[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1520 Introduced in Senate (IS)]






108th CONGRESS
  1st Session
                                S. 1520

 To amend the National Security Act of 1947 to reorganize and improve 
 the leadership of the intelligence community of the United States, to 
 provide for the enhancement of the counterterrorism activities of the 
           United States Government, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 31 (legislative day, July 21), 2003

      Mr. Graham of Florida (for himself, Mrs. Feinstein, and Mr. 
 Rockefeller) introduced the following bill; which was read twice and 
            referred to the Select Committee on Intelligence

_______________________________________________________________________

                                 A BILL


 
 To amend the National Security Act of 1947 to reorganize and improve 
 the leadership of the intelligence community of the United States, to 
 provide for the enhancement of the counterterrorism activities of the 
           United States Government, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``9-11 Memorial 
Intelligence Reform Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reorganization and improvement of management of intelligence 
                            community under Director of National 
                            Intelligence.
Sec. 3. Priorities on intelligence and counterterrorism activities for 
                            the intelligence community.
Sec. 4. Comprehensive strategy on combatting terrorism.
Sec. 5. Inclusion of National Intelligence Officer for Terrorism on 
                            National Intelligence Council.
Sec. 6. Enhancement of counterterrorism capabilities of the Federal 
                            Bureau of Investigation.
Sec. 7. Reform of domestic intelligence programs and activities.
Sec. 8. Enhancement of utilization of foreign intelligence surveillance 
                            authorities by the intelligence community.
Sec. 9. Plan on enhancement of signals intelligence.
Sec. 10. Personnel initiatives for the intelligence community.
Sec. 11. Budgeting and funding of intelligence and counterterrorism 
                            activities.
Sec. 12. Report on revisions to bilateral and multilateral agreements 
                            to strengthen counterterrorism efforts.
Sec. 13. Study and recommendations on improvement of congressional 
                            oversight of the intelligence community.
Sec. 14. Treatment and classification of intelligence information.
Sec. 15. Enhancement of accountability of the intelligence community 
                            for the performance of intelligence 
                            activities.
Sec. 16. Elimination or reduction in barriers to collection and sharing 
                            of intelligence for counterterrorism 
                            purposes.
Sec. 17. National Terrorist Watchlist Center.
Sec. 18. Enhancement of efforts to identify support or involvement of 
                            foreign governments in terrorist 
                            activities.

SEC. 2. REORGANIZATION AND IMPROVEMENT OF MANAGEMENT OF INTELLIGENCE 
              COMMUNITY UNDER DIRECTOR OF NATIONAL INTELLIGENCE.

    (a) Reorganization and Improvement of Management of Intelligence 
Community.--
            (1) 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:

           ``office of the director of national intelligence

    ``Sec. 102. (a) Office of Director of National Intelligence.--(1) 
There is an Office of the Director of National Intelligence. The 
function of the Office is to assist the Director of National 
Intelligence 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 law.
    ``(2) The Office of the Director of National Intelligence is 
composed of the following:
            ``(A) The Director of National Intelligence.
            ``(B) The Deputy Director of National Intelligence.
            ``(C) The Deputy Director of National Intelligence for 
        Community Management.
            ``(D) The National Intelligence Council.
            ``(E) The Assistant Director of National Intelligence for 
        Collection.
            ``(F) The Assistant Director of National Intelligence for 
        Analysis and Production.
            ``(G) The Assistant Director of National Intelligence for 
        Administration.
            ``(H) The General Counsel to the Director of National 
        Intelligence.
            ``(I) The Inspector General of the Intelligence Community.
            ``(J) The Office of the National Counterintelligence 
        Executive.
            ``(K) Such other offices and officials as may be 
        established by law or the Director of National Intelligence may 
        establish or designate in the Office.
    ``(3) To assist the Director in fulfilling the responsibilities of 
the Director as head of the intelligence community, the Director shall 
employ and utilize in the Office of the Director of National 
Intelligence a professional staff having an expertise in matters 
relating to such responsibilities, and may establish permanent 
positions and appropriate rates of pay with respect to that staff.
    ``(b) Director of National Intelligence.--(1) There is a Director 
of National Intelligence who shall be appointed by the President, by 
and with the advice and consent of the Senate.
    ``(2) Any individual nominated for appointment as Director of 
National Intelligence shall have extensive national security expertise.
    ``(3) The Director of National Intelligence shall--
            ``(A) serve as head of the United States intelligence 
        community; and
            ``(B) act as the principal adviser to the President for 
        intelligence matters related to the national security.
    ``(c) Deputy Director of National Intelligence.--(1) There is a 
Deputy Director of National Intelligence who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(2) Any individual nominated for appointment as Deputy Director 
of National Intelligence shall have extensive national security 
expertise.
    ``(3) The Deputy Director of National Intelligence shall assist the 
Director of National Intelligence in carrying out the Director's 
responsibilities under this Act.
    ``(4) The Deputy Director of National Intelligence shall act for, 
and exercise the powers of, the Director of National Intelligence 
during the Director's absence or disability or during a vacancy in the 
position of the Director of National Intelligence.
    ``(5) The Deputy Director of National Intelligence takes precedence 
in the Office of the Director of National Intelligence immediately 
after the Director of National Intelligence.
    ``(d) Deputy Director of National Intelligence for Community 
Management.--(1) There is a Deputy Director of National Intelligence 
for Community Management who shall be appointed by the President, by 
and with the advice and consent of the Senate.
    ``(2) Any individual nominated for appointment as Deputy Director 
of National Intelligence for Community Management shall have extensive 
national security expertise.
    ``(3) The Deputy Director of National Intelligence for Community 
Management shall, subject to the direction of the Director of National 
Intelligence, be responsible for the following:
            ``(A) Directing the operations of the Community Management 
        Staff.
            ``(B) Through the Assistant Director of National 
        Intelligence for Collection, ensuring the efficient and 
        effective collection of national intelligence using technical 
        means and human sources.
            ``(C) Through the Assistant Director of National 
        Intelligence for Analysis and Production, conducting oversight 
        of the analysis and production of intelligence by elements of 
        the intelligence community.
            ``(D) Through the Assistant Director of National 
        Intelligence for Administration, performing community-wide 
        management functions of the intelligence community, including 
        the management of personnel and resources.
    ``(4) The Deputy Director of National Intelligence for Community 
Management takes precedence in the Office of the Director of National 
Intelligence immediately after the Deputy Director of National 
Intelligence.
    ``(e) 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, 
whether in active or retired status.
    ``(2) The positions referred to in this paragraph are the 
following:
            ``(A) The Director of National Intelligence.
            ``(B) The Deputy Director of National Intelligence.
            ``(C) The Deputy Director of National Intelligence for 
        Community Management.
    ``(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, 
        whether in active or retired 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 Director of 
National Intelligence.
    ``(f) National Intelligence Council.--(1) There is a National 
Intelligence Council.
    ``(2)(A) The 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, report to, and serve at the 
pleasure of the Director of National Intelligence.
    ``(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 Council shall--
            ``(A) produce national intelligence estimates for the 
        Government, including, whenever the Council considers 
        appropriate, alternative views 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 Director in carrying out the 
        responsibilities described in section 103(a).
    ``(4) Within their respective areas of expertise and under the 
direction of the Director, the members of the Council shall constitute 
the senior intelligence advisers of the intelligence community for 
purposes of representing the views of the intelligence community within 
the Government.
    ``(5) Subject to the direction and control of the Director, the 
Council may carry out its responsibilities under this subsection by 
contract, including contracts for substantive experts necessary to 
assist the Council with particular assessments under this subsection.
    ``(6) The Director shall make available to the Council such staff 
as may be necessary to permit the Council to carry out its 
responsibilities under this subsection, and shall take appropriate 
measures to ensure that the Council and its staff satisfy the needs of 
policymaking officials and other consumers of intelligence.
    ``(7) The Council shall be readily accessible to policymaking 
officials and other appropriate individuals not otherwise associated 
with the intelligence community.
    ``(8) The heads of elements within the intelligence community 
shall, as appropriate, furnish such support to the Council, including 
the preparation of intelligence analyses, as may be required by the 
Director.
    ``(g) Assistant Director of National Intelligence for Collection.--
(1) There is an Assistant Director of National Intelligence for 
Collection who shall be appointed by the President, by and with the 
advice and consent of the Senate.
    ``(2) The Assistant Director for Collection shall assist the 
Director of National Intelligence in carrying out the Director's 
collection responsibilities in order to ensure the efficient and 
effective collection of national intelligence.
    ``(h) Assistant Director of National Intelligence for Analysis and 
Production.--(1) There is an Assistant Director of National 
Intelligence for Analysis and Production who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(2) The Assistant Director for Analysis and Production shall--
            ``(A) oversee the analysis and production of intelligence 
        by the elements of the intelligence community;
            ``(B) establish standards and priorities relating to the 
        analysis and production of intelligence by such elements;
            ``(C) monitor the allocation of resources for the analysis 
        and production of intelligence in order to identify unnecessary 
        duplication in the analysis and production of intelligence;
            ``(D) direct competitive analysis of analytical products 
        having National importance;
            ``(E) identify intelligence to be collected for purposes of 
        the Assistant Director of National Intelligence for Collection; 
        and
            ``(F) provide such additional analysis and production of 
        intelligence as the President and the National Security Council 
        may require.
    ``(i) Assistant Director of National Intelligence for 
Administration.--(1) There is an Assistant Director of National 
Intelligence for Administration who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(2) The Assistant Director for Administration shall manage such 
activities relating to the administration of the intelligence community 
as the Director of National Intelligence shall require.
    ``(j) General Counsel to Director of National Intelligence.--(1) 
There is a General Counsel to the Director of National Intelligence who 
shall be appointed from civilian life by the President, by and with the 
advice and consent of the Senate.
    ``(2) The individual serving in the position of General Counsel to 
the Director of National Intelligence may not, while so serving, also 
serve as the General Counsel of the Central Intelligence Agency.
    ``(3) The General Counsel to the Director of National Intelligence 
is the chief legal officer for the Director of National Intelligence.
    ``(4) The General Counsel to the Director of National Intelligence 
shall perform such functions as the Director of National Intelligence 
may prescribe.
    ``(k) Inspector General of Intelligence Community.--(1) There shall 
be an Inspector General of the Intelligence Community who is appointed 
as provided in section 3 of the Inspector General Act of 1978 (5 U.S.C. 
App. 3).
    ``(2) The Inspector General of the Intelligence Community shall 
report to and be under the general supervision of the Director of 
National Intelligence.
    ``(3) The Inspector General of the Intelligence Community shall, 
with respect to the intelligence community as a whole and each element 
of the intelligence community, perform such duties, have such 
responsibilities, and exercise such powers specified in the Inspector 
General Act of 1978 as the Director of National Intelligence shall 
prescribe.
    ``(4) Each inspector general of an element of the intelligence 
community shall cooperate fully with the Inspector General of the 
Intelligence Community in the performance of any duty or function by 
the Inspector General of the Intelligence Community under this 
subsection regarding such element.
    ``(5) The performance by the Inspector General of the Intelligence 
Community of any duty or function regarding an element of the 
intelligence community may not be construed to modify or affect the 
responsibility of any other inspector general having responsibilities 
regarding the element of the intelligence community.

        ``responsibilities of director of national intelligence

    ``Sec. 103. (a) Provision of Intelligence.--(1) Under the direction 
of the National Security Council, the Director of National Intelligence 
shall be responsible for providing national intelligence--
            ``(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; and
            ``(D) where appropriate, to the Senate and House of 
        Representatives and the committees thereof.
    ``(2) Such national intelligence should be timely, objective, 
independent of political considerations, and based upon all sources 
available to the intelligence community.
    ``(b) Responsibilities of Director of National Intelligence.--The 
Director of National Intelligence shall--
            ``(1) develop an annual budget for intelligence and 
        intelligence-related activities of the United States by--
                    ``(A) developing and presenting to the President an 
                annual budget for the National Foreign Intelligence 
                Program, including review, approval, and modification 
                of the execution of intelligence community budgets, and 
                personnel and resource allocation in furtherance of 
                such annual budget;
                    ``(B) participating in the development by the 
                Secretary of Defense of the annual budgets for the 
                Joint Military Intelligence Program and the Tactical 
Intelligence and Related Activities Program; and
                    ``(C) managing and overseeing the execution and, if 
                necessary, the modification of the annual budget for 
                the National Foreign Intelligence Program, including 
                directing the transfer of funds or personnel between 
                elements of the intelligence community;
                    ``(D) setting, monitoring, and enforcing consistent 
                policy for the intelligence community;
                    ``(E) reviewing, approving, modifying, and 
                exercising primary management and oversight of the 
                research and development efforts of the intelligence 
                community;
                    ``(F) reviewing, approving, and coordinating 
                relationships between elements of the intelligence 
                community and foreign intelligence, law enforcement, 
                and security services;
                    ``(G) insuring that the elements of the 
                intelligence community comply fully with policies, 
                guidance, and authorities applicable to the 
                intelligence community on management, administration, 
                and law;
            ``(2) establish the requirements and priorities to govern 
        the collection of national intelligence by elements of the 
        intelligence community;
            ``(3) approve, establish, and enforce collection 
        processing, and dissemination requirements, determine 
        collection priorities, and resolve conflicts in collection 
        priorities levied on national collection assets, except as 
        otherwise agreed with the Secretary of Defense pursuant to the 
        direction of the President;
            ``(4) promote and evaluate the utility of national 
        intelligence to consumers within the Government;
            ``(5) eliminate waste and unnecessary duplication within 
        the intelligence community;
            ``(6) establish requirements and priorities for foreign 
        intelligence information to be collected under the Foreign 
        Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), 
        and provide assistance to the Attorney General to ensure that 
        information derived from electronic surveillance or physical 
        searches under that Act is disseminated so it may be used 
        efficiently and effectively for foreign intelligence purposes, 
        except that the Director shall have no authority to direct, 
        manage, or undertake electronic surveillance or physical search 
        operations pursuant to that Act unless otherwise authorized by 
        statute or Executive order;
            ``(7) protect intelligence sources and methods from 
        unauthorized disclosure; and
            ``(8) perform such other functions as the President or the 
        National Security Council may direct.

           ``authorities of director of national intelligence

    ``Sec. 103A. (a) Access to Intelligence.--To the extent recommended 
by the National Security Council and approved by the President, the 
Director of National Intelligence shall have access to all intelligence 
related to the national security which is collected by any department, 
agency, or other entity of the United States.
    ``(b) Approval of Budgets.--The Director of National Intelligence 
shall supervise the elements of the intelligence community in the 
preparation of their annual budgets, and shall approve such budgets 
before their incorporation in the National Foreign Intelligence 
Program.
    ``(c) Reprogramming.--(1) No funds made available under the 
National Foreign Intelligence Program may be reprogrammed by any 
element of the intelligence community without the prior approval of the 
Director of National Intelligence except in accordance with procedures 
issued by the Director.
    ``(2) The Secretary of Defense shall consult with the Director 
before reprogramming funds made available under the Joint Military 
Intelligence Program.
    ``(d) Transfer of Funds or Personnel Within National Foreign 
Intelligence Program.--(1)(A) In addition to any other authorities 
available under law for such purposes, the Director of National 
Intelligence may, with the approval of the Director of the Office of 
Management and Budget, transfer funds appropriated for a program within 
the National Foreign Intelligence Program to another such program and, 
in accordance with procedures to be developed by the Director, may 
transfer personnel authorized for an element of the intelligence 
community to another such element for periods up to a year.
    ``(B) The Director may only delegate a duty or authority given the 
Director under this subsection to the Deputy Director of National 
Intelligence for Community Management.
    ``(2) A transfer of funds or personnel may be made under this 
subsection only if--
            ``(A) the funds or personnel are being transferred to an 
        activity that is a higher priority intelligence activity;
            ``(B) the need for funds or personnel for such activity is 
        based on unforeseen requirements; and
            ``(C) the transfer does not involve a transfer of funds to 
        the Reserve for Contingencies of the Central Intelligence 
        Agency.
    ``(3) Funds transferred under this subsection shall remain 
available for the same period as the appropriations account to which 
transferred.
    ``(4)(A) 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.
    ``(B) 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 October 24, 1992.
    ``(5) The Director shall promptly submit to the congressional 
intelligence committees and, 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, a report on any transfer of personnel made pursuant to 
this subsection. 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.
    ``(e) Coordination With Foreign Governments.--Under the direction 
of the National Security Council and in a manner consistent with 
section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927), the 
Director of National Intelligence shall coordinate 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.
    ``(f) Use of Personnel.--The Director of National Intelligence 
shall, in coordination with the heads of departments and agencies with 
elements in the intelligence community, institute policies and programs 
within the intelligence community--
            ``(1) to provide for the rotation of personnel between the 
        elements of the intelligence community, where appropriate, and 
        to make such rotated service a factor to be considered for 
promotion to senior positions; and
            ``(2) to consolidate, wherever possible, personnel, 
        administrative, and security programs to reduce the overall 
        costs of these activities within the intelligence community.
    ``(g) Standards and Qualifications for Performance of Intelligence 
Activities.--The Director of National Intelligence shall, in 
consultation with the heads of effected agencies, develop standards and 
qualifications for persons engaged in the performance of intelligence 
activities within the intelligence community.

                     ``central intelligence agency

    ``Sec. 104. (a) In General.--There is a Central Intelligence 
Agency.
    ``(b) Function.--The function of the Agency shall be to assist the 
Director of the Central Intelligence Agency in carrying out the 
responsibilities of the Director under section 104A(d).

             ``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.
    ``(b) Head of Central Intelligence Agency.--The Director of the 
Central Intelligence Agency shall be the head of the Central 
Intelligence Agency.
    ``(c) Prohibition on Simultaneous Service as Director of National 
Intelligence.--The individual serving in the position of Director of 
the Central Intelligence Agency shall not, while so serving, also serve 
as the Director of National Intelligence.
    ``(d) General Responsibilities.--As head of the Central 
Intelligence Agency, the Director of the Central Intelligence Agency 
shall--
            ``(1) collect intelligence through human sources and by 
        other appropriate means, except that the 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 Director of National Intelligence 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 Security Council may direct.
    ``(e) Termination of Employment of CIA Employees.--(1) 
Notwithstanding any other provision of law, the Director of the Central 
Intelligence Agency may, in the Director's discretion, terminate the 
employment of any officer or employee of the Central Intelligence 
Agency whenever the Director considers such termination necessary or 
advisable in the interests of the United States.
    ``(2) Termination under paragraph (1) shall not affect the right of 
the officer or employee terminated to seek or accept employment in any 
other department or agency of the Government if declared eligible for 
such employment by the Office of Personnel Management.''.
            (2) Sense of congress on cabinet-level status of director 
        of national intelligence.--It is the sense of Congress that the 
        Director of National Intelligence should be a cabinet-level 
        officer of the United States Government.
            (3) General references.--(A) 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 Director of National Intelligence.
            (B) 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.
            (C) 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 Director of National 
        Intelligence.
            (D) 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 Director of National 
        Intelligence for Community Management.
            (E) Any reference to the Assistant Director of Central 
        Intelligence for Collection in any law, regulation, document, 
        paper, or other record of the United States shall be deemed to 
        be a reference to the Assistant Director of National 
        Intelligence for Collection.
            (F) Any reference to the Assistant Director of Central 
        Intelligence for Analysis and Production in any law, 
        regulation, document, paper, or other record of the United 
        States shall be deemed to be a reference to the Assistant 
        Director of National Intelligence for Analysis and Production.
            (G) Any reference to the Assistant Director of Central 
        Intelligence for Administration in any law, regulation, 
        document, paper, or other record of the United States shall be 
        deemed to be a reference to the Assistant Director of National 
        Intelligence for Administration.
    (b) Executive Schedule Matters.--
            (1) Executive schedule level ii.--Section 5313 of title 5, 
        United States Code, is amended by striking the item relating to 
        the Director of Central Intelligence and inserting the 
        following new items:
            ``Director of National Intelligence.
            ``Director of the Central Intelligence Agency.''.
            (2) Executive schedule level iii.--Section 5314 of title 5, 
        United States Code, is amended by striking the item relating to 
        the Deputy Directors of Central Intelligence and inserting the 
        following new item:
            ``Deputy Directors of National Intelligence (2).''.
            (3) Executive schedule level iv.--Section 5315 of title 5, 
        United States Code, is amended--
                    (A) by striking the item relating to the Assistant 
                Directors of Central Intelligence and inserting the 
                following new item:
            ``Assistant Directors of National Intelligence (3).'';
                    (B) by striking the item relating to the Inspector 
                General of the Central Intelligence Agency and 
                inserting the following new items:
            ``Inspector General, Central Intelligence Agency.
            ``Inspector General, Intelligence Community.''; and
                    (C) by inserting after the item relating to the 
                General Counsel of the Central Intelligence Agency the 
                following new item:
            ``General Counsel to the Director of National 
        Intelligence.''.
    (c) Conforming and Clerical Amendments.--
            (1) National security act of 1947.--(A) The National 
        Security Act of 1947 (50 U.S.C. 401 et seq.) is amended by 
        striking ``Director of Central Intelligence'' and inserting 
        ``Director of National Intelligence'' each place it appears in 
        the following provisions:
                    (i) Section 3(4)(A) (50 U.S.C. 401a(4)(A)), both 
                places it appears.
                    (ii) Section 3(4)(J) (50 U.S.C. 401a(4)(J)).
                    (iii) Section 3(5)(B) (50 U.S.C. 401a(5)(B)).
                    (iv) Section 3(6) (50 U.S.C. 401a(6)).
                    (v) Section 101(h)(2)(A) (50 U.S.C. 402(h)(2)(A)).
                    (vi) Section 101(h)(5) (50 U.S.C. 402(h)(5)).
                    (vii) Section 101(i)(2)(A) (50 U.S.C. 
                402(i)(2)(A)).
                    (viii) Section 101(j) (50 U.S.C. 402(j)), both 
                places it appears.
                    (ix) Section 105(a) (50 U.S.C. 403-5(a)).
                    (x) Section 105(a)(2) (50 U.S.C. 403-5(a)(2)).
                    (xi) Section 105(b)(6)(A) (50 U.S.C. 403-
                5(b)(6)(A)).
                    (xii) Section 105B(a)(1) (50 U.S.C. 403-5b(a)(1)).
                    (xiii) Section 105B(a)(2) (50 U.S.C. 403-5b(a)(2)).
                    (xiv) Section 105B(b) (50 U.S.C. 403-5b(b)), both 
                places it appears.
                    (xv) Section 105C(a)(6)(B)(viii) (50 U.S.C. 403-
                5c(a)(6)(B)(viii)).
                    (xvi) Section 105C(b) (50 U.S.C. 403-5c(b)), both 
                places it appears.
                    (xvii) Section 105D(b) both places it appears.
                    (xviii) Section 106(a)(1) (50 U.S.C. 403-6(a)(1)).
                    (xix) Section 106(b)(1) (50 U.S.C. 403-6(b)(1)).
                    (xx) Section 106(b)(3) (50 U.S.C. 403-6(b)(3)).
                    (xxi) Section 110(b) (50 U.S.C. 404e(b)).
                    (xxii) Section 110(c) (50 U.S.C. 404e(c)).
                    (xxiii) Section 111 (50 U.S.C. 404f).
                    (xxiv) Section 112(a)(1) (50 U.S.C. 404g(a)(1)).
                    (xxv) Section 112(d)(1) (50 U.S.C. 404g(d)(1)).
                    (xxvi) Section 113(b)(2)(A) (50 U.S.C. 
                404h(b)(2)(A)).
                    (xxvii) Section 113(c) (50 U.S.C. 404h(c)).
                    (xxviii) Section 114(a)(1) (50 U.S.C. 404i(a)(1)).
                    (xxix) Section 114(b)(1) (50 U.S.C. 404i(b)(1)).
                    (xxx) Section 114(c)(1).
                    (xxxi) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
                    (xxxii) Section 115(b) (50 U.S.C. 404j(b)).
                    (xxxiii) Section 115(c)(1)(B) (50 U.S.C. 
                404j(c)(1)(B)).
                    (xxxiv) Section 116(a) (50 U.S.C. 404k(a)).
                    (xxxv) Section 116(b) (50 U.S.C. 404k(b)).
                    (xxxvi) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
                    (xxxvii) Section 303(a) (50 U.S.C. 405(a)), both 
                places it appears.
                    (xxxviii) Section 501(d) (50 U.S.C. 413(d)).
                    (xxxix) Section 502(a) (50 U.S.C. 413a(a)).
                    (xl) Section 502(c) (50 U.S.C. 413a(c)).
                    (xli) Section 503(b) (50 U.S.C. 413b(b)).
                    (xlii) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
                    (xliii) Section 506(b).
                    (xliv) Section 603(a) (50 U.S.C. 423(a)).
                    (xlv) Section 1001(a).
            (B) The National Security Act of 1947 is further amended by 
        striking ``Director of Central Intelligence'' and inserting 
        ``Director of the Central Intelligence Agency'' each place it 
        appears in the following provisions:
                    (i) Section 504(a)(2) (50 U.S.C. 414(a)(2)).
                    (ii) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
                    (iii) Section 701(a) (50 U.S.C. 431(a)).
                    (iv) Section 702(a) (50 U.S.C. 432(a)).
            (C) Section 3(4)(A) of that Act (50 U.S.C. 401a(4)(A)) is 
        further amended--
                    (i) by striking ``as provided in section 
                105(b)(3)'' and inserting ``as provided in section 
                102(f)''; and
                    (ii) by striking ``the Director may'' and inserting 
                ``the Director of National Intelligence may''.
            (D) Section 105(b) of that Act (50 U.S.C. 403-5(b)) is 
        further amended by striking ``sections 103 and 104'' and 
        inserting ``sections 103, 103A, and 104A''.
            (E) Section 112(d) of that Act (50 U.S.C. 404g(d)) is 
        further amended--
                    (i) in paragraph (1), by striking ``section 
                103(c)(6) of this Act'' and inserting ``section 
                103(b)(7)''; and
                    (ii) in paragraph (2), by striking ``of this Act''.
            (F) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is 
        amended by striking ``or the Office of the Director of Central 
        Intelligence'' and inserting ``the Office of the Director of 
        National Intelligence, or the Office of the Director of the 
        Central Intelligence Agency''.
            (G) Section 1001(b) of that Act is amended by striking 
        ``Assistant Director of Central Intelligence for 
        Administration'' and inserting ``Assistant Director of National 
        Intelligence for Administration''.
            (H) The subsection caption of section 105(d) of that Act 
        (50 U.S.C. 403-5(d)) is amended by striking ``the Director of 
        Central Intelligence'' and inserting ``Director of National 
        Intelligence''.
            (I) Section 106 of that Act (50 U.S.C. 403-6) is further 
        amended--
                    (i) in the subsection caption for subsection (a), 
                by striking ``DCI'' and inserting ``DNI''; and
                    (ii) in the subsection caption for subsection (b), 
                by striking ``DCI'' and inserting ``DNI''.
            (J) The heading for section 114 of that Act (50 U.S.C. 
        404i) is amended to read as follows:

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

            (K) The table of sections for that Act is amended--
                    (i) by striking the items relating to sections 102 
                through 104 and inserting the following new items:

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

``Sec. 114. Additional annual reports from the Director of National 
                            Intelligence.''.
            (2) Central intelligence agency act of 1949.--(A) Section 1 
        of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403a) 
        is amended--
                    (i) by redesignating paragraphs (a) and (c) as 
                paragraphs (1) and (3), respectively; and
                    (ii) by striking paragraph (b) and inserting the 
                following new paragraph (2):
            ``(2) `Director' means the Director of the Central 
        Intelligence Agency; and''.
            (B) Section 6 of that Act (50 U.S.C. 403g) is amended--
                    (i) by striking ``Director of Central 
                Intelligence'' and inserting ``Director of National 
                Intelligence''; and
                    (ii) by striking ``section 103(c)(6) of the 
                National Security Act of 1947 (50 U.S.C. 403-3(c)(6))'' 
                and inserting ``section 103(b)(7) of the National 
                Security Act of 1947''.
            (C) 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'':
                    (i) Section 14(b) (50 U.S.C. 403n(b)).
                    (ii) Section 16(b)(2) (50 U.S.C. 403p(b)(2)).
                    (iii) Section 16(b)(3) (50 U.S.C. 403p(b)(3)), both 
                places it appears.
                    (iv) Section 20(g)(3)(B) (50 U.S.C. 403u(g)(3)(B)).
                    (v) Section 20(h)(1) (50 U.S.C. 403u(h)(1)).
                    (vi) Section 20(h)(2) (50 U.S.C. 403u(h)(2)).
            (D) That Act is further amended by striking ``of Central 
        Intelligence'' in each of the following provisions:
                    (i) Section 16(c)(1)(B) (50 U.S.C. 403p(c)(1)(B)).
                    (ii) Section 17(d)(1) (50 U.S.C. 403q(d)(1)).
                    (iii) Section 17(f) (50 U.S.C. 403q(f)), both 
                places it appears.
                    (iv) Section 20(c) (50 U.S.C. 403t(c)).
            (3) Central intelligence agency retirement act.--(A) 
        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.''.
            (B) Section 201(c) of that Act (50 U.S.C. 2011) 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 103(b)(7) of the 
        National Security Act of 1947 that the Director of the National 
        Intelligence''.
            (4) 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;''.
            (5) Inspector general act of 1978.--Section 8H(a)(1)(C) of 
        the Inspector General Act of 1978 (5 U.S.C. App. 8H(a)(1)(C)) 
is amended by inserting before the period at the end the following: 
``or to the Inspector General of the Intelligence Community''.
            (6) Foreign intelligence surveillance act of 1978.--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 ``Director 
        of National Intelligence''.
            (7) 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 ``Director of National Intelligence''.
            (8) Intelligence authorization acts.--
                    (A) 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 ``Director of National Intelligence''.
                    (B) Public law 107-306.--(i) Section 313(a) of 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,'' and inserting ``Director of 
                National Intelligence''.
                    (ii) Section 341 of that Act 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 ``Director 
                of National Intelligence shall establish within the 
                intelligence community''.
                    (iii) Section 343 of that Act is amended--
                            (I) in subsection (a)(1), by striking 
                        ``Director of Central Intelligence, acting as 
                        the head of the Intelligence Community,'' and 
                        inserting ``Director of National 
                        Intelligence'';
                            (II) in subsection (c), by striking 
                        ``section 103(c)(6) of the National Security 
                        Act of 1947 (50 U.S.C. 403-3(c)(6))'' and 
                        inserting ``section 103(b)(7) of the National 
                        Security Act of 1947''; and
                            (III) in subsection (e)(2), by striking 
                        ``section 103(c)(6)'' and inserting ``section 
                        103(b)(7)''.
                    (iv) Section 352(b) of that Act is amended by 
                inserting ``of National Intelligence'' after ``The 
                Director''.
                    (v) That Act is further amended by striking 
                ``Director of Central Intelligence'' each place it 
                appears in the following provisions and inserting 
                ``Director of National Intelligence'':
                            (I) Section 902(a)(2).
                            (II) Section 904(e)(4).
                            (III) Section 904(e)(5).
                            (IV) Section 904(h)(1).
                    (vi) That Act is further amended by striking 
                ``Office of the Director of Central Intelligence'' each 
                place it appears in the following provisions and 
                inserting ``Office of the Director of National 
                Intelligence'':
                            (I) Section 904(c).
                            (II) Section 904(l).
                    (vii) Section 904(m) of that Act is amended by 
                inserting ``the Director of National Intelligence,'' 
                before ``the Director of Central Intelligence''.
            (9) USA patriot act of 2001.--The USA PATRIOT Act of 2001 
        (Public Law 107-56) is amended by striking ``Director of 
        Central Intelligence'' and inserting ``Director of National 
        Intelligence'' each place it appears in the following 
        provisions:
                    (A) Section 203(d)(1) (50 U.S.C. 403-5d(d)(1)), as 
                amended by section 897(a) of the Homeland Security Act 
                of 2002 (Public Law 107-296), both places it appears.
                    (B) Section 908(a) (115 Stat. 391).
                    (C) Section 1006(b) (115 Stat. 394).
            (10) Homeland security act of 2002.--The Homeland Security 
        Act of 2002 (Public Law 107-296) is amended by striking 
        ``Director of Central Intelligence'' and inserting ``Director 
        of National Intelligence'' each place it appears in the 
        following provisions:
                    (A) Section 201(d)(10).
                    (B) Section 201(d)(12)(B).
                    (C) Section 202(c).
                    (D) Section 202(d)(2).
                    (E) Section 601(c)(6).
                    (F) Section 601(e).
                    (G) Section 601(f).
                    (H) Section 892(b)(7).
                    (I) Section 1001(c)(1)(A).
            (11) Title 18, united states code.--(A) Section 2517(8) of 
        title 18, United States Code, is amended by striking ``Director 
        of Central Intelligence'' and inserting ``Director of National 
        Intelligence''.
            (B) Subsections (d)(7)(B)(iv) and (i)(5)(B)(iv) of such 
        title are amended by striking ``Director of Central 
        Intelligence'' and inserting ``Director of National 
        Intelligence, or the head of another element of the 
        intelligence community''.
            (12) Title 44, united states code.--Section 3535(g)(3) of 
        title 44, United States Code, is amended by striking ``Director 
        of Central Intelligence'' and inserting ``Director of National 
        Intelligence''.
            (13) Federal rules of criminal procedure.--Paragraphs (2) 
        and (3) of section 6(e) of the Federal Rules of Criminal 
        Procedure are amended by striking ``Director of Central 
        Intelligence'' and inserting ``Director of National 
        Intelligence''.

SEC. 3. PRIORITIES ON INTELLIGENCE AND COUNTERTERRORISM ACTIVITIES FOR 
              THE INTELLIGENCE COMMUNITY.

    (a) In General.--(1) Title I of the National Security Act of 1947 
(50 U.S.C. 402 et seq.) is amended by inserting after section 101 the 
following new section:

 ``priorities on intelligence and counterterrorism activities for the 
                         intelligence community

    ``Sec. 101A. (a) Priorities.--The President shall take appropriate 
actions to ensure the following:
            ``(1) The establishment of priorities for the intelligence, 
        intelligence-related, and counterterrorism activities of the 
        United States Government.
            ``(2) The discharge of the intelligence, intelligence-
        related, and counterterrorism activities of the United States 
        Government by the elements of the intelligence community in 
        accordance with the priorities.
    ``(b) Review and Update of Priorities.--(1) The President shall 
ensure that the priorities established under subsection (a)(1) are 
reviewed and updated on an annual basis.
    ``(2) The purpose of the reviews and updates is to ensure the most 
effective allocation of the personnel and other resources of the 
intelligence community as threats to the United States evolve.
    ``(c) Annual Report.--Not later than the date each year provided in 
section 507, the Director of National Intelligence shall submit to the 
congressional intelligence committees a report on the priorities for 
the intelligence, intelligence-related, and counterterrorism activities 
of the United States Government in effect under this section, including 
a justification for such priorities.''.
    (2) The table of contents for that Act is amended by inserting 
after the item relating to section 101 the following new item:

``101A. Priorities on intelligence and counterterrorism activities for 
                            the intelligence community.''.
    (b) Submittal of Annual Reports.--Section 507(a)(1) of that Act (50 
U.S.C. 415b(a)(1)) is amended--
            (1) by redesignating subparagraphs (A) through (N) as 
        subparagraphs (B) through (O), respectively; and
            (2) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
            ``(A) The annual report on priorities for the intelligence 
        and counterterrorism activities of the United States Government 
        required by section 101A.''.

SEC. 4. COMPREHENSIVE STRATEGY ON COMBATTING TERRORISM.

    (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.) is amended by inserting after section 108 the 
following new section:

              ``national strategy on combatting terrorism

    ``Sec. 108A. (a) In General.--In addition to any other duties under 
this Act, the National Security Council shall prepare a comprehensive 
government-wide strategy for combatting terrorism that fully utilizes 
the capabilities and expertise of the foreign policy, economic, 
military, intelligence, and law enforcement elements of the United 
States Government to address the treat of terrorism to the United 
States, whether in the United States or abroad, including the threat 
arising from the proliferation of weapons of mass destruction.
    ``(b) Consultation.--The strategy required by this section shall be 
developed in consultation with the following:
            ``(1) The Director of National Intelligence.
            ``(2) The Secretary of Homeland Security.
            ``(3) The Secretary of State.
            ``(4) The Secretary of Defense.
            ``(5) Any other officer of the United States Government 
        that the National Security Council considers appropriate.
    ``(c) Intelligence Community Elements of Strategy.--(1) In 
preparing the elements of the strategy required by this section that 
involve the intelligence community, the Director of National 
Intelligence shall develop specific plans, including programs and the 
allocation of appropriate resources therefor, for addressing the threat 
of terrorism posed by Usama Bin Ladin, al Qaeda, Hezbollah, Hamas, and 
other significant terrorists and terrorist organizations.
    ``(2) The plans developed under paragraph (1) shall, in a manner 
fully consistent with United States law, include the following:
            ``(A) The development of human resources to penetrate 
        terrorist organizations and networks in the United States and 
        abroad.
            ``(B) The utilization of current technologies, and the 
        development and enhancement of technologies, in order to--
                    ``(i) intercept, analyze, and exploit the 
                communications of terrorists and terrorist 
                organizations;
                    ``(ii) conduct effective data-mining and other 
                forms of similar analysis; and
                    ``(iii) facilitate the timely and effective sharing 
                of intelligence both within the intelligence community 
                and between the intelligence community and other 
                elements of the United States Government and State and 
                local governments.
            ``(C) The enhancement of domestic intelligence collection 
        and analysis, including the enhancement of information 
        technology in order to permit links between new information and 
        previously-acquired information.
            ``(D) The maximization of the use of covert actions in 
        counterterrorism efforts.
            ``(E) The development of means of identifying and tracking 
        financial support for terrorism.
            ``(F) The enhancement of the capabilities of the 
        paramilitary units of the Central Intelligence Agency and the 
        special operations forces of the Armed Forces to conduct joint 
        operations against terrorists and terrorist organizations.
    ``(d) Update.--The National Security Council shall provide for the 
on-going update of the strategy required by this section in order to 
take into account changes in circumstances.
    ``(e) Approval of President.--The strategy required by this 
section, including any update of the strategy under subsection (d), 
shall not take effect until approved by the President.''.
    ``(f) Reports to Congress.--(1) The President shall transmit to 
Congress the strategy required by this section, including any update of 
the strategy under subsection (d).
    ``(2) Each transmittal under this subsection shall be in both 
classified and unclassified form.''.
    (b) Clerical Amendments.--The table of contents for that Act is 
amended--
            (1) by striking the following:

``Sec. 104. Annual national security strategy report.''; and
            (2) by inserting after the item relating to section 108 the 
        following new item:

``Sec. 108A. National strategy on combatting terrorism.''.

SEC. 5. INCLUSION OF NATIONAL INTELLIGENCE OFFICER FOR TERRORISM ON 
              NATIONAL INTELLIGENCE COUNCIL.

    Section 102(f)(2) of the National Security Act of 1947, as amended 
by section 2(a)(1) of this Act, is further amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A) the following new 
        subparagraph (B):
    ``(B) One of the members of the Council shall be known as the 
National Intelligence Officer on Terrorism. In addition to any other 
responsibilities for the Council, the National Intelligence Officer on 
Terrorism shall prepare intelligence estimates on terrorism for the use 
of policymakers in the Executive branch, and in Congress, and to assist 
the intelligence community in developing strategic analyses and 
assessment of terrorism. The individual appointed as the National 
Intelligence Officer on Terrorism shall be highly qualified in matters 
relating to the responsibilities of the position.''.

SEC. 6. ENHANCEMENT OF COUNTERTERRORISM CAPABILITIES OF THE FEDERAL 
              BUREAU OF INVESTIGATION.

    (a) Actions Required.--The Director of the Federal Bureau of 
Investigations shall, as soon as practicable after the date of the 
enactment of this Act, take appropriations actions to enhance the 
counterterrorism capabilities of the Federal Bureau of Investigation, 
including the actions set forth under subsection (b).
    (b) Particular Actions.--The actions set forth in this subsection 
are actions to achieve the following:
            (1) The strengthening of counterterrorism as a national 
        program of the Federal Bureau of Investigation through the 
        clear designation of national priorities for counterterrorism 
        and the enforcement of adherence by the field offices of the 
        Bureau to such priorities.
            (2) The establishment and maintenance of independent career 
        tracks for personnel in the Federal Bureau of Investigation to 
        provide recognition and incentives for analysts, agents, and 
        other personnel who demonstrate skill and achievement in 
        counterterrorism activities.
            (3) The improvement of the strategic analytical 
        capabilities of the Federal Bureau of Investigation on 
        counterterrorism through the assurance of qualifications, 
        training, and independence of analysts and the provision of 
        access of analysts to appropriate information and resources.
            (4) The establishment and maintenance of an effective 
        reports officer cadre at the headquarters and the field offices 
        of the Federal Bureau of Investigation in order to facilitate 
        the timely dissemination of intelligence from agents to 
        analysts within the Bureau and to analysts within other 
        elements of the intelligence community.
            (5) The implementation of training for agents of the 
        Federal Bureau of Investigation in the effective use of 
        analysts and their work.
            (6) The expansion and maintenance of recruitment of agents 
        and analysts for the Federal Bureau of Investigation with the 
        linguistic skills necessary for counterterrorism work.
            (7) The enhancement of efforts of the Federal Bureau of 
        Investigation to penetrate terrorist organizations operating in 
        the United States through all available means of collection.
            (8) The improvement of training for Federal Bureau of 
        Investigation personnel in the national security law of the 
        United States.
            (9) The implementation and maintenance of mechanisms to 
        maximize the exchange of information relating to 
        counterterrorism between and among the Federal Bureau of 
        Investigation, other departments and agencies of the Federal 
        Government, and State and local governments.
            (10) The identification and remediation of persistent 
        inadequacies in the information technology of the Federal 
        Bureau of Investigation.

SEC. 7. REFORM OF DOMESTIC INTELLIGENCE PROGRAMS AND ACTIVITIES.

    (a) Report on Reform Required.--Not later than 180 days after the 
date of the enactment of this Act, the Director of National 
Intelligence, the Attorney General, and the Secretary of Homeland 
Security shall jointly submit to Congress a report on reforms in the 
conduct of the domestic intelligence programs and activities of the 
United States Government.
    (b) Elements.--The report under subsection (a) shall include the 
following:
            (1) A description of the progress made by the Federal 
        Bureau of Investigation since September 11, 2001, in 
        implementing reforms required for the effective conduct of 
        domestic intelligence programs and activities, including 
        reforms to ensure an effective balance between the pursuit of 
        counterterrorism and the protection of civil liberties.
            (2) An assessment of the experiences of other democratic 
        nations in conducting domestic intelligence programs and 
        activities, including the lessons of such nations that may be 
        applicable to the conduct of the domestic intelligence programs 
        and activities of the United States Government.
            (3) An assessment of the advisability of establishing a new 
        domestic intelligence service in the United States Government 
        in order to enhance the conduct of the domestic intelligence 
        programs and activities of the United States Government, 
        including if the establishment of the service is determined 
        advisable--
                    (A) a plan for the service; and
                    (B) a description of the manner in which the 
                activities of the service under the plan will provide 
                an appropriate balance between the protection of the 
                national security and the protection of civil 
                liberties.
            (4) Any recommendations that the officials jointly consider 
        appropriate regarding the most appropriate means of providing a 
        domestic intelligence capability in the United States, 
        including a description of any legislative or administrative 
        actions necessary to implement the recommendations.

SEC. 8. ENHANCEMENT OF UTILIZATION OF FOREIGN INTELLIGENCE SURVEILLANCE 
              AUTHORITIES BY THE INTELLIGENCE COMMUNITY.

    (a) Training in Availability and Utilization of Authorities.--(1) 
The Attorney General shall, in consultation with the Director of the 
Federal Bureau of Investigation, provide detailed training to 
appropriate personnel of the Federal Bureau of Investigation, and to 
appropriate personnel of other elements of the intelligence community, 
on the availability and utilization of the authorities provided by the 
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) 
to address terrorist threats to the United States.
    (2) The Attorney General shall provide the training required by 
paragraph (1) through the Office of Intelligence Policy and Review of 
the Department of Justice and through such other elements of the 
Department as the Attorney General considers appropriate.
    (b) Dissemination of Information Acquired by Foreign Intelligence 
Surveillance.--The Attorney General and the Director of the Federal 
Bureau of Investigation shall jointly take appropriate actions to 
ensure that the information acquired through electronic surveillance, 
searches, and other activities under the Foreign Intelligence 
Surveillance Act of 1978 is disseminated on a timely basis to 
appropriate personnel within the Federal Bureau of Investigation, and 
appropriate personnel in other elements of the intelligence community, 
in order to facilitate the use of such information for analysis and 
operations to address terrorists threats to the United States.
    (c) Plan on Utilization of Foreign Intelligence Surveillance 
Authorities To Assess Threats of International Terrorist Groups.--The 
Attorney General and the Director of the Federal Bureau of 
Investigation shall jointly develop a plan to utilize the authorities 
under the Foreign Intelligence Surveillance Act of 1978 to provide for 
the full assessment of the threats posed to the United States by 
international terrorist groups operating within the United States, 
including the determination of the extent to which such groups are 
funded or otherwise supported by foreign governments.

SEC. 9. PLAN ON ENHANCEMENT OF SIGNALS INTELLIGENCE.

    (a) Report on Plan Required.--Not later than 90 days after the date 
of the enactment of this Act, the Director of the National Security 
Agency shall submit to the Director of National Intelligence and the 
Secretary of Defense, and to the congressional intelligence committees, 
a report containing a plan for the enhancement of the signals 
intelligence program of the United States.
    (b) Elements.--The plan under the report required by subsection (a) 
shall include the following:
            (1) A detailed description of potential solutions for the 
        technological challenges currently faced by the signals 
        intelligence program.
            (2) Mechanisms for the quarterly review of each technology 
        development program for the signals intelligence program, 
        including the quarterly review for each such technology 
        development program of--
                    (A) the objectives of such program;
                    (B) the products to be delivered through such 
                program;
                    (C) the funding required for such program; and
                    (D) the schedules associated with such program.
            (3) A proposal for making the National Security Agency a 
        full cooperating partner with the Central Intelligence Agency 
        and the Federal Bureau of Investigation in the war on 
        terrorism, including proposals for integrating the collection 
        and analytic capabilities for such agencies.
            (4) Recommendations for such legislative or administrative 
        action as may be necessary to implement the plan.
    (c) Congressional Intelligence Committees Defined.--In this 
section, the term ``congressional intelligence committees'' means--
            (1) the Select Committee on Intelligence of the Senate; and
            (2) the Permanent Select Committee on Intelligence of the 
        House of Representatives.

SEC. 10. PERSONNEL INITIATIVES FOR THE INTELLIGENCE COMMUNITY.

    The Director of National Intelligence shall take appropriate 
actions to require initiatives within the intelligence to improve and 
enhance the quality of the personnel of the intelligence community, 
including initiatives as follows:
            (1) Initiatives to enhance and improve the counterterrorism 
        training for personnel of the intelligence community, including 
        expansion of such training to improve and enhance--
                    (A) intelligence sharing between and among 
                intelligence personnel and law enforcement personnel;
                    (B) language capabilities;
                    (C) the utilization of the authorities under the 
                Foreign Intelligence Surveillance Act of 1978 (50 
                U.S.C. 1801 et seq.); and
                    (D) watchlisting.
            (2) Other initiatives to enhance and improve the language 
        capabilities of the intelligence community, including--
                    (A) the establishment of a Civilian Linguist 
                Reserve Corps; and
                    (B) the identification and recruitment to the 
                intelligence community of individuals outside the 
                intelligence community who possess language 
                capabilities useful to intelligence and 
                counterterrorism activities.
            (3) Expansion of the current Intelligence Community Reserve 
        Corps to include personnel outside the intelligence community 
        who possess expertise useful to intelligence and 
        counterterrorism activities.
            (4) Initiatives to recruit and retain within the 
        intelligence community a more ethnically and culturally diverse 
        workforce, including initiatives to recruit and retain first-
        generation Americans, and to utilize the language capabilities 
        of such individuals, while recognizing the counterintelligence 
        challenges posed by including such individuals in the 
        intelligence community workforce.

SEC. 11. BUDGETING AND FUNDING OF INTELLIGENCE AND COUNTERTERRORISM 
              ACTIVITIES.

    (a) Budget Amounts for Intelligence Activities.--(1) Subsection (a) 
of section 506 of the National Security Act of 1947 (50 U.S.C. 415a(a)) 
is amended by adding at the end the following new paragraph:
            ``(5) All other intelligence and intelligence-related 
        activities.''.
    (2) The heading of that section is amended to read as follows:

     ``specificity of national foreign intelligence program budget 
                               amounts''.

    (b) Cost-Benefit Analyses of Allocations of Resources for 
Intelligence.--(1) Not later than 90 days after the date of the 
enactment of this Act, the Director of National Intelligence shall 
submit to the congressional intelligence committees a report on the 
feasibility and advisability of providing for the conduct, by an agency 
or entity outside the intelligence community, of thorough and rigorous 
cost-benefit analyses of the allocations of resources for the 
intelligence and intelligence-related activities of the United States 
Government.
    (2) If the Director determines for purposes of the report under 
paragraph (1) that the conduct of cost-benefit analyses as described in 
that paragraph is feasible and advisable, the report under that 
paragraph shall include recommendations on the agency or entity to 
conduct the cost-benefit analyses.
    (3) In this subsection, the term ``congressional intelligence 
communities'' means--
            (A) the Select Committee on Intelligence of the Senate; and
            (B) the Permanent Select Committee on Intelligence of the 
        House of Representatives.
    (c) Flexibility in Expenditures for Counterterrorism Activities.--
Section 504 of the National Security Act of 1947 (50 U.S.C. 414) is 
amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Notwithstanding subsection (a)(3), appropriated funds 
available to an intelligence agency for a counterterrorism activity may 
be obligated and expended for a counterterrorism activity of a similar 
or higher priority if the head of the intelligence agency--
            ``(1) determines that the availability of such funds for 
        such counterterrorism activity is necessary to respond to 
        altered or unanticipated needs; and
            ``(2) notifies the appropriate congressional committees of 
        the intent to such funds available for such counterterrorism 
        activity.''.
    (d) Budgeting for Counterterrorism Activities.--Title V of the 
National Security Act of 1947 (50 U.S.C. 413 et seq.) is amended by 
inserting after section 506 the following new section:

         ``budgeting and funding of counterterrorism activities

    ``Sec. 506A. (a) Budgeting.--In requesting funds for 
counterterrorism activities under the National Foreign Intelligence 
Program for a fiscal year, the President shall take into account the 
requirements and priorities on counterterrorism for that fiscal year as 
specified in the national strategy on combatting terrorism.
    ``(b) Funding.--In allocating funds for counterterrorism activities 
under the National Foreign Intelligence Program for a fiscal year, the 
Director of National Intelligence shall take into account the 
requirements and priorities on counterterrorism for that fiscal year as 
specified in the national strategy on combatting terrorism.
    ``(c) Practices and Procedures.--The Director shall take 
appropriate actions to ensure that the budgeting and funding practices 
and procedures of the intelligence community take into account the 
requirements and priorities on counterterrorism as specified in the 
national strategy on combatting terrorism.
    ``(d) National Strategy on Combatting Terrorism Defined.--In this 
section, the term `national strategy on combatting terrorism' means the 
most current national strategy on combatting terrorism under section 
108A.''.
    (e) Clerical Amendment.--The table of contents for that Act is 
amended by striking the item relating to section 506 and inserting the 
following new items:

``506. Specificity of National Foreign Intelligence Program budget 
                            amounts.
``506A. Budgeting and funding of counterterrorism activities.''.

SEC. 12. REPORT ON REVISIONS TO BILATERAL AND MULTILATERAL AGREEMENTS 
              TO STRENGTHEN COUNTERTERRORISM EFFORTS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of State shall, in consultation with the Attorney 
General, submit to the President and Congress a report on the extent to 
which United States counterterrorism efforts could be strengthened by 
revising extradition and mutual assistance treaties and other bilateral 
and multilateral agreements, including by revising such agreements to 
include as extraditable offenses visa and immigration fraud and other 
offenses the enforcement of which is critical to efforts to combat and 
prevent terrorism.

SEC. 13. STUDY AND RECOMMENDATIONS ON IMPROVEMENT OF CONGRESSIONAL 
              OVERSIGHT OF THE INTELLIGENCE COMMUNITY.

    (a) Study by National Commission on Terrorist Attacks Upon the 
United States.--Section 604 of the Intelligence Authorization Act for 
Fiscal Year 2003 (Public Law 107-306; 116 Stat. 2409; 6 U.S.C. 101 
note) is amended--
            (1) in subsection (b), by inserting ``under subsection 
        (a)'' after ``the intelligence community''; and
            (2) by adding at the end the following new subsection:
    ``(c) Study on Improvement of Congressional Oversight of 
Intelligence Community.--(1) In addition to the other functions of the 
Commission under this section, the Commission shall conduct a study of 
means by which Congress may improve its oversight of the intelligence 
community and its activities.
    ``(2) In conducting the study, the Commission shall consider the 
following:
            ``(A) The advisability of modifications in the budget 
        process for funding the intelligence community in order to 
        improve that process.
            ``(B) The advisability of modifications in the rules 
        regarding membership on the Select Committee on Intelligence of 
        the Senate and the Permanent Select Committee on Intelligence 
        of the House of Representatives in order to improve the 
        oversight of the intelligence community by such committees.
            ``(C) Whether or not the oversight responsibility of 
        Congress for the intelligence community should be vested in a 
joint committee of the Senate and House of Representatives rather than 
a separate committee in each house of Congress.
            ``(D) Whether or not decisions of the intelligence 
        community on the classification of information impede the 
        discharge of the oversight responsibility of Congress for the 
        intelligence community, and, if so, the advisability of 
        modifications to the procedures on the classification of 
        information in order to eliminate or reduce such impediments.
            ``(E) Mechanisms by which Congress may discharge the 
        oversight responsibility of Congress for the intelligence 
        community in a manner which facilitates the adaptations of the 
        intelligence community to changes in circumstances, including 
        changes in intelligence priorities, and to changes in the 
        requirements of policymakers.
            ``(F) Any other matters on the oversight responsibility of 
        Congress for the intelligence community that the Commission 
        considers appropriate.
    ``(3) In this subsection, the term `intelligence community' has the 
meaning given that term in section 3(4) of the National Security Act of 
1947 (50 U.S.C. 401(a)(4)).''.
    (b) Report and Recommendations.--Section 610(b) of that Act is 
amended--
            (1) by inserting ``(1)'' before ``Not later than''; and
            (2) by adding at the end the following paragraph:
    ``(2) The final report shall also include the findings of the 
Commission as a result of the study under section 604(c) and any 
recommendations that the Commission considers appropriate in light of 
such findings.''.

SEC. 14. TREATMENT AND CLASSIFICATION OF INTELLIGENCE INFORMATION.

    (a) Review of Treatment of Intelligence Information.--The President 
shall review the policies and procedures that govern the classification 
and availability of intelligence information (including Executive 
Orders on such matters) in order to determine the advisability of 
modifying or reforming such policies and procedures to--
            (1) expand access to relevant intelligence information, 
        including making such information available, as appropriate, 
        to--
                    (A) Federal agencies outside the intelligence 
                community;
                    (B) State and local authorities, which are 
                instrumental in the fight against terrorism; and
                    (C) the American public; and
            (2) ensure that policies and procedures designed to protect 
        against the unauthorized disclosure of classified intelligence 
        information are well understood, fully implemented, and 
        vigorously enforced.
    (b) Report on Designation of Intelligence Information.--Not later 
than 180 days after the date of the enactment of this Act, the Director 
of National Intelligence shall, in consultation with the Secretary of 
Defense, the Secretary of State, the Secretary of Homeland Security, 
and the Attorney General, submit to congressional intelligence 
committees a report that includes proposals for--
            (1) reforming the processes and structures that govern the 
        designation of sensitive and classified intelligence 
        information; and
            (2) protecting such processes from misuse and abuse.
    (c) Congressional Intelligence Committees Defined.--In this 
section, the term ``congressional intelligence committees'' means--
            (1) the Select Committee on Intelligence of the Senate; and
            (2) the Permanent Select Committee on Intelligence of the 
        House of Representatives.

SEC. 15. ENHANCEMENT OF ACCOUNTABILITY OF THE INTELLIGENCE COMMUNITY 
              FOR THE PERFORMANCE OF INTELLIGENCE ACTIVITIES.

    (a) In General.--The Director of National Intelligence and the 
heads of the other elements of the intelligence community shall 
separately and jointly take appropriate actions to ensure the 
implementation throughout the intelligence community of mechanisms to 
provide, promote, and enhance the accountability of the elements of the 
intelligence community for the performance of the intelligence and 
intelligence-related activities of the Federal Government.
    (b) Particular Mechanisms.--The mechanisms to be implemented under 
subsection (a) shall include the following:
            (1) Mechanisms to identify poor performance and to affix 
        responsibility for such performance.
            (2) Mechanisms to identify outstanding performance and to 
        recognize and reward such performance.
    (c) Report on Mechanisms.--Not later than 180 days after the date 
of the enactment of this Act, the Director of National Intelligence 
shall submit to the congressional intelligence committees a report on 
the mechanisms implemented, and proposed to be implemented, under 
subsection (a), including the actions taken, and proposed to be taken, 
to implement such mechanisms throughout the intelligence community.
    (d) Response to Reviews of Intelligence Activities Relating to 
September, 11, 2001, Terrorist Attacks.--(1) The Inspector General of 
each covered agency shall--
            (A) review the findings and records of--
                    (i) the Joint Inquiry of the Select Committee on 
                Intelligence of the Senate and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives regarding the terrorist attacks of 
                September 11, 2001; and
                    (ii) the National Commission on Terrorist Attacks 
                Upon the United States established by section 601 of 
                the Intelligence Authorization Act for Fiscal Year 2003 
                (Public Law 107-306; 116 Stat. 2408; 6 U.S.C. 101 
                note); and
            (B) conduct such supplemental investigations as such 
        Inspector General considers appropriate in light of such 
        findings and records in order to determine the following:
                    (i) Whether, and to what extent, particular 
                personnel of such covered agency should be held 
                accountable (whether by disciplinary action, promotion, 
                recognition, or other reward, or other action) for an 
action, omission, or failure of duty with respect to the terrorist 
attacks of September 11, 2001.
                    (ii) Whether, and to what extent, particular 
                personnel of such covered agency have been, or should 
                be, held accountable for such action, omission, or 
                failure of duty.
    (2) The Inspector General of each covered agency shall submit to 
the head of such covered agency a report on the activities undertaken 
by such Inspector General under paragraph (1). Each report shall 
include recommendations for such personnel actions, including 
disciplinary actions, promotions, recognitions, or other rewards, or 
other personnel actions, as such Inspector General considers 
appropriate.
    (3) The head of each covered agency shall take such personnel 
actions with respect to the personnel of such covered agency as the 
head of such covered agency considers appropriate in light of the 
report on such covered agency under paragraph (2).
    (4) The head of each covered agency shall submit to the President 
and the congressional intelligence committees a report on the personnel 
actions taken under paragraph (3), including a justification for such 
personnel actions.
    (e) Definitions.--In this section:
            (1) The term ``congressional intelligence committees'' 
        means--
                    (A) the Select Committee on Intelligence of the 
                Senate; and
                    (B) the Permanent Select Committee on Intelligence 
                of the House of Representatives.
            (2) The term ``covered agency'' means the following:
                    (A) The Department of Defense.
                    (B) The Department of Justice.
                    (C) The Department of State.
                    (D) The Central Intelligence Agency.

SEC. 16. ELIMINATION OR REDUCTION IN BARRIERS TO COLLECTION AND SHARING 
              OF INTELLIGENCE FOR COUNTERTERRORISM PURPOSES.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Director of National Intelligence shall 
submit to the congressional intelligence committees a report that--
            (1) describes current barriers to the collection and 
        sharing of intelligence by and within the elements of the 
        intelligence community for counterterrorism purposes;
            (2) describes recent efforts within the intelligence 
        community to eliminate or reduce such barriers; and
            (3) sets forth such recommendations as the Director 
        considers appropriate for additional actions to eliminate or 
        reduce such barriers, including recommendations for legislative 
        or administrative action.
    (b) Barriers Arising From Perceptions of Law and Policy.--In 
considering current barriers to the collection and sharing of 
intelligence for purposes of subsection (a), the Director shall take 
into account barriers that arise from inaccurate perceptions among the 
personnel of the intelligence community of the restrictions on the 
collection and sharing of intelligence under law, Executive orders, and 
applicable guidelines.
    (c) Congressional Intelligence Committees Defined.--In this 
section, the term ``congressional intelligence committees'' means--
            (1) the Select Committee on Intelligence of the Senate; and
            (2) the Permanent Select Committee on Intelligence of the 
        House of Representatives.

SEC. 17. NATIONAL TERRORIST WATCHLIST CENTER.

    (a) Establishment.--The Director of National Intelligence shall 
establish the National Terrorist Watchlist Center.
    (b) Responsibilities.--The responsibilities of the Center shall be 
as follows:
            (1) To coordinate and integrate all terrorist watchlist 
        systems.
            (2) To ensure the timely and efficient assembly and 
        dispersal to terrorist watchlist systems of individuals and 
        groups identified for inclusion in terrorist watchlist systems.
            (3) To promote awareness and use of the Center by 
        appropriate elements of the Federal Government, State and local 
        governments, and the private sector.
    (c) Resources.--The Director shall provide the Center with such 
personnel and other resources as are required for the discharge of the 
responsibilities of the Center under subsection (b).

SEC. 18. ENHANCEMENT OF EFFORTS TO IDENTIFY SUPPORT OR INVOLVEMENT OF 
              FOREIGN GOVERNMENTS IN TERRORIST ACTIVITIES.

    (a) In General.--The Director of National Intelligence shall, in 
consultation with the Director of Central Intelligence and the Director 
of the Federal Bureau of Investigation, take appropriate actions to 
enhance the efforts of the intelligence community to identify the 
support or involvement of foreign governments in terrorist activities, 
including the analysis of the activities of foreign governments on a 
nation-by-nation basis rather than on a geographical or case-by-case 
basis.
    (b) Consideration of Results of Joint Inquiry.--In taking actions 
under subsection (a), the Director of National Intelligence shall take 
into account applicable findings of the Joint Inquiry of the Select 
Committee on Intelligence of the Senate and the Permanent Select 
Committee on Intelligence of the House of Representatives regarding the 
terrorist attacks of September 11, 2001.
    (c) Information on Actions.--The Director of National Intelligence 
shall keep the congressional intelligence committees fully informed of 
the actions taken under subsection (a), including the results of such 
actions.
    (d) Congressional Intelligence Committees Defined.--In this 
section, the term ``congressional intelligence committees'' means--
            (1) the Select Committee on Intelligence of the Senate; and
            (2) the Permanent Select Committee on Intelligence of the 
        House of Representatives.
                                 <all>