete, and illicit stocks of MANPADSs 
        worldwide.
            [(4) Reporting and briefing requirement.--
                    [(A) President's report.--Not later than 180 days 
                after the date of enactment of this Act, the President 
                shall transmit to the appropriate congressional 
                committees a report that contains a detailed 
                description of the status of diplomatic efforts under 
                paragraphs (1), (2), and (3) and of efforts by the 
                appropriate United States agencies to comply with the 
                recommendations of the General Accounting Office set 
                forth in its report GAO-04-519, entitled 
                ``Nonproliferation: Further Improvements Needed in U.S. 
                Efforts to Counter Threats from Man-Portable Air 
                Defense Systems''.
                    [(B) Annual briefings.--Annually after the date of 
                submission of the report under subparagraph (A) and 
                until completion of the diplomatic and compliance 
                efforts referred to in subparagraph (A), the Secretary 
                of State shall brief the appropriate congressional 
                committees on the status of such efforts.
    [(b) FAA Airworthiness Certification of Missile Defense Systems for 
Commercial Aircraft.--
            [(1) In general.--As soon as practicable, but not later 
        than the date of completion of Phase II of the Department of 
        Homeland Security's counter-man-portable air defense system 
        (MANPADS) development and demonstration program, the 
        Administrator of the Federal Aviation Administration shall 
        establish a process for conducting airworthiness and safety 
        certification of missile defense systems for commercial 
        aircraft certified as effective and functional by the 
        Department of Homeland Security. The process shall require a 
        certification by the Administrator that such systems can be 
        safely integrated into aircraft systems and ensure 
        airworthiness and aircraft system integrity.
            [(2) Certification acceptance.--Under the process, the 
        Administrator shall accept the certification of the Department 
        of Homeland Security that a missile defense system is effective 
        and functional to defend commercial aircraft against MANPADSs.
            [(3) Expeditious certification.--Under the process, the 
        Administrator shall expedite the airworthiness and safety 
        certification of missile defense systems for commercial 
        aircraft certified by the Department of Homeland Security.
            [(4) Reports.--Not later than 90 days after the first 
        airworthiness and safety certification for a missile defense 
        system for commercial aircraft is issued by the Administrator, 
        and annually thereafter until December 31, 2008, the Federal 
        Aviation Administration shall transmit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report that contains a detailed 
        description of each airworthiness and safety certification 
        issued for a missile defense system for commercial aircraft.
    [(c) Programs to Reduce MANPADS.--
            [(1) In general.--The President is encouraged to pursue 
        strong programs to reduce the number of MANPADSs worldwide so 
        that fewer MANPADSs will be available for trade, proliferation, 
        and sale.
            [(2) Reporting and briefing requirements.--Not later than 
        180 days after the date of enactment of this Act, the President 
        shall transmit to the appropriate congressional committees a 
        report that contains a detailed description of the status of 
        the programs being pursued under subsection (a). Annually 
        thereafter until the programs are no longer needed, the 
        Secretary of State shall brief the appropriate congressional 
        committees on the status of programs.
            [(3) Funding.--There are authorized to be appropriated such 
        sums as may be necessary to carry out this section.
    [(d) MANPADS Vulnerability Assessments Report.--
            [(1) In general.--Not later than one year after the date of 
        enactment of this Act, the Secretary of Homeland Security shall 
        transmit to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report describing 
        the Department of Homeland Security's plans to secure airports 
        and the aircraft arriving and departing from airports against 
        MANPADSs attacks.
            [(2) Matters to be addressed.--The Secretary's report shall 
        address, at a minimum, the following:
                    [(A) The status of the Department's efforts to 
                conduct MANPADSs vulnerability assessments at United 
                States airports at which the Department is conducting 
                assessments.
                    [(B) How intelligence is shared between the United 
                States intelligence agencies and Federal, State, and 
                local law enforcement to address the MANPADS threat and 
                potential ways to improve such intelligence sharing.
                    [(C) Contingency plans that the Department has 
                developed in the event that it receives intelligence 
                indicating a high threat of a MANPADS attack on 
                aircraft at or near United States airports.
                    [(D) The feasibility and effectiveness of 
                implementing public education and neighborhood watch 
                programs in areas surrounding United States airports in 
                cases in which intelligence reports indicate there is a 
                high risk of MANPADS attacks on aircraft.
                    [(E) Any other issues that the Secretary deems 
                relevant.
            [(3) Format.--The report required by this subsection may be 
        submitted in a classified format.
    [(e) Definitions.--In this section, the following definitions 
apply:
            [(1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    [(A) the Committee on Armed Services, the Committee 
                on International Relations, and the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives; and
                    [(B) the Committee on Armed Services, the Committee 
                on Foreign Relations, and the Committee on Commerce, 
                Science, and Transportation of the Senate.
            [(2) MANPADS.--The term ``MANPADS'' means--
                    [(A) a surface-to-air missile system designed to be 
                man-portable and carried and fired by a single 
                individual; and
                    [(B) any other surface-to-air missile system 
                designed to be operated and fired by more than one 
                individual acting as a crew and portable by several 
                individuals.

[Subtitle H--Improving International Standards and Cooperation to Fight 
                          Terrorist Financing

[SEC. 4111. SENSE OF THE CONGRESS REGARDING SUCCESS IN MULTILATERAL 
              ORGANIZATIONS.

    [(a) Commendation.--The Congress commends the Secretary of the 
Treasury for success and leadership in establishing international 
standards for fighting terrorist finance through multilateral 
organizations, including the Financial Action Task Force (FATF) at the 
Organization for Economic Cooperation and Development, the 
International Monetary Fund, the International Bank for Reconstruction 
and Development, and the regional multilateral development banks.
    [(b) Policy Guidance.--The Congress encourages the Secretary of the 
Treasury to direct the United States Executive Director at each 
international financial institution to use the voice and vote of the 
United States to urge the institution, and encourages the Secretary of 
the Treasury to use the voice and vote of the United States in other 
multilateral financial policymaking bodies, to--
            [(1) provide funding for the implementation of FATF anti-
        money laundering and anti-terrorist financing standards; and
            [(2) promote economic development in the Middle East.

[SEC. 4112. EXPANDED REPORTING REQUIREMENT FOR THE SECRETARY OF THE 
              TREASURY.

    [(a) In General.--Section 1701(b) of the International Financial 
Institutions Act (22 U.S.C. 262r(b)) is amended--
            [(1) by striking ``and'' at the end of paragraph (10); and
            [(2) by redesignating paragraph (11) as paragraph (12) and 
        inserting after paragraph (10) the following:
            [``(11) an assessment of--
                    [``(A) the progress made by the International 
                Terrorist Finance Coordinating Council in developing 
                policies to be pursued with the international financial 
                institutions and other multilateral financial 
                policymaking bodies regarding anti-terrorist financing 
                initiatives;
                    [``(B) the progress made by the United States in 
                negotiations with the international financial 
                institutions and other multilateral financial 
                policymaking bodies to set common anti-terrorist 
                financing standards;
                    [``(C) the extent to which the international 
                financial institutions and other multilateral financial 
                policymaking bodies have adopted anti-terrorist 
                financing standards advocated by the United States; and
                    [``(D) whether and how the international financial 
                institutions are contributing to the fight against the 
                financing of terrorist activities; and''.
    [(b) Other Multilateral Policymaking Bodies Defined.--Section 
1701(c) of such Act (22 U.S.C. 262r(c)) is amended by adding at the end 
the following:
            [``(5) Other multilateral financial policymaking bodies.--
        The term `other multilateral financial policymaking bodies' 
        means--
                    [``(A) the Financial Action Task Force at the 
                Organization for Economic Cooperation and Development;
                    [``(B) the international network of financial 
                intelligence units known as the `Egmont Group';
                    [``(C) the United States, Canada, the United 
                Kingdom, France, Germany, Italy, Japan, and Russia, 
                when meeting as the Group of Eight; and
                    [``(D) any other multilateral financial 
                policymaking group in which the Secretary of the 
                Treasury represents the United States.''.

[SEC. 4113. INTERNATIONAL TERRORIST FINANCE COORDINATING COUNCIL.

    [(a) Establishment.--The Secretary of the Treasury shall establish 
and convene an interagency council, to be known as the ``International 
Terrorist Finance Coordinating Council'' (in this section referred to 
as the ``Council''), which shall advise the Secretary on policies to be 
pursued by the United States at meetings of the international financial 
institutions and other multilateral financial policymaking bodies, 
regarding the development of international anti-terrorist financing 
standards.
    [(b) Meetings.--
            [(1) Attendees.--
                    [(A) General attendees.--The Secretary of the 
                Treasury (or a representative of the Secretary of the 
                Treasury) and the Secretary of State (or a 
                representative of the Secretary of State) shall attend 
                each Council meeting.
                    [(B) Other attendees.--The Secretary of the 
                Treasury shall determine which other officers of the 
                Federal Government shall attend a Council meeting, on 
                the basis of the issues to be raised for consideration 
                at the meeting. The Secretary shall include in the 
                meeting representatives from all relevant Federal 
                agencies with authority to address the issues.
            [(2) Schedule.--Not less frequently than annually, the 
        Secretary of the Treasury shall convene Council meetings at 
        such times as the Secretary deems appropriate, based on the 
        notice, schedule, and agenda items of the international 
        financial institutions and other multilateral financial 
        policymaking bodies.

[SEC. 4114. DEFINITIONS.

    [In this subtitle:
            [(1) International financial institutions.--The term 
        ``international financial institutions'' has the meaning given 
        in section 1701(c)(2) of the International Financial 
        Institutions Act.
            [(2) Other multilateral financial policymaking bodies.--The 
        term ``other multilateral financial policymaking bodies'' 
        means--
                    [(A) the Financial Action Task Force at the 
                Organization for Economic Cooperation and Development;
                    [(B) the international network of financial 
                intelligence units known as the ``Egmont Group'';
                    [(C) the United States, Canada, the United Kingdom, 
                France, Germany, Italy, Japan, and Russia, when meeting 
                as the Group of Eight; and
                    [(D) any other multilateral financial policymaking 
                group in which the Secretary of the Treasury represents 
                the United States.

                   [TITLE V--GOVERNMENT RESTRUCTURING

      [Subtitle A--Faster and Smarter Funding for First Responders

[SEC. 5001. SHORT TITLE.

    [This subtitle may be cited as the ``Faster and Smarter Funding for 
First Responders Act of 2004''.

[SEC. 5002. FINDINGS.

    [The Congress finds the following:
            [(1) In order to achieve its objective of minimizing the 
        damage, and assisting in the recovery, from terrorist attacks, 
        the Department of Homeland Security must play a leading role in 
        assisting communities to reach the level of preparedness they 
        need to respond to a terrorist attack.
            [(2) First responder funding is not reaching the men and 
        women of our Nation's first response teams quickly enough, and 
        sometimes not at all.
            [(3) To reform the current bureaucratic process so that 
        homeland security dollars reach the first responders who need 
        it most, it is necessary to clarify and consolidate the 
        authority and procedures of the Department of Homeland Security 
        that support first responders.
            [(4) Ensuring adequate resources for the new national 
        mission of homeland security, without degrading the ability to 
        address effectively other types of major disasters and 
        emergencies, requires a discrete and separate grant making 
        process for homeland security funds for first response to 
        terrorist acts, on the one hand, and for first responder 
        programs designed to meet pre-September 11 priorities, on the 
        other.
            [(5) While a discrete homeland security grant making 
        process is necessary to ensure proper focus on the unique 
        aspects of terrorism prevention, preparedness, and response, it 
        is essential that State and local strategies for utilizing such 
        grants be integrated, to the greatest extent practicable, with 
        existing State and local emergency management plans.
            [(6) Homeland security grants to first responders must be 
        based on the best intelligence concerning the capabilities and 
        intentions of our terrorist enemies, and that intelligence must 
        be used to target resources to the Nation's greatest threats, 
        vulnerabilities, and consequences.
            [(7) The Nation's first response capabilities will be 
        improved by sharing resources, training, planning, personnel, 
        and equipment among neighboring jurisdictions through mutual 
        aid agreements and regional cooperation. Such regional 
        cooperation should be supported, where appropriate, through 
        direct grants from the Department of Homeland Security.
            [(8) An essential prerequisite to achieving the Nation's 
        homeland security objectives for first responders is the 
        establishment of well-defined national goals for terrorism 
        preparedness. These goals should delineate the essential 
        capabilities that every jurisdiction in the United States 
        should possess or to which it should have access.
            [(9) A national determination of essential capabilities is 
        needed to identify levels of State and local government 
        terrorism preparedness, to determine the nature and extent of 
        State and local first responder needs, to identify the human 
        and financial resources required to fulfill them, and to direct 
        funding to meet those needs and to measure preparedness levels 
        on a national scale.
            [(10) To facilitate progress in achieving, maintaining, and 
        enhancing essential capabilities for State and local first 
        responders, the Department of Homeland Security should seek to 
        allocate homeland security funding for first responders to meet 
        nationwide needs.
            [(11) Private sector resources and citizen volunteers can 
        perform critical functions in assisting in preventing and 
        responding to terrorist attacks, and should be integrated into 
        State and local planning efforts to ensure that their 
        capabilities and roles are understood, so as to provide 
        enhanced State and local operational capability and surge 
        capacity.
            [(12) Public-private partnerships, such as the partnerships 
        between the Business Executives for National Security and the 
        States of New Jersey and Georgia, can be useful to identify and 
        coordinate private sector support for State and local first 
        responders. Such models should be expanded to cover all States 
        and territories.
            [(13) An important aspect of essential capabilities is 
        measurability, so that it is possible to determine how prepared 
        a State or local government is now, and what additional steps 
        it needs to take, in order to respond to acts of terrorism.
            [(14) The Department of Homeland Security should establish, 
        publish, and regularly update national voluntary consensus 
        standards for both equipment and training, in cooperation with 
        both public and private sector standard setting organizations, 
        to assist State and local governments in obtaining the 
        equipment and training to attain the essential capabilities for 
        first response to acts of terrorism, and to ensure that first 
        responder funds are spent wisely.

[SEC. 5003. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

    [(a) In General.--The Homeland Security Act of 2002 (Public Law 
107-296; 6 U.S.C. 361 et seq.) is amended--
            [(1) in section 1(b) in the table of contents by adding at 
        the end the following:

              [``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

        [``Sec. 1801. Definitions.
        [``Sec. 1802. Faster and smarter funding for first responders.
        [``Sec. 1803. Essential capabilities for first responders.
        [``Sec. 1804. Task Force on Essential Capabilities for First 
                            Responders.
        [``Sec. 1805. Covered grant eligibility and criteria.
        [``Sec. 1806. Use of funds and accountability requirements.
        [``Sec. 1807. National standards for first responder equipment 
                            and training.'';
        [and
            [(2) by adding at the end the following:

              [``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

[``SEC. 1801. DEFINITIONS.

    [``In this title:
            [``(1) Board.--The term `Board' means the First Responder 
        Grants Board established under section 1805(f).
            [``(2) Covered grant.--The term `covered grant' means any 
        grant to which this title applies under section 1802.
            [``(3) Directly eligible tribe.--The term `directly 
        eligible tribe' means any Indian tribe or consortium of Indian 
        tribes that--
                    [``(A) meets the criteria for inclusion in the 
                qualified applicant pool for Self-Governance that are 
                set forth in section 402(c) of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                458bb(c));
                    [``(B) employs at least 10 full-time personnel in a 
                law enforcement or emergency response agency with the 
                capacity to respond to calls for law enforcement or 
                emergency services; and
                    [``(C)(i) is located on, or within 5 miles of, an 
                international border or waterway;
                    [``(ii) is located within 5 miles of a facility 
                within a critical infrastructure sector identified in 
                section 1803(c)(2);
                    [``(iii) is located within or contiguous to one of 
                the 50 largest metropolitan statistical areas in the 
                United States; or
                    [``(iv) has more than 1,000 square miles of Indian 
                country, as that term is defined in section 1151 of 
                title 18, United States Code.
            [``(4) Elevations in the threat alert level.--The term 
        `elevations in the threat alert level' means any designation 
        (including those that are less than national in scope) that 
        raises the homeland security threat level to either the highest 
        or second highest threat level under the Homeland Security 
        Advisory System referred to in section 201(d)(7).
            [``(5) Emergency preparedness.--The term `emergency 
        preparedness' shall have the same meaning that term has under 
        section 602 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5195a).
            [``(6) Essential capabilities.--The term `essential 
        capabilities' means the levels, availability, and competence of 
        emergency personnel, planning, training, and equipment across a 
        variety of disciplines needed to effectively and efficiently 
        prevent, prepare for, and respond to acts of terrorism 
        consistent with established practices.
            [``(7) First responder.--The term `first responder' shall 
        have the same meaning as the term `emergency response 
        provider'.
            [``(8) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaskan Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), which is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
            [``(9) Region.--The term `region' means--
                    [``(A) any geographic area consisting of all or 
                parts of 2 or more contiguous States, counties, 
                municipalities, or other local governments that have a 
                combined population of at least 1,650,000 or have an 
                area of not less than 20,000 square miles, and that, 
                for purposes of an application for a covered grant, is 
                represented by 1 or more governments or governmental 
                agencies within such geographic area, and that is 
                established by law or by agreement of 2 or more such 
                governments or governmental agencies in a mutual aid 
                agreement; or
                    [``(B) any other combination of contiguous local 
                government units (including such a combination 
                established by law or agreement of two or more 
                governments or governmental agencies in a mutual aid 
                agreement) that is formally certified by the Secretary 
                as a region for purposes of this Act with the consent 
                of--
                            [``(i) the State or States in which they 
                        are located, including a multi-State entity 
                        established by a compact between two or more 
                        States; and
                            [``(ii) the incorporated municipalities, 
                        counties, and parishes that they encompass.
            [``(10) Task force.--The term `Task Force' means the Task 
        Force on Essential Capabilities for First Responders 
        established under section 1804.

[``SEC. 1802. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

    [``(a) Covered Grants.--This title applies to grants provided by 
the Department to States, regions, or directly eligible tribes for the 
primary purpose of improving the ability of first responders to 
prevent, prepare for, respond to, or mitigate threatened or actual 
terrorist attacks, especially those involving weapons of mass 
destruction, administered under the following:
            [``(1) State homeland security grant program.--The State 
        Homeland Security Grant Program of the Department, or any 
        successor to such grant program.
            [``(2) Urban area security initiative.--The Urban Area 
        Security Initiative of the Department, or any successor to such 
        grant program.
            [``(3) Law enforcement terrorism prevention program.--The 
        Law Enforcement Terrorism Prevention Program of the Department, 
        or any successor to such grant program.
            [``(4) Citizen corps program.--The Citizen Corps Program of 
        the Department, or any successor to such grant program.
    [``(b) Excluded Programs.--This title does not apply to or 
otherwise affect the following Federal grant programs or any grant 
under such a program:
            [``(1) Nondepartment programs.--Any Federal grant program 
        that is not administered by the Department.
            [``(2) Fire grant programs.--The fire grant programs 
        authorized by sections 33 and 34 of the Federal Fire Prevention 
        and Control Act of 1974 (15 U.S.C. 2229, 2229a).
            [``(3) Emergency management planning and assistance account 
        grants.--The Emergency Management Performance Grant program and 
        the Urban Search and Rescue Grants program authorized by title 
        VI of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5195 et seq.); the Departments of 
        Veterans Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2000 (113 Stat. 1047 
        et seq.); and the Earthquake Hazards Reduction Act of 1977 (42 
        U.S.C. 7701 et seq.).

[``SEC. 1803. ESSENTIAL CAPABILITIES FOR FIRST RESPONDERS.

    [``(a) Establishment of Essential Capabilities.--
            [``(1) In general.--For purposes of covered grants, the 
        Secretary shall establish clearly defined essential 
        capabilities for State and local government preparedness for 
        terrorism, in consultation with--
                    [``(A) the Task Force on Essential Capabilities for 
                First Responders established under section 1804;
                    [``(B) the Under Secretaries for Emergency 
                Preparedness and Response, Border and Transportation 
                Security, Information Analysis and Infrastructure 
                Protection, and Science and Technology, and the 
                Director of the Office for Domestic Preparedness;
                    [``(C) the Secretary of Health and Human Services;
                    [``(D) other appropriate Federal agencies;
                    [``(E) State and local first responder agencies and 
                officials; and
                    [``(F) consensus-based standard making 
                organizations responsible for setting standards 
                relevant to the first responder community.
            [``(2) Deadlines.--The Secretary shall--
                    [``(A) establish essential capabilities under 
                paragraph (1) within 30 days after receipt of the 
                report under section 1804(b); and
                    [``(B) regularly update such essential capabilities 
                as necessary, but not less than every 3 years.
            [``(3) Provision of essential capabilities.--The Secretary 
        shall ensure that a detailed description of the essential 
        capabilities established under paragraph (1) is provided 
        promptly to the States and to the Congress. The States shall 
        make the essential capabilities available as necessary and 
        appropriate to local governments within their jurisdictions.
    [``(b) Objectives.--The Secretary shall ensure that essential 
capabilities established under subsection (a)(1) meet the following 
objectives:
            [``(1) Specificity.--The determination of essential 
        capabilities specifically shall describe the training, 
        planning, personnel, and equipment that different types of 
        communities in the Nation should possess, or to which they 
        should have access, in order to meet the Department's goals for 
        terrorism preparedness based upon--
                    [``(A) the most current risk assessment available 
                by the Directorate for Information Analysis and 
                Infrastructure Protection of the threats of terrorism 
                against the United States;
                    [``(B) the types of threats, vulnerabilities, 
                geography, size, and other factors that the Secretary 
                has determined to be applicable to each different type 
                of community; and
                    [``(C) the principles of regional coordination and 
                mutual aid among State and local governments.
            [``(2) Flexibility.--The establishment of essential 
        capabilities shall be sufficiently flexible to allow State and 
        local government officials to set priorities based on 
        particular needs, while reaching nationally determined 
        terrorism preparedness levels within a specified time period.
            [``(3) Measurability.--The establishment of essential 
        capabilities shall be designed to enable measurement of 
        progress towards specific terrorism preparedness goals.
            [``(4) Comprehensiveness.--The determination of essential 
        capabilities for terrorism preparedness shall be made within 
        the context of a comprehensive State emergency management 
        system.
    [``(c) Factors To Be Considered.--
            [``(1) In general.--In establishing essential capabilities 
        under subsection (a)(1), the Secretary specifically shall 
        consider the variables of threat, vulnerability, and 
        consequences with respect to the Nation's population (including 
        transient commuting and tourist populations) and critical 
        infrastructure. Such consideration shall be based upon the most 
        current risk assessment available by the Directorate for 
        Information Analysis and Infrastructure Protection of the 
        threats of terrorism against the United States.
            [``(2) Critical infrastructure sectors.--The Secretary 
        specifically shall consider threats of terrorism against the 
        following critical infrastructure sectors in all areas of the 
        Nation, urban and rural:
                    [``(A) Agriculture.
                    [``(B) Banking and finance.
                    [``(C) Chemical industries.
                    [``(D) The defense industrial base.
                    [``(E) Emergency services.
                    [``(F) Energy.
                    [``(G) Food.
                    [``(H) Government.
                    [``(I) Postal and shipping.
                    [``(J) Public health.
                    [``(K) Information and telecommunications networks.
                    [``(L) Transportation.
                    [``(M) Water.
        The order in which the critical infrastructure sectors are 
        listed in this paragraph shall not be construed as an order of 
        priority for consideration of the importance of such sectors.
            [``(3) Types of threat.--The Secretary specifically shall 
        consider the following types of threat to the critical 
        infrastructure sectors described in paragraph (2), and to 
        populations in all areas of the Nation, urban and rural:
                    [``(A) Biological threats.
                    [``(B) Nuclear threats.
                    [``(C) Radiological threats.
                    [``(D) Incendiary threats.
                    [``(E) Chemical threats.
                    [``(F) Explosives.
                    [``(G) Suicide bombers.
                    [``(H) Cyber threats.
                    [``(I) Any other threats based on proximity to 
                specific past acts of terrorism or the known activity 
                of any terrorist group.
        The order in which the types of threat are listed in this 
        paragraph shall not be construed as an order of priority for 
        consideration of the importance of such threats.
            [``(4) Consideration of additional factors.--In 
        establishing essential capabilities under subsection (a)(1), 
        the Secretary shall take into account any other specific threat 
        to a population (including a transient commuting or tourist 
        population) or critical infrastructure sector that the 
        Secretary has determined to exist.

[``SEC. 1804. TASK FORCE ON ESSENTIAL CAPABILITIES FOR FIRST 
              RESPONDERS.

    [``(a) Establishment.--To assist the Secretary in establishing 
essential capabilities under section 1803(a)(1), the Secretary shall 
establish an advisory body pursuant to section 871(a) not later than 60 
days after the date of the enactment of this section, which shall be 
known as the Task Force on Essential Capabilities for First Responders.
    [``(b) Report.--
            [``(1) In general.--The Task Force shall submit to the 
        Secretary, not later than 9 months after its establishment by 
        the Secretary under subsection (a) and every 3 years 
        thereafter, a report on its recommendations for essential 
        capabilities for preparedness for terrorism.
            [``(2) Contents.--The report shall--
                    [``(A) include a priority ranking of essential 
                capabilities in order to provide guidance to the 
                Secretary and to the Congress on determining the 
                appropriate allocation of, and funding levels for, 
                first responder needs;
                    [``(B) set forth a methodology by which any State 
                or local government will be able to determine the 
                extent to which it possesses or has access to the 
                essential capabilities that States and local 
                governments having similar risks should obtain;
                    [``(C) describe the availability of national 
                voluntary consensus standards, and whether there is a 
                need for new national voluntary consensus standards, 
                with respect to first responder training and equipment;
                    [``(D) include such additional matters as the 
                Secretary may specify in order to further the terrorism 
                preparedness capabilities of first responders; and
                    [``(E) include such revisions to the contents of 
                past reports as are necessary to take into account 
                changes in the most current risk assessment available 
                by the Directorate for Information Analysis and 
                Infrastructure Protection or other relevant information 
                as determined by the Secretary.
            [``(3) Consistency with federal working group.--The Task 
        Force shall ensure that its recommendations for essential 
        capabilities are, to the extent feasible, consistent with any 
        preparedness goals or recommendations of the Federal working 
        group established under section 319F(a) of the Public Health 
        Service Act (42 U.S.C. 247d-6(a)).
            [``(4) Comprehensiveness.--The Task Force shall ensure that 
        its recommendations regarding essential capabilities for 
        terrorism preparedness are made within the context of a 
        comprehensive State emergency management system.
            [``(5) Prior measures.--The Task Force shall ensure that 
        its recommendations regarding essential capabilities for 
        terrorism preparedness take into account any capabilities that 
        State or local officials have determined to be essential and 
        have undertaken since September 11, 2001, to prevent or prepare 
        for terrorist attacks.
    [``(c) Membership.--
            [``(1) In general.--The Task Force shall consist of 25 
        members appointed by the Secretary, and shall, to the extent 
        practicable, represent a geographic and substantive cross 
        section of governmental and nongovernmental first responder 
        disciplines from the State and local levels, including as 
        appropriate--
                    [``(A) members selected from the emergency response 
                field, including fire service and law enforcement, 
                hazardous materials response, emergency medical 
                services, and emergency management personnel (including 
                public works personnel routinely engaged in emergency 
                response);
                    [``(B) health scientists, emergency and inpatient 
                medical providers, and public health professionals, 
                including experts in emergency health care response to 
                chemical, biological, radiological, and nuclear 
                terrorism, and experts in providing mental health care 
                during emergency response operations;
                    [``(C) experts from Federal, State, and local 
                governments, and the private sector, representing 
                standards-setting organizations, including 
                representation from the voluntary consensus codes and 
                standards development community, particularly those 
                with expertise in first responder disciplines; and
                    [``(D) State and local officials with expertise in 
                terrorism preparedness, subject to the condition that 
                if any such official is an elected official 
                representing one of the two major political parties, an 
                equal number of elected officials shall be selected 
                from each such party.
            [``(2) Coordination with the department of health and 
        health services.--In the selection of members of the Task Force 
        who are health professionals, including emergency medical 
        professionals, the Secretary shall coordinate the selection 
        with the Secretary of Health and Human Services.
            [``(3) Ex officio members.--The Secretary and the Secretary 
        of Health and Human Services shall each designate one or more 
        officers of their respective Departments to serve as ex officio 
        members of the Task Force. One of the ex officio members from 
        the Department of Homeland Security shall be the designated 
        officer of the Federal Government for purposes of subsection 
        (e) of section 10 of the Federal Advisory Committee Act (5 App. 
        U.S.C.).
    [``(d) Applicability of Federal Advisory Committee Act.--
Notwithstanding section 871(a), the Federal Advisory Committee Act (5 
U.S.C. App.), including subsections (a), (b), and (d) of section 10 of 
such Act, and section 552b(c) of title 5, United States Code, shall 
apply to the Task Force.

[``SEC. 1805. COVERED GRANT ELIGIBILITY AND CRITERIA.

    [``(a) Grant Eligibility.--Any State, region, or directly eligible 
tribe shall be eligible to apply for a covered grant.
    [``(b) Grant Criteria.--In awarding covered grants, the Secretary 
shall assist States and local governments in achieving, maintaining, 
and enhancing the essential capabilities for first responders 
established by the Secretary under section 1803.
    [``(c) State Homeland Security Plans.--
            [``(1) Submission of plans.--The Secretary shall require 
        that any State applying to the Secretary for a covered grant 
        must submit to the Secretary a 3-year State homeland security 
        plan that--
                    [``(A) demonstrates the extent to which the State 
                has achieved the essential capabilities that apply to 
                the State;
                    [``(B) demonstrates the needs of the State 
                necessary to achieve, maintain, or enhance the 
                essential capabilities that apply to the State;
                    [``(C) includes a prioritization of such needs 
                based on threat, vulnerability, and consequence 
                assessment factors applicable to the State;
                    [``(D) describes how the State intends--
                            [``(i) to address such needs at the city, 
                        county, regional, tribal, State, and interstate 
                        level, including a precise description of any 
                        regional structure the State has established 
                        for the purpose of organizing homeland security 
                        preparedness activities funded by covered 
                        grants;
                            [``(ii) to use all Federal, State, and 
                        local resources available for the purpose of 
                        addressing such needs; and
                            [``(iii) to give particular emphasis to 
                        regional planning and cooperation, including 
                        the activities of multijurisdictional planning 
                        agencies governed by local officials, both 
                        within its jurisdictional borders and with 
                        neighboring States;
                    [``(E) is developed in consultation with and 
                subject to appropriate comment by local governments 
                within the State; and
                    [``(F) with respect to the emergency preparedness 
                of first responders, addresses the unique aspects of 
                terrorism as part of a comprehensive State emergency 
                management plan.
            [``(2) Approval by secretary.--The Secretary may not award 
        any covered grant to a State unless the Secretary has approved 
        the applicable State homeland security plan.
    [``(d) Consistency With State Plans.--The Secretary shall ensure 
that each covered grant is used to supplement and support, in a 
consistent and coordinated manner, the applicable State homeland 
security plan or plans.
    [``(e) Application for Grant.--
            [``(1) In general.--Except as otherwise provided in this 
        subsection, any State, region, or directly eligible tribe may 
        apply for a covered grant by submitting to the Secretary an 
        application at such time, in such manner, and containing such 
        information as is required under this subsection, or as the 
        Secretary may reasonably require.
            [``(2) Deadlines for applications and awards.--All 
        applications for covered grants must be submitted at such time 
        as the Secretary may reasonably require for the fiscal year for 
        which they are submitted. The Secretary shall award covered 
        grants pursuant to all approved applications for such fiscal 
        year as soon as practicable, but not later than March 1 of such 
        year.
            [``(3) Availability of funds.--All funds awarded by the 
        Secretary under covered grants in a fiscal year shall be 
        available for obligation through the end of the subsequent 
        fiscal year.
            [``(4) Minimum contents of application.--The Secretary 
        shall require that each applicant include in its application, 
        at a minimum--
                    [``(A) the purpose for which the applicant seeks 
                covered grant funds and the reasons why the applicant 
                needs the covered grant to meet the essential 
                capabilities for terrorism preparedness within the 
                State, region, or directly eligible tribe to which the 
                application pertains;
                    [``(B) a description of how, by reference to the 
                applicable State homeland security plan or plans under 
                subsection (c), the allocation of grant funding 
                proposed in the application, including, where 
                applicable, the amount not passed through under section 
                1806(g)(1), would assist in fulfilling the essential 
                capabilities specified in such plan or plans;
                    [``(C) a statement of whether a mutual aid 
                agreement applies to the use of all or any portion of 
                the covered grant funds;
                    [``(D) if the applicant is a State, a description 
                of how the State plans to allocate the covered grant 
                funds to regions, local governments, and Indian tribes;
                    [``(E) if the applicant is a region--
                            [``(i) a precise geographical description 
                        of the region and a specification of all 
                        participating and nonparticipating local 
                        governments within the geographical area 
                        comprising that region;
                            [``(ii) a specification of what 
                        governmental entity within the region will 
                        administer the expenditure of funds under the 
                        covered grant; and
                            [``(iii) a designation of a specific 
                        individual to serve as regional liaison;
                    [``(F) a capital budget showing how the applicant 
                intends to allocate and expend the covered grant funds;
                    [``(G) if the applicant is a directly eligible 
                tribe, a designation of a specific individual to serve 
                as the tribal liaison; and
                    [``(H) a statement of how the applicant intends to 
                meet the matching requirement, if any, that applies 
                under section 1806(g)(2).
            [``(5) Regional applications.--
                    [``(A) Relationship to state applications.--A 
                regional application--
                            [``(i) shall be coordinated with an 
                        application submitted by the State or States of 
                        which such region is a part;
                            [``(ii) shall supplement and avoid 
                        duplication with such State application; and
                            [``(iii) shall address the unique regional 
                        aspects of such region's terrorism preparedness 
                        needs beyond those provided for in the 
                        application of such State or States.
                    [``(B) State review and submission.--To ensure the 
                consistency required under subsection (d) and the 
                coordination required under subparagraph (A) of this 
                paragraph, an applicant that is a region must submit 
                its application to each State of which any part is 
                included in the region for review and concurrence prior 
                to the submission of such application to the Secretary. 
                The regional application shall be transmitted to the 
                Secretary through each such State within 30 days of its 
                receipt, unless the Governor of such a State notifies 
                the Secretary, in writing, that such regional 
                application is inconsistent with the State's homeland 
                security plan and provides an explanation of the 
                reasons therefor.
                    [``(C) Distribution of regional awards.--If the 
                Secretary approves a regional application, then the 
                Secretary shall distribute a regional award to the 
                State or States submitting the applicable regional 
                application under subparagraph (B), and each such State 
                shall, not later than the end of the 45-day period 
                beginning on the date after receiving a regional award, 
                pass through to the region all covered grant funds or 
                resources purchased with such funds, except those funds 
                necessary for the State to carry out its 
                responsibilities with respect to such regional 
                application: Provided, That in no such case shall the 
                State or States pass through to the region less than 80 
                percent of the regional award.
                    [``(D) Certifications regarding distribution of 
                grant funds to regions.--Any State that receives a 
                regional award under subparagraph (C) shall certify to 
                the Secretary, by not later than 30 days after the 
                expiration of the period described in subparagraph (C) 
                with respect to the grant, that the State has made 
                available to the region the required funds and 
                resources in accordance with subparagraph (C).
                    [``(E) Direct payments to regions.--If any State 
                fails to pass through a regional award to a region as 
                required by subparagraph (C) within 45 days after 
                receiving such award and does not request or receive an 
                extension of such period under section 1806(h)(2), the 
                region may petition the Secretary to receive directly 
                the portion of the regional award that is required to 
                be passed through to such region under subparagraph 
                (C).
                    [``(F) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(E)(iii) shall--
                            [``(i) coordinate with Federal, State, 
                        local, regional, and private officials within 
                        the region concerning terrorism preparedness;
                            [``(ii) develop a process for receiving 
                        input from Federal, State, local, regional, and 
                        private sector officials within the region to 
                        assist in the development of the regional 
                        application and to improve the region's access 
                        to covered grants; and
                            [``(iii) administer, in consultation with 
                        State, local, regional, and private officials 
                        within the region, covered grants awarded to 
                        the region.
            [``(6) Tribal applications.--
                    [``(A) Submission to the state or states.--To 
                ensure the consistency required under subsection (d), 
                an applicant that is a directly eligible tribe must 
                submit its application to each State within the 
                boundaries of which any part of such tribe is located 
                for direct submission to the Department along with the 
                application of such State or States.
                    [``(B) Opportunity for state comment.--Before 
                awarding any covered grant to a directly eligible 
                tribe, the Secretary shall provide an opportunity to 
                each State within the boundaries of which any part of 
                such tribe is located to comment to the Secretary on 
                the consistency of the tribe's application with the 
                State's homeland security plan. Any such comments shall 
                be submitted to the Secretary concurrently with the 
                submission of the State and tribal applications.
                    [``(C) Final authority.--The Secretary shall have 
                final authority to determine the consistency of any 
                application of a directly eligible tribe with the 
                applicable State homeland security plan or plans, and 
                to approve any application of such tribe. The Secretary 
                shall notify each State within the boundaries of which 
                any part of such tribe is located of the approval of an 
                application by such tribe.
                    [``(D) Tribal liaison.--A tribal liaison designated 
                under paragraph (4)(G) shall--
                            [``(i) coordinate with Federal, State, 
                        local, regional, and private officials 
                        concerning terrorism preparedness;
                            [``(ii) develop a process for receiving 
                        input from Federal, State, local, regional, and 
                        private sector officials to assist in the 
                        development of the application of such tribe 
                        and to improve the tribe's access to covered 
                        grants; and
                            [``(iii) administer, in consultation with 
                        State, local, regional, and private officials, 
                        covered grants awarded to such tribe.
                    [``(E) Limitation on the number of direct grants.--
                The Secretary may make covered grants directly to not 
                more than 20 directly eligible tribes per fiscal year.
                    [``(F) Tribes not receiving direct grants.--An 
                Indian tribe that does not receive a grant directly 
                under this section is eligible to receive funds under a 
                covered grant from the State or States within the 
                boundaries of which any part of such tribe is located, 
                consistent with the homeland security plan of the State 
                as described in subsection (c). If a State fails to 
                comply with section 1806(g)(1), the tribe may request 
                payment under section 1806(h)(3) in the same manner as 
                a local government.
            [``(7) Equipment standards.--If an applicant for a covered 
        grant proposes to upgrade or purchase, with assistance provided 
        under the grant, new equipment or systems that do not meet or 
        exceed any applicable national voluntary consensus standards 
        established by the Secretary under section 1807(a), the 
        applicant shall include in the application an explanation of 
        why such equipment or systems will serve the needs of the 
        applicant better than equipment or systems that meet or exceed 
        such standards.
    [``(f) First Responder Grants Board.--
            [``(1) Establishment of board.--The Secretary shall 
        establish a First Responder Grants Board, consisting of--
                    [``(A) the Secretary;
                    [``(B) the Under Secretary for Emergency 
                Preparedness and Response;
                    [``(C) the Under Secretary for Border and 
                Transportation Security;
                    [``(D) the Under Secretary for Information Analysis 
                and Infrastructure Protection;
                    [``(E) the Under Secretary for Science and 
                Technology; and
                    [``(F) the Director of the Office for Domestic 
                Preparedness.
            [``(2) Chairman.--
                    [``(A) In general.--The Secretary shall be the 
                Chairman of the Board.
                    [``(B) Exercise of authorities by deputy 
                secretary.--The Deputy Secretary of Homeland Security 
                may exercise the authorities of the Chairman, if the 
                Secretary so directs.
            [``(3) Ranking of grant applications.--
                    [``(A) Prioritization of grants.--The Board--
                            [``(i) shall evaluate and annually 
                        prioritize all pending applications for covered 
                        grants based upon the degree to which they 
                        would, by achieving, maintaining, or enhancing 
                        the essential capabilities of the applicants on 
                        a nationwide basis, lessen the threat to, 
                        vulnerability of, and consequences for persons 
                        and critical infrastructure; and
                            [``(ii) in evaluating the threat to persons 
                        and critical infrastructure for purposes of 
                        prioritizing covered grants, shall give greater 
                        weight to threats of terrorism based on their 
                        specificity and credibility, including any 
                        pattern of repetition.
                    [``(B) Minimum amounts.--After evaluating and 
                prioritizing grant applications under subparagraph (A), 
                the Board shall ensure that, for each fiscal year--
                            [``(i) each of the States, other than the 
                        Virgin Islands, American Samoa, Guam, and the 
                        Northern Mariana Islands, that has an approved 
                        State homeland security plan receives no less 
                        than 0.25 percent of the funds available for 
                        covered grants for that fiscal year for 
                        purposes of implementing its homeland security 
                        plan in accordance with the prioritization of 
                        needs under subsection (c)(1)(C);
                            [``(ii) each of the States, other than the 
                        Virgin Islands, American Samoa, Guam, and the 
                        Northern Mariana Islands, that has an approved 
                        State homeland security plan and that meets one 
                        or both of the additional high-risk qualifying 
                        criteria under subparagraph (C) receives no 
                        less than 0.45 percent of the funds available 
                        for covered grants for that fiscal year for 
                        purposes of implementing its homeland security 
                        plan in accordance with the prioritization of 
                        needs under subsection (c)(1)(C);
                            [``(iii) the Virgin Islands, American 
                        Samoa, Guam, and the Northern Mariana Islands 
                        each receives no less than 0.08 percent of the 
                        funds available for covered grants for that 
                        fiscal year for purposes of implementing its 
                        approved State homeland security plan in 
                        accordance with the prioritization of needs 
                        under subsection (c)(1)(C); and
                            [``(iv) directly eligible tribes 
                        collectively receive no less than 0.08 percent 
                        of the funds available for covered grants for 
                        such fiscal year for purposes of addressing the 
                        needs identified in the applications of such 
                        tribes, consistent with the homeland security 
                        plan of each State within the boundaries of 
                        which any part of any such tribe is located, 
                        except that this clause shall not apply with 
                        respect to funds available for a fiscal year if 
                        the Secretary receives less than 5 applications 
                        for such fiscal year from such tribes under 
                        subsection (e)(6)(A) or does not approve at 
                        least one such application.
                    [``(C) Additional high-risk qualifying criteria.--
                For purposes of subparagraph (B)(ii), additional high-
                risk qualifying criteria consist of--
                            [``(i) having a significant international 
                        land border; or
                            [``(ii) adjoining a body of water within 
                        North America through which an international 
                        boundary line extends.
            [``(4) Effect of regional awards on state minimum.--Any 
        regional award, or portion thereof, provided to a State under 
        subsection (e)(5)(C) shall not be considered in calculating the 
        minimum State award under paragraph (3)(B) of this subsection.
            [``(5) Functions of under secretaries.--The Under 
        Secretaries referred to in paragraph (1) shall seek to ensure 
        that the relevant expertise and input of the staff of their 
        directorates are available to and considered by the Board.

[``SEC. 1806. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

    [``(a) In General.--A covered grant may be used for--
            [``(1) purchasing or upgrading equipment, including 
        computer software, to enhance terrorism preparedness and 
        response;
            [``(2) exercises to strengthen terrorism preparedness and 
        response;
            [``(3) training for prevention (including detection) of, 
        preparedness for, or response to attacks involving weapons of 
        mass destruction, including training in the use of equipment 
        and computer software;
            [``(4) developing or updating response plans;
            [``(5) establishing or enhancing mechanisms for sharing 
        terrorism threat information;
            [``(6) systems architecture and engineering, program 
        planning and management, strategy formulation and strategic 
        planning, life-cycle systems design, product and technology 
        evaluation, and prototype development for terrorism 
        preparedness and response purposes;
            [``(7) additional personnel costs resulting from--
                    [``(A) elevations in the threat alert level of the 
                Homeland Security Advisory System by the Secretary, or 
                a similar elevation in threat alert level issued by a 
                State, region, or local government with the approval of 
                the Secretary;
                    [``(B) travel to and participation in exercises and 
                training in the use of equipment and on prevention 
                activities;
                    [``(C) the temporary replacement of personnel 
                during any period of travel to and participation in 
                exercises and training in the use of equipment and on 
                prevention activities; and
                    [``(D) personnel engaged exclusively in 
                counterterrorism and intelligence activities 
                notwithstanding the date such personnel were hired;
            [``(8) the costs of equipment (including software) required 
        to receive, transmit, handle, and store classified information;
            [``(9) protecting critical infrastructure against potential 
        attack by the addition of barriers, fences, gates, and other 
        such devices, except that the cost of such measures may not 
        exceed the greater of--
                    [``(A) $1,000,000 per project; or
                    [``(B) such greater amount as may be approved by 
                the Secretary, which may not exceed 10 percent of the 
                total amount of the covered grant;
            [``(10) the costs of commercially available interoperable 
        communications equipment (which, where applicable, is based on 
        national, voluntary consensus standards) that the Secretary, in 
        consultation with the Chairman of the Federal Communications 
        Commission, deems best suited to facilitate interoperability, 
        coordination, and integration between and among emergency 
        communications systems, and that complies with prevailing grant 
        guidance of the Department for interoperable communications;
            [``(11) educational curricula development for first 
        responders to ensure that they are prepared for terrorist 
        attacks;
            [``(12) training and exercises to assist public elementary 
        and secondary schools in developing and implementing programs 
        to instruct students regarding age-appropriate skills to 
        prepare for and respond to an act of terrorism;
            [``(13) paying of administrative expenses directly related 
        to administration of the grant, except that such expenses may 
        not exceed 3 percent of the amount of the grant;
            [``(14) reimbursement for overtime and other fixed costs 
        incurred for homeland security purposes after September 11, 
        2001; and
            [``(15) other appropriate activities as determined by the 
        Secretary.
    [``(b) Prohibited Uses.--Funds provided as a covered grant may not 
be used--
            [``(1) to supplant State or local funds;
            [``(2) to construct buildings or other physical facilities;
            [``(3) to acquire land; or
            [``(4) for any State or local government cost sharing 
        contribution.
    [``(c) Multiple-Purpose Funds.--Nothing in this section shall be 
construed to preclude State and local governments from using covered 
grant funds in a manner that also enhances first responder preparedness 
for emergencies and disasters unrelated to acts of terrorism, if such 
use assists such governments in achieving essential capabilities for 
terrorism preparedness established by the Secretary under section 1803.
    [``(d) Reimbursement of Costs.--In addition to the activities 
described in subsection (a), a covered grant may be used to provide a 
reasonable stipend to paid-on-call or volunteer first responders who 
are not otherwise compensated for travel to or participation in 
training covered by this section. Any such reimbursement shall not be 
considered compensation for purposes of rendering such a first 
responder an employee under the Fair Labor Standards Act of 1938 (29 
U.S.C. 201 et seq.).
    [``(e) Assistance Requirement.--The Secretary may not request that 
equipment paid for, wholly or in part, with funds provided as a covered 
grant be made available for responding to emergencies in surrounding 
States, regions, and localities, unless the Secretary undertakes to pay 
the costs directly attributable to transporting and operating such 
equipment during such response.
    [``(f) Flexibility in Unspent Homeland Security Grant Funds.--Upon 
request by the recipient of a covered grant, the Secretary may 
authorize the grantee to transfer all or part of funds provided as the 
covered grant from uses specified in the grant agreement to other uses 
authorized under this section, if the Secretary determines that such 
transfer is in the interests of homeland security.
    [``(g) State, Regional, and Tribal Responsibilities.--
            [``(1) Pass-through.--The Secretary shall require a 
        recipient of a covered grant that is a State to obligate or 
        otherwise make available to local governments, first 
        responders, and other local groups, to the extent required 
        under the State homeland security plan or plans specified in 
        the application for the grant, not less than 80 percent of the 
        grant funds, resources purchased with the grant funds having a 
        value equal to at least 80 percent of the amount of the grant, 
        or a combination thereof, by not later than the end of the 45-
        day period beginning on the date the grant recipient receives 
        the grant funds.
            [``(2) Cost sharing.--
                    [``(A) In general.--The Federal share of the costs 
                of an activity carried out with a covered grant to a 
                State, region, or directly eligible tribe awarded after 
                the 2-year period beginning on the date of the 
                enactment of this section shall not exceed 75 percent.
                    [``(B) Interim rule.--The Federal share of the 
                costs of an activity carried out with a covered grant 
                awarded before the end of the 2-year period beginning 
                on the date of the enactment of this section shall be 
                100 percent.
                    [``(C) In-kind matching.--Each recipient of a 
                covered grant may meet the matching requirement under 
                subparagraph (A) by making in-kind contributions of 
                goods or services that are directly linked with the 
                purpose for which the grant is made, including, but not 
                limited to, any necessary personnel overtime, 
                contractor services, administrative costs, equipment 
                fuel and maintenance, and rental space.
            [``(3) Certifications regarding distribution of grant funds 
        to local governments.--Any State that receives a covered grant 
        shall certify to the Secretary, by not later than 30 days after 
        the expiration of the period described in paragraph (1) with 
        respect to the grant, that the State has made available for 
        expenditure by local governments, first responders, and other 
        local groups the required amount of grant funds pursuant to 
        paragraph (1).
            [``(4) Quarterly report on homeland security spending.--The 
        Federal share described in paragraph (2)(A) may be increased by 
        up to 2 percent for any State, region, or directly eligible 
        tribe that, not later than 30 days after the end of each fiscal 
        quarter, submits to the Secretary a report on that fiscal 
        quarter. Each such report must include, for each recipient of a 
        covered grant or a pass-through under paragraph (1)--
                    [``(A) the amount obligated to that recipient in 
                that quarter;
                    [``(B) the amount expended by that recipient in 
                that quarter; and
                    [``(C) a summary description of the items purchased 
                by such recipient with such amount.
            [``(5) Annual report on homeland security spending.--Each 
        recipient of a covered grant shall submit an annual report to 
        the Secretary not later than 60 days after the end of each 
        fiscal year. Each recipient of a covered grant that is a region 
        must simultaneously submit its report to each State of which 
        any part is included in the region. Each recipient of a covered 
        grant that is a directly eligible tribe must simultaneously 
        submit its report to each State within the boundaries of which 
        any part of such tribe is located. Each report must include the 
        following:
                    [``(A) The amount, ultimate recipients, and dates 
                of receipt of all funds received under the grant during 
                the previous fiscal year.
                    [``(B) The amount and the dates of disbursements of 
                all such funds expended in compliance with paragraph 
                (1) or pursuant to mutual aid agreements or other 
                sharing arrangements that apply within the State, 
                region, or directly eligible tribe, as applicable, 
                during the previous fiscal year.
                    [``(C) How the funds were utilized by each ultimate 
                recipient or beneficiary during the preceding fiscal 
                year.
                    [``(D) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans were achieved, maintained, or enhanced as 
                the result of the expenditure of grant funds during the 
                preceding fiscal year.
                    [``(E) The extent to which essential capabilities 
                identified in the applicable State homeland security 
                plan or plans remain unmet.
            [``(6) Inclusion of restricted annexes.--A recipient of a 
        covered grant may submit to the Secretary an annex to the 
        annual report under paragraph (5) that is subject to 
        appropriate handling restrictions, if the recipient believes 
        that discussion in the report of unmet needs would reveal 
        sensitive but unclassified information.
            [``(7) Provision of reports.--The Secretary shall ensure 
        that each annual report under paragraph (5) is provided to the 
        Under Secretary for Emergency Preparedness and Response and the 
        Director of the Office for Domestic Preparedness.
    [``(h) Incentives to Efficient Administration of Homeland Security 
Grants.--
            [``(1) Penalties for delay in passing through local 
        share.--If a recipient of a covered grant that is a State fails 
        to pass through to local governments, first responders, and 
        other local groups funds or resources required by subsection 
        (g)(1) within 45 days after receiving funds under the grant, 
        the Secretary may--
                    [``(A) reduce grant payments to the grant recipient 
                from the portion of grant funds that is not required to 
                be passed through under subsection (g)(1);
                    [``(B) terminate payment of funds under the grant 
                to the recipient, and transfer the appropriate portion 
                of those funds directly to local first responders that 
                were intended to receive funding under that grant; or
                    [``(C) impose additional restrictions or burdens on 
                the recipient's use of funds under the grant, which may 
                include--
                            [``(i) prohibiting use of such funds to pay 
                        the grant recipient's grant-related overtime or 
                        other expenses;
                            [``(ii) requiring the grant recipient to 
                        distribute to local government beneficiaries 
                        all or a portion of grant funds that are not 
                        required to be passed through under subsection 
                        (g)(1); or
                            [``(iii) for each day that the grant 
                        recipient fails to pass through funds or 
                        resources in accordance with subsection (g)(1), 
                        reducing grant payments to the grant recipient 
                        from the portion of grant funds that is not 
                        required to be passed through under subsection 
                        (g)(1), except that the total amount of such 
                        reduction may not exceed 20 percent of the 
                        total amount of the grant.
            [``(2) Extension of period.--The Governor of a State may 
        request in writing that the Secretary extend the 45-day period 
        under section 1805(e)(5)(E) or paragraph (1) for an additional 
        15-day period. The Secretary may approve such a request, and 
        may extend such period for additional 15-day periods, if the 
        Secretary determines that the resulting delay in providing 
        grant funding to the local government entities that will 
        receive funding under the grant will not have a significant 
        detrimental impact on such entities' terrorism preparedness 
        efforts.
            [``(3) Provision of non-local share to local government.--
                    [``(A) In general.--The Secretary may upon request 
                by a local government pay to the local government a 
                portion of the amount of a covered grant awarded to a 
                State in which the local government is located, if--
                            [``(i) the local government will use the 
                        amount paid to expedite planned enhancements to 
                        its terrorism preparedness as described in any 
                        applicable State homeland security plan or 
                        plans;
                            [``(ii) the State has failed to pass 
                        through funds or resources in accordance with 
                        subsection (g)(1); and
                            [``(iii) the local government complies with 
                        subparagraphs (B) and (C).
                    [``(B) Showing required.--To receive a payment 
                under this paragraph, a local government must 
                demonstrate that--
                            [``(i) it is identified explicitly as an 
                        ultimate recipient or intended beneficiary in 
                        the approved grant application;
                            [``(ii) it was intended by the grantee to 
                        receive a severable portion of the overall 
                        grant for a specific purpose that is identified 
                        in the grant application;
                            [``(iii) it petitioned the grantee for the 
                        funds or resources after expiration of the 
                        period within which the funds or resources were 
                        required to be passed through under subsection 
                        (g)(1); and
                            [``(iv) it did not receive the portion of 
                        the overall grant that was earmarked or 
                        designated for its use or benefit.
                    [``(C) Effect of payment.--Payment of grant funds 
                to a local government under this paragraph--
                            [``(i) shall not affect any payment to 
                        another local government under this paragraph; 
                        and
                            [``(ii) shall not prejudice consideration 
                        of a request for payment under this paragraph 
                        that is submitted by another local government.
                    [``(D) Deadline for action by secretary.--The 
                Secretary shall approve or disapprove each request for 
                payment under this paragraph by not later than 15 days 
                after the date the request is received by the 
                Department.
    [``(i) Reports to Congress.--The Secretary shall submit an annual 
report to the Congress by December 31 of each year--
            [``(1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each State, 
        region, and directly eligible tribe in the preceding fiscal 
        year;
            [``(2) containing information on the use of such grant 
        funds by grantees; and
            [``(3) describing--
                    [``(A) the Nation's progress in achieving, 
                maintaining, and enhancing the essential capabilities 
                established under section 1803(a) as a result of the 
                expenditure of covered grant funds during the preceding 
                fiscal year; and
                    [``(B) an estimate of the amount of expenditures 
                required to attain across the United States the 
                essential capabilities established under section 
                1803(a).

[``SEC. 1807. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT AND 
              TRAINING.

    [``(a) Equipment Standards.--
            [``(1) In general.--The Secretary, in consultation with the 
        Under Secretaries for Emergency Preparedness and Response and 
        Science and Technology and the Director of the Office for 
        Domestic Preparedness, shall, not later than 6 months after the 
        date of enactment of this section, support the development of, 
        promulgate, and update as necessary national voluntary 
        consensus standards for the performance, use, and validation of 
        first responder equipment for purposes of section 1805(e)(7). 
        Such standards--
                    [``(A) shall be, to the maximum extent practicable, 
                consistent with any existing voluntary consensus 
                standards;
                    [``(B) shall take into account, as appropriate, new 
                types of terrorism threats that may not have been 
                contemplated when such existing standards were 
                developed;
                    [``(C) shall be focused on maximizing 
                interoperability, interchangeability, durability, 
                flexibility, efficiency, efficacy, portability, 
                sustainability, and safety; and
                    [``(D) shall cover all appropriate uses of the 
                equipment.
            [``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary shall specifically consider the following 
        categories of first responder equipment:
                    [``(A) Thermal imaging equipment.
                    [``(B) Radiation detection and analysis equipment.
                    [``(C) Biological detection and analysis equipment.
                    [``(D) Chemical detection and analysis equipment.
                    [``(E) Decontamination and sterilization equipment.
                    [``(F) Personal protective equipment, including 
                garments, boots, gloves, and hoods and other protective 
                clothing.
                    [``(G) Respiratory protection equipment.
                    [``(H) Interoperable communications, including 
                wireless and wireline voice, video, and data networks.
                    [``(I) Explosive mitigation devices and explosive 
                detection and analysis equipment.
                    [``(J) Containment vessels.
                    [``(K) Contaminant-resistant vehicles.
                    [``(L) Such other equipment for which the Secretary 
                determines that national voluntary consensus standards 
                would be appropriate.
    [``(b) Training Standards.--
            [``(1) In general.--The Secretary, in consultation with the 
        Under Secretaries for Emergency Preparedness and Response and 
        Science and Technology and the Director of the Office for 
        Domestic Preparedness, shall support the development of, 
        promulgate, and regularly update as necessary national 
        voluntary consensus standards for first responder training 
        carried out with amounts provided under covered grant programs, 
        that will enable State and local government first responders to 
        achieve optimal levels of terrorism preparedness as quickly as 
        practicable. Such standards shall give priority to providing 
        training to--
                    [``(A) enable first responders to prevent, prepare 
                for, respond to, and mitigate terrorist threats, 
                including threats from chemical, biological, nuclear, 
                and radiological weapons and explosive devices capable 
                of inflicting significant human casualties; and
                    [``(B) familiarize first responders with the proper 
                use of equipment, including software, developed 
                pursuant to the standards established under subsection 
                (a).
            [``(2) Required categories.--In carrying out paragraph (1), 
        the Secretary specifically shall include the following 
        categories of first responder activities:
                    [``(A) Regional planning.
                    [``(B) Joint exercises.
                    [``(C) Intelligence collection, analysis, and 
                sharing.
                    [``(D) Emergency notification of affected 
                populations.
                    [``(E) Detection of biological, nuclear, 
                radiological, and chemical weapons of mass destruction.
                    [``(F) Such other activities for which the 
                Secretary determines that national voluntary consensus 
                training standards would be appropriate.
            [``(3) Consistency.--In carrying out this subsection, the 
        Secretary shall ensure that such training standards are 
        consistent with the principles of emergency preparedness for 
        all hazards.
    [``(c) Consultation With Standards Organizations.--In establishing 
national voluntary consensus standards for first responder equipment 
and training under this section, the Secretary shall consult with 
relevant public and private sector groups, including--
            [``(1) the National Institute of Standards and Technology;
            [``(2) the National Fire Protection Association;
            [``(3) the National Association of County and City Health 
        Officials;
            [``(4) the Association of State and Territorial Health 
        Officials;
            [``(5) the American National Standards Institute;
            [``(6) the National Institute of Justice;
            [``(7) the Inter-Agency Board for Equipment Standardization 
        and Interoperability;
            [``(8) the National Public Health Performance Standards 
        Program;
            [``(9) the National Institute for Occupational Safety and 
        Health;
            [``(10) ASTM International;
            [``(11) the International Safety Equipment Association;
            [``(12) the Emergency Management Accreditation Program; and
            [``(13) to the extent the Secretary considers appropriate, 
        other national voluntary consensus standards development 
        organizations, other interested Federal, State, and local 
        agencies, and other interested persons.
    [``(d) Coordination With Secretary of HHS.--In establishing any 
national voluntary consensus standards under this section for first 
responder equipment or training that involve or relate to health 
professionals, including emergency medical professionals, the Secretary 
shall coordinate activities under this section with the Secretary of 
Health and Human Services.''.
    [(b) Definition of Emergency Response Providers.--Paragraph (6) of 
section 2 of the Homeland Security Act of 2002 (Public Law 107-296; 6 
U.S.C. 101(6)) is amended by striking ``includes'' and all that follows 
and inserting ``includes Federal, State, and local governmental and 
nongovernmental emergency public safety, law enforcement, fire, 
emergency response, emergency medical (including hospital emergency 
facilities), and related personnel, organizations, agencies, and 
authorities.''.
    [(c) Temporary Limitations on Application.--
            [(1) 1-year delay in application.--The following provisions 
        of title XVIII of the Homeland Security Act of 2002, as amended 
        by subsection (a), shall not apply during the 1-year period 
        beginning on the date of the enactment of this Act:
                    [(A) Subsections (b), (c), and (e)(4)(A) and (B) of 
                section 1805.
                    [(B) In section 1805(f)(3)(A), the phrase ``, by 
                enhancing the essential capabilities of the 
                applicants,''.
            [(2) 2-year delay in application.--The following provisions 
        of title XVIII of the Homeland Security Act of 2002, as amended 
        by subsection (a), shall not apply during the 2-year period 
        beginning on the date of the enactment of this Act:
            [(A) Subparagraphs (D) and (E) of section 1806(g)(5).
            [(B) Section 1806(i)(3).

[SEC. 5004. MODIFICATION OF HOMELAND SECURITY ADVISORY SYSTEM.

    [(a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 (Public Law 107-296; 6 U.S.C. 121 et seq.) is amended by 
adding at the end the following:

[``SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

    [``(a) In General.--The Secretary shall revise the Homeland 
Security Advisory System referred to in section 201(d)(7) to require 
that any designation of a threat level or other warning shall be 
accompanied by a designation of the geographic regions or economic 
sectors to which the designation applies.
    [``(b) Reports.--The Secretary shall report to the Congress 
annually by not later than December 31 each year regarding the 
geographic region-specific warnings and economic sector-specific 
warnings issued during the preceding fiscal year under the Homeland 
Security Advisory System referred to in section 201(d)(7), and the 
bases for such warnings. The report shall be submitted in unclassified 
form and may, as necessary, include a classified annex.''.
    [(b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by 
inserting after the item relating to section 202 the following:

[``203. Homeland Security Advisory System.''.

[SEC. 5005. COORDINATION OF INDUSTRY EFFORTS.

    [Section 102(f) of the Homeland Security Act of 2002 (Public Law 
107-296; 6 U.S.C. 112(f)) is amended by striking ``and'' after the 
semicolon at the end of paragraph (6), by striking the period at the 
end of paragraph (7) and inserting ``; and'', and by adding at the end 
the following:
            [``(8) coordinating industry efforts, with respect to 
        functions of the Department of Homeland Security, to identify 
        private sector resources and capabilities that could be 
        effective in supplementing Federal, State, and local government 
        agency efforts to prevent or respond to a terrorist attack.''.

[SEC. 5006. SUPERSEDED PROVISION.

    [This subtitle supersedes section 1014 of Public Law 107-56.

[SEC. 5007. SENSE OF CONGRESS REGARDING INTEROPERABLE COMMUNICATIONS.

    [(a) Finding.--The Congress finds that--
            [(1) many first responders working in the same jurisdiction 
        or in different jurisdictions cannot effectively and 
        efficiently communicate with one another; and
            [(2) their inability to do so threatens the public's safety 
        and may result in unnecessary loss of lives and property.
    [(b) Sense of Congress.--It is the sense of the Congress that 
interoperable emergency communications systems and radios should 
continue to be deployed as soon as practicable for use by the first 
responder community, and that upgraded and new digital communications 
systems and new digital radios must meet prevailing national, voluntary 
consensus standards for interoperability.

[SEC. 5008. SENSE OF CONGRESS REGARDING CITIZEN CORPS COUNCILS.

    [(a) Finding.--The Congress finds that Citizen Corps councils help 
to enhance local citizen participation in terrorism preparedness by 
coordinating multiple Citizen Corps programs, developing community 
action plans, assessing possible threats, and identifying local 
resources.
    [(b) Sense of Congress.--It is the sense of the Congress that 
individual Citizen Corps councils should seek to enhance the 
preparedness and response capabilities of all organizations 
participating in the councils, including by providing funding to as 
many of their participating organizations as practicable to promote 
local terrorism preparedness programs.

[SEC. 5009. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION SYSTEM.

    [(a) Study.--The Secretary of Homeland Security, in consultation 
with the heads of other appropriate Federal agencies and 
representatives of providers and participants in the telecommunications 
industry, shall conduct a study to determine whether it is cost-
effective, efficient, and feasible to establish and implement an 
emergency telephonic alert notification system that will--
            [(1) alert persons in the United States of imminent or 
        current hazardous events caused by acts of terrorism; and
            [(2) provide information to individuals regarding 
        appropriate measures that may be undertaken to alleviate or 
        minimize threats to their safety and welfare posed by such 
        events.
    [(b) Technologies to Consider.--In conducting the study, the 
Secretary shall consider the use of the telephone, wireless 
communications, and other existing communications networks to provide 
such notification.
    [(c) Report.--Not later than 9 months after the date of the 
enactment of this Act, the Secretary shall submit to the Congress a 
report regarding the conclusions of the study.

[SEC. 5010. REQUIRED COORDINATION.

    [The Secretary of Homeland Security shall ensure that there is 
effective and ongoing coordination of Federal efforts to prevent, 
prepare for, and respond to acts of terrorism and other major disasters 
and emergencies among the divisions of the Department of Homeland 
Security, including the Directorate of Emergency Preparedness and 
Response and the Office for State and Local Government Coordination and 
Preparedness.

            [Subtitle B--Government Reorganization Authority

[SEC. 5021. AUTHORIZATION OF INTELLIGENCE COMMUNITY REORGANIZATION 
              PLANS.

    [(a) Reorganization Plans.--Section 903(a)(2) of title 5, United 
States Code, is amended to read as follows:
            [``(2) the abolition of all or a part of the functions of 
        an agency;''.
    [(b) Repeal of Limitations.--Section 905 of title 5, United States 
Code, is amended to read as follows:
[``Sec. 905. Limitation on authority.
    [``The authority to submit reorganization plans under this chapter 
is limited to the following organizational units:
            [``(1) The Office of the National Intelligence Director.
            [``(2) The Central Intelligence Agency.
            [``(3) The National Security Agency.
            [``(4) The Defense Intelligence Agency.
            [``(5) The National Geospatial-Intelligence Agency.
            [``(6) The National Reconnaissance Office.
            [``(7) Other offices within the Department of Defense for 
        the collection of specialized national intelligence through 
        reconnaissance programs.
            [``(8) The intelligence elements of the Army, the Navy, the 
        Air Force, the Marine Corps, the Federal Bureau of 
        Investigation, and the Department of Energy.
            [``(9) The Bureau of Intelligence and Research of the 
        Department of State.
            [``(10) The Office of Intelligence Analysis of the 
        Department of Treasury.
            [``(11) The elements of the Department of Homeland Security 
        concerned with the analysis of intelligence information, 
        including the Office of Intelligence of the Coast Guard.
            [``(12) Such other elements of any other department or 
        agency as may be designated by the President, or designated 
        jointly by the National Intelligence Director and the head of 
        the department or agency concerned, as an element of the 
        intelligence community.''.
    [(c) Reorganization Plans.--Section 903(a) of title 5, United 
States Code, is amended--
            [(1) in paragraph (5), by striking ``or'' after the 
        semicolon;
            [(2) in paragraph (6), by striking the period and inserting 
        ``; or''; and
            [(3) by inserting after paragraph (6) the following:
            [``(7) the creation of an agency.''.
    [(d) Application of Chapter.--Chapter 9 of title 5, United States 
Code, is amended by adding at the end the following:
[``Sec. 913. Application of chapter
    [``This chapter shall apply to any reorganization plan transmitted 
to Congress in accordance with section 903(b) on or after the date of 
enactment of this section.''.
    [(e) Technical and Conforming Amendments.--
            [(1) Table of sections.--The table of sections for chapter 
        9 of title 5, United States Code, is amended by adding after 
        the item relating to section 912 the following:

[``913. Application of chapter.''.
            [(2) References.--Chapter 9 of title 5, United States Code, 
        is amended--
                    [(A) in section 908(1), by striking ``on or before 
                December 31, 1984''; and
                    [(B) in section 910, by striking ``Government 
                Operations'' each place it appears and inserting 
                ``Government Reform''.
            [(3) Date modification.--Section 909 of title 5, United 
        States Code, is amended in the first sentence by striking 
        ``19'' and inserting ``20''.

[SEC. 5022. AUTHORITY TO ENTER INTO CONTRACTS AND ISSUE FEDERAL LOAN 
              GUARANTEES.

    [(a) Finding.--Congress finds that there is a public interest in 
protecting high-risk nonprofit organizations from international 
terrorist attacks that would disrupt the vital services such 
organizations provide to the people of the United States and threaten 
the lives and well-being of United States citizens who operate, 
utilize, and live or work in proximity to such organizations.
    [(b) Purposes.--The purposes of this section are to--
            [(1) establish within the Department of Homeland Security a 
        program to protect United States citizens at or near high-risk 
        nonprofit organizations from international terrorist attacks 
        through loan guarantees and Federal contracts for security 
        enhancements and technical assistance;
            [(2) establish a program within the Department of Homeland 
        Security to provide grants to local governments to assist with 
        incremental costs associated with law enforcement in areas in 
        which there are a high concentration of high-risk nonprofit 
        organizations vulnerable to international terrorist attacks; 
        and
            [(3) establish an Office of Community Relations and Civic 
        Affairs within the Department of Homeland Security to focus on 
        security needs of high-risk nonprofit organizations with 
        respect to international terrorist threats.
    [(c) Authority.--The Homeland Security Act of 2002 (6 U.S.C. 101 et 
seq.), as amended by this Act, is further amended by adding at the end 
the following:

      [``TITLE XIX--PROTECTION OF CITIZENS AT HIGH-RISK NONPROFIT 
                             ORGANIZATIONS

[``SEC. 1901. DEFINITIONS.

    [`` In this title:
            [``(1) Contract.--The term `contract' means a contract 
        between the Federal Government and a contractor selected from 
        the list of certified contractors to perform security 
        enhancements or provide technical assistance approved by the 
        Secretary under this title.
            [``(2) Favorable repayment terms.--The term `favorable 
        repayment terms' means the repayment terms of loans offered to 
        nonprofit organizations under this title that--
                    [``(A) are determined by the Secretary, in 
                consultation with the Secretary of the Treasury, to be 
                favorable under current market conditions;
                    [``(B) have interest rates at least 1 full 
                percentage point below the market rate; and
                    [``(C) provide for repayment over a term not less 
                than 25 years.
            [``(3) Nonprofit organization.--The term `nonprofit 
        organization' means an organization that--
                    [``(A) is described under section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under section 501(a) of such Code; and
                    [``(B) is designated by the Secretary under section 
                1903(a).
            [``(4) Security enhancements.--The term `security 
        enhancements'--
                    [``(A) means the purchase and installation of 
                security equipment in real property (including 
                buildings and improvements), owned or leased by a 
                nonprofit organization, specifically in response to the 
                risk of attack at a nonprofit organization by an 
                international terrorist organization;
                    [``(B) includes software security measures; and
                    [``(C) does not include enhancements that would 
                otherwise have been reasonably necessary due to 
                nonterrorist threats.
            [``(5) Technical assistance.--The term `technical 
        assistance'--
                    [``(A) means guidance, assessment, recommendations, 
                and any other provision of information or expertise 
                which assists nonprofit organizations in--
                            [``(i) identifying security needs;
                            [``(ii) purchasing and installing security 
                        enhancements;
                            [``(iii) training employees to use and 
                        maintain security enhancements; or
                            [``(iv) training employees to recognize and 
                        respond to international terrorist threats; and
                    [``(B) does not include technical assistance that 
                would otherwise have been reasonably necessary due to 
                nonterrorist threats.

[``SEC. 1902. AUTHORITY TO ENTER INTO CONTRACTS AND ISSUE FEDERAL LOAN 
              GUARANTEES.

    [``(a) In General.--The Secretary may--
            [``(1) enter into contracts with certified contractors for 
        security enhancements and technical assistance for nonprofit 
        organizations; and
            [``(2) issue Federal loan guarantees to financial 
        institutions in connection with loans made by such institutions 
        to nonprofit organizations for security enhancements and 
        technical assistance.
    [``(b) Loans.--The Secretary may guarantee loans under this title--
            [``(1) only to the extent provided for in advance by 
        appropriations Acts; and
            [``(2) only to the extent such loans have favorable 
        repayment terms.

[``SEC. 1903. ELIGIBILITY CRITERIA.

    [``(a) In General.--The Secretary shall designate nonprofit 
organizations as high-risk nonprofit organizations eligible for 
contracts or loans under this title based on the vulnerability of the 
specific site of the nonprofit organization to international terrorist 
attacks.
    [``(b) Vulnerability Determination.--In determining vulnerability 
to international terrorist attacks and eligibility for security 
enhancements or technical assistance under this title, the Secretary 
shall consider--
            [``(1) threats of international terrorist organizations (as 
        designated by the State Department) against any group of United 
        States citizens who operate or are the principal beneficiaries 
        or users of the nonprofit organization;
            [``(2) prior attacks, within or outside the United States, 
        by international terrorist organizations against the nonprofit 
        organization or entities associated with or similarly situated 
        as the nonprofit organization;
            [``(3) the symbolic value of the site as a highly 
        recognized United States cultural or historical institution 
        that renders the site a possible target of international 
        terrorism;
            [``(4) the role of the nonprofit organization in responding 
        to international terrorist attacks; and
            [``(5) any recommendations of the applicable State Homeland 
        Security Authority established under section 1906 or Federal, 
        State, and local law enforcement authorities.
    [``(c) Documentation.--In order to be eligible for security 
enhancements, technical assistance or loan guarantees under this title, 
the nonprofit organization shall provide the Secretary with 
documentation that--
            [``(1) the nonprofit organization hosted a gathering of at 
        least 100 or more persons at least once each month at the 
        nonprofit organization site during the preceding 12 months; or
            [``(2) the nonprofit organization provides services to at 
        least 500 persons each year at the nonprofit organization site.
    [``(d) Technical Assistance Organizations.--If 2 or more nonprofit 
organizations establish another nonprofit organization to provide 
technical assistance, that established organization shall be eligible 
to receive security enhancements and technical assistance under this 
title based upon the collective risk of the nonprofit organizations it 
serves.

[``SEC. 1904. USE OF LOAN GUARANTEES.

    [``Funds borrowed from lending institutions, which are guaranteed 
by the Federal Government under this title, may be used for technical 
assistance and security enhancements.

[``SEC. 1905. NONPROFIT ORGANIZATION APPLICATIONS.

    [``(a) In General.--A nonprofit organization desiring assistance 
under this title shall submit a separate application for each specific 
site needing security enhancements or technical assistance.
    [``(b) Content.--Each application shall include--
            [``(1) a detailed request for security enhancements and 
        technical assistance, from a list of approved enhancements and 
        assistance issued by the Secretary under this title;
            [``(2) a description of the intended uses of funds to be 
        borrowed under Federal loan guarantees; and
            [``(3) such other information as the Secretary shall 
        require.
    [``(c) Joint Application.--Two or more nonprofit organizations 
located on contiguous sites may submit a joint application.

[``SEC. 1906. REVIEW BY STATE HOMELAND SECURITY AUTHORITIES.

    [``(a) Establishment of State Homeland Security Authorities.--In 
accordance with regulations prescribed by the Secretary, each State may 
establish a State Homeland Security Authority to carry out this title.
    [``(b) Applications.--
            [``(1) Submission.--Applications shall be submitted to the 
        applicable State Homeland Security Authority.
            [``(2) Evaluation.--After consultation with Federal, State, 
        and local law enforcement authorities, the State Homeland 
        Security Authority shall evaluate all applications using the 
        criteria under section 1903 and transmit all qualifying 
        applications to the Secretary ranked by severity of risk of 
        international terrorist attack.
            [``(3) Appeal.--An applicant may appeal the finding that an 
        application is not a qualifying application to the Secretary 
        under procedures that the Secretary shall issue by regulation 
        not later than 90 days after the date of enactment of this 
        title.

[``SEC. 1907. SECURITY ENHANCEMENT AND TECHNICAL ASSISTANCE CONTRACTS 
              AND LOAN GUARANTEES.

    [``(a) In General.--Upon receipt of the applications, the Secretary 
shall select applications for execution of security enhancement and 
technical assistance contracts, or issuance of loan guarantees, giving 
preference to the nonprofit organizations determined to be at greatest 
risk of international terrorist attack based on criteria under section 
1903.
    [``(b) Security Enhancements and Technical Assistance; Followed by 
Loan Guarantees.--The Secretary shall execute security enhancement and 
technical assistance contracts for the highest priority applicants 
until available funds are expended, after which loan guarantees shall 
be made available for additional applicants determined to be at high 
risk, up to the authorized amount of loan guarantees. The Secretary may 
provide with respect to a single application a combination of such 
contracts and loan guarantees.
    [``(c) Joint Applications.--Special preference shall be given to 
joint applications submitted on behalf of multiple nonprofit 
organizations located in contiguous settings.
    [``(d) Maximizing Available Funds.--Subject to subsection (b), the 
Secretary shall execute security enhancement and technical assistance 
contracts in such amounts as to maximize the number of high-risk 
applicants nationwide receiving assistance under this title.
    [``(e) Applicant Notification.--Upon selecting a nonprofit 
organization for assistance under this title, the Secretary shall 
notify the nonprofit organization that the Federal Government is 
prepared to enter into a contract with certified contractors to install 
specified security enhancements or provide specified technical 
assistance at the site of the nonprofit organization.
    [``(f) Certified Contractors.--
            [``(1) In general.--Upon receiving a notification under 
        subsection (e), the nonprofit organization shall select a 
        certified contractor to perform the specified security 
        enhancements, from a list of certified contractors issued and 
        maintained by the Secretary under subsection (j).
            [``(2) List.--The list referred to in paragraph (1) shall 
        be comprised of contractors selected on the basis of--
                    [``(A) technical expertise;
                    [``(B) performance record including quality and 
                timeliness of work performed;
                    [``(C) adequacy of employee criminal background 
                checks; and
                    [``(D) price competitiveness.
            [``(3) Other certified contractors.--The Secretary shall 
        include on the list of certified contractors additional 
        contractors selected by senior officials at State Homeland 
        Security Authorities and the chief executives of county and 
        other local jurisdictions. Such additional certified 
        contractors shall be selected on the basis of the criteria 
        under paragraph (2).
    [``(g) Ensuring the Availability of Contractors.--If the list of 
certified contractors under this section does not include any 
contractors who can begin work on the security enhancements or 
technical assistance within 60 days after applicant notification, the 
nonprofit organization may submit a contractor not currently on the 
list to the Secretary for the Secretary's review. If the Secretary does 
not include the submitted contractor on the list of certified 
contractors within 60 days after the submission and does not place an 
alternative contractor on the list within the same time period (who 
would be available to begin the specified work within that 60-day 
period), the Secretary shall immediately place the submitted contractor 
on the list of certified contractors and such contractor shall remain 
on such list until--
            [``(1) the specified work is completed; or
            [``(2) the Secretary can show cause why such contractor may 
        not retain certification, with such determinations subject to 
        review by the Comptroller General of the United States.
    [``(h) Contracts.--Upon selecting a certified contractor to provide 
security enhancements and technical assistance approved by the 
Secretary under this title, the nonprofit organization shall notify the 
Secretary of such selection. The Secretary shall deliver a contract to 
such contractor within 10 business days after such notification.
    [``(i) Contracts for Additional Work or Upgrades.--A nonprofit 
organization, using its own funds, may enter into an additional 
contract with the certified contractor, for additional or upgraded 
security enhancements or technical assistance. Such additional 
contracts shall be separate contracts between the nonprofit 
organization and the contractor.
    [``(j) Expediting Assistance.--In order to expedite assistance to 
nonprofit organizations, the Secretary shall--
            [``(1) compile a list of approved technical assistance and 
        security enhancement activities within 45 days after the date 
        of enactment of this title;
            [``(2) publish in the Federal Register within 60 days after 
        such date of enactment a request for contractors to submit 
        applications to be placed on the list of certified contractors 
        under this section;
            [``(3) after consultation with the Secretary of the 
        Treasury, publish in the Federal Register within 60 days after 
        such date of enactment, prescribe regulations setting forth the 
        conditions under which loan guarantees shall be issued under 
        this title, including application procedures, expeditious 
        review of applications, underwriting criteria, assignment of 
        loan guarantees, modifications, commercial validity, defaults, 
        and fees; and
            [``(4) publish in the Federal Register within 120 days 
        after such date of enactment (and every 30 days thereafter) a 
        list of certified contractors, including those selected by 
        State Homeland Security Authorities, county, and local 
        officials, with coverage of all 50 States, the District of 
        Columbia, and the territories.

[``SEC. 1908. LOCAL LAW ENFORCEMENT ASSISTANCE GRANTS.

    [``(a) In General.--The Secretary may provide grants to units of 
local government to offset incremental costs associated with law 
enforcement in areas where there is a high concentration of nonprofit 
organizations.
    [``(b) Use.--Grant funds received under this section may be used 
only for personnel costs or for equipment needs specifically related to 
such incremental costs.
    [``(c) Maximization of Impact.--The Secretary shall award grants in 
such amounts as to maximize the impact of available funds in protecting 
nonprofit organizations nationwide from international terrorist 
attacks.

[``SEC. 1909. OFFICE OF COMMUNITY RELATIONS AND CIVIC AFFAIRS.

    [``(a) In General.--There is established within the Department, the 
Office of Community Relations and Civic Affairs to administer grant 
programs for nonprofit organizations and local law enforcement 
assistance.
    [``(b) Additional Responsibilities.--The Office of Community 
Relations and Civic Affairs shall--
            [``(1) coordinate community relations efforts of the 
        Department;
            [``(2) serve as the official liaison of the Secretary to 
        the nonprofit, human and social services, and faith-based 
        communities; and
            [``(3) assist in coordinating the needs of those 
        communities with the Citizen Corps program.

[``SEC. 1910. AUTHORIZATION OF APPROPRIATIONS AND LOAN GUARANTEES.

    [``(a) Nonprofit Organizations Program.--There are authorized to be 
appropriated to the Department to carry out the nonprofit organization 
program under this title, $100,000,000 for fiscal year 2005 and such 
sums as may be necessary for fiscal years 2006 and 2007.
    [``(b) Local Law Enforcement Assistance Grants.--There are 
authorized to be appropriated to the Department for local law 
enforcement assistance grants under section 1908, $50,000,000 for 
fiscal year 2005 and such sums as may be necessary for fiscal years 
2006 and 2007.
    [``(c) Office of Community Relations and Civic Affairs.--There are 
authorized to be appropriated to the Department for the Office of 
Community Relations and Civic Affairs under section 1909, $5,000,000 
for fiscal year 2005 and such sums as may be necessary for fiscal years 
2006 and 2007.
    [``(d) Loan Guarantees.--
            [``(1) Authorization of appropriations.--There are 
        authorized to be appropriated in each of fiscal years 2005, 
        2006, and 2007, such amounts as may be required under the 
        Federal Credit Act with respect to Federal loan guarantees 
        authorized by this title, which shall remain available until 
        expended.
            [``(2) Limitation.--The aggregate value of all loans for 
        which loan guarantees are issued under this title by the 
        Secretary may not exceed $250,000,000 in each of fiscal years 
        2005, 2006, and 2007.''.
    [(d) Clerical Amendment.--The table of contents under section 1(b) 
of the Homeland Security Act of 2002 (6 U.S.C. 101(b)) is amended by 
adding at the end the following:

      [``TITLE XIX--PROTECTION OF CITIZENS AT HIGH-RISK NONPROFIT 
                             ORGANIZATIONS

[``Sec. 1901. Definitions.
[``Sec. 1902. Authority to enter into contracts and issue Federal loan 
                            guarantees.
[``Sec. 1903. Eligibility criteria.
[``Sec. 1904. Use of loan guarantees.
[``Sec. 1905. Nonprofit organization applications.
[``Sec. 1906. Review by State Homeland Security Authorities.
[``Sec. 1907. Security enhancement and technical assistance contracts 
                            and loan guarantees.
[``Sec. 1908. Local law enforcement assistance grants.
[``Sec. 1909. Office of Community Relations and Civic Affairs.
[``Sec. 1910. Authorization of appropriations and loan guarantees.''.

   [Subtitle C--Restructuring Relating to the Department of Homeland 
                  Security and Congressional Oversight

[SEC. 5025. RESPONSIBILITIES OF COUNTERNARCOTICS OFFICE.

    [(a) Amendment.--Section 878 of the Homeland Security Act of 2002 
(6 U.S.C. 458) is amended to read as follows:

[``SEC. 878. OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

    [``(a) Office.--There shall be in the Department an Office of 
counternarcotics Enforcement, which shall be headed by a Director 
appointed by the President, by and with the advice and consent of the 
Senate.
    [``(b) Assignment of Personnel.--(1) The Secretary shall assign to 
the Office permanent staff and other appropriate personnel detailed 
from other subdivisions of the Department to carry out responsibilities 
under this section.
    [``(2) The Secretary shall designate senior employees from each 
appropriate subdivision of the Department that has significant 
counternarcotics responsibilities to act as a liaison between that 
subdivision and the Office of counternarcotics Enforcement.
    [``(c) Limitation on Concurrent Employment.--Except as provided in 
subsection (d), the Director of the Office of counternarcotics 
Enforcement shall not be employed by, assigned to, or serve as the head 
of, any other branch of the Federal Government, any State or local 
government, or any subdivision of the Department other than the Office 
of counternarcotics Enforcement.
    [``(d) Eligibility To Serve as the United States Interdiction 
Coordinator.--The Director of the Office of counternarcotics 
Enforcement may be appointed as the United States Interdiction 
Coordinator by the Director of the Office of National Drug Control 
Policy, and shall be the only person at the Department eligible to be 
so appointed.
    [``(e) Responsibilities.--The Secretary shall direct the Director 
of the Office of counternarcotics Enforcement--
            [``(1) to coordinate policy and operations within the 
        Department, between the Department and other Federal 
        departments and agencies, and between the Department and State 
        and local agencies with respect to stopping the entry of 
        illegal drugs into the United States;
            [``(2) to ensure the adequacy of resources within the 
        Department for stopping the entry of illegal drugs into the 
        United States;
            [``(3) to recommend the appropriate financial and personnel 
        resources necessary to help the Department better fulfill its 
        responsibility to stop the entry of illegal drugs into the 
        United States;
            [``(4) within the JTTF construct to track and sever 
        connections between illegal drug trafficking and terrorism; and
            [``(5) to be a representative of the Department on all task 
        forces, committees, or other entities whose purpose is to 
        coordinate the counternarcotics enforcement activities of the 
        Department and other Federal, state or local agencies.
    [``(f) Reports to Congress.--
            [``(1) Annual budget review.--The Director of the Office of 
        counternarcotics Enforcement shall, not later than 30 days 
        after the submission by the President to Congress of any 
        request for expenditures for the Department, submit to the 
        Committees on Appropriations and the authorizing committees of 
        jurisdiction of the House of Representatives and the Senate a 
        review and evaluation of such request. The review and 
        evaluation shall--
                    [``(A) identify any request or subpart of any 
                request that affects or may affect the counternarcotics 
                activities of the Department or any of its 
                subdivisions, or that affects the ability of the 
                Department or any subdivision of the Department to meet 
                its responsibility to stop the entry of illegal drugs 
                into the United States;
                    [``(B) describe with particularity how such 
                requested funds would be or could be expended in 
                furtherance of counternarcotics activities; and
                    [``(C) compare such requests with requests for 
                expenditures and amounts appropriated by Congress in 
                the previous fiscal year.
            [``(2) Evaluation of counternarcotics activities.--The 
        Director of the Office of counternarcotics Enforcement shall, 
        not later than February 1 of each year, submit to the 
        Committees on Appropriations and the authorizing committees of 
        jurisdiction of the House of Representatives and the Senate a 
        review and evaluation of the counternarcotics activities of the 
        Department for the previous fiscal year. The review and 
        evaluation shall--
                    [``(A) describe the counternarcotics activities of 
                the Department and each subdivision of the Department 
                (whether individually or in cooperation with other 
                subdivisions of the Department, or in cooperation with 
                other branches of the Federal Government or with State 
                or local agencies), including the methods, procedures, 
                and systems (including computer systems) for 
                collecting, analyzing, sharing, and disseminating 
                information concerning narcotics activity within the 
                Department and between the Department and other 
                Federal, State, and local agencies;
                    [``(B) describe the results of those activities, 
                using quantifiable data whenever possible;
                    [``(C) state whether those activities were 
                sufficient to meet the responsibility of the Department 
                to stop the entry of illegal drugs into the United 
                States, including a description of the performance 
                measures of effectiveness that were used in making that 
                determination; and
                    [``(D) recommend, where appropriate, changes to 
                those activities to improve the performance of the 
                Department in meeting its responsibility to stop the 
                entry of illegal drugs into the United States.
            [``(3) Classified or law enforcement sensitive 
        information.--Any content of a review and evaluation described 
        in the reports required in this subsection that involves 
        information classified under criteria established by an 
        Executive order, or whose public disclosure, as determined by 
        the Secretary, would be detrimental to the law enforcement or 
        national security activities of the Department or any other 
        Federal, State, or local agency, shall be presented to Congress 
        separately from the rest of the review and evaluation.''.
    [(b) Conforming Amendment.--Section 103(a) of the Homeland Security 
Act of 2002 (6 U.S.C. 113(a)) is amended--
            [(1) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            [(2) by inserting after paragraph (7) the following new 
        paragraph (8):
            [``(8) A Director of the Office of counternarcotics 
        Enforcement.''.
    [(c) Authorization of Appropriations.--Of the amounts appropriated 
for the Department of Homeland Security for Departmental management and 
operations for fiscal year 2005, there is authorized up to $6,000,000 
to carry out section 878 of the Department of Homeland Security Act of 
2002 (as amended by this section).

[SEC. 5026. USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN 
              EMPLOYEE PERFORMANCE APPRAISALS.

    [(a) In General.--Subtitle E of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 411 and following) is amended by adding at the 
end the following:

[``SEC. 843. USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN 
              EMPLOYEE PERFORMANCE APPRAISALS.

    [``(a) In General.--Each subdivision of the Department that is a 
National Drug Control Program Agency shall include as one of the 
criteria in its performance appraisal system, for each employee 
directly or indirectly involved in the enforcement of Federal, State, 
or local narcotics laws, the performance of that employee with respect 
to the enforcement of Federal, State, or local narcotics laws, relying 
to the greatest extent practicable on objective performance measures, 
including--
            [``(1) the contribution of that employee to seizures of 
        narcotics and arrests of violators of Federal, State, or local 
        narcotics laws; and
            [``(2) the degree to which that employee cooperated with or 
        contributed to the efforts of other employees, either within 
        the Department or other Federal, State, or local agencies, in 
        counternarcotics enforcement.
    [``(b) Definitions.--For purposes of this section--
            [``(1) the term `National Drug Control Program Agency' 
        means--
                    [``(A) a National Drug Control Program Agency, as 
                defined in section 702(7) of the Office of National 
                Drug Control Policy Reauthorization Act of 1998 (as 
                last in effect); and
                    [``(B) any subdivision of the Department that has a 
                significant counternarcotics responsibility, as 
                determined by--
                            [``(i) the counternarcotics officer, 
                        appointed under section 878; or
                            [``(ii) if applicable, the counternarcotics 
                        officer's successor in function (as determined 
                        by the Secretary); and
            [``(2) the term `performance appraisal system' means a 
        system under which periodic appraisals of job performance of 
        employees are made, whether under chapter 43 of title 5, United 
        States Code, or otherwise.''.
    [(b) Clerical Amendment.--The table of contents for the Homeland 
Security Act of 2002 is amended by inserting after the item relating to 
section 842 the following:

[``Sec. 843. Use of counternarcotics enforcement activities in certain 
                            employee performance appraisals.''.

[SEC. 5027. SENSE OF THE HOUSE OF REPRESENTATIVES ON ADDRESSING 
              HOMELAND SECURITY FOR THE AMERICAN PEOPLE.

    [(a) Findings.--The House of Representatives finds that--
            [(1) the House of Representatives created a Select 
        Committee on Homeland Security at the start of the 108th 
        Congress to provide for vigorous congressional oversight for 
        the implementation and operation of the Department of Homeland 
        Security;
            [(2) the House of Representatives also charged the Select 
        Committee on Homeland Security, including its Subcommittee on 
        Rules, with undertaking a thorough and complete study of the 
        operation and implementation of the rules of the House, 
        including the rule governing committee jurisdiction, with 
        respect to the issue of homeland security and to make their 
        recommendations to the Committee on Rules;
            [(3) on February 11, 2003, the Committee on Appropriations 
        of the House of Representatives created a new Subcommittee on 
        Homeland Security with jurisdiction over the Transportation 
        Security Administration, the Coast Guard, and other entities 
        within the Department of Homeland Security to help address the 
        integration of the Department of Homeland Security's 22 legacy 
        agencies; and
            [(4) during the 108th Congress, the House of 
        Representatives has taken several steps to help ensure its 
        continuity in the event of a terrorist attack, including--
                    [(A) adopting H.R. 2844, the Continuity of 
                Representation Act, a bill to require States to hold 
                expedited special elections to fill vacancies in the 
                House of Representatives not later than 45 days after 
                the vacancy is announced by the Speaker in 
                extraordinary circumstances;
                    [(B) granting authority for joint-leadership 
                recalls from a period of adjournment to an alternate 
                place;
                    [(C) allowing for anticipatory consent with the 
                Senate to assemble in an alternate place;
                    [(D) establishing the requirement that the Speaker 
                submit to the Clerk a list of Members in the order in 
                which each shall act as Speaker pro tempore in the case 
                of a vacancy in the Office of Speaker (including 
                physical inability of the Speaker to discharge his 
                duties) until the election of a Speaker or a Speaker 
                pro tempore, exercising such authorities of the Speaker 
                as may be necessary and appropriate to that end;
                    [(E) granting authority for the Speaker to declare 
                an emergency recess of the House subject to the call of 
                the Chair when notified of an imminent threat to the 
                safety of the House;
                    [(F) granting authority for the Speaker, during any 
                recess or adjournment of not more than three days, in 
                consultation with the Minority Leader, to postpone the 
                time for reconvening or to reconvene before the time 
                previously appointed solely to declare the House in 
                recess, in each case within the constitutional three-
                day limit;
                    [(G) establishing the authority for the Speaker to 
                convene the House in an alternate place within the seat 
                of Government; and
                    [(H) codifying the long-standing practice that the 
                death, resignation, expulsion, disqualification, or 
                removal of a Member results in an adjustment of the 
                quorum of the House, which the Speaker shall announce 
                to the House and which shall not be subject to appeal.
    [(b) Sense of the House.--It is the sense of the House of 
Representatives that the Committee on Rules should act upon the 
recommendations provided by the Select Committee on Homeland Security, 
and other committees of existing jurisdiction, regarding the 
jurisdiction over proposed legislation, messages, petitions, memorials 
and other matters relating to homeland security prior to or at the 
start of the 109th Congress.

           [Subtitle D--Improvements to Information Security

[SEC. 5031. AMENDMENTS TO CLINGER-COHEN PROVISIONS TO ENHANCE AGENCY 
              PLANNING FOR INFORMATION SECURITY NEEDS.

    [Chapter 113 of title 40, United States Code, is amended--
            [(1) in section 11302(b), by inserting ``security,'' after 
        ``use,'';
            [(2) in section 11302(c), by inserting ``, including 
        information security risks,'' after ``risks'' both places it 
        appears;
            [(3) in section 11312(b)(1), by striking ``information 
        technology investments'' and inserting ``investments in 
        information technology (including information security 
        needs)''; and
            [(4) in section 11315(b)(2), by inserting ``, secure,'' 
        after ``sound''.

             [Subtitle E--Personnel Management Improvements

                [CHAPTER 1--APPOINTMENTS PROCESS REFORM

[SEC. 5041. APPOINTMENTS TO NATIONAL SECURITY POSITIONS.

    [(a) Definition of National Security Position.--For purposes of 
this section, the term ``national security position'' shall include--
            [(1) those positions that involve activities of the United 
        States Government that are concerned with the protection of the 
        Nation from foreign aggression, terrorism, or espionage, 
        including development of defense plans or policies, 
        intelligence or counterintelligence activities, and related 
        activities concerned with the preservation of military strength 
        of the United States and protection of the homeland; and
            [(2) positions that require regular use of, or access to, 
        classified information.
    [(b) Publication in the Federal Register.--Not later than 60 days 
after the effective date of this section, the Director of the Office of 
Personnel Management shall publish in the Federal Register a list of 
offices that constitute national security positions under section (a) 
for which Senate confirmation is required by law, and the Director 
shall revise such list from time to time as appropriate.
    [(c) Presidential Appointments.--(1) With respect to appointment of 
individuals to offices identified under section (b) and listed in 
sections 5315 or 5316 of title 5, United States Code, which shall arise 
after the publication of the list required by section (b), and 
notwithstanding any other provision of law, the advice and consent of 
the Senate shall not be required, but rather such appointment shall be 
made by the President alone.
    [(2) With respect to appointment of individuals to offices 
identified under section (b) and listed in sections 5313 or 5314 of 
title 5, United States Code, which shall arise after the publication of 
the list required by section (b), and notwithstanding any other 
provision of law, the advice and consent of the Senate shall be 
required, except that if 30 legislative days shall have expired from 
the date on which a nomination is submitted to the Senate without a 
confirmation vote occurring in the Senate, such appointment shall be 
made by the President alone.
    [(3) For the purposes of this subsection, the term ``legislative 
day'' means a day on which the Senate is in session.

[SEC. 5042. PRESIDENTIAL INAUGURAL TRANSITIONS.

    [Subsections (a) and (b) of section 3349a of title 5, United States 
Code, are amended to read as follows:
    [``(a) As used in this section--
            [``(1) the term `inauguration day' means the date on which 
        any person swears or affirms the oath of office as President; 
        and
            [``(2) the term `specified national security position' 
        shall mean not more than 20 positions requiring Senate 
        confirmation, not to include more than 3 heads of Executive 
        Departments, which are designated by the President on or after 
        an inauguration day as positions for which the duties involve 
        substantial responsibility for national security.
    [``(b) With respect to any vacancy that exists during the 60-day 
period beginning on an inauguration day, except where the person 
swearing or affirming the oath of office was the President on the date 
preceding the date of swearing or affirming such oath of office, the 
210-day period under section 3346 or 3348 shall be deemed to begin on 
the later of the date occurring--
            [``(1) 90 days after such transitional inauguration day; or
            [``(2) 90 days after the date on which the vacancy occurs.
    [``(c) With respect to any vacancy in any specified national 
security position that exists during the 60-day period beginning on an 
inauguration day, the requirements of subparagraphs (A) and (B) of 
section 3345(a)(3) shall not apply.''.

[SEC. 5043. PUBLIC FINANCIAL DISCLOSURE FOR THE INTELLIGENCE COMMUNITY.

    [(a) In General.--The Ethics in Government Act of 1978 (5 U.S.C. 
App.) is amended by inserting before title IV the following:

 [``TITLE III--INTELLIGENCE PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS

[``SEC. 301. PERSONS REQUIRED TO FILE.

    [``(a) Within 30 days of assuming the position of an officer or 
employee described in subsection (e), an individual shall file a report 
containing the information described in section 302(b) unless the 
individual has left another position described in subsection (e) within 
30 days prior to assuming such new position or has already filed a 
report under this title with respect to nomination for the new position 
or as a candidate for the position.
    [``(b)(1) Within 5 days of the transmittal by the President to the 
Senate of the nomination of an individual to a position in the 
executive branch, appointment to which requires the advice and consent 
of the Senate, such individual shall file a report containing the 
information described in section 302(b). Such individual shall, not 
later than the date of the first hearing to consider the nomination of 
such individual, make current the report filed pursuant to this 
paragraph by filing the information required by section 302(a)(1)(A) 
with respect to income and honoraria received as of the date which 
occurs 5 days before the date of such hearing. Nothing in this Act 
shall prevent any congressional committee from requesting, as a 
condition of confirmation, any additional financial information from 
any Presidential nominee whose nomination has been referred to that 
committee.
    [``(2) An individual whom the President or the President-elect has 
publicly announced he intends to nominate to a position may file the 
report required by paragraph (1) at any time after that public 
announcement, but not later than is required under the first sentence 
of such paragraph.
    [``(c) Any individual who is an officer or employee described in 
subsection (e) during any calendar year and performs the duties of his 
position or office for a period in excess of 60 days in that calendar 
year shall file on or before May 15 of the succeeding year a report 
containing the information described in section 302(a).
    [``(d) Any individual who occupies a position described in 
subsection (e) shall, on or before the 30th day after termination of 
employment in such position, file a report containing the information 
described in section 302(a) covering the preceding calendar year if the 
report required by subsection (c) has not been filed and covering the 
portion of the calendar year in which such termination occurs up to the 
date the individual left such office or position, unless such 
individual has accepted employment in or takes the oath of office for 
another position described in subsection (e) or section 101(f).
    [``(e) The officers and employees referred to in subsections (a), 
(c), and (d) are those employed in or under--
            [``(1) the Office of the National Intelligence Director; or
            [``(2) an element of the intelligence community, as defined 
        in section 3(4) of the National Security Act of 1947 (50 U.S.C. 
        401a(4)).
    [``(f)(1) Reasonable extensions of time for filing any report may 
be granted under procedures prescribed by the Office of Government 
Ethics, but the total of such extensions shall not exceed 90 days.
    [``(2)(A) In the case of an individual who is serving in the Armed 
Forces, or serving in support of the Armed Forces, in an area while 
that area is designated by the President by Executive order as a combat 
zone for purposes of section 112 of the Internal Revenue Code of 1986, 
the date for the filing of any report shall be extended so that the 
date is 180 days after the later of--
            [``(i) the last day of the individual's service in such 
        area during such designated period; or
            [``(ii) the last day of the individual's hospitalization as 
        a result of injury received or disease contracted while serving 
        in such area.
    [``(B) The Office of Government Ethics, in consultation with the 
Secretary of Defense, may prescribe procedures under this paragraph.
    [``(g) The Director of the Office of Government Ethics may grant a 
publicly available request for a waiver of any reporting requirement 
under this title with respect to an individual if the Director 
determines that--
            [``(1) such individual is not a full-time employee of the 
        Government;
            [``(2) such individual is able to provide special services 
        needed by the Government;
            [``(3) it is unlikely that such individual's outside 
        employment or financial interests will create a conflict of 
        interest; and
            [``(4) public financial disclosure by such individual is 
        not necessary in the circumstances.
    [``(h)(1) The Director of the Office of Government Ethics may 
establish procedures under which an incoming individual can take 
actions to avoid conflicts of interest while in office if the 
individual has holdings or other financial interests that raise 
conflict concerns.
    [``(2) The actions referenced in paragraph (1) may include, but are 
not limited to, signed agreements with the individual's employing 
agency, the establishment of blind trusts, or requirements for 
divesting interests or holdings while in office.

[``SEC. 302. CONTENTS OF REPORTS.

    [``(a) Each report filed pursuant to section 301 (c) and (d) shall 
include a full and complete statement with respect to the following:
            [``(1)(A) The source, description, and category of value of 
        income (other than income referred to in subparagraph (B)) from 
        any source (other than from current employment by the United 
        States Government), received during the preceding calendar 
        year, aggregating more than $500 in value, except that 
        honoraria received during Government service by an officer or 
        employee shall include, in addition to the source, the exact 
        amount and the date it was received.
            [``(B) The source and description of investment income 
        which may include but is not limited to dividends, rents, 
        interest, and capital gains, received during the preceding 
        calendar year which exceeds $500 in amount or value.
            [``(C) The categories for reporting the amount for income 
        covered in subparagraphs (A) and (B) are--
                    [``(i) greater than $500 but not more than $20,000;
                    [``(ii) greater than $20,000 but not more than 
                $100,000;
                    [``(iii) greater than $100,000 but not more than 
                $1,000,000;
                    [``(iv) greater than $1,000,000 but not more than 
                $2,500,000; and
                    [``(v) greater than $2,500,000.
            [``(2)(A) The identity of the source, a brief description, 
        and the value of all gifts aggregating more than the minimal 
        value as established by section 7342(a)(5) of title 5, United 
        States Code, or $250, whichever is greater, received from any 
        source other than a relative of the reporting individual during 
        the preceding calendar year, except that any food, lodging, or 
        entertainment received as personal hospitality of an individual 
        need not be reported, and any gift with a fair market value of 
        $100 or less, as adjusted at the same time and by the same 
        percentage as the minimal value is adjusted, need not be 
        aggregated for purposes of this subparagraph.
            [``(B) The identity of the source and a brief description 
        (including dates of travel and nature of expenses provided) of 
        reimbursements received from any source aggregating more than 
        the minimal value as established by section 7342(a)(5) of title 
        5, United States Code, or $250, whichever is greater and 
        received during the preceding calendar year.
            [``(3) The identity and category of value of any interest 
        in property held during the preceding calendar year in a trade 
        or business, or for investment or the production of income, 
        which has a fair market value which exceeds $5,000 as of the 
        close of the preceding calendar year, excluding any personal 
        liability owed to the reporting individual by a spouse, or by a 
        parent, brother, sister, or child of the reporting individual 
        or of the reporting individual's spouse, or any deposit 
        accounts aggregating $100,000 or less in a financial 
        institution, or any Federal Government securities aggregating 
        $100,000 or less.
            [``(4) The identity and category of value of the total 
        liabilities owed to any creditor other than a spouse, or a 
        parent, brother, sister, or child of the reporting individual 
        or of the reporting individual's spouse which exceed $20,000 at 
        any time during the preceding calendar year, excluding--
                    [``(A) any mortgage secured by real property which 
                is a personal residence of the reporting individual or 
                his spouse; and
                    [``(B) any loan secured by a personal motor 
                vehicle, household furniture, or appliances, which loan 
                does not exceed the purchase price of the item which 
                secures it.
        With respect to revolving charge accounts, only those with an 
        outstanding liability which exceeds $20,000 as of the close of 
        the preceding calendar year need be reported under this 
        paragraph. Notwithstanding the preceding sentence, individuals 
        required to file pursuant to section 301(b) shall also report 
        the aggregate sum of the outstanding balances of all revolving 
        charge accounts as of any date that is within 30 days of the 
        date of filing if the aggregate sum of those balances exceeds 
        $20,000.
            [``(5) Except as provided in this paragraph, a brief 
        description of any real property, other than property used 
        solely as a personal residence of the reporting individual or 
        his spouse, or stocks, bonds, commodities futures, and other 
        forms of securities, if--
                    [``(A) purchased, sold, or exchanged during the 
                preceding calendar year;
                    [``(B) the value of the transaction exceeded 
                $5,000; and
                    [``(C) the property or security is not already 
                required to be reported as a source of income pursuant 
                to paragraph (1)(B) or as an asset pursuant to 
                paragraph (3).
            [``(6)(A) The identity of all positions held on or before 
        the date of filing during the current calendar year (and, for 
        the first report filed by an individual, during the 1-year 
        period preceding such calendar year) as an officer, director, 
        trustee, partner, proprietor, representative, employee, or 
        consultant of any corporation, company, firm, partnership, or 
        other business enterprise, any nonprofit organization, any 
        labor organization, or any educational or other institution 
        other than the United States Government. This subparagraph 
        shall not require the reporting of positions held in any 
        religious, social, fraternal, or political entity and positions 
        solely of an honorary nature.
            [``(B) If any person, other than a person reported as a 
        source of income under paragraph (1)(A) or the United States 
        Government, paid a nonelected reporting individual compensation 
        in excess of $25,000 in the calendar year in which, or the 
        calendar year prior to the calendar year in which, the 
        individual files his first report under this title, the 
        individual shall include in the report--
                    [``(i) the identity of each source of such 
                compensation; and
                    [``(ii) a brief description of the nature of the 
                duties performed or services rendered by the reporting 
                individual for each such source.
        The preceding sentence shall not require any individual to 
        include in such report any information which is considered 
        confidential as a result of a privileged relationship, 
        established by law, between such individual and any person or 
        any information which the person for whom the services are 
        provided has a reasonable expectation of privacy, nor shall it 
        require an individual to report any information with respect to 
        any person for whom services were provided by any firm or 
        association of which such individual was a member, partner, or 
        employee unless such individual was directly involved in the 
        provision of such services.
            [``(7) A description of parties to and terms of any 
        agreement or arrangement with respect to (A) future employment; 
        (B) a leave of absence during the period of the reporting 
        individual's Government service; (C) continuation of payments 
        by a former employer other than the United States Government; 
        and (D) continuing participation in an employee welfare or 
        benefit plan maintained by a former employer. The description 
        of any formal agreement for future employment shall include the 
        date on which that agreement was entered into.
            [``(8) The category of the total cash value of any interest 
        of the reporting individual in a qualified blind trust.
    [``(b)(1) Each report filed pursuant to subsections (a) and (b) of 
section 301 shall include a full and complete statement with respect to 
the information required by--
            [``(A) paragraphs (1) and (6) of subsection (a) for the 
        year of filing and the preceding calendar year,
            [``(B) paragraphs (3) and (4) of subsection (a) as of the 
        date specified in the report but which is less than 31 days 
        before the filing date, and
            [``(C) paragraph (7) of subsection (a) as of the filing 
        date but for periods described in such paragraph.
    [``(2)(A) In lieu of filling out 1 or more schedules of a financial 
disclosure form, an individual may supply the required information in 
an alternative format, pursuant to either rules adopted by the Office 
of Government Ethics or pursuant to a specific written determination by 
the Director of the Office of Government Ethics for a reporting 
individual.
    [``(B) In lieu of indicating the category of amount or value of any 
item contained in any report filed under this title, a reporting 
individual may indicate the exact dollar amount of such item.
    [``(c)(1) In the case of any individual referred to in section 
301(c), the Office of Government Ethics may by regulation require a 
reporting period to include any period in which the individual served 
as an officer or employee described in section 301(e) and the period 
would not otherwise be covered by any public report filed pursuant to 
this title.
    [``(2) In the case of any individual referred to in section 301(d), 
any reference to the preceding calendar year shall be considered also 
to include that part of the calendar year of filing up to the date of 
the termination of employment.
    [``(d)(1) The categories for reporting the amount or value of the 
items covered in subsection (a)(3) are--
            [``(A) greater than $5,000 but not more than $15,000;
            [``(B) greater than $15,000 but not more than $100,000;
            [``(C) greater than $100,000 but not more than $1,000,000;
            [``(D) greater than $1,000,000 but not more than 
        $2,500,000; and
            [``(E) greater than $2,500,000.
    [``(2) For the purposes of subsection (a)(3) if the current value 
of an interest in real property (or an interest in a real estate 
partnership) is not ascertainable without an appraisal, an individual 
may list (A) the date of purchase and the purchase price of the 
interest in the real property, or (B) the assessed value of the real 
property for tax purposes, adjusted to reflect the market value of the 
property used for the assessment if the assessed value is computed at 
less than 100 percent of such market value, but such individual shall 
include in his report a full and complete description of the method 
used to determine such assessed value, instead of specifying a category 
of value pursuant to paragraph (1). If the current value of any other 
item required to be reported under subsection (a)(3) is not 
ascertainable without an appraisal, such individual may list the book 
value of a corporation whose stock is not publicly traded, the net 
worth of a business partnership, the equity value of an individually 
owned business, or with respect to other holdings, any recognized 
indication of value, but such individual shall include in his report a 
full and complete description of the method used in determining such 
value. In lieu of any value referred to in the preceding sentence, an 
individual may list the assessed value of the item for tax purposes, 
adjusted to reflect the market value of the item used for the 
assessment if the assessed value is computed at less than 100 percent 
of such market value, but a full and complete description of the method 
used in determining such assessed value shall be included in the 
report.
    [``(3) The categories for reporting the amount or value of the 
items covered in paragraphs (4) and (8) of subsection (a) are--
            [``(A) greater than $20,000 but not more than $100,000;
            [``(B) greater than $100,000 but not more than $500,000;
            [``(C) greater than $500,000 but not more than $1,000,000; 
        and
            [``(D) greater than $1,000,000.
    [``(e)(1) Except as provided in subparagraph (F), each report 
required by section 301 shall also contain information listed in 
paragraphs (1) through (5) of subsection (a) respecting the spouse or 
dependent child of the reporting individual as follows:
            [``(A) The sources of earned income earned by a spouse 
        including honoraria which exceed $500 except that, with respect 
        to earned income if the spouse is self-employed in business or 
        a profession, only the nature of such business or profession 
        need be reported.
            [``(B) All information required to be reported in 
        subsection (a)(1)(B) with respect to investment income derived 
        by a spouse or dependent child.
            [``(C) In the case of any gifts received by a spouse or 
        dependent child which are not received totally independent of 
        the relationship of the spouse or dependent child to the 
        reporting individual, the identity of the source and a brief 
        description of gifts of transportation, lodging, food, or 
        entertainment and a brief description and the value of other 
        gifts.
            [``(D) In the case of any reimbursements received by a 
        spouse or dependent child which are not received totally 
        independent of the relationship of the spouse or dependent 
        child to the reporting individual, the identity of the source 
        and a brief description of each such reimbursement.
            [``(E) In the case of items described in paragraphs (3) 
        through (5) of subsection (a), all information required to be 
        reported under these paragraphs other than items which the 
        reporting individual certifies (i) represent the spouse's or 
        dependent child's sole financial interest or responsibility and 
        which the reporting individual has no knowledge of, (ii) are 
        not in any way, past or present, derived from the income, 
        assets, or activities of the reporting individual, and (iii) 
        that he neither derives, nor expects to derive, any financial 
        or economic benefit.
            [``(F) Reports required by subsections (a), (b), and (c) of 
        section 301 shall, with respect to the spouse and dependent 
        child of the reporting individual, only contain information 
        listed in paragraphs (1), (3), and (4) of subsection (a).
    [``(2) No report shall be required with respect to a spouse living 
separate and apart from the reporting individual with the intention of 
terminating the marriage or providing for permanent separation, or with 
respect to any income or obligations of an individual arising from the 
dissolution of his marriage or the permanent separation from his 
spouse.
    [``(f)(1) Except as provided in paragraph (2), each reporting 
individual shall report the information required to be reported 
pursuant to subsections (a), (b), and (c) with respect to the holdings 
of and the income from a trust or other financial arrangement from 
which income is received by, or with respect to which a beneficial 
interest in principal or income is held by, such individual, his 
spouse, or any dependent child.
    [``(2) A reporting individual need not report the holdings of or 
the source of income from any of the holdings of--
            [``(A) any qualified blind trust (as defined in paragraph 
        (3));
            [``(B) a trust--
                    [``(i) which was not created directly by such 
                individual, his spouse, or any dependent child, and
                    [``(ii) the holdings or sources of income of which 
                such individual, his spouse, and any dependent child 
                have no knowledge; or
            [``(C) an entity described under the provisions of 
        paragraph (8), but such individual shall report the category of 
        the amount of income received by him, his spouse, or any 
        dependent child from the entity under subsection (a)(1)(B).
    [``(3) For purposes of this subsection, the term `qualified blind 
trust' includes any trust in which a reporting individual, his spouse, 
or any minor or dependent child has a beneficial interest in the 
principal or income, and which meets the following requirements:
            [``(A)(i) The trustee of the trust and any other entity 
        designated in the trust instrument to perform fiduciary duties 
        is a financial institution, an attorney, a certified public 
        accountant, a broker, or an investment advisor who--
                    [``(I) is independent of and not associated with 
                any interested party so that the trustee or other 
                person cannot be controlled or influenced in the 
                administration of the trust by any interested party;
                    [``(II) is not and has not been an employee of or 
                affiliated with any interested party and is not a 
                partner of, or involved in any joint venture or other 
                investment with, any interested party; and
                    [``(III) is not a relative of any interested party.
            [``(ii) Any officer or employee of a trustee or other 
        entity who is involved in the management or control of the 
        trust--
                    [``(I) is independent of and not associated with 
                any interested party so that such officer or employee 
                cannot be controlled or influenced in the 
                administration of the trust by any interested party;
                    [``(II) is not a partner of, or involved in any 
                joint venture or other investment with, any interested 
                party; and
                    [``(III) is not a relative of any interested party.
            [``(B) Any asset transferred to the trust by an interested 
        party is free of any restriction with respect to its transfer 
        or sale unless such restriction is expressly approved by the 
        Office of Government Ethics.
            [``(C) The trust instrument which establishes the trust 
        provides that--
                    [``(i) except to the extent provided in 
                subparagraph (B), the trustee in the exercise of his 
                authority and discretion to manage and control the 
                assets of the trust shall not consult or notify any 
                interested party;
                    [``(ii) the trust shall not contain any asset the 
                holding of which by an interested party is prohibited 
                by any law or regulation;
                    [``(iii) the trustee shall promptly notify the 
                reporting individual and the Office of Government 
                Ethics when the holdings of any particular asset 
                transferred to the trust by any interested party are 
                disposed of or when the value of such holding is less 
                than $1,000;
                    [``(iv) the trust tax return shall be prepared by 
                the trustee or his designee, and such return and any 
                information relating thereto (other than the trust 
                income summarized in appropriate categories necessary 
                to complete an interested party's tax return), shall 
                not be disclosed to any interested party;
                    [``(v) an interested party shall not receive any 
                report on the holdings and sources of income of the 
                trust, except a report at the end of each calendar 
                quarter with respect to the total cash value of the 
                interest of the interested party in the trust or the 
                net income or loss of the trust or any reports 
                necessary to enable the interested party to complete an 
                individual tax return required by law or to provide the 
                information required by subsection (a)(1) of this 
                section, but such report shall not identify any asset 
                or holding;
                    [``(vi) except for communications which solely 
                consist of requests for distributions of cash or other 
                unspecified assets of the trust, there shall be no 
                direct or indirect communication between the trustee 
                and an interested party with respect to the trust 
                unless such communication is in writing and unless it 
                relates only (I) to the general financial interest and 
                needs of the interested party (including, but not 
                limited to, an interest in maximizing income or long-
                term capital gain), (II) to the notification of the 
                trustee of a law or regulation subsequently applicable 
                to the reporting individual which prohibits the 
                interested party from holding an asset, which 
                notification directs that the asset not be held by the 
                trust, or (III) to directions to the trustee to sell 
                all of an asset initially placed in the trust by an 
                interested party which in the determination of the 
                reporting individual creates a conflict of interest or 
                the appearance thereof due to the subsequent assumption 
                of duties by the reporting individual (but nothing 
                herein shall require any such direction); and
                    [``(vii) the interested parties shall make no 
                effort to obtain information with respect to the 
                holdings of the trust, including obtaining a copy of 
                any trust tax return filed or any information relating 
                thereto except as otherwise provided in this 
                subsection.
            [``(D) The proposed trust instrument and the proposed 
        trustee is approved by the Office of Government Ethics.
            [``(E) For purposes of this subsection, `interested party' 
        means a reporting individual, his spouse, and any minor or 
        dependent child; `broker' has the meaning set forth in section 
        3(a)(4) of the Securities and Exchange Act of 1934 (15 U.S.C. 
        78c(a)(4)); and `investment adviser' includes any investment 
        adviser who, as determined under regulations prescribed by the 
        supervising ethics office, is generally involved in his role as 
        such an adviser in the management or control of trusts.
    [``(4)(A) An asset placed in a trust by an interested party shall 
be considered a financial interest of the reporting individual, for the 
purposes of any applicable conflict of interest statutes, regulations, 
or rules of the Federal Government (including section 208 of title 18, 
United States Code), until such time as the reporting individual is 
notified by the trustee that such asset has been disposed of, or has a 
value of less than $1,000.
    [``(B)(i) The provisions of subparagraph (A) shall not apply with 
respect to a trust created for the benefit of a reporting individual, 
or the spouse, dependent child, or minor child of such a person, if the 
Office of Government Ethics finds that--
            [``(I) the assets placed in the trust consist of a well-
        diversified portfolio of readily marketable securities;
            [``(II) none of the assets consist of securities of 
        entities having substantial activities in the area of the 
        reporting individual's primary area of responsibility;
            [``(III) the trust instrument prohibits the trustee, 
        notwithstanding the provisions of paragraph (3)(C) (iii) and 
        (iv), from making public or informing any interested party of 
        the sale of any securities;
            [``(IV) the trustee is given power of attorney, 
        notwithstanding the provisions of paragraph (3)(C)(v), to 
        prepare on behalf of any interested party the personal income 
        tax returns and similar returns which may contain information 
        relating to the trust; and
            [``(V) except as otherwise provided in this paragraph, the 
        trust instrument provides (or in the case of a trust which by 
        its terms does not permit amendment, the trustee, the reporting 
        individual, and any other interested party agree in writing) 
        that the trust shall be administered in accordance with the 
        requirements of this subsection and the trustee of such trust 
        meets the requirements of paragraph (3)(A).
    [``(ii) In any instance covered by subparagraph (B) in which the 
reporting individual is an individual whose nomination is being 
considered by a congressional committee, the reporting individual shall 
inform the congressional committee considering his nomination before or 
during the period of such individual's confirmation hearing of his 
intention to comply with this paragraph.
    [``(5)(A) The reporting individual shall, within 30 days after a 
qualified blind trust is approved by the Office of Government Ethics, 
file with such office a copy of--
            [``(i) the executed trust instrument of such trust (other 
        than those provisions which relate to the testamentary 
        disposition of the trust assets), and
            [``(ii) a list of the assets which were transferred to such 
        trust, including the category of value of each asset as 
        determined under subsection (d).
This subparagraph shall not apply with respect to a trust meeting the 
requirements for being considered a qualified blind trust under 
paragraph (7).
    [``(B) The reporting individual shall, within 30 days of 
transferring an asset (other than cash) to a previously established 
qualified blind trust, notify the Office of Government Ethics of the 
identity of each such asset and the category of value of each asset as 
determined under subsection (d) of this section.
    [``(C) Within 30 days of the dissolution of a qualified blind 
trust, a reporting individual shall notify the Office of Government 
Ethics of such dissolution.
    [``(D) Documents filed under subparagraphs (A), (B), and (C) and 
the lists provided by the trustee of assets placed in the trust by an 
interested party which have been sold shall be made available to the 
public in the same manner as a report is made available under section 
305 and the provisions of that section shall apply with respect to such 
documents and lists.
    [``(E) A copy of each written communication with respect to the 
trust under paragraph (3)(C)(vi) shall be filed by the person 
initiating the communication with the Office of Government Ethics 
within 5 days of the date of the communication.
    [``(6)(A) A trustee of a qualified blind trust shall not knowingly 
and willfully, or negligently, (i) disclose any information to an 
interested party with respect to such trust that may not be disclosed 
under paragraph (3); (ii) acquire any holding the ownership of which is 
prohibited by the trust instrument; (iii) solicit advice from any 
interested party with respect to such trust, which solicitation is 
prohibited by paragraph (3) or the trust agreement; or (iv) fail to 
file any document required by this subsection.
    [``(B) A reporting individual shall not knowingly and willfully, or 
negligently, (i) solicit or receive any information with respect to a 
qualified blind trust of which he is an interested party that may not 
be disclosed under paragraph (3)(C) or (ii) fail to file any document 
required by this subsection.
    [``(C)(i) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully violates the provisions of subparagraph (A) or 
(B). The court in which such action is brought may assess against such 
individual a civil penalty in any amount not to exceed $10,000.
    [``(ii) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
negligently violates the provisions of subparagraph (A) or (B). The 
court in which such action is brought may assess against such 
individual a civil penalty in any amount not to exceed $5,000.
    [``(7) Any trust may be considered to be a qualified blind trust 
if--
            [``(A) the trust instrument is amended to comply with the 
        requirements of paragraph (3) or, in the case of a trust 
        instrument which does not by its terms permit amendment, the 
        trustee, the reporting individual, and any other interested 
        party agree in writing that the trust shall be administered in 
        accordance with the requirements of this subsection and the 
        trustee of such trust meets the requirements of paragraph 
        (3)(A); except that in the case of any interested party who is 
        a dependent child, a parent or guardian of such child may 
        execute the agreement referred to in this subparagraph;
            [``(B) a copy of the trust instrument (except testamentary 
        provisions) and a copy of the agreement referred to in 
        subparagraph (A), and a list of the assets held by the trust at 
        the time of approval by the Office of Government Ethics, 
        including the category of value of each asset as determined 
        under subsection (d), are filed with such office and made 
        available to the public as provided under paragraph (5)(D); and
            [``(C) the Director of the Office of Government Ethics 
        determines that approval of the trust arrangement as a 
        qualified blind trust is in the particular case appropriate to 
        assure compliance with applicable laws and regulations.
    [``(8) A reporting individual shall not be required to report the 
financial interests held by a widely held investment fund (whether such 
fund is a mutual fund, regulated investment company, pension or 
deferred compensation plan, or other investment fund), if--
            [``(A)(i) the fund is publicly traded; or
            [``(ii) the assets of the fund are widely diversified; and
            [``(B) the reporting individual neither exercises control 
        over nor has the ability to exercise control over the financial 
        interests held by the fund.
    [``(9)(A)(i) A reporting individual described in subsection (a) or 
(b) of section 301 shall not be required to report the holdings or 
sources of income of any trust or investment fund where--
            [``(I) reporting would result in the disclosure of assets 
        or sources of income of another person whose interests are not 
        required to be reported by the reporting individual under this 
        title;
            [``(II) the disclosure of such assets and sources of income 
        is prohibited by contract or the assets and sources of income 
        are not otherwise publicly available; and
            [``(III) the reporting individual has executed a written 
        ethics agreement which contains a general description of the 
        trust or investment fund and a commitment to divest the 
        interest in the trust or investment fund not later than 90 days 
        after the date of the agreement.
    [``(ii) An agreement described under clause (i)(III) shall be 
attached to the public financial disclosure which would otherwise 
include a listing of the holdings or sources of income from this trust 
or investment fund.
    [``(B)(i) The provisions of subparagraph (A) shall apply to an 
individual described in subsection (c) or (d) of section 301 if--
            [``(I) the interest in the trust or investment fund is 
        acquired involuntarily during the period to be covered by the 
        report, such as through marriage or inheritance, and
            [``(II) for an individual described in subsection (c), the 
        individual executes a written ethics agreement containing a 
        commitment to divest the interest no later than 90 days after 
        the date on which the report is due.
    [``(ii) An agreement described under clause (i)(II) shall be 
attached to the public financial disclosure which would otherwise 
include a listing of the holdings or sources of income from this trust 
or investment fund.
    [``(iii) Failure to divest within the time specified or after an 
extension granted by the Director of the Office of Government Ethics 
for good cause shown shall result in an immediate requirement to report 
as specified in paragraph (1).
    [``(g) Political campaign funds, including campaign receipts and 
expenditures, need not be included in any report filed pursuant to this 
title.
    [``(h) A report filed pursuant to subsection (a), (c), or (d) of 
section 301 need not contain the information described in subparagraphs 
(A), (B), and (C) of subsection (a)(2) with respect to gifts and 
reimbursements received in a period when the reporting individual was 
not an officer or employee of the Federal Government.
    [``(i) A reporting individual shall not be required under this 
title to report--
            [``(1) financial interests in or income derived from--
                    [``(A) any retirement system under title 5, United 
                States Code (including the Thrift Savings Plan under 
                subchapter III of chapter 84 of such title); or
                    [``(B) any other retirement system maintained by 
                the United States for officers or employees of the 
                United States, including the President, or for members 
                of the uniformed services; or
            [``(2) benefits received under the Social Security Act (42 
        U.S.C. 301 et seq.).
    [``(j)(1) Every month, each designated agency ethics officer shall 
submit to the Office of Government Ethics notification of any waiver of 
criminal conflict of interest laws granted to any individual in the 
preceding month with respect to a filing under this title that is not 
confidential.
    [``(2) Every month, the Office of Government Ethics shall make 
publicly available on the Internet--
            [``(A) all notifications of waivers submitted under 
        paragraph (1) in the preceding month; and
            [``(B) notification of all waivers granted by the Office of 
        Government Ethics in the preceding month.
    [``(k) A full copy of any waiver of criminal conflict of interest 
laws granted shall be included with any filing required under this 
title with respect to the year in which the waiver is granted.
    [``(l) The Office of Government Ethics shall provide upon request 
any waiver on file for which notice has been published.

[``SEC. 303. FILING OF REPORTS.

    [``(a) Except as otherwise provided in this section, the reports 
required under this title shall be filed by the reporting individual 
with the designated agency ethics official at the agency by which he is 
employed (or in the case of an individual described in section 301(d), 
was employed) or in which he will serve. The date any report is 
received (and the date of receipt of any supplemental report) shall be 
noted on such report by such official.
    [``(b) Reports required to be filed under this title by the 
Director of the Office of Government Ethics shall be filed in the 
Office of Government Ethics and, immediately after being filed, shall 
be made available to the public in accordance with this title.
    [``(c) Reports required of members of the uniformed services shall 
be filed with the Secretary concerned.
    [``(d) The Office of Government Ethics shall develop and make 
available forms for reporting the information required by this title.

[``SEC. 304. FAILURE TO FILE OR FILING FALSE REPORTS.

    [``(a) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully falsifies or who knowingly and willfully fails 
to file or report any information that such individual is required to 
report pursuant to section 302. The court in which such action is 
brought may assess against such individual a civil penalty in any 
amount, not to exceed $10,000.
    [``(b) The head of each agency, each Secretary concerned, or the 
Director of the Office of Government Ethics, as the case may be, shall 
refer to the Attorney General the name of any individual which such 
official has reasonable cause to believe has willfully failed to file a 
report or has willfully falsified or willfully failed to file 
information required to be reported.
    [``(c) The President, the Vice President, the Secretary concerned, 
or the head of each agency may take any appropriate personnel or other 
action in accordance with applicable law or regulation against any 
individual failing to file a report or falsifying or failing to report 
information required to be reported.
    [``(d)(1) Any individual who files a report required to be filed 
under this title more than 30 days after the later of--
            [``(A) the date such report is required to be filed 
        pursuant to the provisions of this title and the rules and 
        regulations promulgated thereunder; or
            [``(B) if a filing extension is granted to such individual 
        under section 301(g), the last day of the filing extension 
        period, shall, at the direction of and pursuant to regulations 
        issued by the Office of Government Ethics, pay a filing fee of 
        $500. All such fees shall be deposited in the miscellaneous 
        receipts of the Treasury. The authority under this paragraph to 
        direct the payment of a filing fee may be delegated by the 
        Office of Government Ethics to other agencies in the executive 
        branch.
    [``(2) The Office of Government Ethics may waive the filing fee 
under this subsection for good cause shown.

[``SEC. 305. CUSTODY OF AND PUBLIC ACCESS TO REPORTS.

    [``Any report filed with or transmitted to an agency or the Office 
of Government Ethics pursuant to this title shall be retained by such 
agency or Office, as the case may be, for a period of 6 years after 
receipt of the report. After such 6-year period the report shall be 
destroyed unless needed in an ongoing investigation, except that in the 
case of an individual who filed the report pursuant to section 301(b) 
and was not subsequently confirmed by the Senate, such reports shall be 
destroyed 1 year after the individual is no longer under consideration 
by the Senate, unless needed in an ongoing investigation.

[``SEC. 306. REVIEW OF REPORTS.

    [``(a) Each designated agency ethics official or Secretary 
concerned shall make provisions to ensure that each report filed with 
him under this title is reviewed within 60 days after the date of such 
filing, except that the Director of the Office of Government Ethics 
shall review only those reports required to be transmitted to him under 
this title within 60 days after the date of transmittal.
    [``(b)(1) If after reviewing any report under subsection (a), the 
Director of the Office of Government Ethics, the Secretary concerned, 
or the designated agency ethics official, as the case may be, is of the 
opinion that on the basis of information contained in such report the 
individual submitting such report is in compliance with applicable laws 
and regulations, he shall state such opinion on the report, and shall 
sign such report.
    [``(2) If the Director of the Office of Government Ethics, the 
Secretary concerned, or the designated agency ethics official after 
reviewing any report under subsection (a)--
            [``(A) believes additional information is required to be 
        submitted to complete the form or to perform a conflict of 
        interest analysis, he shall notify the individual submitting 
        such report what additional information is required and the 
        time by which it must be submitted, or
            [``(B) is of the opinion, on the basis of information 
        submitted, that the individual is not in compliance with 
        applicable laws and regulations, he shall notify the 
        individual, afford a reasonable opportunity for a written or 
        oral response, and after consideration of such response, reach 
        an opinion as to whether or not, on the basis of information 
        submitted, the individual is in compliance with such laws and 
        regulations.
    [``(3) If the Director of the Office of Government Ethics, the 
Secretary concerned, or the designated agency ethics official reaches 
an opinion under paragraph (2)(B) that an individual is not in 
compliance with applicable laws and regulations, the official shall 
notify the individual of that opinion and, after an opportunity for 
personal consultation (if practicable), determine and notify the 
individual of which steps, if any, would in the opinion of such 
official be appropriate for assuring compliance with such laws and 
regulations and the date by which such steps should be taken. Such 
steps may include, as appropriate--
            [``(A) divestiture,
            [``(B) restitution,
            [``(C) the establishment of a blind trust,
            [``(D) request for an exemption under section 208(b) of 
        title 18, United States Code, or
            [``(E) voluntary request for transfer, reassignment, 
        limitation of duties, or resignation.
The use of any such steps shall be in accordance with such rules or 
regulations as the Office of Government Ethics may prescribe.
    [``(4) If steps for assuring compliance with applicable laws and 
regulations are not taken by the date set under paragraph (3) by a 
member of the Foreign Service or the uniformed services, the Secretary 
concerned shall take appropriate action.
    [``(5) If steps for assuring compliance with applicable laws and 
regulations are not taken by the date set under paragraph (3) by any 
other officer or employee, the matter shall be referred to the head of 
the appropriate agency for appropriate action.
    [``(6) The Office of Government Ethics may render advisory opinions 
interpreting this title. Notwithstanding any other provision of law, 
the individual to whom a public advisory opinion is rendered in 
accordance with this paragraph, and any other individual covered by 
this title who is involved in a fact situation which is 
indistinguishable in all material aspects, and who acts in good faith 
in accordance with the provisions and findings of such advisory opinion 
shall not, as a result of such act, be subject to any penalty or 
sanction provided by this title.

[``SEC. 307. CONFIDENTIAL REPORTS AND OTHER ADDITIONAL REQUIREMENTS.

    [``(a)(1) The Office of Government Ethics may require officers and 
employees of the executive branch (including special Government 
employees as defined in section 202 of title 18, United States Code) to 
file confidential financial disclosure reports, in such form as it may 
prescribe. The information required to be reported under this 
subsection by the officers and employees of any department or agency 
listed in section 301(e) shall be set forth in rules or regulations 
prescribed by the Office of Government Ethics, and may be less 
extensive than otherwise required by this title, or more extensive when 
determined by the Office of Government Ethics to be necessary and 
appropriate in light of sections 202 through 209 of title 18, United 
States Code, regulations promulgated thereunder, or the authorized 
activities of such officers or employees. Any individual required to 
file a report pursuant to section 301 shall not be required to file a 
confidential report pursuant to this subsection, except with respect to 
information which is more extensive than information otherwise required 
by this title. Section 305 shall not apply with respect to any such 
report.
    [``(2) Any information required to be provided by an individual 
under this subsection shall be confidential and shall not be disclosed 
to the public.
    [``(3) Nothing in this subsection exempts any individual otherwise 
covered by the requirement to file a public financial disclosure report 
under this title from such requirement.
    [``(b) The provisions of this title requiring the reporting of 
information shall supersede any general requirement under any other 
provision of law or regulation with respect to the reporting of 
information required for purposes of preventing conflicts of interest 
or apparent conflicts of interest. Such provisions of this title shall 
not supersede the requirements of section 7342 of title 5, United 
States Code.
    [``(c) Nothing in this Act requiring reporting of information shall 
be deemed to authorize the receipt of income, gifts, or reimbursements; 
the holding of assets, liabilities, or positions; or the participation 
in transactions that are prohibited by law, Executive order, rule, or 
regulation.

[``SEC. 308. AUTHORITY OF COMPTROLLER GENERAL.

    [``The Comptroller General shall have access to financial 
disclosure reports filed under this title for the purposes of carrying 
out his statutory responsibilities.

[``SEC. 309. DEFINITIONS.

    [``For the purposes of this title--
            [``(1) the term `dependent child' means, when used with 
        respect to any reporting individual, any individual who is a 
        son, daughter, stepson, or stepdaughter and who--
                    [``(A) is unmarried and under age 21 and is living 
                in the household of such reporting individual; or
                    [``(B) is a dependent of such reporting individual 
                within the meaning of section 152 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 152);
            [``(2) the term `designated agency ethics official' means 
        an officer or employee who is designated to administer the 
        provisions of this title within an agency;
            [``(3) the term `executive branch' includes--
                    [``(A) each Executive agency (as defined in section 
                105 of title 5, United States Code), other than the 
                General Accounting Office; and
                    [``(B) any other entity or administrative unit in 
                the executive branch;
            [``(4) the term `gift' means a payment, advance, 
        forbearance, rendering, or deposit of money, or any thing of 
        value, unless consideration of equal or greater value is 
        received by the donor, but does not include--
                    [``(A) bequests and other forms of inheritance;
                    [``(B) suitable mementos of a function honoring the 
                reporting individual;
                    [``(C) food, lodging, transportation, and 
                entertainment provided by a foreign government within a 
                foreign country or by the United States Government, the 
                District of Columbia, or a State or local government or 
                political subdivision thereof;
                    [``(D) food and beverages which are not consumed in 
                connection with a gift of overnight lodging;
                    [``(E) communications to the offices of a reporting 
                individual, including subscriptions to newspapers and 
                periodicals; or
                    [``(F) items that are accepted pursuant to or are 
                required to be reported by the reporting individual 
                under section 7342 of title 5, United States Code.
            [``(5) the term `honorarium' means a payment of money or 
        anything of value for an appearance, speech, or article;
            [``(6) the term `income' means all income from whatever 
        source derived, including but not limited to the following 
        items: compensation for services, including fees, commissions, 
        and similar items; gross income derived from business (and net 
        income if the individual elects to include it); gains derived 
        from dealings in property; interest; rents; royalties; prizes 
        and awards; dividends; annuities; income from life insurance 
        and endowment contracts; pensions; income from discharge of 
        indebtedness; distributive share of partnership income; and 
        income from an interest in an estate or trust;
            [``(7) the term `personal hospitality of any individual' 
        means hospitality extended for a nonbusiness purpose by an 
        individual, not a corporation or organization, at the personal 
        residence of that individual or his family or on property or 
        facilities owned by that individual or his family;
            [``(8) the term `reimbursement' means any payment or other 
        thing of value received by the reporting individual, other than 
        gifts, to cover travel-related expenses of such individual 
        other than those which are--
                    [``(A) provided by the United States Government, 
                the District of Columbia, or a State or local 
                government or political subdivision thereof;
                    [``(B) required to be reported by the reporting 
                individual under section 7342 of title 5, United States 
                Code; or
                    [``(C) required to be reported under section 304 of 
                the Federal Election Campaign Act of 1971 (2 U.S.C. 
                434);
            [``(9) the term `relative' means an individual who is 
        related to the reporting individual, as father, mother, son, 
        daughter, brother, sister, uncle, aunt, great aunt, great 
        uncle, first cousin, nephew, niece, husband, wife, grandfather, 
        grandmother, grandson, granddaughter, father-in-law, mother-in-
        law, son-in-law, daughter-in-law, brother-in-law, sister-in-
        law, stepfather, stepmother, stepson, stepdaughter, 
        stepbrother, stepsister, half brother, half sister, or who is 
        the grandfather or grandmother of the spouse of the reporting 
        individual, and shall be deemed to include the fiance or 
        fiancee of the reporting individual;
            [``(10) the term `Secretary concerned' has the meaning set 
        forth in section 101(a)(9) of title 10, United States Code; and
            [``(11) the term `value' means a good faith estimate of the 
        dollar value if the exact value is neither known nor easily 
        obtainable by the reporting individual.

[``SEC. 310. NOTICE OF ACTIONS TAKEN TO COMPLY WITH ETHICS AGREEMENTS.

    [``(a) In any case in which an individual agrees with that 
individual's designated agency ethics official, the Office of 
Government Ethics, or a Senate confirmation committee, to take any 
action to comply with this Act or any other law or regulation governing 
conflicts of interest of, or establishing standards of conduct 
applicable with respect to, officers or employees of the Government, 
that individual shall notify in writing the designated agency ethics 
official, the Office of Government Ethics, or the appropriate committee 
of the Senate, as the case may be, of any action taken by the 
individual pursuant to that agreement. Such notification shall be made 
not later than the date specified in the agreement by which action by 
the individual must be taken, or not later than 3 months after the date 
of the agreement, if no date for action is so specified. If all actions 
agreed to have not been completed by the date of this notification, 
such notification shall continue on a monthly basis thereafter until 
the individual has met the terms of the agreement.
    [``(b) If an agreement described in subsection (a) requires that 
the individual recuse himself or herself from particular categories of 
agency or other official action, the individual shall reduce to writing 
those subjects regarding which the recusal agreement will apply and the 
process by which it will be determined whether the individual must 
recuse himself or herself in a specific instance. An individual shall 
be considered to have complied with the requirements of subsection (a) 
with respect to such recusal agreement if such individual files a copy 
of the document setting forth the information described in the 
preceding sentence with such individual's designated agency ethics 
official or the Office of Government Ethics within the time prescribed 
in the penultimate sentence of subsection (a).

[``SEC. 311. ADMINISTRATION OF PROVISIONS.

    [``The Office of Government Ethics shall issue regulations, develop 
forms, and provide such guidance as is necessary to implement and 
interpret this title.''.
    [(b) Exemption From Public Access to Financial Disclosures.--
Section 105(a)(1) of such Act is amended by inserting ``the Office of 
the National Intelligence Director,'' before ``the Central Intelligence 
Agency''.
    [(c) Conforming Amendment.--Section 101(f) of such Act is amended--
            [(1) in paragraph (12), by striking the period at the end 
        and inserting a semicolon; and
            [(2) by adding at the end the following:
``but do not include any officer or employee of any department or 
agency listed in section 301(e).''.

[SEC. 5044. REDUCTION OF POSITIONS REQUIRING APPOINTMENT WITH SENATE 
              CONFIRMATION.

    [(a) Definition.--In this section, the term ``agency'' means an 
Executive agency, as defined under section 105 of title 5, United 
States Code.
    [(b) Reduction Plan.--
            [(1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the head of each agency shall submit a 
        Presidential appointment reduction plan to--
                    [(A) the President;
                    [(B) the Committee on Governmental Affairs of the 
                Senate; and
                    [(C) the Committee on Government Reform of the 
                House of Representatives.
            [(2) Content.--The plan under this subsection shall provide 
        for the reduction of--
                    [(A) the number of positions within that agency 
                that require an appointment by the President, by and 
                with the advice and consent of the Senate; and
                    [(B) the number of levels of such positions within 
                that agency.

[SEC. 5045. EFFECTIVE DATES.

    [(a) Section 5043.--
            [(1) In general.--Subject to paragraph (2), the amendments 
        made by section 5043 shall take effect on January 1 of the year 
        following the year in which occurs the date of enactment of 
        this Act.
            [(2) Later date.--If this Act is enacted on or after July 1 
        of a year, the amendments made by section 301 shall take effect 
        on July 1 of the following year.
    [(b) Section 5044.--Section 5044 shall take effect on the date of 
enactment of this Act.

       [CHAPTER 2--FEDERAL BUREAU OF INVESTIGATION REVITALIZATION

[SEC. 5051. MANDATORY SEPARATION AGE.

    [(a) Civil Service Retirement System.--Section 8335(b) of title 5, 
United States Code, is amended--
            [(1) by striking ``(b)'' and inserting ``(b)(1)''; and
            [(2) by adding at the end the following:
    [``(2) In the case of employees of the Federal Bureau of 
Investigation, the second sentence of paragraph (1) shall be applied by 
substituting `65 years of age' for `60 years of age'. The authority to 
grant exemptions in accordance with the preceding sentence shall cease 
to be available after December 31, 2009.''.
    [(b) Federal Employees' Retirement System.--Section 8425(b) of 
title 5, United States Code, is amended--
            [(1) by striking ``(b)'' and inserting ``(b)(1)''; and
            [(2) by adding at the end the following:
    [``(2) In the case of employees of the Federal Bureau of 
Investigation, the second sentence of paragraph (1) shall be applied by 
substituting `65 years of age' for `60 years of age'. The authority to 
grant exemptions in accordance with the preceding sentence shall cease 
to be available after December 31, 2009.''.

[SEC. 5052. RETENTION AND RELOCATION BONUSES.

    [(a) In General.--Subchapter IV of chapter 57 of title 5, United 
States Code, is amended by adding at the end the following:
[``Sec. 5759. Retention and relocation bonuses for the Federal Bureau 
              of Investigation
    [``(a) Authority.--The Director of the Federal Bureau of 
Investigation, after consultation with the Director of the Office of 
Personnel Management, may pay, on a case-by-case basis, a bonus under 
this section to an employee of the Bureau if--
            [``(1)(A) the unusually high or unique qualifications of 
        the employee or a special need of the Bureau for the employee's 
        services makes it essential to retain the employee; and
            [``(B) the Director of the Federal Bureau of Investigation 
        determines that, in the absence of such a bonus, the employee 
        would be likely to leave--
                    [``(i) the Federal service; or
                    [``(ii) for a different position in the Federal 
                service; or
            [``(2) the individual is transferred to a different 
        geographic area with a higher cost of living (as determined by 
        the Director of the Federal Bureau of Investigation).
    [``(b) Service Agreement.--Payment of a bonus under this section is 
contingent upon the employee entering into a written service agreement 
with the Bureau to complete a period of service with the Bureau. Such 
agreement shall include--
            [``(1) the period of service the individual shall be 
        required to complete in return for the bonus; and
            [``(2) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed, and the effect of the termination.
    [``(c) Limitation on Authority.--A bonus paid under this section 
may not exceed 50 percent of the employee's basic pay.
    [``(d) Impact on Basic Pay.--A retention bonus is not part of the 
basic pay of an employee for any purpose.
    [``(e) Termination of Authority.--The authority to grant bonuses 
under this section shall cease to be available after December 31, 
2009.''.
    [(b) Clerical Amendment.--The analysis for chapter 57 of title 5, 
United States Code, is amended by adding at the end the following:

[``5759. Retention and relocation bonuses for the Federal Bureau of 
                            Investigation.''.

[SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE SERVICE.

    [(a) In General.--Chapter 35 of title 5, United States Code, is 
amended by adding at the end the following:

 [``SUBCHAPTER VII--RETENTION OF RETIRED SPECIALIZED EMPLOYEES AT THE 
                    FEDERAL BUREAU OF INVESTIGATION

[``Sec. 3598. Federal Bureau of Investigation Reserve Service
    [``(a) Establishment.--The Director of the Federal Bureau of 
Investigation may provide for the establishment and training of a 
Federal Bureau of Investigation Reserve Service (hereinafter in this 
section referred to as the `FBI Reserve Service') for temporary 
reemployment of employees in the Bureau during periods of emergency, as 
determined by the Director.
    [``(b) Membership.--Membership in the FBI Reserve Service shall be 
limited to individuals who previously served as full-time employees of 
the Bureau.
    [``(c) Annuitants.--If an individual receiving an annuity from the 
Civil Service Retirement and Disability Fund on the basis of such 
individual's service becomes temporarily reemployed pursuant to this 
section, such annuity shall not be discontinued thereby. An individual 
so reemployed shall not be considered an employee for the purposes of 
chapter 83 or 84.
    [``(d) No Impact on Bureau Personnel Ceiling.--FBI Reserve Service 
members reemployed on a temporary basis pursuant to this section shall 
not count against any personnel ceiling applicable to the Bureau.
    [``(e) Expenses.--The Director may provide members of the FBI 
Reserve Service transportation and per diem in lieu of subsistence, in 
accordance with applicable provisions of this title, for the purpose of 
participating in any training that relates to service as a member of 
the FBI Reserve Service.
    [``(f) Limitation on Membership.--Membership of the FBI Reserve 
Service is not to exceed 500 members at any given time.''.
    [(b) Clerical Amendment.--The analysis for chapter 35 of title 5, 
United States Code, is amended by adding at the end the following:

 [``subchapter vii--retention of retired specialized employees at the 
                    federal bureau of investigation
[``3598. Federal Bureau of Investigation Reserve Service.''.

[SEC. 5054. CRITICAL POSITIONS IN THE FEDERAL BUREAU OF INVESTIGATION 
              INTELLIGENCE DIRECTORATE.

    [Section 5377(a)(2) of title 5, United States Code, is amended--
            [(1) by striking ``and'' at the end of subparagraph (E);
            [(2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            [(3) by inserting after subparagraph (F) the following:
                    [``(G) a position at the Federal Bureau of 
                Investigation, the primary duties and responsibilities 
                of which relate to intelligence functions (as 
                determined by the Director of the Federal Bureau of 
                Investigation).''.

                    [CHAPTER 3--MANAGEMENT AUTHORITY

[SEC. 5061. MANAGEMENT AUTHORITY.

    [(a) Management Authority.--Section 7103(b)(1)(A) of title 5, 
United States Code, is amended by adding ``homeland security,'' after 
``investigative,''.
    [(b) Exclusionary Authority.--Section 842 of the Homeland Security 
Act (Public Law 107-296; 6 U.S.C. 412) is repealed.

             [Subtitle F--Security Clearance Modernization

[SEC. 5071. DEFINITIONS.

    [In this subtitle:
            [(1) The term ``Director'' means the National Intelligence 
        Director.
            [(2) The term ``agency'' means--
                    [(A) an executive agency, as defined in section 105 
                of title 5, United States Code;
                    [(B) a military department, as defined in section 
                102 of title 5, United States Code; and
                    [(C) elements of the intelligence community, as 
                defined in section 3(4) of the National Security Act of 
                1947 (50 U.S.C. 401a(4)).
            [(3) The term ``authorized investigative agency'' means an 
        agency authorized by law, regulation or direction of the 
        Director to conduct a counterintelligence investigation or 
        investigation of persons who are proposed for access to 
        classified information to ascertain whether such persons 
        satisfy the criteria for obtaining and retaining access to such 
        information.
            [(4) The term ``authorized adjudicative agency'' means an 
        agency authorized by law, regulation or direction of the 
        Director to determine eligibility for access to classified 
        information in accordance with Executive Order 12968.
            [(5) The term ``highly sensitive program'' means--
                    [(A) a government program designated as a Special 
                Access Program (as defined by section 4.1(h) of 
                Executive Order 12958); and
                    [(B) a government program that applies restrictions 
                required for--
                            [(i) Restricted Data (as defined by section 
                        11 y. of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2014(y)); or
                            [(ii) other information commonly referred 
                        to as ``Sensitive Compartmented Information''.
            [(6) The term ``current investigation file'' means, with 
        respect to a security clearance, a file on an investigation or 
        adjudication that has been conducted during--
                    [(A) the 5-year period beginning on the date the 
                security clearance was granted, in the case of a Top 
                Secret Clearance, or the date access was granted to a 
                highly sensitive program;
                    [(B) the 10-year period beginning on the date the 
                security clearance was granted in the case of a Secret 
                Clearance; and
                    [(C) the 15-year period beginning on the date the 
                security clearance was granted in the case of a 
                Confidential Clearance.
            [(7) The term ``personnel security investigation'' means 
        any investigation required for the purpose of determining the 
        eligibility of any military, civilian, or government contractor 
        personnel to access classified information.
            [(8) The term ``periodic reinvestigations'' means--
                    [(A) investigations conducted for the purpose of 
                updating a previously completed background 
                investigation--
                            [(i) every five years in the case of a Top 
                        Secret Clearance or access to a highly 
                        sensitive program;
                            [(ii) every 10 years in the case of a 
                        Secret Clearance; and
                            [(iii) every 15 years in the case of a 
                        Confidential Clearance;
                    [(B) on-going investigations to identify personnel 
                security risks as they develop, pursuant to section 
                105(c).
            [(9) The term ``appropriate committees of Congress'' 
        means--
                    [(A) the Permanent Select Committee on Intelligence 
                and the Committees on Armed Services, Judiciary, and 
                Government Reform of the House of Representatives; and
                    [(B) the Select Committee on Intelligence and the 
                Committees on Armed Services, Judiciary, and 
                Governmental Affairs of the Senate.

[SEC. 5072. SECURITY CLEARANCE AND INVESTIGATIVE PROGRAMS OVERSIGHT AND 
              ADMINISTRATION.

    [The Deputy National Intelligence Director for Community Management 
and Resources shall have responsibility for the following:
            [(1) Directing day-to-day oversight of investigations and 
        adjudications for personnel security clearances to highly 
        sensitive programs throughout the Federal Government.
            [(2) Developing and implementing uniform and consistent 
        policies and procedures to ensure the effective, efficient, and 
        timely completion of security clearances and determinations for 
        access to highly sensitive programs, including the 
        standardization of security questionnaires, financial 
        disclosure requirements for security clearance applicants, and 
        polygraph policies and procedures.
            [(3) Serving as the final authority to designate an 
        authorized investigative agency or authorized adjudicative 
        agency pursuant to section 5074(d).
            [(4) Ensuring reciprocal recognition of access to 
        classified information among agencies, including acting as the 
        final authority to arbitrate and resolve disputes involving the 
        reciprocity of security clearances and access to highly 
        sensitive programs.
            [(5) Ensuring, to the maximum extent practicable, that 
        sufficient resources are available in each agency to achieve 
        clearance and investigative program goals.
            [(6) Reviewing and coordinating the development of tools 
        and techniques for enhancing the conduct of investigations and 
        granting of clearances.

[SEC. 5073. RECIPROCITY OF SECURITY CLEARANCE AND ACCESS 
              DETERMINATIONS.

    [(a) Requirement for Reciprocity.--(1) All security clearance 
background investigations and determinations completed by an authorized 
investigative agency or authorized adjudicative agency shall be 
accepted by all agencies.
    [(2) All security clearance background investigations initiated by 
an authorized investigative agency shall be transferable to any other 
authorized investigative agency.
    [(b) Prohibition on Establishing Additional Requirements.--(1) An 
authorized investigative agency or authorized adjudicative agency may 
not establish additional investigative or adjudicative requirements 
(other than requirements for the conduct of a polygraph examination) 
that exceed requirements specified in Executive Orders establishing 
security requirements for access to classified information.
    [(2) Notwithstanding the paragraph (1), the Director may establish 
additional requirements as needed for national security purposes.
    [(c) Prohibition on Duplicative Investigations.--An authorized 
investigative agency or authorized adjudicative agency may not conduct 
an investigation for purposes of determining whether to grant a 
security clearance to an individual where a current investigation or 
clearance of equal level already exists or has been granted by another 
authorized adjudicative agency.

[SEC. 5074. ESTABLISHMENT OF NATIONAL DATABASE .

    [(a) Establishment.--Not later than 12 months after the date of the 
enactment of this Act, the Director of the Office of Personnel 
Management, in cooperation with the Director, shall establish, and 
begin operating and maintaining, an integrated, secure, national 
database into which appropriate data relevant to the granting, denial, 
or revocation of a security clearance or access pertaining to military, 
civilian, or government contractor personnel shall be entered from all 
authorized investigative and adjudicative agencies.
    [(b) Integration.--The national database established under 
subsection (a) shall function to integrate information from existing 
Federal clearance tracking systems from other authorized investigative 
and adjudicative agencies into a single consolidated database.
    [(c) Requirement to Check Database.--Each authorized investigative 
or adjudicative agency shall check the national database established 
under subsection (a) to determine whether an individual the agency has 
identified as requiring a security clearance has already been granted 
or denied a security clearance, or has had a security clearance 
revoked, by any other authorized investigative or adjudicative agency.
    [(d) Certification of Authorized Investigative Agencies or 
Authorized Adjudicative Agencies.--The Director shall evaluate the 
extent to which an agency is submitting information to, and requesting 
information from, the national database established under subsection 
(a) as part of a determination of whether to certify the agency as an 
authorized investigative agency or authorized adjudicative agency.
    [(e) Exclusion of Certain Intelligence Operatives.--The Director 
may authorize an agency to withhold information about certain 
individuals from the database established under subsection (a) if the 
Director determines it is necessary for national security purposes.
    [(f) Compliance.--The Director shall establish a review procedure 
by which agencies can seek review of actions required under section 
5073.
    [(g) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary for fiscal year 2005 and 
each subsequent fiscal year for the implementation, maintenance and 
operation of the database established in subsection (a).

[SEC. 5075. USE OF AVAILABLE TECHNOLOGY IN CLEARANCE INVESTIGATIONS.

    [(a) Investigations.--Not later than 12 months after the date of 
the enactment of this Act, each authorized investigative agency that 
conducts personnel security clearance investigations shall use, to the 
maximum extent practicable, available information technology and 
databases to expedite investigative processes and to verify standard 
information submitted as part of an application for a security 
clearance.
    [(b) Interim Clearance.--If the application of an applicant for an 
interim clearance has been processed using the technology under 
subsection (a), the interim clearances for the applicant at the secret, 
top secret, and special access program levels may be granted before the 
completion of the appropriate investigation. Any request to process an 
interim clearance shall be given priority, and the authority granting 
the interim clearance shall ensure that final adjudication on the 
application is made within 90 days after the initial clearance is 
granted.
    [(c) On-Going Monitoring of Individuals With Security Clearances.--
(1) Authorized investigative agencies and authorized adjudicative 
agencies shall establish procedures for the regular, ongoing 
verification of personnel with security clearances in effect for 
continued access to classified information. Such procedures shall 
include the use of available technology to detect, on a regularly 
recurring basis, any issues of concern that may arise involving such 
personnel and such access.
    [(2) Such regularly recurring verification may be used as a basis 
for terminating a security clearance or access and shall be used in 
periodic reinvestigations to address emerging threats and adverse 
events associated with individuals with security clearances in effect 
to the maximum extent practicable.
    [(3) If the Director certifies that the national security of the 
United States is not harmed by the discontinuation of periodic 
reinvestigations, the regularly recurring verification under this 
section may replace periodic reinvestigations.

[SEC. 5076. REDUCTION IN LENGTH OF PERSONNEL SECURITY CLEARANCE 
              PROCESS.

    [(a) 60-Day Period for Determination on Clearances.--Each 
authorized adjudicative agency shall make a determination on an 
application for a personnel security clearance within 60 days after the 
date of receipt of the completed application for a security clearance 
by an authorized investigative agency. The 60-day period shall 
include--
            [(1) a period of not longer than 40 days to complete the 
        investigative phase of the clearance review; and
            [(2) a period of not longer than 20 days to complete the 
        adjudicative phase of the clearance review.
    [(b) Effective Date and Phase-in.--
            [(1) Effective date.--Subsection (a) shall take effect 5 
        years after the date of the enactment of this Act.
            [(2) Phase-in.--During the period beginning on a date not 
        later than 2 years after the date after the enactment of this 
        Act and ending on the date on which subsection (a) takes effect 
        as specified in paragraph (1), each authorized adjudicative 
        agency shall make a determination on an application for a 
        personnel security clearance pursuant to this title within 120 
        days after the date of receipt of the application for a 
        security clearance by an authorized investigative agency. The 
        120-day period shall include--
                    [(A) a period of not longer than 90 days to 
                complete the investigative phase of the clearance 
                review; and
                    [(B) a period of not longer than 30 days to 
                complete the adjudicative phase of the clearance 
                review.

[SEC. 5077. SECURITY CLEARANCES FOR PRESIDENTIAL TRANSITION.

    [(a) Candidates for National Security Positions.--(1) The 
President-elect shall submit to the Director the names of candidates 
for high-level national security positions, for positions at the level 
of under secretary of executive departments and above, as soon as 
possible after the date of the general elections held to determine the 
electors of President and Vice President under section 1 or 2 of title 
3, United States Code.
    [(2) The Director shall be responsible for the expeditious 
completion of the background investigations necessary to provide 
appropriate security clearances to the individuals who are candidates 
described under paragraph (1) before the date of the inauguration of 
the President-elect as President and the inauguration of the Vice-
President-elect as Vice President.
    [(b) Security Clearances for Transition Team Members.--(1) In this 
section, the term ``major party'' has the meaning provided under 
section 9002(6) of the Internal Revenue Code of 1986.
    [(2) Each major party candidate for President, except a candidate 
who is the incumbent President, shall submit, before the date of the 
general presidential election, requests for security clearances for 
prospective transition team members who will have a need for access to 
classified information to carry out their responsibilities as members 
of the President-elect's transition team.
    [(3) Necessary background investigations and eligibility 
determinations to permit appropriate prospective transition team 
members to have access to classified information shall be completed, to 
the fullest extent practicable, by the day after the date of the 
general presidential election.

[SEC. 5078. REPORTS.

    [Not later than February 15, 2006, and annually thereafter through 
2016, the Director shall submit to the appropriate committees of 
Congress a report on the progress made during the preceding year toward 
meeting the requirements specified in this Act. The report shall 
include--
            [(1) the periods of time required by the authorized 
        investigative agencies and authorized adjudicative agencies 
        during the year covered by the report for conducting 
        investigations, adjudicating cases, and granting clearances, 
        from date of submission to ultimate disposition and 
        notification to the subject and the subject's employer;
            [(2) a discussion of any impediments to the smooth and 
        timely functioning of the implementation of this title; and
            [(3) such other information or recommendations as the 
        Deputy Director deems appropriate.

             [Subtitle G--Emergency Financial Preparedness

[SEC. 5081. DELEGATION AUTHORITY OF THE SECRETARY OF THE TREASURY.

    [Subsection (d) of section 306 of title 31, United States Code, is 
amended by inserting ``or employee'' after ``another officer''.

[SEC. 5082. EXTENSION OF EMERGENCY ORDER AUTHORITY OF THE SECURITIES 
              AND EXCHANGE COMMISSION.

    [(a) Extension of Authority.--Paragraph (2) of section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(2)) is amended to 
read as follows:
            [``(2) Emergency orders.--(A) The Commission, in an 
        emergency, may by order summarily take such action to alter, 
        supplement, suspend, or impose requirements or restrictions 
        with respect to any matter or action subject to regulation by 
        the Commission or a self-regulatory organization under the 
        securities laws, as the Commission determines is necessary in 
        the public interest and for the protection of investors--
                    [``(i) to maintain or restore fair and orderly 
                securities markets (other than markets in exempted 
                securities);
                    [``(ii) to ensure prompt, accurate, and safe 
                clearance and settlement of transactions in securities 
                (other than exempted securities); or
                    [``(iii) to reduce, eliminate, or prevent the 
                substantial disruption by the emergency of (I) 
                securities markets (other than markets in exempted 
                securities), investment companies, or any other 
                significant portion or segment of such markets, or (II) 
                the transmission or processing of securities 
                transactions (other than transactions in exempted 
                securities).
            [``(B) An order of the Commission under this paragraph (2) 
        shall continue in effect for the period specified by the 
        Commission, and may be extended. Except as provided in 
        subparagraph (C), the Commission's action may not continue in 
        effect for more than 30 business days, including extensions.
            [``(C) An order of the Commission under this paragraph (2) 
        may be extended to continue in effect for more than 30 business 
        days if, at the time of the extension, the Commission finds 
        that the emergency still exists and determines that the 
        continuation of the order beyond 30 business days is necessary 
        in the public interest and for the protection of investors to 
        attain an objective described in clause (i), (ii), or (iii) of 
        subparagraph (A). In no event shall an order of the Commission 
        under this paragraph (2) continue in effect for more than 90 
        calendar days.
            [``(D) If the actions described in subparagraph (A) involve 
        a security futures product, the Commission shall consult with 
        and consider the views of the Commodity Futures Trading 
        Commission. In exercising its authority under this paragraph, 
        the Commission shall not be required to comply with the 
        provisions of section 553 of title 5, United States Code, or 
        with the provisions of section 19(c) of this title.
            [``(E) Notwithstanding the exclusion of exempted securities 
        (and markets therein) from the Commission's authority under 
        subparagraph (A), the Commission may use such authority to take 
        action to alter, supplement, suspend, or impose requirements or 
        restrictions with respect to clearing agencies for transactions 
        in such exempted securities. In taking any action under this 
        subparagraph, the Commission shall consult with and consider 
        the views of the Secretary of the Treasury.''.
    [(b) Consultation; Definition of Emergency.--Section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)) is further amended 
by striking paragraph (6) and inserting the following:
            [``(6) Consultation.--Prior to taking any action described 
        in paragraph (1)(B), the Commission shall consult with and 
        consider the views of the Secretary of the Treasury, Board of 
        Governors of the Federal Reserve System, and the Commodity 
        Futures Trading Commission, unless such consultation is 
        impracticable in light of the emergency.
            [``(7) Definitions.--
                    [``(A) Emergency.--For purposes of this subsection, 
                the term `emergency' means--
                            [``(i) a major market disturbance 
                        characterized by or constituting--
                                    [``(I) sudden and excessive 
                                fluctuations of securities prices 
                                generally, or a substantial threat 
                                thereof, that threaten fair and orderly 
                                markets; or
                                    [``(II) a substantial disruption of 
                                the safe or efficient operation of the 
                                national system for clearance and 
                                settlement of transactions in 
                                securities, or a substantial threat 
                                thereof; or
                            [``(ii) a major disturbance that 
                        substantially disrupts, or threatens to 
                        substantially disrupt--
                                    [``(I) the functioning of 
                                securities markets, investment 
                                companies, or any other significant 
                                portion or segment of the securities 
                                markets; or
                                    [``(II) the transmission or 
                                processing of securities transactions.
                    [``(B) Securities laws.--Notwithstanding section 
                3(a)(47), for purposes of this subsection, the term 
                `securities laws' does not include the Public Utility 
                Holding Company Act of 1935 (15 U.S.C. 79a et seq.).''.

[SEC. 5083. PARALLEL AUTHORITY OF THE SECRETARY OF THE TREASURY WITH 
              RESPECT TO GOVERNMENT SECURITIES.

    [Section 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
5) is amended by adding at the end the following new subsection:
    [``(h) Emergency Authority.--The Secretary may by order take any 
action with respect to a matter or action subject to regulation by the 
Secretary under this section, or the rules of the Secretary thereunder, 
involving a government security or a market therein (or significant 
portion or segment of that market), that the Commission may take under 
section 12(k)(2) of this title with respect to transactions in 
securities (other than exempted securities) or a market therein (or 
significant portion or segment of that market).''.

                       [Subtitle H--Other Matters

                      [CHAPTER 1--PRIVACY MATTERS

[SEC. 5091. REQUIREMENT THAT AGENCY RULEMAKING TAKE INTO CONSIDERATION 
              IMPACTS ON INDIVIDUAL PRIVACY.

    [(a) Short Title.--This section may be cited as the ``Federal 
Agency Protection of Privacy Act of 2004''.
    [(b) In General.--Title 5, United States Code, is amended by adding 
after section 553 the following new section:
[``Sec. 553a. Privacy impact assessment in rulemaking
    [``(a) Initial Privacy Impact Assessment.--
            [``(1) In general.--Whenever an agency is required by 
        section 553 of this title, or any other law, to publish a 
        general notice of proposed rulemaking for a proposed rule, or 
        publishes a notice of proposed rulemaking for an interpretative 
        rule involving the internal revenue laws of the United States, 
        and such rule or proposed rulemaking pertains to the 
        collection, maintenance, use, or disclosure of personally 
        identifiable information from 10 or more individuals, other 
        than agencies, instrumentalities, or employees of the Federal 
        government, the agency shall prepare and make available for 
        public comment an initial privacy impact assessment that 
        describes the impact of the proposed rule on the privacy of 
        individuals. Such assessment or a summary thereof shall be 
        signed by the senior agency official with primary 
        responsibility for privacy policy and be published in the 
        Federal Register at the time of the publication of a general 
        notice of proposed rulemaking for the rule.
            [``(2) Contents.--Each initial privacy impact assessment 
        required under this subsection shall contain the following:
                    [``(A) A description and analysis of the extent to 
                which the proposed rule will impact the privacy 
                interests of individuals, including the extent to which 
                the proposed rule--
                            [``(i) provides notice of the collection of 
                        personally identifiable information, and 
                        specifies what personally identifiable 
                        information is to be collected and how it is to 
                        be collected, maintained, used, and disclosed;
                            [``(ii) allows access to such information 
                        by the person to whom the personally 
                        identifiable information pertains and provides 
                        an opportunity to correct inaccuracies;
                            [``(iii) prevents such information, which 
                        is collected for one purpose, from being used 
                        for another purpose; and
                            [``(iv) provides security for such 
                        information.
                    [``(B) A description of any significant 
                alternatives to the proposed rule which accomplish the 
                stated objectives of applicable statutes and which 
                minimize any significant privacy impact of the proposed 
                rule on individuals.
    [``(b) Final Privacy Impact Assessment.--
            [``(1) In general.--Whenever an agency promulgates a final 
        rule under section 553 of this title, after being required by 
        that section or any other law to publish a general notice of 
        proposed rulemaking, or promulgates a final interpretative rule 
        involving the internal revenue laws of the United States, and 
        such rule or proposed rulemaking pertains to the collection, 
        maintenance, use, or disclosure of personally identifiable 
        information from 10 or more individuals, other than agencies, 
        instrumentalities, or employees of the Federal government, the 
        agency shall prepare a final privacy impact assessment, signed 
        by the senior agency official with primary responsibility for 
        privacy policy.
            [``(2) Contents.--Each final privacy impact assessment 
        required under this subsection shall contain the following:
                    [``(A) A description and analysis of the extent to 
                which the final rule will impact the privacy interests 
                of individuals, including the extent to which such 
                rule--
                            [``(i) provides notice of the collection of 
                        personally identifiable information, and 
                        specifies what personally identifiable 
                        information is to be collected and how it is to 
                        be collected, maintained, used, and disclosed;
                            [``(ii) allows access to such information 
                        by the person to whom the personally 
                        identifiable information pertains and provides 
                        an opportunity to correct inaccuracies;
                            [``(iii) prevents such information, which 
                        is collected for one purpose, from being used 
                        for another purpose; and
                            [``(iv) provides security for such 
                        information.
                    [``(B) A summary of any significant issues raised 
                by the public comments in response to the initial 
                privacy impact assessment, a summary of the analysis of 
                the agency of such issues, and a statement of any 
                changes made in such rule as a result of such issues.
                    [``(C) A description of the steps the agency has 
                taken to minimize the significant privacy impact on 
                individuals consistent with the stated objectives of 
                applicable statutes, including a statement of the 
                factual, policy, and legal reasons for selecting the 
                alternative adopted in the final rule and why each one 
                of the other significant alternatives to the rule 
                considered by the agency which affect the privacy 
                interests of individuals was rejected.
            [``(3) Availability to public.--The agency shall make 
        copies of the final privacy impact assessment available to 
        members of the public and shall publish in the Federal Register 
        such assessment or a summary thereof.
    [``(c) Waivers.--
            [``(1) Emergencies.--An agency head may waive or delay the 
        completion of some or all of the requirements of subsections 
        (a) and (b) to the same extent as the agency head may, under 
        section 608, waive or delay the completion of some or all of 
        the requirements of sections 603 and 604, respectively.
            [``(2) National security.--An agency head may, for national 
        security reasons, or to protect from disclosure classified 
        information, confidential commercial information, or 
        information the disclosure of which may adversely affect a law 
        enforcement effort, waive or delay the completion of some or 
        all of the following requirements:
                    [``(A) The requirement of subsection (a)(1) to make 
                an assessment available for public comment.
                    [``(B) The requirement of subsection (a)(1) to have 
                an assessment or summary thereof published in the 
                Federal Register.
                    [``(C) The requirements of subsection (b)(3).
    [``(d) Procedures for Gathering Comments.--When any rule is 
promulgated which may have a significant privacy impact on individuals, 
or a privacy impact on a substantial number of individuals, the head of 
the agency promulgating the rule or the official of the agency with 
statutory responsibility for the promulgation of the rule shall assure 
that individuals have been given an opportunity to participate in the 
rulemaking for the rule through techniques such as--
            [``(1) the inclusion in an advance notice of proposed 
        rulemaking, if issued, of a statement that the proposed rule 
        may have a significant privacy impact on individuals, or a 
        privacy impact on a substantial number of individuals;
            [``(2) the publication of a general notice of proposed 
        rulemaking in publications of national circulation likely to be 
        obtained by individuals;
            [``(3) the direct notification of interested individuals;
            [``(4) the conduct of open conferences or public hearings 
        concerning the rule for individuals, including soliciting and 
        receiving comments over computer networks; and
            [``(5) the adoption or modification of agency procedural 
        rules to reduce the cost or complexity of participation in the 
        rulemaking by individuals.
    [``(e) Periodic Review of Rules.--
            [``(1) In general.--Each agency shall carry out a periodic 
        review of the rules promulgated by the agency that have a 
        significant privacy impact on individuals, or a privacy impact 
        on a substantial number of individuals. Under such periodic 
        review, the agency shall determine, for each such rule, whether 
        the rule can be amended or rescinded in a manner that minimizes 
        any such impact while remaining in accordance with applicable 
        statutes. For each such determination, the agency shall 
        consider the following factors:
                    [``(A) The continued need for the rule.
                    [``(B) The nature of complaints or comments 
                received from the public concerning the rule.
                    [``(C) The complexity of the rule.
                    [``(D) The extent to which the rule overlaps, 
                duplicates, or conflicts with other Federal rules, and, 
                to the extent feasible, with State and local 
                governmental rules.
                    [``(E) The length of time since the rule was last 
                reviewed under this subsection.
                    [``(F) The degree to which technology, economic 
                conditions, or other factors have changed in the area 
                affected by the rule since the rule was last reviewed 
                under this subsection.
            [``(2) Plan required.--Each agency shall carry out the 
        periodic review required by paragraph (1) in accordance with a 
        plan published by such agency in the Federal Register. Each 
        such plan shall provide for the review under this subsection of 
        each rule promulgated by the agency not later than 10 years 
        after the date on which such rule was published as the final 
        rule and, thereafter, not later than 10 years after the date on 
        which such rule was last reviewed under this subsection. The 
        agency may amend such plan at any time by publishing the 
        revision in the Federal Register.
            [``(3) Annual publication.--Each year, each agency shall 
        publish in the Federal Register a list of the rules to be 
        reviewed by such agency under this subsection during the 
        following year. The list shall include a brief description of 
        each such rule and the need for and legal basis of such rule 
        and shall invite public comment upon the determination to be 
        made under this subsection with respect to such rule.
    [``(f) Judicial Review.--
            [``(1) In general.--For any rule subject to this section, 
        an individual who is adversely affected or aggrieved by final 
        agency action is entitled to judicial review of agency 
        compliance with the requirements of subsections (b) and (c) in 
        accordance with chapter 7. Agency compliance with subsection 
        (d) shall be judicially reviewable in connection with judicial 
        review of subsection (b).
            [``(2) Jurisdiction.--Each court having jurisdiction to 
        review such rule for compliance with section 553, or under any 
        other provision of law, shall have jurisdiction to review any 
        claims of noncompliance with subsections (b) and (c) in 
        accordance with chapter 7. Agency compliance with subsection 
        (d) shall be judicially reviewable in connection with judicial 
        review of subsection (b).
            [``(3) Limitations.--
                    [``(A) An individual may seek such review during 
                the period beginning on the date of final agency action 
                and ending 1 year later, except that where a provision 
                of law requires that an action challenging a final 
                agency action be commenced before the expiration of 1 
                year, such lesser period shall apply to an action for 
                judicial review under this subsection.
                    [``(B) In the case where an agency delays the 
                issuance of a final privacy impact assessment pursuant 
                to subsection (c), an action for judicial review under 
                this section shall be filed not later than--
                            [``(i) 1 year after the date the assessment 
                        is made available to the public; or
                            [``(ii) where a provision of law requires 
                        that an action challenging a final agency 
                        regulation be commenced before the expiration 
                        of the 1-year period, the number of days 
                        specified in such provision of law that is 
                        after the date the assessment is made available 
                        to the public.
            [``(4) Relief.--In granting any relief in an action under 
        this subsection, the court shall order the agency to take 
        corrective action consistent with this section and chapter 7, 
        including, but not limited to--
                    [``(A) remanding the rule to the agency; and
                    [``(B) deferring the enforcement of the rule 
                against individuals, unless the court finds that 
                continued enforcement of the rule is in the public 
                interest.
            [``(5) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the authority of any court to stay 
        the effective date of any rule or provision thereof under any 
        other provision of law or to grant any other relief in addition 
        to the requirements of this subsection.
            [``(6) Record of agency action.--In an action for the 
        judicial review of a rule, the privacy impact assessment for 
        such rule, including an assessment prepared or corrected 
        pursuant to paragraph (4), shall constitute part of the entire 
        record of agency action in connection with such review.
            [``(7) Exclusivity.--Compliance or noncompliance by an 
        agency with the provisions of this section shall be subject to 
        judicial review only in accordance with this subsection.
            [``(8) Savings clause.--Nothing in this subsection bars 
        judicial review of any other impact statement or similar 
        assessment required by any other law if judicial review of such 
        statement or assessment is otherwise permitted by law.
    [``(g) Definition.--For purposes of this section, the term 
`personally identifiable information' means information that can be 
used to identify an individual, including such individual's name, 
address, telephone number, photograph, social security number or other 
identifying information. It includes information about such 
individual's medical or financial condition.''.
    [(c) Periodic Review Transition Provisions.--
            [(1) Initial plan.--For each agency, the plan required by 
        subsection (e) of section 553a of title 5, United States Code 
        (as added by subsection (a)), shall be published not later than 
        180 days after the date of the enactment of this Act.
            [(2) In the case of a rule promulgated by an agency before 
        the date of the enactment of this Act, such plan shall provide 
        for the periodic review of such rule before the expiration of 
        the 10-year period beginning on the date of the enactment of 
        this Act. For any such rule, the head of the agency may provide 
        for a 1-year extension of such period if the head of the 
        agency, before the expiration of the period, certifies in a 
        statement published in the Federal Register that reviewing such 
        rule before the expiration of the period is not feasible. The 
        head of the agency may provide for additional 1-year extensions 
        of the period pursuant to the preceding sentence, but in no 
        event may the period exceed 15 years.
    [(d) Congressional Review.--Section 801(a)(1)(B) of title 5, United 
States Code, is amended--
            [(1) by redesignating clauses (iii) and (iv) as clauses 
        (iv) and (v), respectively; and
            [(2) by inserting after clause (ii) the following new 
        clause:
            [``(iii) the agency's actions relevant to section 553a;''.
    [(e) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of title 5, United States Code, is amended by adding after 
the item relating to section 553 the following new item:

[``553a. Privacy impact assessment in rulemaking.''.

[SEC. 5092. CHIEF PRIVACY OFFICERS FOR AGENCIES WITH LAW ENFORCEMENT OR 
              ANTI-TERRORISM FUNCTIONS.

    [(a) In General.--There shall be within each Federal agency with 
law enforcement or anti-terrorism functions a chief privacy officer, 
who shall have primary responsibility within that agency for privacy 
policy. The agency chief privacy officer shall be designated by the 
head of the agency.
    [(b) Responsibilities.--The responsibilities of each agency chief 
privacy officer shall include--
            [(1) ensuring that the use of technologies sustains, and 
        does not erode, privacy protections relating to the use, 
        collection, and disclosure of personally identifiable 
        information;
            [(2) ensuring that personally identifiable information 
        contained in systems of records is handled in full compliance 
        with fair information practices as set out in section 552a of 
        title 5, United States Code;
            [(3) evaluating legislative and regulatory proposals 
        involving collection, use, and disclosure of personally 
        identifiable information by the Federal Government;
            [(4) conducting a privacy impact assessment of proposed 
        rules of the agency on the privacy of personally identifiable 
        information, including the type of personally identifiable 
        information collected and the number of people affected;
            [(5) preparing and submitting a report to Congress on an 
        annual basis on activities of the agency that affect privacy, 
        including complaints of privacy violations, implementation of 
        section 552a of title 5, United States Code, internal controls, 
        and other relevant matters;
            [(6) ensuring that the agency protects personally 
        identifiable information and information systems from 
        unauthorized access, use, disclosure, disruption, modification, 
        or destruction in order to provide--
                    [(A) integrity, which means guarding against 
                improper information modification or destruction, and 
                includes ensuring information nonrepudiation and 
                authenticity;
                    [(B) confidentially, which means preserving 
                authorized restrictions on access and disclosure, 
                including means for protecting personal privacy and 
                proprietary information;
                    [(C) availability, which means ensuring timely and 
                reliable access to and use of that information; and
                    [(D) authentication, which means utilizing digital 
                credentials to assure the identity of users and 
                validate their access; and
            [(7) advising the head of the agency and the Director of 
        the Office of Management and Budget on information security and 
        privacy issues pertaining to Federal Government information 
        systems.

[SEC. 5093. DATA-MINING REPORT.

    [(a) Definitions.--In this section:
            [(1) Data-mining.--The term ``data-mining'' means a query 
        or search or other analysis of 1 or more electronic databases, 
        where--
                    [(A) at least 1 of the databases was obtained from 
                or remains under the control of a non-Federal entity, 
                or the information was acquired initially by another 
                department or agency of the Federal Government for 
                purposes other than intelligence or law enforcement;
                    [(B) the search does not use a specific 
                individual's personal identifiers to acquire 
                information concerning that individual; and
                    [(C) a department or agency of the Federal 
                Government is conducting the query or search or other 
                analysis to find a pattern indicating terrorist or 
                other criminal activity.
            [(2) Database.--The term ``database'' does not include 
        telephone directories, information publicly available via the 
        Internet or available by any other means to any member of the 
        public without payment of a fee, or databases of judicial and 
        administrative opinions.
    [(b) Reports on Data-Mining Activities.--
            [(1) Requirement for report.--The head of each department 
        or agency of the Federal Government that is engaged in any 
        activity to use or develop data-mining technology shall each 
        submit a public report to Congress on all such activities of 
        the department or agency under the jurisdiction of that 
        official.
            [(2) Content of report.--A report submitted under paragraph 
        (1) shall include, for each activity to use or develop data-
        mining technology that is required to be covered by the report, 
        the following information:
                    [(A) A thorough description of the data-mining 
                technology and the data that will be used.
                    [(B) A thorough discussion of the plans for the use 
                of such technology and the target dates for the 
                deployment of the data-mining technology.
                    [(C) An assessment of the likely efficacy of the 
                data-mining technology in providing accurate and 
                valuable information consistent with the stated plans 
                for the use of the technology.
                    [(D) An assessment of the likely impact of the 
                implementation of the data-mining technology on privacy 
                and civil liberties.
                    [(E) A list and analysis of the laws and 
                regulations that govern the information to be 
                collected, reviewed, gathered, and analyzed with the 
                data-mining technology and a description of any 
                modifications of such laws that will be required to use 
                the information in the manner proposed under such 
                program.
                    [(F) A thorough discussion of the policies, 
                procedures, and guidelines that are to be developed and 
                applied in the use of such technology for data-mining 
                in order to--
                            [(i) protect the privacy and due process 
                        rights of individuals; and
                            [(ii) ensure that only accurate information 
                        is collected and used.
                    [(G) A thorough discussion of the procedures 
                allowing individuals whose personal information will be 
                used in the data-mining technology to be informed of 
                the use of their personal information and what 
                procedures are in place to allow for individuals to opt 
                out of the technology, and, if no such procedures are 
                in place, a thorough explanation as to why not.
                    [(H) Any necessary classified information in an 
                annex that shall be available to the Committee on 
                Governmental Affairs, the Committee on the Judiciary, 
                and the Committee on Appropriations of the Senate and 
                the Committee on Homeland Security, the Committee on 
                the Judiciary, and the Committee on Appropriations of 
                the House of Representatives.
            [(3) Time for report.--Each report required under paragraph 
        (1) shall be--
                    [(A) submitted not later than 90 days after the 
                date of the enactment of this Act; and
                    [(B) updated once a year and include any new data-
                mining technologies.

[SEC. 5094. PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD.

    [(a) In General.--There is established within the Executive Branch 
an Independent Privacy and Civil Liberties Oversight Board (referred to 
in this section as the ``Board'').
    [(b) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, Congress makes 
the following findings:
            [(1) In conducting the war on terrorism, the Government may 
        need additional powers and may need to enhance the use of its 
        existing powers.
            [(2) This shift of power and authority to the Government 
        calls for an enhanced system of checks and balances to protect 
        the precious liberties that are vital to our way of life and to 
        ensure that the Government uses its powers for the purposes for 
        which the powers were given.
    [(c) Purpose.--The Board shall--
            [(1) analyze and review actions the Executive Branch takes 
        to protect the Nation from terrorism as such actions pertain to 
        privacy or civil liberties; and
            [(2) ensure that privacy and civil liberties concerns are 
        appropriately considered in the development and implementation 
        of laws, regulations, and policies related to efforts to 
        protect the Nation against terrorism.
    [(d) Functions.--
            [(1) Advice and counsel on policy development and 
        implementation.--The Board shall--
                    [(A) review the privacy and civil liberties 
                implications of proposed legislation, regulations, and 
                policies related to efforts to protect the Nation from 
                terrorism, including the development and adoption of 
                information sharing guidelines under section 892 of the 
                Homeland Security Act;
                    [(B) review the privacy and civil liberties 
                implications of the implementation of new and existing 
                legislation, regulations, and policies related to 
                efforts to protect the Nation from terrorism, including 
                the implementation of information sharing guidelines 
                under section 892 of the Homeland Security Act;
                    [(C) advise the President and Federal executive 
                departments and agencies to ensure that privacy and 
                civil liberties are appropriately considered in the 
                development and implementation of such legislation, 
                regulations, policies, and guidelines; and
                    [(D) in providing advice on proposals to retain or 
                enhance a particular governmental power, consider 
                whether the executive department or agency has 
                explained--
                            [(i) that the power actually materially 
                        enhances security; and
                            [(ii) that there is adequate supervision of 
                        the executive's use of the power to ensure 
                        protection of privacy and civil liberties.
            [(2) Oversight.--The Board shall continually review--
                    [(A) the regulations, policies, and procedures and 
                the implementation of the regulations, policies, 
                procedures, and related laws of Federal executive 
                departments and agencies to ensure that privacy and 
                civil liberties are protected;
                    [(B) the information sharing practices of Federal 
                executive departments and agencies to determine whether 
                they appropriately protect privacy and civil liberties 
                and adhere to the information sharing guidelines 
                promulgated under section 892 of the Homeland Security 
                Act and to other governing laws, regulations, and 
                policies regarding privacy and civil liberties; and
                    [(C) other actions by the Executive Branch related 
                to efforts to protect the Nation from terrorism to 
                determine whether such actions--
                            [(i) appropriately protect privacy and 
                        civil liberties; and
                            [(ii) are consistent with governing laws, 
                        regulations, and policies regarding privacy and 
                        civil liberties.
            [(3) Relationship with privacy officers.--The Board shall--
                    [(A) review and assess reports and other 
                information from privacy officers described in section 
                5092;
                    [(B) when appropriate, make recommendations to such 
                privacy officers regarding their activities; and
                    [(C) when appropriate, coordinate the activities of 
                such privacy officers on relevant interagency matters.
            [(4) Testimony.--The Members of the Board shall appear and 
        testify before Congress upon request.
    [(e) Reports.--
            [(1) In general.--The Board shall--
                    [(A) receive and review reports from privacy and 
                civil liberties officers described in section 
                5092(b)(5); and
                    [(B) periodically submit, not less than 
                semiannually, reports to Congress and the President.
            [(2) Contents.--Not less than 2 reports submitted each year 
        under paragraph (1)(B) shall include--
                    [(A) a description of the major activities of the 
                Board during the relevant period; and
                    [(B) information on the findings, conclusions, and 
                recommendations of the Board resulting from its advice 
                and oversight functions under subsection (d).
    [(f) Informing the Public.--The Board shall hold public hearings, 
release public reports, and otherwise inform the public of its 
activities, as appropriate and in a manner consistent with the 
protection of classified information, applicable law, and national 
security.
    [(g) Access to Information.--
            [(1) Authorization.--If determined by the Board to be 
        necessary to carry out its responsibilities under this section, 
        the Board may--
                    [(A) secure directly from any Federal executive 
                department or agency, or any Federal officer or 
                employee, all relevant records, reports, audits, 
                reviews, documents, papers, or recommendations, 
                including classified information consistent with 
                applicable law;
                    [(B) interview, take statements from, or take 
                public testimony from personnel of any Federal 
                executive department or agency or any Federal officer 
                or employee; and
                    [(C) request information or assistance from any 
                State, tribal, or local government.
            [(2) Obtaining official information.--
                    [(A) Requirement to furnish.--Except as provided in 
                subparagraph (B), if the Board submits a request to a 
                Federal department or agency for information necessary 
                to enable the Board to carry out this section, the head 
                of such department or agency shall furnish that 
                information to the Board.
                    [(B) Exception for national security.--If the 
                National Intelligence Director, in consultation with 
                the Attorney General, determines that it is necessary 
                to withhold requested information from disclosure to 
                protect the national security interests of the United 
                States, the department or agency head shall not furnish 
                that information to the Board.
    [(h) Membership.--
            [(1) Members.--The Board shall be composed of a chairman 
        and 4 additional members, who shall be appointed by the 
        President, by and with the advice and consent of the Senate.
            [(2) Political affiliation.--Not more than 3 members of the 
        Board shall be of the same political party.
            [(3) Qualifications.--Members of the Board shall be 
        selected solely on the basis of their professional 
        qualifications, achievements, public stature, and relevant 
        experience, and without regard to political affiliation. 
        Members of the Board shall also have extensive experience in 
        the areas of privacy and civil rights and liberties.
            [(4) Incompatible office.--An individual appointed to the 
        Board may not, while serving on the Board, be an elected 
        official, an officer, or an employee of the Federal Government, 
        other than in the capacity as a member of the Board.
            [(5) Term.--Each member of the Board shall serve a term of 
        six years, except that--
                    [(A) a member appointed to a term of office after 
                the commencement of such term may serve under such 
                appointment only for the remainder of such term;
                    [(B) upon the expiration of the term of office of a 
                member, the member shall continue to serve until the 
                member's successor has been appointed and qualified, 
                except that no member may serve under this 
                subparagraph--
                            [(i) for more than 60 days when Congress is 
                        in session unless a nomination to fill the 
                        vacancy shall have been submitted to the 
                        Senate; or
                            [(ii) after the adjournment sine die of the 
                        session of the Senate in which such nomination 
                        is submitted; and
                    [(C) the members initially appointed under this 
                subsection shall serve terms of two, three, four, five, 
                and six years, respectively, from the effective date of 
                this Act, with the term of each such member to be 
                designated by the President.
    [(i) Quorum and Meetings.--After its initial meeting, the Board 
shall meet upon the call of the chairman or a majority of its members. 
Three members of the Board shall constitute a quorum.
    [(j) Compensation and Travel Expenses.--
            [(1) Compensation.--
                    [(A) Chairman.--The chairman shall be compensated 
                at a rate equal to the daily equivalent of the annual 
                rate of basic pay in effect for a position at level III 
                of the Executive Schedule under section 5314 of title 
                5, United States Code, for each day during which the 
                chairman is engaged in the actual performance of the 
                duties of the Board.
                    [(B) Members.--Each member of the Board shall be 
                compensated at a rate equal to the daily equivalent of 
                the annual rate of basic pay in effect for a position 
                at level IV of the Executive Schedule under section 
                5315 of title 5, United States Code, for each day 
                during which that member is engaged in the actual 
                performance of the duties of the Board.
            [(2) Travel expenses.--Members of the Board shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for persons employed 
        intermittently by the Government under section 5703(b) of title 
        5, United States Code, while away from their homes or regular 
        places of business in the performance of services for the 
        Board.
    [(k) Staff.--
            [(1) Appointment and compensation.--The Chairman, in 
        accordance with rules agreed upon by the Board, shall appoint 
        and fix the compensation of an executive director and such 
        other personnel as may be necessary to enable the Board to 
        carry out its functions, without regard to the provisions of 
        title 5, United States Code, governing appointments in the 
        competitive service, and without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of such title 
        relating to classification and General Schedule pay rates, 
        except that no rate of pay fixed under this subsection may 
        exceed the equivalent of that payable for a position at level V 
        of the Executive Schedule under section 5316 of title 5, United 
        States Code.
            [(2) Detailees.--Any Federal employee may be detailed to 
        the Board without reimbursement from the Board, and such 
        detailee shall retain the rights, status, and privileges of the 
        detailee's regular employment without interruption.
            [(3) Consultant services.--The Board may procure the 
        temporary or intermittent services of experts and consultants 
        in accordance with section 3109 of title 5, United States Code, 
        at rates that do not exceed the daily rate paid a person 
        occupying a position at level IV of the Executive Schedule 
        under section 5315 of such title.
    [(l) Security Clearances.--The appropriate Federal executive 
departments and agencies shall cooperate with the Board to 
expeditiously provide the Board members and staff with appropriate 
security clearances to the extent possible under existing procedures 
and requirements, except that no person shall be provided with access 
to classified information under this section without the appropriate 
security clearances.
    [(m) Treatment as Agency, not as Advisory Committee.--The Board--
            [(1) is an agency (as defined in section 551(1) of title 5, 
        United States Code); and
            [(2) is not an advisory committee (as defined in section 
        3(2) of the Federal Advisory Committee Act (5 U.S.C. App.)).
    [(n) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

            [CHAPTER 2--MUTUAL AID AND LITIGATION MANAGEMENT

[SEC. 5101. SHORT TITLE.

    [This chapter may be cited as the ``Mutual Aid and Litigation 
Management Authorization Act of 2004''.

[SEC. 5102. MUTUAL AID AUTHORIZED.

    [(a) Authorization to Enter Into Agreements.--
            [(1) In general.--The authorized representative of a State, 
        locality, or the Federal Government may enter into an 
        interstate mutual aid agreement or a mutual aid agreement with 
        the Federal Government on behalf of the State, locality, or 
        Federal Government under which, at the request of any party to 
        the agreement, the other party to the agreement may--
                    [(A) provide law enforcement, fire, rescue, 
                emergency health and medical services, transportation, 
                communications, public works and engineering, mass 
                care, and resource support in an emergency or public 
                service event occurring in the jurisdiction of the 
                requesting party;
                    [(B) provide other services to prepare for, 
                mitigate, manage, respond to, or recover from an 
                emergency or public service event occurring in the 
                jurisdiction of the requesting party; and
                    [(C) participate in training events occurring in 
                the jurisdiction of the requesting party.
    [(b) Liability and Actions at Law.--
            [(1) Liability.--A responding party or its officers or 
        employees shall be liable on account of any act or omission 
        occurring while providing assistance or participating in a 
        training event in the jurisdiction of a requesting party under 
        a mutual aid agreement (including any act or omission arising 
        from the maintenance or use of any equipment, facilities, or 
        supplies in connection therewith), but only to the extent 
        permitted under and in accordance with the laws and procedures 
        of the State of the responding party and subject to this 
        chapter.
            [(2) Jurisdiction of courts.--
                    [(A) In general.--Subject to subparagraph (B) and 
                section 5103, any action brought against a responding 
                party or its officers or employees on account of an act 
                or omission described in subsection (b)(1) may be 
                brought only under the laws and procedures of the State 
                of the responding party and only in the State courts or 
                United States District Courts located therein.
                    [(B) United states as party.--If the United States 
                is the party against whom an action described in 
                paragraph (1) is brought, the action may be brought 
                only in a United States District Court.
    [(c) Workers' Compensation and Death Benefits.--
            [(1) Payment of benefits.--A responding party shall provide 
        for the payment of workers' compensation and death benefits 
        with respect to officers or employees of the party who sustain 
        injuries or are killed while providing assistance or 
        participating in a training event under a mutual aid agreement 
        in the same manner and on the same terms as if the injury or 
        death were sustained within the jurisdiction of the responding 
        party.
            [(2) Liability for benefits.--No party shall be liable 
        under the law of any State other than its own (or, in the case 
        of the Federal Government, under any law other than Federal 
        law) for the payment of workers' compensation and death 
        benefits with respect to injured officers or employees of the 
        party who sustain injuries or are killed while providing 
        assistance or participating in a training event under a mutual 
        aid agreement.
    [(d) Licenses and Permits.--Whenever any person holds a license, 
certificate, or other permit issued by any responding party evidencing 
the meeting of qualifications for professional, mechanical, or other 
skills, such person will be deemed licensed, certified, or permitted by 
the requesting party to provide assistance involving such skill under a 
mutual aid agreement.
    [(e) Scope.--Except to the extent provided in this section, the 
rights and responsibilities of the parties to a mutual aid agreement 
shall be as described in the mutual aid agreement.
    [(f) Effect on Other Agreements.--Nothing in this section precludes 
any party from entering into supplementary mutual aid agreements with 
fewer than all the parties, or with another, or affects any other 
agreements already in force among any parties to such an agreement, 
including the Emergency Management Assistance Compact (EMAC) under 
Public Law 104-321.
    [(g) Federal Government.--Nothing in this section may be construed 
to limit any other expressed or implied authority of any entity of the 
Federal Government to enter into mutual aid agreements.
    [(h) Consistency With State Law.--A party may enter into a mutual 
aid agreement under this chapter only insofar as the agreement is in 
accord with State law.

[SEC. 5103. LITIGATION MANAGEMENT AGREEMENTS.

    [(a) Authorization to Enter Into Litigation Management 
Agreements.--The authorized representative of a State or locality may 
enter into a litigation management agreement on behalf of the State or 
locality. Such litigation management agreements may provide that all 
claims against such Emergency Response Providers arising out of, 
relating to, or resulting from an act of terrorism when Emergency 
Response Providers from more than 1 State have acted in defense 
against, in response to, or recovery from such act shall be governed by 
the following provisions.
    [(b) Federal Cause of Action.--
            [(1) In general.--There shall exist a Federal cause of 
        action for claims against Emergency Response Providers arising 
        out of, relating to, or resulting from an act of terrorism when 
        Emergency Response Providers from more than 1 State have acted 
        in defense against, in response to, or recovery from such act. 
        As determined by the parties to a litigation management 
        agreement, the substantive law for decision in any such action 
        shall be--
                    [(A) derived from the law, including choice of law 
                principles, of the State in which such acts of 
                terrorism occurred, unless such law is inconsistent 
                with or preempted by Federal law; or
                    [(B) derived from the choice of law principles 
                agreed to by the parties to a litigation management 
                agreement as described in the litigation management 
                agreement, unless such principles are inconsistent with 
                or preempted by Federal law.
            [(2) Jurisdiction.--Such appropriate district court of the 
        United States shall have original and exclusive jurisdiction 
        over all actions for any claim against Emergency Response 
        Providers for loss of property, personal injury, or death 
        arising out of, relating to, or resulting from an act of 
        terrorism when Emergency Response Providers from more than 1 
        State have acted in defense against, in response to, or 
        recovery from an act of terrorism.
            [(3) Special rules.--In an action brought for damages that 
        is governed by a litigation management agreement, the following 
        provisions apply:
                    [(A) Punitive damages.--No punitive damages 
                intended to punish or deter, exemplary damages, or 
                other damages not intended to compensate a plaintiff 
                for actual losses may be awarded, nor shall any party 
                be liable for interest prior to the judgment.
                    [(B) Collateral sources.--Any recovery by a 
                plaintiff in an action governed by a litigation 
                management agreement shall be reduced by the amount of 
                collateral source compensation, if any, that the 
                plaintiff has received or is entitled to receive as a 
                result of such acts of terrorism.
            [(4) Exclusions.--Nothing in this section shall in any way 
        limit the ability of any person to seek any form of recovery 
        from any person, government, or other entity that--
                    [(A) attempts to commit, knowingly participates in, 
                aids and abets, or commits any act of terrorism, or any 
                criminal act related to or resulting from such act of 
                terrorism; or
                    [(B) participates in a conspiracy to commit any 
                such act of terrorism or any such criminal act.

[SEC. 5104. ADDITIONAL PROVISIONS.

    [(a) No Abrogation of Other Immunities.--Nothing in this chapter 
shall abrogate any other immunities from liability that any party may 
have under any other State or Federal law.
    [(b) Exception for Certain Federal Law Enforcement Activities.--A 
mutual aid agreement or a litigation management agreement may not apply 
to law enforcement security operations at special events of national 
significance under section 3056(e) of title 18, United States Code, or 
to other law enforcement functions of the United States Secret Service.
    [(c) Secret Service.--Section 3056 of title 18, United States Code, 
is amended by adding at the end the following new subsection:
    [``(g) The Secret Service shall be maintained as a distinct entity 
within the Department of Homeland Security and shall not be merged with 
any other department function. All personnel and operational elements 
of the United States Secret Service shall report to the Director of the 
Secret Service, who shall report directly to the Secretary of Homeland 
Security without being required to report through any other official of 
the Department.''.

[SEC. 5105. DEFINITIONS.

    [For purposes of this chapter, the following definitions apply:
            [(1) Authorized representative.--The term ``authorized 
        representative'' means--
                    [(A) in the case of the Federal Government, any 
                individual designated by the President with respect to 
                the executive branch, the Chief Justice of the United 
                States with respect to the judicial branch, or the 
                President pro Tempore of the Senate and Speaker of the 
                House of Representatives with respect to the Congress, 
                or their designees, to enter into a mutual aid 
                agreement;
                    [(B) in the case of a locality, the official 
                designated by law to declare an emergency in and for 
                the locality, or the official's designee;
                    [(C) in the case of a State, the Governor or the 
                Governor's designee.
            [(2) Emergency.--The term ``emergency'' means a major 
        disaster or emergency declared by the President, or a State of 
        Emergency declared by an authorized representative of a State 
        or locality, in response to which assistance may be provided 
        under a mutual aid agreement.
            [(3) Emergency response provider.--The term ``Emergency 
        Response Provider'' means State or local emergency public 
        safety, law enforcement, emergency response, emergency medical 
        (including hospital emergency facilities), and related 
        personnel, agencies, and authorities that are a party to a 
        litigation management agreement.
            [(4) Employee.--The term ``employee'' means, with respect 
        to a party to a mutual aid agreement, the employees of the 
        party, including its agents or authorized volunteers, who are 
        committed to provide assistance under the agreement.
            [(5) Litigation management agreement.--The term 
        ``litigation management agreement'' means an agreement entered 
        into pursuant to the authority granted under section 5103.
            [(6) Locality.--The term ``locality'' means a county, city, 
        or town.
            [(7) Mutual aid agreement.--The term ``mutual aid 
        agreement'' means an agreement entered into pursuant to the 
        authority granted under section 5102.
            [(8) Public service event.--The term ``public service 
        event'' means any undeclared emergency, incident, or situation 
        in preparation for or response to which assistance may be 
        provided under a mutual aid agreement.
            [(9) Requesting party.--The term ``requesting party'' 
        means, with respect to a mutual aid agreement, the party in 
        whose jurisdiction assistance is provided, or a training event 
        is held, under the agreement.
            [(10) Responding party.--The term ``responding party'' 
        means, with respect to a mutual aid agreement, the party 
        providing assistance, or participating in a training event, 
        under the agreement, but does not include the requesting party.
            [(11) State.--The term ``State'' includes each of the 
        several States of the United States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of the Northern Mariana 
        Islands, and any other territory or possession of the United 
        States, and any political subdivision of any such place.
            [(12) Training event.--The term ``training event'' means an 
        emergency and public service event-related exercise, test, or 
        other activity using equipment and personnel to prepare for or 
        simulate performance of any aspect of the giving or receiving 
        of assistance during emergencies or public service events, but 
        does not include an actual emergency or public service event.

                   [CHAPTER 3--MISCELLANEOUS MATTERS

[SEC. 5131. ENHANCEMENT OF PUBLIC SAFETY COMMUNICATIONS 
              INTEROPERABILITY.

    [(a) Coordination of Public Safety Interoperable Communications 
Programs.--
            [(1) Program.--The Secretary of Homeland Security, in 
        consultation with the Secretary of Commerce and the Chairman of 
        the Federal Communications Commission, shall establish a 
        program to enhance public safety interoperable communications 
        at all levels of government. Such program shall--
                    [(A) establish a comprehensive national approach to 
                achieving public safety interoperable communications;
                    [(B) coordinate with other Federal agencies in 
                carrying out subparagraph (A);
                    [(C) develop, in consultation with other 
                appropriate Federal agencies and State and local 
                authorities, appropriate minimum capabilities for 
                communications interoperability for Federal, State, and 
                local public safety agencies;
                    [(D) accelerate, in consultation with other Federal 
                agencies, including the National Institute of Standards 
                and Technology, the private sector, and nationally 
                recognized standards organizations as appropriate, the 
                development of national voluntary consensus standards 
                for public safety interoperable communications;
                    [(E) encourage the development and implementation 
                of flexible and open architectures, with appropriate 
                levels of security, for short-term and long-term 
                solutions to public safety communications 
                interoperability;
                    [(F) assist other Federal agencies in identifying 
                priorities for research, development, and testing and 
                evaluation with regard to public safety interoperable 
                communications;
                    [(G) identify priorities within the Department of 
                Homeland Security for research, development, and 
                testing and evaluation with regard to public safety 
                interoperable communications;
                    [(H) establish coordinated guidance for Federal 
                grant programs for public safety interoperable 
                communications;
                    [(I) provide technical assistance to State and 
                local public safety agencies regarding planning, 
                acquisition strategies, interoperability architectures, 
                training, and other functions necessary to achieve 
                public safety communications interoperability;
                    [(J) develop and disseminate best practices to 
                improve public safety communications interoperability; 
                and
                    [(K) develop appropriate performance measures and 
                milestones to systematically measure the Nation's 
                progress towards achieving public safety communications 
                interoperability, including the development of national 
                voluntary consensus standards.
            [(2) Office for interoperability and compatibility.--
                    [(A) Establishment of office.--The Secretary may 
                establish an Office for Interoperability and 
                Compatibility to carry out this subsection.
                    [(B) Functions.--If the Secretary establishes such 
                office, the Secretary shall, through such office--
                            [(i) carry out Department of Homeland 
                        Security responsibilities and authorities 
                        relating to the SAFECOM Program; and
                            [(ii) carry out subsection (c) (relating to 
                        rapid interoperable communications capabilities 
                        for high risk jurisdictions).
            [(3) Applicability of federal advisory committee act.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
        to advisory groups established and maintained by the Secretary 
        for purposes of carrying out this subsection.
    [(b) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall report to the Congress on 
Department of Homeland Security plans for accelerating the development 
of national voluntary consensus standards for public safety 
interoperable communications, a schedule of milestones for such 
development, and achievements of such development.
    [(c) Rapid Interoperable Communications Capabilities for High Risk 
Jurisdictions.--The Secretary, in consultation with other relevant 
Federal, State, and local government agencies, shall provide technical, 
training, and other assistance as appropriate to support the rapid 
establishment of consistent, secure, and effective interoperable 
communications capabilities for emergency response providers in 
jurisdictions determined by the Secretary to be at consistently high 
levels of risk of terrorist attack.
    [(d) Definitions.--In this section:
            [(1) Interoperable communications.--The term 
        ``interoperable communications'' means the ability of emergency 
        response providers and relevant Federal, State, and local 
        government agencies to communicate with each other as 
        necessary, through a dedicated public safety network utilizing 
        information technology systems and radio communications 
        systems, and to exchange voice, data, or video with one another 
        on demand, in real time, as necessary.
            [(2) Emergency response providers.--The term ``emergency 
        response providers'' has the meaning that term has under 
        section 2 of the Homeland Security Act of 2002 (6 U.S.C. 101)
    [(e) Clarification of Responsibility for Interoperable 
Communications.--
            [(1) Under secretary for emergency preparedness and 
        response.--Section 502(7) of the Homeland Security Act of 2002 
        (6 U.S.C. 312(7)) is amended--
                    [(A) by striking ``developing comprehensive 
                programs for developing interoperative communications 
                technology, and''; and
                    [(B) by striking ``such'' and inserting 
                ``interoperable communications''.
            [(2) Office for domestic preparedness.--Section 430(c) of 
        such Act (6 U.S.C. 238(c)) is amended--
                    [(A) in paragraph (7) by striking ``and'' after the 
                semicolon;
                    [(B) in paragraph (8) by striking the period and 
                inserting ``; and''; and
                    [(C) by adding at the end the following:
            [``(9) helping to ensure the acquisition of interoperable 
        communication technology by State and local governments and 
        emergency response providers.''.

[SEC. 5132. SENSE OF CONGRESS REGARDING THE INCIDENT COMMAND SYSTEM.

    [(a) Findings.--The Congress finds that--
            [(1) in Homeland Security Presidential Directive-5, the 
        President directed the Secretary of Homeland Security to 
        develop an incident command system to be known as the National 
        Incident Management System (NIMS), and directed all Federal 
        agencies to make the adoption of NIMS a condition for the 
        receipt of Federal emergency preparedness assistance by States, 
        territories, tribes, and local governments beginning in fiscal 
        year 2005;
            [(2) in March 2004, the Secretary of Homeland Security 
        established NIMS, which provides a unified structural framework 
        for Federal, State, territorial, tribal, and local governments 
        to ensure coordination of command, operations, planning, 
        logistics, finance, and administration during emergencies 
        involving multiple jurisdictions or agencies; and
            [(3) the National Commission on Terrorist Attacks Upon the 
        United States strongly supports the adoption of NIMS by 
        emergency response agencies nationwide, and the decision by the 
        President to condition Federal emergency preparedness 
        assistance upon the adoption of NIMS.
    [(b) Sense of Congress.--It is the sense of the Congress that all 
levels of government should adopt NIMS, and that the regular use of and 
training in NIMS by States, territories, tribes, and local governments 
should be a condition for receiving Federal preparedness assistance.

[SEC. 5133. SENSE OF CONGRESS REGARDING UNITED STATES NORTHERN COMMAND 
              PLANS AND STRATEGIES.

    [It is the sense of Congress that the Secretary of Defense should 
regularly assess the adequacy of United States Northern Command's plans 
and strategies with a view to ensuring that the United States Northern 
Command is prepared to respond effectively to all military and 
paramilitary threats within the United States.]




                                                 Union Calendar No. 453

108th CONGRESS

  2d Session

                                H. R. 10

           [Report No. 108-724, Parts I, II, III, IV, and V]

_______________________________________________________________________

                                 A BILL

    To provide for reform of the intelligence community, terrorism 
    prevention and prosecution, border security, and international 
         cooperation and coordination, and for other purposes.

_______________________________________________________________________

                            October 4, 2004

 Reported from the Permanent Select Committee on Intelligence with an 
     amendment; Reported from the Committee on Armed Services with 
 amendments; Reported from the Committee on Financial Services with an 
 amendment; Referral to the Committees on Education and the Workforce, 
 Energy and Commerce, Government Reform, International Relations, the 
Judiciary, Rules, Science, Transportation and Infrastructure, Ways and 
  Means, and the Select Committee on Homeland Security extended for a 
              period ending not later than October 5, 2004

                            October 5, 2004

  Reported from the Committee on Government Reform with an amendment; 
    Reported from the Committee on the Judiciary with an amendment; 
    Committees on Education and the Workforce, Energy and Commerce, 
      International Relations, Rules, Science, Transportation and 
 Infrastructure, Ways and Means, and the Select Committee on Homeland 
 Security discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed