[Congressional Record Volume 150, Number 126 (Thursday, October 7, 2004)]
[House]
[Pages H8726-H8851]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                9/11 RECOMMENDATIONS IMPLEMENTATION ACT

  The SPEAKER pro tempore. Pursuant to House Resolution 827 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the further consideration of the bill, 
H.R. 10.

                              {time}  2145


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the further consideration of 
the bill (H.R. 10) to provide for reform of the intelligence community, 
terrorism prevention and prosecution, border security, and 
international cooperation and coordination, and for other purposes, 
with Mr. Nethercutt (Chairman pro tempore) in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN pro tempore. When the Committee of the Whole rose 
earlier today, all time for general debate had expired.
  In lieu of the amendments printed in the bill, it shall be in order 
to consider as an original bill for the purpose of amendment under the 
5-minute rule an amendment in the nature of a substitute consisting of 
the text of the Rules Committee print dated October 4, 2004. That 
amendment shall be considered read.
  The text of the amendment in the nature of a substitute is as 
follows:
       Strike all after the enacting clause and insert the 
     following:

     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.
Sec. 1017. Information sharing.

   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.
Sec. 1063. Service and National Laboratories and the intelligence 
              community.
Sec. 1064. Improvement in translation and delivery of suspected 
              terrorist communications.

              Subtitle G--Conforming and Other Amendments

Sec. 1071. Conforming amendments relating to roles of National 
              Intelligence Director and Director of the Central 
              Intelligence Agency.

[[Page H8727]]

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--Other Matters

Sec. 1101. Study of promotion and professional military education 
              school selection rates for military intelligence 
              officers.

             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 
                          Terrorist Financing


 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. Effective date.


               Subchapter 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 
              laundering programs.

             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.
Sec. 2146. Clarification of purpose.

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. 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. 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.

[[Page H8728]]

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.

         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. Coordination of industry efforts.
Sec. 5005. Superseded provision.
Sec. 5006. Sense of Congress regarding interoperable communications.
Sec. 5007. Sense of Congress regarding citizen corps councils.
Sec. 5008. Study regarding nationwide emergency notification system.
Sec. 5009. 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.
Sec. 5028. Assistant Secretary for Cybersecurity.

            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--Reporting Requirement

Sec. 5061. Reporting requirement.

              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. 5082. Treasury support for financial services industry 
              preparedness and response.

                     Chapter 2--Market Preparedness

Sec. 5084. Short title.

[[Page H8729]]

Sec. 5085. Extension of emergency order authority of the Securities and 
              Exchange Commission.
Sec. 5086. Parallel authority of the Secretary of the Treasury with 
              respect to government securities.
Sec. 5087. Joint report on implementation of financial system 
              resilience recommendations.
Sec. 5088. Private sector preparedness.
Sec. 5089. 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

[[Page H8730]]

     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.
       ``(7) Nothing in this title 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.

[[Page H8731]]

       ``(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 Associate National Intelligence Director for 
     Science and Technology.
       ``(I) The National Intelligence Council.
       ``(J) The General Counsel to the National Intelligence 
     Director.
       ``(K) 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.

[[Page H8732]]

       ``(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) Associate National Intelligence Director for Science 
     and Technology.--(1) There is an Associate National 
     Intelligence Director for Science and Technology who shall be 
     appointed by the National Intelligence Director.
       ``(2) The Associate National Intelligence Director for 
     Science and Technology shall--
       ``(A) advise the National Intelligence Director regarding 
     research and development efforts and priorities in support of 
     the intelligence mission, to ensure that the science and 
     technology needs of the National Intelligence Program will be 
     met;
       ``(B) develop in consultation with appropriate agencies and 
     the Associate National Intelligence Directors for Military 
     Support, Domestic Security, and Diplomatic Affairs a 
     strategic plan to support United States leadership in science 
     and technology to facilitate intelligence missions; and
       ``(C) perform such other duties and exercise such powers as 
     the National Intelligence Director may prescribe.
       ``(j) 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.
       ``(k) National Intelligence Council.--(1) 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, report to, and serve at the 
     pleasure of, the National Intelligence Director.
       ``(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, including 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 National Intelligence Director 
     in carrying out the responsibilities of the Director.
       ``(4) Within their respective areas of expertise and under 
     the direction of the National Intelligence Director, 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 National 
     Intelligence Director, the National Intelligence 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 National Intelligence Director 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 subsection.
       ``(7)(A) The National Intelligence Director shall take 
     appropriate measures to ensure that the National Intelligence 
     Council and its staff satisfy the needs of policymaking 
     officials and other consumers of intelligence.
       ``(B) The Council shall be readily accessible to 
     policymaking officials and other appropriate individuals not 
     otherwise associated with the intelligence community.
       ``(8) 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.
       ``(l) 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.
       ``(m) 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) consult with the National Intelligence Director who 
     shall provide guidance to the heads of the department 
     containing elements of the intelligence community and heads 
     of the elements of the intelligence community as appropriate;
       ``(B) assist the Deputy National Intelligence Director for 
     Community Management and Resources in developing and 
     implementing the Information Sharing Environment (ISE) 
     established under section 1017 of the 9/11 Recommendations 
     Implementation Act;
       ``(C) develop an enterprise architecture for the 
     intelligence community and assist the National Intelligence 
     Director through the Deputy National Intelligence Director 
     for Community Management and Resources in ensuring that 
     elements of the intelligence community comply with such 
     architecture;

[[Page H8733]]

       ``(D) have procurement approval authority over all 
     enterprise architecture-related information technology items 
     funded in the National Intelligence Program;
       ``(E) 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;
       ``(F) 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;
       ``(G) 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;
       ``(H) ensure that within and between the elements of the 
     National Intelligence Program, duplicative and unnecessary 
     information technology and national security systems are 
     eliminated; and
       ``(I) 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
       ``(J) 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.
       ``(n) Counterintelligence Officer to the National 
     Intelligence Director.--(1) There is a Counterintelligence 
     Officer to the National Intelligence Director who shall be 
     appointed by the National Intelligence Director.
       ``(2) The mission of the Counterintelligence Officer to the 
     National Intelligence Director is to assist the National 
     Intelligence Director in reducing the threats of disclosure 
     or loss of classified or sensitive information or penetration 
     of national intelligence functions that may be potentiated by 
     increased information sharing, enterprise architectures, or 
     other activities under this Act.
       ``(3) The Counterintelligence Officer to the National 
     Intelligence Director shall--
       ``(A) assist the Deputy National Intelligence Director for 
     Community Management and Resources in developing and 
     implementing counterintelligence policies for the functions 
     of the Office of the National Intelligence Director, in 
     consultation with the Associate National Intelligence 
     Directors;
       ``(B) ensure that policies under subparagraph (A) and the 
     implementation of those policies are coordinated with 
     counterintelligence activities of appropriate agencies and 
     elements of the National Intelligence Program, and with the 
     activities of the Intelligence Community Information Officer;
       ``(C) review resource requirements to support the mission 
     of the Counterintelligence Officer under this subsection and 
     make recommendations to the Deputy National Intelligence 
     Director for Community Management and Resources with respect 
     to those requirements; and
       ``(D) perform such other duties as the National 
     Intelligence Director shall prescribe.


                     ``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 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

[[Page H8734]]

     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). In the 
     case in which the National Intelligence Director does not 
     concur in such a recommendation, the Director and the head of 
     the department or agency concerned may advise the President 
     directly of the intention to withhold concurrence or to make 
     a recommendation, 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 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 
     initial National Intelligence Director.
       (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.

     SEC. 1017. INFORMATION SHARING.

       (a) Findings.--Congress makes the following findings:
       (1) The effective use of information, from all available 
     sources, is essential to the fight against terror and the 
     protection of our homeland.
       (2) The United States Government has access to a vast 
     amount of information, including not only traditional 
     intelligence but also other government databases, such as 
     those containing customs or immigration information.
       (3) In the period preceding September 11, 2001, there were 
     instances of potentially helpful information that was 
     available but that no person knew to ask for; information 
     that was distributed only in compartmented channels, and 
     information that was requested but could not be shared.
       (4) The current system, in which each intelligence agency 
     has its own security practices, requires a demonstrated 
     ``need to know'' before sharing.
       (5) The National Intelligence Director should pursue 
     setting an executable government-wide security mode policy of 
     ``right-to-share,'' one based on a proven blend of both 
     integrity and access control models and supported by 
     applicable law. No single agency can create a meaningful 
     government-wide information sharing system on its own.
       (b) Establishment of Information Sharing Environment.--The 
     President shall establish a secure information sharing 
     environment (ISE) for the sharing of intelligence and related 
     information in a manner consistent with national security and 
     the protection of privacy and civil liberties. The 
     information sharing environment (ISE) shall be based on 
     clearly defined and consistently applied policies and 
     procedures, and valid investigative, analytical, and 
     operational requirements.

   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 
     terrorists and 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 assign roles and missions responsibilities as part 
     of the its strategic operational planning duties to lead 
     Departments or agencies, as appropriate, for counterterrorism 
     activities that are consistent with applicable law and that 
     support counterterrorism strategic plans, but shall not 
     direct the execution of any resulting operations.
       ``(4) To ensure that agencies, as appropriate, have access 
     to and receive all-source

[[Page H8735]]

     intelligence support needed to execute their counterterrorism 
     plans or perform independent, alternative analysis.
       ``(5) To ensure that such agencies have access to and 
     receive intelligence needed to accomplish their assigned 
     activities.
       ``(6) To serve as the central and shared knowledge bank on 
     known and suspected terrorists and international terror 
     groups, as well as their goals, strategies, capabilities, and 
     networks of contacts and support.
       ``(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.--(1) 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:

[[Page H8736]]

       ``(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).

[[Page H8737]]

     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.

[[Page H8738]]

                             ``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

[[Page H8739]]

     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.''.

     SEC. 1063. SERVICE AND NATIONAL LABORATORIES AND THE 
                   INTELLIGENCE COMMUNITY.

       The National Intelligence Director, in cooperation with the 
     Secretary of Defense and the Secretary of Energy, should seek 
     to ensure that each service laboratory of the Department of 
     Defense and each national laboratory of the Department of 
     Energy may, acting through the relevant Secretary and in a 
     manner consistent with the missions and commitments of the 
     laboratory--
       (1) assist the National Intelligence Director in all 
     aspects of technical intelligence, including research, 
     applied sciences, analysis, technology evaluation and 
     assessment, and any other aspect that the relevant Secretary 
     considers appropriate; and
       (2) make available to the intelligence community, on a 
     community-wide basis--
       (A) the analysis and production services of the service and 
     national laboratories, in a manner that maximizes the 
     capacity and services of such laboratories; and
       (B) the facilities and human resources of the service and 
     national laboratories, in a manner that improves the 
     technological capabilities of the intelligence community.

     SEC. 1064. IMPROVEMENT IN TRANSLATION AND DELIVERY OF 
                   SUSPECTED TERRORIST COMMUNICATIONS.

       (a) Requirement for Prompt Translation and Transmission.--
     The National Intelligence Director shall develop and transmit 
     to the appropriate agencies guidelines to ensure that all 
     suspected terrorist communications, including transmissions, 
     are translated and delivered in a manner consistent with 
     timelines contained in regulations of the Federal Bureau of 
     Investigations to the extent practicable.
       (b) Prevention of Deletion of Terrorist Communications.--
     The National Intelligence Director shall take such steps as 
     are necessary to ensure that terrorist communications are not 
     deleted or discarded before those communications are 
     translated.

              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)).
       (R) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
       (S) Section 115(b) (50 U.S.C. 404j(b)).
       (T) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).
       (U) Section 116(a) (50 U.S.C. 404k(a)).
       (V) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
       (W) Section 303(a) (50 U.S.C. 405(a)), both places it 
     appears.
       (X) Section 501(d) (50 U.S.C. 413(d)).
       (Y) Section 502(a) (50 U.S.C. 413a(a)).
       (Z) Section 502(c) (50 U.S.C. 413a(c)).
       (AA) Section 503(b) (50 U.S.C. 413b(b)).
       (BB) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
       (CC) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
       (DD) Section 506A(a)(1) (50 U.S.C. 415a-1(a)(1)).
       (EE) Section 603(a) (50 U.S.C. 423(a)).
       (FF) Section 702(a)(1) (50 U.S.C. 432(a)(1)).
       (GG) Section 702(a)(6)(B)(viii) (50 U.S.C. 
     432(a)(6)(B)(viii)).
       (HH) Section 702(b)(1) (50 U.S.C. 432(b)(1)), both places 
     it appears.
       (II) Section 703(a)(1) (50 U.S.C. 432a(a)(1)).
       (JJ) Section 703(a)(6)(B)(viii) (50 U.S.C. 
     432a(a)(6)(B)(viii)).
       (KK) Section 703(b)(1) (50 U.S.C. 432a(b)(1)), both places 
     it appears.
       (LL) Section 704(a)(1) (50 U.S.C. 432b(a)(1)).
       (MM) Section 704(f)(2)(H) (50 U.S.C. 432b(f)(2)(H)).
       (NN) Section 704(g)(1)) (50 U.S.C. 432b(g)(1)), both places 
     it appears.
       (OO) Section 1001(a) (50 U.S.C. 441g(a)).
       (PP) Section 1102(a)(1) (50 U.S.C. 442a(a)(1)).
       (QQ) Section 1102(b)(1) (50 U.S.C. 442a(b)(1)).
       (RR) Section 1102(c)(1) (50 U.S.C. 442a(c)(1)).
       (SS) 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)).
       (C) Section 1001(c) (50 U.S.C. 441g(c)), the first place it 
     appears.
       (D) Section 1001(d)(1)(B) (50 U.S.C. 441g(d)(1)(B)).
       (E) 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).
       (A) Section 16(c)(1)(B) (50 U.S.C. 403p(c)(1)(B)).
       (B) Section 17(d)(1) (50 U.S.C. 403q(d)(1)).
       (C) 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''.

[[Page H8740]]

       (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''.

[[Page H8741]]

     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).

                       Subtitle I--Other Matters

     SEC. 1101. STUDY OF PROMOTION AND PROFESSIONAL MILITARY 
                   EDUCATION SCHOOL SELECTION RATES FOR MILITARY 
                   INTELLIGENCE OFFICERS.

       (a) Study.--The Secretary of Defense shall conduct a study 
     of the promotion selection rates, and the selection rates for 
     attendance at professional military education schools, of 
     intelligence officers of the Armed Forces, particularly in 
     comparison to the rates for other officers of the same Armed 
     Force who are in the same grade and competitive category.
       (b) Report.--The Secretary shall submit to the Committees 
     on Armed Services of the Senate and House of Representatives 
     a report providing the Secretary's findings resulting from 
     the study under subsection (a) and the Secretary's 
     recommendations (if any) for such changes in law as the 
     Secretary considers needed to ensure that intelligence 
     officers, as a group, are selected for promotion, and for 
     attendance at professional military education schools, at 
     rates not less than the rates for all line (or the 
     equivalent) officers of the same Armed Force (both in the 
     zone and below the zone) in the same grade. The report shall 
     be submitted not later than April 1, 2005.

             TITLE II--TERRORISM PREVENTION AND PROSECUTION

     Subtitle A--Individual Terrorists as Agents of Foreign Powers

     SEC. 2001. INDIVIDUAL TERRORISTS AS AGENTS OF FOREIGN POWERS.

       (a) In General.--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''.
       (b) Sunset.--The amendment made by subsection (a) shall be 
     subject to the sunset provision in section 224 of 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;

[[Page H8742]]

       ``(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

[[Page H8743]]

     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:


[[Page H8744]]


``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)''.

          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:

$15,000,000............................................................
$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''.

[[Page H8745]]

       (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--

[[Page H8746]]

       ``(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 the date such 
     person ceases to be an officer or employee (including any 
     special Government employee) of the Federal banking agency or 
     Federal reserve bank.
       ``(2) Violators subject to industry-wide prohibition 
     orders.--
       ``(A) In general.--In addition to any other penalty which 
     may apply, whenever a Federal banking agency determines that 
     a person subject to paragraph (1) has violated the 
     prohibition in such paragraph by becoming associated with any 
     insured depository institution, depository institution 
     holding company, or other company for which such agency 
     serves as the appropriate Federal banking agency, 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 or orders 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) for a period of 5 years; and
       ``(ii) prohibit any further participation by such person, 
     in any manner, in the conduct of the affairs of any insured 
     depository institution, depository institution holding 
     company, or other company that controls an insured depository 
     institution 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) shall apply with respect to such 
     order.
       ``(3) Regulations.--
       ``(A) In general.--The Federal banking agencies shall 
     prescribe regulations to implement this subsection, to 
     determine 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 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 not be 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, depository institution holding company, or other 
     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 the 
     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, 
     depository holding company, or other company only if such 
     person directly works on matters for, or on behalf of, such 
     depository institution, depository holding company, or other 
     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 (1)(B), as 
     implemented by regulations prescribed under 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.

             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''.

[[Page H8747]]

     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 180-day 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

[[Page H8748]]

     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.

     SEC. 2146. CLARIFICATION OF PURPOSE.

       The clearinghouse described in section 2145 shall only 
     process criminal history record requests pertaining to 
     employees or prospective employees of the private security 
     guard service making the request pursuant to that section.

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) 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.

[[Page H8749]]

       ``(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

[[Page H8750]]

     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)(1) of such title is amended by striking ``Secretary 
     of Transportation'' and inserting ``Secretary 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)(1) 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),'';
       (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 or''; 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) 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 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. DEFINITIONS.

       In this title, the following definitions apply:

[[Page H8751]]

       (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 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

[[Page H8752]]

     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.
       (g) 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.
       (h) 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. 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;

[[Page H8753]]

       ``(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 or documents may not be designated under 
     paragraph (4) unless the Secretary of Homeland Security 
     determines that the document or documents adequately 
     identifies or identify the bearer as a citizen of the United 
     States. If a single document is designated, it must be a 
     document that may not be issued to an alien. In no event may 
     a combination of documents be accepted for this purpose 
     unless the Secretary of Homeland Security determines that at 
     least one of those documents could not be issued to an 
     alien.''.
       (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 6 months 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 or documents may 
     not be designated under paragraph (1)(A) unless the Secretary 
     of Homeland Security determines that the document or 
     documents adequately identifies or identify the bearer as a 
     citizen of the United States. If a single document is 
     designated, it must be a document that may not be issued to 
     an alien (as defined in section 101(a)(3) of the Immigration 
     and Nationality Act (8 U.S.C. 1101(a)(3))). In no event may a 
     combination of documents be accepted for this purpose unless 
     the Secretary of Homeland Security determines that at least 
     one of those documents could not be issued to an alien (as so 
     defined).
       (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)), a 
     domestically issued document that the Secretary of Homeland 
     Security designates as reliable for this purpose and that 
     cannot be issued to an alien unlawfully present in the United 
     States, or an unexpired, lawfully issued foreign passport as 
     determined by the Secretary of State. Subject to the 
     limitations and exceptions in the immigration laws (as so 
     defined), no other document may be presented for such 
     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:

[[Page H8754]]

       ``(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 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.--
       ``(i) In general.--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).
       ``(ii) Special rule.--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 if the applicant claims 
     that the applicant has been or would be subjected to 
     persecution because the applicant--

       ``(I) has been accused of being or is believed to be a 
     member of, or has been accused of supporting, a guerrilla, 
     militant, or terrorist organization; or
       ``(II) has been accused of engaging in or supporting 
     guerrilla, militant, or terrorist activities, or is believed 
     to have engaged in or supported such activities.

       ``(iii) Sustaining burden.--The testimony of the applicant 
     may be sufficient to sustain the applicant's 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. It is reasonable to expect the applicant to provide 
     corroborating evidence if the applicant has, or has access 
     to, the evidence or could reasonably obtain the evidence 
     without departing from the United States.
       ``(iv) Credibility determination.--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 the 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 the 
     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 judicial review (including review pursuant to section 2241 
     of title 28, United States Code, or any other habeas corpus 
     provision, and sections 1361 and 1651 of such title) of a 
     revocation under this subsection, and no court 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 such title'' 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 such title, 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 such title, 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 such title, 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 such title, 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 such title'' after 
     ``notwithstanding any other provision of law''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect upon the date of the 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 the 
     enactment of this Act.
       (c) Transfer of Cases.--If an alien's case, brought under 
     section 2241 of title 28, United States Code, and challenging 
     a final administrative removal order, is pending in a 
     district court on the date of the enactment of this Act, then 
     the district court shall transfer the case (or part of the 
     case that challenges the removal order) to the court of 
     appeals for the circuit in which a petition for review could 
     have been properly filed under section 242 of the Immigration 
     and Nationality Act (8 U.S.C. 1252), as amended by this Act. 
     The court of appeals shall treat the transferred case as if 
     it had been brought pursuant to a petition for review under 
     such section 242.

[[Page H8755]]

    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 clause (iii), by striking ``or'';
       (2) in clause (iv), by striking the period at the end and 
     inserting ``; or'';
       (3) by inserting after clause (iv) the 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 section 212(a)(3)(B)(i)(IV), 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
       (4) 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 the 
     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 digital 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.

[[Page H8756]]

       (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) Special requirements.--
       (A) In general.--To meet the requirements of this section, 
     a State shall comply with the minimum standards of this 
     paragraph.
       (B) Evidence of legal status.--A State shall require, 
     before issuing a driver's license or identification card to a 
     person, valid documentary evidence that the person--
       (i) is a citizen of the United States;
       (ii) is an alien lawfully admitted for permanent or 
     temporary residence in the United States;
       (iii) has conditional permanent resident status in the 
     United States;
       (iv) has a valid, unexpired nonimmigrant visa or 
     nonimmigrant visa status for entry into the United States;
       (v) has a pending or approved application for asylum in the 
     United States;
       (vi) has entered into the United States in refugee status;
       (vii) has a pending or approved application for temporary 
     protected status in the United States;
       (viii) has approved deferred action status; or
       (ix) has a pending application for adjustment of status to 
     that of an alien lawfully admitted for permanent residence in 
     the United States or conditional permanent resident status in 
     the United States.
       (C) Temporary drivers' licenses and identification cards.--
       (i) In general.--If a person presents evidence under any of 
     clauses (iv) through (ix) of subparagraph (B), the State may 
     only issue a temporary driver's license or temporary 
     identification card to the person.
       (ii) Expiration date.--A temporary driver's license or 
     temporary identification card issued pursuant to this 
     subparagraph shall be valid only during the period of time of 
     the applicant's authorized stay in the United States or if 
     there is no definite end to the period of authorized stay a 
     period of one year.
       (iii) Display of expiration date.--A temporary driver's 
     license or temporary identification card issued pursuant to 
     this subparagraph shall clearly indicate that it is temporary 
     and shall state the date on which it expires.
       (iv) Renewal.--A temporary driver's license or temporary 
     identification card issued pursuant to this subparagraph may 
     be renewed only upon presentation of valid documentary 
     evidence that the status by which the applicant qualified for 
     the temporary driver's license or temporary identification 
     card has been extended by the Secretary of Homeland Security.
       (3) Applications for renewal, duplication, or reissuance.--
       (A) Presumption.--For purposes of paragraphs (1) and (2), a 
     State shall presume that any driver's license or 
     identification card for which an application has been made 
     for renewal, duplication, or reissuance has been issued in 
     accordance with the provisions of such paragraphs if, at the 
     time the application is made, the driver's license or 
     identification card has not expired or been canceled, 
     suspended, or revoked.
       (B) Limitation.--Subparagraph (A) shall not apply to a 
     renewal, duplication, or reissuance if the State is notified 
     by a local, State, or Federal government agency that the 
     person seeking such renewal, duplication, or reissuance is 
     neither a citizen of the United States nor legally in the 
     United States.
       (4) 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) or (2).
       (B) The State shall not accept any foreign document, other 
     than an official passport, to satisfy a requirement of 
     paragraph (1) or (2).
       (C) Not later than September 11, 2005, the State shall 
     enter into a memorandum of understanding with the Secretary 
     of Homeland Security to routinely utilize the automated 
     system known as Systematic Alien Verification for 
     Entitlements, as provided for by section 404 of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (110 Stat. 3009-664), to verify the legal presence status of 
     a person, other than a United States citizen, applying for a 
     driver's license or identification card.
       (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 the 
     enactment of this Act, a Federal agency may not accept, for 
     any official purpose, a birth certificate issued by a State

[[Page H8757]]

     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 the 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 the 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 the 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 the 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 the 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.''.

[[Page H8758]]

       (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 ``at least 
     15 and 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;

[[Page H8759]]

       (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

[[Page H8760]]

       (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) Finding.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, the 
     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 of Homeland Security 
     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 of 
     Homeland Security shall integrate the biometric entry and 
     exit data system with all databases and data systems 
     maintained by U.S. 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 of Homeland Security, 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, the 
     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.--For purposes of this section, 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 
     of Homeland Security 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 of Homeland Security 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 of Homeland Security 
     shall submit to the Congress a report describing the 
     Department of Homeland Security's progress on the development 
     and implementation of the plan required by this subsection.
       (f) Integrated Biometric Entry-Exit Screening System.--With 
     respect to the biometric entry and exit data system referred 
     to in subsections (a) and (b), such system shall accomplish 
     the following:
       (1) Ensure that the system's tracking capabilities 
     encompass data related to all immigration benefits 
     processing, including visa applications with the Department 
     of State,

[[Page H8761]]

     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 
     and exit data system to track all immigration related matters 
     concerning the applicant.
       (3) Provide that all information about an applicant's 
     immigration related history, including entry and 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 information described 
     in paragraph (3), including pertinent data from all agencies 
     referenced in paragraph (1).
       (5) Limit access to the information described in paragraph 
     (4) (and any other database used for tracking immigration 
     related processing or entry and exit) to personnel explicitly 
     authorized to do so, and ensure 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.
       (g) Entry-Exit System Goals.--The Department of Homeland 
     Security shall continue to implement the system described in 
     subsections (a) and (b) in such a manner 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.
       (h) Dedicated Specialists and Front Line Personnel 
     Training.--In implementing the provisions of subsections (f) 
     and (g), 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 and exit data system;
       (2) provide extensive community outreach and education on 
     the entry and exit data system's 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.
       (i) Information Accuracy Standards.--
       (1) Authorized officers.--Any information placed in the 
     entry and exit data system shall be entered by authorized 
     officers in compliance with established procedures that 
     guarantee the identification of the person placing the 
     information.
       (2) Data collected from foreign nationals.--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.
       (j) 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.
       (k) System Adaptability.--
       (1) In general.-- Each agency authorized to enter data 
     related to the immigration status of any persons identified 
     in subsection (f) 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) Centralizing and streamlining correction process.--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.
       (l) Training.--Agency personnel authorized to enter data 
     pursuant to subsection (i)(1) shall undergo extensive 
     training in immigration law and procedure.
       (m) Implementation Audit.--The Secretary of the Department 
     of Homeland Security shall submit a report to the Congress 
     not later than 6 months after the date of the enactment of 
     this Act. The report shall detail activities undertaken to 
     date to develop the biometric entry and exit data system, 
     areas in which the system currently does not achieve the 
     mandates set forth in 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.
       (n) Reports.--
       (1) Joint biannual reports.--The Secretaries of the 
     Departments of State and Homeland Security jointly shall 
     report biannually to the Congress on the following:
       (A) Current infrastructure and staffing at each port of 
     entry and each consular post.
       (B) The numbers of immigrant and nonimmigrant visas issued.
       (C) the numbers of individuals subject to expedited removal 
     at the ports of entry, as well as within 100 miles of the 
     United States border.
       (D) The plan for enhanced database review at entry.
       (E) The number of suspected terrorists and criminals 
     intercepted utilizing the biometric entry and exit data 
     system.
       (F) The funds spent in the preceding fiscal year to achieve 
     the mandates of this section.
       (G) Areas in which they failed to achieve these mandates, 
     and the steps they are taking to address these deficiencies.
       (2) Ports of entry.--For ports of entry, similar 
     information shall be provided including the number of I-94s 
     issued, immigrant visa admissions made, and nonimmigrant 
     admissions.
       (3) Status report on compliance with enhanced border 
     security and visa entry reform act.--Not later than 120 days 
     after the date of the 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:
       (A) The status of agency compliance with the mandates set 
     forth in section 202 of the Enhanced Border Security and Visa 
     Entry Reform Act (8 U.S.C. 1722).
       (B) The status of agency compliance with section 201(c)(3) 
     of such Act (8 U.S.C. 1721(c)(3)).
       (4) Status report on compliance with section.--Not later 
     than 1 year after the date of the 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 section, shall issue 
     both individual status reports and a joint status report 
     detailing compliance with each mandate contained in this 
     section.
       (o) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security, 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

[[Page H8762]]

     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 and the Secretary of Homeland Security on 
     recommended 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, in consultation with 
     the Director of the National Counterterrorism Center, 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

[[Page H8763]]

       (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

[[Page H8764]]

     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).

         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.

[[Page H8765]]

     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 
     Organization 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 Organization 
     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 Organization 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 Organization 
     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 policy-making and 
     standard-setting body dedicated to combating money laundering 
     and terrorist financing that was created by the Group of 
     Seven (G-7) in 1989.

              CHAPTER 3--OTHER PUBLIC DIPLOMACY 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

[[Page H8766]]

     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 
     (Pub. L. 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

[[Page H8767]]

     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) are 
     sufficiently different from the circumstances that were the 
     basis for the designation such that a revocation with respect 
     to the organization is warranted.
       ``(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'';

[[Page H8768]]

       (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

[[Page H8769]]

     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.--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. 
     The first report under this paragraph shall be submitted not 
     later than January 15, 2005, and subsequent reports shall be 
     submitted every six months thereafter and may be included in 
     the report required by section 206(c)(2) of this Act.
       ``(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 subsection (c)(2).''.

     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 305 as sections 401 through 405, 
     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.

     ``SEC. 302. 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 the 9/11 Recommendations Implementation 
     Act.''.
       (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 305 as the 
     items relating to sections 401 through 405; 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. 302. Sense of Congress and report regarding counter-drug efforts 
              in Afghanistan.''.

     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

[[Page H8770]]

     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.
       (3) Form.--The strategy required by this subsection may 
     contain a classified annex.

     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. The 
     strategy required by this subsection may contain a classified 
     annex.

     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.

[[Page H8771]]

       (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

[[Page H8772]]

     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;

[[Page H8773]]

       ``(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.

[[Page H8774]]

       ``(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;

[[Page H8775]]

       ``(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

[[Page H8776]]

       ``(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) participation in information, investigative, and 
     intelligence sharing activities specifically related to 
     terrorism prevention;
       ``(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.

[[Page H8777]]

       ``(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.

[[Page H8778]]

       ``(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. 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. 5005. SUPERSEDED PROVISION.

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

     SEC. 5006. SENSE OF CONGRESS REGARDING INTEROPERABLE 
                   COMMUNICATIONS.

       (a) Finding.--The Congress finds that--
       (1) many emergency response providers (as defined under 
     section 2 of the Homeland Security Act of 2002 (6 U.S.C. 
     101), as amended by this Act) 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 emergency response provider community, and 
     that upgraded and new digital communications systems and new 
     digital radios must meet prevailing national, voluntary 
     consensus standards for interoperability.

     SEC. 5007. 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. 5008. 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. 5009. 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.--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.

[[Page H8779]]

       ``(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 Joint Terrorism Task Force 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 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 its 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;

[[Page H8780]]

       (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.

     SEC. 5028. ASSISTANT SECRETARY FOR CYBERSECURITY.

       (a) In General.--Subtitle A of title II of the Homeland 
     Security Act of 2002 (6 USC 121 et. seq.) is amended by 
     adding at the end the following:

     ``SEC. 203. ASSISTANT SECRETARY FOR CYBERSERCURITY.

       ``(a) In General.--There shall be in the Department an 
     Assistant Secretary for Cybersecurity, who shall be appointed 
     by the President.
       ``(b) Responsibilities.--The Assistant Secretary for 
     Cybersecurity shall assist the Under Secretary for 
     Information Analysis and Infrastructure Protection in 
     discharging the responsibilities of the Under Secretary under 
     this subtitle.
       ``(c) Authority Over the National Communications System.--
     The Assistant Secretary shall have primary authority within 
     the Department over the National Communications System.''.
       (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. Assistant Secretary for Cybersecurity.''.

            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 officers and employees who--
       ``(1) are employed in or under--
       ``(A) the Office of the National Intelligence Director; or
       ``(B) 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)); and
       ``(2) would (but for this subsection) otherwise be subject 
     to title I by virtue of paragraph (3) of section 101(f), 
     including--
       ``(A) any special Government employee and any member of a 
     uniformed service who is described in such paragraph; and
       ``(B) any officer or employee in any position with respect 
     to which the Director of the Office of Government Ethics 
     makes a determination described in such paragraph.
       ``(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

[[Page H8781]]

     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;
       ``(4) such individual is not reasonably expected to perform 
     the duties of his office or position for more than 60 days in 
     a calendar year; and
       ``(5) public financial disclosure by such individual is not 
     necessary in the circumstances.

     ``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 amount or 
     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 
     amount or 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, description, and category of amount or 
     value 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 or value of 
     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.
       ``(C) In an unusual case, a gift need not be aggregated 
     under subparagraph (A) if a publicly available request for a 
     waiver is granted.
       ``(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.
       ``(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, and 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).
     Reporting is not required under this paragraph of any 
     transaction solely by and between the reporting individual, 
     his spouse, or dependent children.
       ``(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.
       ``(C) Subparagraph (B) shall not require any individual to 
     include in such report any information--
       ``(i) with respect to a person for whom services were 
     provided by any firm or association of which such individual 
     was a member, partner, or employee, unless the individual was 
     directly involved in the provision of such services;
       ``(ii) that is protected by a court order or is under seal; 
     or
       ``(iii) that is considered confidential as a result of--
       ``(I) a privileged relationship established by a 
     confidentiality agreement entered into at the time the person 
     retained the services of the individual;
       ``(II) a grand jury proceeding or a nonpublic 
     investigation, if there are no public filings, statements, 
     appearances, or reports that identify the person for whom 
     such individual is providing services; or
       ``(III) an applicable rule of professional conduct that 
     prohibits disclosure of the information and that can be 
     enforced by a professional licensing body.
       ``(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 of that agreement.
       ``(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) In the case of any individual described in section 
     301(e), 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 $25,000;
       ``(C) greater than $25,000 but not more than $100,000;
       ``(D) greater than $100,000 but not more than $1,000,000;

[[Page H8782]]

       ``(E) greater than $1,000,000 but not more than $2,500,000; 
     and
       ``(F) 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) 
     are ones from which 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 trust or other 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 affiliated 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 affiliated 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

[[Page H8783]]

     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 widely-
     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).
       ``(C) Within 30 days of the dissolution of a qualified 
     blind trust, a reporting individual shall (i) notify the 
     Office of Government Ethics of such dissolution, and (ii) 
     file with such Office and his designated agency ethics 
     official a copy of a list of the assets of the trust at the 
     time of such dissolution and the category of value under 
     subsection (c) of each such asset.
       ``(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 $11,000.
       ``(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 $5,500.
       ``(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;paragraph;
       ``(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) A reporting individual described in subsection 
     (a), (b), or (c) of section 301 shall not be required to 
     report the assets or sources of income of any publicly 
     available investment fund if--
       ``(i) the identity of such assets and sources of income is 
     not provided to investors;
       ``(ii) the reporting individual neither exercises control 
     over nor has the ability to exercise control over the fund; 
     and
       ``(iii) the reporting individual--
       ``(I) does not otherwise have knowledge of the individual 
     assets of the fund and provides written certification by the 
     fund manager that individual assets of the fund are not 
     disclosed to investors; or
       ``(II) has executed a written ethics agreement that 
     contains a commitment to divest the interest in the 
     investment fund no later than 90 days after the date of the 
     agreement.
     The reporting individual shall file the written certification 
     by the fund manager as an attachment to the report filed 
     pursuant to section 301.
       ``(B) The provisions of subparagraph (A) shall apply to an 
     individual described in subsection (d) or (e) of section 301 
     if--
       ``(i) the interest in the trust or investment fund is 
     acquired, during the period to be covered by the report, 
     involuntarily (such as through inheritance) or as a legal 
     incident of marriage; and
       ``(ii) for an individual described in subsection (d), the 
     individual executes a written ethics agreement containing a 
     commitment to divest the interest no later than 90 days after 
     the date the report is due.
     Failure to divest within the time specified or within an 
     extension period granted by the supervising ethics office 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.).

     ``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 of members of the uniformed services 
     shall be filed with the Secretary concerned.

[[Page H8784]]

       ``(c) 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 $11,000, order the individual to 
     file or report any information required by section 302, or 
     both.
       ``(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 
     made available to the public (in the same manner as described 
     in section 105) and 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 report 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 an individual in a position in the executive branch, 
     appointment to which requires the advice and consent of the 
     Senate, the matter shall be referred to the President for 
     appropriate action.
       ``(5) 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.
       ``(6) 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.
       ``(7) 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

[[Page H8785]]

     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 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.

     ``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, not to exceed 4 years, 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.

[[Page H8786]]

       ``(c) Limitations on Authority.--A bonus paid under this 
     section--
       ``(1) shall not exceed 50 percent of the annual rate of 
     basic pay of the employee as of the beginning of the period 
     of service (established under subsection (b)) multiplied by 
     the number of years (including a fractional part of a year) 
     in the required period of service of the employee involved, 
     but shall in no event exceed 100 percent of the annual rate 
     of basic pay of the employee as of the beginning of the 
     service period; and
       ``(2) may not be paid to an individual who is appointed to 
     or who holds a position--
       ``(A) to which an individual is appointed by the President, 
     by and with the advice and consent of the Senate; or
       ``(B) in the Senior Executive Service as a noncareer 
     appointee (as defined in section 3132(a)).
       ``(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.
       ``(g) Limitation on Duration of Service.--An individual may 
     not be reemployed under this section for more than 180 days 
     in connection with any particular emergency unless, in the 
     judgment of the Director, the public interest so requires.''.
       (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--REPORTING REQUIREMENT

     SEC. 5061. REPORTING REQUIREMENT.

       The President shall, within 6 months after the date of 
     enactment of this Act, submit to Congress a report that--
       (1) evaluates the hiring policies of the Federal Government 
     with respect to its foreign language needs and the war on 
     terrorism, including an analysis of the personnel 
     requirements at the Federal Bureau of Investigation, the 
     Central Intelligence Agency, the Department of Homeland 
     Security, the Department of State, the Department of Defense, 
     and all other Federal agencies the President identifies as 
     having responsibilities in the war on terrorism;
       (2) describes with respect to each agency identified under 
     paragraph (1) the Federal Government's current workforce 
     capabilities with respect to its foreign language needs and 
     the war on terrorism;
       (3) summarizes for each agency identified under paragraph 
     (1) any shortfall in the Federal Government's workforce 
     capabilities relative to its foreign language needs with 
     respect to the war on terrorism; and
       (4) provides a specific plan to eliminate any shortfalls 
     identified under paragraph (3) and a cost estimate, by 
     agency, for eliminating those shortfalls.

              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 5075(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 and 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.

[[Page H8787]]

       (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.--(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 of 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.

[[Page H8788]]

              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. 5082. 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

     SEC. 5084. SHORT TITLE.

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

     SEC. 5085. 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. 5086. 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. 5087. 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.

[[Page H8789]]

     SEC. 5088. 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. 5089. 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

[[Page H8790]]

     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 any litigation management agreement entered into 
     pursuant to section 5103.
       (2) Jurisdiction of courts.--
       (A) In general.--Subject to subparagraph (B) and any 
     litigation management agreement entered into pursuant to 
     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.--

[[Page H8791]]

       (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 constitutional, statutory, or 
     common law immunities that any party may have.
       (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 any party to a litigation 
     management agreement that meets the definition of ``emergency 
     response providers'' under section 2 of the Homeland Security 
     Act of 2002 (6 U.S.C. 101), as amended by this Act, except 
     that the term does not include any Federal personnel, agency, 
     or authority.
       (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) Terrorism.--The term ``terrorism'' means any activity 
     that meets the definition of ``terrorism'' under section 2 of 
     the Homeland Security Act of 2002 (6 U.S.C. 101), as amended 
     by this Act.
       (13) 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--

[[Page H8792]]

       (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 incorporating, where 
     possible, technologies that currently are commercially 
     available, 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), as amended by this Act.
       (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.

  The CHAIRMAN pro tempore. No amendment to the amendment in the nature 
of a substitute is in order except those printed in House Report 108-
751. Each amendment may be offered only in the order printed in the 
report, by a Member designated in the report, shall be considered read, 
shall be debatable for the time specified in the report, equally 
divided and controlled by the proponent and an opponent, shall not be 
subject to amendment, and shall not be subject to a demand for division 
of the question.
  The CHAIRMAN pro tempore (Mr. Nethercutt). It is now in order to 
consider Amendment No. 1 printed in House report 108-751.


 Amendment No. 1 in the Nature of a Substitute Offered by Mr. Menendez

  Mr. MENENDEZ. Mr. Chairman, I offer an amendment in the nature of a 
substitute.
  The CHAIRMAN pro tempore. The Clerk will designate the amendment in 
the nature of a substitute.
  The text of the amendment in the nature of a substitute is as 
follows:

       Amendment No. 1 in the nature of a substitute offered by 
     Mr. Menendez:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Intelligence Reform Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                TITLE I--NATIONAL INTELLIGENCE AUTHORITY

              Subtitle A--National Intelligence Authority

Sec. 101. National Intelligence Authority.
Sec. 102. National Intelligence Director.

 Subtitle B--Responsibilities and Authorities of National Intelligence 
                                Director

Sec. 111. Provision of national intelligence.
Sec. 112. Responsibilities of National Intelligence Director.
Sec. 113. Authorities of National Intelligence Director.
Sec. 114. Enhanced personnel management.
Sec. 115. Security clearances.
Sec. 116. National Intelligence Reserve Corps.
Sec. 117. Appointment and termination of certain officials responsible 
              for intelligence-related activities.
Sec. 118. Reserve for Contingencies of the National Intelligence 
              Director.

        Subtitle C--Office of the National Intelligence Director

Sec. 121. Office of the National Intelligence Director.
Sec. 122. Deputy national intelligence directors.
Sec. 123. National Intelligence Council.
Sec. 124. General Counsel of the National Intelligence Authority.
Sec. 125. Intelligence Comptroller.
Sec. 126. Officer for Civil Rights and Civil Liberties of the National 
              Intelligence Authority.
Sec. 127. Privacy Officer of the National Intelligence Authority.

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Sec. 128. Chief Information Officer of the National Intelligence 
              Authority.
Sec. 129. Chief Human Capital Officer of the National Intelligence 
              Authority.
Sec. 130. Chief Financial Officer of the National Intelligence 
              Authority.
Sec. 131. National Counterintelligence Executive.

   Subtitle D--Additional Elements of National Intelligence Authority

Sec. 141. Inspector General of the National Intelligence Authority.
Sec. 142. Ombudsman of the National Intelligence Authority.
Sec. 143. National Counterterrorism Center.
Sec. 144. National intelligence centers.

 Subtitle E--Education and Training of Intelligence Community Personnel

Sec. 151. Framework for cross-disciplinary education and training.
Sec. 152. Intelligence Community Scholarship Program.

 Subtitle F--Additional Authorities of National Intelligence Authority

Sec. 161. Use of appropriated funds.
Sec. 162. Acquisition and fiscal authorities.
Sec. 163. Personnel matters.
Sec. 164. Ethics matters.

        TITLE II--OTHER IMPROVEMENTS OF INTELLIGENCE ACTIVITIES

          Subtitle A--Improvements of Intelligence Activities

Sec. 201. Availability to public of certain intelligence funding 
              information.
Sec. 202. Merger of Homeland Security Council into National Security 
              Council.
Sec. 203. Joint Intelligence Community Council.
Sec. 204. Improvement of intelligence capabilities of the Federal 
              Bureau of Investigation.
Sec. 205. Federal Bureau of Investigation Intelligence Career Service.
Sec. 206. Information sharing.

                Subtitle B--Privacy and Civil Liberties

Sec. 211. Privacy and Civil Liberties Oversight Board.
Sec. 212. Privacy and civil liberties officers.

           Subtitle C--Independence of Intelligence Agencies

Sec. 221. Independence of National Intelligence Director.
Sec. 222. Independence of intelligence.
Sec. 223. Independence of National Counterterrorism Center.
Sec. 224. Access of congressional committees to national intelligence.
Sec. 225. Communications with Congress.

  TITLE III--MODIFICATIONS OF LAWS RELATING TO INTELLIGENCE COMMUNITY 
                               MANAGEMENT

              Subtitle A--Conforming and Other Amendments

Sec. 301. Restatement and modification of basic authority on the 
              Central Intelligence Agency.
Sec. 302. Conforming amendments relating to roles of National 
              Intelligence Director and Director of the Central 
              Intelligence Agency.
Sec. 303. Other conforming amendments
Sec. 304. Modifications of foreign intelligence and counterintelligence 
              under National Security Act of 1947.
Sec. 305. Elements of intelligence community under National Security 
              Act of 1947.
Sec. 306. Redesignation of National Foreign Intelligence Program as 
              National Intelligence Program.
Sec. 307. Conforming amendment on coordination of budgets of elements 
              of the intelligence community within the Department of 
              Defense.
Sec. 308. Repeal of superseded authorities.
Sec. 309. Clerical amendments to National Security Act of 1947.
Sec. 310. Modification of authorities relating to National 
              Counterintelligence Executive.
Sec. 311. Conforming amendment to Inspector General Act of 1978.
Sec. 312. Conforming amendment relating to Chief Financial Officer of 
              the National Intelligence Authority.

                 Subtitle B--Transfers and Terminations

Sec. 321. Transfer of Office of Deputy Director of Central Intelligence 
              for Community Management.
Sec. 322. Transfer of National Counterterrorism Executive.
Sec. 323. Transfer of Terrorist Threat Integration Center.
Sec. 324. Termination of certain positions within the Central 
              Intelligence Agency.

                  Subtitle C--Other Transition Matters

Sec. 331. Executive Schedule matters.
Sec. 332. Preservation of intelligence capabilities.
Sec. 333. Reorganization.
Sec. 334. National Intelligence Director report on implementation of 
              intelligence community reform.
Sec. 335. Comptroller General reports on implementation of intelligence 
              community reform.
Sec. 336. General references.

                       Subtitle D--Effective Date

Sec. 341. Effective date.

                       Subtitle E--Other Matters

Sec. 351. Severability.
Sec. 352. Authorization of appropriations.

                     TITLE IV--INFORMATION SHARING

Sec. 401. Information sharing.

                     TITLE V--CONGRESSIONAL REFORM

Sec. 501. Findings.
Sec. 502. Reorganization of congressional jurisdiction.

                   TITLE VI--PRESIDENTIAL TRANSITION

Sec. 601. Presidential transition. 

TITLE VII--THE ROLE OF DIPLOMACY, FOREIGN AID, AND THE MILITARY IN THE 
                            WAR ON TERRORISM

Sec. 701. Report on terrorist sanctuaries.
Sec. 702. Role of Pakistan in countering terrorism.
Sec. 703. Aid to Afghanistan.
Sec. 704. The United States-Saudi Arabia relationship.
Sec. 705. Efforts to combat Islamic terrorism by engaging in the 
              struggle of ideas in the Islamic world.
Sec. 706. United States policy toward dictatorships.
Sec. 707. Promotion of United States values through broadcast media.
Sec. 708. Use of United States scholarship and exchange programs in the 
              Islamic world.
Sec. 709. International Youth Opportunity Fund.
Sec. 710. Report on the use of economic policies to combat terrorism.
Sec. 711. Middle East Partnership Initiative.
Sec. 712. Comprehensive coalition strategy for fighting terrorism.
Sec. 713. Detention and humane treatment of captured terrorists. 
Sec. 714. Proliferation of weapons of mass destruction.
Sec. 715. Financing of terrorism.

          TITLE VIII--TERRORIST TRAVEL AND EFFECTIVE SCREENING

Sec. 801. Counterterrorist travel intelligence.
Sec. 802. Integrated screening system.
Sec. 803. Biometric entry and exit data system.
Sec. 804. Travel documents.
Sec. 805. Exchange of terrorist information.
Sec. 806. Minimum standards for identification-related documents.

                   TITLE IX--TRANSPORTATION SECURITY

Sec. 901. Definitions.
Sec. 902. National Strategy for Transportation Security.
Sec. 903. Use of watchlists for passenger air transportation screening.
Sec. 904. Enhanced passenger and cargo screening.

                     TITLE X--NATIONAL PREPAREDNESS

Sec. 1001. Homeland security assistance.
Sec. 1002. The incident command system.
Sec. 1003. National Capital Region Mutual Aid.
Sec. 1004. Assignment of spectrum for public safety.
Sec. 1005. Urban area communications capabilities.
Sec. 1006. Private sector preparedness.
Sec. 1007. Critical infrastructure and readiness assessments.
Sec. 1008. Report on Northern Command and defense of the United States 
              homeland.

                TITLE XI--PROTECTION OF CIVIL LIBERTIES

Sec. 1101. Privacy and Civil Liberties Oversight Board.
Sec. 1102. Privacy and Civil Liberties Officers.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) The term ``intelligence'' includes foreign intelligence 
     and counterintelligence.
       (2) The term ``foreign intelligence'' means information 
     relating to the capabilities, intentions, or activities of 
     foreign governments or elements thereof, foreign 
     organizations, foreign persons, or international terrorists.
       (3) The term ``counterintelligence'' means information 
     gathered, and activities conducted, to protect against 
     espionage, other intelligence activities, sabotage, or 
     assassinations conducted by or on behalf of foreign 
     governments or elements thereof, foreign organizations, 
     foreign persons, or international terrorists.
       (4) The term ``intelligence community'' includes the 
     following:
       (A) The National Intelligence Authority.
       (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 department or agency as may 
     be designated by the President, or designated jointly by the 
     National

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     Intelligence Director and the head of the department or 
     agency concerned, as an element of the intelligence 
     community.
       (5) The terms ``national intelligence'' and ``intelligence 
     related to the national security''--
       (A) each refer to intelligence which pertains to the 
     interests of more than one department or agency of the 
     Government; and
       (B) do not refer to counterintelligence or law enforcement 
     activities conducted by the Federal Bureau of Investigation 
     except to the extent provided for in procedures agreed to by 
     the National Intelligence Director and the Attorney General, 
     or otherwise as expressly provided for in this title.
       (6) The term ``National Intelligence Program''--
       (A)(i) refers to all national intelligence programs, 
     projects, and activities of the elements of the intelligence 
     community;
       (ii) includes all programs, projects, and activities 
     (whether or not pertaining to national intelligence) of the 
     National Intelligence Authority, the Central Intelligence 
     Agency, the National Security Agency, the National 
     Geospatial-Intelligence Agency, the National Reconnaissance 
     Office, the Office of Intelligence of the Federal Bureau of 
     Investigation, and the Office of Information Analysis of the 
     Department of Homeland Security; and
       (iii) includes any other program, project, or activity of a 
     department, agency, or element of the United States 
     Government relating to national intelligence unless the 
     National Intelligence Director and the head of the 
     department, agency, or element concerned determine otherwise; 
     but
       (B) except as provided in subparagraph (A)(ii), does not 
     refer to any program, project, or activity of the military 
     departments, including any program, project, or activity of 
     the Defense Intelligence Agency that is not part of the 
     National Foreign Intelligence Program as of the date of the 
     enactment of this Act, to acquire intelligence principally 
     for the planning and conduct of joint or tactical military 
     operations by the United States Armed Forces.
       (7) 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.

                TITLE I--NATIONAL INTELLIGENCE AUTHORITY

              Subtitle A--National Intelligence Authority

     SEC. 101. NATIONAL INTELLIGENCE AUTHORITY.

       (a) Independent Establishment.--There is hereby established 
     as an independent establishment in the executive branch of 
     government the National Intelligence Authority.
       (b) Composition.--The National Intelligence Authority is 
     composed of the following:
       (1) The Office of the National Intelligence Director.
       (2) The elements specified in subtitle D.
       (3) Such other elements, offices, agencies, and activities 
     as may be established by law or by the President or the 
     National Intelligence Director.
       (c) Primary Missions.--The primary missions of the National 
     Intelligence Authority are as follows:
       (1) To unify and strengthen the efforts of the intelligence 
     community of the United States Government.
       (2) To ensure the organization of the efforts of the 
     intelligence community of the United States Government in a 
     joint manner relating to intelligence missions rather than 
     through intelligence collection disciplines.
       (3) To provide for the operation of the National 
     Counterterrorism Center and national intelligence centers 
     under subtitle D.
       (4) To eliminate barriers that impede coordination of the 
     counterterrorism activities of the United States Government 
     between foreign intelligence activities located abroad and 
     foreign intelligence activities located domestically while 
     ensuring the protection of civil liberties.
       (5) To establish clear responsibility and accountability 
     for counterterrorism and other intelligence matters relating 
     to the national security of the United States.
       (d) Seal.--The National Intelligence Director shall have a 
     seal for the National Intelligence Authority. The design of 
     the seal is subject to the approval of the President. 
     Judicial notice shall be taken of the seal.

     SEC. 102. NATIONAL INTELLIGENCE DIRECTOR.

       (a) National Intelligence Director.--There is a National 
     Intelligence Director who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       (b) Individuals Eligible for Nomination.--Any individual 
     nominated for appointment as National Intelligence Director 
     shall have extensive national security expertise.
       (c) Prohibition on Simultaneous Service in Other Capacity 
     in Intelligence Community.--The individual serving as 
     National Intelligence Director may not, while so serving, 
     serve in any capacity in any other element of the 
     intelligence community, except to the extent that the 
     individual serving as National Intelligence Director does so 
     in an acting capacity.
       (d) Principal Duties and Responsibilities.--The National 
     Intelligence Director shall--
       (1) serve as head of the intelligence community in 
     accordance with the provisions of this Act, the National 
     Security Act of 1947 (50 U.S.C. 401 et seq.), and other 
     applicable provisions of law;
       (2) act as a principal adviser to the President for 
     intelligence related to the national security;
       (3) serve as the head of the National Intelligence 
     Authority; and
       (4) direct and oversee the National Intelligence Program.
       (e) General Responsibilities and Authorities.--In carrying 
     out the duties and responsibilities set forth in subsection 
     (c), the National Intelligence Director shall have the 
     responsibilities set forth in section 112 and the authorities 
     set forth in section 113 and other applicable provisions of 
     law.

 Subtitle B--Responsibilities and Authorities of National Intelligence 
                                Director

     SEC. 111. PROVISION OF NATIONAL INTELLIGENCE.

       (a) In General.--The National Intelligence Director shall 
     be responsible for providing national intelligence--
       (1) to the President;
       (2) to the heads of other departments and agencies of the 
     executive branch;
       (3) to the Chairman of the Joint Chiefs of Staff and senior 
     military commanders;
       (4) to the Senate and House of Representatives and the 
     committees thereof; and
       (5) to such other persons or entities as the President 
     shall direct.
       (b) National Intelligence.--Such national intelligence 
     shall be timely, objective, independent of political 
     considerations, and based upon all sources available to the 
     intelligence community.

     SEC. 112. RESPONSIBILITIES OF NATIONAL INTELLIGENCE DIRECTOR.

       (a) In General.--The National Intelligence Director shall--
       (1) determine the annual budget for the intelligence and 
     intelligence-related activities of the United States by--
       (A) providing to the heads of the departments containing 
     agencies or elements within the intelligence community and 
     that have one or more programs, projects, or activities 
     within the National Intelligence program, and to the heads of 
     such agencies and elements, guidance for development the 
     National Intelligence Program budget pertaining to such 
     agencies or elements;
       (B) developing and presenting to the President an annual 
     budget for the National Intelligence Program after 
     consultation with the heads of agencies or elements, and the 
     heads of their respective departments, under subparagraph 
     (A);
       (C) providing budget guidance to each element of the 
     intelligence community that does not have one or more 
     program, project, or activity within the National 
     Intelligence Program regarding the intelligence and 
     intelligence-related activities of such element; and
       (D) participating in the development by the Secretary of 
     Defense of the annual budgets for the military intelligence 
     programs, projects, and activities not included in the 
     National Intelligence Program;
       (2) manage and oversee the National Intelligence Program, 
     including--
       (A) the execution of funds within the National Intelligence 
     Program;
       (B) the reprogramming of funds appropriated or otherwise 
     made available to the National Intelligence Program; and
       (C) the transfer of funds and personnel under the National 
     Intelligence Program;
       (3) establish the requirements and priorities to govern the 
     collection, analysis, and dissemination of national 
     intelligence by elements of the intelligence community;
       (4) establish collection and analysis requirements for the 
     intelligence community, determine collection and analysis 
     priorities, issue and manage collection and analysis tasking, 
     and resolve conflicts in the tasking of elements of the 
     intelligence community within the National Intelligence 
     Program, except as otherwise agreed with the Secretary of 
     Defense pursuant to the direction of the President;
       (5) provide advisory tasking on the collection of 
     intelligence to elements of the United States Government 
     having information collection capabilities that are not 
     elements of the intelligence community;
       (6) manage and oversee the National Counterterrorism Center 
     under section 143, and establish, manage, and oversee 
     national intelligence centers under section 144;
       (7) 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;
       (8) develop and implement, in consultation with the heads 
     of other agencies or elements of the intelligence community, 
     and the heads of their respective departments, personnel 
     policies and programs applicable to the intelligence 
     community that--
       (A) encourage and facilitate assignments and details of 
     personnel to the National Counterterrorism Center under 
     section 143, to national intelligence centers under section 
     144, and between elements of the intelligence community;
       (B) set standards for education, training, and career 
     development of personnel of the intelligence community;

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       (C) encourage and facilitate the recruitment and retention 
     by the intelligence community of highly qualified individuals 
     for the effective conduct of intelligence activities;
       (D) ensure that the personnel of the intelligence community 
     is sufficiently diverse for purposes of the collection and 
     analysis of intelligence through the recruitment and training 
     of women, minorities, and individuals with diverse ethnic, 
     cultural, and linguistic backgrounds;
       (E) make service in more than one element of the 
     intelligence community a condition of promotion to such 
     positions within the intelligence community as the Director 
     shall specify;
       (F) ensure the effective management of intelligence 
     community personnel who are responsible for intelligence 
     community-wide matters;
       (G) provide for the effective management of human capital 
     within the intelligence community, including--
       (i) the alignment of human resource policies and programs 
     of the elements of the intelligence community with the 
     missions, goals, and organizational objectives of such 
     elements and of the intelligence community overall;
       (ii) the assessment of workforce characteristics and future 
     needs and the establishment of workforce development 
     strategies to meet those needs based on relevant 
     organizational missions and strategic plans;
       (iii) the sustainment of a culture that encourages and 
     allows for the development of a high performing workforce; 
     and
       (iv) the alignment of expectations for personnel 
     performance with relevant organizational missions and 
     strategic plans;
       (H) are consistent with the public employment principles of 
     merit and fitness set forth under section 2301 of title 5, 
     United States Code; and
       (I) include the enhancements required under section 114;
       (9) promote and evaluate the utility of national 
     intelligence to consumers within the United States 
     Government;
       (10) ensure that appropriate officials of the United States 
     Government and other appropriate individuals have access to a 
     variety of intelligence assessments and analytical views;
       (11) protect intelligence sources and methods from 
     unauthorized disclosure;
       (12) establish requirements and procedures for the 
     classification of intelligence information and for access to 
     classified intelligence information;
       (13) establish requirements and procedures for the 
     dissemination of classified information by elements of the 
     intelligence community;
       (14) establish intelligence reporting guidelines that 
     maximize the dissemination of information while protecting 
     intelligence sources and methods;
       (15) develop, in consultation with the heads of appropriate 
     departments and agencies of the United States Government, an 
     integrated communications network that provides interoperable 
     communications capabilities among all elements of the 
     intelligence community and such other entities and persons as 
     the Director considers appropriate;
       (16) establish standards for information technology and 
     communications for the intelligence community;
       (17) ensure that the intelligence community makes efficient 
     and effective use of open-source information and analysis;
       (18) ensure compliance by elements of the intelligence 
     community with the Constitution and all laws, regulations, 
     Executive orders, and implementing guidelines of the United 
     States applicable to the intelligence and intelligence-
     related activities of the United States Government, including 
     the provisions of the Constitution and all laws, regulations, 
     Executive orders, and implementing guidelines of the United 
     States applicable to the protection of the privacy and civil 
     liberties of United States persons;
       (19) eliminate waste and unnecessary duplication within the 
     intelligence community; and
       (20) perform such other functions as the President may 
     direct.
       (b) Uniform Procedures for Sensitive Compartmented 
     Information.--The President, acting through the National 
     Intelligence Director, shall establish uniform standards and 
     procedures for the grant to sensitive compartmented 
     information in accordance with section 115.
       (c) Performance of Common Services.--(1) The National 
     Intelligence Director shall, in consultation with the heads 
     of departments and agencies of the United States Government 
     containing elements within the intelligence community and 
     with the Director of the Central Intelligence Agency, direct 
     and coordinate the performance by the elements of the 
     intelligence community within the National Intelligence 
     Program of such services as are of common concern to the 
     intelligence community, which services the National 
     Intelligence Director determines can be more efficiently 
     accomplished in a consolidated manner.
       (2) The services performed under paragraph (1) shall 
     include research and development on technology for use in 
     national intelligence missions.
       (d) Regulations.--The National Intelligence Director may 
     prescribe regulations relating to the discharge and 
     enforcement of the responsibilities of the Director under 
     this section.

     SEC. 113. AUTHORITIES OF NATIONAL INTELLIGENCE DIRECTOR.

       (a) Access to Intelligence.--Unless otherwise directed by 
     the President, the National Intelligence Director shall have 
     access to all intelligence related to the national security 
     which is collected by any department, agency, or other 
     element of the United States Government.
       (b) Determination of Budgets for NIP and Other Intelligence 
     Activities.--The National Intelligence Director shall 
     determine the annual budget for the intelligence and 
     intelligence-related activities of the United States 
     Government under section 112(a)(1) by--
       (1) providing to the heads of the departments containing 
     agencies or elements within the intelligence community and 
     that have one or more programs, projects, or activities 
     within the National Intelligence program, and to the heads of 
     such agencies and elements, guidance for development the 
     National Intelligence Program budget pertaining to such 
     agencies or elements;
       (2) developing and presenting to the President an annual 
     budget for the National Intelligence Program after 
     consultation with the heads of agencies or elements, and the 
     heads of their respective departments, under paragraph (1), 
     including, in furtherance of such budget, the review, 
     modification, and approval of budgets of the agencies or 
     elements of the intelligence community with one or more 
     programs, projects, or activities within the National 
     Intelligence Program utilizing the budget authorities in 
     subsection (c)(1);
       (3) providing guidance on the development of annual budgets 
     for each element of the intelligence community that does not 
     have any program, project, or activity within the National 
     Intelligence Program utilizing the budget authorities in 
     subsection (c)(2);
       (4) participating in the development by the Secretary of 
     Defense of the annual budget for military intelligence 
     programs and activities outside the National Intelligence 
     Program;
       (4) receiving the appropriations for the National 
     Intelligence Program as specified in subsection (d) and 
     allotting and allocating funds to agencies and elements of 
     the intelligence community; and
       (5) managing and overseeing the execution by the agencies 
     or elements of the intelligence community, and, if necessary, 
     the modification of the annual budget for the National 
     Intelligence Program, including directing the reprogramming 
     and transfer of funds, and the transfer of personnel, among 
     and between elements of the intelligence community within the 
     National Intelligence Program utilizing the authorities in 
     subsections (f) and (g).
       (c) Budget Authorities.--(1)(A) In developing and 
     presenting an annual budget for the elements of the 
     intelligence community within the National Intelligence 
     Program under subsection (b)(1), the National Intelligence 
     Director shall coordinate, prepare, and present to the 
     President the annual budgets of those elements, in 
     consultation with the heads of those elements.
       (B) If any portion of the budget for an element of the 
     intelligence community within the National Intelligence 
     Program is prepared outside the Office of the National 
     Intelligence Director, the Director--
       (i) shall approve such budget before submission to the 
     President; and
       (ii) may require modifications of such budget to meet the 
     requirements and priorities of the Director before approving 
     such budget under clause (i).
       (C) The budget of an agency or element of the intelligence 
     community with one or more programs, projects, or activities 
     within the National Intelligence Program may not be provided 
     to the President unless the Director has first approved such 
     budget.
       (2)(A) The Director shall provide guidance for the 
     development of the annual budgets for each agency or element 
     of the intelligence community that does not have any program, 
     project, or activity within the National Intelligence 
     Program.
       (B) The heads of the agencies or elements of the 
     intelligence community, and the heads of their respective 
     departments, referred to in subparagraph (A) shall coordinate 
     closely with the Director in the development of the budgets 
     of such agencies or elements, before the submission of their 
     recommendations on such budgets to the President.
       (d) Jurisdiction of Funds Under NIP.--(1) Notwithstanding 
     any other provision of law and consistent with section 504 of 
     the National Security Act of 1947 (50 U.S.C. 414), any 
     amounts appropriated or otherwise made available for the 
     National Intelligence Program shall be appropriated to the 
     National Intelligence Authority and, pursuant to subsection 
     (e), under the direct jurisdiction of the National 
     Intelligence Director.
       (2) The Director shall manage and oversee the execution by 
     each element of the intelligence community of any amounts 
     appropriated or otherwise made available to such element 
     under the National Intelligence Program.
       (e) Accounts for Administration of NIP Funds.--(1) The 
     Secretary of the Treasury shall, in consultation with the 
     National Intelligence Director, establish accounts for the 
     funds under the jurisdiction of the Director under subsection 
     (d) for purposes of carrying out the responsibilities and 
     authorities of the Director under this Act with respect to 
     the National Intelligence Program.
       (2) The National Intelligence Director shall--
       (A) control and manage the accounts established under 
     paragraph (1); and

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       (B) with the concurrence of the Director of the Office of 
     Management and Budget, establish procedures governing the use 
     (including transfers and reprogrammings) of funds in such 
     accounts.
       (3)(A) To the extent authorized by law, a certifying 
     official shall follow the procedures established under 
     paragraph (2)(B) with regard to each account established 
     under paragraph (1). Disbursements from any such account 
     shall only be made against a valid obligation of such 
     account.
       (B) In this paragraph, the term ``certifying official', 
     with respect to an element of the intelligence community, 
     means an employee of the element who has responsibilities 
     specified in section 3528(a) of title 31, United States Code.
       (4) The National Intelligence Director shall allot funds 
     deposited in an account established under paragraph (1) 
     directly to the head of the elements of the intelligence 
     community concerned in accordance with the procedures 
     established under paragraph (2)(B).
       (5) Each account established under paragraph (1) shall be 
     subject to chapters 13 and 15 of title 31, United States 
     Code, other than sections 1503 and 1556 of that title.
       (6) Nothing in this subsection shall be construed to impair 
     or otherwise affect the authority granted by subsection 
     (g)(3) or by section 5 or 8 of the Central Intelligence 
     Agency Act of 1949 (50 U.S.C. 403f, 403j).
       (f) Role in Reprogramming or Transfer of NIP Funds by 
     Elements of Intelligence Community.--(1) No funds made 
     available under the National Intelligence Program may be 
     reprogrammed or transferred by any agency or element of the 
     intelligence community without the prior approval of the 
     National Intelligence Director except in accordance with 
     procedures issued by the Director.
       (2) The head of the department concerned shall consult with 
     the Director before reprogramming or transferring funds 
     appropriated or otherwise made available to an agency or 
     element of the intelligence community that does not have any 
     program, project, or activity within the National 
     Intelligence Program.
       (3) The Director shall, before reprogramming funds 
     appropriated or otherwise made available for an element of 
     the intelligence community within the National Intelligence 
     Program, consult with the head of the department or agency 
     having jurisdiction over such element regarding such 
     reprogramming.
       (4)(A) The Director shall consult with the appropriate 
     committees of Congress regarding modifications of existing 
     procedures to expedite the reprogramming of funds within the 
     National Intelligence Program.
       (B) Any modification of procedures under subparagraph (A) 
     shall include procedures for the notification of the 
     appropriate committees of Congress of any objection raised by 
     the head of a department or agency to a reprogramming 
     proposed by the Director as a result of consultations under 
     paragraph (3).
       (g) Transfer or Reprogramming of Funds and Transfer of 
     Personnel Within NIP.--(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 and after 
     consultation with the heads of the departments containing 
     agencies or elements within the intelligence community to the 
     extent their subordinate agencies or elements are affected, 
     with the heads of such subordinate agencies or elements, and 
     with the Director of the Central Intelligence Agency to the 
     extent the Central Intelligence Agency is affected, may--
       (A) transfer or reprogram funds appropriated for a program 
     within the National Intelligence Program to another such 
     program;
       (B) review, and approve or disapprove, any proposal to 
     transfer or reprogram funds from appropriations that are not 
     for the National Intelligence Program to appropriations for 
     the National Intelligence Program;
       (C) in accordance with procedures to be developed by the 
     National Intelligence Director, transfer personnel of the 
     intelligence community funded through the National 
     Intelligence Program from one element of the intelligence 
     community to another element of the intelligence community; 
     and
       (D) in accordance with procedures to be developed by the 
     National Intelligence Director and the heads of the 
     departments and agencies concerned, transfer personnel of the 
     intelligence community not funded through the National 
     Intelligence Program from one element of the intelligence 
     community to another element of the intelligence community.
       (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 transfer does not involve a transfer of funds to 
     the Reserve for Contingencies of the National Intelligence 
     Director; or
       (C) the transfer does not exceed applicable ceilings 
     established in law for such transfers.
       (3) Funds transferred under this subsection shall remain 
     available for the same period as the appropriations account 
     to which transferred.
       (4) 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 October 24, 
     1992.
       (5)(A) The National Intelligence Director shall promptly 
     submit to the appropriate committees of Congress 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.
       (B) In this paragraph, the term ``appropriate committees of 
     Congress'' means--
       (i)(I) the Committee on Appropriations and the Select 
     Committee on Intelligence of the Senate; and
       (II) the Committee on Appropriations and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives;
       (ii) in the case of a transfer of personnel to or from the 
     Department of Defense--
       (I) the committees and select committees referred to in 
     clause (i);
       (II) the Committee on Armed Services of the Senate; and
       (III) the Committee on Armed Services of the House of 
     Representatives;
       (iii) in the case of a transfer of personnel to or from the 
     Federal Bureau of Investigation--
       (I) the committees and select committees referred to in 
     clause (i);
       (II) the Committee on the Judiciary of the Senate; and
       (III) the Committee on the Judiciary of the House of 
     Representatives; and
       (iv) in the case of a transfer of personnel to or from the 
     Department of Homeland Security--
       (I) the committees and select committees referred to in 
     clause (i);
       (II) the Committee on Governmental Affairs of the Senate; 
     and
       (III) the Select Committee on Homeland Security of the 
     House of Representatives.
       (h) Information Technology and Communications.--(1) In 
     conforming with section 205, in carrying out section 
     112(a)(16), the National Intelligence Director shall--
       (A) establish standards for information technology and 
     communications across the intelligence community;
       (B) develop an integrated information technology network 
     and enterprise architecture for the intelligence community, 
     including interface standards for interoperability to enable 
     automated information-sharing among elements of the 
     intelligence community;
       (C) maintain an inventory of critical information 
     technology and communications systems, and eliminate 
     unnecessary or duplicative systems;
       (D) establish contingency plans for the intelligence 
     community regarding information technology and 
     communications; and
       (E) establish policies, doctrine, training, and other 
     measures necessary to ensure that the intelligence community 
     develops an integrated information technology and 
     communications network that ensures information-sharing.
       (2) Consistent with section 205, the Director shall take 
     any action necessary, including the setting of standards for 
     information technology and communications across the 
     intelligence community, to develop an integrated information 
     technology and communications network that ensures 
     information-sharing across the intelligence community.
       (i) Coordination With Foreign Governments.--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 and direct the Director of the Central 
     Intelligence Agency in coordinating, under section 103(f) of 
     the National Security Act of 1947, 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.
       (j) Open Source Information Collection.--The National 
     Intelligence Director shall establish and maintain within the 
     intelligence community an effective and efficient open-source 
     information collection capability.
       (k) Access to Information.--Except as otherwise directed by 
     the President, the head of each element of the intelligence 
     community shall promptly provide the National Intelligence 
     Director such information in the possession or under the 
     control of such element as the Director may request in order 
     to facilitate the exercise of the authorities and 
     responsibilities of the Director under this Act.

     SEC. 114. ENHANCED PERSONNEL MANAGEMENT.

       (a) Rewards for Service in Certain Positions.--(1) The 
     National Intelligence Director shall prescribe regulations to 
     provide incentives for service on the staff of the national 
     intelligence centers, on the staff of the National 
     Counterterrorism Center, and in other positions in support of 
     the intelligence community management functions of the 
     Director.
       (2) Incentives under paragraph (1) may include financial 
     incentives, bonuses, and such other awards and incentives as 
     the Director considers appropriate.

[[Page H8797]]

       (b) Enhanced Promotion for Service Under NID.--
     Notwithstanding any other provision of law, the National 
     Intelligence Director shall ensure that personnel of an 
     element of the intelligence community who are assigned or 
     detailed 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.
       (c) Joint Career Matters.--(1) In carrying out section 
     112(a)(8), 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, and disciplines.
       (2) The mechanisms prescribed under paragraph (1) may 
     include the following:
       (A) The establishment of special occupational categories 
     involving service, over the course of a career, in more than 
     one element of the intelligence community.
       (B) The provision of rewards for service in positions 
     undertaking analysis and planning of operations involving two 
     or more elements of the intelligence community.
       (C) The establishment of requirements for education, 
     training, service, and evaluation that involve service in 
     more than one element of the intelligence community.
       (3) It is the sense of Congress that the mechanisms 
     prescribed under this subsection should, to the extent 
     practical, seek to duplicate within the intelligence 
     community the joint officer management policies established 
     by the Goldwater-Nichols Department of Defense Reorganization 
     Act of 1986 (Public Law 99-433) and the amendments on joint 
     officer management made by that Act.

     SEC. 115. SECURITY CLEARANCES.

       (a) In General.--The President, in consultation with the 
     National Intelligence Director, the department, agency, or 
     element selected under (b), and other appropriate officials 
     shall--
       (1) establish uniform standards and procedures for the 
     grant of access to classified information for employees and 
     contractor personnel of the United States Government who 
     require access to such information;
       (2) ensure the consistent implementation of the standards 
     and procedures established under paragraph (1) throughout the 
     departments, agencies, and elements of the United States 
     Government and under contracts entered into by such 
     departments, agencies, and elements;
       (3) ensure that an individual who is granted or continued 
     eligibility for access to classified information is treated 
     by each department, agency, or element of the executive 
     branch as eligible for access to classified information at 
     that level for all purposes of each such department, agency, 
     or element, regardless of which department, agency, or 
     element of the executive branch granted or continued the 
     eligibility of such individual for access to classified 
     information;
       (4) establish uniform requirements and standards, including 
     for security questionnaires, financial disclosure 
     requirements, and standards for administering polygraph 
     examinations, to be utilized for the performance of security 
     clearance investigations, including by the contractors 
     conducting such investigations; and
       (5) ensure that the database established under subsection 
     (b)(2)(B) meets the needs of the intelligence community.
       (b) Performance of Security Clearance Investigations.--(1) 
     Not later than 45 days after the date of the enactment of 
     this Act, the President shall select a single department, 
     agency, or element of the executive branch to conduct all 
     security clearance investigations of employees and contractor 
     personnel of the United States Government who require access 
     to classified information and to provide and maintain all 
     security clearances of such employees and contractor 
     personnel.
       (2) The department, agency, or element selected under 
     paragraph (1) shall--
       (A) take all necessary actions to carry out the 
     requirements of this section, including entering into a 
     memorandum of understanding with any agency carrying out 
     responsibilities relating to security clearances or security 
     clearance investigations before the date of the enactment of 
     this Act;
       (B) as soon as practicable, establish and maintain a single 
     database for tracking security clearance applications, 
     security clearance investigations, and determinations of 
     eligibility for security clearances, which database shall 
     incorporate applicable elements of similar databases in 
     existence on the date of the enactment of this Act; and
       (C) ensure that security clearance investigations are 
     conducted in accordance with uniform standards and 
     requirements established under subsection (a)(4), including 
     uniform security questionnaires and financial disclosure 
     requirements.
       (c) Adjudication and Grant of Security Clearances.--(1) 
     Each agency that adjudicates and grants security clearances 
     as of the date of the enactment of this Act may continue to 
     adjudicate and grant security clearances after that date.
       (2) Each agency that adjudicates and grants security 
     clearances shall specify to the department, agency, or 
     element selected under subsection (b) the level of security 
     clearance investigation required for an individual under its 
     jurisdiction.
       (3) Upon granting or continuing eligibility for access to 
     classified information to an individual under its 
     jurisdiction, an agency that adjudicates and grants security 
     clearances shall submit to the department, agency, or element 
     selected under subsection (b) notice of that action, 
     including the level of access to classified information 
     granted.
       (d) Utilization of Personnel.--There shall be transferred 
     to the department, agency, or element selected under 
     subsection (b) any personnel of any executive agency whose 
     sole function as of the date of the enactment of this Act is 
     the performance of security clearance investigations.
       (e) Transition.--The President shall take appropriate 
     actions to ensure that the performance of security clearance 
     investigations under this section commences not later than 
     one year after the date of the enactment of this Act.

     SEC. 116. NATIONAL INTELLIGENCE RESERVE CORPS.

       (a) Establishment.--The National Intelligence Director may 
     provide for the establishment and training of a National 
     Intelligence Reserve Corps (in this section referred to as 
     ``National Intelligence Reserve Corps'') for the temporary 
     reemployment on a voluntary basis of former employees of 
     elements of the intelligence community during periods of 
     emergency, as determined by the Director.
       (b) Eligible Individuals.--An individual may participate in 
     the National Intelligence Reserve Corps only if the 
     individual previously served as a full time employee of an 
     element of the intelligence community.
       (c) Limitation on Membership.--The total number of 
     individuals who are members of the National Intelligence 
     Reserve Corps at any given time may not exceed 200 
     individuals.
       (d) Terms of Participation.--The National Intelligence 
     Director shall prescribe the terms and conditions under which 
     eligible individuals may participate in the National 
     Intelligence Reserve Corps.
       (e) Expenses.--The National Intelligence Director may 
     provide members of the National Intelligence Reserve Corps 
     transportation and per diem in lieu of subsistence for 
     purposes of participating in any training that relates to 
     service as a member of the Reserve Corps.
       (f) Treatment of Annuitants.--(1) If an annuitant receiving 
     an annuity from the Civil Service Retirement and Disability 
     Fund becomes temporarily reemployed pursuant to this section, 
     such annuity shall not be discontinued thereby.
       (2) An annuitant so reemployed shall not be considered an 
     employee for the purposes of chapter 83 or 84 of title 5, 
     United States Code.
       (g) Treatment Under National Intelligence Authority 
     Personnel Ceiling.--A member of the National Intelligence 
     Reserve Corps who is reemployed on a temporary basis pursuant 
     to this section shall not count against any personnel ceiling 
     applicable to the National Intelligence Authority.

     SEC. 117. APPOINTMENT AND TERMINATION OF CERTAIN OFFICIALS 
                   RESPONSIBLE FOR INTELLIGENCE-RELATED 
                   ACTIVITIES.

       (a) Recommendation of NID in Certain Appointment.--In the 
     event of a vacancy in the position of Director of the Central 
     Intelligence Agency, the National Intelligence Director shall 
     recommend to the President an individual for nomination to 
     fill the vacancy.
       (b) Concurrence of Secretary of Defense in Certain 
     Appointments Recommended by NID.--(1) In the event of a 
     vacancy in a position referred to in paragraph (2), the 
     National Intelligence Director shall obtain the concurrence 
     of the Secretary of Defense before recommending to the 
     President an individual for nomination to fill such vacancy. 
     If the Secretary does not concur in the recommendation, the 
     Director may make the recommendation to the President without 
     the concurrence of the Secretary, but shall include in the 
     recommendation a statement that the Secretary does not concur 
     in the recommendation.
       (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) Concurrence of NID in Certain Appointments.--(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 fill the 
     vacancy or make the recommendation to the President (as the 
     case may be) without the concurrence of the Director, but 
     shall notify the President that the Director does not concur 
     in appointment or recommendation (as the case may be).
       (2) Paragraph (1) applies to the following positions:
       (A) The Under Secretary of Defense for Intelligence.
       (B) The Assistant Secretary of Homeland Security for 
     Information Analysis.
       (C) The Director of the Defense Intelligence Agency.
       (D) The Executive Assistant Director for Intelligence of 
     the Federal Bureau of Investigation.

[[Page H8798]]

       (d) Recommendation of NID on Termination of Service.--(1) 
     The National Intelligence Director may recommend to the 
     President or the head of the department or agency concerned 
     the termination of service of any individual serving in any 
     position covered by this section.
       (2) In the event the Director intends to recommend to the 
     President the termination of service of an individual under 
     paragraph (1), the Director shall seek the concurrence of the 
     head of the department or agency concerned. If the head of 
     the department or agency concerned does not concur in the 
     recommendation, the Director may make the recommendation to 
     the President without the concurrence of the head of the 
     department or agency concerned, but shall notify the 
     President that the head of the department or agency concerned 
     does not concur in the recommendation.

     SEC. 118. RESERVE FOR CONTINGENCIES OF THE NATIONAL 
                   INTELLIGENCE DIRECTOR.

       (a) Establishment.--There is hereby established on the 
     books of the Treasury an account to be known as the Reserve 
     for Contingencies of the National Intelligence Director.
       (b) Elements.--The Reserve shall consist of the following 
     elements:
       (1) Amounts authorized to be appropriated to the Reserve.
       (2) Any amounts authorized to be transferred to or 
     deposited in the Reserve by law.
       (c) Availability.--Amounts in the Reserve shall be 
     available for such purposes as are provided by law.
       (d) Transfer of Funds of Reserve for Contingencies of 
     CIA.--There shall be transferred to the Reserve for 
     Contingencies of the National Intelligence Director all 
     unobligated balances of the Reserve for Contingencies of the 
     Central Intelligence Agency as of the date of the enactment 
     of this Act.

        Subtitle C--Office of the National Intelligence Director

     SEC. 121. OFFICE OF THE NATIONAL INTELLIGENCE DIRECTOR.

       (a) Office of National Intelligence Director.--There is 
     within the National Intelligence Authority an Office of the 
     National Intelligence Director.
       (b) Function.--The function of the Office of the National 
     Intelligence Director is to assist the National Intelligence 
     Director in carrying out the duties and responsibilities of 
     the Director under this Act, the National Security Act of 
     1947 (50 U.S.C. 401 et seq.), and other applicable provisions 
     of law, and to carry out such other duties as may be 
     prescribed by the President or by law.
       (c) Composition.--The Office of the National Intelligence 
     Director is composed of the following:
       (1) The Principal Deputy National Intelligence Director.
       (2) Any Deputy National Intelligence Director appointed 
     under section 122(b).
       (3) The National Intelligence Council.
       (4) The General Counsel of the National Intelligence 
     Authority.
       (5) The Intelligence Comptroller.
       (6) The Officer for Civil Rights and Civil Liberties of the 
     National Intelligence Authority.
       (7) The Privacy Officer of the National Intelligence 
     Authority.
       (8) The Chief Information Officer of the National 
     Intelligence Authority.
       (9) The Chief Human Capital Officer of the National 
     Intelligence Authority.
       (10) The Chief Financial Officer of the National 
     Intelligence Authority.
       (11) The National Counterintelligence Executive (including 
     the Office of the National Counterintelligence Executive).
       (12) Such other offices and officials as may be established 
     by law or the Director may establish or designate in the 
     Office.
       (d) Staff.--(1) 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 professional staff 
     having an expertise in matters relating to such duties and 
     responsibilities, and may establish permanent positions and 
     appropriate rates of pay with respect to that staff.
       (2) The staff of the Office of the National Intelligence 
     Director under paragraph (1) shall include the staff of the 
     Office of the Deputy Director of Central Intelligence for 
     Community Management that is transferred to the Office of the 
     National Intelligence Director under section 321.
       (e) Prohibition on Co-Location With Other Elements of 
     Intelligence Community.--Commencing as of October 1, 2006, 
     the Office of the National Intelligence Director may not be 
     co-located with any other element of the intelligence 
     community.

     SEC. 122. DEPUTY NATIONAL INTELLIGENCE DIRECTORS.

       (a) Principal Deputy National Intelligence Director.--(1) 
     There is a Principal Deputy National Intelligence Director 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate.
       (2) In the event of a vacancy in the position of Principal 
     Deputy National Intelligence Director, the National 
     Intelligence Director shall recommend to the President an 
     individual for appointment as Principal Deputy National 
     Intelligence Director.
       (3) Any individual nominated for appointment as Principal 
     Deputy National Intelligence Director shall have extensive 
     national security experience and management expertise.
       (4) The individual serving as Principal Deputy National 
     Intelligence Director may not, while so serving, serve in any 
     capacity in any other element of the intelligence community, 
     except to the extent that the individual serving as Principal 
     Deputy National Intelligence Director is doing so in an 
     acting capacity.
       (5) The Principal Deputy National Intelligence Director 
     shall assist the National Intelligence Director in carrying 
     out the duties and responsibilities of the Director.
       (6) The Principal 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 National Director of Intelligence.
       (b) Deputy National Intelligence Directors.--(1) There may 
     be not more than four Deputy National Intelligence Directors 
     who shall be appointed by the President.
       (2) In the event of a vacancy in any position of Deputy 
     National Intelligence Director established under this 
     subsection, the National Intelligence Director shall 
     recommend to the President an individual for appointment to 
     such position.
       (3) Each Deputy National Intelligence Director appointed 
     under this subsection shall have such duties, 
     responsibilities, and authorities as the National 
     Intelligence Director may assign or are specified by law.

     SEC. 123. NATIONAL INTELLIGENCE COUNCIL.

       (a) National Intelligence Council.--There is a National 
     Intelligence Council.
       (b) Composition.--(1) 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, report to, and serve at 
     the pleasure of, the National Intelligence Director.
       (2) 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.
       (c) Duties and Responsibilities.--(1) The National 
     Intelligence Council shall--
       (A) produce national intelligence estimates for the United 
     States Government, including alternative views held by 
     elements of the intelligence community and other information 
     as specified in paragraph (2);
       (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 responsibilities of the Director under 
     section 111.
       (2) The National Intelligence Director shall ensure that 
     the Council satisfies the needs of policymakers and other 
     consumers of intelligence by ensuring that each national 
     intelligence estimate under paragraph (1)--
       (A) states separately, and distinguishes between, the 
     intelligence underlying such estimate and the assumptions and 
     judgments of analysts with respect to such intelligence and 
     such estimate;
       (B) describes the quality and reliability of the 
     intelligence underlying such estimate;
       (C) presents and explains alternative conclusions, if any, 
     with respect to the intelligence underlying such estimate and 
     such estimate; and
       (D) characterizes the uncertainties, if any, and confidence 
     in such estimate.
       (d) Service as Senior Intelligence Advisers.--Within their 
     respective areas of expertise and under the direction of the 
     National Intelligence Director, 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.
       (e) Authority To Contract.--Subject to the direction and 
     control of the National Intelligence Director, 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 section.
       (f) Staff.--The National Intelligence Director shall make 
     available to the National Intelligence Council such staff as 
     may be necessary to permit the Council to carry out its 
     responsibilities under this section.
       (g) Availability of Council and Staff.--(1) The National 
     Intelligence Director shall take appropriate measures to 
     ensure that the National Intelligence Council and its staff 
     satisfy the needs of policymaking officials and other 
     consumers of intelligence.
       (2) The Council shall be readily accessible to policymaking 
     officials and other appropriate individuals not otherwise 
     associated with the intelligence community.
       (h) Support.--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.

     SEC. 124. GENERAL COUNSEL OF THE NATIONAL INTELLIGENCE 
                   AUTHORITY.

       (a) General Counsel of National Intelligence Authority.--
     There is a General Counsel of the National Intelligence 
     Authority who shall be appointed from civilian life

[[Page H8799]]

     by the President, by and with the advice and consent of the 
     Senate.
       (b) Prohibition on Dual Service as General Counsel of 
     Another Agency.--The individual serving in the position of 
     General Counsel of the National Intelligence Authority may 
     not, while so serving, also serve as the General Counsel of 
     any other department, agency, or element of the United States 
     Government.
       (c) Scope of Position.--The General Counsel of the National 
     Intelligence Authority is the chief legal officer of the 
     National Intelligence Authority.
       (d) Functions.--The General Counsel of the National 
     Intelligence Authority shall perform such functions as the 
     National Intelligence Director may prescribe.

     SEC. 125. INTELLIGENCE COMPTROLLER.

       (a) Intelligence Comptroller.--There is an Intelligence 
     Comptroller who shall be appointed from civilian life by the 
     National Intelligence Director.
       (b) Supervision.--The Intelligence Comptroller shall report 
     directly to the National Intelligence Director.
       (c) Duties.--The Intelligence Comptroller shall--
       (1) assist the National Intelligence Director in the 
     preparation and execution of the budget of the elements of 
     the intelligence community within the National Intelligence 
     Program;
       (2) assist the Director in participating in the development 
     by the Secretary of Defense of the annual budget for military 
     intelligence programs and activities outside the National 
     Intelligence Program;
       (3) provide unfettered access to the Director to financial 
     information under the National Intelligence Program;
       (4) perform such other duties as may be prescribed by the 
     Director or specified by law.

     SEC. 126. OFFICER FOR CIVIL RIGHTS AND CIVIL LIBERTIES OF THE 
                   NATIONAL INTELLIGENCE AUTHORITY.

       (a) Officer for Civil Rights and Civil Liberties of 
     National Intelligence Authority.--There is an Officer for 
     Civil Rights and Civil Liberties of the National Intelligence 
     Authority who shall be appointed by the President.
       (b) Supervision.--The Officer for Civil Rights and Civil 
     Liberties of the National Intelligence Authority shall report 
     directly to the National Intelligence Director.
       (c) Duties.--The Officer for Civil Rights and Civil 
     Liberties of the National Intelligence Authority shall--
       (1) assist the National Intelligence Director in ensuring 
     that the protection of civil rights and civil liberties, as 
     provided in the Constitution, laws, regulations, and 
     Executive orders of the United States, is appropriately 
     incorporated in--
       (A) the policies and procedures developed for and 
     implemented by the National Intelligence Authority;
       (B) the policies and procedures regarding the relationships 
     among the elements of the intelligence community within the 
     National Intelligence Program; and
       (C) the policies and procedures regarding the relationships 
     between the elements of the intelligence community within the 
     National Intelligence Program and the other elements of the 
     intelligence community;
       (2) oversee compliance by the Authority, and in the 
     relationships described in paragraph (1), with requirements 
     under the Constitution and all laws, regulations, Executive 
     orders, and implementing guidelines relating to civil rights 
     and civil liberties;
       (3) review, investigate, and assess complaints and other 
     information indicating possible abuses of civil rights or 
     civil liberties, as provided in the Constitution, laws, 
     regulations, and Executive orders of the United States, in 
     the administration of the programs and operations of the 
     Authority, and in the relationships described in paragraph 
     (1), unless, in the determination of the Inspector General of 
     the National Intelligence Authority, the review, 
     investigation, or assessment of a particular complaint or 
     information can better be conducted by the Inspector General;
       (4) coordinate with the Privacy Officer of the National 
     Intelligence Authority to ensure that programs, policies, and 
     procedures involving civil rights, civil liberties, and 
     privacy considerations are addressed in an integrated and 
     comprehensive manner; and
       (5) perform such other duties as may be prescribed by the 
     Director or specified by law.

     SEC. 127. PRIVACY OFFICER OF THE NATIONAL INTELLIGENCE 
                   AUTHORITY.

       (a) Privacy Officer of National Intelligence Authority.--
     There is a Privacy Officer of the National Intelligence 
     Authority who shall be appointed by the National Intelligence 
     Director.
       (b) Duties.--(1) The Privacy Officer of the National 
     Intelligence Authority shall have primary responsibility for 
     the privacy policy of the National Intelligence Authority 
     (including in the relationships among the elements of the 
     intelligence community within the National Intelligence 
     Program and the relationships between the elements of the 
     intelligence community within the National Intelligence 
     Program and the other elements of the intelligence 
     community).
       (2) In discharging the responsibility under paragraph (1), 
     the Privacy Officer shall--
       (A) assure that the use of technologies sustain, and do not 
     erode, privacy protections relating to the use, collection, 
     and disclosure of personal information;
       (B) assure that personal information contained in Privacy 
     Act systems of records is handled in full compliance with 
     fair information practices as set out in the Privacy Act of 
     1974;
       (C) conduct privacy impact assessments when appropriate or 
     as required by law; and
       (D) coordinate with the Officer for Civil Rights and Civil 
     Liberties of the National Intelligence Authority to ensure 
     that programs, policies, and procedures involving civil 
     rights, civil liberties, and privacy considerations are 
     addressed in an integrated and comprehensive manner.

     SEC. 128. CHIEF INFORMATION OFFICER OF THE NATIONAL 
                   INTELLIGENCE AUTHORITY.

       (a) Chief Information Officer of National Intelligence 
     Authority.--There is a Chief Information Officer of the 
     National Intelligence Authority who shall be appointed by the 
     National Intelligence Director.
       (b) Duties.--The Chief Information Officer of the National 
     Intelligence Authority shall--
       (1) assist the National Intelligence Director in 
     implementing the responsibilities and executing the 
     authorities related to information technology under 
     paragraphs (15) and (16) of section 112(a) and section 
     113(h); and
       (2) perform such other duties as may be prescribed by the 
     Director or specified by law.

     SEC. 129. CHIEF HUMAN CAPITAL OFFICER OF THE NATIONAL 
                   INTELLIGENCE AUTHORITY.

       (a) Chief Human Capital Officer of National Intelligence 
     Authority.--There is a Chief Human Capital Officer of the 
     National Intelligence Authority who shall be appointed by the 
     National Intelligence Director.
       (b) Duties.--The Chief Human Capital Officer of the 
     National Intelligence Authority shall--
       (1) have the functions and authorities provided for Chief 
     Human Capital Officers under sections 1401 and 1402 of title 
     5, United States Code, with respect to the National 
     Intelligence Authority; and
       (2) advise and assist the National Intelligence Director in 
     exercising the authorities and responsibilities of the 
     Director with respect to the workforce of the intelligence 
     community as a whole.

     SEC. 130. CHIEF FINANCIAL OFFICER OF THE NATIONAL 
                   INTELLIGENCE AUTHORITY.

       (a) Chief Financial Officer of National Intelligence 
     Authority.--There is a Chief Financial Officer of the 
     National Intelligence Authority who shall be designated by 
     the President, in consultation with the National Intelligence 
     Director.
       (b) Designation Requirements.--The designation of an 
     individual as Chief Financial Officer of the National 
     Intelligence Authority shall be subject to applicable 
     provisions of section 901(a) of title 31, United States Code.
       (c) Authorities and Functions.--The Chief Financial Officer 
     of the National Intelligence Authority shall have such 
     authorities, and carry out such functions, with respect to 
     the National Intelligence Authority as are provided for an 
     agency Chief Financial Officer by section 902 of title 31, 
     United States Code, and other applicable provisions of law.
       (d) Coordination With NIA Comptroller.--(1) The Chief 
     Financial Officer of the National Intelligence Authority 
     shall coordinate with the Comptroller of the National 
     Intelligence Authority in exercising the authorities and 
     performing the functions provided for the Chief Financial 
     Officer under this section.
       (2) The National Intelligence Director shall take such 
     actions as are necessary to prevent duplication of effort by 
     the Chief Financial Officer of the National Intelligence 
     Authority and the Comptroller of the National Intelligence 
     Authority.
       (e) Integration of Financial Systems.--Subject to the 
     supervision, direction, and control of the National 
     Intelligence Director, the Chief Financial Officer of the 
     National Intelligence Authority shall take appropriate 
     actions to ensure the timely and effective integration of the 
     financial systems of the National Intelligence Authority 
     (including any elements or components transferred to the 
     Authority by this Act), and of the financial systems of the 
     Authority with applicable portions of the financial systems 
     of the other elements of the intelligence community, as soon 
     as possible after the date of the enactment of this Act.
       (f) Protection of Annual Financial Statement From 
     Disclosure.--The annual financial statement of the National 
     Intelligence Authority required under section 3515 of title 
     31, United States Code--
       (1) shall be submitted in classified form; and
       (2) notwithstanding any other provision of law, shall be 
     withheld from public disclosure.

     SEC. 131. NATIONAL COUNTERINTELLIGENCE EXECUTIVE.

       (a) National Counterintelligence Executive.--The National 
     Counterintelligence Executive under section 902 of the 
     Counterintelligence Enhancement Act of 2002 (title IX of 
     Public Law 107-306; 50 U.S.C. 402b et seq.), as amended by 
     section 309 of this Act, is a component of the Office of the 
     National Intelligence Director.
       (b) Duties.--The National Counterintelligence Executive 
     shall perform the duties provided in the Counterintelligence 
     Enhancement Act of 2002, as so amended, and such other duties 
     as may be prescribed by the National Intelligence Director or 
     specified by law.

[[Page H8800]]

   Subtitle D--Additional Elements of National Intelligence Authority

     SEC. 141. INSPECTOR GENERAL OF THE NATIONAL INTELLIGENCE 
                   AUTHORITY.

       (a) Office of Inspector General of National Intelligence 
     Authority.--There is within the National Intelligence 
     Authority an Office of the Inspector General of the National 
     Intelligence Authority.
       (b) Purpose.--The purpose of the Office of the Inspector 
     General of the National Intelligence Authority is to--
       (1) create an objective and effective office, appropriately 
     accountable to Congress, to initiate and conduct 
     independently investigations, inspections, and audits 
     relating to--
       (A) the programs and operations of the National 
     Intelligence Authority;
       (B) the relationships among the elements of the 
     intelligence community within the National Intelligence 
     Program; and
       (C) the relationships between the elements of the 
     intelligence community within the National Intelligence 
     Program and the other elements of the intelligence community;
       (2) recommend policies designed--
       (A) to promote economy, efficiency, and effectiveness in 
     the administration of such programs and operations, and in 
     such relationships; and
       (B) to prevent and detect fraud and abuse in such programs, 
     operations, and relationships;
       (3) provide a means for keeping the National Intelligence 
     Director fully and currently informed about--
       (A) problems and deficiencies relating to the 
     administration of such programs and operations, and to such 
     relationships; and
       (B the necessity for, and the progress of, corrective 
     actions; and
       (4) in the manner prescribed by this section, ensure that 
     the congressional intelligence committees are kept similarly 
     informed of--
       (A) significant problems and deficiencies relating to the 
     administration of such programs and operations, and to such 
     relationships; and
       (B) the necessity for, and the progress of, corrective 
     actions.
       (c) Inspector General of National Intelligence Authority.--
     (1) There is an Inspector General of the National 
     Intelligence Authority, who shall be the head of the Office 
     of the Inspector General of the National Intelligence 
     Authority, who shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (2) The nomination of an individual for appointment as 
     Inspector General shall be made--
       (A) without regard to political affiliation;
       (B) solely on the basis of integrity, compliance with the 
     security standards of the National Intelligence Authority, 
     and prior experience in the field of intelligence or national 
     security; and
       (C) on the basis of demonstrated ability in accounting, 
     financial analysis, law, management analysis, public 
     administration, or auditing.
       (3) The Inspector General shall report directly to and be 
     under the general supervision of the National Intelligence 
     Director.
       (4) The Inspector General may be removed from office only 
     by the President. The President shall immediately communicate 
     in writing to the congressional intelligence committees the 
     reasons for the removal of any individual from the position 
     of Inspector General.
       (d) Duties and Responsibilities.--It shall be the duty and 
     responsibility of the Inspector General of the National 
     Intelligence Authority--
       (1) to provide policy direction for, and to plan, conduct, 
     supervise, and coordinate independently, the investigations, 
     inspections, and audits relating to the programs and 
     operations of the National Intelligence Authority, the 
     relationships among the elements of the intelligence 
     community within the National Intelligence Program, and the 
     relationships between the elements of the intelligence 
     community within the National Intelligence Program and the 
     other elements of the intelligence community to ensure they 
     are conducted efficiently and in accordance with applicable 
     law and regulations;
       (2) to keep the National Intelligence Director fully and 
     currently informed concerning violations of law and 
     regulations, violations of civil liberties and privacy, and 
     fraud and other serious problems, abuses, and deficiencies 
     that may occur in such programs and operations, and in such 
     relationships, and to report the progress made in 
     implementing corrective action;
       (3) to take due regard for the protection of intelligence 
     sources and methods in the preparation of all reports issued 
     by the Inspector General, and, to the extent consistent with 
     the purpose and objective of such reports, take such measures 
     as may be appropriate to minimize the disclosure of 
     intelligence sources and methods described in such reports; 
     and
       (4) in the execution of the duties and responsibilities 
     under this section, to comply with generally accepted 
     government auditing standards.
       (e) Limitations on Activities.--(1) The National 
     Intelligence Director may prohibit the Inspector General of 
     the National Intelligence Authority from initiating, carrying 
     out, or completing any investigation, inspection, or audit if 
     the Director determines that such prohibition is necessary to 
     protect vital national security interests of the United 
     States.
       (2) If the Director exercises the authority under paragraph 
     (1), the Director shall submit an appropriately classified 
     statement of the reasons for the exercise of such authority 
     within seven days to the congressional intelligence 
     committees.
       (3) The Director shall advise the Inspector General at the 
     time a report under paragraph (1) is submitted, and, to the 
     extent consistent with the protection of intelligence sources 
     and methods, provide the Inspector General with a copy of 
     such report.
       (4) The Inspector General may submit to the congressional 
     intelligence committees any comments on a report of which the 
     Inspector General has notice under paragraph (3) that the 
     Inspector General considers appropriate.
       (f) Authorities.--(1) The Inspector General of the National 
     Intelligence Authority shall have direct and prompt access to 
     the National Intelligence Director when necessary for any 
     purpose pertaining to the performance of the duties of the 
     Inspector General.
       (2)(A) The Inspector General shall have access to any 
     employee, or any employee of a contractor, of the National 
     Intelligence Authority, and of any other element of the 
     intelligence community within the National Intelligence 
     Program, whose testimony is needed for the performance of the 
     duties of the Inspector General.
       (B) The Inspector General shall have direct access to all 
     records, reports, audits, reviews, documents, papers, 
     recommendations, or other material which relate to the 
     programs and operations with respect to which the Inspector 
     General has responsibilities under this section.
       (C) The level of classification or compartmentation of 
     information shall not, in and of itself, provide a sufficient 
     rationale for denying the Inspector General access to any 
     materials under subparagraph (B).
       (D) Failure on the part of any employee or contractor of 
     the National Intelligence Authority to cooperate with the 
     Inspector General shall be grounds for appropriate 
     administrative actions by the Director, including loss of 
     employment or the termination of an existing contractual 
     relationship.
       (3) The Inspector General is authorized to receive and 
     investigate complaints or information from any person 
     concerning the existence of an activity constituting a 
     violation of laws, rules, or regulations, or mismanagement, 
     gross waste of funds, abuse of authority, or a substantial 
     and specific danger to the public health and safety. Once 
     such complaint or information has been received from an 
     employee of the Federal government--
       (A) the Inspector General shall not disclose the identity 
     of the employee without the consent of the employee, unless 
     the Inspector General determines that such disclosure is 
     unavoidable during the course of the investigation or the 
     disclosure is made to an official of the Department of 
     Justice responsible for determining whether a prosecution 
     should be undertaken; and
       (B) no action constituting a reprisal, or threat of 
     reprisal, for making such complaint may be taken by any 
     employee in a position to take such actions, unless the 
     complaint was made or the information was disclosed with the 
     knowledge that it was false or with willful disregard for its 
     truth or falsity.
       (4) The Inspector General shall have authority to 
     administer to or take from any person an oath, affirmation, 
     or affidavit, whenever necessary in the performance of the 
     duties of the Inspector General, which oath, affirmation, or 
     affidavit when administered or taken by or before an employee 
     of the Office of the Inspector General of the National 
     Intelligence Authority designated by the Inspector General 
     shall have the same force and effect as if administered or 
     taken by or before an officer having a seal.
       (5)(A) Except as provided in subparagraph (B), the 
     Inspector General is authorized to require by subpoena the 
     production of all information, documents, reports, answers, 
     records, accounts, papers, and other data and documentary 
     evidence necessary in the performance of the duties and 
     responsibilities of the Inspector General.
       (B) In the case of departments, agencies, and other 
     elements of the United States Government, the Inspector 
     General shall obtain information, documents, reports, 
     answers, records, accounts, papers, and other data and 
     evidence for the purpose specified in subparagraph (A) using 
     procedures other than by subpoenas.
       (C) The Inspector General may not issue a subpoena for or 
     on behalf of any other element or component of the Authority.
       (D) In the case of contumacy or refusal to obey a subpoena 
     issued under this paragraph, the subpoena shall be 
     enforceable by order of any appropriate district court of the 
     United States.
       (g) Staff and Other Support.--(1) The Inspector General of 
     the National Intelligence Authority shall be provided with 
     appropriate and adequate office space at central and field 
     office locations, together with such equipment, office 
     supplies, maintenance services, and communications facilities 
     and services as may be necessary for the operation of such 
     offices.
       (2)(A) Subject to applicable law and the policies of the 
     National Intelligence Director, the Inspector General shall 
     select, appoint and employ such officers and employees as may 
     be necessary to carry out the functions of the Inspector 
     General.
       (B) In making selections under subparagraph (A), the 
     Inspector General shall ensure

[[Page H8801]]

     that such officers and employees have the requisite training 
     and experience to enable the Inspector General to carry out 
     the duties of the Inspector General effectively.
       (C) In meeting the requirements of this paragraph, the 
     Inspector General shall create within the Office of the 
     Inspector General of the National Intelligence Authority a 
     career cadre of sufficient size to provide appropriate 
     continuity and objectivity needed for the effective 
     performance of the duties of the Inspector General.
       (3)(A) Subject to the concurrence of the Director, the 
     Inspector General may request such information or assistance 
     as may be necessary for carrying out the duties and 
     responsibilities of the Inspector General from any 
     department, agency, or other element of the United States 
     Government.
       (B) Upon request of the Inspector General for information 
     or assistance under subparagraph (A), the head of the 
     department, agency, or element concerned shall, insofar as is 
     practicable and not in contravention of any existing 
     statutory restriction or regulation of the department, 
     agency, or element, furnish to the Inspector General, or to 
     an authorized designee, such information or assistance.
       (h) Reports.--(1)(A) The Inspector General of the National 
     Intelligence Authority shall, not later than January 31 and 
     July 31 of each year, prepare and submit to the National 
     Intelligence Director a classified semiannual report 
     summarizing the activities of the Office of the Inspector 
     General of the National Intelligence Authority during the 
     immediately preceding six-month periods ending December 31 
     (of the preceding year) and June 30, respectively.
       (B) Each report under this paragraph shall include, at a 
     minimum, the following:
       (i) A list of the title or subject of each investigation, 
     inspection, or audit conducted during the period covered by 
     such report.
       (ii) A description of significant problems, abuses, and 
     deficiencies relating to the administration of programs and 
     operations of the National Intelligence Authority identified 
     by the Inspector General during the period covered by such 
     report.
       (iii) A description of the recommendations for corrective 
     action made by the Inspector General during the period 
     covered by such report with respect to significant problems, 
     abuses, or deficiencies identified in clause (ii).
       (iv) A statement whether or not corrective action has been 
     completed on each significant recommendation described in 
     previous semiannual reports, and, in a case where corrective 
     action has been completed, a description of such corrective 
     action.
       (v) An assessment of the effectiveness of all measures in 
     place in the Authority for the protection of civil liberties 
     and privacy of United States persons.
       (vi) A certification whether or not the Inspector General 
     has had full and direct access to all information relevant to 
     the performance of the functions of the Inspector General.
       (vii) A description of the exercise of the subpoena 
     authority under subsection (f)(5) by the Inspector General 
     during the period covered by such report.
       (viii) Such recommendations as the Inspector General 
     considers appropriate for legislation to promote economy and 
     efficiency in the administration of programs and operations 
     undertaken by the Authority, and to detect and eliminate 
     fraud and abuse in such programs and operations.
       (C) Not later than the 30 days after the date of receipt of 
     a report under subparagraph (A), the Director shall transmit 
     the report to the congressional intelligence committees 
     together with any comments the Director considers 
     appropriate.
       (2)(A) The Inspector General shall report immediately to 
     the Director whenever the Inspector General becomes aware of 
     particularly serious or flagrant problems, abuses, or 
     deficiencies relating to the administration of programs or 
     operations of the Authority, a relationship between the 
     elements of the intelligence community within the National 
     Intelligence Program, or a relationship between an element of 
     the intelligence community within the National Intelligence 
     Program and another element of the intelligence community.
       (B) The Director shall transmit to the congressional 
     intelligence committees each report under subparagraph (A) 
     within seven calendar days of receipt of such report, 
     together with such comments as the Director considers 
     appropriate.
       (3) In the event that--
       (A) the Inspector General is unable to resolve any 
     differences with the Director affecting the execution of the 
     duties or responsibilities of the Inspector General;
       (B) an investigation, inspection, or audit carried out by 
     the Inspector General should focus on any current or former 
     Authority official who holds or held a position in the 
     Authority that is subject to appointment by the President, by 
     and with the advice and consent of the Senate, including such 
     a position held on an acting basis;
       (C) a matter requires a report by the Inspector General to 
     the Department of Justice on possible criminal conduct by a 
     current or former official described in subparagraph (B);
       (D) the Inspector General receives notice from the 
     Department of Justice declining or approving prosecution of 
     possible criminal conduct of any current or former official 
     described in subparagraph (B); or
       (E) the Inspector General, after exhausting all possible 
     alternatives, is unable to obtain significant documentary 
     information in the course of an investigation, inspection, or 
     audit,

     the Inspector General shall immediately notify and submit a 
     report on such matter to the congressional intelligence 
     committees.
       (4) Pursuant to title V of the National Security Act of 
     1947 (50 U.S.C. 413 et seq.), the Director shall submit to 
     the congressional intelligence committees any report or 
     findings and recommendations of an investigation, inspection, 
     or audit conducted by the office which has been requested by 
     the Chairman or Ranking Minority Member of either committee.
       (5)(A) An employee of the Authority, an employee of an 
     entity other than the Authority who is assigned or detailed 
     to the Authority, or an employee of a contractor to the 
     Authority who intends to report to Congress a complaint or 
     information with respect to an urgent concern may report such 
     complaint or information to the Inspector General.
       (B) Not later than the end of the 14-calendar day period 
     beginning on the date of receipt from an employee of a 
     complaint or information under subparagraph (A), the 
     Inspector General shall determine whether the complaint or 
     information appears credible. Upon making such a 
     determination, the Inspector General shall transmit to the 
     Director a notice of that determination, together with the 
     complaint or information.
       (C) Upon receipt of a transmittal from the Inspector 
     General under subparagraph (B), the Director shall, within 
     seven calendar days of such receipt, forward such transmittal 
     to the congressional intelligence committees, together with 
     any comments the Director considers appropriate.
       (D)(i) If the Inspector General does not find credible 
     under subparagraph (B) a complaint or information submitted 
     under subparagraph (A), or does not transmit the complaint or 
     information to the Director in accurate form under 
     subparagraph (B), the employee (subject to clause (ii)) may 
     submit the complaint or information to Congress by contacting 
     either or both of the congressional intelligence committees 
     directly.
       (ii) An employee may contact the intelligence committees 
     directly as described in clause (i) only if the employee--
       (I) before making such a contact, furnishes to the 
     Director, through the Inspector General, a statement of the 
     employee's complaint or information and notice of the 
     employee's intent to contact the congressional intelligence 
     committees directly; and
       (II) obtains and follows from the Director, through the 
     Inspector General, direction on how to contact the 
     intelligence committees in accordance with appropriate 
     security practices.
       (iii) A member or employee of one of the congressional 
     intelligence committees who receives a complaint or 
     information under clause (i) does so in that member or 
     employee's official capacity as a member or employee of such 
     committee.
       (E) The Inspector General shall notify an employee who 
     reports a complaint or information to the Inspector General 
     under this paragraph of each action taken under this 
     paragraph with respect to the complaint or information. Such 
     notice shall be provided not later than three days after any 
     such action is taken.
       (F) An action taken by the Director or the Inspector 
     General under this paragraph shall not be subject to judicial 
     review.
       (G) In this paragraph, the term ``urgent concern'' means 
     any of the following:
       (i) A serious or flagrant problem, abuse, violation of law 
     or Executive order, or deficiency relating to the funding, 
     administration, or operations of an intelligence activity 
     involving classified information, but does not include 
     differences of opinions concerning public policy matters.
       (ii) A false statement to Congress, or a willful 
     withholding from Congress, on an issue of material fact 
     relating to the funding, administration, or operation of an 
     intelligence activity.
       (iii) An action, including a personnel action described in 
     section 2302(a)(2)(A) of title 5, United States Code, 
     constituting reprisal or threat of reprisal prohibited under 
     subsection (f)(3)(B) of this section in response to an 
     employee's reporting an urgent concern in accordance with 
     this paragraph.
       (H) In support of this paragraph, Congress makes the 
     findings set forth in paragraphs (1) through (6) of section 
     701(b) of the Intelligence Community Whistleblower Protection 
     Act of 1998 (title VII of Public Law 105-272; 5 U.S.C. App. 
     8H note).
       (6) In accordance with section 535 of title 28, United 
     States Code, the Inspector General shall report to the 
     Attorney General any information, allegation, or complaint 
     received by the Inspector General relating to violations of 
     Federal criminal law that involve a program or operation of 
     the Authority, consistent with such guidelines as may be 
     issued by the Attorney General pursuant to subsection (b)(2) 
     of such section. A copy of each such report shall be 
     furnished to the Director.
       (i) Separate Budget Account.--The National Intelligence 
     Director shall, in accordance with procedures to be issued by 
     the Director in consultation with the congressional 
     intelligence committees, include in the National Intelligence 
     Program budget a separate account for the Office of Inspector 
     General of the National Intelligence Authority.

[[Page H8802]]

     SEC. 142. OMBUDSMAN OF THE NATIONAL INTELLIGENCE AUTHORITY.

       (a) Ombudsman of National Intelligence Authority.--There is 
     within the National Intelligence Authority an Ombudsman of 
     the National Intelligence Authority who shall be appointed by 
     the National Intelligence Director.
       (b) Duties.--The Ombudsman of the National Intelligence 
     Authority shall--
       (1) counsel, arbitrate, or offer recommendations on, and 
     have the authority to initiate inquiries into, real or 
     perceived problems of politicization, biased reporting, or 
     lack of objective analysis within the National Intelligence 
     Authority, or any element of the intelligence community 
     within the National Intelligence Program, or regarding any 
     analysis of national intelligence by any element of the 
     intelligence community;
       (2) monitor the effectiveness of measures taken to deal 
     with real or perceived politicization, biased reporting, or 
     lack of objective analysis within the Authority, or any 
     element of the intelligence community within the National 
     Intelligence Program, or regarding any analysis of national 
     intelligence by any element of the intelligence community; 
     and
       (3) conduct reviews of the analytic product or products of 
     the Authority, or any element of the intelligence community 
     within the National Intelligence Program, or of any analysis 
     of national intelligence by any element of the intelligence 
     community, with such reviews to be conducted so as to ensure 
     that analysis is timely, objective, independent of political 
     considerations, and based upon all sources available to the 
     intelligence community.
       (c) Analytic Review Unit.--(1) There is within the Office 
     of the Ombudsman of the National Intelligence Authority an 
     Analytic Review Unit.
       (2) The Analytic Review Unit shall assist the Ombudsman of 
     the National Intelligence Authority in performing the duties 
     and responsibilities of the Ombudsman set forth in subsection 
     (b)(3).
       (3) The Ombudsman shall provide the Analytic Review Unit a 
     staff who possess expertise in intelligence analysis that is 
     appropriate for the function of the Unit.
       (4) In assisting the Ombudsman, the Analytic Review Unit 
     shall, subject to the direction and control of the Ombudsman, 
     conduct detailed evaluations of intelligence analysis by the 
     following:
       (A) The National Intelligence Council.
       (B) The elements of the intelligence community within the 
     National Intelligence Program.
       (C) To the extent involving the analysis of national 
     intelligence, other elements of the intelligence community.
       (D) The divisions, offices, programs, officers, and 
     employees of the elements specified in subparagraphs (B) and 
     (C).
       (5) The results of the evaluations under paragraph (4) 
     shall be provided to the congressional intelligence 
     committees and, upon request, to appropriate heads of other 
     departments, agencies, and elements of the executive branch.
       (d) Access to Information.--In order to carry out the 
     duties specified in subsection (c), the Ombudsman of the 
     National Intelligence Authority shall, unless otherwise 
     directed by the President, have access to all analytic 
     products, field reports, and raw intelligence of any element 
     of the intelligence community, and to any reports or other 
     material of an Inspector General, that might be pertinent to 
     a matter under consideration by the Ombudsman.
       (e) Annual Reports.--The Ombudsman of the National 
     Intelligence Authority shall submit to the National 
     Intelligence Director and the congressional intelligence 
     committees on an annual basis a report that includes--
       (1) the assessment of the Ombudsman of the current level of 
     politicization, biased reporting, or lack of objective 
     analysis within the National Intelligence Authority, or any 
     element of the intelligence community within the National 
     Intelligence Program, or regarding any analysis of national 
     intelligence by any element of the intelligence community;
       (2) such recommendations for remedial measures as the 
     Ombudsman considers appropriate; and
       (3) an assessment of the effectiveness of remedial measures 
     previously taken within the intelligence community on matters 
     addressed by the Ombudsman.
       (f) Referral of Certain Matters for Investigation.--In 
     addition to carrying out activities under this section, the 
     Ombudsman of the National Intelligence Authority may refer 
     serious cases of misconduct related to politicization of 
     intelligence information, biased reporting, or lack of 
     objective analysis within the intelligence community to the 
     Inspector General of the National Intelligence Authority for 
     investigation.

     SEC. 143. NATIONAL COUNTERTERRORISM CENTER.

       (a) National Counterterrorism Center.--There is within the 
     National Intelligence Authority a National Counterterrorism 
     Center.
       (b) Director of National Counterterrorism Center.--(1) 
     There is a Director of the National Counterterrorism Center, 
     who shall be the head of the National Counterterrorism 
     Center, and who shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (2) Any individual nominated for appointment as the 
     Director of the National Counterterrorism Center shall have 
     significant expertise in matters relating to the national 
     security of the United States and matters relating to 
     terrorism that threatens the national security of the United 
     States.
       (3) The individual serving as the Director of the National 
     Counterterrorism Center may not, while so serving, serve in 
     any capacity in any other element of the intelligence 
     community, except to the extent that the individual serving 
     as Director of the National Counterterrorism Center is doing 
     so in an acting capacity.
       (c) Supervision.--(1) The Director of the National 
     Counterterrorism Center shall report to the National 
     Intelligence Director on--
       (A) the budget and programs of the National 
     Counterterrorism Center; and
       (B) the activities of the Directorate of Intelligence of 
     the National Counterterrorism Center under subsection (g).
       (2) The Director of the National Counterterrorism Center 
     shall report to the President and the National Intelligence 
     Director on the planning and progress of joint 
     counterterrorism operations.
       (d) Primary Missions.--The primary missions of the National 
     Counterterrorism Center shall be as follows:
       (1) To develop and unify strategy for the civilian and 
     military counterterrorism efforts of the United States 
     Government.
       (2) To integrate counterterrorism intelligence activities 
     of the United States Government, both inside and outside the 
     United States.
       (3) To develop interagency counterterrorism plans, which 
     plans shall--
       (A) involve more than one department, agency, or element of 
     the executive branch (unless otherwise directed by the 
     President); and
       (B) include the mission, objectives to be achieved, courses 
     of action, parameters for such courses of action, 
     coordination of agency operational activities, 
     recommendations for operational plans, and assignment of 
     departmental or agency responsibilities.
       (4) To ensure that the collection of counterterrorism 
     intelligence, and the conduct of counterterrorism operations, 
     by the United States Government are informed by the analysis 
     of all-source intelligence.
       (e) Duties and Responsibilities of Director of National 
     Counterterrorism Center.--Notwithstanding any other provision 
     of law, at the direction of the President, the National 
     Security Council, and the National Intelligence Director, the 
     Director of the National Counterterrorism Center shall--
       (1) serve as the principal adviser to the President and the 
     National Intelligence Director on joint operations relating 
     to counterterrorism;
       (2) provide unified strategic direction for the civilian 
     and military counterterrorism efforts of the United States 
     Government and for the effective integration and 
     deconfliction of counterterrorism intelligence and operations 
     across agency boundaries, both inside and outside the United 
     States;
       (3) advise the President and 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 and 
     the National Security Council;
       (4) in accordance with subsection (f), concur in, or advise 
     the President on, the selections of personnel to head the 
     operating entities of the United States Government with 
     principal missions relating to counterterrorism; and
       (5) perform such other duties as the National Intelligence 
     Director may prescribe or are prescribed by law.
       (f) Role of Director of National Counterterrorism Center in 
     Certain Appointments.--(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 Director of the National 
     Counterterrorism Center before appointing an individual to 
     fill the vacancy or recommending to the President an 
     individual for nomination to fill the vacancy. If the 
     Director does not concur in the recommendation, the head of 
     the department or agency concerned may fill the vacancy or 
     make the recommendation to the President (as the case may be) 
     without the concurrence of the Director, but shall notify the 
     President that the Director does not concur in the 
     appointment or recommendation (as the case may be).
       (2) Paragraph (1) applies to the following positions:
       (A) The Director of the Central Intelligence Agency's 
     Counterterrorist Center.
       (B) The Assistant Director of the Federal Bureau of 
     Investigation in charge of the Counterterrorism Division.
       (C) The Coordinator for Counterterrorism of the Department 
     of State.
       (D) The head of such other operating entities of the United 
     States Government having principal missions relating to 
     counterterrorism as the President may designate for purposes 
     of this subsection.
       (3) The President shall notify Congress of the designation 
     of an operating entity of the United States Government under 
     paragraph (2)(D) not later than 30 days after the date of 
     such designation.
       (g) Directorate of Intelligence.--(1) The Director of the 
     National Counterterrorism Center shall establish and maintain 
     within the National Counterterrorism Center a Directorate of 
     Intelligence.

[[Page H8803]]

       (2) The Directorate shall utilize the capabilities of the 
     Terrorist Threat Integration Center (TTIC) transferred to the 
     Directorate by section 323 and such other capabilities as the 
     Director of the National Counterterrorism Center considers 
     appropriate.
       (3) The Directorate shall have primary responsibility 
     within the United States Government for analysis of terrorism 
     and terrorist organizations from all sources of intelligence, 
     whether collected inside or outside the United States.
       (4) The Directorate shall--
       (A) be the principal repository within the United States 
     Government for all-source information on suspected 
     terrorists, their organizations, and their capabilities;
       (B) propose intelligence collection requirements for action 
     by elements of the intelligence community inside and outside 
     the United States;
       (C) have primary responsibility within the United States 
     Government for net assessments and warnings about terrorist 
     threats, which assessments and warnings shall be based on a 
     comparison of terrorist intentions and capabilities with 
     assessed national vulnerabilities and countermeasures; and
       (D) perform such other duties and functions as the Director 
     of the National Counterterrorism Center may prescribe.
       (h) Directorate of Planning.--(1) The Director of the 
     National Counterterrorism Center shall establish and maintain 
     within the National Counterterrorism Center a Directorate of 
     Planning.
       (2) The Directorate shall have primary responsibility for 
     developing interagency counterterrorism plans, as described 
     in subsection (d)(3).
       (3) The Directorate shall--
       (A) provide guidance, and develop strategy and interagency 
     plans, to counter terrorist activities based on policy 
     objectives and priorities established by the National 
     Security Council;
       (B) develop interagency plans under subparagraph (A) 
     utilizing input from personnel in other departments, 
     agencies, and elements of the United States Government who 
     have expertise in the priorities, functions, assets, 
     programs, capabilities, and operations of such departments, 
     agencies, and elements with respect to counterterrorism;
       (C) assign responsibilities for counterterrorism operations 
     to the departments and agencies of the United States 
     Government (including the Department of Defense, the Central 
     Intelligence Agency, the Federal Bureau of Investigation, the 
     Department of Homeland Security, and other departments and 
     agencies of the United States Government), consistent with 
     the authorities of such departments and agencies;
       (D) monitor the implementation of operations assigned under 
     subparagraph (C) and update interagency plans for such 
     operations as necessary;
       (E) report to the President and the National Intelligence 
     Director on the compliance of the departments, agencies, and 
     elements of the United States with the plans developed under 
     subparagraph (A); and
       (F) perform such other duties and functions as the Director 
     of the National Counterterrorism Center may prescribe.
       (4) The Directorate may not direct the execution of 
     operations assigned under paragraph (3).
       (i) Staff.--(1) The National Intelligence Director may 
     appoint deputy directors of the National Counterterrorism 
     Center to oversee such portions of the operations of the 
     Center as the National Intelligence Director considers 
     appropriate.
       (2) To assist the Director of the National Counterterrorism 
     Center in fulfilling the duties and responsibilities of the 
     Director of the National Counterterrorism Center under this 
     section, the National Intelligence Director shall employ in 
     the National Counterterrorism Center a professional staff 
     having an expertise in matters relating to such duties and 
     responsibilities.
       (3) In providing for a professional staff for the National 
     Counterterrorism Center under paragraph (2), the National 
     Intelligence Director may establish as positions in the 
     excepted service such positions in the Center as the National 
     Intelligence Director considers appropriate.
       (4) The National Intelligence Director shall ensure that 
     the analytical staff of the National Counterterrorism Center 
     is comprised primarily of experts from elements in the 
     intelligence community and from such other personnel in the 
     United States Government as the National Intelligence 
     Director considers appropriate.
       (5)(A) In order to meet the requirements in paragraph (4), 
     the National Intelligence Director shall, from time to time--
       (i) specify the transfers, assignments, and details of 
     personnel funded within the National Intelligence Program to 
     the National Counterterrorism Center from any other element 
     of the intelligence community that the National Intelligence 
     Director considers appropriate; and
       (ii) in the case of personnel from a department, agency, or 
     element of the United States Government and not funded within 
     the National Intelligence Program, request the transfer, 
     assignment, or detail of such personnel from the department, 
     agency, or other element concerned.
       (B)(i) The head of an element of the intelligence community 
     shall promptly effect any transfer, assignment, or detail of 
     personnel specified by the National Intelligence Director 
     under subparagraph (A)(i).
       (ii) The head of a department, agency, or element of the 
     United States Government receiving a request for transfer, 
     assignment, or detail of personnel under subparagraph (A)(ii) 
     shall, to the extent practicable, approve the request.
       (6) Personnel employed in or assigned or detailed to the 
     National Counterterrorism Center under this subsection shall 
     be under the authority, direction, and control of the 
     Director of the National Counterterrorism Center on all 
     matters for which the Center has been assigned responsibility 
     and for all matters related to the accomplishment of the 
     missions of the Center.
       (7) Performance evaluations of personnel assigned or 
     detailed to the National Counterterrorism Center under this 
     subsection shall be undertaken by the supervisors of such 
     personnel at the Center.
       (8) The supervisors of the staff of the National 
     Counterterrorism Center may, with the approval of the 
     National Intelligence Director, reward the staff of the 
     Center for meritorious performance by the provision of such 
     performance awards as the National Intelligence Director 
     shall prescribe.
       (9) The National Intelligence Director may delegate to the 
     Director of the National Counterterrorism Center any 
     responsibility, power, or authority of the National 
     Intelligence Director under paragraphs (1) through (8).
       (10) The National Intelligence Director shall ensure that 
     the staff of the National Counterterrorism Center has access 
     to all databases maintained by the elements of the 
     intelligence community that are relevant to the duties of the 
     Center.
       (j) Support and Cooperation of Other Agencies.--(1) The 
     elements of the intelligence community and the other 
     departments, agencies, and elements of the United States 
     Government shall support, assist, and cooperate with the 
     National Counterterrorism Center in carrying out its missions 
     under this section.
       (2) The support, assistance, and cooperation of a 
     department, agency, or element of the United States 
     Government under this subsection shall include, but not be 
     limited to--
       (A) the implementation of interagency plans for operations, 
     whether foreign or domestic, that are developed by the 
     National Counterterrorism Center in a manner consistent with 
     the laws and regulations of the United States and consistent 
     with the limitation in subsection (h)(4);
       (B) cooperative work with the Director of the National 
     Counterterrorism Center to ensure that ongoing operations of 
     such department, agency, or element do not conflict with 
     joint operations planned by the Center;
       (C) reports, upon request, to the Director of the National 
     Counterterrorism Center on the progress of such department, 
     agency, or element in implementing responsibilities assigned 
     to such department, agency, or element through joint 
     operations plans; and
       (D) the provision to the analysts of the National 
     Counterterrorism Center electronic access in real time to 
     information and intelligence collected by such department, 
     agency, or element that is relevant to the missions of the 
     Center.
       (3) In the event of a disagreement between the National 
     Intelligence Director and the head of a department, agency, 
     or element of the United States Government on a plan 
     developed or responsibility assigned by the National 
     Counterterrorism Center under this subsection, the National 
     Intelligence Director may either accede to the head of the 
     department, agency, or element concerned or notify the 
     President of the necessity of resolving the disagreement.

     SEC. 144. NATIONAL INTELLIGENCE CENTERS.

       (a) National Intelligence Centers.--(1) The National 
     Intelligence Director may establish within the National 
     Intelligence Authority one or more centers (to be known as 
     ``national intelligence centers'') to address intelligence 
     priorities established by the National Security Council.
       (2) Each national intelligence center established under 
     this section shall be assigned an area of intelligence 
     responsibility.
       (3) National intelligence centers shall be established at 
     the direction of the President, as prescribed by law, or upon 
     the initiative of the National Intelligence Director.
       (b) Establishment of Centers.--(1) In establishing a 
     national intelligence center, the National Intelligence 
     Director shall assign lead responsibility for administrative 
     support for such center to an element of the intelligence 
     community selected by the Director for that purpose.
       (2) The Director shall determine the structure and size of 
     each national intelligence center.
       (3) The Director shall notify Congress of the establishment 
     of each national intelligence center before the date of the 
     establishment of such center.
       (c) Directors of Centers.--(1) Each national intelligence 
     center shall have as its head a Director who shall be 
     appointed by the National Intelligence Director for that 
     purpose.
       (2) The Director of a national intelligence center shall 
     serve as the principal adviser to the National Intelligence 
     Director on intelligence matters with respect to the area of 
     intelligence responsibility assigned to the center.
       (3) In carrying out duties under paragraph (2), the 
     Director of a national intelligence center shall--
       (A) manage the operations of the center;

[[Page H8804]]

       (B) coordinate the provision of administration and support 
     by the element of the intelligence community with lead 
     responsibility for the center under subsection (b)(1);
       (C) submit budget and personnel requests for the center to 
     the National Intelligence Director;
       (D) seek such assistance from other departments, agencies, 
     and elements of the United States Government as is needed to 
     fulfill the mission of the center; and
       (E) advise the National Intelligence Director of the 
     information technology, personnel, and other requirements of 
     the center for the performance of its mission.
       (4) The National Intelligence Director shall ensure that 
     the Director of a national intelligence center has sufficient 
     authority, direction, and control to effectively accomplish 
     the mission of the center.
       (d) Mission of Centers.--Pursuant to the direction of the 
     National Intelligence Director, each national intelligence 
     center shall, in the area of intelligence responsibility 
     assigned to the center by the Director pursuant to 
     intelligence priorities established by the National Security 
     Council--
       (1) have primary responsibility for providing all-source 
     analysis of intelligence based upon foreign intelligence 
     gathered both abroad and domestically;
       (2) have primary responsibility for identifying and 
     proposing to the National Intelligence Director intelligence 
     collection and analysis requirements;
       (3) have primary responsibility for net assessments and 
     warnings;
       (4) ensure that appropriate officials of the United States 
     Government and other appropriate officials have access to a 
     variety of intelligence assessments and analytical views; and
       (5) perform such other duties as the National Intelligence 
     Director shall specify.
       (e) Information Sharing.--(1) The National Intelligence 
     Director shall ensure that the Directors of the national 
     intelligence centers and the other elements of the 
     intelligence community undertake appropriate sharing of 
     intelligence analysis and plans for operations in order to 
     facilitate the activities of the centers.
       (2) In order to facilitate information sharing under 
     paragraph (1), the Directors of the national intelligence 
     centers shall--
       (A) report directly to the National Intelligence Director 
     regarding their activities under this section; and
       (B) coordinate with the Principal Deputy National 
     Intelligence Director regarding such activities.
       (f) Staff.--(1) In providing for a professional staff for a 
     national intelligence center, the National Intelligence 
     Director may establish as positions in the excepted service 
     such positions in the center as the National Intelligence 
     Director considers appropriate.
       (2)(A) The National Intelligence Director shall, from time 
     to time--
       (i) specify the transfers, assignments, and details of 
     personnel funded within the National Intelligence Program to 
     a national intelligence center from any other element of the 
     intelligence community that the National Intelligence 
     Director considers appropriate; and
       (ii) in the case of personnel from a department, agency, or 
     element of the United States Government not funded within the 
     National Intelligence Program, request the transfer, 
     assignment, or detail of such personnel from the department, 
     agency, or other element concerned.
       (B)(i) The head of an element of the intelligence community 
     shall promptly effect any transfer, assignment, or detail of 
     personnel specified by the National Intelligence Director 
     under subparagraph (A)(i).
       (ii) The head of a department, agency, or element of the 
     United States Government receiving a request for transfer, 
     assignment, or detail of personnel under subparagraph (A)(ii) 
     shall, to the extent practicable, approve the request.
       (3) Personnel employed in or assigned or detailed to a 
     national intelligence center under this subsection shall be 
     under the authority, direction, and control of the Director 
     of the center on all matters for which the center has been 
     assigned responsibility and for all matters related to the 
     accomplishment of the mission of the center.
       (4) Performance evaluations of personnel assigned or 
     detailed to a national intelligence center under this 
     subsection shall be undertaken by the supervisors of such 
     personnel at the center.
       (5) The supervisors of the staff of a national center may, 
     with the approval of the National Intelligence Director, 
     reward the staff of the center for meritorious performance by 
     the provision of such performance awards as the National 
     Intelligence Director shall prescribe.
       (6) The National Intelligence Director may delegate to the 
     Director of a national intelligence center any 
     responsibility, power, or authority of the National 
     Intelligence Director under paragraphs (1) through (6).
       (7) The Director of a national intelligence center may 
     recommend to the National Intelligence Director the 
     reassignment to the home element concerned of any personnel 
     previously assigned or detailed to the center from another 
     element of the intelligence community.
       (g) Termination.--(1) The National Intelligence Director 
     may terminate a national intelligence center if the National 
     Intelligence Director determines that the center is no longer 
     required to meet an intelligence priority established by the 
     National Security Council.
       (2) The National Intelligence Director shall notify 
     Congress of any determination made under paragraph (1) before 
     carrying out such determination.

 Subtitle E--Education and Training of Intelligence Community Personnel

     SEC. 151. FRAMEWORK FOR CROSS-DISCIPLINARY EDUCATION AND 
                   TRAINING.

       The National Intelligence Director shall establish an 
     integrated framework that brings together the educational 
     components of the intelligence community in order to promote 
     a more effective and productive intelligence community 
     through cross-disciplinary education and joint training.

     SEC. 152. INTELLIGENCE COMMUNITY SCHOLARSHIP PROGRAM.

       (a) Definitions.--In this section:
       (1) Agency.--The term ``agency'' means each element of the 
     intelligence community as determined by the National 
     Intelligence Director.
       (2) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given 
     that term under section 101 of the Higher Education Act of 
     1965 (20 U.S.C. 1001).
       (3) Program.--The term ``Program'' means the Intelligence 
     Community Scholarship Program established under subsection 
     (b).
       (b) Establishment.--
       (1) In general.--The National Intelligence Director, in 
     consultation with the head of each agency, shall establish a 
     scholarship program (to be known as the ``Intelligence 
     Community Scholarship Program'') to award scholarships to 
     individuals that is designed to recruit and prepare students 
     for civilian careers in the intelligence community to meet 
     the critical needs of the intelligence community agencies.
       (2) Selection of recipients.--
       (A) Merit and agency needs.--Individuals shall be selected 
     to receive scholarships under this section through a 
     competitive process primarily on the basis of academic merit 
     and the needs of the agency.
       (B) Demonstrated commitment.--Individuals selected under 
     this section shall have a demonstrated commitment to the 
     field of study for which the scholarship is awarded.
       (3) Contractual agreements.--To carry out the Program the 
     head of each agency shall enter into contractual agreements 
     with individuals selected under paragraph (2) under which the 
     individuals agree to serve as full-time employees of the 
     agency, for the period described in subsection (h)(1), in 
     positions needed by the agency and for which the individuals 
     are qualified, in exchange for receiving a scholarship.
       (c) Eligibility.--In order to be eligible to participate in 
     the Program, an individual shall--
       (1) be enrolled or accepted for enrollment as a full-time 
     student at an institution of higher education and be pursuing 
     or intend to pursue undergraduate or graduate education in an 
     academic field or discipline described in the list made 
     available under subsection (e);
       (2) be a United States citizen; and
       (3) at the time of the initial scholarship award, not be an 
     employee (as defined under section 2105 of title 5, United 
     States Code).
       (d) Application.-- An individual seeking a scholarship 
     under this section shall submit an application to the 
     National Intelligence Director at such time, in such manner, 
     and containing such information, agreements, or assurances as 
     the Director may require.
       (e) Programs and Fields of Study.--The National 
     Intelligence Director shall--
       (1) make publicly available a list of academic programs and 
     fields of study for which scholarships under the Program may 
     be used; and
       (2) update the list as necessary.
       (f) Scholarships.--
       (1) In general.--The National Intelligence Director may 
     provide a scholarship under the Program for an academic year 
     if the individual applying for the scholarship has submitted 
     to the Director, as part of the application required under 
     subsection (d), a proposed academic program leading to a 
     degree in a program or field of study on the list made 
     available under subsection (e).
       (2) Limitation on years.--An individual may not receive a 
     scholarship under this section for more than 4 academic 
     years, unless the National Intelligence Director grants a 
     waiver.
       (3) Student responsibilities.--Scholarship recipients shall 
     maintain satisfactory academic progress.
       (4) Amount.--The dollar amount of a scholarship under this 
     section for an academic year shall be determined under 
     regulations issued by the National Intelligence Director, but 
     shall in no case exceed the cost of tuition, fees, and other 
     authorized expenses as established by the Director.
       (5) Use of scholarships.--A scholarship provided under this 
     section may be expended for tuition, fees, and other 
     authorized expenses as established by the National 
     Intelligence Director by regulation.
       (6) Payment to institution of higher education.--The 
     National Intelligence Director may enter into a contractual 
     agreement with an institution of higher education under which 
     the amounts provided for a scholarship under this section for 
     tuition, fees, and other authorized expenses are paid 
     directly to the institution with respect to which the 
     scholarship is provided.
       (g) Special Consideration for Current Employees.--

[[Page H8805]]

       (1) Set aside of scholarships.--Notwithstanding paragraphs 
     (1) and (3) of subsection (c), 10 percent of the scholarships 
     awarded under this section shall be set aside for individuals 
     who are employees of agencies on the date of enactment of 
     this section to enhance the education of such employees in 
     areas of critical needs of agencies.
       (2) Full- or part-time education.--Employees who are 
     awarded scholarships under paragraph (1) shall be permitted 
     to pursue undergraduate or graduate education under the 
     scholarship on a full-time or part-time basis.
       (h) Employee Service.--
       (1) Period of service.--Except as provided in subsection 
     (j)(2), the period of service for which an individual shall 
     be obligated to serve as an employee of the agency is 24 
     months for each academic year for which a scholarship under 
     this section is provided. Under no circumstances shall the 
     total period of obligated service be more than 8 years.
       (2) Beginning of service.--
       (A) In general.--Except as provided in subparagraph (B), 
     obligated service under paragraph (1) shall begin not later 
     than 60 days after the individual obtains the educational 
     degree for which the scholarship was provided.
       (B) Deferral.--In accordance with regulations established 
     by the National Intelligence Director, the Director or 
     designee may defer the obligation of an individual to provide 
     a period of service under paragraph (1) if the Director or 
     designee determines that such a deferral is appropriate.
       (i) Repayment.--
       (1) In general.--Scholarship recipients who fail to 
     maintain a high level of academic standing, as defined by the 
     National Intelligence Director, who are dismissed from their 
     educational institutions for disciplinary reasons, or who 
     voluntarily terminate academic training before graduation 
     from the educational program for which the scholarship was 
     awarded, shall be in breach of their contractual agreement 
     and, in lieu of any service obligation arising under such 
     agreement, shall be liable to the United States for repayment 
     within 1 year after the date of default of all scholarship 
     funds paid to them and to the institution of higher education 
     on their behalf under the agreement, except as provided in 
     subsection (j)(2). The repayment period may be extended by 
     the Director when determined to be necessary, as established 
     by regulation.
       (2) Liability.--Scholarship recipients who, for any reason, 
     fail to begin or complete their service obligation after 
     completion of academic training, or fail to comply with the 
     terms and conditions of deferment established by the National 
     Intelligence Director under subsection (h)(2)(B), shall be in 
     breach of their contractual agreement. When recipients breach 
     their agreements for the reasons stated in the preceding 
     sentence, the recipient shall be liable to the United States 
     for an amount equal to--
       (A) the total amount of scholarships received by such 
     individual under this section; and
       (B) the interest on the amounts of such awards which would 
     be payable if at the time the awards were received they were 
     loans bearing interest at the maximum legal prevailing rate, 
     as determined by the Treasurer of the United States, 
     multiplied by 3.
       (j) Cancellation, Waiver, or Suspension of Obligation.--
       (1) Cancellation.--Any obligation of an individual incurred 
     under the Program (or a contractual agreement thereunder) for 
     service or payment shall be canceled upon the death of the 
     individual.
       (2) Waiver or suspension.--The National Intelligence 
     Director shall prescribe regulations to provide for the 
     partial or total waiver or suspension of any obligation of 
     service or payment incurred by an individual under the 
     Program (or a contractual agreement thereunder) whenever 
     compliance by the individual is impossible or would involve 
     extreme hardship to the individual, or if enforcement of such 
     obligation with respect to the individual would be contrary 
     to the best interests of the Government.
       (k) Regulations.--The National Intelligence Director shall 
     prescribe regulations necessary to carry out this section.

 Subtitle F--Additional Authorities of National Intelligence Authority

     SEC. 161. USE OF APPROPRIATED FUNDS.

       (a) Disposal of Property.--(1) If specifically authorized 
     to dispose of real property of the National Intelligence 
     Authority under any law enacted after the date of the 
     enactment of this Act, the National Intelligence Director 
     shall, subject to paragraph (2), exercise such authority in 
     strict compliance with subchapter IV of chapter 5 of title 
     40, United States Code.
       (2) The Director shall deposit the proceeds of any disposal 
     of property of the National Intelligence Authority into the 
     miscellaneous receipts of the Treasury in accordance with 
     section 3302(b) of title 31, United States Code.
       (b) Gifts.--Gifts or donations of services or property of 
     or for the National Intelligence Authority may not be 
     accepted, used, or disposed of unless specifically permitted 
     in advance in an appropriations Act and only under the 
     conditions and for the purposes specified in such 
     appropriations Act.

     SEC. 162. ACQUISITION AND FISCAL AUTHORITIES.

       (a) Acquisitions of Major Systems.--(1) For each 
     intelligence program for the acquisition of a major system, 
     the National Intelligence Director shall--
       (A) require the development and implementation of a program 
     management plan that includes cost, schedule, and performance 
     goals and program milestone criteria;
       (B) subject to paragraph (4), serve as the exclusive 
     milestone decision authority; and
       (C) periodically--
       (i) review and assess the progress made toward the 
     achievement of the goals and milestones established in such 
     plan; and
       (ii) submit to Congress a report on the results of such 
     review and assessment.
       (2) The National Intelligence Director shall prescribe 
     guidance for the development and implementation of program 
     management plans under this subsection. In prescribing such 
     guidance, the Director shall review Department of Defense 
     guidance on program management plans for Department of 
     Defense programs for the acquisition of major systems and, to 
     the extent feasible, incorporate the principles of the 
     Department of Defense guidance into the Director's guidance 
     under this subsection.
       (3) Nothing in this subsection may be construed to limit 
     the authority of the National Intelligence Director to 
     delegate to any other official any authority to perform the 
     responsibilities of the Director under this subsection.
       (4)(A) The authority conferred by paragraph (1)(B) shall 
     not apply to Department of Defense programs until the 
     National Intelligence Director, in consultation with the 
     Secretary of Defense, determines that the National 
     Intelligence Authority has the personnel and capability to 
     fully and effectively carry out such authority.
       (B) The National Intelligence Director may assign any 
     authority under this subsection to the Secretary of Defense. 
     The assignment of such authority shall be made pursuant to a 
     memorandum of understanding between the Director and the 
     Secretary.
       (5) In this subsection:
       (A) The term ``intelligence program'', with respect to the 
     acquisition of a major system, means a program that--
       (i) is carried out to acquire such major system for an 
     element of the intelligence community; and
       (ii) is funded in whole out of amounts available for the 
     National Intelligence Program.
       (B) The term ``major system'' has the meaning given such 
     term in section 4(9) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 403(9)).
       (b) Availability of Funds.--Notwithstanding any other 
     provision of law (other than the provisions of this Act), 
     sums appropriated or otherwise made available to the National 
     Intelligence Authority may be expended for purposes necessary 
     to carry out its functions, including any function performed 
     by the National Intelligence Authority that is described in 
     section 8(a) of the Central Intelligence Agency Act of 1949 
     (50 U.S.C. 403j(a)).
       (c) Relationship of Director's Authority to Other Laws on 
     Acquisition and Management of Property and Services.--Section 
     113(e) of title 40, United States Code, is amended--
       (A) by striking ``or'' at the end of paragraph (18);
       (B) by striking the period at the end of paragraph (19) and 
     inserting ``; or''; and
       (C) by adding at the end the following new paragraph:
       ``(20) the National Intelligence Director.''.
       (d) National Intelligence Director Report on Enhancement of 
     NSA and NGIA Acquisition Authorities.--Not later than one 
     year after the date of the enactment of this Act, the 
     National Intelligence Director shall--
       (1) review--
       (A) the acquisition authority of the Director of the 
     National Security Agency; and
       (B) the acquisition authority of the Director of the 
     National Geospatial-Intelligence Agency; and
       (2) submit to the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform of the House of 
     Representatives a report setting forth any recommended 
     enhancements of the acquisition authorities of the Director 
     of the National Security Agency and the Director of the 
     National Geospatial-Intelligence Agency that the National 
     Intelligence Director considers necessary.
       (e) Comptroller General Report on Acquisition Policies and 
     Procedures.--Not later than two years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report on the extent to 
     which the policies and procedures adopted for managing the 
     acquisition of major systems for national intelligence 
     purposes, as identified by the National Intelligence 
     Director, are likely to result in successful cost, schedule, 
     and performance outcomes.

     SEC. 163. PERSONNEL MATTERS.

       (a) In General.--In addition to the authorities provided in 
     section 114, the National Intelligence Director may exercise 
     with respect to the personnel of the National Intelligence 
     Authority 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 Act to the same extent, and subject to the same

[[Page H8806]]

     conditions and limitations, that the Director of the Central 
     Intelligence Agency may exercise such authority with respect 
     to personnel of the Central Intelligence Agency.
       (b) Rights and Protections of Employees and Applicants.--
     Employees and applicants for employment of the National 
     Intelligence Authority shall have the same rights and 
     protections under the Authority 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 Act.

     SEC. 164. ETHICS MATTERS.

       (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 National Intelligence Authority; 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 National 
     Intelligence Authority, 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 National Intelligence Authority,'' 
     before ``the Central Intelligence Agency''.

        TITLE II--OTHER IMPROVEMENTS OF INTELLIGENCE ACTIVITIES

          Subtitle A--Improvements of Intelligence Activities

     SEC. 201. AVAILABILITY TO PUBLIC OF CERTAIN INTELLIGENCE 
                   FUNDING INFORMATION.

       (a) Amounts Requested Each Fiscal Year.--The President 
     shall disclose to the public for each fiscal year after 
     fiscal year 2005 the aggregate amount of appropriations 
     requested in the budget of the President for such fiscal year 
     for the National Intelligence Program.
       (b) Amounts Authorized and Appropriated Each Fiscal Year.--
     Congress shall disclose to the public for each fiscal year 
     after fiscal year 2005 the aggregate amount of funds 
     authorized to be appropriated, and the aggregate amount of 
     funds appropriated, by Congress for such fiscal year for the 
     National Intelligence Program.
       (c) Study of Disclosure of Additional Information.--(1) The 
     National Intelligence Director shall conduct a study to 
     assess the advisability of disclosing to the public amounts 
     as follows:
       (A) The aggregate amount of appropriations requested in the 
     budget of the President for each fiscal year for each element 
     of the intelligence community.
       (B) The aggregate amount of funds authorized to be 
     appropriated, and the aggregate amount of funds appropriated, 
     by Congress for each fiscal year for each element of the 
     intelligence community.
       (2) The study under paragraph (1) shall--
       (A) address whether or not the disclosure to the public of 
     the information referred to in that paragraph would harm the 
     national security of the United States; and
       (B) take into specific account concerns relating to the 
     disclosure of such information for each element of the 
     intelligence community.
       (3) Not later than 180 days after the effective date of 
     this section, the Director shall submit to Congress a report 
     on the study under paragraph (1).

     SEC. 202. MERGER OF HOMELAND SECURITY COUNCIL INTO NATIONAL 
                   SECURITY COUNCIL.

       (a) Merger of Homeland Security Council Into National 
     Security Council.--Section 101 of the National Security Act 
     of 1947 (50 U.S.C. 402) is amended--
       (1) in the fourth undesignated paragraph of subsection (a), 
     by striking clauses (5) and (6) and inserting the following 
     new clauses:
       ``(5) the Attorney General;
       ``(6) the Secretary of Homeland Security;''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following new paragraphs:
       ``(3) assess the objectives, commitments, and risks of the 
     United States in the interests of homeland security and make 
     recommendations to the President based on such assessments;
       ``(4) oversee and review the homeland security policies of 
     the Federal Government and make recommendations to the 
     President based on such oversight and review; and
       ``(5) perform such other functions as the President may 
     direct.''.
       (c) Repeal of Superseded Authority.--(1) Title IX of the 
     Homeland Security Act of 2002 (6 U.S.C. 491 et seq.) is 
     repealed.
       (2) The table of contents for that Act is amended by 
     striking the items relating to title IX.

     SEC. 203. JOINT INTELLIGENCE COMMUNITY COUNCIL.

       Title I of the National Security Act of 1947 (50 U.S.C. 401 
     et seq.) is amended by inserting after section 101 the 
     following new section:


                 ``joint intelligence community council

       ``Sec. 101A. (a) Joint Intelligence Community Council.--
     There is a Joint Intelligence Community Council.
       ``(b) 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 officers of the United States Government 
     as the President may designate from time to time.
       ``(c) Functions.--The Joint Intelligence Community Council 
     shall assist the National Intelligence Director to in 
     developing and implementing a joint, unified national 
     intelligence effort to protect national security by--
       ``(1) advising the Director on establishing requirements, 
     developing budgets, financial management, and monitoring and 
     evaluating the performance of the intelligence community, and 
     on such other matters as the Director may request; and
       ``(2) ensuring the timely execution of programs, policies, 
     and directives established or developed by the Director.
       ``(d) Meetings.--The Joint Intelligence Community Council 
     shall meet upon the request of the National Intelligence 
     Director.''.

     SEC. 204. IMPROVEMENT OF INTELLIGENCE CAPABILITIES OF THE 
                   FEDERAL BUREAU OF INVESTIGATION.

       (a) Findings.--Congress makes the following findings:
       (1) The National Commission on Terrorist Attacks Upon the 
     United States in its final report stated that, under Director 
     Robert Mueller, the Federal Bureau of Investigation has made 
     significant progress in improving its intelligence 
     capabilities.
       (2) In the report, the members of the Commission also urged 
     that the Federal Bureau of Investigation fully 
     institutionalize the shift of the Bureau to a preventive 
     counterterrorism posture.
       (b) Improvement of Intelligence Capabilities.--The Director 
     of the Federal Bureau of Investigation shall continue efforts 
     to improve the intelligence capabilities of the Federal 
     Bureau of Investigation and to develop and maintain within 
     the Bureau a national intelligence workforce.
       (c) National Intelligence Workforce.--(1) In developing and 
     maintaining a national intelligence workforce under 
     subsection (b), the Director of the Federal Bureau of 
     Investigation shall, subject to the direction and control of 
     the President, develop and maintain a specialized and 
     integrated national intelligence workforce consisting of 
     agents, analysts, linguists, and surveillance specialists who 
     are recruited, trained, and rewarded in a manner which 
     ensures the existence within the Federal Bureau of 
     Investigation an institutional culture with substantial 
     expertise in, and commitment to, the intelligence mission of 
     the Bureau.
       (2) Each agent employed by the Bureau after the date of the 
     enactment of this Act shall receive basic training in both 
     criminal justice matters and national intelligence matters.
       (3) Each agent employed by the Bureau after the date of the 
     enactment of this Act shall, to the maximum extent 
     practicable, be given the opportunity to undergo, during such 
     agent's early service with the Bureau, meaningful assignments 
     in criminal justice matters and in national intelligence 
     matters.
       (4) The Director shall--
       (A) establish career positions in national intelligence 
     matters for agents and analysts of the Bureau; and
       (B) in furtherance of the requirement under subparagraph 
     (A) and to the maximum extent practicable, afford agents and 
     analysts of the Bureau the opportunity to work in the career 
     specialty selected by such agents and analysts over their 
     entire career with the Bureau.
       (5) The Director shall carry out a program to enhance the 
     capacity of the Bureau to recruit and retain individuals with 
     backgrounds in intelligence, international relations, 
     language, technology, and other skills relevant to the 
     intelligence mission of the Bureau.
       (6) The Director shall, to the maximum extent practicable, 
     afford the analysts of the Bureau training and career 
     opportunities commensurate with the training and career 
     opportunities afforded analysts in other elements of the 
     intelligence community.
       (7) Commencing as soon as practicable after the date of the 
     enactment of this Act, each direct supervisor of a Field 
     Intelligence Group, and each Bureau Operational Manager at 
     the Section Chief and Assistant Special Agent in Charge 
     (ASAC) level and above, shall be a certified intelligence 
     officer.
       (8) The Director shall, to the maximum extent practicable, 
     ensure that the successful discharge of advanced training 
     courses, and of one or more assignments to another element of 
     the intelligence community, is a precondition to advancement 
     to higher level intelligence assignments within the Bureau.

[[Page H8807]]

       (d) Field Office Matters.--(1) In improving the 
     intelligence capabilities of the Federal Bureau of 
     Investigation under subsection (b), the Director of the 
     Federal Bureau of Investigation shall ensure that each Field 
     Intelligence Group reports directly to a field office senior 
     manager responsible for intelligence matters.
       (2) The Director shall provide for such expansion of the 
     secure facilities in the field offices of the Bureau as is 
     necessary to ensure the discharge by the field offices of the 
     intelligence mission of the Bureau.
       (3) The Director shall require that each Field Intelligence 
     Group manager ensures the integration of analysts, agents, 
     linguists, and surveillance personnel in the field.
       (e) 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 Federal Bureau of Investigation in order to organize 
     the budget according to the four principal missions of the 
     Bureau as follows:
       (1) Intelligence.
       (2) Counterterrorism and counterintelligence.
       (3) Criminal Enterprises/Federal Crimes.
       (4) Criminal justice services.
       (f) Reports.--(1) Not later than 180 days after the date of 
     the enactment of this Act, 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.
       (2) The Director shall include in each annual program 
     review of the Federal Bureau of Investigation that is 
     submitted to Congress a report on the progress made by each 
     field office of the Bureau during the period covered by such 
     review in addressing Bureau and national program priorities.
       (3) Not later than 180 days after the date of the enactment 
     of this Act, and every 12 months thereafter, the Director 
     shall submit to Congress a report assessing the 
     qualifications, status, and roles of analysts at Bureau 
     headquarters and in the field offices of the Bureau.
       (4) Not later than 180 days after the date of the enactment 
     of this Act, and every 12 months thereafter, the Director 
     shall submit to Congress a report on the progress of the 
     Bureau in implementing information-sharing principles.

     SEC. 205. FEDERAL BUREAU OF INVESTIGATION INTELLIGENCE CAREER 
                   SERVICE.

       (a) Short Title.--This section may be cited as the 
     ``Federal Bureau of Investigation Intelligence Career Service 
     Authorization Act of 2005''.
       (b) Establishment of Federal Bureau of Investigation 
     Intelligence Career Service.--
       (1) In general.--The Director of the Federal Bureau of 
     Investigation, in consultation with the Director of the 
     Office of Personnel Management--
       (A) may establish positions for intelligence analysts, 
     without regard to chapter 51 of title 5, United States Code;
       (B) shall prescribe standards and procedures for 
     establishing and classifying such positions; and
       (C) may fix the rate of basic pay for such positions, 
     without regard to subchapter III of chapter 53 of title 5, 
     United States Code, if the rate of pay is not greater than 
     the rate of basic pay payable for level IV of the Executive 
     Schedule.
       (2) Levels of performance.--Any performance management 
     system established for intelligence analysts shall have at 
     least 1 level of performance above a retention standard.
       (c) Reporting Requirement.--Not less than 60 days before 
     the date of the implementation of authorities authorized 
     under this section, the Director of the Federal Bureau of 
     Investigation shall submit an operating plan describing the 
     Director's intended use of the authorities under this section 
     to--
       (1) the Committees on Appropriations of the Senate and the 
     House of Representatives;
       (2) the Committee on Governmental Affairs of the Senate;
       (3) the Committee on Government Reform of the House of 
     Representatives;
       (4) the congressional intelligence committees; and
       (5) the Committees on the Judiciary of the Senate and the 
     House of Representatives.
       (d) Annual Report.--Not later than December 31, 2005, and 
     annually thereafter for 4 years, the Director of the Federal 
     Bureau of Investigation shall submit an annual report of the 
     use of the permanent authorities provided under this section 
     during the preceding fiscal year to--
       (1) the Committees on Appropriations of the Senate and the 
     House of Representatives;
       (2) the Committee on Governmental Affairs of the Senate;
       (3) the Committee on Government Reform of the House of 
     Representatives;
       (4) the congressional intelligence committees; and
       (5) the Committees on the Judiciary of the Senate and the 
     House of Representatives.

     SEC. 206. INFORMATION SHARING.

       (a) Definitions.--In this section:
       (1) Advisory board.--The term ``Advisory Board'' means the 
     Advisory Board on Information Sharing established under 
     subsection (i).
       (2) Executive council.--The term ``Executive Council'' 
     means the Executive Council on Information Sharing 
     established under subsection (h).
       (3) Homeland security information.--The term ``homeland 
     security information'' means all information, whether 
     collected, produced, or distributed by intelligence, law 
     enforcement, military, homeland security, or other activities 
     relating to--
       (A) the existence, organization, capabilities, plans, 
     intentions, vulnerabilities, means of finance or material 
     support, or activities of foreign or international terrorist 
     groups or individuals, or of domestic groups or individuals 
     involved in transnational terrorism;
       (B) threats posed by such groups or individuals to the 
     United States, United States persons, or United States 
     interests, or to those of other nations;
       (C) communications of or by such groups or individuals; or
       (D) groups or individuals reasonably believed to be 
     assisting or associated with such groups or individuals.
       (4) Network.--The term ``Network'' means the Information 
     Sharing Network described under subsection (c).
       (b) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks upon the United States, 
     Congress makes the following findings:
       (1) The effective use of information, from all available 
     sources, is essential to the fight against terror and the 
     protection of our homeland. The biggest impediment to all-
     source analysis, and to a greater likelihood of ``connecting 
     the dots'', is resistance to sharing information.
       (2) The United States Government has access to a vast 
     amount of information, including not only traditional 
     intelligence but also other government databases, such as 
     those containing customs or immigration information. However, 
     the United States Government has a weak system for processing 
     and using the information it has.
       (3) In the period preceding September 11, 2001, there were 
     instances of potentially helpful information that was 
     available but that no person knew to ask for; information 
     that was distributed only in compartmented channels, and 
     information that was requested but could not be shared.
       (4) Current security requirements nurture over-
     classification and excessive compartmentalization of 
     information among agencies. Each agency's incentive structure 
     opposes sharing, with risks, including criminal, civil, and 
     administrative sanctions, but few rewards for sharing 
     information.
       (5) The current system, in which each intelligence agency 
     has its own security practices, requires a demonstrated 
     ``need to know'' before sharing. This approach assumes that 
     it is possible to know, in advance, who will need to use the 
     information. An outgrowth of the cold war, such a system 
     implicitly assumes that the risk of inadvertent disclosure 
     outweighs the benefits of wider sharing. Such assumptions are 
     no longer appropriate. Although counterintelligence concerns 
     are still real, the costs of not sharing information are also 
     substantial. The current ``need-to-know'' culture of 
     information protection needs to be replaced with a ``need-to-
     share'' culture of integration.
       (6) A new approach to the sharing of intelligence and 
     homeland security information is urgently needed. An 
     important conceptual model for a new ``trusted information 
     network'' is the Systemwide Homeland Analysis and Resource 
     Exchange (SHARE) Network proposed by a task force of leading 
     professionals assembled by the Markle Foundation and 
     described in reports issued in October 2002 and December 
     2003.
       (7) No single agency can create a meaningful information 
     sharing system on its own. Alone, each agency can only 
     modernize stovepipes, not replace them. Presidential 
     leadership is required to bring about governmentwide change.
       (c) Information Sharing Network.--
       (1) Establishment.--The President shall establish a trusted 
     information network and secure information sharing 
     environment to promote sharing of intelligence and homeland 
     security information in a manner consistent with national 
     security and the protection of privacy and civil liberties, 
     and based on clearly defined and consistently applied 
     policies and procedures, and valid investigative, analytical 
     or operational requirements.
       (2) Attributes.--The Network shall promote coordination, 
     communication and collaboration of people and information 
     among all relevant Federal departments and agencies, State, 
     tribal, and local authorities, and relevant private sector 
     entities, including owners and operators of critical 
     infrastructure, by using policy guidelines and technologies 
     that support--
       (A) a decentralized, distributed, and coordinated 
     environment that connects existing systems where appropriate 
     and allows users to share information among agencies, between 
     levels of government, and, as appropriate, with the private 
     sector;
       (B) the sharing of information in a form and manner that 
     facilitates its use in analysis, investigations and 
     operations;
       (C) building upon existing systems capabilities currently 
     in use across the Government;
       (D) utilizing industry best practices, including minimizing 
     the centralization of data and seeking to use common tools 
     and capabilities whenever possible;
       (E) employing an information access management approach 
     that controls access to data rather than to just networks;
       (F) facilitating the sharing of information at and across 
     all levels of security by using

[[Page H8808]]

     policy guidelines and technologies that support writing 
     information that can be broadly shared;
       (G) providing directory services for locating people and 
     information;
       (H) incorporating protections for individuals' privacy and 
     civil liberties;
       (I) incorporating strong mechanisms for information 
     security and privacy and civil liberties guideline 
     enforcement in order to enhance accountability and facilitate 
     oversight, including--
       (i) multifactor authentication and access control;
       (ii) strong encryption and data protection;
       (iii) immutable audit capabilities;
       (iv) automated policy enforcement;
       (v) perpetual, automated screening for abuses of network 
     and intrusions; and
       (vi) uniform classification and handling procedures;
       (J) compliance with requirements of applicable law and 
     guidance with regard to the planning, design, acquisition, 
     operation, and management of information systems; and
       (K) permitting continuous system upgrades to benefit from 
     advances in technology while preserving the integrity of 
     stored data.
       (d) Immediate Actions.--Not later than 90 days after the 
     date of the enactment of this Act, the Director of the Office 
     of Management and Budget, in consultation with the Executive 
     Council, shall--
       (1) submit to the President and to Congress a description 
     of the technological, legal, and policy issues presented by 
     the creation of the Network described in subsection (c), and 
     the way in which these issues will be addressed;
       (2) establish electronic directory services to assist in 
     locating in the Federal Government intelligence and homeland 
     security information and people with relevant knowledge about 
     intelligence and homeland security information; and
       (3) conduct a review of relevant current Federal agency 
     capabilities, including--
       (A) a baseline inventory of current Federal systems that 
     contain intelligence or homeland security information;
       (B) the money currently spent to maintain those systems; 
     and
       (C) identification of other information that should be 
     included in the Network.
       (e) Guidelines and Requirements.--As soon as possible, but 
     in no event later than 180 days after the date of the 
     enactment of this Act, the President shall--
       (1) in consultation with the Executive Council--
       (A) issue guidelines for acquiring, accessing, sharing, and 
     using information, including guidelines to ensure that 
     information is provided in its most shareable form, such as 
     by separating out data from the sources and methods by which 
     that data are obtained; and
       (B) on classification policy and handling procedures across 
     Federal agencies, including commonly accepted processing and 
     access controls;
       (2) in consultation with the Privacy and Civil Liberties 
     Oversight Board established under section 211, issue 
     guidelines that--
       (A) protect privacy and civil liberties in the development 
     and use of the Network; and
       (B) shall be made public, unless, and only to the extent 
     that, nondisclosure is clearly necessary to protect national 
     security; and
       (3) require the heads of Federal departments and agencies 
     to promote a culture of information sharing by--
       (A) reducing disincentives to information sharing, 
     including overclassification of information and unnecessary 
     requirements for originator approval; and
       (B) providing affirmative incentives for information 
     sharing, such as the incorporation of information sharing 
     performance measures into agency and managerial evaluations, 
     and employee awards for promoting innovative information 
     sharing practices.
       (f) Enterprise Architecture and Implementation Plan.--Not 
     later than 270 days after the date of the enactment of this 
     Act, the Director of Management and Budget shall submit to 
     the President and to Congress an enterprise architecture and 
     implementation plan for the Network. The enterprise 
     architecture and implementation plan shall be prepared by the 
     Director of Management and Budget, in consultation with the 
     Executive Council, and shall include--
       (1) a description of the parameters of the proposed 
     Network, including functions, capabilities, and resources;
       (2) a delineation of the roles of the Federal departments 
     and agencies that will participate in the development of the 
     Network, including identification of any agency that will 
     build the infrastructure needed to operate and manage the 
     Network (as distinct from the individual agency components 
     that are to be part of the Network), with the delineation of 
     roles to be consistent with--
       (A) the authority of the National Intelligence Director 
     under this Act to set standards for information sharing and 
     information technology throughout the intelligence community; 
     and
       (B) the authority of the Secretary of Homeland Security and 
     the role of the Department of Homeland Security in 
     coordinating with State, tribal, and local officials and the 
     private sector;
       (3) a description of the technological requirements to 
     appropriately link and enhance existing networks and a 
     description of the system design that will meet these 
     requirements;
       (4) an enterprise architecture that--
       (A) is consistent with applicable laws and guidance with 
     regard to planning, design, acquisition, operation, and 
     management of information systems;
       (B) will be used to guide and define the development and 
     implementation of the Network; and
       (C) addresses the existing and planned enterprise 
     architectures of the departments and agencies participating 
     in the Network;
       (5) a description of how privacy and civil liberties will 
     be protected throughout the design and implementation of the 
     Network;
       (6) objective, systemwide performance measures to enable 
     the assessment of progress toward achieving full 
     implementation of the Network;
       (7) a plan, including a time line, for the development and 
     phased implementation of the Network;
       (8) total budget requirements to develop and implement the 
     Network, including the estimated annual cost for each of the 
     5 years following the date of the enactment of this Act; and
       (9) proposals for any legislation that the Director of 
     Management and Budget determines necessary to implement the 
     Network.
       (g) Director of Management and Budget Responsible for 
     Information Sharing Across the Federal Government.--
       (1) Additional duties and responsibilities.--
       (A) In general.--The Director of Management and Budget, in 
     consultation with the Executive Council, shall--
       (i) implement and manage the Network;
       (ii) develop and implement policies, procedures, 
     guidelines, rules, and standards as appropriate to foster the 
     development and proper operation of the Network; and
       (iii) assist, monitor, and assess the implementation of the 
     Network by Federal departments and agencies to ensure 
     adequate progress, technological consistency and policy 
     compliance; and regularly report the findings to the 
     President and to Congress.
       (B) Content of policies, procedures, guidelines, rules, and 
     standards.--The policies, procedures, guidelines, rules, and 
     standards under subparagraph (A)(ii) shall--
       (i) take into account the varying missions and security 
     requirements of agencies participating in the Network;
       (ii) address development, implementation, and oversight of 
     technical standards and requirements;
       (iii) address and facilitate information sharing between 
     and among departments and agencies of the intelligence 
     community, the Department of Defense, the Homeland Security 
     community and the law enforcement community;
       (iv) address and facilitate information sharing between 
     Federal departments and agencies and State, tribal and local 
     governments;
       (v) address and facilitate, as appropriate, information 
     sharing between Federal departments and agencies and the 
     private sector;
       (vi) address and facilitate, as appropriate, information 
     sharing between Federal departments and agencies with foreign 
     partners and allies; and
       (vii) ensure the protection of privacy and civil liberties.
       (2) Appointment of principal officer.--Not later than 30 
     days after the date of the enactment of this Act, the 
     Director of Management and Budget shall appoint, with 
     approval of the President, a principal officer in the Office 
     of Management and Budget whose primary responsibility shall 
     be to carry out the day-to-day duties of the Director 
     specified in this section. The officer shall report directly 
     to the Director of Management and Budget, have the rank of a 
     Deputy Director and shall be paid at the rate of pay payable 
     for a position at level III of the Executive Schedule under 
     section 5314 of title 5, United States Code.
       (h) Executive Council on Information Sharing.--
       (1) Establishment.--There is established an Executive 
     Council on Information Sharing that shall assist the Director 
     of Management and Budget in the execution of the Director's 
     duties under this Act concerning information sharing.
       (2) Membership.--The members of the Executive Council shall 
     be--
       (A) the Director of Management and Budget, who shall serve 
     as Chairman of the Executive Council;
       (B) the Secretary of Homeland Security or his designee;
       (C) the Secretary of Defense or his designee;
       (D) the Attorney General or his designee;
       (E) the Secretary of State or his designee;
       (F) the Director of the Federal Bureau of Investigation or 
     his designee;
       (G) the National Intelligence Director or his designee;
       (H) such other Federal officials as the President shall 
     designate;
       (I) representatives of State, tribal, and local 
     governments, to be appointed by the President; and
       (J) individuals who are employed in private businesses or 
     nonprofit organizations that own or operate critical 
     infrastructure, to be appointed by the President.
       (3) Responsibilities.--The Executive Council shall assist 
     the Director of Management and Budget in--
       (A) implementing and managing the Network;
       (B) developing policies, procedures, guidelines, rules, and 
     standards necessary to establish and implement the Network;
       (C) ensuring there is coordination among departments and 
     agencies participating in

[[Page H8809]]

     the Network in the development and implementation of the 
     Network;
       (D) reviewing, on an ongoing basis, policies, procedures, 
     guidelines, rules, and standards related to the 
     implementation of the Network;
       (E) establishing a dispute resolution process to resolve 
     disagreements among departments and agencies about whether 
     particular information should be shared and in what manner; 
     and
       (F) considering such reports as are submitted by the 
     Advisory Board on Information Sharing under subsection 
     (i)(2).
       (4) Inapplicability of federal advisory committee act.--The 
     Council shall not be subject to the requirements of the 
     Federal Advisory Committee Act (5 U.S.C. App.).
       (5) Reports.--Not later than 1 year after the date of the 
     enactment of this Act, and annually thereafter, the Director 
     of Management and Budget, in the capacity of Chair of the 
     Executive Council, shall submit a report to the President and 
     to Congress that shall include--
       (A) a description of the activities and accomplishments of 
     the Council in the preceding year; and
       (B) the number and dates of the meetings held by the 
     Council and a list of attendees at each meeting.
       (6) Informing the public.--The Executive Council shall--
       (A) make its reports to Congress available to the public to 
     the greatest extent that is consistent with the protection of 
     classified information and applicable law; and
       (B) otherwise inform the public of its activities, as 
     appropriate and in a manner consistent with the protection of 
     classified information and applicable law.
       (i) Advisory Board on Information Sharing.--
       (1) Establishment.--There is established an Advisory Board 
     on Information Sharing to advise the President and the 
     Executive Council on policy, technical, and management issues 
     related to the design and operation of the Network.
       (2) Responsibilities.--The Advisory Board shall advise the 
     Executive Council on policy, technical, and management issues 
     related to the design and operation of the Network. At the 
     request of the Executive Council, or the Director of 
     Management and Budget in the capacity as Chair of the 
     Executive Council, or on its own initiative, the Advisory 
     Board shall submit reports to the Executive Council 
     concerning the findings and recommendations of the Advisory 
     Board regarding the design and operation of the Network.
       (3) Membership and qualifications.--The Advisory Board 
     shall be composed of no more than 15 members, to be appointed 
     by the President from outside the Federal Government. The 
     members of the Advisory Board shall have significant 
     experience or expertise in policy, technical and operational 
     matters, including issues of security, privacy, or civil 
     liberties, and shall be selected solely on the basis of their 
     professional qualifications, achievements, public stature and 
     relevant experience.
       (4) Chair.--The President shall designate one of the 
     members of the Advisory Board to act as chair of the Advisory 
     Board.
       (5) Administrative support.--The Office of Management and 
     Budget shall provide administrative support for the Advisory 
     Board.
       (j) Reports.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, and semiannually thereafter, the 
     President through the Director of Management and Budget shall 
     submit a report to Congress on the state of the Network and 
     of information sharing across the Federal Government.
       (2) Content.--Each report under this subsection shall 
     include--
       (A) a progress report on the extent to which the Network 
     has been implemented, including how the Network has fared on 
     the government-wide and agency-specific performance measures 
     and whether the performance goals set in the preceding year 
     have been met;
       (B) objective systemwide performance goals for the 
     following year;
       (C) an accounting of how much was spent on the Network in 
     the preceding year;
       (D) actions taken to ensure that agencies procure new 
     technology that is consistent with the Network and 
     information on whether new systems and technology are 
     consistent with the Network;
       (E) the extent to which, in appropriate circumstances, all 
     terrorism watch lists are available for combined searching in 
     real time through the Network and whether there are 
     consistent standards for placing individuals on, and removing 
     individuals from, the watch lists, including the availability 
     of processes for correcting errors;
       (F) the extent to which unnecessary roadblocks, 
     impediments, or disincentives to information sharing, 
     including the inappropriate use of paper-only intelligence 
     products and requirements for originator approval, have been 
     eliminated;
       (G) the extent to which positive incentives for information 
     sharing have been implemented;
       (H) the extent to which classified information is also made 
     available through the Network, in whole or in part, in 
     unclassified form;
       (I) the extent to which State, tribal, and local 
     officials--
       (i) are participating in the Network;
       (ii) have systems which have become integrated into the 
     Network;
       (iii) are providing as well as receiving information; and
       (iv) are using the Network to communicate with each other;
       (J) the extent to which--
       (i) private sector data, including information from owners 
     and operators of critical infrastructure, is incorporated in 
     the Network; and
       (ii) the private sector is both providing and receiving 
     information;
       (K) where private sector data has been used by the 
     Government or has been incorporated into the Network--
       (i) the measures taken to protect sensitive business 
     information; and
       (ii) where the data involves information about individuals, 
     the measures taken to ensure the accuracy of such data;
       (L) the measures taken by the Federal Government to ensure 
     the accuracy of other information on the Network and, in 
     particular, the accuracy of information about individuals;
       (M) an assessment of the Network's privacy and civil 
     liberties protections, including actions taken in the 
     preceding year to implement or enforce privacy and civil 
     liberties protections and a report of complaints received 
     about interference with an individual's privacy or civil 
     liberties; and
       (N) an assessment of the security protections of the 
     Network.
       (k) Agency Responsibilities.--The head of each department 
     or agency possessing or using intelligence or homeland 
     security information or otherwise participating in the 
     Network shall--
       (1) ensure full department or agency compliance with 
     information sharing policies, procedures, guidelines, rules, 
     and standards established for the Network under subsections 
     (c) and (g);
       (2) ensure the provision of adequate resources for systems 
     and activities supporting operation of and participation in 
     the Network; and
       (3) ensure full agency or department cooperation in the 
     development of the Network and associated enterprise 
     architecture to implement governmentwide information sharing, 
     and in the management and acquisition of information 
     technology consistent with applicable law.
       (l) Agency Plans and Reports.--Each Federal department or 
     agency that possesses or uses intelligence and homeland 
     security information, operates a system in the Network or 
     otherwise participates, or expects to participate, in the 
     Network, shall submit to the Director of Management and 
     Budget--
       (1) not later than 1 year after the date of the enactment 
     of this Act, a report including--
       (A) a strategic plan for implementation of the Network's 
     requirements within the department or agency;
       (B) objective performance measures to assess the progress 
     and adequacy of the department or agency's information 
     sharing efforts; and
       (C) budgetary requirements to integrate the agency into the 
     Network, including projected annual expenditures for each of 
     the following 5 years following the submission of the report; 
     and
       (2) annually thereafter, reports including--
       (A) an assessment of the progress of the department or 
     agency in complying with the Network's requirements, 
     including how well the agency has performed on the objective 
     measures developed under paragraph (1)(B);
       (B) the agency's expenditures to implement and comply with 
     the Network's requirements in the preceding year; and
       (C) the agency's or department's plans for further 
     implementation of the Network in the year following the 
     submission of the report.
       (m) Periodic Assessments.--
       (1) Comptroller general.--
       (A) In general.--Not later than 1 year after the date of 
     the enactment of this Act, and periodically thereafter, the 
     Comptroller General shall evaluate the implementation of the 
     Network, both generally and, at the discretion of the 
     Comptroller General, within specific departments and 
     agencies, to determine the extent of compliance with the 
     Network's requirements and to assess the effectiveness of the 
     Network in improving information sharing and collaboration 
     and in protecting privacy and civil liberties, and shall 
     report to Congress on the findings of the Comptroller 
     General.
       (B) Information available to the comptroller general.--Upon 
     request by the Comptroller General, information relevant to 
     an evaluation under subsection (a) shall be made available to 
     the Comptroller General under section 716 of title 31, United 
     States Code.
       (C) Consultation with congressional committees.--If a 
     record is not made available to the Comptroller General 
     within a reasonable time, before the Comptroller General 
     files a report under section 716(b)(1) of title 31, United 
     States Code, the Comptroller General shall consult with the 
     Select Committee on Intelligence of the Senate, the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives, the Committee on Governmental Affairs of the 
     Senate, and the Committee on Government Reform of the House 
     of Representatives concerning the Comptroller's intent to 
     file a report.
       (2) Inspectors general.--The Inspector General in any 
     Federal department or agency that possesses or uses 
     intelligence or

[[Page H8810]]

     homeland security information or that otherwise participates 
     in the Network shall, at the discretion of the Inspector 
     General--
       (A) conduct audits or investigations to--
       (i) determine the compliance of that department or agency 
     with the Network's requirements; and
       (ii) assess the effectiveness of that department or agency 
     in improving information sharing and collaboration and in 
     protecting privacy and civil liberties; and
       (B) issue reports on such audits and investigations.
       (n) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) $50,000,000 to the Director of Management and Budget to 
     carry out this section for fiscal year 2005; and
       (2) such sums as are necessary to carry out this section in 
     each fiscal year thereafter, to be disbursed and allocated in 
     accordance with the Network implementation plan required by 
     subsection (f).

                Subtitle B--Privacy and Civil Liberties

     SEC. 211. PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD.

       (a) In General.--There is established within the Executive 
     Office of the President a Privacy and Civil Liberties 
     Oversight Board (referred to in this subtitle 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; and
       (2) ensure that liberty 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 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 205(g);
       (B) review 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 205(g);
       (C) advise the President and the departments, agencies, and 
     elements of the executive branch 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 
     department, agency, or element of the executive branch has 
     explained--
       (i) that the power actually materially enhances security;
       (ii) that there is adequate supervision of the use by the 
     executive branch of the power to ensure protection of privacy 
     and civil liberties; and
       (iii) that there are adequate guidelines and oversight to 
     properly confine its use.
       (2) Oversight.--The Board shall continually review--
       (A) the regulations, policies, and procedures, and the 
     implementation of the regulations, policies, and procedures, 
     of the departments, agencies, and elements of the executive 
     branch to ensure that privacy and civil liberties are 
     protected;
       (B) the information sharing practices of the departments, 
     agencies, and elements of the executive branch to determine 
     whether they appropriately protect privacy and civil 
     liberties and adhere to the information sharing guidelines 
     prescribed under section 205(g) 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 and civil liberties 
     officers.--The Board shall--
       (A) review and assess reports and other information from 
     privacy officers and civil liberties officers described in 
     section 212;
       (B) when appropriate, make recommendations to such privacy 
     officers and civil liberties officers regarding their 
     activities; and
       (C) when appropriate, coordinate the activities of such 
     privacy officers and civil liberties 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 officers and 
     civil liberties officers described in section 212; and
       (B) periodically submit, not less than semiannually, 
     reports--
       (i)(I) to the appropriate committees of Congress, including 
     the Committees on the Judiciary of the Senate and the House 
     of Representatives, the Committee on Governmental Affairs of 
     the Senate, the Committee on Government Reform of the House 
     of Representatives, the Select Committee on Intelligence of 
     the Senate, and the Permanent Select Committee on 
     Intelligence of the House of Representatives; and
       (II) to the President; and
       (ii) which shall be in unclassified form to the greatest 
     extent possible, with a classified annex where necessary.
       (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 preceding 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--
       (1) make its reports, including its reports to Congress, 
     available to the public to the greatest extent that is 
     consistent with the protection of classified information and 
     applicable law; and
       (2) hold public hearings and otherwise inform the public of 
     its activities, as appropriate and in a manner consistent 
     with the protection of classified information and applicable 
     law.
       (g) Access To Information.--
       (1) Authorization.--If determined by the Board to be 
     necessary to carry out its responsibilities under this 
     section, the Board is authorized to--
       (A) have access from any department, agency, or element of 
     the executive branch, or any Federal officer or employee, to 
     all relevant records, reports, audits, reviews, documents, 
     papers, recommendations, or other relevant material, 
     including classified information consistent with applicable 
     law;
       (B) interview, take statements from, or take public 
     testimony from personnel of any department, agency, or 
     element of the executive branch, or any Federal officer or 
     employee;
       (C) request information or assistance from any State, 
     tribal, or local government; and
       (D) require, by subpoena issued at the direction of a 
     majority of the members of the Board, persons (other than 
     departments, agencies, and elements of the executive branch) 
     to produce any relevant information, documents, reports, 
     answers, records, accounts, papers, and other documentary or 
     testimonial evidence.
       (2) Enforcement of subpoena.--In the case of contumacy or 
     failure to obey a subpoena issued under paragraph (1)(D), the 
     United States district court for the judicial district in 
     which the subpoenaed person resides, is served, or may be 
     found may issue an order requiring such person to produce the 
     evidence required by such subpoena.
       (3) Agency cooperation.--Whenever information or assistance 
     requested under subparagraph (A) or (B) of paragraph (1) is, 
     in the judgment of the Board, unreasonably refused or not 
     provided, the Board shall report the circumstances to the 
     head of the department, agency, or element concerned without 
     delay. The head of the department, agency, or element 
     concerned shall ensure that the Board is given access to the 
     information, assistance, material, or personnel the Board 
     determines to be necessary to carry out its functions.
       (h) Membership.--
       (1) Members.--The Board shall be composed of a full-time 
     chairman and 4 additional members, who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate.
       (2) Qualifications.--Members of the Board shall be selected 
     solely on the basis of their professional qualifications, 
     achievements, public stature, expertise in civil liberties 
     and privacy, and relevant experience, and without regard to 
     political affiliation, but in no event shall more than 3 
     members of the Board be members of the same political party.
       (3) Incompatible office.--An individual appointed to the 
     Board may not, while serving on the Board, be an elected 
     official, officer, or employee of the Federal Government, 
     other than in the capacity as a member of the Board.
       (4) 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,

[[Page H8811]]

     from the effective date of this Act, with the term of each 
     such member to be designated by the President.
       (5) 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.
       (i) Compensation and Travel Expenses.--
       (1) Compensation.--
       (A) Chairman.--The chairman shall be compensated at the 
     rate of pay payable for a position at level III of the 
     Executive Schedule under section 5314 of title 5, United 
     States Code.
       (B) Members.--Each member of the Board shall be compensated 
     at a rate of pay payable 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.
       (j) Staff.--
       (1) Appointment and compensation.--The Chairman, in 
     accordance with rules agreed upon by the Board, shall appoint 
     and fix the compensation of a full-time 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.
       (k) Security Clearances.--The appropriate departments, 
     agencies, and elements of the executive branch 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.
       (l) 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.)).

     SEC. 212. PRIVACY AND CIVIL LIBERTIES OFFICERS.

       (a) Designation and Functions.--The Attorney General, the 
     Secretary of Defense, the Secretary of State, the Secretary 
     of the Treasury, the Secretary of Health and Human Services, 
     the Secretary of Homeland Security, the National Intelligence 
     Director, the Director of the Central Intelligence Agency, 
     and the head of any other department, agency, or element of 
     the executive branch designated by the Privacy and Civil 
     Liberties Oversight Board to be appropriate for coverage 
     under this section shall designate not less than 1 senior 
     officer to--
       (1) assist the head of such department, agency, or element 
     and other officials of such department, agency, or element in 
     appropriately considering privacy and civil liberties 
     concerns when such officials are proposing, developing, or 
     implementing laws, regulations, policies, procedures, or 
     guidelines related to efforts to protect the Nation against 
     terrorism;
       (2) periodically investigate and review department, agency, 
     or element actions, policies, procedures, guidelines, and 
     related laws and their implementation to ensure that such 
     department, agency, or element is adequately considering 
     privacy and civil liberties in its actions;
       (3) ensure that such department, agency, or element has 
     adequate procedures to receive, investigate, respond to, and 
     redress complaints from individuals who allege such 
     department, agency, or element has violated their privacy or 
     civil liberties; and
       (4) in providing advice on proposals to retain or enhance a 
     particular governmental power the officer shall consider 
     whether such department, agency, or element has explained--
       (i) that the power actually materially enhances security;
       (ii) that there is adequate supervision of the use by such 
     department, agency, or element of the power to ensure 
     protection of privacy and civil liberties; and
       (iii) that there are adequate guidelines and oversight to 
     properly confine its use.
       (b) Exception To Designation Authority.--
       (1) Privacy officers.--In any department, agency, or 
     element referred to in subsection (a) or designated by the 
     Board, which has a statutorily created privacy officer, such 
     officer shall perform the functions specified in subsection 
     (a) with respect to privacy.
       (2) Civil liberties officers.--In any department, agency, 
     or element referred to in subsection (a) or designated by the 
     Board, which has a statutorily created civil liberties 
     officer, such officer shall perform the functions specified 
     in subsection (a) with respect to civil liberties.
       (c) Supervision and Coordination.--Each privacy officer or 
     civil liberties officer described in subsection (a) or (b) 
     shall--
       (1) report directly to the head of the department, agency, 
     or element concerned; and
       (2) coordinate their activities with the Inspector General 
     of such department, agency, or element to avoid duplication 
     of effort.
       (d) Agency Cooperation.--The head of each department, 
     agency, or element shall ensure that each privacy officer and 
     civil liberties officer--
       (1) has the information, material, and resources necessary 
     to fulfill the functions of such officer;
       (2) is advised of proposed policy changes;
       (3) is consulted by decision makers; and
       (4) is given access to material and personnel the officer 
     determines to be necessary to carry out the functions of such 
     officer.
       (e) Reprisal for Making Complaint.--No action constituting 
     a reprisal, or threat of reprisal, for making a complaint or 
     for disclosing information to a privacy officer or civil 
     liberties officer described in subsection (a) or (b), or to 
     the Privacy and Civil Liberties Oversight Board, that 
     indicates a possible violation of privacy protections or 
     civil liberties in the administration of the programs and 
     operations of the Federal Government relating to efforts to 
     protect the Nation from terrorism shall be taken by any 
     Federal employee in a position to take such action, unless 
     the complaint was made or the information was disclosed with 
     the knowledge that it was false or with willful disregard for 
     its truth or falsity.
       (f) Periodic Reports.--
       (1) In general.--The privacy officers and civil liberties 
     officers of each department, agency, or element referred to 
     or described in subsection (a) or (b) shall periodically, but 
     not less than quarterly, submit a report on the activities of 
     such officers--
       (A)(i) to the appropriate committees of Congress, including 
     the Committees on the Judiciary of the Senate and the House 
     of Representatives, the Committee on Governmental Affairs of 
     the Senate, the Committee on Government Reform of the House 
     of Representatives, the Select Committee on Intelligence of 
     the Senate, and the Permanent Select Committee on 
     Intelligence of the House of Representatives;
       (ii) to the head of such department, agency, or element; 
     and
       (iii) to the Privacy and Civil Liberties Oversight Board; 
     and
       (B) which shall be in unclassified form to the greatest 
     extent possible, with a classified annex where necessary.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include information on the discharge of each of the 
     functions of the officer concerned, including--
       (A) information on the number and types of reviews 
     undertaken;
       (B) the type of advice provided and the response given to 
     such advice;
       (C) the number and nature of the complaints received by the 
     department, agency, or element concerned for alleged 
     violations; and
       (D) a summary of the disposition of such complaints, the 
     reviews and inquiries conducted, and the impact of the 
     activities of such officer.
       (g) Informing the Public.--Each privacy officer and civil 
     liberties officer shall--
       (1) make the reports of such officer, including reports to 
     Congress, available to the public to the greatest extent that 
     is consistent with the protection of classified information 
     and applicable law; and
       (2) otherwise inform the public of the activities of such 
     officer, as appropriate and in a manner consistent with the 
     protection of classified information and applicable law.
       (h) Savings Clause.--Nothing in this section shall be 
     construed to limit or otherwise supplant any other 
     authorities or responsibilities provided by law to privacy 
     officers or civil liberties officers.

           Subtitle C--Independence of Intelligence Agencies

     SEC. 221. INDEPENDENCE OF NATIONAL INTELLIGENCE DIRECTOR.

       (a) Location Outside Executive Office of the President.--
     The National Intelligence Director shall not be located 
     within the Executive Office of the President.
       (b) Provision of National Intelligence.--The National 
     Intelligence Director shall provide to the President and 
     Congress national intelligence that is timely, objective, and 
     independent of political considerations, and has not been 
     shaped to serve policy goals.

     SEC. 222. INDEPENDENCE OF INTELLIGENCE.

       (a) Director of National Counterterrorism Center.--The 
     Director of the National Counterterrorism Center shall 
     provide to the President, Congress, and the National 
     Intelligence Director national intelligence related to 
     counterterrorism that is timely, objective, and independent 
     of political considerations, and has not been shaped to serve 
     policy goals.
       (b) Directors of National Intelligence Centers.--Each 
     Director of a national intelligence center established under 
     section 144 shall provide to the President, Congress, and

[[Page H8812]]

     the National Intelligence Director intelligence information 
     that is timely, objective, and independent of political 
     considerations, and has not been shaped to serve policy 
     goals.
       (c) Director of Central Intelligence Agency.--The Director 
     of the Central Intelligence Agency shall ensure that 
     intelligence produced by the Central Intelligence Agency is 
     objective and independent of political considerations, and 
     has not been shaped to serve policy goals.
       (d) National Intelligence Council.--The National 
     Intelligence Council shall produce national intelligence 
     estimates for the United States Government that are timely, 
     objective, and independent of political considerations, and 
     have not been shaped to serve policy goals.

     SEC. 223. INDEPENDENCE OF NATIONAL COUNTERTERRORISM CENTER.

       No officer, department, agency, or element of the executive 
     branch shall have any authority to require the Director of 
     the National Counterterrorism Center--
       (1) to receive permission to testify before Congress; or
       (2) to submit testimony, legislative recommendations, or 
     comments to any officer or agency of the United States for 
     approval, comments, or review prior to the submission of such 
     recommendations, testimony, or comments to Congress if such 
     recommendations, testimony, or comments include a statement 
     indicating that the views expressed therein are those of the 
     agency submitting them and do not necessarily represent the 
     views of the Administration.

     SEC. 224. ACCESS OF CONGRESSIONAL COMMITTEES TO NATIONAL 
                   INTELLIGENCE.

       (a) Documents Required To Be Provided to Congressional 
     Committees.--The National Intelligence Director, the Director 
     of the National Counterterrorism Center, and the Director of 
     a national intelligence center shall provide to the Select 
     Committee on Intelligence of the Senate, the Permanent Select 
     Committee on Intelligence of the House of Representatives, 
     and any other committee of Congress with jurisdiction over 
     the subject matter to which the information relates, all 
     intelligence assessments, intelligence estimates, sense of 
     intelligence community memoranda, and daily senior executive 
     intelligence briefs, other than the Presidential Daily Brief 
     and those reports prepared exclusively for the President.
       (b) Response to Requests from Congress Required.--
       (1) In general.--Except as provided in paragraph (2), in 
     addition to providing material under subsection (a), the 
     National Intelligence Director, the Director of the National 
     Counterterrorism Center, or the Director of a national 
     intelligence center shall, not later than 15 days after 
     receiving a request for any intelligence assessment, report, 
     or estimate or other intelligence information from the Select 
     Committee on Intelligence of the Senate, the Permanent Select 
     Committee on Intelligence of the House of Representatives, or 
     any other committee of Congress with jurisdiction over the 
     subject matter to which the information relates, make 
     available to such committee such intelligence assessment, 
     report, or estimate or other intelligence information.
       (2) Certain members.--In addition to requests described in 
     paragraph (1), the National Intelligence Director shall 
     respond to requests from the Chairman and Vice Chairman of 
     the Select Committee on Intelligence of the Senate and the 
     Chairman and Ranking Member of the Permanent Select Committee 
     on Intelligence of the House of Representatives. Upon making 
     a request covered by this paragraph, the Chairman, Vice 
     Chairman, or Ranking Member, as the case may be, of such 
     committee shall notify the other of the Chairman, Vice 
     Chairman, or Ranking Member, as the case may be, of such 
     committee of such request.
       (3) Assertions of privilege.--In response to requests 
     described under paragraph (1) or (2), the National 
     Intelligence Director, the Director of the National 
     Counterterrorism Center, or the Director of a national 
     intelligence center shall provide information, unless the 
     President certifies that such information is not being 
     provided because the President is asserting a privilege 
     pursuant to the United States Constitution.

     SEC. 225. COMMUNICATIONS WITH CONGRESS.

       (a) Disclosure of Certain Information Authorized.--
       (1) In general.--Employees of covered agencies and 
     employees of contractors carrying out activities under 
     classified contracts with covered agencies may disclose 
     information described in paragraph (2) to the individuals 
     referred to in paragraph (3) without first reporting such 
     information to the appropriate Inspector General.
       (2) Covered information.--Paragraph (1) applies to 
     information, including classified information, that an 
     employee reasonably believes provides direct and specific 
     evidence of a false or inaccurate statement to Congress 
     contained in, or withheld from Congress, any intelligence 
     information material to, any intelligence assessment, report, 
     or estimate, but does not apply to information the disclosure 
     of which is prohibited by rule 6(e) of the Federal Rules of 
     Criminal Procedure.
       (3) Covered individuals.--
       (A) In general.--The individuals to whom information in 
     paragraph (2) may be disclosed are--
       (i) a Member of a committee of Congress having primary 
     responsibility for oversight of a department, agency, or 
     element of the United States Government to which the 
     disclosed information relates and who is authorized to 
     receive information of the type disclosed;
       (ii) any other Member of Congress who is authorized to 
     receive information of the type disclosed; and
       (iii) an employee of Congress who has the appropriate 
     security clearance and is authorized to receive information 
     of the type disclosed.
       (B) Presumption of need for information.--An individual 
     described in subparagraph (A) to whom information is 
     disclosed under paragraph (2) shall be presumed to have a 
     need to know such information.
       (b) Construction With Other Reporting Requirements.--
     Nothing in this section may be construed to modify, alter, or 
     otherwise affect--
       (1) any reporting requirement relating to intelligence 
     activities that arises under this Act, the National Security 
     Act of 1947 (50 U.S.C. 401 et seq.), or any other provision 
     of law; or
       (2) the right of any employee of the United States 
     Government to disclose to Congress in accordance with 
     applicable law information not described in this section.
       (c) Covered Agencies Defined.--In this section, the term 
     ``covered agencies'' means the following:
       (1) The National Intelligence Authority, including the 
     National Counterterrorism Center.
       (2) The Central Intelligence Agency.
       (3) The Defense Intelligence Agency.
       (4) The National Geospatial-Intelligence Agency.
       (5) The National Security Agency.
       (6) The Federal Bureau of Investigation.
       (7) Any other Executive agency, or element or unit thereof, 
     determined by the President under section 2302(a)(2)(C)(ii) 
     of title 5, United States Code, to have as its principal 
     function the conduct of foreign intelligence or 
     counterintelligence activities.

  TITLE III--MODIFICATIONS OF LAWS RELATING TO INTELLIGENCE COMMUNITY 
                               MANAGEMENT

              Subtitle A--Conforming and Other Amendments

     SEC. 301. RESTATEMENT AND MODIFICATION OF BASIC AUTHORITY ON 
                   THE CENTRAL INTELLIGENCE AGENCY.

       (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:


                     ``central intelligence agency

       ``Sec. 102. (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 103(d).


             ``director of the Central Intelligence Agency

       ``Sec. 103. (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) Supervision.--The Director of the Central 
     Intelligence Agency shall report to the National Intelligence 
     Director regarding the activities of the Director of the 
     Central Intelligence Agency.
       ``(c) Duties.--The Director of the Central Intelligence 
     Agency shall--
       ``(1) serve as the head of the Central Intelligence Agency; 
     and
       ``(2) carry out the responsibilities specified in 
     subsection (d).
       ``(d) 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) correlate and evaluate intelligence related to the 
     national security and provide appropriate dissemination of 
     such intelligence;
       ``(3) provide overall direction for and coordination of the 
     collection of national intelligence outside the United States 
     through human sources by elements of the intelligence 
     community authorized to undertake such collection and, in 
     coordination with other departments, agencies, or elements of 
     the United States Government which are authorized to 
     undertake such collection, ensure that the most effective use 
     is made of resources and that appropriate account is taken of 
     the risks to the United States and those involved in such 
     collection; and
       ``(4) perform such other functions and duties pertaining to 
     intelligence relating to the national security as the 
     President or the National Intelligence Director may direct.
       ``(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

[[Page H8813]]

     other department, agency, or element of the United States 
     Government if declared eligible for such employment by the 
     Office of Personnel Management.
       ``(f) Coordination With Foreign Governments.--Under the 
     direction of the National Intelligence Director and in a 
     manner consistent with section 207 of the Foreign Service Act 
     of 1980 (22 U.S.C. 3927), the Director of the Central 
     Intelligence Agency 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.''.
       (b) Transformation of Central Intelligence Agency.--The 
     Director of the Central Intelligence Agency shall, in 
     accordance with standards developed by the Director in 
     consultation with the National Intelligence Director--
       (1) enhance the analytic, human intelligence, and other 
     capabilities of the Central Intelligence Agency;
       (2) develop and maintain an effective language program 
     within the Agency;
       (3) emphasize the hiring of personnel of diverse 
     backgrounds for purposes of improving the capabilities of the 
     Agency;
       (4) establish and maintain effective relationships between 
     human intelligence and signals intelligence within the Agency 
     at the operational level; and
       (5) achieve a more effective balance within the Agency with 
     respect to unilateral operations and liaison operations.
       (c) Reports.--(1) Not later than 180 days after the 
     effective date of this section, and annually thereafter, the 
     Director of the Central Intelligence Agency shall submit to 
     the National Intelligence Director and the congressional 
     intelligence committees a report setting forth the following:
       (A) A strategy for improving the conduct of analysis 
     (including strategic analysis) by the Central Intelligence 
     Agency, and the progress of the Agency in implementing the 
     strategy.
       (B) A strategy for improving the human intelligence and 
     other capabilities of the Agency, and the progress of the 
     Agency in implementing the strategy, including--
       (i) the recruitment, training, equipping, and deployment of 
     personnel required to address the current and projected 
     threats to the national security of the United States during 
     each of the 2-year, 5-year, and 10-year periods beginning on 
     the date of such report, including personnel with the 
     backgrounds, education, and experience necessary for ensuring 
     a human intelligence capability adequate for such projected 
     threats;
       (ii) the achievement of a proper balance between unilateral 
     operations and liaison operations;
       (iii) the development of language capabilities (including 
     the achievement of high standards in such capabilities by the 
     use of financial incentives and other mechanisms);
       (iv) the sound financial management of the Directorate of 
     Operations; and
       (v) the identification of other capabilities required to 
     address the current and projected threats to the national 
     security of the United States during each of the 2-year, 5-
     year, and 10-year periods beginning on the date of such 
     report.
       (C) In conjunction with the Director of the National 
     Security Agency, a strategy for achieving integration between 
     signals and human intelligence capabilities, and the progress 
     in implementing the strategy.
       (D) Metrics and milestones for measuring progress in the 
     implementation of each such strategy.
       (2)(A) The information in each report under paragraph (1) 
     on the element of the strategy referred to in paragraph 
     (1)(B)(i) shall identify the number and types of personnel 
     required to implement the strategy during each period 
     addressed in such report, include a plan for the recruitment, 
     training, equipping, and deployment of such personal, and set 
     forth an estimate of the costs of such activities.
       (B) If as of the date of a report under paragraph (1), a 
     proper balance does not exist between unilateral operations 
     and liaison operations, such report shall set forth the steps 
     to be taken to achieve such balance.
       (C) The information in each report under paragraph (1) on 
     the element of the strategy referred to in paragraph 
     (1)(B)(v) shall identify the other capabilities required to 
     implement the strategy during each period addressed in such 
     report, include a plan for developing such capabilities, and 
     set forth an estimate of the costs of such activities.

     SEC. 302. 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)).
       (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)).
       (R) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
       (S) Section 115(b) (50 U.S.C. 404j(b)).
       (T) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).
       (U) Section 116(a) (50 U.S.C. 404k(a)).
       (V) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
       (W) Section 303(a) (50 U.S.C. 405(a)), both places it 
     appears.
       (X) Section 501(d) (50 U.S.C. 413(d)).
       (Y) Section 502(a) (50 U.S.C. 413a(a)).
       (Z) Section 502(c) (50 U.S.C. 413a(c)).
       (AA) Section 503(b) (50 U.S.C. 413b(b)).
       (BB) Section 504(a)(2) (50 U.S.C. 414(a)(2)).
       (CC) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
       (DD) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
       (EE) Section 506A(a)(1) (50 U.S.C. 415a-1(a)(1)).
       (FF) Section 603(a) (50 U.S.C. 423(a)).
       (GG) Section 702(a)(1) (50 U.S.C. 432(a)(1)).
       (HH) Section 702(a)(6)(B)(viii) (50 U.S.C. 
     432(a)(6)(B)(viii)).
       (II) Section 702(b)(1) (50 U.S.C. 432(b)(1)), both places 
     it appears.
       (JJ) Section 703(a)(1) (50 U.S.C. 432a(a)(1)).
       (KK) Section 703(a)(6)(B)(viii) (50 U.S.C. 
     432a(a)(6)(B)(viii)).
       (LL) Section 703(b)(1) (50 U.S.C. 432a(b)(1)), both places 
     it appears.
       (MM) Section 704(a)(1) (50 U.S.C. 432b(a)(1)).
       (NN) Section 704(f)(2)(H) (50 U.S.C. 432b(f)(2)(H)).
       (OO) Section 704(g)(1)) (50 U.S.C. 432b(g)(1)), both places 
     it appears.
       (PP) Section 1001(a) (50 U.S.C. 441g(a)).
       (QQ) Section 1102(a)(1) (50 U.S.C. 442a(a)(1)).
       (RR) Section 1102(b)(1) (50 U.S.C. 442a(b)(1)).
       (SS) Section 1102(c)(1) (50 U.S.C. 442a(c)(1)).
       (TT) 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)).
       (C) Section 1001(c) (50 U.S.C. 441g(c)), the first place it 
     appears.
       (D) Section 1001(d)(1)(B) (50 U.S.C. 441g(d)(1)(B)).
       (E) 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 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''.
       (6) 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) Section 1 
     of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
     403a) is amended--
       (A) by redesignating paragraphs (a), (b), and (c) as 
     paragraphs (1), (2), and (3), respectively; and
       (B) 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''.
       (2) That Act (50 U.S.C. 403a et seq.) is further 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.
       (3) 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)).
       (4) 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.

[[Page H8814]]

       (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) 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''.
       (C) 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. 303. 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 ``Principal 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 112(a)(11) of the National Intelligence 
     Reform Act of 2004''.
       (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 Principal Deputy National Intelligence Director, or, with 
     respect to employees of the Central Intelligence Agency, to 
     the Director of the Central Intelligence Agency''.
       (4) Section 504(a)(2) of that Act (50 U.S.C. 414(a)(2)) is 
     amended by striking ``Reserve for Contingencies of the 
     Central Intelligence Agency'' and inserting ``Reserve for 
     Contingencies of the National Intelligence Director''.
       (5) 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''.
       (6) 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 the Central Intelligence Agency, or the Office of 
     the National Intelligence Director''.
       (7) 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 Agency 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 112(a)(11) of the National Intelligence Reform Act 
     of 2004''.
       (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 112(a)(11) of the National 
     Intelligence Reform Act of 2004 that the National 
     Intelligence Director''.
       (d) Intelligence Authorization Acts.--
       (1) Public law 107-306.--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 112(a)(11) of the 
     National Intelligence Reform Act of 2004''.
       (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 ``Principal Deputy National Intelligence 
     Director''; and
       (B) in subsection (h)(2)(C), by striking ``Assistant 
     Director'' and inserting ``Principal Deputy National 
     Intelligence Director''.

     SEC. 304. MODIFICATIONS OF FOREIGN INTELLIGENCE AND 
                   COUNTERINTELLIGENCE UNDER NATIONAL SECURITY ACT 
                   OF 1947.

       Section 3 of the National Security Act of 1947 (50 U.S.C. 
     401a) is amended--
       (1) in paragraph (2), by striking ``or foreign persons, or 
     international terrorist activities'' and inserting ``foreign 
     persons, or international terrorists''; and
       (2) in paragraph (3), by striking ``or foreign persons, or 
     international terrorist activities'' and inserting ``foreign 
     persons, or international terrorists''.

     SEC. 305. 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 National Intelligence Authority.
       ``(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 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. 306. REDESIGNATION OF NATIONAL FOREIGN INTELLIGENCE 
                   PROGRAM AS NATIONAL INTELLIGENCE PROGRAM.

       (a) Redesignation.--Section 3 of the National Security Act 
     of 1947 (50 U.S.C. 401a), as amended by this Act, is further 
     amended--
       (1) by striking paragraph (6); and
       (2) by redesignating paragraph (7) as paragraph (6).
       (b) Conforming Amendments.--(1) The National Security Act 
     of 1947, as amended by this Act, is further amended by 
     striking ``National Foreign Intelligence Program'' each place 
     it appears in the following provisions and inserting 
     ``National Intelligence Program'':
       (A) Section 105(a)(2) (50 U.S.C. 403-5(a)(2)).
       (B) Section 105(a)(3) (50 U.S.C. 403-5(a)(3)).
       (C) Section 506(a) (50 U.S.C. 415a(a)).
       (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 Amendments.--(1) The heading of section 105 of 
     that Act is amended to read as follows:


   ``responsibilities of the secretary of defense pertaining to the 
                    national intelligence program''.

       (2) The heading of section 506 of that Act is amended to 
     read as follows:


   ``specificity of national intelligence program budget amounts for 
     counterterrorism, counterproliferation, counternarcotics, and 
                         counterintelligence''.

     SEC. 307. CONFORMING AMENDMENT ON COORDINATION OF BUDGETS OF 
                   ELEMENTS OF THE INTELLIGENCE COMMUNITY WITHIN 
                   THE DEPARTMENT OF DEFENSE.

       Section 105(a)(1) of the National Security Act of 1947 (50 
     U.S.C. 403-5(a)(1)) is amended by striking ``ensure'' and 
     inserting ``assist the Director in ensuring''.

[[Page H8815]]

     SEC. 308. 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. 309. CLERICAL AMENDMENTS TO NATIONAL SECURITY ACT OF 
                   1947.

       The table of contents for the National Security Act of 1947 
     is amended--
       (1) by inserting after the item relating to section 101 the 
     following new item:
``Sec. 101A. Joint Intelligence Community Council.'';
       (2) by striking the items relating to sections 102 through 
     104 and inserting the following new items:
``Sec. 102. Central Intelligence Agency.
``Sec. 103. Director of the Central Intelligence Agency.'';
       (3) by striking the item relating to section 105 and 
     inserting the following new item:
``Sec 105. Responsibilities of the Secretary of Defense pertaining to 
              the National Intelligence Program.'';
       (4) 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
       (5) 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. 310. MODIFICATION OF AUTHORITIES RELATING TO NATIONAL 
                   COUNTERINTELLIGENCE EXECUTIVE.

       (a) Appointment of National Counterintelligence 
     Executive.--Subsection (a)(2) of section 902 of the 
     Counterintelligence Enhancement Act of 2002 (title IX of 
     Public Law 107-306; 116 Stat. 2432; 50 U.S.C. 402b) is 
     amended by striking ``Director of Central Intelligence'' and 
     inserting ``National Intelligence Director, and Director of 
     the Central Intelligence Agency''.
       (b) Component of Office of National Intelligence 
     Director.--Such section is further 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) Component of Office of National Intelligence 
     Director.--The National Counterintelligence Executive is a 
     component of the Office of the National Intelligence Director 
     under subtitle C of the National Intelligence Reform Act of 
     2004.''.
       (c) Duties.--Subsection (d) of such section, as 
     redesignated by subsection (a)(1) of this section, is amended 
     by adding at the end the following new paragraph:
       ``(5) To perform such other duties as may be provided under 
     section 131(b) of the National Intelligence Reform Act of 
     2004.''.
       (d) Office of National Counterintelligence Executive.--
     Section 904 of the Counterintelligence Enhancement Act of 
     2002 (116 Stat. 2434; 50 U.S.C. 402c) is amended--
       (1) by striking ``Office of the Director of Central 
     Intelligence'' each place it appears in subsections (c) and 
     (l)(1) and inserting ``Office of the National Intelligence 
     Director'';
       (2) by striking ``Director of Central Intelligence'' each 
     place it appears in subsections (e)(4), (e)(5), (h)(1), and 
     (h)(2) and inserting ``National Intelligence Director''; and
       (3) in subsection (m), by striking ``Director of Central 
     Intelligence'' and inserting ``National Intelligence 
     Director, the Director of the Central Intelligence Agency''.

     SEC. 311. CONFORMING AMENDMENT TO INSPECTOR GENERAL ACT OF 
                   1978.

       Section 8H(a)(1) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended by adding at the end the following 
     new subparagraph:
       ``(D) An employee of the National Intelligence Authority, 
     an employee of an entity other than the Authority who is 
     assigned or detailed to the Authority, or of a contractor of 
     the Authority, who intends to report to Congress a complaint 
     or information with respect to an urgent concern may report 
     the complaint or information to the Inspector General of the 
     National Intelligence Authority in accordance with section 
     141(h)(5) of the National Intelligence Reform Act of 2004.''.

     SEC. 312. CONFORMING AMENDMENT RELATING TO CHIEF FINANCIAL 
                   OFFICER OF THE NATIONAL INTELLIGENCE AUTHORITY.

       Section 901(b)(1) of title 31, United States Code, is 
     amended by adding at the end the following new subparagraph:
       ``(Q) The National Intelligence Authority.''.

                 Subtitle B--Transfers and Terminations

     SEC. 321. TRANSFER OF OFFICE OF DEPUTY DIRECTOR OF CENTRAL 
                   INTELLIGENCE FOR COMMUNITY MANAGEMENT.

       (a) Transfer.--There shall be transferred to the Office of 
     the National Intelligence Director the staff of the Office of 
     the Deputy Director of Central Intelligence for Community 
     Management as of the date of the enactment of this Act, 
     including all functions and activities discharged by the 
     Office of the Deputy Director of Central Intelligence for 
     Community Management as of that date.
       (b) Administration.--The National Intelligence Director 
     shall administer the staff of the Office of the Deputy 
     Director of Central Intelligence for Community Management 
     after the date of the enactment of this Act as a component of 
     the Office of the National Intelligence Director under 
     section 121(d).

     SEC. 322. TRANSFER OF NATIONAL COUNTERTERRORISM EXECUTIVE.

       (a) Transfer.--There shall be transferred to the Office of 
     the National Intelligence Director the National 
     Counterintelligence Executive and the Office of the National 
     Counterintelligence Executive under the Counterintelligence 
     Enhancement Act of 2002 (title IX of Public Law 107-306; 50 
     U.S.C. 402b et seq.), as amended by section 309 of this Act, 
     including all functions and activities discharged by the 
     National Counterintelligence Executive and the Office of the 
     National Counterintelligence Executive as of the date of the 
     enactment of this Act.
       (b) Administration.--The National Intelligence Director 
     shall treat the National Counterintelligence Executive, and 
     administer the Office of the National Counterintelligence 
     Executive, after the date of the enactment of this Act as 
     components of the Office of the National Intelligence 
     Director under section 121(c).

     SEC. 323. 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 143(g)(2).

     SEC. 324. TERMINATION OF CERTAIN POSITIONS WITHIN THE CENTRAL 
                   INTELLIGENCE AGENCY.

       (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 Deputy Director of Central Intelligence for 
     Community Management.
       (2) The Assistant Director of Central Intelligence for 
     Collection.
       (3) The Assistant Director of Central Intelligence for 
     Analysis and Production.
       (4) The Assistant Director of Central Intelligence for 
     Administration.

                  Subtitle C--Other Transition Matters

     SEC. 331. 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--
       (1) by striking the item relating to the Director of 
     Central Intelligence; and
       (2) by adding at the end the following new items:
       ``Deputy National Intelligence Directors (5).
       ``Director of the National Counterterrorism Center.''.
       (c) 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:
       ``Director of the Central Intelligence Agency.''.
       (d) 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.

     SEC. 332. PRESERVATION OF INTELLIGENCE CAPABILITIES.

       The National Intelligence Director, the Director of the 
     Central Intelligence Agency, and the Secretary of Defense 
     shall jointly take such actions as are appropriate to 
     preserve the intelligence capabilities of the United States 
     during the establishment of the National Intelligence 
     Authority under this Act.

     SEC. 333. REORGANIZATION.

       (a) Reorganization.--The National Intelligence Director 
     may, with the approval of the President and after 
     consultation with the department, agency, or element 
     concerned, allocate or reallocate functions among the 
     officers of the National Intelligence Program, and may 
     establish, consolidate, alter, or discontinue organizational 
     units within the Program, but only after providing notice of 
     such action to Congress, which shall include an explanation 
     of the rationale for the action.
       (b) Limitation.--The authority under subsection (a) does 
     not extend to any action inconsistent with law.
       (c) Congressional Review.--An action may be taken under the 
     authority under subsection (a) only with the approval of the 
     following:
       (1) Each of the congressional intelligence committees.
       (2) Each of the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform of the House of 
     Representatives.

[[Page H8816]]

     SEC. 334. NATIONAL INTELLIGENCE DIRECTOR REPORT ON 
                   IMPLEMENTATION OF INTELLIGENCE COMMUNITY 
                   REFORM.

       Not later than one year after the date of the enactment of 
     this Act, the National Intelligence Director shall submit to 
     Congress a report on the progress made in the implementation 
     of this Act, including the amendments made by this Act. The 
     report shall include a comprehensive description of the 
     progress made, and may include such recommendations for 
     additional legislative or administrative action as the 
     Director considers appropriate.

     SEC. 335. COMPTROLLER GENERAL REPORTS ON IMPLEMENTATION OF 
                   INTELLIGENCE COMMUNITY REFORM.

       (a) Reports.--(1) Not later than two years after the date 
     of the enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress a comprehensive report 
     on the implementation of this Act and the amendments made by 
     this Act.
       (2) The Comptroller General may submit to Congress at any 
     time during the two-year period beginning on the date of the 
     enactment of this Act, such reports on the progress made in 
     the implementation of this Act and the amendments made by 
     this Act as the Comptroller General considers appropriate.
       (b) Report Elements.--Each report under subsection (a) 
     shall include the following:
       (1) The assessment of the Comptroller General of the 
     progress made in the implementation of this Act (and the 
     amendments made by this Act) as of the date of such report.
       (2) A description of any delays or other shortfalls in the 
     implementation of this Act that have been identified by the 
     Comptroller General.
       (3) Any recommendations for additional legislative or 
     administrative action that the Comptroller General considers 
     appropriate.
       (c) Agency Cooperation.--Each department, agency, and 
     element of the United States Government shall cooperate with 
     the Comptroller General in the assessment of the 
     implementation of this Act, and shall provide the Comptroller 
     General timely and complete access to relevant documents in 
     accordance with section 716 of title 31, United States Code.

     SEC. 336. 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) Office of the Deputy Director of Central Intelligence 
     for Community Management.--Any reference to the Office of 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 staff of such office within the Office of the National 
     Intelligence Director under section 121.

                       Subtitle D--Effective Date

     SEC. 341. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     Act, and the amendments made by this Act, shall take effect 
     180 days after the date of the enactment of this Act.
       (b) Earlier Effective Date.--In order to ensure the rapid 
     implementation of this Act while simultaneously ensuring a 
     smooth transition that will safeguard the national security 
     of the United States, the President may provide that this Act 
     (including the amendments made by this Act), or one or more 
     particular provisions of this Act (including the amendments 
     made by such provision or provisions), shall take effect on 
     such date that is earlier than the date otherwise provided 
     under subsection (a) as the President shall specify.
       (c) Notification of Effective Dates.--If the President 
     exercises the authority in subsection (b), the President 
     shall--
       (1) notify Congress of the exercise of such authority; and
       (2) publish in the Federal Register notice of the earlier 
     effective date or dates involved, including each provision 
     (and amendment) covered by such earlier effective date.

                       Subtitle E--Other Matters

     SEC. 351. SEVERABILITY.

       If any provision of this Act, or an amendment made by this 
     Act, or the application of such provision to any person or 
     circumstance is held invalid, the remainder of this Act, or 
     the application of such provision to persons or circumstances 
     other than those to which such provision is held invalid, 
     shall not be affected thereby.

     SEC. 352. AUTHORIZATION OF APPROPRIATIONS.

       There are specifically authorized to be appropriated for 
     fiscal year 2005 such sums as may be necessary to carry out 
     this Act and the amendments made by this Act.

                     TITLE IV--INFORMATION SHARING

     SEC. 401. INFORMATION SHARING.

       (a) Definitions.--In this section:
       (1) Network.--The term ``Network'' means the Information 
     Sharing Network described in subsection (c).
       (2) Terrorism information.--The term ``terrorism 
     information'' means all information, whether collected, 
     produced, or distributed by intelligence, law enforcement, 
     military, homeland security, or other activities, relating 
     to--
       (A) the existence, organization, capabilities, plans, 
     intentions, vulnerabilities, means of finance or material 
     support, or activities of foreign or international terrorist 
     groups or individuals, or of domestic groups or individuals 
     involved in transnational terrorism;
       (B) threats posed by such groups or individuals to the 
     United States, United States persons, or United States 
     interests, or to those of other nations;
       (C) communications of or by such groups or individuals; or
       (D) information relating to groups or individuals 
     reasonably believed to be assisting or associated with such 
     groups or individuals.
       (b) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) The effective use of information, from all available 
     sources, is essential to the fight against terror and the 
     protection of our homeland. The biggest impediment to all-
     source analysis, and to a greater likelihood of ``connecting 
     the dots'', is resistance to sharing information.
       (2) The United States Government has access to a vast 
     amount of information, including not only traditional 
     intelligence but also other government databases, such as 
     those containing customs or immigration information. But the 
     United States Government has a weak system for processing and 
     using the information it has.
       (3) In the period leading up to September 11, 2001, there 
     were instances of potentially helpful information that was 
     available but that no person knew to ask for; information 
     that was distributed only in compartmented channels; and 
     information that was requested but could not be shared.
       (4) Current security requirements nurture 
     overclassification and excessive compartmentalization of 
     information among agencies. Each agency's incentive structure 
     opposes sharing, with risks, including criminal, civil, and 
     administrative sanctions, but few rewards for sharing 
     information.
       (5) The current system, in which each intelligence agency 
     has its own security practices, requires a demonstrated 
     ``need to know'' before sharing. This approach assumes that 
     it is possible to know, in advance, who will need to use the 
     information. An outgrowth of the cold war, such a system 
     implicitly assumes that the risk of inadvertent disclosure 
     outweighs the benefits of wider sharing. Such assumptions are 
     no longer appropriate. Although counterintelligence concerns 
     are still real, the costs of not sharing information are also 
     substantial. The current ``need-to-know'' culture of 
     information protection needs to be replaced with a ``need-to-
     share'' culture of integration.
       (6) A new approach to the sharing of terrorism information 
     is urgently needed. An important conceptual model for a new 
     ``trusted information network'' is the Systemwide Homeland 
     Analysis and Resource Exchange (SHARE) Network proposed by a 
     task force of leading professionals assembled by the Markle 
     Foundation and described in reports issued in October 2002 
     and December 2003.
       (7) No single agency can create a meaningful information 
     sharing system on its own. Alone, each agency can only 
     modernize stovepipes, not replace them. Presidential 
     leadership is required to bring about governmentwide change.
       (c) Information Sharing Network.--
       (1) Establishment.--The President shall establish an 
     information sharing network to promote the sharing of 
     terrorism information, in a manner consistent with national 
     security and the protection of privacy and civil liberties.
       (2) Attributes.--The Network shall promote coordination, 
     communication and collaboration of people and information 
     among all relevant Federal departments and agencies, State, 
     tribal, and local authorities, and relevant private sector 
     entities, including owners and operators of critical 
     infrastructure, by using policy guidelines and technologies 
     that support--
       (A) a decentralized, distributed, and coordinated 
     environment that connects existing systems where appropriate 
     and allows users to share information horizontally across 
     agencies, vertically between levels of government, and, as 
     appropriate, with the private sector;
       (B) building on existing systems capabilities at relevant 
     agencies;
       (C) utilizing industry best practices, including minimizing 
     the centralization of data and seeking to use common tools 
     and capabilities whenever possible;
       (D) employing an information rights management approach 
     that controls access to data rather than to whole networks;
       (E) facilitating the sharing of information at and across 
     all levels of security by using policy guidelines and 
     technologies that support writing information that can be 
     broadly shared;
       (F) providing directory services for locating people and 
     information;
       (G) incorporating protections for individuals' privacy and 
     civil liberties;

[[Page H8817]]

       (H) incorporating mechanisms for information security; and
       (I) access controls, authentication and authorization, 
     audits, and other strong mechanisms for information security 
     and privacy guideline enforcement across all levels of 
     security, in order to enhance accountability and facilitate 
     oversight.
       (d) Immediate Steps.--Not later than 90 days after the date 
     of enactment of this Act, the President, through the Director 
     of Management and Budget and in consultation with the 
     National Intelligence Director, the Attorney General, the 
     Secretary of Homeland Security, the Secretary of Defense, the 
     Secretary of State, the Director of the Federal Bureau of 
     Investigation, the Director of the Central Intelligence 
     Agency, and such other Federal officials as the President 
     shall designate, shall--
       (1) establish electronic directory services to assist in 
     locating in the Federal Government terrorism information and 
     people with relevant knowledge about terrorism information; 
     and
       (2) conduct a review of relevant current Federal agency 
     capabilities, including a baseline inventory of current 
     Federal systems that contain terrorism information, the money 
     currently spent to maintain those systems, and identification 
     of other information that should be included in the Network.
       (e) Guidelines.--As soon as possible, but in no event later 
     than 180 days after the date of enactment of this Act, the 
     President shall--
       (1) in consultation with the National Intelligence Director 
     and the Advisory Council on Information Sharing established 
     in subsection (g), issue guidelines for acquiring, accessing, 
     sharing, and using terrorism information, including 
     guidelines to ensure such information is provided in its most 
     shareable form, such as by separating out data from the 
     sources and methods by which they are obtained;
       (2) in consultation with the Privacy and Civil Liberties 
     Oversight Board established under section 901, issue 
     guidelines that--
       (A) protect privacy and civil liberties in the development 
     and use of the Network; and
       (B) shall be made public, unless, and only to the extent 
     that, nondisclosure is clearly necessary to protect national 
     security;
       (3) establish objective, systemwide performance measures to 
     enable the assessment of progress toward achieving full 
     implementation of the Network; and
       (4) require Federal departments and agencies to promote a 
     culture of information sharing by--
       (A) reducing disincentives to information sharing, 
     including overclassification of information and unnecessary 
     requirements for originator approval; and
       (B) providing affirmative incentives for information 
     sharing, such as the incorporation of information sharing 
     performance measures into agency and managerial evaluations, 
     and employee awards for promoting innovative information 
     sharing practices.
       (f) System Design and Implementation Plan.--Not later than 
     270 days after the date of enactment of this Act, the 
     President shall submit to Congress a system design and 
     implementation plan for the Network. The plan shall be 
     prepared by the President through the Director of Management 
     and Budget and in consultation with the National Intelligence 
     Director, the Attorney General, the Secretary of Homeland 
     Security, the Secretary of Defense, the Secretary of State, 
     the Director of the Federal Bureau of Investigation, the 
     Director of the Central Intelligence Agency, and such other 
     Federal officials as the President shall designate, and shall 
     include--
       (1) a description of the parameters of the proposed 
     Network, including functions, capabilities, and resources;
       (2) a description of the technological, legal, and policy 
     issues presented by the creation of the Network described in 
     subsection (c), and the ways in which these issues will be 
     addressed;
       (3)(A) a delineation of the roles of the Federal 
     departments and agencies that will participate in the 
     development of the Network, including--
       (i) identification of any agency that will build the 
     infrastructure needed to operate and manage the Network (as 
     distinct from the individual agency components that are to be 
     part of the Network); and
       (ii) identification of any agency that will operate and 
     manage the Network (as distinct from the individual agency 
     components that are to be part of the Network);
       (B) a provision that the delineation of roles under 
     subparagraph (A) shall--
       (i) be consistent with the authority of the National 
     Intelligence Director, under this Act, to set standards for 
     information sharing and information technology throughout the 
     intelligence community; and
       (ii) recognize the role of the Department of Homeland 
     Security in coordinating with State, tribal, and local 
     officials and the private sector;
       (4) a description of the technological requirements to 
     appropriately link and enhance existing networks and a 
     description of the system design that will meet these 
     requirements;
       (5) a plan, including a time line, for the development and 
     phased implementation of the Network;
       (6) total budget requirements to develop and implement the 
     Network, including the estimated annual cost for each of the 
     5 years following the date of enactment of this Act; and
       (7) proposals for any legislation that the President 
     believes necessary to implement the Network.
       (g) Advisory Council on Information Sharing.--
       (1) Establishment.--There is established an Advisory 
     Council on Information Sharing (in this subsection referred 
     to as the ``Council'').
       (2) Membership.--No more than 25 individuals may serve as 
     members of the Council, which shall include--
       (A) the National Intelligence Director, who shall serve as 
     Chairman of the Council;
       (B) the Secretary of Homeland Security;
       (C) the Secretary of Defense;
       (D) the Attorney General;
       (E) the Secretary of State;
       (F) the Director of the Central Intelligence Agency;
       (G) the Director of the Federal Bureau of Investigation;
       (H) the Director of Management and Budget;
       (I) such other Federal officials as the President shall 
     designate;
       (J) representatives of State, tribal, and local 
     governments, to be appointed by the President;
       (K) individuals from outside government with expertise in 
     relevant technology, security and privacy concepts, to be 
     appointed by the President; and
       (L) individuals who are employed in private businesses or 
     nonprofit organizations that own or operate critical 
     infrastructure, to be appointed by the President.
       (3) Responsibilities.--The Council shall--
       (A) advise the President and the heads of relevant Federal 
     departments and agencies on the implementation of the 
     Network;
       (B) ensure that there is coordination among participants in 
     the Network in the development and implementation of the 
     Network;
       (C) review, on an ongoing basis, policy, legal and 
     technology issues related to the implementation of the 
     Network; and
       (D) establish a dispute resolution process to resolve 
     disagreements among departments and agencies about whether 
     particular terrorism information should be shared and in what 
     manner.
       (4) Inapplicability of Federal Advisory Committee Act.--The 
     Council shall not be subject to the requirements of the 
     Federal Advisory Committee Act (5 U.S.C. App.).
       (5) Informing the public.--The Council shall hold public 
     hearings and otherwise inform the public of its activities, 
     as appropriate and in a manner consistent with the protection 
     of classified information and applicable law.
       (6) Council reports.--Not later than 1 year after the date 
     of enactment of this Act and annually thereafter, the 
     National Intelligence Director, in the capacity of Chairman 
     of the Council, shall submit a report to Congress that shall 
     include--
       (A) a description of the activities and accomplishments of 
     the Council in the preceding year; and
       (B) the number and dates of the meetings held by the 
     Council and a list of attendees at each meeting.
       (h) Presidential Reports.--Not later than 1 year after the 
     date of enactment of this Act, and semiannually thereafter, 
     the President shall submit a report to Congress on the state 
     of the Network. The report shall include--
       (1) a progress report on the extent to which the Network 
     has been implemented, including how the Network has fared on 
     the governmentwide and agency-specific performance measures 
     and whether the performance goals set in the preceding year 
     have been met;
       (2) objective systemwide performance goals for the 
     following year;
       (3) an accounting of how much was spent on the Network in 
     the preceding year;
       (4) actions taken to ensure that agencies procure new 
     technology that is consistent with the Network and 
     information on whether new systems and technology are 
     consistent with the Network;
       (5) the extent to which, in appropriate circumstances, all 
     terrorism watch lists are available for combined searching in 
     real time through the Network and whether there are 
     consistent standards for placing individuals on, and removing 
     individuals from, the watch lists, including the availability 
     of processes for correcting errors;
       (6) the extent to which unnecessary roadblocks or 
     disincentives to information sharing, including the 
     inappropriate use of paper-only intelligence products and 
     requirements for originator approval, have been eliminated;
       (7) the extent to which positive incentives for information 
     sharing have been implemented;
       (8) the extent to which classified information is also made 
     available through the Network, in whole or in part, in 
     unclassified form;
       (9) the extent to which State, tribal, and local 
     officials--
       (A) are participating in the Network;
       (B) have systems which have become integrated into the 
     Network;
       (C) are providing as well as receiving information; and
       (D) are using the Network to communicate with each other;
       (10) the extent to which--

[[Page H8818]]

       (A) private sector data, including information from owners 
     and operators of critical infrastructure, is incorporated in 
     the Network; and
       (B) the private sector is both providing and receiving 
     information;
       (11) where private sector data has been used by the 
     Government or has been incorporated into the Network--
       (A) the measures taken to protect sensitive business 
     information; and
       (B) where the data involves information about individuals, 
     the measures taken to ensure the accuracy of such data;
       (12) the measures taken by the Federal Government to ensure 
     the accuracy of other information on the Network and, in 
     particular, the accuracy of information about individuals;
       (13) an assessment of the Network's privacy protections, 
     including actions taken in the preceding year to implement or 
     enforce privacy protections and a report of complaints 
     received about interference with an individual's privacy or 
     civil liberties; and
       (14) an assessment of the security protections of the 
     Network.
       (i) Agency Plans and Reports.--Each Federal department or 
     agency that possesses or uses terrorism information or that 
     otherwise participates, or expects to participate, in the 
     Network, shall submit to the Director of Management and 
     Budget and to Congress--
       (1) not later than 1 year after the enactment of this Act, 
     a report including--
       (A) a strategic plan for implementation of the Network's 
     requirements within the department or agency;
       (B) objective performance measures to assess the progress 
     and adequacy of the department's or agency's information 
     sharing efforts; and
       (C) budgetary requirements to integrate the department or 
     agency into the Network, including projected annual 
     expenditures for each of the following 5 years following the 
     submission of the reports; and
       (2) annually thereafter, reports including--
       (A) an assessment of the department's or agency's progress 
     in complying with the Network's requirements, including how 
     well the department or agency has performed on the objective 
     measures developed under paragraph (1);
       (B) the department's or agency's expenditures to implement 
     and comply with the Network's requirements in the preceding 
     year;
       (C) the department's or agency's plans for further 
     implementation of the Network in the year following the 
     submission of the report.
       (j) Periodic Assessments.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, and periodically thereafter, the 
     Government Accountability Office shall review and evaluate 
     the implementation of the Network, both generally and, at its 
     discretion, within specific departments and agencies, to 
     determine the extent of compliance with the Network's 
     requirements and to assess the effectiveness of the Network 
     in improving information sharing and collaboration and in 
     protecting privacy and civil liberties, and shall report to 
     Congress on its findings.
       (2) Inspectors general.--The Inspector General in any 
     Federal department or agency that possesses or uses terrorism 
     information or that otherwise participates in the Network 
     shall, at the discretion of the Inspector General--
       (A) conduct audits or investigations to--
       (i) determine the compliance of that department or agency 
     with the Network's requirements; and
       (ii) assess the effectiveness of that department or agency 
     in improving information sharing and collaboration and in 
     protecting privacy and civil liberties; and
       (B) issue reports on such audits and investigations.
       (k) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) $50,000,000 to the Director of Management and Budget to 
     carry out this section for fiscal year 2005; and
       (2) such sums as are necessary to carry out this section in 
     each fiscal year thereafter, to be disbursed and allocated in 
     accordance with the Network system design and implementation 
     plan required by subsection (f).

                     TITLE V--CONGRESSIONAL REFORM

     SEC. 501. FINDINGS.

       Consistent with the report of the National Commission on 
     Terrorist Attacks Upon the United States, Congress makes the 
     following findings:
       (1) The American people are not served well by current 
     congressional rules and resolutions governing intelligence 
     and homeland security oversight.
       (2) A unified Executive Branch effort on fighting terrorism 
     will not be effective unless it is matched by a unified 
     effort in Congress, specifically a strong, stable, and 
     capable congressional committee structure to give the 
     intelligence agencies and Department of Homeland Security 
     sound oversight, support, and leadership.
       (3) The intelligence committees of the Senate and the House 
     of Representatives are not organized to provide strong 
     leadership and oversight for intelligence and 
     counterterrorism.
       (4) Jurisdiction over the Department of Homeland Security, 
     which is scattered among many committees in each chamber, 
     does not allow for the clear authority and responsibility 
     needed for effective congressional oversight.
       (5) Congress should either create a new, joint Senate-House 
     intelligence authorizing committee modeled on the former 
     Joint Committee on Atomic Energy, or establish new 
     intelligence committees in each chamber with combined 
     authorization and appropriations authority.
       (6) Congress should establish a single, principal point of 
     oversight and review in each chamber for the Department of 
     Homeland Security and the report of the National Commission 
     on Terrorist Attacks Upon the United States stated that 
     ``Congressional leaders are best able to judge what committee 
     should have jurisdiction over this department and its 
     duties.''.
       (7) In August 2004, the joint Senate leadership created a 
     bipartisan working group to examine how best to implement the 
     Commission's recommendations with respect to reform of the 
     Senate's oversight of intelligence and homeland security, and 
     directed the working group to begin its work immediately and 
     to present its findings and recommendations to Senate 
     leadership as expeditiously as possible.

     SEC. 502. REORGANIZATION OF CONGRESSIONAL JURISDICTION.

       The 108th Congress shall not adjourn until each House of 
     Congress has adopted the necessary changes to its rules such 
     that, effective the start of the 109th Congress--
       (1) jurisdiction over proposed legislation, messages, 
     petitions, memorials, and other matters relating to the 
     Department of Homeland Security shall be consolidated in a 
     single committee in each House and such committee shall have 
     a nonpartisan staff; and
       (2) jurisdiction over proposed legislation, messages, 
     petitions, memorials, and other matters related to 
     intelligence shall reside in--
       (A) either a joint Senate-House authorizing committee 
     modeled on the former Joint Committee on Atomic Energy, or a 
     committee in each chamber with combined authorization and 
     appropriations authority; and
       (B) regardless of which committee structure is selected, 
     the intelligence committee or committees shall have--
       (i) not more than 9 members in each House, who shall serve 
     without term limits and of which at least 1 each shall also 
     serve on a committee on Armed Services, Judiciary, and 
     Foreign Affairs and at least 1 on a Defense Appropriations 
     subcommittee;
       (ii) authority to issue subpoenas;
       (iii) majority party representation that does not exceed 
     minority party representation by more than 1 member in each 
     House, and a nonpartisan staff; and
       (iv) a subcommittee devoted solely to oversight.

                   TITLE VI--PRESIDENTIAL TRANSITION

     SEC. 601. PRESIDENTIAL TRANSITION.

       (a) Services Provided President-Elect.--Section 3 of the 
     Presidential Transition Act of 1963 (3 U.S.C. 102 note) is 
     amended--
       (1) by adding after subsection (a)(8)(A)(iv) the following:
       ``(v) Activities under this paragraph shall include the 
     preparation of a detailed classified, compartmented summary 
     by the relevant outgoing executive branch officials of 
     specific operational threats to national security; major 
     military or covert operations; and pending decisions on 
     possible uses of military force. This summary shall be 
     provided to the President-elect 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) by redesignating subsection (f) as subsection (g); and
       (3) by adding after subsection (e) the following:
       ``(f)(1) The President-elect should submit to the agency 
     designated by the President under section 601(d) of the 9/11 
     Commission Report Implementation Act of 2004 the names of 
     candidates for high level national security positions through 
     the level of undersecretary of cabinet departments 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 Federal Bureau of Investigation, and any other 
     appropriate agency, shall undertake and complete as 
     expeditiously as possible 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) Sense of Congress Regarding Expedited Consideration of 
     National Security Nominees.--It is the sense of Congress 
     that--
       (1) the President-elect should submit the nominations of 
     candidates for high-level national security positions, 
     through the level of undersecretary of cabinet departments, 
     to the Senate by the date of the inauguration of the 
     President-elect as President; and
       (2) for all national security nominees received by the date 
     of inauguration, the Senate committees to which these 
     nominations are referred should, to the fullest extent 
     possible, complete their consideration of these nominations, 
     and, if such nominations are reported by the committees, the 
     full Senate should vote to confirm or reject these 
     nominations, within 30 days of their submission.
       (c) Security Clearances for Transition Team Members.--

[[Page H8819]]

       (1) Definition.--In this section, the term ``major party'' 
     shall have the meaning given under section 9002(6) of the 
     Internal Revenue Code of 1986.
       (2) In general.--Each major party candidate for President, 
     except a candidate who is the incumbent President, may 
     submit, before the date of the general 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) Completion date.--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 
     election.
       (d) Consolidation of Responsibility for Personnel Security 
     Investigations.--
       (1) Consolidation.--
       (A) In general.--Not later than 45 days after the date of 
     enactment of this Act, the President shall select a single 
     Federal agency to provide and maintain all security 
     clearances for Federal employees and Federal contractor 
     personnel who require access to classified information, 
     including conducting all investigation functions.
       (B) Considerations.--In selecting an agency under this 
     paragraph, the President shall fully consider requiring the 
     transfer of investigation functions to the Office of 
     Personnel Management as described under section 906 of the 
     National Defense Authorization Act for Fiscal Year 2004 (5 
     U.S.C. 1101 note).
       (C) Coordination and consolidation of responsibilities.--
     The Federal agency selected under this paragraph shall--
       (i) take all necessary actions to carry out the 
     responsibilities under this subsection, including entering 
     into a memorandum of understanding with any agency carrying 
     out such responsibilities before the date of enactment of 
     this Act; and
       (ii) identify any legislative actions necessary to further 
     implement this subsection.
       (D) Database.--The agency selected shall, as soon as 
     practicable, establish and maintain a single database for 
     tracking security clearance applications, investigations and 
     eligibility determinations and ensure that security clearance 
     investigations are conducted according to uniform standards, 
     including uniform security questionnaires and financial 
     disclosure requirements.
       (E) Polygraphs.--The President shall direct the agency 
     selected under this paragraph to administer any polygraph 
     examinations on behalf of agencies that require them.
       (2) Access.--The President, acting through the National 
     Intelligence Director, shall--
       (A) establish uniform standards and procedures for the 
     grant of access to classified information to any officer or 
     employee of any agency or department of the United States and 
     to employees of contractors of those agencies and 
     departments;
       (B) ensure the consistent implementation of those standards 
     and procedures throughout such agencies and departments; and
       (C) 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 such elements.

TITLE VII--THE ROLE OF DIPLOMACY, FOREIGN AID, AND THE MILITARY IN THE 
                            WAR ON TERRORISM

     SEC. 701. REPORT ON TERRORIST SANCTUARIES.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Complex terrorist operations require locations that 
     provide such operations sanctuary from interference by 
     government or law enforcement personnel.
       (2) A terrorist sanctuary existed in Afghanistan before 
     September 11, 2001.
       (3) The terrorist sanctuary in Afghanistan provided direct 
     and indirect value to members of al Qaeda who participated in 
     the terrorist attacks on the United States on September 11, 
     2001 and in other terrorist operations.
       (4) Terrorist organizations have fled to some of the least 
     governed and most lawless places in the world to find 
     sanctuary.
       (5) During the twenty-first century, terrorists are 
     focusing on remote regions and failing states as locations to 
     seek sanctuary.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States Government should identify and 
     prioritize locations that are or that could be used as 
     terrorist sanctuaries;
       (2) the United States Government should have a realistic 
     strategy that includes the use of all elements of national 
     power to keep possible terrorists from using a location as a 
     sanctuary; and
       (3) the United States Government should reach out, listen 
     to, and work with countries in bilateral and multilateral 
     fora to prevent locations from becoming sanctuaries and to 
     prevent terrorists from using locations as sanctuaries.
       (c) Strategy on Terrorist Sanctuaries.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall submit 
     to Congress a report that describes a strategy for addressing 
     and, where possible, eliminating terrorist sanctuaries.
       (2) Content.--The report required under this section shall 
     include the following:
       (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 
     Government 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.
       (D) A description of long-term goals and actions designed 
     to reduce the conditions that allow the formation of 
     terrorist sanctuaries, such as supporting and strengthening 
     host governments, reducing poverty, increasing economic 
     development, strengthening civil society, securing borders, 
     strengthening internal security forces, and disrupting 
     logistics and communications networks of terrorist groups.

     SEC. 702. ROLE OF PAKISTAN IN COUNTERING TERRORISM.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) The Government of Pakistan has a critical role to 
     perform in the struggle against Islamist terrorism.
       (2) The endemic poverty, widespread corruption, and 
     frequent ineffectiveness of government in Pakistan create 
     opportunities for Islamist recruitment.
       (3) The poor quality of education in Pakistan is 
     particularly worrying, as millions of families send their 
     children to madrassahs, some of which have been used as 
     incubators for violent extremism.
       (4) The vast unpoliced regions in Pakistan make the country 
     attractive to extremists seeking refuge and recruits and also 
     provide a base for operations against coalition forces in 
     Afghanistan.
       (5) A stable Pakistan, with a government advocating 
     ``enlightened moderation'' in the Muslim world, is critical 
     to stability in the region.
       (6) There is a widespread belief among the people of 
     Pakistan that the United States has long treated them as 
     allies of convenience.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States should make a long-term commitment to 
     assisting in ensuring a promising, stable, and secure future 
     in Pakistan, as long as its leaders remain committed to 
     combatting extremists and implementing a strategy of 
     ``enlightened moderation'';
       (2) the United States aid to Pakistan should be fulsome 
     and, at a minimum, sustained at the fiscal year 2004 levels;
       (3) the United States should support the Government of 
     Pakistan with a comprehensive effort that extends from 
     military aid to support for better education; and
       (4) the United States Government should devote particular 
     attention and resources to assisting in the improvement of 
     the quality of education in Pakistan.
       (c) Report on Support for Pakistan.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall submit 
     to Congress a report on the efforts of the United States 
     Government to support Pakistan and encourage moderation in 
     that country.
       (2) Content.--The report required under this section shall 
     include the following:
       (A) An examination of the desirability of establishing a 
     Pakistan Education Fund to direct resources toward improving 
     the quality of secondary schools in Pakistan.
       (B) Recommendations on the funding necessary to provide 
     various levels of educational support.
       (C) An examination of the current composition and levels of 
     United States military aid to Pakistan, together with any 
     recommendations for changes in such levels and composition 
     that the President considers appropriate.
       (D) An examination of other major types of United States 
     financial support to Pakistan, together with any 
     recommendations for changes in the levels and composition of 
     such support that the President considers appropriate.

     SEC. 703. AID TO AFGHANISTAN.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) The United States and its allies in the international 
     community have made progress in promoting economic and 
     political reform within Afghanistan, including the 
     establishment of a central government with a democratic 
     constitution, a new currency, and a new army, the increase of 
     personal freedom, and the elevation of the standard of living 
     of many Afghans.
       (2) A number of significant obstacles must be overcome if 
     Afghanistan is to become a secure and prosperous democracy, 
     and such a transition depends in particular upon--
       (A) improving security throughout the country;
       (B) disarming and demobilizing militias;
       (C) curtailing the rule of the warlords;
       (D) promoting equitable economic development;
       (E) protecting the human rights of the people of 
     Afghanistan;
       (F) holding elections for public office; and
       (G) ending the cultivation and trafficking of narcotics.

[[Page H8820]]

       (3) The United States and the international community must 
     make a long-term commitment to addressing the deteriorating 
     security situation in Afghanistan and the burgeoning 
     narcotics trade, endemic poverty, and other serious problems 
     in Afghanistan in order to prevent that country from 
     relapsing into a sanctuary for international terrorism.
       (b) Policy.--It shall be the policy of the United States to 
     take the following actions with respect to Afghanistan:
       (1) Working with other nations to obtain long-term 
     security, political, and financial commitments and 
     fulfillment of pledges to the Government of Afghanistan to 
     accomplish the objectives of the Afghanistan Freedom Support 
     Act of 2002 (22 U.S.C. 7501 et seq.), especially to ensure a 
     secure, democratic, and prosperous Afghanistan that respects 
     the rights of its citizens and is free of international 
     terrorist organizations.
       (2) Using the voice and vote of the United States in 
     relevant international organizations, including the North 
     Atlantic Treaty Organization and the United Nations Security 
     Council, to strengthen international commitments to assist 
     the Government of Afghanistan in enhancing security, building 
     national police and military forces, increasing counter-
     narcotics efforts, and expanding infrastructure and public 
     services throughout the country.
       (3) Taking appropriate steps to increase the assistance 
     provided under programs of the Department of State and the 
     United States Agency for International Development throughout 
     Afghanistan and to increase the number of personnel of those 
     agencies in Afghanistan as necessary to support the increased 
     assistance.
       (c) Authorization of Appropriations.--
       (1) Fiscal year 2005.--There are authorized to be 
     appropriated to the President for fiscal year 2005 for 
     assistance for Afghanistan, in addition to any amounts 
     otherwise available for the following purposes, the following 
     amounts:
       (A) For Development Assistance to carry out the provisions 
     of sections 103, 105, and 106 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2151a, 2151c, and 2151d), $400,000,000.
       (B) For the Child Survival and Health Program Fund to carry 
     out the provisions of section 104 of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2151b), $100,000,000.
       (C) For the Economic Support Fund to carry out the 
     provisions of chapter 4 of part II of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2346 et seq.), $550,000,000.
       (D) For International Narcotics and Law Enforcement to 
     carry out the provisions of section 481 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2291), $360,000,000.
       (E) For Nonproliferation, Anti-Terrorism, Demining, and 
     Related Programs, $50,000,000.
       (F) For International Military Education and Training to 
     carry out the provisions of section 541 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2347), $2,000,000.
       (G) For Foreign Military Financing Program grants to carry 
     of the provision of section 23 of the Arms Export Control Act 
     (22 U.S.C. 2763), $880,000,000.
       (H) For Peacekeeping Operations to carry out the provisions 
     of section 551 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2348), $60,000,000.
       (2) Fiscal years 2006 through 2009.--There are authorized 
     to be appropriated to the President for each of fiscal years 
     2006 through 2009 such sums as may be necessary for financial 
     and other assistance to Afghanistan.
       (3) Conditions for assistance.--Assistance provided by the 
     President under this subsection--
       (A) shall be consistent with the Afghanistan Freedom 
     Support Act of 2002; and
       (B) shall be provided with reference to the ``Securing 
     Afghanistan's Future'' document published by the Government 
     of Afghanistan.
       (d) Sense of Congress.--It is the sense of Congress that 
     Congress should, in consultation with the President, update 
     and revise, as appropriate, the Afghanistan Freedom Support 
     Act of 2002.
       (e) Strategy and Support Regarding United States Aid to 
     Afghanistan.--
       (1) Requirement for strategy.--Not later than 180 days 
     after the date of the enactment of this Act, the President 
     shall submit to Congress a 5-year strategy for providing aid 
     to Afghanistan.
       (2) Content.--The strategy required under paragraph (1) 
     shall describe the resources that will be needed during the 
     next 5 years to achieve specific objectives in Afghanistan, 
     including in the following areas:
       (A) Fostering economic development.
       (B) Curtailing the cultivation of opium.
       (C) Achieving internal security and stability.
       (D) Eliminating terrorist sanctuaries.
       (E) Increasing governmental capabilities.
       (F) Improving essential infrastructure and public services.
       (G) Improving public health services.
       (H) Establishing a broad-based educational system.
       (I) Promoting democracy and the rule of law.
       (J) Building national police and military forces.
       (3) Updates.--Beginning not later than 1 year after the 
     strategy is submitted to Congress under paragraph (1), the 
     President shall submit to Congress an annual report--
       (A) updating the progress made toward achieving the goals 
     outlined in the strategy under this subsection; and
       (B) identifying shortfalls in meeting those goals and the 
     resources needed to fully achieve them.

     SEC. 704. THE UNITED STATES-SAUDI ARABIA RELATIONSHIP.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Despite a long history of friendly relations with the 
     United States, Saudi Arabia has been a problematic ally in 
     combating Islamic extremism.
       (2) Cooperation between the Governments of the United 
     States and Saudi Arabia has traditionally been carried out in 
     private.
       (3) The Government of Saudi Arabia has not always responded 
     promptly and fully to United States requests for assistance 
     in the global war on Islamist terrorism.
       (4) Counterterrorism cooperation between the Governments of 
     the United States and Saudi Arabia has improved significantly 
     since the terrorist bombing attacks in Riyadh, Saudi Arabia, 
     on May 12, 2003.
       (5) The Government of Saudi Arabia is now aggressively 
     pursuing al Qaeda and appears to be acting to build a 
     domestic consensus for some internal reforms.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the problems in the relationship between the United 
     States and Saudi Arabia must be confronted openly, and the 
     opportunities for cooperation between the countries must be 
     pursued openly by those governments;
       (2) both governments must build a relationship that they 
     can publicly defend and that is based on other national 
     interests in addition to their national interests in oil;
       (3) this relationship should include a shared commitment to 
     political and economic reform in Saudi Arabia; and
       (4) this relationship should also include a shared interest 
     in greater tolerance and respect for other cultures in Saudi 
     Arabia and a commitment to fight the violent extremists who 
     foment hatred in the Middle East.
       (c) Report.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall submit 
     to Congress a strategy for expanding collaboration with the 
     Government of Saudi Arabia on subjects of mutual interest and 
     of importance to the United States.
       (2) Scope.--As part of this strategy, the President shall 
     consider the utility of undertaking a periodic, formal, and 
     visible high-level dialogue between senior United States 
     Government officials of cabinet level or higher rank and 
     their counterparts in the Government of Saudi Arabia to 
     address challenges in the relationship between the 2 
     governments and to identify areas and mechanisms for 
     cooperation.
       (3) Content.--The strategy under this subsection shall 
     encompass--
       (A) intelligence and security cooperation in the fight 
     against Islamist terrorism;
       (B) ways to advance the Middle East peace process;
       (C) political and economic reform in Saudi Arabia and 
     throughout the Middle East; and
       (D) the promotion of greater tolerance and respect for 
     cultural and religious diversity in Saudi Arabia and 
     throughout the Middle East.

     SEC. 705. EFFORTS TO COMBAT ISLAMIC TERRORISM BY ENGAGING IN 
                   THE STRUGGLE OF IDEAS IN THE ISLAMIC WORLD.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) While support for the United States has plummeted in 
     the Islamic world, many negative views are uninformed, at 
     best, and, at worst, are informed by coarse stereotypes and 
     caricatures.
       (2) Local newspapers in Islamic countries and influential 
     broadcasters who reach Islamic audiences through satellite 
     television often reinforce the idea that the people and 
     Government of the United States are anti-Muslim.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Government of the United States should offer an 
     example of moral leadership in the world that includes a 
     commitment to treat all people humanely, abide by the rule of 
     law, and be generous and caring to the people and governments 
     of other countries;
       (2) the United States should cooperate with governments of 
     Islamic countries to foster agreement on respect for human 
     dignity and opportunity, and to offer a vision of a better 
     future that includes stressing life over death, individual 
     educational and economic opportunity, widespread political 
     participation, contempt for indiscriminate violence, respect 
     for the rule of law, openness in discussing differences, and 
     tolerance for opposing points of view;
       (3) the United States should encourage reform, freedom, 
     democracy, and opportunity for Arabs and Muslims and promote 
     moderation in the Islamic world; and
       (4) the United States should work to defeat extremist 
     ideology in the Islamic world by providing assistance to 
     moderate Arabs and Muslims to combat extremist ideas.
       (c) Report on the Struggle of Ideas in the Islamic World.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall submit 
     to Congress a report that contains a cohesive long-term 
     strategy for the United States Government

[[Page H8821]]

     to help win the struggle of ideas in the Islamic world.
       (2) Content.--The report required under this section shall 
     include the following:
       (A) A description of specific goals related to winning this 
     struggle of ideas.
       (B) A description of the range of tools available to the 
     United States Government to accomplish these goals and the 
     manner in which such tools will be employed.
       (C) A list of benchmarks for measuring success and a plan 
     for linking resources to the accomplishment of these goals.
       (D) A description of any additional resources that may be 
     necessary to help win this struggle of ideas.
       (E) Any recommendations for the creation of, and United 
     States participation in, international institutions for the 
     promotion of democracy and economic diversification in the 
     Islamic world, and intra-regional trade in the Middle East.
       (F) An estimate of the level of United States financial 
     assistance that would be sufficient to convince United States 
     allies and people in the Islamic world that engaging in the 
     struggle of ideas in the Islamic world is a top priority of 
     the United States and that the United States intends to make 
     a substantial and sustained commitment toward winning this 
     struggle.

     SEC. 706. UNITED STATES POLICY TOWARD DICTATORSHIPS.

       (a) Finding.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress finds that short-term gains enjoyed by the United 
     States through cooperation with the world's most repressive 
     and brutal governments are too often outweighed by long-term 
     setbacks for the stature and interests of the United States.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) United States foreign policy should promote the value 
     of life and the importance of individual educational and 
     economic opportunity, encourage widespread political 
     participation, condemn indiscriminate violence, and promote 
     respect for the rule of law, openness in discussing 
     differences among people, and tolerance for opposing points 
     of view; and
       (2) the United States Government must prevail upon the 
     governments of all predominantly Muslim countries, including 
     those that are friends and allies of the United States, to 
     condemn indiscriminate violence, promote the value of life, 
     respect and promote the principles of individual education 
     and economic opportunity, encourage widespread political 
     participation, and promote the rule of law, openness in 
     discussing differences among people, and tolerance for 
     opposing points of view.

     SEC. 707. PROMOTION OF UNITED STATES VALUES THROUGH BROADCAST 
                   MEDIA.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Although the United States has demonstrated and 
     promoted its values in defending Muslims against tyrants and 
     criminals in Somalia, Bosnia, Kosovo, Afghanistan, and Iraq, 
     this message is not always clearly presented in the Islamic 
     world.
       (2) If the United States does not act to vigorously define 
     its message in the Islamic world, the image of the United 
     States will be defined by Islamic extremists who seek to 
     demonize the United States.
       (3) Recognizing that many Arab and Muslim audiences rely on 
     satellite television and radio, the United States Government 
     has launched promising initiatives in television and radio 
     broadcasting to the Arab world, Iran, and Afghanistan.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States must do more to defend and promote 
     its values and ideals to the broadest possible audience in 
     the Islamic world;
       (2) United States efforts to defend and promote these 
     values and ideals are beginning to ensure that accurate 
     expressions of these values reach large audiences in the 
     Islamic world and should be robustly supported;
       (3) the United States Government could and should do more 
     to engage the Muslim world in the struggle of ideas; and
       (4) the United States Government should more intensively 
     employ existing broadcast media in the Islamic world as part 
     of this engagement.
       (c) Report on Outreach Strategy.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the President shall submit 
     to Congress a report on the strategy of the United States 
     Government for expanding its outreach to foreign Muslim 
     audiences through broadcast media.
       (2) Content.--The report shall include the following:
       (A) The initiatives of the Broadcasting Board of Governors 
     and the public diplomacy activities of the Department of 
     State with respect to outreach to foreign Muslim audiences.
       (B) An outline of recommended actions that the United 
     States Government should take to more regularly and 
     comprehensively present a United States point of view through 
     indigenous broadcast media in countries with sizable Muslim 
     populations, including increasing appearances by United 
     States Government officials, experts, and citizens.
       (C) 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 the 
     Muslim world in order to present those programs to a much 
     broader Muslim audience than is currently reached.
       (D) Any recommendations the President may have for 
     additional funding and legislation necessary to achieve the 
     objectives of the strategy.
       (d) Authorizations of Appropriations.--There are authorized 
     to be appropriated to the President to carry out United 
     States Government broadcasting activities under the United 
     States Information and Educational Exchange Act of 1948 (22 
     U.S.C. 1431 et seq.), the United States International 
     Broadcasting Act of 1994 (22 U.S.C. 6201 et seq.), and the 
     Foreign Affairs Reform and Restructuring Act of 1998 (22 
     U.S.C. 6501 et seq.), and to carry out other activities under 
     this section consistent with the purposes of such Acts, the 
     following amounts:
       (1) International broadcasting operations.--For 
     International Broadcasting Operations--
       (A) $717,160,000 for fiscal year 2005; and
       (B) such sums as may be necessary for each of the fiscal 
     years 2006 through 2009.
       (2) Broadcasting capital improvements.--For Broadcasting 
     Capital Improvements--
       (A) $11,040,000 for fiscal year 2005; and
       (B) such sums as may be necessary for each of the fiscal 
     years 2006 through 2009.

     SEC. 708. USE OF UNITED STATES SCHOLARSHIP AND EXCHANGE 
                   PROGRAMS IN THE ISLAMIC WORLD.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Exchange, scholarship, and library programs are 
     effective ways for the United States Government to promote 
     internationally the values and ideals of the United States.
       (2) Exchange, scholarship, and library programs can expose 
     young people from other countries to United States values and 
     offer them knowledge and hope.
       (b) Sense of Congress.--It is the sense of Congress that 
     the United States should expand its exchange, scholarship, 
     and library programs, especially those that benefit people in 
     the Arab and Muslim worlds.
       (c) Definitions.--In this section:
       (1) Eligible country.--The term ``eligible country'' means 
     a country or entity in Africa, the Middle East, Central Asia, 
     South Asia, or Southeast Asia that--
       (A) has a sizable Muslim population; and
       (B) is designated by the Secretary of State as eligible to 
     participate in programs under this section.
       (2) Secretary.--Except as otherwise specifically provided, 
     the term ``Secretary'' means the Secretary of State.
       (3) United states entity.--The term ``United States 
     entity'' means an entity that is organized under the laws of 
     the United States, any State, the District of Columbia, the 
     Commonwealth of Puerto Rico, Guam, the United States Virgin 
     Islands, the Commonwealth of the Northern Mariana Islands, 
     American Samoa, or any other territory or possession of the 
     United States.
       (4) United states sponsoring organization.--The term 
     ``United States sponsoring organization'' means a 
     nongovernmental organization that is--
       (A) based in the United States; and
       (B) controlled by a citizen of the United States or a 
     United States entity that is designated by the Secretary, 
     pursuant to regulations, to carry out a program authorized by 
     subsection (e).
       (d) Expansion of Educational and Cultural Exchanges.--
       (1) Purpose.--The purpose of this subsection is to provide 
     for the expansion of international educational and cultural 
     exchange programs between the United States and eligible 
     countries.
       (2) Specific programs.--In carrying out this subsection, 
     the Secretary is authorized to conduct or initiate programs 
     in eligible countries as follows:
       (A) Fulbright exchange program.--
       (i) Increased number of awards.--The Secretary is 
     authorized to substantially increase the number of awards 
     under the J. William Fulbright Educational Exchange Program.
       (ii) International support for fulbright program.--The 
     Secretary shall work to increase support for the J. William 
     Fulbright Educational Exchange Program in eligible countries 
     in order to enhance academic and scholarly exchanges with 
     those countries.
       (B) Hubert h. humphrey fellowships.--The Secretary is 
     authorized to substantially increase the number of Hubert H. 
     Humphrey Fellowships awarded to candidates from eligible 
     countries.
       (C) Sister institutions programs.--The Secretary is 
     authorized to facilitate the establishment of sister 
     institution programs between cities and municipalities and 
     other institutions in the United States and in eligible 
     countries in order to enhance mutual understanding at the 
     community level.
       (D) Library training exchanges.--The Secretary is 
     authorized to develop a demonstration program, including 
     training in the library sciences, to assist governments in 
     eligible countries to establish or upgrade the public library 
     systems of such countries for the purpose of improving 
     literacy.
       (E) International visitors program.--The Secretary is 
     authorized to expand the number of participants from eligible 
     countries in the International Visitors Program.

[[Page H8822]]

       (F) Youth ambassadors.--
       (i) In general.--The Secretary is authorized to establish a 
     youth ambassadors program for visits by middle and secondary 
     school students from eligible countries to the United States 
     to participate in activities, including cultural and 
     educational activities, that are designed to familiarize 
     participating students with United States society and values.
       (ii) Visits.--The visits of students who are participating 
     in the youth ambassador program under clause (i) shall be 
     scheduled during the school holidays in the home countries of 
     the students and may not exceed 4 weeks.
       (iii) Criteria.--Students selected to participate in the 
     youth ambassador program shall reflect the economic and 
     geographic diversity of eligible countries.
       (G) Education reform.--The Secretary is authorized--
       (i) to expand programs that seek to improve the quality of 
     primary and secondary school systems in eligible countries; 
     and
       (ii) in order to foster understanding of the United States, 
     to promote civic education through teacher exchanges, teacher 
     training, textbook modernization, and other efforts.
       (H) Promotion of religious freedom.--The Secretary is 
     authorized to establish a program to promote dialogue and 
     exchange among leaders and scholars of all faiths from the 
     United States and eligible countries.
       (I) Bridging the digital divide.--The Secretary is 
     authorized to establish a program to help foster access to 
     information technology among underserved populations and by 
     civil society groups in eligible countries.
       (J) People-to-people diplomacy.--The Secretary is 
     authorized to expand efforts to promote United States public 
     diplomacy interests in eligible countries through cultural, 
     arts, entertainment, sports and other exchanges.
       (K) College scholarships.--
       (i) In general.--The Secretary is authorized to establish a 
     program to offer scholarships to permit individuals to attend 
     eligible colleges and universities.
       (ii) Eligibility for program.--To be eligible for the 
     scholarship program, an individual shall be a citizen or 
     resident of an eligible country who has graduated from a 
     secondary school in an eligible country.
       (iii) Eligible college or university defined.--In this 
     subparagraph, the term ``eligible college or university'' 
     means a college or university that is organized under the 
     laws of the United States, a State, or the District of 
     Columbia, accredited by an accrediting agency recognized by 
     the Secretary of Education, and primarily located in, but not 
     controlled by, an eligible country.
       (L) Language training program.--The Secretary is authorized 
     to provide travel and subsistence funding for students who 
     are United States citizens to travel to eligible countries to 
     participate in immersion training programs in languages used 
     in such countries and to develop regulations governing the 
     provision of such funding.
       (e) Secondary School Exchange Program.--
       (1) In general.--The Secretary is authorized to establish 
     an international exchange visitor program, modeled on the 
     Future Leaders Exchange Program established under the FREEDOM 
     Support Act (22 U.S.C. 5801 et seq.), for eligible students 
     to--
       (A) attend public secondary school in the United States;
       (B) live with a host family in the United States; and
       (C) participate in activities designed to promote a greater 
     understanding of United States and Islamic values and 
     culture.
       (2) Eligible student defined.--In this subsection, the term 
     ``eligible student'' means an individual who--
       (A) is a national of an eligible country;
       (B) is at least 15 years of age but not more than 18 years 
     and 6 months of age at the time of enrollment in the program;
       (C) is enrolled in a secondary school in an eligible 
     country;
       (D) has completed not more than 11 years of primary and 
     secondary education, exclusive of kindergarten;
       (E) demonstrates maturity, good character, and scholastic 
     aptitude, and has the proficiency in the English language 
     necessary to participate in the program;
       (F) has not previously participated in an exchange program 
     in the United States sponsored by the Government of the 
     United States; and
       (G) is not prohibited from entering the United States under 
     any provision of the Immigration and Nationality Act (8 
     U.S.C. 1101 et seq.) or any other provision of law related to 
     immigration and nationality.
       (3) Compliance with visa requirements.--An eligible student 
     may not participate in the exchange visitor program 
     authorized by paragraph (1) unless the eligible student has 
     the status of nonimmigrant under section 101(a)(15)(J) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(J)).
       (4) Broad participation.--Whenever appropriate, the 
     Secretary shall make special provisions to ensure the 
     broadest possible participation in the exchange visitor 
     program authorized by paragraph (1), particularly among 
     females and less advantaged citizens of eligible countries.
       (5) Designated exchange visitor program.--The exchange 
     visitor program authorized by paragraph (1) shall be a 
     designated exchange visitor program for the purposes of 
     section 641 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1372).
       (6) Regular reporting to the secretary.--If the Secretary 
     utilizes a United States sponsoring organization to carry out 
     the exchange visitor program authorized by paragraph (1), 
     such United States sponsoring organization shall report 
     regularly to the Secretary on the progress it has made to 
     implement such program.
       (f) Report on Expediting Visas for Participants in 
     Exchange, Scholarship, and Visitors Programs.--
       (1) Requirement.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary and the Secretary of 
     Homeland Security shall submit to Congress a report on 
     expediting the issuance of visas to individuals who are 
     entering the United States for the purpose of participating 
     in a scholarship, exchange, or visitor program authorized in 
     subsection (d) or (e) without compromising the security of 
     the United States.
       (2) Recommendations.--The report required by paragraph (1) 
     shall include--
       (A) the recommendations of the Secretary and the Secretary 
     of Homeland Security, if any, for methods to expedite the 
     processing of requests for such visas; and
       (B) a proposed schedule for implementing any 
     recommendations described in subparagraph (A).
       (g) Authorization of Appropriations.--Of the amounts 
     authorized to be appropriated for educational and cultural 
     exchange programs for fiscal year 2005, there is authorized 
     to be appropriated to the Department of State $60,000,000 to 
     carry out programs under this section.

     SEC. 709. INTERNATIONAL YOUTH OPPORTUNITY FUND.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Education that teaches tolerance, the dignity and value 
     of each individual, and respect for different beliefs is a 
     key element in any global strategy to eliminate Islamist 
     terrorism.
       (2) Education in the Middle East about the world outside 
     that region is weak.
       (3) The United Nations has rightly equated literacy with 
     freedom.
       (4) The international community is moving toward setting a 
     concrete goal of reducing by half the illiteracy rate in the 
     Middle East by 2010, through the implementation of education 
     programs targeting women and girls and programs for adult 
     literacy, and by other means.
       (5) To be effective, the effort to improve education in the 
     Middle East must also include--
       (A) support for the provision of basic education tools, 
     such as textbooks that translate more of the world's 
     knowledge into local languages and local libraries to house 
     such materials; and
       (B) more vocational education in trades and business 
     skills.
       (6) The Middle East can benefit from some of the same 
     programs to bridge the digital divide that already have been 
     developed for other regions of the world.
       (b) International Youth Opportunity Fund.--
       (1) Establishment.--
       (A) In general.--The President shall establish an 
     International Youth Opportunity Fund (hereafter in this 
     section referred to as the ``Fund'').
       (B) International participation.--The President shall seek 
     the cooperation of the international community in 
     establishing and generously supporting the Fund.
       (2) Purpose.--The purpose of the Fund shall be to provide 
     financial assistance for the improvement of public education 
     in the Middle East, including assistance for the construction 
     and operation of primary and secondary schools in countries 
     that have a sizable Muslim population and that commit to 
     sensibly investing their own financial resources in public 
     education.
       (3) Eligibility for assistance.--
       (A) Determination.--The Secretary of State, in coordination 
     with the Administrator of the United States Agency for 
     International Development, shall determine which countries 
     are eligible for assistance through the Fund.
       (B) Criteria.--In determining whether a country is eligible 
     for assistance, the Secretary shall consider whether the 
     government of that country is sensibly investing financial 
     resources in public education and is committed to promoting a 
     system of education that teaches tolerance, the dignity and 
     value of each individual, and respect for different beliefs.
       (4) Use of funds.--Financial assistance provided through 
     the Fund shall be used for expanding literacy programs, 
     providing textbooks, reducing the digital divide, expanding 
     vocational and business education, constructing and operating 
     public schools, establishing local libraries, training 
     teachers in modern education techniques, and promoting public 
     education that teaches tolerance, the dignity and value of 
     each individual, and respect for different beliefs.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, and annually thereafter, the 
     Secretary of State and the Administrator of the United States 
     Agency for International Development shall jointly prepare 
     and submit to Congress a report on the improvement of 
     education in the Middle East.

[[Page H8823]]

       (2) Content.--Reports submitted under this subsection shall 
     include the following:
       (A) A general strategy for working with eligible host 
     governments in the Middle East toward establishing the 
     International Youth Opportunity Fund and related programs.
       (B) A listing of countries that are eligible for assistance 
     under such programs.
       (C) A description of the specific programs initiated in 
     each eligible country and the amount expended in support of 
     such programs.
       (D) A description of activities undertaken to close the 
     digital divide and expand vocational and business skills in 
     eligible countries.
       (E) A listing of activities that could be undertaken if 
     additional funding were provided and the amount of funding 
     that would be necessary to carry out such activities.
       (F) A strategy for garnering programmatic and financial 
     support from international organizations and other countries 
     in support of the Fund and activities related to the 
     improvement of public education in eligible countries.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the President for the establishment of 
     the International Youth Opportunity Fund, in addition to any 
     amounts otherwise available for such purpose, $40,000,000 for 
     fiscal year 2005 and such sums as may be necessary for fiscal 
     years 2006 through 2009.

     SEC. 710. REPORT ON THE USE OF ECONOMIC POLICIES TO COMBAT 
                   TERRORISM.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) While terrorism is not caused by poverty, breeding 
     grounds for terrorism are created by backward economic 
     policies and repressive political regimes.
       (2) Policies that support economic development and reform 
     also have political implications, as economic and political 
     liberties are often linked.
       (3) The United States is working toward creating a Middle 
     East Free Trade Area by 2013 and implementing a free trade 
     agreement with Bahrain, and free trade agreements exist 
     between the United States and Israel and the United States 
     and Jordan.
       (4) Existing and proposed free trade agreements between the 
     United States and Islamic countries are drawing interest from 
     other countries in the Middle East region, and Islamic 
     countries can become full participants in the rules-based 
     global trading system, as the United States considers 
     lowering its barriers to trade with the poorest Arab 
     countries.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) a comprehensive United States strategy to counter 
     terrorism should include economic policies that encourage 
     development, open societies, and opportunities for people to 
     improve the lives of their families and to enhance prospects 
     for their children's future;
       (2) 1 element of such a strategy should encompass the 
     lowering of trade barriers with the poorest countries that 
     have a significant population of Arab or Muslim individuals;
       (3) another element of such a strategy should encompass 
     United States efforts to promote economic reform in countries 
     that have a significant population of Arab or Muslim 
     individuals, including efforts to integrate such countries 
     into the global trading system; and
       (4) given the importance of the rule of law in promoting 
     economic development and attracting investment, the United 
     States should devote an increased proportion of its 
     assistance to countries in the Middle East to the promotion 
     of the rule of law.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the President shall submit to 
     Congress a report on the efforts of the United States 
     Government to encourage development and promote economic 
     reform in countries that have a significant population of 
     Arab or Muslim individuals.
       (2) Content.--The report required under this subsection 
     shall describe--
       (A) efforts to integrate countries with significant 
     populations of Arab or Muslim individuals into the global 
     trading system; and
       (B) actions that the United States Government, acting alone 
     and in partnership with other governments in the Middle East, 
     can take to promote intra-regional trade and the rule of law 
     in the region.

     SEC. 711. MIDDLE EAST PARTNERSHIP INITIATIVE.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated for fiscal year 2005 $200,000,000 for the 
     Middle East Partnership Initiative.
       (b) Sense of Congress.--It is the sense of Congress that, 
     given the importance of the rule of law and economic reform 
     to development in the Middle East, a significant portion of 
     the funds authorized to be appropriated under subsection (a) 
     should be made available to promote the rule of law in the 
     Middle East.

     SEC. 712. COMPREHENSIVE COALITION STRATEGY FOR FIGHTING 
                   TERRORISM.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Almost every aspect of the counterterrorism strategy of 
     the United States relies on international cooperation.
       (2) Since September 11, 2001, the number and scope of 
     United States Government contacts with foreign governments 
     concerning counterterrorism have expanded significantly, but 
     such contacts have often been ad hoc and not integrated as a 
     comprehensive and unified approach.
       (b) International Contact Group on Counterterrorism.--
       (1) Sense of congress.--It is the sense of Congress that 
     the President--
       (A) should seek to engage the leaders of the governments of 
     other countries in a process of advancing beyond separate and 
     uncoordinated national counterterrorism strategies to develop 
     with those other governments a comprehensive coalition 
     strategy to fight Islamist terrorism; and
       (B) to that end, should seek to establish an international 
     counterterrorism policy contact group with the leaders of 
     governments providing leadership in global counterterrorism 
     efforts and governments of countries with sizable Muslim 
     populations, to be used as a ready and flexible international 
     means for discussing and coordinating the development of 
     important counterterrorism policies by the participating 
     governments.
       (2) Authority.--The President is authorized to establish an 
     international counterterrorism policy contact group with the 
     leaders of governments referred to in paragraph (1) for 
     purposes as follows:
       (A) To develop in common with such other countries 
     important policies and a strategy that address the various 
     components of international prosecution of the war on 
     terrorism, including policies and a strategy that address 
     military issues, law enforcement, the collection, analysis, 
     and dissemination of intelligence, issues relating to 
     interdiction of travel by terrorists, counterterrorism-
     related customs issues, financial issues, and issues relating 
     to terrorist sanctuaries.
       (B) To address, to the extent (if any) that the President 
     and leaders of other participating governments determine 
     appropriate, such long-term issues as economic and political 
     reforms that can contribute to strengthening stability and 
     security in the Middle East.

     SEC. 713. DETENTION AND HUMANE TREATMENT OF CAPTURED 
                   TERRORISTS.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Carrying out the global war on terrorism requires the 
     development of policies with respect to the detention and 
     treatment of captured international terrorists that is 
     adhered to by all coalition forces.
       (2) Article 3 of the Convention Relative to the Treatment 
     of Prisoners of War, done at Geneva August 12, 1949 (6 UST 
     3316) was specifically designed for cases in which the usual 
     rules of war do not apply, and the minimum standards of 
     treatment pursuant to such Article are generally accepted 
     throughout the world as customary international law.
       (b) Definitions.--In this section:
       (1) Cruel, inhuman, or degrading treatment or punishment.--
     The term ``cruel, inhuman, or degrading treatment or 
     punishment'' means the cruel, unusual, and inhumane treatment 
     or punishment prohibited by the 5th amendment, 8th amendment, 
     or 14th amendment to the Constitution.
       (2) Geneva conventions.--The term ``Geneva Conventions'' 
     means--
       (A) the Convention for the Amelioration of the Condition of 
     the Wounded and Sick in Armed Forces in the Field, done at 
     Geneva August 12, 1949 (6 UST 3114);
       (B) the Convention for the Amelioration of the Condition of 
     the Wounded, Sick, and Shipwrecked Members of Armed Forces at 
     Sea, done at Geneva August 12, 1949 (6 UST 3217);
       (C) the Convention Relative to the Treatment of Prisoners 
     of War, done at Geneva August 12, 1949 (6 UST 3316); and
       (D) the Convention Relative to the Protection of Civilian 
     Persons in Time of War, done at Geneva August 12, 1949 (6 UST 
     3516).
       (3) Prisoner.--The term ``prisoner'' means a foreign 
     individual captured, detained, interned, or otherwise held in 
     the custody of the United States.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Defense.
       (5) Torture.--The term ``torture'' has the meaning given 
     that term in section 2340 of title 18, United States Code.
       (c) Sense of Congress.--It is the sense of Congress that--
       (1) the United States should engage countries that are 
     participating in the coalition to fight terrorism to develop 
     a common approach toward the detention and humane treatment 
     of captured international terrorists; and
       (2) an approach toward the detention and humane treatment 
     of captured international terrorists developed by the 
     countries participating in the coalition to fight terrorism 
     could draw upon Article 3 of the Convention Relative to the 
     Treatment of Prisoners of War, the principles of which are 
     commonly accepted as minimum basic standards for humane 
     treatment of captured individuals.
       (d) Policy.--It is the policy of the United States--
       (1) to treat any prisoner humanely and in accordance with 
     standards that the Government of the United States would 
     determine to be consistent with international law if such 
     standards were applied to personnel of the United States 
     captured by an enemy in the war on terrorism;

[[Page H8824]]

       (2) if there is any doubt as to whether a prisoner is 
     entitled to the protections afforded by the Geneva 
     Conventions, to provide the prisoner such protections until 
     the status of the prisoner is determined under the procedures 
     authorized by paragraph 1-6 of Army Regulation 190-8 (1997); 
     and
       (3) to expeditiously prosecute cases of terrorism or other 
     criminal acts alleged to have been committed by prisoners in 
     the custody of the United States Armed Forces at Guantanamo 
     Bay, Cuba, in order to avoid the indefinite detention of such 
     prisoners.
       (e) Prohibition on Torture or Cruel, Inhuman, or Degrading 
     Treatment or Punishment.--
       (1) In general.--No prisoner shall be subject to torture or 
     cruel, inhuman, or degrading treatment or punishment that is 
     prohibited by the Constitution, laws, or treaties of the 
     United States.
       (2) Relationship to geneva conventions.--Nothing in this 
     section shall affect the status of any person under the 
     Geneva Conventions or whether any person is entitled to the 
     protections of the Geneva Conventions.
       (f) Rules, Regulations, and Guidelines.--
       (1) Requirement.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary shall prescribe the 
     rules, regulations, or guidelines necessary to ensure 
     compliance with the prohibition in subsection (e)(1) by the 
     members of the Armed Forces of the United States and by any 
     person providing services to the Department of Defense on a 
     contract basis.
       (2) Report to congress.--The Secretary shall submit to 
     Congress the rules, regulations, or guidelines prescribed 
     under paragraph (1), and any modifications to such rules, 
     regulations, or guidelines--
       (A) not later than 30 days after the effective date of such 
     rules, regulations, guidelines, or modifications; and
       (B) in a manner and form that will protect the national 
     security interests of the United States.
       (g) Report on Possible Violations.--
       (1) Requirement.--The Secretary shall submit, on a timely 
     basis and not less than twice each year, a report to Congress 
     on the circumstances surrounding any investigation of a 
     possible violation of the prohibition in subsection (e)(1) by 
     a member of the Armed Forces of the United States or by a 
     person providing services to the Department of Defense on a 
     contract basis.
       (2) Form of report.--A report required under paragraph (1) 
     shall be submitted in a manner and form that--
       (A) will protect the national security interests of the 
     United States; and
       (B) will not prejudice any prosecution of an individual 
     involved in, or responsible for, a violation of the 
     prohibition in subsection (e)(1).
       (h) Report on a Coalition Approach Toward the Detention and 
     Humane Treatment of Captured Terrorists.--Not later than 180 
     days after the date of the enactment of this Act, the 
     President shall submit to Congress a report describing the 
     efforts of the United States Government to develop an 
     approach toward the detention and humane treatment of 
     captured international terrorists that will be adhered to by 
     all countries that are members of the coalition against 
     terrorism.

     SEC. 714. 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. 715. FINANCING OF TERRORISM.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) While efforts to designate and freeze the assets of 
     terrorist financiers have been relatively unsuccessful, 
     efforts to target the relatively small number of al Qaeda 
     financial facilitators have been valuable and successful.
       (2) The death or capture of several important financial 
     facilitators has decreased the amount of money available to 
     al Qaeda, and has made it more difficult for al Qaeda to 
     raise and move money.
       (3) The capture of al Qaeda financial facilitators has 
     provided a windfall of intelligence that can be used to 
     continue the cycle of disruption.
       (4) The United States Government has rightly recognized 
     that information about terrorist money helps in understanding 
     terror networks, searching them out, and disrupting their 
     operations.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the primary weapon in the effort to stop terrorist 
     financing should be the targeting of terrorist financial 
     facilitators by intelligence and law enforcement agencies; 
     and
       (2) efforts to track terrorist financing must be paramount 
     in United States counter-terrorism efforts.
       (c) Report on Terrorist Financing.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the President shall submit to 
     Congress a report evaluating the effectiveness of United 
     States efforts to curtail the international financing of 
     terrorism.
       (2) Contents.--The report required by paragraph (1) shall 
     evaluate and make recommendations on--
       (A) the effectiveness of efforts and methods to track 
     terrorist financing;
       (B) ways to improve international governmental cooperation 
     in this effort;
       (C) ways to improve performance of financial institutions 
     in this effort;
       (D) the adequacy of agency coordination in this effort and 
     ways to improve that coordination; and
       (E) recommendations for changes in law and additional 
     resources required to improve this effort.

          TITLE VIII--TERRORIST TRAVEL AND EFFECTIVE SCREENING

     SEC. 801. COUNTERTERRORIST TRAVEL INTELLIGENCE.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Travel documents are as important to terrorists as 
     weapons since terrorists must travel clandestinely to meet, 
     train, plan, case targets, and gain access to attack sites.
       (2) International travel is dangerous for terrorists 
     because they must surface to pass through regulated channels, 
     present themselves to border security officials, or attempt 
     to circumvent inspection points.
       (3) Terrorists use evasive, but detectable, methods to 
     travel, such as altered and counterfeit passports and visas, 
     specific travel methods and routes, liaisons with corrupt 
     government officials, human smuggling networks, supportive 
     travel agencies, and immigration and identity fraud.
       (4) Before September 11, 2001, no Federal agency 
     systematically analyzed terrorist travel strategies. If an 
     agency had done so, the agency could have discovered the ways 
     in which the terrorist predecessors to al Qaeda had been 
     systematically, but detectably, exploiting weaknesses in our 
     border security since the early 1990s.
       (5) Many of the hijackers were potentially vulnerable to 
     interception by border authorities. Analyzing their 
     characteristic travel documents and travel patterns could 
     have allowed authorities to intercept some of the hijackers 
     and a more effective use of information available in 
     Government databases could have identified some of the 
     hijackers.
       (6) The routine operations of our immigration laws and the 
     aspects of those laws not specifically aimed at protecting 
     against terrorism inevitably shaped al Qaeda's planning and 
     opportunities.

[[Page H8825]]

       (7) New insights into terrorist travel gained since 
     September 11, 2001, have not been adequately integrated into 
     the front lines of border security.
       (8) The small classified terrorist travel intelligence 
     collection and analysis program currently in place has 
     produced useful results and should be expanded.
       (b) Strategy.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to Congress unclassified and classified versions 
     of a strategy for combining terrorist travel intelligence, 
     operations, and law enforcement into a cohesive effort to 
     intercept terrorists, find terrorist travel facilitators, and 
     constrain terrorist mobility domestically and 
     internationally. The report to Congress should include a 
     description of the actions taken to implement the strategy.
       (2) Accountability.--The strategy submitted under paragraph 
     (1) shall--
       (A) describe a program for collecting, analyzing, 
     disseminating, and utilizing information and intelligence 
     regarding terrorist travel tactics and methods; and
       (B) outline which Federal intelligence, diplomatic, and law 
     enforcement agencies will be held accountable for 
     implementing each element of the strategy.
       (3) Coordination.--The strategy shall be developed in 
     coordination with all relevant Federal agencies, including--
       (A) the National Counterterrorism Center;
       (B) the Department of Transportation;
       (C) the Department of State;
       (D) the Department of the Treasury;
       (E) the Department of Justice;
       (F) the Department of Defense;
       (G) the Federal Bureau of Investigation;
       (H) the Drug Enforcement Agency; and
       (I) the agencies that comprise the intelligence community.
       (4) Contents.--The strategy shall address--
       (A) the intelligence and law enforcement collection, 
     analysis, operations, and reporting required to identify and 
     disrupt terrorist travel practices and trends, and the 
     terrorist travel facilitators, document forgers, human 
     smugglers, travel agencies, and corrupt border and 
     transportation officials who assist terrorists;
       (B) the initial and ongoing training and training materials 
     required by consular, border, and immigration officials to 
     effectively detect and disrupt terrorist travel described 
     under subsection (c)(3);
       (C) the new procedures required and actions to be taken to 
     integrate existing counterterrorist travel and mobility 
     intelligence into border security processes, including 
     consular, port of entry, border patrol, maritime, immigration 
     benefits, and related law enforcement activities;
       (D) the actions required to integrate current terrorist 
     mobility intelligence into military force protection 
     measures;
       (E) the additional assistance to be given to the 
     interagency Human Smuggling and Trafficking Center for 
     purposes of combatting terrorist travel, including further 
     developing and expanding enforcement and operational 
     capabilities that address terrorist travel;
       (F) the additional resources to be given to the Directorate 
     of Information and Analysis and Infrastructure Protection to 
     aid in the sharing of information between the frontline 
     border agencies of the Department of Homeland Security and 
     classified and unclassified sources of counterterrorist 
     travel intelligence and information elsewhere in the Federal 
     Government, including the Human Smuggling and Trafficking 
     Center;
       (G) the development and implementation of procedures to 
     enable the Human Smuggling and Trafficking Center to timely 
     receive terrorist travel intelligence and documentation 
     obtained at consulates and ports of entry, and by law 
     enforcement officers and military personnel;
       (H) the use of foreign and technical assistance to advance 
     border security measures and law enforcement operations 
     against terrorist travel facilitators;
       (I) the development of a program to provide each consular, 
     port of entry, and immigration benefits office with a 
     counterterrorist travel expert trained and authorized to use 
     the relevant authentication technologies and cleared to 
     access all appropriate immigration, law enforcement, and 
     intelligence databases;
       (J) the feasibility of digitally transmitting passport 
     information to a central cadre of specialists until such time 
     as experts described under subparagraph (I) are available at 
     consular, port of entry, and immigration benefits offices; 
     and
       (K) granting consular officers the security clearances 
     necessary to access law enforcement sensitive databases.
       (c) Frontline Counterterrorist Travel Technology and 
     Training.--
       (1) Technology acquisition and dissemination plan.--Not 
     later than 180 days after the date of enactment of this Act, 
     the Secretary of Homeland Security, in conjunction with the 
     Secretary of State, shall submit to Congress a plan 
     describing how the Department of Homeland Security and the 
     Department of State can 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.
       (2) Contents of plan.--The plan submitted under paragraph 
     (1) shall--
       (A) outline the timetable needed to acquire and deploy the 
     authentication technologies;
       (B) identify the resources required to--
       (i) fully disseminate these technologies; and
       (ii) train personnel on use of these technologies; and
       (C) address the feasibility of using these technologies to 
     screen every passport submitted for identification purposes 
     to a United States consular, border, or immigration official.
       (3) Training program.--
       (A) In general.--The Secretary of Homeland Security and the 
     Secretary of State shall develop and implement an initial and 
     annual training program for consular, border, and immigration 
     officials to teach such officials how to effectively detect 
     and disrupt terrorist travel. The Secretary may assist State, 
     local, and tribal governments, and private industry, in 
     establishing training programs related to terrorist travel 
     intelligence.
       (B) Training topics.--The training developed under this 
     paragraph shall include training in--
       (i) methods for identifying fraudulent documents;
       (ii) detecting terrorist indicators on travel documents;
       (iii) recognizing travel patterns, tactics, and behaviors 
     exhibited by terrorists;
       (iv) the use of information contained in available 
     databases and data systems and procedures to maintain the 
     accuracy and integrity of such systems; and
       (v) other topics determined necessary by the Secretary of 
     Homeland Security and the Secretary of State.
       (C) Certification.--Not later than 1 year after the date of 
     enactment of this Act--
       (i) the Secretary of Homeland Security shall certify to 
     Congress that all border and immigration officials have 
     received training under this paragraph; and
       (ii) the Secretary of State shall certify to Congress that 
     all consular officers have received training under this 
     paragraph.
       (4) 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 subsection.
       (d) Enhancing Classified Counterterrorist Travel Efforts.--
       (1) In general.--The National Intelligence Director shall 
     significantly increase resources and personnel to the small 
     classified program that collects and analyzes intelligence on 
     terrorist travel.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated for each of the fiscal years 2005 through 
     2009 such sums as may be necessary to carry out this 
     subsection.

     SEC. 802. INTEGRATED SCREENING SYSTEM.

       (a) In General.--The Secretary of Homeland Security shall 
     develop a plan for a comprehensive integrated screening 
     system.
       (b) Design.--The system planned under subsection (a) shall 
     be designed to--
       (1) encompass an integrated network of screening points 
     that includes the Nation's border security system, 
     transportation system, and critical infrastructure or 
     facilities that the Secretary determines need to be protected 
     against terrorist attack;
       (2) build upon existing border enforcement and security 
     activities, and to the extent practicable, private sector 
     security initiatives, in a manner that will enable the 
     utilization of a range of security check points in a 
     continuous and consistent manner throughout the Nation's 
     screening system;
       (3) allow access to government databases to detect 
     terrorists; and
       (4) utilize biometric identifiers that the Secretary 
     determines to be appropriate and feasible.
       (c) Standards for Screening Procedures.--
       (1) Authorization.--The Secretary may promulgate standards 
     for screening procedures for--
       (A) entering and leaving the United States;
       (B) accessing Federal facilities that the Secretary 
     determines need to be protected against terrorist attack;
       (C) accessing critical infrastructure that the Secretary 
     determines need to be protected against terrorist attack; and
       (D) accessing modes of transportation that the Secretary 
     determines need to be protected against terrorist attack.
       (2) Scope.--Standards prescribed under this subsection may 
     address a range of factors, including technologies required 
     to be used in screening and requirements for secure 
     identification.
       (3) Requirements.--In promulgating standards for screening 
     procedures, the Secretary shall--
       (A) consider and incorporate appropriate civil liberties 
     and privacy protections;
       (B) comply with the Administrative Procedure Act; and
       (C) consult with other Federal, State, local, and tribal 
     governments, and other interested parties, as appropriate.
       (4) Limitation.--This section does not confer to the 
     Secretary new statutory authority, or alter existing 
     authorities, over systems, critical infrastructure, and 
     facilities.
       (5) Notification.--If the Secretary determines that 
     additional regulatory authority is needed to fully implement 
     the plan for an integrated screening system, the Secretary 
     shall immediately notify Congress.
       (d) Compliance.--The Secretary may issue regulations to 
     ensure compliance with the standards promulgated under this 
     section.

[[Page H8826]]

       (e) Consultation.--For those systems, critical 
     infrastructure, and facilities that the Secretary determines 
     need to be protected against terrorist attack, the Secretary 
     shall consult with other Federal agencies, State, local, and 
     tribal governments, and the private sector to ensure the 
     development of consistent standards and consistent 
     implementation of the integrated screening system.
       (f) Biometric Identifiers.--In carrying out this section, 
     the Secretary shall continue to review biometric technologies 
     and existing Federal and State programs using biometric 
     identifiers. Such review shall consider the accuracy rate of 
     available technologies.
       (g) Implementation.--
       (1) Phase i.--The Secretary shall--
       (A) issue standards for driver's licenses, personal 
     identification cards, and birth certificates, as required 
     under section 806;
       (B) develop plans for, and begin implementation of, a 
     single program for registered travelers to expedite travel 
     across the border, as required under section 803(e);
       (C) continue the implementation of a biometric exit and 
     entry data system that links to relevant databases and data 
     systems, as required by subsections (b) and (c) of section 
     803 and other existing authorities;
       (D) centralize the ``no-fly'' and ``automatic-selectee'' 
     lists, making use of improved terrorists watch lists, as 
     required by section 903;
       (E) develop plans, in consultation with other relevant 
     agencies, for the sharing of terrorist information with 
     trusted governments, as required by section 805;
       (F) initiate any other action determined appropriate by the 
     Secretary to facilitate the implementation of this paragraph; 
     and
       (G) report to Congress on the implementation of phase I, 
     including--
       (i) the effectiveness of actions taken, the efficacy of 
     resources expended, compliance with statutory provisions, and 
     safeguards for privacy and civil liberties; and
       (ii) plans for the development and implementation of phases 
     II and III.
       (2) Phase ii.--The Secretary shall--
       (A) complete the implementation of a single program for 
     registered travelers to expedite travel across the border, as 
     required by section 803(e);
       (B) complete the implementation of a biometric entry and 
     exit data system that links to relevant databases and data 
     systems, as required by subsections (b) and (c) of section 
     803, and other existing authorities;
       (C) in cooperation with other relevant agencies, engage in 
     dialogue with foreign governments to develop plans for the 
     use of common screening standards;
       (D) initiate any other action determined appropriate by the 
     Secretary to facilitate the implementation of this paragraph; 
     and
       (E) report to Congress on the implementation of phase II, 
     including--
       (i) the effectiveness of actions taken, the efficacy of 
     resources expended, compliance with statutory provisions, and 
     safeguards for privacy and civil liberties; and
       (ii) the plans for the development and implementation of 
     phase III.
       (3) Phase iii.--The Secretary shall--
       (A) finalize and deploy the integrated screening system 
     required by subsection (a);
       (B) in cooperation with other relevant agencies, promote 
     the implementation of common screening standards by foreign 
     governments; and
       (C) report to Congress on the implementation of Phase III, 
     including--
       (i) the effectiveness of actions taken, the efficacy of 
     resources expended, compliance with statutory provisions, and 
     safeguards for privacy and civil liberties; and
       (ii) the plans for the ongoing operation of the integrated 
     screening system.
       (h) Report.--After phase III has been implemented, the 
     Secretary shall submit a report to Congress every 3 years 
     that describes the ongoing operation of the integrated 
     screening system, including its effectiveness, efficient use 
     of resources, compliance with statutory provisions, and 
     safeguards for privacy and civil liberties.
       (i) Authorizations.--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. 803. 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 (USA PATRIOT ACT) Act of 2001 (Public Law 107-56).
       (2) Report.--Not later than 180 days after the date of 
     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 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

[[Page H8827]]

       (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 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the Department's progress on the 
     development and implementation of the plan required by this 
     subsection.
       (e) 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. 804. TRAVEL DOCUMENTS.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress finds that--
       (1) existing procedures allow many individuals to enter the 
     United States by showing minimal identification or without 
     showing any identification;
       (2) the planning for the terrorist attacks of September 11, 
     2001, demonstrates that terrorists study and exploit United 
     States vulnerabilities; and
       (3) additional safeguards are needed to ensure that 
     terrorists cannot enter the United States.
       (b) Biometric Passports.--
       (1) Development of plan.--The Secretary of Homeland 
     Security, in consultation with the Secretary of State, shall 
     develop and implement a plan as expeditiously as possible to 
     require biometric passports or other identification deemed by 
     the Secretary to be at least as secure as a biometric 
     passport, for all travel into the United States by United 
     States citizens and by categories of individuals for whom 
     documentation requirements have previously been waived under 
     section 212(d)(4)(B) of the Immigration and Nationality Act 
     (8 U.S.C. 1182(d)(4)(B)).
       (2) Requirement to produce documentation.--The plan 
     developed under paragraph (1) shall require all United States 
     citizens, and categories of individuals for whom 
     documentation requirements have previously been waived under 
     section 212(d)(4)(B) of such Act, to carry and produce the 
     documentation described in paragraph (1) when traveling from 
     foreign countries into the United States.
       (c) Technical and Conforming Amendments.--After the 
     complete implementation of the plan described in subsection 
     (b)--
       (1) the Secretary of State and the Attorney General may no 
     longer exercise discretion under section 212(d)(4)(B) of such 
     Act to waive documentary requirements for travel into the 
     United States; and
       (2) the President may no longer exercise discretion under 
     section 215(b) of such Act to waive documentary requirements 
     for United States citizens departing from or entering, or 
     attempting to depart from or enter, the United States, unless 
     the Secretary of State determines that the alternative 
     documentation that is the basis for the waiver of the 
     documentary requirement is at least as secure as a biometric 
     passport.
       (d) Transit Without Visa Program.--The Secretary of State 
     shall not use any authorities granted under section 
     212(d)(4)(C) of such Act until the Secretary, in conjunction 
     with the Secretary of Homeland Security, completely 
     implements a security plan to fully ensure secure transit 
     passage areas to prevent aliens proceeding in immediate and 
     continuous transit through the United States from illegally 
     entering the United States.

     SEC. 805. EXCHANGE OF TERRORIST INFORMATION.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress finds that--
       (1) the exchange of terrorist information with other 
     countries, consistent with privacy requirements, along with 
     listings of lost and stolen passports, will have immediate 
     security benefits; and
       (2) the further away from the borders of the United States 
     that screening occurs, the more security benefits the United 
     States will gain.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States Government should exchange terrorist 
     information with trusted allies;
       (2) the United States Government should move toward real-
     time verification of passports with issuing authorities;
       (3) where practicable the United States Government should 
     conduct screening before a passenger departs on a flight 
     destined for the United States;
       (4) the United States Government should work with other 
     countries to ensure effective inspection regimes at all 
     airports;
       (5) the United States Government should work with other 
     countries to improve passport standards and provide foreign 
     assistance to countries that need help making the transition 
     to the global standard for identification; and
       (6) the Department of Homeland Security, in coordination 
     with the Department of State and other agencies, should 
     implement the initiatives called for in this subsection.
       (c) Report Regarding the Exchange of Terrorist 
     Information.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of State and the 
     Secretary of Homeland Security, working with other agencies, 
     shall submit to the appropriate committees of Congress a 
     report on Federal efforts to collaborate with allies of the 
     United States in the exchange of terrorist information.
       (2) Contents.--The report shall outline--
       (A) strategies for increasing such collaboration and 
     cooperation;
       (B) progress made in screening passengers before their 
     departure to the United States; and
       (C) efforts to work with other countries to accomplish the 
     goals described under this section.

     SEC. 806. MINIMUM STANDARDS FOR IDENTIFICATION-RELATED 
                   DOCUMENTS.

       (a) In General.--Subtitle H of title VIII of the Homeland 
     Security Act of 2002 (6 U.S.C. 451 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 890A. MINIMUM STANDARDS FOR BIRTH CERTIFICATES.

       ``(a) Definition.--In this section, the term `birth 
     certificate' means a certificate of birth--
       ``(1) for an individual (regardless of where born)--
       ``(A) who is a citizen or national of the United States at 
     birth; and
       ``(B) whose birth is registered in the United States; and
       ``(2) that--
       ``(A) 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
       ``(B) 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.
       ``(b) Standards for Acceptance by Federal Agencies.--
       ``(1) In general.--Beginning 2 years after the promulgation 
     of minimum standards under paragraph (2), no Federal agency 
     may accept a birth certificate for any official purpose 
     unless the certificate conforms to such standards.
       ``(2) Minimum standards.--Within 1 year after the date of 
     enactment of this section, the Secretary shall by regulation 
     establish minimum standards for birth certificates for use by 
     Federal agencies for official purposes that--
       ``(A) at a minimum, shall require certification of the 
     birth certificate by the State or local government custodian 
     of record that issued the certificate, and shall require the 
     use of safety paper, the seal of the issuing custodian of 
     record, and other features designed to prevent tampering, 
     counterfeiting, or otherwise duplicating the birth 
     certificate for fraudulent purposes;
       ``(B) shall establish requirements for proof and 
     verification of identity as a condition of issuance of a 
     birth certificate, with additional security measures for the 
     issuance of a birth certificate for a person who is not the 
     applicant;
       ``(C) may not require a single design to which birth 
     certificates issued by all States must conform; and
       ``(D) shall accommodate the differences between the States 
     in the manner and form in which birth records are stored and 
     birth certificates are produced from such records.
       ``(3) Consultation with government agencies.--In 
     promulgating the standards required by paragraph (2), the 
     Secretary shall consult with State vital statistics offices 
     and appropriate Federal agencies.
       ``(4) Extension of effective date.--The Secretary may 
     extend the 2-year date under paragraph (1) by up to 2 
     additional years for birth certificates issued before that 2-
     year date if the Secretary determines that the States are 
     unable to comply with such date after making reasonable 
     efforts to do so.
       ``(c) Grants to States.--
       ``(1) Assistance in meeting federal standards.--
       ``(A) In general.--Beginning on the date a final regulation 
     is promulgated under subsection (b)(2), the Secretary shall 
     make grants to States to assist them in conforming to the 
     minimum standards for birth certificates set forth in the 
     regulation.
       ``(B) Allocation of grants.--The Secretary shall make 
     grants to States under this paragraph based on the proportion 
     that the estimated average annual number of birth 
     certificates issued by a State applying for a grant bears to 
     the estimated average annual number of birth certificates 
     issued by all States.
       ``(2) Assistance in matching birth and death records.--
       ``(A) In general.--The Secretary, in coordination with 
     other appropriate Federal agencies, shall make grants to 
     States to assist them in--
       ``(i) computerizing their birth and death records;
       ``(ii) developing the capability to match birth and death 
     records within each State and among the States; and
       ``(iii) noting the fact of death on the birth certificates 
     of deceased persons.
       ``(B) Allocation of grants.--The Secretary shall make 
     grants to States under this paragraph based on the proportion 
     that the estimated annual average number of birth and death 
     records created by a State applying for a grant bears to the 
     estimated annual average number of birth and death records 
     originated by all States.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to

[[Page H8828]]

     the Secretary for each of the fiscal years 2005 through 2009 
     such sums as may be necessary to carry out this section.

     ``SEC. 890B. DRIVER'S LICENSES AND PERSONAL IDENTIFICATION 
                   CARDS.

       ``(a) Definitions.--In this section:
       ``(1) Driver's license.--The term `driver's license' means 
     a motor vehicle operator's license as defined in section 
     30301(5) of title 49, United States Code.
       ``(2) Personal identification card.--The term `personal 
     identification card' means an identification document (as 
     defined in section 1028(d)(3) of title 18, United States 
     Code) issued by a State.
       ``(b) Standards for Acceptance by Federal Agencies.--
       ``(1) In general.--
       ``(A) Limitation on acceptance.--No Federal agency may 
     accept, for any official purpose, a driver's license or 
     personal identification card issued by a State more than 2 
     years after the promulgation of the minimum standards under 
     paragraph (2) unless the driver's license or personal 
     identification card conforms to such minimum standards.
       ``(B) Date for conformance.--The Secretary shall establish 
     a date after which no driver's license or personal 
     identification card shall be accepted by a Federal agency for 
     any official purpose unless such driver's license or personal 
     identification card conforms to the minimum standards 
     established under paragraph (2). The date shall be as early 
     as the Secretary determines it is practicable for the States 
     to comply with such date with reasonable efforts.
       ``(2) Minimum standards.--Within 1 year after the date of 
     enactment of this section, the Secretary shall by regulation 
     establish minimum standards for driver's licenses or personal 
     identification cards issued by a State for use by Federal 
     agencies for identification purposes that shall include--
       ``(A) standards for documentation required as proof of 
     identity of an applicant for a driver's license or 
     identification card;
       ``(B) standards for third-party verification of the 
     authenticity of documents used to obtain a driver's license 
     or identification card;
       ``(C) standards for the processing of applications for 
     driver's licenses and identification cards to prevent fraud;
       ``(D) security standards to ensure that driver's licenses 
     and identification cards are--
       ``(i) resistant to tampering, alteration, or 
     counterfeiting; and
       ``(ii) capable of accommodating a digital photograph or 
     other unique identifier; and
       ``(E) a requirement that a State confiscate a driver's 
     license or identification card if any component or security 
     feature of the license or identification card is compromised.
       ``(3) Content of regulations.--The regulations required by 
     paragraph (2)--
       ``(A) shall facilitate communication between the chief 
     driver licensing official of a State and an appropriate 
     official of a Federal agency to verify the authenticity of 
     documents issued by such Federal agency and presented to 
     prove the identity of an individual;
       ``(B) may not directly or indirectly infringe on a State's 
     power to set eligibility criteria for obtaining a driver's 
     license or identification card from that State; and
       ``(C) may not require a State to comply with any such 
     regulation that conflicts with or otherwise interferes with 
     the full enforcement of such eligibility criteria by the 
     State.
       ``(4) Consultation with government agencies.--In 
     promulgating the standards required by paragraph (2), the 
     Secretary shall consult with the Department of 
     Transportation, the chief driver licensing official of each 
     State, any other State organization that issues personal 
     identification cards, and any organization, determined 
     appropriate by the Secretary, that represents the interests 
     of the States.
       ``(c) Grants to States.--
       ``(1) Assistance in meeting federal standards.--Beginning 
     on the date a final regulation is promulgated under 
     subsection (b)(2), the Secretary shall make grants to States 
     to assist them in conforming to the minimum standards for 
     driver's licenses and personal identification cards set forth 
     in the regulation.
       ``(2) Allocation of grants.--The Secretary shall make 
     grants to States under this subsection based on the 
     proportion that the estimated average annual number of 
     driver's licenses and personal identification cards issued by 
     a State applying for a grant bears to the average annual 
     number of such documents issued by all States.
       ``(d) 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 section.

     ``SEC. 890C. SOCIAL SECURITY CARDS.

       ``(a) Security Enhancements.--The Commissioner of Social 
     Security shall--
       ``(1) within 180 days after the date of enactment of this 
     section, issue regulations to restrict the issuance of 
     multiple replacement social security cards to any individual 
     to minimize fraud;
       ``(2) within 1 year after the date of enactment of this 
     section, require independent verification of all records 
     provided by an applicant for an original social security 
     card, other than for purposes of enumeration at birth; and
       ``(3) within 18 months after the date of enactment of this 
     section, add death, fraud, and work authorization indicators 
     to the social security number verification system.
       ``(b) Interagency Security Task Force.--The Secretary and 
     the Commissioner of Social Security shall form an interagency 
     task force for the purpose of further improving the security 
     of social security cards and numbers. Within 1 year after the 
     date of enactment of this section, the task force shall 
     establish security requirements, including--
       ``(1) standards for safeguarding social security cards from 
     counterfeiting, tampering, alteration, and theft;
       ``(2) requirements for verifying documents submitted for 
     the issuance of replacement cards; and
       ``(3) actions to increase enforcement against the 
     fraudulent use or issuance of social security numbers and 
     cards.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Commissioner of Social 
     Security for each of the fiscal years 2005 through 2009, such 
     sums as may be necessary to carry out this section.''.
       (b) Technical and Conforming Amendments.--
       (1) Section 656 of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (5 U.S.C. 301 note) is 
     repealed.
       (2) Section 1(b) of the Homeland Security Act of 2002 
     (Public Law 107-296; 116 Stat. 2135) is amended by inserting 
     after the item relating to section 890 the following:

``Sec. 890A. Minimum standards for birth certificates.
``Sec. 890B. Driver's licenses and personal identification cards.
``Sec. 890C. Social security cards.''.

                   TITLE IX--TRANSPORTATION SECURITY

     SEC. 901. DEFINITIONS.

       In this title, the terms ``air carrier'', ``air 
     transportation'', ``aircraft'', ``airport'', ``cargo'', 
     ``foreign air carrier'', and ``intrastate air 
     transportation'' have the meanings given such terms in 
     section 40102 of title 49, United States Code.

     SEC. 902. NATIONAL STRATEGY FOR TRANSPORTATION SECURITY.

       (a) Requirement for Strategy.--
       (1) Responsibilities of secretary of homeland security.--
     The Secretary of Homeland Security shall--
       (A) develop and implement a National Strategy for 
     Transportation Security; and
       (B) revise such strategy whenever necessary to improve or 
     to maintain the currency of the strategy or whenever the 
     Secretary otherwise considers it appropriate to do so.
       (2) Consultation with secretary of transportation.--The 
     Secretary of Homeland Security shall consult with the 
     Secretary of Transportation in developing and revising the 
     National Strategy for Transportation Security under this 
     section.
       (b) Content.--The National Strategy for Transportation 
     Security shall include the following matters:
       (1) An identification and evaluation of the transportation 
     assets within the United States that, in the interests of 
     national security, must be protected from attack or 
     disruption by terrorist or other hostile forces, including 
     aviation, bridge and tunnel, commuter rail and ferry, 
     highway, maritime, pipeline, rail, urban mass transit, and 
     other public transportation infrastructure assets that could 
     be at risk of such an attack or disruption.
       (2) The development of the risk-based priorities, and 
     realistic deadlines, for addressing security needs associated 
     with those assets.
       (3) The most practical and cost-effective means of 
     defending those assets against threats to their security.
       (4) A forward-looking strategic plan that assigns 
     transportation security roles and missions to departments and 
     agencies of the Federal Government (including the Armed 
     Forces), State governments (including the Army National Guard 
     and Air National Guard), local governments, and public 
     utilities, and establishes mechanisms for encouraging private 
     sector cooperation and participation in the implementation of 
     such plan.
       (5) A comprehensive delineation of response and recovery 
     responsibilities and issues regarding threatened and executed 
     acts of terrorism within the United States.
       (6) A prioritization of research and development objectives 
     that support transportation security needs, giving a higher 
     priority to research and development directed toward 
     protecting vital assets.
       (7) A budget and recommendations for appropriate levels and 
     sources of funding to meet the objectives set forth in the 
     strategy.
       (c) Submissions to Congress.--
       (1) The national strategy.--
       (A) Initial strategy.--The Secretary of Homeland Security 
     shall submit the National Strategy for Transportation 
     Security developed under this section to Congress not later 
     than April 1, 2005.
       (B) Subsequent versions.--After 2005, the Secretary of 
     Homeland Security shall submit the National Strategy for 
     Transportation Security, including any revisions, to Congress 
     not less frequently than April 1 of each even-numbered year.
       (2) Periodic progress report.--
       (A) Requirement for report.--Each year, in conjunction with 
     the submission of the budget to Congress under section 
     1105(a) of title 31, United States Code, the Secretary of 
     Homeland Security shall submit to Congress an assessment of 
     the progress made on implementing the National Strategy for 
     Transportation Security.

[[Page H8829]]

       (B) Content.--Each progress report under this paragraph 
     shall include, at a minimum, the following matters:
       (i) An assessment of the adequacy of the resources 
     committed to meeting the objectives of the National Strategy 
     for Transportation Security.
       (ii) Any recommendations for improving and implementing 
     that strategy that the Secretary, in consultation with the 
     Secretary of Transportation, considers appropriate.
       (3) Classified material.--Any part of the National Strategy 
     for Transportation Security that involves information that is 
     properly classified under criteria established by Executive 
     order shall be submitted to Congress separately in classified 
     form.
       (d) Priority Status.--
       (1) In general.--The National Strategy for Transportation 
     Security shall be the governing document for Federal 
     transportation security efforts.
       (2) Other plans and reports.--The National Strategy for 
     Transportation Security shall include, as an integral part or 
     as an appendix--
       (A) the current National Maritime Transportation Security 
     Plan under section 70103 of title 46, United States Code;
       (B) the report of the Secretary of Transportation under 
     section 44938 of title 49, United States Code; and
       (C) any other transportation security plan or report that 
     the Secretary of Homeland Security determines appropriate for 
     inclusion.

     SEC. 903. USE OF WATCHLISTS FOR PASSENGER AIR TRANSPORTATION 
                   SCREENING.

       (a) In General.--The Secretary of Homeland Security, acting 
     through the Transportation Security Administration, as soon 
     as practicable after the date of the enactment of this Act 
     but in no event later than 90 days after that date, shall--
       (1) implement a procedure under which the Transportation 
     Security Administration compares information about passengers 
     who are to be carried aboard a passenger aircraft operated by 
     an air carrier or foreign air carrier in air transportation 
     or intrastate air transportation for flights and flight 
     segments originating in the United States with a 
     comprehensive, consolidated database containing information 
     about known or suspected terrorists and their associates; and
       (2) use the information obtained by comparing the passenger 
     information with the information in the database to prevent 
     known or suspected terrorists and their associates from 
     boarding such flights or flight segments or to subject them 
     to specific additional security scrutiny, through the use of 
     ``no fly'' and ``automatic selectee'' lists or other means.
       (b) Air Carrier Cooperation.--The Secretary of Homeland 
     Security, in coordination with the Secretary of 
     Transportation, shall by order require air carriers to 
     provide the passenger information necessary to implement the 
     procedure required by subsection (a).
       (c) Maintaining the Accuracy and Integrity of the ``No 
     Fly'' and ``Automatic Selectee'' Lists.--
       (1) Watchlist database.--The Secretary of Homeland 
     Security, in consultation with the Director of the Federal 
     Bureau of Investigation, shall design guidelines, policies, 
     and operating procedures for the collection, removal, and 
     updating of data maintained, or to be maintained, in the 
     watchlist database described in subsection (a)(1) that are 
     designed to ensure the accuracy and integrity of the 
     database.
       (2) Accuracy of entries.--In developing the ``no fly'' and 
     ``automatic selectee'' lists under subsection (a)(2), the 
     Secretary of Homeland Security shall establish a simple and 
     timely method for correcting erroneous entries, for 
     clarifying information known to cause false hits or 
     misidentification errors, and for updating relevant 
     information that is dispositive in the passenger screening 
     process. The Secretary shall also establish a process to 
     provide individuals whose names are confused with, or similar 
     to, names in the database with a means of demonstrating that 
     they are not a person named in the database.

     SEC. 904. ENHANCED PASSENGER AND CARGO SCREENING.

       (a) Aircraft Passenger Screening at Checkpoints.--
       (1) Detection of explosives.--
       (A) Improvement of capabilities.--As soon as practicable 
     after the date of the enactment of this Act, the Secretary of 
     Homeland Security shall take such action as is necessary to 
     improve the capabilities at passenger screening checkpoints, 
     especially at commercial airports, to detect explosives 
     carried aboard aircraft by passengers or placed aboard 
     aircraft by passengers.
       (B) Interim action.--Until measures are implemented that 
     enable the screening of all passengers for explosives, the 
     Secretary shall take immediate measures to require 
     Transportation Security Administration or other screeners to 
     screen for explosives any individual identified for 
     additional screening before that individual may board an 
     aircraft.
       (2) Implementation report.--
       (A) Requirement for report.--Within 90 days after the date 
     of the enactment of this Act, the Secretary of Homeland 
     Security shall transmit to the Senate and the House of 
     Representatives a report on how the Secretary intends to 
     achieve the objectives of the actions required under 
     paragraph (1). The report shall include an implementation 
     schedule.
       (B) Classified information.--The Secretary may submit 
     separately in classified form any information in the report 
     under subparagraph (A) that involves information that is 
     properly classified under criteria established by Executive 
     order.
       (b) Acceleration of Research and Development on, and 
     Deployment of, Detection of Explosives.--
       (1) Required action.--The Secretary of Homeland Security, 
     in consultation with the Secretary of Transportation, shall 
     take such action as may be necessary to accelerate research 
     and development and deployment of technology for screening 
     aircraft passengers for explosives during or before the 
     aircraft boarding process.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out this subsection for each of fiscal 
     years 2005 through 2009.
       (c) Improvement of Screener Job Performance.--
       (1) Required action.--The Secretary of Homeland Security 
     shall take such action as may be necessary to improve the job 
     performance of airport screening personnel.
       (2) Human factors study.--In carrying out this subsection, 
     the Secretary shall, not later than 180 days after the date 
     of the enactment of this Act, conduct a human factors study 
     in order better to understand problems in screener 
     performance and to set attainable objectives for individual 
     screeners and screening checkpoints.
       (d) Checked Baggage and Cargo.--
       (1) In-line baggage screening.--The Secretary of Homeland 
     Security shall take such action as may be necessary to 
     expedite the installation and use of advanced in-line 
     baggage-screening equipment at commercial airports.
       (2) Cargo security.--The Secretary shall take such action 
     as may be necessary to ensure that the Transportation 
     Security Administration increases and improves its efforts to 
     screen potentially dangerous cargo.
       (3) Hardened containers.--The Secretary, in consultation 
     with the Secretary of Transportation, shall require air 
     carriers to deploy at least 1 hardened container for 
     containing baggage or cargo items in each passenger aircraft 
     that also carries cargo.
       (e) Cost-Sharing.--Not later than 45 days after the date of 
     the enactment of this Act, the Secretary of Homeland 
     Security, in consultation with representatives of air 
     carriers, airport operators, and other interested parties, 
     shall submit to the Senate and the House of Representatives--
       (1) a proposed formula for cost-sharing, for the advanced 
     in-line baggage screening equipment required by this title, 
     between and among the Federal Government, State and local 
     governments, and the private sector that reflects 
     proportionate national security benefits and private sector 
     benefits for such enhancement; and
       (2) recommendations, including recommended legislation, for 
     an equitable, feasible, and expeditious system for defraying 
     the costs of the advanced in-line baggage screening equipment 
     required by this title, which may be based on the formula 
     proposed under paragraph (1).

                     TITLE X--NATIONAL PREPAREDNESS

     SEC. 1001. HOMELAND SECURITY ASSISTANCE.

       (a) Definitions.--In this section:
       (1) Community.--The term ``community'' means a State, local 
     government, or region.
       (2) Homeland security assistance.--The term ``homeland 
     security assistance'' means grants or other financial 
     assistance provided by the Department of Homeland Security 
     under the State Homeland Security Grants Program, the Urban 
     Areas Security Initiative, or the Law Enforcement Terrorism 
     Prevention Program.
       (3) Local government.--The term ``local government'' has 
     the meaning given that term in section 2(10) of the Homeland 
     Security Act of 2002 (6 U.S.C. 101(10)).
       (4) Region.--The term ``region'' means any intrastate or 
     interstate consortium of local governments.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.
       (6) State.--The term ``State'' has the meaning given that 
     term in section 2(14) of the Homeland Security Act of 2002 (6 
     U.S.C. 101(14)).
       (7) Under secretary.--The term ``Under Secretary'' means 
     the Under Secretary of Homeland Security for Information 
     Analysis and Infrastructure Protection.
       (b) In General.--The Secretary shall allocate homeland 
     security assistance to communities based on--
       (1) the level of threat faced by a community, as determined 
     by the Secretary through the Under Secretary, in consultation 
     with the National Intelligence Director;
       (2) the critical infrastructure in the community, and the 
     risks to and vulnerability of that infrastructure, as 
     identified and assessed by the Secretary through the Under 
     Secretary;
       (3) the community's population and population density;
       (4) such other indicia of a community's risk and 
     vulnerability as the Secretary determines is appropriate;
       (5) the benchmarks developed under subsection (d)(4)(A); 
     and
       (6) the goal of achieving and enhancing essential emergency 
     preparedness and response capabilities throughout the Nation.
       (c) Reallocation of Assistance.--A State receiving homeland 
     security assistance may reallocate such assistance, in whole 
     or in part, among local governments or other entities, only 
     if such reallocation is made on the

[[Page H8830]]

     basis of an assessment of threats, risks, and vulnerabilities 
     of the local governments or other entities that is consistent 
     with the criteria set forth in subsection (b).
       (d) Advisory Panel.--
       (1) Establishment.--Not later than 60 days after the date 
     of enactment of this Act, the Secretary shall establish an 
     advisory panel to assist the Secretary in determining how to 
     allocate homeland security assistance funds most effectively 
     among communities, consistent with the criteria set out in 
     subsection (b).
       (2) Selection of members.--The Secretary shall appoint no 
     fewer than 10 individuals to serve on the advisory panel. The 
     individuals shall--
       (A) be chosen on the basis of their knowledge, 
     achievements, and experience;
       (B) be from diverse geographic and professional 
     backgrounds; and
       (C) have demonstrated expertise in homeland security or 
     emergency preparedness and response.
       (3) Term.--Each member of the advisory panel appointed by 
     the Secretary shall serve a term the length of which is to be 
     determined by the Secretary, but which shall not exceed 5 
     years.
       (4) Responsibilities.--The advisory panel shall--
       (A) develop benchmarks by which the needs and capabilities 
     of diverse communities throughout the Nation with respect to 
     potential terrorist attacks may be assessed, and review and 
     revise those benchmarks as appropriate; and
       (B) advise the Secretary on means of establishing 
     appropriate priorities for the allocation of funding among 
     applicants for homeland security assistance.
       (5) Reports.--Not later than 1 year after the date of 
     enactment of this Act, and annually thereafter, the advisory 
     panel shall provide the Secretary and Congress with a report 
     on the benchmarks it has developed under paragraph (4)(A), 
     including any revisions or modifications to such benchmarks.
       (6) Applicability of federal advisory committee act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall apply to 
     the advisory panel.
       (7) Administrative support services.--The Secretary shall 
     provide administrative support services to the advisory 
     panel.
       (e) Technical and Conforming Amendment.--Section 1014(c) of 
     the USA PATRIOT ACT of 2001 (42 U.S.C. 3714(c)) is amended by 
     striking paragraph (3).

     SEC. 1002. THE INCIDENT COMMAND SYSTEM.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) The attacks on September 11, 2001, demonstrated that 
     even the most robust emergency response capabilities can be 
     overwhelmed if an attack is large enough.
       (2) Teamwork, collaboration, and cooperation at an incident 
     site are critical to a successful response to a terrorist 
     attack.
       (3) Key decision makers who are represented at the incident 
     command level help to ensure an effective response, the 
     efficient use of resources, and responder safety.
       (4) Regular joint training at all levels is essential to 
     ensuring close coordination during an actual incident.
       (5) Beginning with fiscal year 2005, the Department of 
     Homeland Security is requiring that entities adopt the 
     Incident Command System and other concepts of the National 
     Incident Management System in order to qualify for funds 
     distributed by the Office of State and Local Government 
     Coordination and Preparedness.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) emergency response agencies nationwide should adopt the 
     Incident Command System;
       (2) when multiple agencies or multiple jurisdictions are 
     involved, they should follow a unified command system; and
       (3) the Secretary of Homeland Security should require, as a 
     further condition of receiving homeland security preparedness 
     funds from the Office of State and Local Government 
     Coordination and Preparedness, that grant applicants document 
     measures taken to fully and aggressively implement the 
     Incident Command System and unified command procedures.

     SEC. 1003. NATIONAL CAPITAL REGION MUTUAL AID.

       (a) Definitions.--In this section:
       (1) Authorized representative of the federal government.--
     The term ``authorized representative of the Federal 
     Government'' means any individual or individuals designated 
     by the President with respect to the executive branch, the 
     Chief Justice with respect to the Federal judiciary, or the 
     President of the Senate and Speaker of the House of 
     Representatives with respect to Congress, or their designees, 
     to request assistance under a Mutual Aid Agreement for an 
     emergency or public service event.
       (2) Chief operating officer.--The term ``chief operating 
     officer'' means the official designated by law to declare an 
     emergency in and for the locality of that chief operating 
     officer.
       (3) Emergency.--The term ``emergency'' means a major 
     disaster or emergency declared by the President, or a state 
     of emergency declared by the Mayor of the District of 
     Columbia, the Governor of the State of Maryland or the 
     Commonwealth of Virginia, or the declaration of a local 
     emergency by the chief operating officer of a locality, or 
     their designees, that triggers mutual aid under the terms of 
     a Mutual Aid Agreement.
       (4) Employee.--The term ``employee'' means the employees of 
     the party, including its agents or authorized volunteers, who 
     are committed in a Mutual Aid Agreement to prepare for or who 
     respond to an emergency or public service event.
       (5) Locality.--The term ``locality'' means a county, city, 
     or town within the State of Maryland or the Commonwealth of 
     Virginia and within the National Capital Region.
       (6) Mutual aid agreement.--The term ``Mutual Aid 
     Agreement'' means an agreement, authorized under subsection 
     (b) for the provision of police, fire, rescue and other 
     public safety and health or medical services to any party to 
     the agreement during a public service event, an emergency, or 
     pre-planned training event.
       (7) National capital region or region.--The term ``National 
     Capital Region'' or ``Region'' means the area defined under 
     section 2674(f)(2) of title 10, United States Code, and those 
     counties with a border abutting that area and any 
     municipalities therein.
       (8) Party.--The term ``party'' means the State of Maryland, 
     the Commonwealth of Virginia, the District of Columbia, and 
     any of the localities duly executing a Mutual Aid Agreement 
     under this section.
       (9) Public service event.--The term ``public service 
     event''--
       (A) means any undeclared emergency, incident or situation 
     in preparation for or response to which the Mayor of the 
     District of Columbia, an authorized representative of the 
     Federal Government, the Governor of the State of Maryland, 
     the Governor of the Commonwealth of Virginia, or the chief 
     operating officer of a locality in the National Capital 
     Region, or their designees, requests or provides assistance 
     under a Mutual Aid Agreement within the National Capital 
     Region; and
       (B) includes Presidential inaugurations, public gatherings, 
     demonstrations and protests, and law enforcement, fire, 
     rescue, emergency health and medical services, 
     transportation, communications, public works and engineering, 
     mass care, and other support that require human resources, 
     equipment, facilities or services supplemental to or greater 
     than the requesting jurisdiction can provide.
       (10) State.--The term ``State'' means the State of 
     Maryland, the Commonwealth of Virginia, and the District of 
     Columbia.
       (11) Training.--The term ``training'' means emergency and 
     public service event-related exercises, testing, or other 
     activities using equipment and personnel to simulate 
     performance of any aspect of the giving or receiving of aid 
     by National Capital Region jurisdictions during emergencies 
     or public service events, such actions occurring outside 
     actual emergency or public service event periods.
       (b) Mutual Aid Authorized.--
       (1) In general.--The Mayor of the District of Columbia, any 
     authorized representative of the Federal Government, the 
     Governor of the State of Maryland, the Governor of the 
     Commonwealth of Virginia, or the chief operating officer of a 
     locality, or their designees, acting within his or her 
     jurisdictional purview, may, subject to State law, enter 
     into, request or provide assistance under Mutual Aid 
     Agreements with localities, the Washington Metropolitan Area 
     Transit Authority, the Metropolitan Washington Airports 
     Authority, and any other governmental agency or authority 
     for--
       (A) 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;
       (B) preparing for, mitigating, managing, responding to or 
     recovering from any emergency or public service event; and
       (C) training for any of the activities described under 
     subparagraphs (A) and (B).
       (2) Facilitating localities.--The State of Maryland and the 
     Commonwealth of Virginia are encouraged to facilitate the 
     ability of localities to enter into interstate Mutual Aid 
     Agreements in the National Capital Region under this section.
       (3) Application and effect.--This section--
       (A) does not apply to law enforcement security operations 
     at special events of national significance under section 
     3056(e) of title 18, United States Code, or other law 
     enforcement functions of the United States Secret Service;
       (B) does not diminish any authorities, express or implied, 
     of Federal agencies to enter into Mutual Aid Agreements in 
     furtherance of their Federal missions; and
       (C) does not--
       (i) preclude any party from entering into supplementary 
     Mutual Aid Agreements with fewer than all the parties, or 
     with another party; or
       (ii) affect any other agreement in effect before the date 
     of enactment of this Act among the States and localities, 
     including the Emergency Management Assistance Compact.
       (4) Rights described.--Other than as described in this 
     section, the rights and responsibilities of the parties to a 
     Mutual Aid Agreement entered into under this section shall be 
     as described in the Mutual Aid Agreement.
       (c) District of Columbia.--
       (1) In general.--The District of Columbia may purchase 
     liability and indemnification insurance or become self 
     insured against claims arising under a Mutual Aid Agreement 
     authorized under this section.

[[Page H8831]]

       (2) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     paragraph (1).
       (d) Liability and Actions at Law.--
       (1) In general.--Any responding party or its officers or 
     employees rendering aid or failing to render aid to the 
     District of Columbia, the Federal Government, the State of 
     Maryland, the Commonwealth of Virginia, or a locality, under 
     a Mutual Aid Agreement authorized under this section, and any 
     party or its officers or employees engaged in training 
     activities with another party under such a Mutual Aid 
     Agreement, shall be liable on account of any act or omission 
     of its officers or employees while so engaged or on account 
     of the maintenance or use of any related equipment, 
     facilities, or supplies, but only to the extent permitted 
     under the laws and procedures of the State of the party 
     rendering aid.
       (2) Actions.--Any action brought against a party or its 
     officers or employees on account of an act or omission in the 
     rendering of aid to the District of Columbia, the Federal 
     Government, the State of Maryland, the Commonwealth of 
     Virginia, or a locality, or failure to render such aid or on 
     account of the maintenance or use of any related equipment, 
     facilities, or supplies may be brought only under the laws 
     and procedures of the State of the party rendering aid and 
     only in the Federal or State courts located therein. Actions 
     against the United States under this section may be brought 
     only in Federal courts.
       (3) Good faith exception.--
       (A) Definition.--In this paragraph, the term ``good faith'' 
     shall not include willful misconduct, gross negligence, or 
     recklessness.
       (B) Exception.--No State or locality, or its officers or 
     employees, rendering aid to another party, or engaging in 
     training, under a Mutual Aid Agreement shall be liable under 
     Federal law on account of any act or omission performed in 
     good faith while so engaged, or on account of the maintenance 
     or use of any related equipment, facilities, or supplies 
     performed in good faith.
       (4) Immunities.--This section shall not abrogate any other 
     immunities from liability that any party has under any other 
     Federal or State law.
       (d) Workers Compensation.--
       (1) Compensation.--Each party shall provide for the payment 
     of compensation and death benefits to injured members of the 
     emergency forces of that party and representatives of 
     deceased members of such forces if such members sustain 
     injuries or are killed while rendering aid to the District of 
     Columbia, the Federal Government, the State of Maryland, the 
     Commonwealth of Virginia, or a locality, under a Mutual Aid 
     Agreement, or engaged in training activities under a Mutual 
     Aid Agreement, in the same manner and on the same terms as if 
     the injury or death were sustained within their own 
     jurisdiction.
       (2) Other state law.--No party shall be liable under the 
     law of any State other than its own for providing for the 
     payment of compensation and death benefits to injured members 
     of the emergency forces of that party and representatives of 
     deceased members of such forces if such members sustain 
     injuries or are killed while rendering aid to the District of 
     Columbia, the Federal Government, the State of Maryland, the 
     Commonwealth of Virginia, or a locality, under a Mutual Aid 
     Agreement or engaged in training activities under a Mutual 
     Aid Agreement.
       (e) Licenses and Permits.--If 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 and assistance is requested by a 
     receiving jurisdiction, such person will be deemed licensed, 
     certified, or permitted by the receiving jurisdiction to 
     render aid involving such skill to meet a public service 
     event, emergency or training for any such events.

     SEC. 1004. ASSIGNMENT OF SPECTRUM FOR PUBLIC SAFETY.

       Section 309(j)(14) of the Communications Act of 1934 (47 
     U.S.C. 309(j)(14)) is amended by adding at the end the 
     following:
       ``(E) Extensions not permitted for channels (63, 64, 68 and 
     69) reassigned for public safety services.--Notwithstanding 
     subparagraph (B), the Commission shall not grant any 
     extension under such subparagraph from the limitation of 
     subparagraph (A) with respect to the frequencies assigned, 
     under section 337(a)(1), for public safety services. The 
     Commission shall take all actions necessary to complete 
     assignment of the electromagnetic spectrum between 764 and 
     776 megahertz, inclusive, and between 794 and 806 megahertz, 
     inclusive, for public safety services and to permit 
     operations by public safety services on those frequencies 
     commencing not later than January 1, 2007.''.

     SEC. 1005. URBAN AREA COMMUNICATIONS CAPABILITIES.

       (a) In General.--Title V of the Homeland Security Act of 
     2002 (6 U.S.C. 311 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 510. HIGH RISK URBAN AREA COMMUNICATIONS CAPABILITIES.

       ``The Secretary, in consultation with the Federal 
     Communications Commission and the Secretary of Defense, and 
     with appropriate governors, mayors, and other State and local 
     government officials, shall encourage and support the 
     establishment of consistent and effective communications 
     capabilities in the event of an emergency in urban areas 
     determined by the Secretary to be at consistently high levels 
     of risk from terrorist attack. Such communications 
     capabilities shall ensure the ability of all levels of 
     government agencies, including military authorities, and of 
     first responders, hospitals, and other organizations with 
     emergency response capabilities to communicate with each 
     other in the event of an emergency. Additionally, the 
     Secretary, in conjunction with the Secretary of Defense, 
     shall develop plans to provide back-up and additional 
     communications support in the event of an emergency.''.
       (b) Technical and Conforming Amendment.--Section 1(b) of 
     that Act is amended by inserting after the item relating to 
     section 509 the following:

``Sec. 510. High risk urban area communications capabilities.''.

     SEC. 1006. PRIVATE SECTOR PREPAREDNESS.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) Private sector organizations own 85 percent of the 
     Nation's critical infrastructure and employ the vast majority 
     of the Nation's workers.
       (2) Unless a terrorist attack targets a military or other 
     secure government facility, the first people called upon to 
     respond will likely be civilians.
       (3) Despite the exemplary efforts of some private entities, 
     the private sector remains largely unprepared for a terrorist 
     attack, due in part to the lack of a widely accepted standard 
     for private sector preparedness.
       (4) Preparedness in the private sector and public sector 
     for rescue, restart and recovery of operations should 
     include--
       (A) a plan for evacuation;
       (B) adequate communications capabilities; and
       (C) a plan for continuity of operations.
       (5) The American National Standards Institute recommends a 
     voluntary national preparedness standard for the private 
     sector based on the existing American National Standard on 
     Disaster/Emergency Management and Business Continuity 
     Programs (NFPA 1600), with appropriate modifications. This 
     standard would establish a common set of criteria and 
     terminology for preparedness, disaster management, emergency 
     management, and business continuity programs.
       (6) The mandate of the Department of Homeland Security 
     extends to working with the private sector, as well as 
     government entities.
       (b) Private Sector Preparedness Program.--
       (1) In general.--Title V of the Homeland Security Act of 
     2002 (6 U.S.C. 311 et seq.), as amended by section 1005, is 
     amended by adding at the end the following:

     ``SEC. 511. PRIVATE SECTOR PREPAREDNESS PROGRAM.

       ``The Secretary shall establish a program to promote 
     private sector preparedness for terrorism and other 
     emergencies, including promoting the adoption of a voluntary 
     national preparedness standard such as the private sector 
     preparedness standard developed by the American National 
     Standards Institute and based on the National Fire Protection 
     Association 1600 Standard on Disaster/Emergency Management 
     and Business Continuity Programs.''.
       (2) Technical and conforming amendment.--Section 1(b) of 
     that Act, as amended by section 1005, is amended by inserting 
     after the item relating to section 510 the following:

``Sec. 511. Private sector preparedness program.''.

       (c) Sense of Congress.--It is the sense of Congress that 
     insurance and credit-rating industries should consider 
     compliance with the voluntary national preparedness standard, 
     the adoption of which is promoted by the Secretary of 
     Homeland Security under section 511 of the Homeland Security 
     Act of 2002, as added by subsection (b), in assessing 
     insurability and credit worthiness.

     SEC. 1007. CRITICAL INFRASTRUCTURE AND READINESS ASSESSMENTS.

       (a) Findings.--Congress finds the following:
       (1) Under section 201 of the Homeland Security Act of 2002 
     (6 U.S.C 121), the Department of Homeland Security, through 
     the Under Secretary for Information Analysis and 
     Infrastructure Protection, has the responsibility--
       (A) to carry out comprehensive assessments of the 
     vulnerabilities of the key resources and critical 
     infrastructure of the United States, including the 
     performance of risk assessments to determine the risks posed 
     by particular types of terrorist attacks within the United 
     States;
       (B) to identify priorities for protective and supportive 
     measures; and
       (C) to develop a comprehensive national plan for securing 
     the key resources and critical infrastructure of the United 
     States.
       (2) Under Homeland Security Presidential Directive 7, 
     issued on December 17, 2003, the Secretary of Homeland 
     Security was given 1 year to develop a comprehensive plan to 
     identify, prioritize, and coordinate the protection of 
     critical infrastructure and key resources.
       (3) Consistent with the report of the National Commission 
     on Terrorist Attacks Upon the United States, the Secretary of 
     Homeland Security should--
       (A) identify those elements of the United States' 
     transportation, energy, communications, financial, and other 
     institutions that need to be protected;

[[Page H8832]]

       (B) develop plans to protect that infrastructure; and
       (C) exercise mechanisms to enhance preparedness.
       (b) Reports on Risk Assessment and Readiness.--Not later 
     than 180 days after the date of enactment of this Act and 
     annually thereafter, the Secretary of Homeland Security shall 
     submit a report to Congress on--
       (1) the Department of Homeland Security's progress in 
     completing vulnerability and risk assessments of the Nation's 
     critical infrastructure;
       (2) the adequacy of the Government's plans to protect such 
     infrastructure; and
       (3) the readiness of the Government to respond to threats 
     against the United States.

     SEC. 1008. REPORT ON NORTHERN COMMAND AND DEFENSE OF THE 
                   UNITED STATES HOMELAND.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (1) The primary responsibility for national defense is with 
     the Department of Defense and the secondary responsibility 
     for national defense is with the Department of Homeland 
     Security, and the 2 departments must have clear delineations 
     of responsibility.
       (2) Before September 11, 2001, the North American Aerospace 
     Defense Command (hereafter in this section referred to as 
     ``NORAD''), which had responsibility for defending United 
     States airspace on September 11, 2001--
       (A) focused on threats coming from outside the borders of 
     the United States; and
       (B) had not increased its focus on terrorism within the 
     United States, even though the intelligence community had 
     gathered intelligence on the possibility that terrorists 
     might turn to hijacking and even the use of airplanes as 
     missiles within the United States.
       (3) The United States Northern Command has been established 
     to assume responsibility for defense within the United 
     States.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) 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; 
     and
       (2) the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     should periodically review and assess the adequacy of such 
     plans and strategies.
       (c) Report.--Not later than 180 days after the date of the 
     enactment of this Act, and every 180 days thereafter, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report describing the United 
     States Northern Command's plans and strategies to defend the 
     United States against military and paramilitary threats 
     within the United States.

                TITLE XI--PROTECTION OF CIVIL LIBERTIES

     SEC. 1011. PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD.

       (a) In General.--There is established within the Executive 
     Office of the President a Privacy and Civil Liberties 
     Oversight Board (referred to in this title 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; and
       (2) ensure that liberty 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 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 401(e);
       (B) review 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 401(e);
       (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 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 401(e) 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 and civil liberties 
     officers.--The Board shall review and assess the activities 
     of privacy and civil liberties officers described in section 
     1012 and, where appropriate, shall coordinate their 
     activities.
       (e) Reports.--
       (1) In general.--The Board shall--
       (A) receive and review reports from privacy and civil 
     liberties officers described in section 1012; 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 and 
     applicable law.
       (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;
       (C) request information or assistance from any State, 
     tribal, or local government; and
       (D) require, by subpoena, persons other than Federal 
     executive departments and agencies to produce any relevant 
     information, documents, reports, answers, records, accounts, 
     papers, and other documentary or testimonial evidence.
       (2) Enforcement of subpoena.--In the case of contumacy or 
     failure to obey a subpoena issued under paragraph (1)(D), the 
     United States district court for the judicial district in 
     which the subpoenaed person resides, is served, or may be 
     found may issue an order requiring such person to produce the 
     evidence required by such subpoena.
       (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) 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.
       (3) 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.
       (i) 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

[[Page H8833]]

     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.
       (j) 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.
       (k) 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.
       (l) 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.)).
       (m) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 1012. PRIVACY AND CIVIL LIBERTIES OFFICERS.

       (a) Designation and Functions.--The Attorney General, 
     Secretary of Defense, Secretary of Homeland Security, 
     Secretary of State, Secretary of the Treasury, Secretary of 
     Health and Human Services, National Intelligence Director, 
     Director of the Central Intelligence Agency, and the head of 
     any other executive department or agency designated by the 
     Privacy and Civil Liberties Oversight Board to be appropriate 
     for coverage under this section shall designate not less than 
     1 senior officer to--
       (1) assist the department or agency head and other 
     department or agency officials in appropriately considering 
     privacy and civil liberties concerns when such officials are 
     proposing, developing, or implementing laws, regulations, 
     policies, procedures, or guidelines related to efforts to 
     protect the Nation against terrorism;
       (2) periodically investigate and review department or 
     agency actions, policies, procedures, guidelines, and related 
     laws and their implementation to ensure that the department 
     or agency is adequately considering privacy and civil 
     liberties in its actions;
       (3) ensure that the department or agency has adequate 
     procedures to receive, investigate, and respond to complaints 
     from individuals who allege the department or agency has 
     violated their privacy or civil liberties; and
       (4) in providing advice on proposals to retain or enhance a 
     particular governmental power the officer shall consider 
     whether the department or agency has explained--
       (i) that the power actually materially enhances security; 
     and
       (ii) that there is adequate supervision of the department's 
     or agency's use of the power to ensure protection of civil 
     liberties.
       (b) Exception To Designation Authority.--
       (1) Privacy officers.--In any department or agency 
     referenced in subsection (a) or designated by the Board, 
     which has a statutorily created privacy officer, such officer 
     shall perform the functions specified in subsection (a) with 
     respect to privacy.
       (2) Civil liberties officers.--In any department or agency 
     referenced in subsection (a) or designated by the Board, 
     which has a statutorily created civil liberties officer, such 
     officer shall perform the functions specified in subsection 
     (a) with respect to civil liberties.
       (c) Supervision and Coordination.--Each privacy or civil 
     liberties officer described in subsection (a) or (b) shall--
       (1) report directly to the department or agency head; and
       (2) coordinate their activities with the Inspector General 
     of the agency to avoid duplication of effort.
       (d) Agency Cooperation.--Each department or agency head 
     shall ensure that each privacy and civil liberties officer--
       (1) has the information and material necessary to fulfill 
     the officer's functions;
       (2) is advised of proposed policy changes;
       (3) is consulted by decision makers; and
       (4) is given access to material and personnel the officer 
     determines to be necessary to carry out the officer's 
     functions.
       (e) Periodic Reports.--
       (1) In general.--The privacy and civil liberties officers 
     of each department or agency referenced or designated under 
     subsection (a) shall periodically, but not less than 
     quarterly, submit a report on the officers' activities to 
     Congress, the department or agency head, and the Privacy and 
     Civil Liberties Oversight Board.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include information on the discharge of each of the 
     officer's functions, including--
       (A) information on the number and types of reviews 
     undertaken;
       (B) the type of advice provided and the response given to 
     such advice;
       (C) the number and nature of the complaints received by the 
     agency for alleged violations; and
       (D) a summary of the disposition of such complaints, the 
     reviews and inquiries conducted, and the impact of the 
     officer's activities.

  The CHAIRMAN pro tempore. Pursuant to House Resolution 827, the 
gentleman from New Jersey (Mr. Menendez) and a Member opposed each will 
control 30 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Menendez).
  Mr. MENENDEZ. Mr. Chairman, I yield myself 5\1/2\ minutes.
  Mr. Chairman, in my district on September 11, 122 of our friends and 
neighbors never returned home from work, never returned to their 
families. The smoking ruins of the Twin Towers were visible for all of 
my community to see and, to this day, their absence is still felt every 
time we look across the Hudson River and see the void where the Towers 
once stood. So the events of that day are very personal to us. We are 
reminded of them always.
  This debate is the most important debate that will be held during the 
entire 108th Congress: how do we respond to the unanimous, bipartisan 
recommendations of the 9/11 Commission in protecting this Nation and 
helping prevent future terrorist attacks from occurring?
  Over 3 years after that fateful September 11 day, my amendment is 
based upon the work of the 9/11 Commission and an inquiry that spanned 
20 months, 19 days of hearings, 160 witnesses, the review of 2.5 
million documents, and interviews of more than 1,200 individuals in 10 
countries. The new structure proposed in this amendment is based upon a 
rock-solid foundation of inquiry and information.
  Under Governor Kean and Congressman Hamilton, the bipartisan 
Commission unanimously made 41 recommendations to strengthen our 
country against terrorists. Those recommendations were for sweeping 
changes to our government, our intelligence community, and to how 
oversight is provided by Congress. The two they have called the most 
urgent; that is, the most time-sensitive to act on: a strong National 
Intelligence Director, and a National Counterterrorism Center, form the 
centerpiece of the Menendez substitute we consider here today. That is 
why the 9/11 Commissioners and organizations that represent the 9/11 
families such as the family steering committee for the 9/11 Commission 
all support the McCain-Lieberman-Collins combination legislation that 
this substitute embodies.
  The gentleman from Connecticut (Mr. Shays) and other Republicans 
wrote asking that the Shays-Maloney amendment be made in order. The 
Committee on Rules, I would argue, did so by making the Menendez 
substitute in order. And, after a 96-to-2 vote yesterday in the Senate 
on legislation very substantively as this substitute, the principles 
and provisions of this amendment are also supported by both Senate 
Republicans and Senate and House Democrats.
  Unfortunately, the House Republican bill, H.R. 10, leaves out many of 
the bipartisan recommendations of the 9/11 Commission. In fact, out of 
the 41 recommendations, it appears that only 11 are implemented, 15 are 
not implemented at all, and 15 others are done so incompletely.
  H.R. 10 also includes provisions that are unrelated to the bill's 
stated purpose: reorganizing the intelligence community and 
strengthening the Nation against terrorist attacks. In doing so, over 
50 extraneous provisions were included that go well beyond the 
Commission's recommendations.
  Like the 9/11 Commission's recommendations, the Menendez substitute 
creates a strong national intelligence director with real budgetary

[[Page H8834]]

and personnel authority. Unfortunately, the House Republican bill 
creates a weak NID with no budget authority and limited personnel 
authority.
  Like the 9/11 Commission's recommendations, the Menendez substitute 
creates a strong National Counterterrorism Center headed by a strong 
director appointed by the President, confirmed by the Senate. 
Unfortunately, the House Republican bill creates a weak NCTC without a 
presidentially-appointed director.
  Like the 9/11 Commission's recommendations, the Menendez substitute 
strengthens the nonproliferation programs that keep nuclear material 
out of the hands of terrorists. Unfortunately, the Republican bill only 
calls for a study into the matter.
  Like the 9/11 Commission's recommendations, the Menendez substitute 
requires vulnerability assessments and security plans for our critical 
infrastructure, including our ports, chemical plants, and public 
transportation systems. Unfortunately, the House Republican bill makes 
no effort to address these issues.
  Like the 9/11 Commission recommendations, the Menendez substitute 
authorizes new money to protect the United States by taking real action 
to secure the peace in Afghanistan, the home of the Taliban, al Qaeda, 
and Osama bin Laden. Unfortunately, the House Republican bill only asks 
for new reports.
  My constituents and all Americans expect us to do everything we can 
to defeat terrorism, not to do a third of what is necessary or half of 
what is necessary or even three-quarters of what is necessary. We need 
to use, we have a responsibility to use every tool we have.
  The facts are clear. Our proposal implements the Commission's 
recommendations. The Republican bill implements only 11 of the 
recommendations in full, partially implementing another 15. That is 
just not good enough. America needs a complete and total strategy to 
fight this enemy, not a partial one like the Republican bill gives us. 
America requires and deserves better than that, and that is why I ask 
my colleagues to support the Menendez substitute and the 9/11 
Commission's report.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HOEKSTRA. Mr. Chairman, I rise in strong opposition to the 
Menendez substitute.
  The CHAIRMAN pro tempore. The gentleman from Michigan (Mr. Hoekstra) 
is recognized to control 30 minutes.
  Mr. HOEKSTRA. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman 
from Illinois (Mr. Hyde).
  Mr. HYDE. Mr. Chairman, while there may be some provisions in the 
Menendez substitute that are worthy of discussion during conference, I 
still rise in opposition to his amendment.
  Our review of the Commission's report was performed with a 
seriousness and a deliberation that is worthy of the subject and the 
task. The preparatory effort included full committee hearings, scores 
of briefings by the administration and others on the range of issues, 
the input of many experts, and days and weeks of effort devoted to 
gathering the requisite information. From this, we developed what we 
believe are measures necessary to give form and meaning to the often 
diaphanous wording of each of the Commission's recommendations that 
fell within our committee's jurisdiction.
  The Menendez substitute offers little more than a mere restatement of 
the Commission's recommendations, and the unspoken premise that 
difficult problems can be easily solved by the simple expedient of 
throwing money at them. We have no shortage of examples of government 
programs where this approach not only failed, but actually rendered our 
problems worse. Here, the greatest danger stems from the complacency 
that will result from our merely having increased spending while 
congratulating ourselves for having taken swift action.
  Instead, as authors of H.R. 10, we crafted practical solutions to 
fulfill the recommendations. We took abstract report recommendations 
such as, ``offer an example of moral leadership, commit to treat people 
humanely, abide by the rule of law,'' and we made them concrete.
  Taken in its totality, H.R. 10 is a far superior product because it 
reflects the concerted and consolidated efforts of several committees 
and lays out direct, specific policy guidance on how to confront these 
evils.
  The Senate may have voted to pass a similar measure to the Menendez 
substitute, but this is our chance to vote for something better, more 
concrete.
  I urge a no vote on the Menendez substitute amendment.
  Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the gentlewoman from 
California (Ms. Pelosi), the distinguished Democratic leader of the 
House of Representatives.
  Ms. PELOSI. Mr. Chairman, I thank the gentleman from New Jersey for 
yielding me this time, and for his extraordinary leadership in bringing 
this substitute to the floor.
  Mr. Chairman, the credentials of the gentleman from New Jersey (Mr. 
Menendez) are unsurpassed in this body. In the previous Congress, 
following the 9/11 attack, and even before that, he served as the Chair 
of the Homeland Security Task Force for the House Democrats. He serves 
on the Committee on Transportation and Infrastructure, and he serves on 
the Committee on International Relations, in senior positions on both 
committees. So when we speak about protecting our homeland, our 
waterways, our ports, our rivers, our whatever, he knows of what he 
speaks. And when he talks about taking the fight against terrorism into 
Afghanistan and other diplomatic initiatives, sitting on the Committee 
on International Relations, he knows of what he speaks.
  But perhaps the saddest, let us say the saddest learning experience 
he has had in this regard was the loss of over 100 of his constituents 
on September 11, 2001. So it is with great pride, I say to the 
gentleman, that I rise to support the gentleman's substitute. It is an 
informed substitute, it is based on bipartisanship, the bipartisanship 
of the Commission and the bipartisanship of the Senate, as it is a 
reflection of two of the bills that were put together in the Senate.
  Following 9/11, Mr. Chairman, the Congress called for a joint inquiry 
of what happened then.

                              {time}  2200

  As a ranking member on the Permanent Select Committee on 
Intelligence, at the time I served as a co-chair of that, and before we 
started our proceedings, our inquiry, which was conducted in a 
bipartisan manner, for most of the time, but before we began, we said 
that we must have a moment of silence before we began. It was both a 
deeply felt approach to it because we all wanted to pray for the 
families who had been harmed, who had lost their loved ones in 9/11; 
but also it represented the inadequacy of any words that we could ever 
have to express sympathy or condolence to those families. No words 
could possibly be adequate.
  We resolved as we proceeded that we were on hallowed grounds. 
Anything to do with 9/11 was hallowed grounds. There was no place there 
for partisan politics. There was only room there for the U.S. to honor 
the memory of those who lost their lives; to pledge to the families 
that we would find the terrorists and bring them to justice who were 
responsible for this heinous crime; to make sure that we protected the 
American people so that acts of terrorism would not occur in this 
country; and to give comfort to those families that we were doing 
everything possible to achieve those goals.
  The work that we did on that committee was largely ignored, and many 
of us thought that there should be an independent commission to bring 
fresh eyes to the challenges that we faced with a broader mandate; 
hence, the 9/11 commission was born. And the members of that commission 
understood that there was no place for partisanship on that hallowed 
ground that they now occupied, and they knew the responsibility that 
they undertook. The commission was reviewing the failures associated 
with 9/11 and suggesting ways to correct them.
  Under the leadership of Chairman Kean and Vice Chairman Hamilton, the 
commission acted in a very bipartisan and thoughtful way to accomplish 
its assignment. By persistence, dedication, and an unshakable belief in 
the importance of its task, the commission overcame every obstacle, and 
on July 22

[[Page H8835]]

provided us with a unanimous bipartisan blue print for action. Our 
entire Nation is in their debt.
  The 9/11 families and the commission then looked to Congress to enact 
their recommendations into law. The 9/11 families had reason to be 
proud that their advocacy was effective, when last night the Senate 
adopted by 96 to 2 a bipartisan bill that meets the challenge for 
reform laid down by the commission and needed by our country.
  We have an opportunity to do the same thing by adopting the 
substitute advanced by the gentleman from New Jersey (Mr. Menendez) 
whose district like so many others across our country bore such pain 
and sorrow on September 11. The Menendez substitute is a merger of the 
legislation introduced on September 7 by Senator McCain and Senator 
Lieberman and the bill authored by Senator Collins and Senator 
Lieberman that was reported by the Senate Government Affairs Committee.
  These bills were endorsed by the 9/11 Commission and by the 9/11 
families groups as being faithful to the commission's recommendation, 
and they were bipartisan from day one.
  The Republican leadership bill, H.R. 10, on the other hand, 
implements fully only 25 percent of the commission's recommendations as 
opposed to the Menendez bill which is a reflection of the commission's 
recommendations. Having waited for more than 3 years to take action, 
why would the House want to adopt a bill which falls so short of the 
reforms identified as urgently necessary and adopted unanimously by the 
bipartisan commission and by the Senate?
  Our country has tremendous unmet needs in the area of homeland 
security. Securing nuclear materials overseas before they fall into the 
hands of the terrorists and could do us harm; improving security on our 
airports, our ports, and our rail lines; ensuring that our first 
responders can communicate effectively in real time; and protecting our 
critical infrastructure have not been given the priorities they deserve 
in H.R. 10. We are not as safe as we could be.
  Our first responsibility as elected officials is to protect the 
American people. Making the right choices on legislation to implement 
the 9/11 Commission recommendations is one of the ways that we can meet 
that responsibility. The right choice today is the Menendez substitute 
that will bring us closest to the bill adopted 96 to 2 in the Senate, 
facilitate a rapid conference, and enable legislation to be signed by 
the President quickly.
  Mr. Chairman, on September 11, 2001, the United States was the 
victim, as we all know, of some of the most horrific attacks in our 
history. Today is 1,121 days later. This House is finally being given 
the opportunity to consider a comprehensive legislative response to 
those attacks. It took over 3 years.
  When the 9/11 Commission issued its report on July 22, it did so with 
a sense of urgency. Having delayed so long in taking action, it is 
critical that we get it right and that we get it right now. A vote for 
the Menendez substitute will honor the work of the commission, will 
respect the wishes of the families, and will make the American people 
safer.
  I urge my colleagues to support the Menendez substitute.
  Mr. HOEKSTRA. Mr. Chairman, I yield 3 minutes to the gentleman from 
Missouri (Mr. Blunt), the distinguished majority whip.
  Mr. BLUNT. Mr. Chairman, I thank the chairman for his hard work.
  Having participated as our committees worked hard through August and 
September to produce the bipartisan composites and component of H.R. 
10, I rise today in strong opposition to the Menendez amendment. We 
have considered the ideas contained in the gentleman's amendment, the 
gentleman's substitute, and rejected them. The amendment goes too far 
in some areas and not far enough in others.
  The Menendez amendment seeks to declassify the U.S. intelligence 
budget. This action will have a very specific impact on our national 
security. It will guarantee that Americans will be more vulnerable. It 
simply is not logical to think that providing the terrorists with 
information about our intelligence priorities will make anyone safer. 
In fact, the impact would be just the opposite.
  Today our adversaries spend a great deal of resources and time and 
devote vast amounts of their efforts trying to estimate just how much 
Americans spend on intelligence activities. Why should we want to hand 
our Nation's classifieds information, its most important security blue 
print, to the very people that we fight to keep it from?
  This substitute ignores the 9/11 Commission's call to secure our 
borders. Does anyone believe America will be safer if the government 
does not require secure documents for people crossing our borders? Are 
we safer with a bill that does not provide any additional resources for 
our overtaxed border patrol? Are we safer with a bill that allows 
foreign terrorists, murderers, rapists, and kidnappers to abuse the 
antiquated laws and be released into our community?
  Under this bill, if people come to this country we know they have 
committed crimes in other countries but they have not committed them 
here. We do not want to send them back to those other countries because 
we are prohibited from doing that; we have to simply let them wander 
around in the United States. That cannot be the best results for a 
secure America.
  Those provisions, the security of our borders, protects all who live 
within our borders, those who are born here, those who sought America 
out searching for a better life for themselves and their families. If 
we want real security and real reform, we need to oppose this 
substitute and move this bill forward to get this job done.
  Mr. MENENDEZ. Mr. Chairman, I yield myself 30 seconds.
  Our substitute does exactly what the 9/11 commission said was 
necessary to secure the borders of the United States, and all of this 
fear-mongering to suggest that the substitute would permit foreign 
terrorists to be allowed to stay does a disservice both to the 
commission and to those who have worked so hard to bring this type of 
legislation to the floor. Secondly, the question about throwing money 
around is not an issue. When you have no money for nonproliferation, 
when you have no money for homeland security, when you do not deal with 
any of the commission's report language as it relates to money, you are 
failing the American people.
  Mr. Chairman, I yield 2 minutes to the gentlewoman from California 
(Ms. Harman), the distinguished ranking Democrat on the Permanent 
Select Committee on Intelligence who has done so much work even prior 
to the commission's report.
  Ms. HARMAN. Mr. Chairman, I thank the gentleman for yielding me time.
  Mr. Chairman, a number of speakers have commented on the courage and 
sacrifice of intelligence community personnel who work in the shadows 
in austere lands. As we debate this bill, their lives are at risk and 
we owe them and their families our heartfelt thanks and total support.
  We also owe them better tools, including an organization that equips 
them to meet 21st-century threats. We are using a 1947 business model 
designed to defeat an enemy that no longer exists.
  It is time, Mr. Chairman, way past time for change. And this debate 
needs to focus on what change will truly help our intelligence 
community transition to the capabilities necessary to meet 21st-century 
threats.
  When you think about that, and you compare H.R. 10 to the Menendez 
substitute, a substitute which is battle-tested, which passed the other 
body 96 to 2 just last night with every single Republican voting for 
it, there is absolutely no contest. The Menendez substitute is much 
stronger, much better, and much more bipartisan than H.R. 10.
  The accusations made against the Menendez substitute can all be 
rebutted, and we will do that tonight. It does a better job of 
controlling our borders. It does a better job of protecting the civil 
liberties of Americans. It does a better job of targeting terrorists 
while protecting the rights of innocent immigrants.
  I urge strong support for the Menendez substitute and would hope that 
H.R. 10 will be viewed as the partisan offering that it sadly is.
  Mr. HOEKSTRA. Mr. Chairman, I yield 3 minutes to the gentleman from 
California (Mr. Hunter), a strong partner in developing H.R. 10, an 
individual who fully understands that this bill needs to protect our 
war fighters and be able to provide the strategic information to our 
policymakers.

[[Page H8836]]

  Mr. HUNTER. Mr. Chairman, if you have friends or relatives or just 
people you care about who wear the uniform of the United States who are 
in war fighting in Iraq and Afghanistan, and they are going out on a 
mission tonight or tomorrow and there are communications that affect 
that mission, directions from headquarters, plans, operations, those 
will probably go through your communications.
  Now, these assurances of those secure communications reside in a 
little shop that is in what is known as the National Signals Agency. 
That is one of the agencies that Mr. Menendez's amendment would pull 
away from the Department of Defense. Now, that agency right now is 
responsible to the Secretary of Defense, to the uniformed personnel who 
run those military operations, whose people have their lives on the 
line and depend on those communications.
  Can you imagine a military operation where the people that are 
running the operation, that is the U.S. military, do not have the 
resourcing and the control over their own communications line?
  I remember one of the arguments that is going on right now is who 
shot down Yamamoto, and we still have an argument over which American 
pilot shot him down after we had broken their code and sent out a squad 
of aircraft to shoot down the leader of the Japanese Navy. That is 
because we broke their communications.
  The security of communications is important as having a weapon that 
works. And inadvertently, Mr. Menendez's amendment pulls away and they 
probably do not even know this, so you cannot blame the gentleman from 
New Jersey (Mr. Menendez) because he copied probably what somebody else 
in the other body put down, and they did not realize what they were 
doing. They have pulled away by definition from the Department of 
Defense and the uniformed people who serve this country the control 
over their own communication and the resourcing of their own 
communications. They pull that away in their bill.
  Now, interestingly, the 9/11 reports says do not do that. It only has 
one small paragraph on that. I am turning to page 412. It says, ``The 
Department of Defense military intelligence programs, the joint 
military intelligence programs and the tactical intelligence programs 
will remain parts of the Department of Defense's responsibilities.''

                              {time}  2215

  That is one tiny paragraph, and yet because they missed that and they 
pulled this particular function away from the people that wear the 
uniform, they have committed a deadly mistake.
  This amendment is full of deadly mistakes, deadly mistakes that the 
author does not even know about because he simply copied what somebody 
else put down.
  Let me finally say, Mr. Chairman, that what we have serves this great 
partnership of the people that wear the uniform and the CIA. Let us 
maintain that partnership. Let us pass this bill without the amendment.
  Mr. MENENDEZ. Mr. Chairman, I yield myself 15 seconds.
  A deadly mistake is the number of recommendations the 9/11 Commission 
put forth that are not included in H.R. 10, and as it relates to 
declassifying the top line budget, that vote was 55 to 37 in the 
Senate, with people like John McCain, Chuck Hagel and Trent Lott voting 
for it. I do not think they want to risk the danger of American troops. 
So I think that makes imminent sense that people like that support that 
amendment.
  Mr. Chairman, I am pleased to yield 2 minutes to the gentleman from 
California (Mr. Waxman), the distinguished ranking Democrat on the 
Committee on Government Reform.
  Mr. WAXMAN. Mr. Chairman, I rise in strong support of the substitute 
amendment offered by the gentleman from New Jersey (Mr. Menendez).
  The Republican bill is fundamentally flawed. There are 41 
recommendations made by the 9/11 Commission, but the Republican bill 
implements only 11. Instead of implementing the 9/11 Commission 
recommendations, the Republican bill includes 50 extraneous provisions, 
many of them poison pills.
  There is a better way and it is this substitute. The substitute is 
bipartisan. It implements all of the recommendations made by the 9/11 
Commission, not just 11 of the 41 recommendations, and it includes no 
poison pills.
  I want to point out to my colleagues, the substitute has the support 
of the 9/11 Commission and the family steering committee of the victims 
from 9/11. It has the support of Senate Republicans, Senate Democrats, 
House Democrats and President Bush.
  As we consider this legislation, let us remember the loss of the 
families of the 9/11 victims. These family members have found strength 
through their terrible losses. We have a moral obligation to pass 
legislation that honors the sacrifices that they have made. That is why 
we need to pass the substitute.
  But Members who are watching and the public who are paying attention 
to this issue may want to take note of the fact that when Congress 
voted to set up the September 11 Commission, so far all of the 
Republicans that have talked against the Menendez substitute, not a 
single one of them voted for the Commission in the first place. A 
number of them, the gentleman from Michigan (Mr. Hoekstra), the 
gentleman from California (Mr. Hunter), the gentleman from Illinois 
(Mr. Hyde) voted against setting up the Commission.
  Well, Congress voted to set up that Commission. They worked hard, and 
they unanimously recommended we adopt what is the Menendez substitute.
  Mr. HOEKSTRA. Mr. Chairman, I yield 30 seconds to the gentleman from 
California (Mr. Hunter).
  Mr. HUNTER. Mr. Chairman, I just wanted to go through a few more of 
the deadly mistakes that the Menendez substitute does in contravention 
of what the Commission said.
  They take away from the military, military communications. They take 
away intelligence information on an adversary's communication. They 
take away defense cryptology. They take away warnings of impending 
military action against U.S. interests. They take away joint 
operational planning and execution. All because they ignored those 
particular teams that are hosted by the National Signals Agency. That 
was crayon legislation.
  Mr. HOEKSTRA. Mr. Chairman, I yield 4 minutes to the gentleman 
Florida (Mr. Young).
  Mr. YOUNG of Florida. Mr. Chairman, it is a great opportunity to 
engage in this very important discussion. Because I intended to be part 
of this debate this evening, I looked through the Constitution again 
this afternoon, as I do from time to time, and I learned once again 
that the Constitution says that the Congress shall raise the armies and 
the navies and provide for the Nation's security.
  The Members of this Congress that have put together H.R. 10 have 
spent their careers in Congress working on issues of importance to our 
Nation's security and in the creation of the most effective military 
and security operation in the entire world. We have the best military 
in the entire world, and the very people who are responsible for making 
that happen also are the creators of H.R. 10. I am proud to have been a 
part of that work, and they worked hard, many days and many nights.
  While I am speaking of the Constitution, the Menendez amendment, in 
my opinion, yields the constitutional requirement of the Congress, 
yields it, to the 9/11 Commission. The 9/11 Commission, they worked 
hard, but I checked the Constitution. I did not find anything in the 
Constitution about the 9/11 Commission.
  One of the issues that concerns me seriously in the Menendez 
amendment is the decision to have the authorizers also be the 
appropriators. The chairman of the House Permanent Select Committee on 
Intelligence said he does not want that, and there is a good reason for 
that. This has been tried before where authorizers would actually be 
the appropriators.
  The reason we have the two different organizations is simply this. 
The authorizers set the policy. They determine what will be the policy 
of the United States of America and whatever the issue is. The 
appropriators deal with the budgetary aspects of that work. We know 
that the budgetary, the appropriations business must be completed or 
the agencies shut down. The policy workers can go on and on for months, 
even years beyond their allotted time and still not have an adverse 
affect on the operation of this great Nation.

[[Page H8837]]

  What concerns me is that if we give the authorizing committees also 
appropriating responsibilities they will, of necessity, spend most of 
their time dealing with the appropriations, the budgetary aspects, and 
leaving the policy-making to wan.
  This is not a good idea to pass this Menendez amendment, and I 
realize he worked hard and I realize that he is promoting basically 
what the 9/11 Commission has recommended. But we were elected to 
function under the Constitution, to provide for the security of this 
Nation. I would say to my colleagues, as much respect as I have for the 
members of the 9/11 Commission and as hard as they worked to come up 
with some ideas that were actually pretty good, they are not the 
depository of all wisdom when it comes to providing for the security of 
our Nation.
  As I said, those who were involved in the creation of H.R. 10 have 
spent a career in this Congress creating and providing for the most 
effective, the best military operation in the entire world, the best 
that the world has ever seen.
  So I ask for a ``no'' vote on the Menendez amendment and a strong 
``yes'' vote for H.R. 10.
  Mr. MENENDEZ. Mr. Chairman, I would like to ask the Chair how much 
time remains on both sides.
  The CHAIRMAN pro tempore (Mr. Nethercutt). The gentleman from New 
Jersey (Mr. Menendez) has 19 minutes remaining. The gentleman from 
Michigan (Mr. Hoekstra) has 17 minutes remaining.
  Mr. MENENDEZ. Mr. Chairman, I yield 25 seconds to the gentlewoman 
from California (Ms. Harman).
  Ms. HARMAN. Mr. Chairman, in response to two of the claims just made, 
number one, the defense communications budget and the defense 
information security budget are not part of the National Foreign 
Intelligence program. Only the NFIB will be managed by the NID, as it 
is today by the DCI. So those budgets will not be covered.
  Secondly, the Menendez substitute does not address the reorganization 
of Congress. It does not collapse the appropriations authority into the 
authorizing committee. That does not happen under this substitute.
  Mr. MENENDEZ. Mr. Chairman, I yield 2 minutes to the gentleman from 
Texas (Mr. Turner), the distinguished ranking Democrat on the Select 
Committee on Homeland Security.
  Mr. TURNER of Texas. Mr. Chairman, I thank the gentleman for yielding 
me time.
  The 9/11 Commission said very clearly that to win the war on terror, 
we had to pursue three strategies simultaneously. We had to go after 
the terrorists more aggressively; we have to protect the homeland; and 
thirdly, we have to prevent the rise of future terrorists. Any 
legislation that purports to deal with the 9/11 Commission 
recommendations must have meaningful provisions in all three of these 
areas.
  The 9/11 Commission had 41 recommendations. If we look at H.R. 10, 15 
of the recommendations of the Commission are not implemented at all. 
Fifteen of the recommendations of the Commission in H.R. 10 are dealt 
with only partially. Eleven of the recommendations are implemented in 
H.R. 10.
  The truth of the matter is some of the most critical elements for our 
security are not dealt with in H.R. 10. We did more to dismantle and to 
put into control loose nuke material in the 2 years prior to 9/11 than 
we have in the 2 years since 9/11. Our bill, the Menendez substitute, 
deals meaningfully with trying to control loose nuclear material.
  H.R. 10 simply says we are going to study it. We have studied it to 
death. If the greatest threat to our security is a nuclear weapon in 
the hands of terrorists, one would think that H.R. 10 would deal 
meaningfully with that threat.
  H.R. 10 does not deal with the critical issue of information sharing. 
We need to be able to know that a border patrol inspector or a law 
enforcement officer, when they have a suspected terrorist in front of 
them, they have access in real-time to all the government databases 
that share intelligence and have intelligence relating to terrorists.
  We know we need to involve the private sector. Eighty-five percent of 
all infrastructure is in private hands, and yet H.R. 10 does not deal 
with a private sector preparedness program. That is dealt with in the 
Menendez substitute.
  The truth of the matter, Mr. Chairman, is that we have got to do 
better. We have got to be stronger than we are in H.R. 10, and I urge 
the adoption of the Menendez substitute.
  Mr. HOEKSTRA. Mr. Chairman, I yield myself such time as I may 
consume.
  When a bill is cobbled together at the last minute, sometimes even 
the authors do not know what is in it. I advise my colleagues to take a 
look at section 502 that talks of reorganization of congressional 
jurisdiction. It is part of the bill, page 145.
  Mr. Chairman, I yield 2 minutes to the gentleman from Virginia (Mr. 
Tom Davis), an expert on government reorganization, the chairman of the 
Committee on Government Reform.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I want to join my colleagues 
in strong opposition to the Menendez amendment. Quite simply, the 
substitute provides fewer safeguards against another 9/11. Rather than 
participating in the legislative process by offering constructive 
amendments during the House debate, the minority has unfortunately 
chosen to simply cobble together various provisions from H.R. 10 and 
various incarnations of Senate legislation and repackage them as the 
Democratic position on homeland security. The resulting package is a 
scattered jumble of proposals that do not fit into cohesive strategy 
for protecting the homeland.
  On the issue of driver's license security, for example. Two 
conflicting deadlines for compliance by the States are established: the 
first deadline being 2 years from the promulgation of minimum 
standards; the second deadline is to be established by the Secretary of 
Homeland Security.
  In contrast, the language of H.R. 10 is strong and clear, exactly 
what this landmark legislation needs.
  Additionally, the Menendez amendment is replete with the kind of 
layered bureaucracy we took great pains to avoid in H.R. 10. Our aim 
was a nimble, flexible, flat structure that could improve intelligence 
gathering and analysis. The substitute amendment, by contrast, is 
loaded with a chief information officer, a chief human capital officer, 
a chief financial officer, an out-of-control Inspector General, a 
comptroller, an ombudsman, multiple privacy officers, and a civil 
liberties board with unlimited subpoena power. Our bill is about better 
government. The substitute is about bigger government.
  Equally troubling to our committee in particular is the fact that 
such basic necessities as personnel and acquisition authorities have 
been scattered throughout the amendment with different and conflicting 
authorities being haphazardly assigned to different officials within 
the NID. Our committee specializes in agency organizational matters. 
That is what we do day in and day out. The substitute's organizational 
structure is no way to set up a new entity, and I urge opposition to 
the Menendez amendment.

                              {time}  2230

  Mr. MENENDEZ. Mr. Chairman, I yield myself 10 seconds.
  Fewer safeguards to protect America than the unanimous bipartisan 
recommendations of the 9/11 Commission? That is outrageous. Are we 
saying the bipartisan 9/11 Commission, with a unanimous vote of 51 
Republican Senators and 96 Senators actually voted to reduce the 
safeguards to America? I do not think so.
  Mr. Chairman, I yield 2 minutes to the gentleman from Missouri (Mr. 
Skelton), someone who fought for his country, someone who has enormous 
experience in the national security and defense of the United States, 
and who is the ranking Democrat on the Committee on Armed Services.
  Mr. SKELTON. Mr. Chairman, I thank the gentleman for yielding me this 
time. Let us put some common sense into this piece of legislation, if 
we may.
  You are about to see an attempt to mix oil and water legislatively. 
We see that the Senate passed 96 to 2 the recommendations of the 
Commission, the 9/11 Commission. The White House recommended and urged 
such a passage. The family victims organization of 9/11 has recommended 
that. And we see in this H.R. 10 a diversion from the only hearing that 
we had, which was by the chairman and vice chairman of the 9/11 
Commission, and I thought they explained their situation well.

[[Page H8838]]

  I would like to read from a statement of administration policy from 
the Executive Office of the President. Three pages of concerns 
regarding the base bill that we have, H.R. 10. And in those three pages 
of concern it says ``The administration is concerned that H.R. 10 does 
not provide the National Intelligence Director sufficient authorities 
to manage the intelligence community effectively.''
  I thought we had a sense of urgency about this. As a result of the 9/
11 Commission and recommendations, a sense of urgency had come over our 
Congress, I thought; over our country, I thought. And yet we see this 
bill, should it pass, H.R. 10, should it pass, you will see it mixed in 
conference with the Senate like oil and water. And I predict this will 
very well end up in the legislative graveyard, sadly.
  Mr. HOEKSTRA. Mr. Chairman, I yield myself such time as I may 
consume.
  It was stated earlier that the President supports the Menendez 
amendment. That is inaccurate. The administration supports House 
passage of H.R. 10.
  Mr. Chairman, I yield 3 minutes to the gentleman from California (Mr. 
Lewis), another individual who gets his facts right.
  Mr. LEWIS of California. Mr. Chairman, regretfully, I rise in very 
strong opposition to the Menendez amendment, for this substitute does 
not reflect the real word that we must deal with when we are trying to 
make certain that our intelligence activities positively affect our men 
and women who have their lives threatened overseas.
  The Menendez amendment is similar to H.R. 10, but includes a number 
of provisions that are unacceptable or at least should be to this 
House. Probably one of the most troubling aspects of the amendment 
before us is the provision that would call for the disclosure of the 
aggregate level of funding provided to the intelligence community.
  Mr. Chairman, I would ask my colleague, the gentleman from New Jersey 
(Mr. Menendez), to please tell us what the logic is behind disclosing 
to our enemies the top line of our intelligence budget? I am not 
worried about what the Senate may say or suggest, I am not sure they 
thought through what this might mean. But what is the logic behind our 
disclosing to our enemies the top line of our intelligence work? Who 
can it serve in terms of America's interests to disclose those top 
lines?
  The September 28, 20004, statement of administrative policy states 
clearly that ``legislation should not compel disclosure, including the 
Nation's enemies in war, of the amounts requested by the President and 
provided by the Congress for the conduct of the Nation's intelligence 
activities.''
  H.R. 10 retains a classified intelligence budget. It is absolutely in 
the American interest, our public interest, our military interest to 
make certain that those top lines are not disclosed. If the gentleman 
would not depend upon the Senate, I would like to hear the gentleman's 
logic behind disclosure of those top lines. Indeed, it is fundamental 
to the future security of our troops to make certain our intelligence 
programs are kept within the interest of those troops who are defending 
us overseas.
  If the gentleman would like to respond specifically to that, perhaps 
I could understand better why he would take these steps.
  Mr. MENENDEZ. Mr. Chairman, will the gentleman yield?
  Mr. LEWIS of California. I yield to the gentleman from New Jersey.
  Mr. MENENDEZ. First, in 1997 and 1998, we disclosed the top line and 
we did not risk the national security of the United States.
  Mr. LEWIS of California. Who did?
  Mr. MENENDEZ. The American people have the right to know how much 
that collective amount is. It does not tell us where we divide that 
money, covert, overt, and for what other purposes.
  And I would say that the other body overwhelmingly voted for the 
disclosure.
  Mr. LEWIS of California. Mr. Chairman, reclaiming my time, I asked 
the gentleman who disclosed the amount?
  Mr. MENENDEZ. In 1997 and 1998.
  Mr. LEWIS of California. But who disclosed the amount?
  Mr. MENENDEZ. The other body just voted that.
  Mr. LEWIS of California. Reclaiming my time once again, Mr. Chairman, 
I am not certain the gentleman has been in the intelligence rooms. If 
he has disclosed that, then he is in violation of the rules.
  Mr. MENENDEZ. Mr. Chairman, I yield myself 1 minute.
  As a trial attorney, I know what to do when you do not have the facts 
and the law on your side. You bang on the table and try to create 
confusion. That is what the other side is trying to do here because 
they have left us less secure in H.R. 10.
  We heard a lot about flip-flopping lately. Well, the administration 
put out a statement of policy saying the administration supports the 
Collins-Lieberman bill, and went on specifically to say that they would 
oppose weakening the NID, exactly what H.R. 10 does.
  My colleagues are going against what the President wants. Now the 
President comes out, after he supports the Senate version, and says, 
well, I support H.R. 10, but then he has three pages of exceptions to 
H.R. 10 that he does not like in your bill and thinks that you make 
America less secure by virtue of what is in the bill.
  So you cannot have it every which way. Either the President is for 
the 9/11 Commission or he is not. Either he is for McCain-Collins-
Lieberman or he is not.
  Mr. Chairman, I yield 3 minutes to the distinguished gentlewoman from 
New York (Mrs. Maloney), who has worked tirelessly on the task force on 
Homeland Security for House Democrats and worked with the gentleman 
from Connecticut (Mr. Shays) on what, in essence, is the Menendez 
proposal.
  Mrs. MALONEY. Mr. Chairman, I rise in strong support of the 
bipartisan substitute. This substitute is identical to the substitute 
that the gentleman from Connecticut (Mr. Shays) and I offered but was 
not made in order. This substitute is almost identical to the bill that 
passed the Senate yesterday with a strong vote of 96 to 2. All 51 
Republicans voted yes to bringing overdue reform to our intelligence 
network.
  Right after 9/11, this body came together and we worked together as 
Americans, not as partisans. We need to come together again tonight and 
pass the bipartisan 9/11 Commission substitute, a bill we could have on 
the President's desk tomorrow.
  Unlike the underlying bill, this substitute adopts all of the 
recommendations and nothing else, and that is why the bipartisan 
substitute has the support of the 9/11 Commission, the 9/11 Family 
Steering Committee members, and editorial boards across this Nation. 
They have written in favor of the Collins-Lieberman bill, upon which 
the substitute is based, and against the House leadership's 
controversial bill, which is strikingly different from the 9/11 
Commission report on many key points.
  Mr. Chairman, the President of the United States agrees. Just tonight 
the White House released a statement on this bill, and they said, and I 
quote, ``the National Intelligence Director should have full budget 
authority.'' The substitute does give full budget authority. H.R. 10 
does not.
  The administration also strongly opposes the, and I quote ``overbroad 
expansion of expedited removal authorities.'' The administration has 
concerns with the overbroad alien identification standards proposed by 
the bill, and I quote, ``that are unrelated to security concerns.'' The 
administration strongly opposes section 3032, the so-called outsourcing 
of torture provision. And it goes on and on. They are opposed to Title 
V, inconsistent with President's constitutional authority.
  In fact, H.R. 10 is so problematic that the White House ran out of 
room talking about provisions they did not like. They ended their 
letter by saying, and I quote, ``Finally, the administration has 
concerns with a number of other provisions in this bill.''
  So, my colleagues, the choice is clear. Pass a bill that even makes 
the White House queasy, or pass the substitute that enacts the 
recommendations of the 9/11 Commission.
  Mr. Chairman, the 9/11 families wrote, ``We believe the 9/11 
substitute is the best choice for certain and quick legislation to make 
our country safe. We respectfully ask you to put politics aside and act 
in the best interest of America. Vote for the 9/11 substitute.''

[[Page H8839]]

  And on a personal note, my city was attacked, and I urge my 
colleagues to support the bipartisan substitute. It will make our 
country safer.
  Mr. Chairman, I would like to end with the full letter of the 9/11 
victims' families, which I will submit for the Record, along with 
editorials in support of the bipartisan bill.

  Newspapers across the country have editorialized in favor of the 
Senate's bipartisan legislation--and against the House Republican 
leadership's divisive approach, including the New York Times, the 
Washington Post, the Baltimore Sun, the Miami Herald, the Albuquerque 
Journal, Milwaukee Journal Sentinel, Orlando Sentinel, and the Rocky 
Mountain News.
  Here are some selected quotes:
  ``House Republicans are already trying to turnt this week's debate 
into a pre-election brawl aimed more at scoring phony patriotic points 
than at passing meaningful laws.  . . . Congress cannot escape its duty 
to finally repair the institutional failures that left the country so 
vulnerable before 9/11 and so wrong before the invasion of Iraq.''--NY 
Times, Sep. 27
  ``The House of Representatives' version of intelligence reform might 
be dismissed as an election-year stunt were it not so dangerous. . . .
  ``Playing politics with intelligence reform should not be worth the 
potential damage.''--Washington Post, Oct. 5
  ``House Speaker Dennis Hastert and Majority Leader Tom DeLay have 
been in no rush, yielding, it appears, to the status quo forces in 
Washington that stand to lose power and influence if sweeping changes 
are adopted.''--Baltimore Sun, Oct. 5
  ``Instead of focusing on the nuts and bolts of intelligence reform, 
legislators are debating wholly extraneous issues that will contribute 
little or nothing to making our country safer.''--Miami Herald, Oct. 4
  ``House Republicans should avoid hanging apple-related riders on 
legislation addressing oranges when it comes to implementing 
9/11 Commission recommendations.''--Albuquerque Journal, Oct. 2
  ``Legislative sabotage such as this is hardly unusual in political 
Washington, and most of the time the damage is not intolerable. This 
time, however, it is.''--Milwaukee Journal Sentinel, Sep. 30
  ``The House proposal is a weak, partisan plan that perpetuates too 
much of the discredited status quo in intelligence--Orlando Sentinel
                                  ____
                                  

                      Vote for the 9/11 Substitute

       Dear Member of Congress, As 9/11 family members we ask our 
     Congress to vote in a bipartisan way on the 9/11 substitute, 
     which most closely follows the core recommendations of the 9/
     11 Commission. This substitute is based on the bipartisan 
     legislation offered in the Senate by Senators Collins, 
     Lieberman and McCain. It is endorsed by the 9/11 Commission 
     and the President.
       You have a choice today. You can vote for H.R. 10 or the 9/
     11 Substitute. We believe the 9/11 substitute is the superior 
     vehicle for effective change without delay. A vote for the 
     substitute will quickly send a bill to the President's desk 
     for signature. The path of H.R. 10 is far less certain.
       The 9/11 Families demand a clean, bipartisan bill that is 
     true to the core recommendations of the 9/11 Commission. We 
     believe the 9/11 substitute is the best choice for certain 
     and quick legislation to make our country safe. We 
     respectively ask you to put politics aside and act in the 
     best interest of America. Vote for the 9/11 substitute!
                                                The 9/11 Families.

  Mr. HOEKSTRA. Mr. Chairman, I yield myself such time as I may consume 
to note that CRS has identified provisions of H.R. 10 that are relevant 
or respond to 39 of the 41 recommendations of the 9/11 Commission.
  Mr. Chairman, I yield 2 minutes to the gentleman from Illinois (Mr. 
LaHood), the distinguished member of the Permanent Select Committee on 
Intelligence who spent an enormous amount of time working on these kind 
of issues, understanding the issues that face both our troops and our 
policymakers in this area.
  (Mr. LaHOOD asked and was given permission to revise and extend his 
remarks.)
  Mr. LaHOOD. Mr. Chairman, I rise in strong opposition to the Menendez 
amendment.
  Mr. Chairman, I have been on the floor almost all day speaking on the 
rule, and speaking during consideration of the bill during general 
debate. This amendment seeks to create an information technology 
network of immense proportions but without significant resources and no 
logical or direct correlation to what actually would be needed to share 
information properly.
  The amendment overregulates the design of the network, it creates 
excessive reporting requirements and truly unrealistic implementation 
deadlines. The amendment would also create several layers of new 
bureaucracy, which is something that I have been speaking out about all 
day.
  No more bureaucracy. No more red tape. No more stovepipes. And that 
is what this creates. It would create a new bureaucratic advisory and 
executive board, which will prevent the rapid creation of a true 
information-sharing environment.
  The information-sharing provisions of the Menendez amendment will not 
achieve the intent of the 9/11 Commission. In fact, they will serve to 
confuse and prevent the needed changes. We do not need any more 
bureaucracy. We do not need any more stovepipes.
  In fairness to the people who work 24-7, in dark places in the world, 
this amendment had no consultation with the community, with those that 
are charged with the responsibility of collecting and analyzing 
information. This amendment is terribly flawed and would create the 
kind of stovepipe and bureaucracy the 9/11 Commission railed against. 
It would do no good in terms of our ability to really create the kind 
of opportunity that is needed to win the war on terror.

                              {time}  2245

  Mr. MENENDEZ. Mr. Chairman, I yield myself 15 seconds to simply say 
if the gentleman is concerned about bureaucracy, then he needs to read 
the statement of administration policy that says, ``The administration 
remains concerned about a series of provisions in H.R. 10 that create 
new bureaucratic structures and layers in the office of the NID and 
elsewhere that would hinder, not help, the effort to strengthen U.S. 
intelligence capabilities.''
  Mr. Chairman, I yield 20 seconds to the gentlewoman from California 
(Ms. Harman) to deal with some of the questions that have been raised 
here.
  Ms. HARMAN. I thank the gentleman for yielding me this time.
  Mr. Chairman, the gentleman from California (Mr. Lewis) has raised 
concerns about providing information to the enemy by declassifying the 
top line of the budget. In the 9/11 Commission report it says, ``When 
even aggregate categorical numbers remain hidden, it is hard to judge 
priorities and foster accountability. The top line figure by itself 
provides little insight into U.S. intelligence sources and methods.'' 
It was passed in the other body 55 to 37, overwhelmingly supported by 
Republican Senators.
  Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from New York (Mr. Engel), a senior member of the Committee 
on International Relations.
  Mr. ENGEL. I thank the gentleman for yielding me this time.
  Mr. Chairman, on 9/11, 2001, my city was attacked. And then a 
remarkable thing happened. The 9/11 Commission was formed with five 
Democrats and five Republicans, and they unanimously made a series of 
recommendations. That showed true bipartisanship. The other body also 
showed true bipartisanship when it came up with a bill that was passed 
again almost unanimously.
  But here, unfortunately, we have not seen bipartisanship. Democrats 
have essentially been shut out of the process once again, something 
that we have seen too frequently; and this bill before us does not 
implement most of the 9/11 Commission recommendations. The Menendez 
substitute before us does implement most of the recommendations of the 
9/11 Commission. Intelligence should not be a Democratic issue or a 
Republican issue, but an American issue.
  In the underlying bill, there are some good things in the bill. There 
are some troubling things in the bill. But on the whole, the Menendez 
substitute is by far the better bill. It is bipartisan, implementing 
the 9/11 Commission.
  Vote for the Menendez substitute.
  Mr. HOEKSTRA. Mr. Chairman, I yield myself such time as I may 
consume.
  In the rules process, our colleagues on the other side of the aisle 
were not shut out. They did not show up. They only offered one 
amendment. No other amendments. All their amendments were accepted and 
made in order.
  Mr. Chairman, I yield 2 minutes to the gentleman from New Jersey (Mr. 
Saxton).

[[Page H8840]]

  (Mr. SAXTON asked and was given permission to revise and extend his 
remarks.)
  Mr. SAXTON. Mr. Chairman, let me just respond to a couple of things 
that have been said. One of the previous speakers mentioned that we 
have a 1947 business model when it comes to our intelligence community. 
That may be true for the CIA, it may be true for certain civilian 
intelligence-gathering agencies, but it is not true for the military, 
the defense intelligence agencies. We had a certain type of 
information-gathering system prior to 1990. The Soviet Union went away 
and our military intelligence changed because it had to change. The 
collection system changed to keep up with the changing threat. The 
changing threat today is terrorism and other kinds of threats. Back 
then it was a conventional threat carried out by the Soviet Union. Our 
military intelligence has changed. It is a modern-day intelligence 
collecting system that we are trying our best tonight here to protect.
  Secondly, the notion that the top line was disclosed in the past is 
completely false. It was never disclosed in the past. We have always 
kept secret the amount of money, the resources that we spend on 
intelligence collecting. The Menendez amendment discloses this 
information which we believe is a tremendous mistake. Further, this is 
not the 9/11 Commission report that they are putting forth. The 9/11 
Commission report was amended 81 times by the Senate. Eighty-one times. 
They criticize us for offering our views after they amended it 81 
times.
  Mr. Chairman, this is a good bill. It should stand the way it is.
  Mr. MENENDEZ. Mr. Chairman, I yield 4 minutes to the distinguished 
gentleman from Connecticut (Mr. Shays) who has offered and is embodied 
in our substitute, in essence the 9/11 Commission's report.
  Mr. SHAYS. I thank the gentleman for yielding me this time.
  Mr. Chairman, I have been in public life 30 years, and I was sitting 
in my office thinking, I am not sure I want to participate in this 
debate because I am seeing people on both sides of the aisle for whom I 
have such tremendous respect wrestling with this issue; but it is not a 
good feeling on the House floor, and I cannot describe why.
  I was hoping that when we were going to debate the recommendations of 
the 9/11 Commission that we would have an effort from day one to 
include both sides of the aisle. I felt from that process we would have 
a bill that we would be proud of. It did not seem to work out that way. 
For me, I have chaired the National Security subcommittee now for 6 
years. When I took it over in 1998, we began in 1999, we rewrote the 
rules so that we would look at terrorism at home and abroad. What we 
did is we had 19 hearings before September 11, and we had three 
commissions that came before us and all three commissions, the Bremer 
Commission, the Hart-Rudman Commission, the Gilmore Commission, they 
all said the same thing: we have a serious terrorist threat; we need to 
have an assessment of that threat; we need to have a strategy to deal 
with it and we need to reorganize our government so that we can 
implement the strategy. And we did not really pay attention to it. We 
had committees of cognizance that should have been.
  Then we had this horrible tragedy and we responded. I think we 
responded in the right way. We did not establish the 9/11 Commission 
right away. What we did is we just said, Republicans and Democrats, 
what do we do about it? While there has been criticism of the PATRIOT 
Act, I think it was vital. We reorganized our government and we did it, 
I think, ultimately in a bipartisan way. I think we have made our 
country safer.
  And then, and it made so much sense, what we did is we said, let's 
find out what the heck happened. It was very clear. We let down the 
American people. I have many constituents who lost loved ones, and I 
think every day how sorry I am for our failure in this Chamber. I have 
constituents who spoke with their loved ones for an hour trying to help 
them get out of a building. We all know those tragedies. But in the end 
we had this commission, and this commission was partisan at first and 
then when they started to write what happened and they looked and they 
described what happened on that day, five Republicans and five 
Democrats became one. That is what I was hoping would happen on the 
floor tonight, and it is not happening. But I think it will.
  I am going to vote for the Menendez amendment because I think it is 
truer to the commission's objectives. If it fails, I am going to be 
voting to pass out H.R. 10 because I believe that eventually 
Republicans and Democrats in this Chamber are going to find common 
ground like the Senate found, and I believe the President is going to 
have a bill to sign, and I think we are ultimately going to be proud of 
the product.
  But I support the gentleman's amendment. I appreciate that he has 
brought it out. I appreciate that it was made in order because it is 
truly more reflective of what the commission suggested. If there are 
problems with one aspect of it, like releasing the top line, those are 
things that we clearly can deal with in conference. But the way we set 
this debate, a major substitute, just an hour, yes, it is going to be 
hard to come to a conclusion that any of us are satisfied with.
  The commission did their work so well. I am so proud of them. I think 
their work was sacred, and I think that we deserve and they deserve to 
have this legislation moved forward.
  Mr. HOEKSTRA. Mr. Chairman, I yield 1 minute to the gentleman from 
Colorado (Mr. Tancredo).
  Mr. TANCREDO. Mr. Chairman, the Menendez amendment claims to be 
comprehensive in its approach toward border security. Let me read 
directly from the commission report:
  ``It is perhaps obvious to state that terrorists cannot plan and 
carry out attacks in the United States if they are unable to enter the 
country. Yet prior to September 11, while there were efforts to enhance 
border security, no agency of the U.S. Government thought of border 
security as a tool in the counterterrorism arsenal. Indeed, even after 
19 hijackers demonstrated the relative ease of obtaining a U.S. visa 
and gaining admission into the United States, border security is still 
not considered a cornerstone of national security policy. We believe 
that it must be made one.''
  Yet the Menendez amendment is eerily silent on this issue. How can we 
possibly suggest that there is any way that we can think of their 
amendment as comprehensive in terms of border security and security of 
this Nation when it does not address this fundamental idea that was 
placed in the 9/11 Commission report?
  The only way you can think about this is that it is pandering for 
votes in light of the fact that we should actually be thinking about 
national security, not thinking about votes.
  Mr. HOEKSTRA. Mr. Chairman, I yield 3 minutes to the gentleman from 
California (Mr. Cox).
  Mr. COX. Mr. Chairman, I thank the gentleman for his excellent work 
on this legislation. I would like to speak as the chairman of the 
Select Committee on Homeland Security about portions of this 
legislation, H.R. 10, with which our committee has been very, very 
closely concerned and portions of this substitute which lack those same 
elements.
  First, the 9/11 Commission in their report recommended that Congress 
``should pass legislation to remedy the longstanding indemnification 
and liability impediments to the provision of public safety and mutual 
aid in the national capital region and, where applicable, throughout 
the Nation.'' H.R. 10, the 9/11 Recommendations Implementation Act, 
includes these very provisions just as the 9/11 Commission recommended.
  We ease the liability problems for first responders crossing 
jurisdictional boundaries so they do not need to worry they will be 
subject to some other liability regime when they help out in time of 
need. The Menendez bill ironically limits this liability relief to the 
capital here, but it does not do anything for the rest of the Nation as 
the 9/11 Commission recommended. It does not even do anything for the 
author's home State of New Jersey. If New Jersey first responders were 
to go into New York City and help out, they would not have the 
liability relief that the 9/11 Commission recommended that they have. 
First responders from across the country have endorsed the first 
responder provisions in H.R. 10.

[[Page H8841]]

  The commission, the 9/11 Commission, recommended that moneys be 
allocated to State and local governments on the basis of threat and on 
the basis of risk. That is exactly what H.R. 10 does. But the Menendez 
substitute does not require the Secretary of Homeland Security to 
prioritize applications on the basis of risk. It does not require 
States to prioritize the allocation of their grant awards to localities 
on the basis of risk.
  The Menendez substitute does not guarantee first responders a voice 
in establishing terrorism preparedness benchmarks that will guide 
spending. H.R. 10, on the other hand, has a task force comprised of 
first responders themselves.
  The Menendez substitute does not identify either permitted or 
prohibited use for first responder grant awards, and it does not 
provide any penalties for failing to get money to first responders on 
time. H.R. 10 has strict penalties for failing to get funds to their 
intended destination, the men and women on the front lines, within 45 
days. For that reason, all of the major first responder groups, 
including the International Association of Firefighters, the 
International Association of Fire Chiefs, the National Volunteer Fire 
Council, the Fraternal Order of Police, the Major Cities Chiefs 
Association, and the National Sheriffs Association have endorsed the 
Faster and Smarter Funding For First Responders Act included in this 
legislation. The Menendez bill is not supported by any first responder 
group.
  Let us reject the Menendez substitute and enact H.R. 10.

                              {time}  2300

  Mr. MENENDEZ. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, the gentleman from California (Chairman Cox) just made 
a statement, but his committee reported out a bill that contained a 
historic $3.4 billion commitment to first responders. Was that 
provision included in H.R. 10? The answer is no. Let us look at some of 
what the 9/11 commissioners have said: ``The Senate bill is a giant 
step forward'' and ``the right vehicle for our recommendations.'' That 
incredible vote on a bipartisan basis in the Senate is the basis of the 
Menendez substitute. Lee Hamilton said, ``The House bill contains a 
number of proposals that go beyond the commission's recommendations'' 
and could very well, in essence, affect the nature of getting a bill 
done in the 108th Congress.
  The statement of the Family Steering Committee, in support of Shays-
Maloney, as we have heard, which is, in essence, the Menendez 
substitute, said, ``If House Members present H.R. 10 for vote rather 
than a choice that includes H.R. 5150 legislation, enacting the 9/11 
Commission reforms may be doomed.''
  Let me try to take away all the obfuscation, and, by the way, about 
not submitting amendments, it was our statement that we sought on the 
greatest issue to face this country, the national security of the 
United States and how one responds to the September 11 Commission 
report, we asked for an open rule. An open rule would have let any 
Member of the House work its way and have the House's will work its way 
in front of the American people about what were the best ideas with the 
9/11 Commission's report as a foundation to best secure America. But 
that open rule was not presented. So we would have had all the 
amendments that may have perfected.
  There has been a lot of obfuscation here about what the Menendez 
substitute does and does not do. Let us make it clear once again. It is 
the 9/11 Commission report. It is the Collins-Lieberman-McCain 
legislation. It is what passed in the Senate 96 to 2 with over 51 
Republican Senators and such a bipartisan support. It is, in essence, 
the real reform.
  There are a lot of reasons why people do not want to seek reform. 
There are a lot of turf issues. People do not want to give up their 
abilities. But the only turf we should be fighting for is our 
collective turf as a country, and that is what this institution should 
be doing.
  Let me just go through some of the critical issues. Like the 9/11 
Commission recommendations, the Menendez substitute creates a strong 
National Intelligence Director. They do not.
  Like the 9/11 Commission recommendations, our substitute creates a 
strong National counterterrorism Center. They do not.
  Like the 9/11 Commission recommendations, the Menendez substitute 
mandates strengthening the Nunn-Lugar programs against nuclear 
nonproliferation. They do not.
  Like the 9/11 Commission recommendations, our substitute mandates the 
creation of long-term strategies to win the struggle for ideas in the 
Muslim world. Theirs do not.
  Like the 9/11 Commission recommendations, the Menendez substitute 
provides for much more extensive U.S. efforts in Afghanistan, including 
authorizing an additional $2.8 billion to win the war in what is the 
central part of terror. Theirs does not.
  Like the 9/11 Commission recommendations, our substitute requires the 
Transportation Security Administration to improve explosive detection 
capabilities. Theirs does not.
  Like the 9/11 Commission recommendations, our substitute replaces the 
current patchwork of border screening systems with an integrated 
screening system with one set of standards far beyond what they do. 
Like the 9/11 Commission recommendations, our substitute creates a 
government-wide Civil Liberties Oversight Board to review the use of 
intelligence powers and act as a watchdog. Theirs does not.
  I urge the 25 colleagues on the other side of the aisle who voted for 
the 9/11 Commission to now have the same vision and courage and vote 
for this substitute and let us move forward to real reform and a 
greater, secure America. Vote for the Menendez substitute.
  Mr. HOEKSTRA. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, Lee Hamilton, the distinguished vice chairman, a former 
Member of this body, the vice chairman of the 9/11 Commission, stated 
what should be obvious to all of us: that as the Senate and the House 
conduct the normal legislative process, he fully expected each body 
would refine and put their imprint on the commission's recommendations. 
He said at a September 28 press conference and on other occasions that 
the commission's recommendations are not set in stone. In that sense I 
applaud the Senate for putting its imprint on the commission's 
recommendations while crafting its bill.
  I am proud of H.R. 10 and the work that our committees have done on 
this bill. H.R. 10 is the House's imprint, its product in responding to 
the commission's recommendations.
  Let us be clear about what the substitute is and is not. It is the 
hastily drafted combination of the text of at least two bills 
introduced in the other body. It is a version that has never been 
reviewed by any committee in the other body or been voted on in the 
other body. The Menendez amendment asks the House to simply accept 
titles II through XI of the McCain-Lieberman bill as introduced. These 
provisions of McCain-Lieberman have not been reviewed by any committee 
in the other body. We are also being asked to ignore the modifications 
made to these provisions during floor consideration in the other body.
  Similarly, the Menendez amendment asks the House to simply ignore the 
deliberations on the floor of the other body. Over 6 days with regards 
to the Collins-Lieberman bill, title I of the Menendez substitute, the 
Collins-Lieberman bill is frequently described as being ``battle-
tested,'' but now we are being requested to ignore the results of the 
biggest test, the amendment process of the other body.
  If this is the biggest debate in the House, that is a poor excuse for 
a legislative proposal to cobble together pieces from the other body 
that have never been deliberated, that have never been voted on, and 
that did not pass the other body.
  The House can do better, and we have done better than what the other 
body has done and what has been proposed in this amendment.
  H.R. 10 is a comprehensive bill. H.R. 10 effectively implements the 
framework of recommendations contained in the report of the 9/11 
Commission, especially its core recommendations regarding the 
restructuring of the intelligence community.
  Mr. Chairman, for these reasons I urge my colleagues to join me in 
opposing the Menendez amendment in the nature of a substitute and later 
on vote overwhelmingly to support H.R. 10.
  Mr. SIMMONS. Mr. Chairman, I rise today to support my colleague from 
New Jersey, Mr.

[[Page H8842]]

Menendez's amendment to H.R. 10, the 9/11 Recommendations 
Implementation Act.
  Every American remembers where they were on September 11, 2001. On 
that morning the American people began a journey together. No one can 
predict how long we will be on this journey. Luckily, we were given the 
beginnings of a guidebook for this journey, provided by the bipartisan 
men and women of the 9/11 Commission.
  The American people watched over the last many months as the 9/11 
Commission met to examine facts and question witnesses. Together they 
pieced together the failures and shortcomings that led to the terrible 
attacks of September 11. The Commission then produced a series of 
recommendations for the American people that came out in July and 
literally flew off bookstore shelves around the country.
  Like my fellow citizens I took the time to read the 9/11 Commission's 
final report and contemplate the more-than 40 recommendations. I like 
many of the recommendations made by the Commission. There are others 
that I do not like. But I respect the fact that this is an important 
start, and a blueprint that many of the American people have read, and 
understand.
  On July 28, 2004, I joined my colleague from Connecticut, Christopher 
Shays, to announce my participation in a bipartisan 9/11 Commission 
Caucus whose purpose was to promote their recommendations in a 
bicameral and bipartisan fashion. Subsequently, we introduced a bill in 
the House that mirrored the 9/11 Commission recommendations.
  Senator Susan Collins of Maine and my Senator, Joe Lieberman of 
Connecticut, also had the wisdom to introduce legislation in the other 
body that mirrors the recommendations of the 9/11 Commission. The 
administration has endorsed the Collins-Lieberman legislation; the 9/11 
Commission Families have endorsed this legislation and last night the 
Senate overwhelmingly passed the legislation.
  Today we have the opportunity to do the same by voting in favor of 
the Menendez amendment. I will be supporting this amendment to show my 
constituents and the American people that indeed we are on this journey 
together, that we will not taint the 9/11 Commission's recommendations, 
that we will start reforming our intelligence community and that we 
invite Americans to join us as we build from these recommendations.
  Mr. MEEKS of New York. Mr. Chairman, I rise today in strong support 
of the Menendez substitute to H.R. 10, the only version supported by 
the House's 9/11 Commission Caucus, the 9/11 families and the 
legislation most similar to the bill adopted by the Senate yesterday by 
a 96-2 vote.
  This bipartisan substitute fully implements the forty-one 9/11 
Commission recommendations and adds no extraneous provisions. It 
implements critical recommendations not fully addressed by H.R. 10, 
including the creation of a strong National Intelligence Director and 
giving that director full budgetary and personal authority, as the 9/11 
Commission recommends.
  The 9/11 Commission came together because America and the victims' 
families demanded answers and solutions. The bipartisan group of 
Commissioners--five Democrats and five Republicans--worked tirelessly 
to fulfill their commitment to make America safe. We should honor their 
efforts and fulfill our commitment to America by producing a bill that 
responds directly to the Commissions' recommendations--with no added 
controversial or unrelated provisions. The Menendez substitute helps us 
do just that by ensuring that we have a clean bill on the President's 
desk before we adjourn.
  Let's not play politics with a bill as important to the American 
people as this one. Pass the Menendez substitute.
  Mr. KIND. Mr. Chairman, I rise today in support of the Menendez 
substitute to H.R. 10, legislation to reform our country's intelligence 
agencies. I support this substitute so that as a country we can move 
forward quickly to a short conference and then give the President a 
completed bill to sign. The security of the people of western Wisconsin 
is of an utmost priority, and I am supporting measures that will make 
changes necessary to protect our homeland.
  On September 11, 2001, our Nation was brutally attacked and several 
thousand of our citizens were killed. Our country was shocked and 
dismayed, but we were far from defeated. The resolve of our Nation is 
strong, and we stood up to the challenge and struck back.
  After the attacks on that fateful day in September, many questions 
about our homeland security were raised. I supported and worked for a 
comprehensive Homeland Security bill that created the Homeland Security 
Department and cabinet level secretary. The creation of the Homeland 
Security Department was an important first step for our country to 
ensure the security of its citizens. But there remained many unanswered 
questions about our Nation's intelligence failures before September 11, 
which is why I supported the creation of the independent bipartisan 9/
11 Commission.
  On July 22, 2004, the 9/11 Commission provided a full and complete 
report to Congress and the American public. I praise the Commission for 
its excellent work, leadership, patriotism, and service to our country. 
We owe it to the families of the victims of 9/11 and to the citizens of 
our country to use this report to make certain this type of attack 
never happens again; I fully support the unanimous and bipartisan 
recommendations of the 9/11 Commission.
  That is why I am a cosponsor of H.R. 5150, the Shays/Maloney bill to 
implement the Commission's recommendations. This legislation is the 
bipartisan companion bill to the Collins/Lieberman bill which just 
passed in the Senate on October 6, 2004, by a vote of 96-2. I am 
disappointed that House leadership has refused us the opportunity to 
debate this bill. Rather, today on the House floor we are debating a 
different 9/11 bill, which was drafted solely by the Republican 
leadership, which is not bipartisan, not supported by the 9/11 
Commission members, or most of the families of the victims of September 
11.
  Regrettably, it is rare these days for Republicans and Democrats to 
come together and work toward the greater good of the country. But that 
is exactly what happened this summer when five Democrats and five 
Republicans on the 9/11 Commission voted unanimously on 41 key 
recommendations to make our country more secure. And, this October, it 
happened again when the Senate worked together to pass the Collins/
Lieberman bill endorsed by the 9/11 Commission.
  Unfortunately, in the House, intelligence reform has taken a turn in 
the opposite direction and we are being forced to debate and vote on a 
bill that is not endorsed by the 9/11 Commission.
  H.R. 10 would strip power from the National Intelligence Director and 
the National Counterterrorism Center; it does not create an office to 
oversee civil liberties; and, H.R. 10 does not increase congressional 
oversight of our intelligence agencies. Further, this bill includes 
several provisions not recommended by the 9/11 Commission, including 
increased removal of immigrants without a hearing or review, and easing 
rules of the U.N. Convention Against Torture. Essentially, H.R. 10 
strips away the 9/11 Commission's recommendations and adds language not 
endorsed by the Commission.
  When the security of our country is at hand, politics should not play 
a part. But, again, here we are debating a bill without support from 
both sides of the aisle, and the will of the few is being forced upon 
the many. This is not the right way to make important changes for a 
nation's security. The partisanship of H.R. 10 will only delay making 
our country safer. We need to pass H.R. 5150, so it can be brought to 
the President's desk immediately, instead of further delaying the 
process by passing H.R 10.
  But if the substitute fails, I have decided that for the purpose of 
moving this process forward to conference quickly I am going to support 
H.R. 10. When the safety of our country is at hand we need to be able 
to cross the aisle and work with our colleagues to protect our country. 
After passage of H.R. 10, I plan to work closely with the members of 
the conference committee on the 9/11 Commission Recommendation 
Implementation Act to more closely align the conference report with the 

9/11 Commission's 41 recommendations and the recently passed Senate 
bill.
  Mr. Chairman, the 9/11 Commissioners' recommendations are thorough 
and complete, and I stand behind them. Let us make our country safer 
now, not later. I urge my colleagues to support the substitute and the 
underlying bill.
  Mr. HYDE. Mr. Chairman, while there may be some provisions in the 
Menendez substitute worthy of discussion during conference on this 
measure, I rise in opposition to the amendment.
  Our review of the Commission's report was performed with a 
seriousness and deliberation worthy of the subject and the task. The 
preparatory effort included full committee hearings, scores of 
briefings by the administration and others on the range of issues, the 
input of many experts, and days and weeks of effort devoted to 
gathering the requisite information. From this, we developed what we 
believe are measures necessary to give form and meaning to the often 
diaphanous wording of each of the Commission's recommendations that 
fall within my committee's jurisdiction.
  The Menendez substitute offers little more than a mere restatement of 
the Commission's recommendations and the unspoken premise that 
difficult problems can be easily solved by the simple act of throwing 
money at them. We have no shortage of examples of government programs 
where this approach has not only failed, but actually rendered our 
problems worse. Here, the greatest danger stems from the complacency 
that will result from our merely having increased spending while 
congratulating ourselves for having taken swift action.

[[Page H8843]]

  Instead, as the authors of H.R. 10, we crafted practical solutions to 
fulfill the recommendations. We took abstract report recommendations 
such as ``offer an example of moral leadership, commit to treat people 
humanely, abide by the rule of law'' and made them concrete.
  Taken in its totality, H.R. 10 is a far superior product because it 
reflects the concerted and consolidated efforts of several committees 
and lays out direct, specific policy guidance on how to confront these 
evils. The Senate may have voted to pass a similar measure to the 
Menendez substitute, but this is our chance to vote for something 
better, more concrete. I urge a ``no'' vote on the Menendez substitute 
amendment.
  Mr. MENENDEZ. Mr. Chairman, I yield back the balance of my time.


                Announcement By The Chairman Pro Tempore

  The CHAIRMAN pro tempore (Mr. Nethercutt). Members are reminded to 
refrain from improper references to the Senate.
  The question is on the amendment in the nature of a substitute 
offered by the gentleman from New Jersey (Mr. Menendez).
  The question was taken; and the Chairman pro tempore announced that 
the noes appeared to have it.
  Mr. MENENDEZ. Mr. Chairman, I demand a recorded vote.
  The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment in the nature of a substitute offered by 
the gentleman from New Jersey (Mr. Menendez) will be postponed.
  It is now in order to consider amendment No. 2 printed in House 
report 108-751.


                 Amendment No. 2 Offered by Mr. Simmons

  Mr. SIMMONS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN pro tempore. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Simmons:
       Page 101, after line 3 add the following new section:

     SEC. 1065. SENSE OF CONGRESS AND REPORT REGARDING OPEN SOURCE 
                   INTELLIGENCE.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the National Intelligence Director should establish an 
     intelligence center for the purpose of coordinating the 
     collection, analysis, production, and dissemination of open 
     source intelligence to elements of the intelligence 
     community;
       (2) open source intelligence is a valuable source that must 
     be integrated into the intelligence cycle to ensure that 
     United States policymakers are fully and completely informed; 
     and
       (3) the intelligence center should ensure that each element 
     of the intelligence community uses open source intelligence 
     consistent with the mission of such element.
       (b) Report.--Not later than June 30, 2005, the National 
     Intelligence Director shall submit to the congressional 
     intelligence committees a report containing the decision of 
     the National Intelligence Director as to whether an open 
     source intelligence center will be established. If the 
     National Intelligence Director decides not to establish an 
     open source intelligence center, such report shall also 
     contain a description of how the intelligence community will 
     use open source intelligence and effectively integrate open 
     source intelligence into the national intelligence cycle.
  The CHAIRMAN pro tempore. Pursuant to House Resolution 827, the 
gentleman from Connecticut (Mr. Simmons) and a Member opposed each will 
control 5 minutes.
  The Chair recognizes the gentleman from Connecticut (Mr. Simmons).
  Mr. SIMMONS. Mr. Chairman, I yield myself such time as I may consume.
  I rise today to urge my colleagues to support my Open Source 
Intelligence amendment to H.R. 10, the 9/11 Recommendations 
Implementation Act. And I thank the Committee on Rules, the chairman of 
the Permanent Select Committee on Intelligence, the chairman of the 
Committee on the Judiciary, and, of course, the chairman of the 
Committee on Armed Services for their efforts to help me perfect this 
amendment, and I also thank them for their support of the amendment.
  Essentially what this amendment does is it expresses a sense of 
Congress that the new National Intelligence Director should establish 
an intelligence center for the production of open source intelligence, 
and it instructs the National Intelligence Director to consider 
establishing this new center and to report to Congress by June 30, 
2005.
  Many people ask me what is open source intelligence. And it is really 
very simple. Open source intelligence, or OSINT, is an intelligence 
discipline based on information collected from open sources, which 
could be newspapers, the Internet, books, phonebooks, scientific 
journals, radio, and television. And once this information is collected 
from these open sources, it is processed, analyzed, used to produce 
intelligence, which is then disseminated to intelligence consumers.
  Open source is not new. The Foreign Broadcast Information Service has 
been around for many years, and their daily reports contained 
translated broadcasts, news agency transmissions, newspapers, and other 
statements from nations around the world. The daily reports represent a 
unique resource for the study of foreign affairs. But we can do better 
than just these daily reports.
  The 9/11 Commission report supported the creation of a new Open 
Source Agency and staff statement No. 11 from that report said, Open 
sources have always been the bedrock source of information for 
intelligence.
  One of the great advantages of open source intelligence is it is 
relatively inexpensive, and we can share it with others including our 
allies, soldiers from foreign governments; and best of all, we can 
share open source intelligence with the American people.
  For example, for those interested in Iran's nuclear proliferation 
activities, I have an aerial photograph in front of me dated 2002 
showing the construction of buildings for uranium enrichment, and then 
2 years later it shows that those facilities have been buried 
underground. If the Iranians claim there is nothing sensitive taking 
place on that site, we look at a larger photograph and here we see the 
construction, but here when these facilities have been buried 
underground, we see a new guard fence with guard posts around.
  The best part of these aerial photographs is they are unclassified, 
and we can describe what is going on in Iran and share it not only with 
Members of this Chamber but with our allies and with the American 
people.
  Even though the 9/11 Commission report supports creation of an Open 
Source Agency, my amendment simply asks the National Intelligence 
Director to report to Congress next June with his or her 
recommendation.
  Mr. Chairman, at a time when the performance of the U.S. intelligence 
community is being questioned and when every scrap of information is 
needed to put together the puzzle presented by terrorist operations, 
there could be no better time to incorporate the value of open source 
intelligence to the overall product than right now.
  Mr. Chairman. I urge my colleagues to support my open source 
intelligence amendment to H.R. 10, the 9/11 Recommendations 
Implementation Act.
  I thank the Rules Committee for allowing for consideration of this 
amendment and I thank Intelligence Chairman Pete Hoekstra, Judiciary 
Committee Chairman Jim Sensenbrenner, and Armed Services, Chairman 
Duncan Hunter for working with me to perfect this amendment. I also 
thank them for their endorsements of the amendment.
  This amendment expresses a sense of Congress that the new National 
Intelligence Director should establish an intelligence center for the 
production of open source intelligence. It instructs the National 
Intelligence Director to consider establishing this new center and to 
report to Congress by June 30, 2005 with a decision on whether or not 
to create such an OSINT Center.
  Many people ask me to explain what exactly is open source 
intelligence or OSINT. It is really very simple.
  OSINT is an intelligence discipline based on information collected 
from open sources. These sources include newspapers, the Internet, 
books, phone books, scientific journals, radio and television 
broadcasts. Once this information is collected from publicly available 
sources, it is processed and analyzed to produce intelligence, which is 
subsequently disseminated to intelligence consumers.
  The discipline of OSINT is nothing new and our intelligence community 
has been using it for a long time. For example, the Foreign Broadcast 
Information Service works with open sources. Their Daily Reports 
consist of translated broadcasts, news agency transmissions, 
newspapers, periodicals and government statements from nations around 
the globe. These media sources are monitored in their original 
language, translated into English, and issued daily to U.S. Government 
officials. The Daily Reports represent a unique resource for the study 
of foreign affairs, business, law, sociology, political science and 
more, covering all regions of the world.

[[Page H8844]]

  It is important to know that the 9/11 Commission Report recommends 
creation of a new Open Source Agency. Staff Statement No. 11 of the 9/
11 Commission Report states the following:

       Finally, open sources--the systematic collection of foreign 
     media--have always been a bedrock source of information for 
     intelligence. Open sources remain important, including among 
     terrorist groups that use the media and the Internet to 
     communicate leadership guidance. The Foreign Broadcast 
     Information Service performed this mission. During the early 
     1990s that service had been ``shredded,'' as one official put 
     it to us, by budget cuts.

  In the mid-1990s, it was my honor to command the 434th Military 
Intelligence Detachment (MID), a U.S. Army Reserve unit affiliated with 
Yale University and located in New Haven, Connecticut. With the 
active participation of CWO-4 Alan D. Tompkins and SGT Eliot A. 
Jardines, our unit wrote the first handbook for Open Source 
Intelligence (OSINT) for the U.S. Army. The Military Intelligence Corps 
accepted it as doctrine.

  One of the great advantages of Open Source Intelligence is that it is 
relatively inexpensive. Another advantage is that we can share it with 
others without fear of compromising sensitive sources and methods. We 
can share it with our soldiers, share it with our international allies, 
and most importantly--we can share it with the American people.
  I have with me overhead photos that illustrate the utility of Open 
Source Intelligence. They describe Iran's activities to construct and 
then bury a uranium enrichment facility. You can clearly see that over 
two years the facility was completed, buried and secured with a fence 
and guard towers. The best part is that these aerial photos are not 
classified and can be shared with our allies and the American people 
when discussing Iran's nuclear proliferation activities.
  Why is OSINT important today? The ``information explosion'' has 
dramatically increased both the quality and quantity of the information 
available in the public domain. Because this information is 
unclassified, it can be shared quickly and freely, and acted upon.
  Unfortunately, our country's intelligence service has not adequately 
coordinated our OSINT efforts. The time has come to revisit the 
importance of Open Source Intelligence and to consider the creation of 
an OSINT center.
  Although the 9/11 Commission Report supports creation of an Open 
Source Agency, my amendment simply asks the new National Intelligence 
Director to report to Congress his or her recommendation on this 
matter.
  Earlier this year when the House considered the Intelligence 
Authorization Act my colleagues accepted a similar amendment that 
directed the Director of Central Intelligence (DCI) to focus on the 
importance of OSINT and report to Congress in six months on the 
progress being made in utilizing OSINT.
  At a time in our history where the performance of the U.S. 
Intelligence Community is being questioned, and where every scrap of 
information is needed to piece together the puzzle presented by 
terrorist operations, there could be no better time to incorporate the 
value of OSINT to the overall intelligence product available to our 
policy makers and military forces.
  I urge you to join me in support of my amendment on Open Source 
Intelligence.
  Mr. Chairman, I reserve the balance of my time.
  Ms. HARMAN. Mr. Chairman, I rise to control the time on the 
amendment.
  The CHAIRMAN pro tempore. Is the gentlewoman opposed to the 
amendment?
  Ms. HARMAN. I am not, Mr. Chairman.
  The CHAIRMAN pro tempore. Without objection, the gentlewoman is 
recognized to control 5 minutes.
  There was no objection.
  Ms. HARMAN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, the amendment's sponsor knows a lot about intelligence, 
having served as staff director for the Intelligence Committee in the 
other body under the late great Senator Goldwater, author of Goldwater-
Nichols, the law that prescribes jointness in the military just like 
the approach some of us want to take to the intelligence community.

                              {time}  2315

  The gentleman is rightly a supporter of greater use of open sources, 
and I would agree with him that our entire intelligence community could 
benefit by greater use of open sources. I would just point out that 
some of the photos he showed us were very interesting, and to my mind, 
reveal a lot more information than the top line of the intelligence 
budget. But be that as it may, his amendment, I think, is a sensible 
idea, if only to draw more attention to the importance that open 
sources can provide.
  This is a sense of the Congress, so for those who think that centers 
should only be mission oriented, it is only a sense of the Congress 
that we should pay more attention to open sources.
  Mr. Chairman, I am pleased to support the gentleman's amendment.
  Mr. Chairman, I would comment further only this, that I regret the 
tone of the debate on the last amendment. It troubles me a lot. I think 
everyone sitting here really cares that we get it right about 
intelligence reorganization.
  Many of us have studied it for years. I wish the House had taken the 
lead on the subject months and months ago, because we had very good 
information on the problems and very good legislation drafted. But we 
stalled out, and the other body filled the vacuum and we are where we 
are.
  Mr. Chairman, I yield 1 minute to the gentleman from New Jersey (Mr. 
Holt), a member of our committee,
  Mr. HOLT. Mr. Chairman, I thank the ranking member for yielding me 
time.
  Mr. Chairman, we have discussed this matter quite a bit in the 
Permanent Select Committee on Intelligence and we agree that there 
should be more use of open sources. In fact, it should be routine, an 
integral part of every analyst's and every agency's work. It may not be 
necessary to have a center, as the gentleman suggests in his amendment, 
but I think as a sense of Congress this amendment is useful to 
emphasize the importance that open sources of information bring.
  Excessive reliance on information obtained from secret sources is not 
necessarily a good thing, and time and again, in example after example, 
we have discovered that openly published and openly discussed 
information is indeed superior, more correct than some of the secret 
information that analysts have been relying on excessively. So we think 
this is heading in the right direction.
  Mr. SIMMONS. Mr. Chairman, I yield 30 seconds to the gentleman from 
Michigan (Mr. Hoekstra), the distinguished chairman of the Permanent 
Select Committee on Intelligence.
  Mr. HOEKSTRA. Mr. Chairman, I thank the gentleman for yielding me 
time.
  By creating an Open Source Intelligence Center under the National 
Intelligence Director to collect, analyze, produce and disseminate open 
source materials to the intelligence communities, the information 
becomes a building block for further collection, rather than a 
forgotten tool.
  I rise in support of the Simmons amendment. It creates a valuable 
tool under the authority of the National Intelligence Director to make 
open source intelligence more acceptable and available to the agencies 
of the intelligence community.
  Ms. HARMAN. Mr. Chairman, I yield to the gentleman from North 
Carolina (Mr. Watt) for the purpose of making unanimous consent 
request.
  (Mr. WATT of North Carolina asked and was given permission to revise 
and extend his remarks.)
  Mr. WATT of North Carolina. Mr. Chairman, I rise in support of the 
Menendez substitute amendment.
  Mr. Chairman, I rise in support of the Menendez Substitute, and in 
particular, its creation of a Privacy and Civil Liberties Board within 
the Executive branch as unanimously recommended by the 9/11 Commission. 
After months and months of study, and months and months of hearing 
testimony and reviewing volumes of documents, the 9/11 Commission 
unanimously recommended that there be a board ``within the government 
whose job it is to look across the government at the actions we are 
taking to protect ourselves to ensure that liberty concerns are 
appropriately considered.''
  Because I take the protection of our constitutional rights and 
liberties very seriously, I offered an amendment during the Judiciary 
Committee markup of this bill to establish an independent, bipartisan 
board to oversee compliance with civil liberties and the Judiciary 
Committee bill included a version of the oversight board. The Menendez 
substitute establishes such a board. Now there are those who might 
suggest that an advisory board created by the President by executive 
order satisfies the mandate of the 9/11 Commission. It does not. That 
board consists of Administration insiders with advisory functions.
  In the words of the Vice Chairman of the 
9/11 Commission, we must establish a board

[[Page H8845]]

that is ``robust,'' one that has the authority to secure our freedoms 
against abuse. We all agree that our Nation must adjust to confront the 
terrorist threat, but in doing so we cannot undermine the principles 
for which Americans stand.
  One need not look far to imagine the types of abuses that a Privacy 
and Civil Liberties Board could expose and prevent. Should innocent 
Americans be held merely on suspicion, without the opportunity to 
consult with counsel and without the ability to speak with their 
family? After two years of detention without access to family or 
counsel, a U.S. citizen was recently released from Guantanamo because 
he was no longer of ``intelligence value.'' Should Americans be willing 
to miss graduations, baptisms, weddings, and funerals, because their 
names are erroneously on a no-fly list? If Senator Kennedy, Congressman 
John Lewis and Congressman Young find themselves detained as suspected 
terrorists, who will be next? Just last week, a federal district court 
ruled that the FBI's use of ``national security letters'' to compel the 
production of customer records from internet service providers was 
unconstitutional.
  In short, just as we need to make adjustments as we fight terrorism, 
we also need this independent board to make sure that fighting 
terrorism is done in a manner that does not change the fundamental 
nature of our society. In closing, let me quote directly from the 9/11 
Commission's findings in connection with its recommendation that there 
be a board to protect civil liberties:

       We must find ways of reconciling security with liberty, 
     since the success of one helps protect the other. The choice 
     between security and liberty is a false choice, as nothing is 
     more likely to endanger America's liberties than the success 
     of a terrorist attack at home. Our history has shown us that 
     insecurity threatens liberty. Yet, if our liberties are 
     curtailed, we lose the values that we are struggling to 
     defend.

  The substitute implements the recommendation of the 9/11 Commission 
and should be supported. I urge my colleagues to vote ``yes.''
  Mr. SIMMONS. Mr. Chairman, I yield 30 seconds to the gentleman from 
California (Mr. Hunter), the distinguished chairman of the Committee on 
Armed Services.
  Mr. HUNTER. Mr. Chairman, I will not take that much time, but just to 
say like the gentleman that offered this amendment, this amendment is 
practical, it is a smart thing to do, and we support it very strongly.
  Ms. HARMAN. Mr. Chairman, I yield to the gentlewoman from Texas (Ms. 
Jackson-Lee) for the purpose of making a unanimous consent request.
  (Ms. JACKSON-LEE of Florida asked and was given permission to revise 
and extend her remarks.)
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise to support the 
Menendez substitute in recognition of fixing the human intelligence 
problem we have in the intelligence system and recognizing the 9/11 
Commission's work.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, it pleases me that the 
Committee on Rules had the prudence to make the amendment offered by 
the Gentleman from New Jersey, Mr. Menendez, in order. This important 
amendment has been endorsed by the 9/11 Commission and embodies the 
provisions found in the Collins/Lieberman proposal, S. 2845 and the 
McCain/Lieberman proposal, S. 2774.
  In our work on H.R. 10, we have a duty to take in to account the 
families that will be affected. We in this august body have a duty to 
take into account that these families--in fact, all American families, 
will be waiting and watching to see if this body will act responsibly, 
appropriately, and adequately.
  The base bill includes over 50 extraneous provisions that were not 
recommended by the 9/11 Commission. Within these extraneous provisions 
are legislative ``poison pills'' that will ultimately frustrate our 
overall purpose--to make America safe. These poison pills include:
  Giving the President ``fast track'' authority to reorganize the 
intelligence agencies, undermining the reforms recommended by the 9/11 
Commission;
  Giving the President authority to bypass Senate confirmation of the 
Director of the CIA and other key intelligence and defense officials, 
weakening congressional oversight;
  Giving federal law enforcement officials new authority to deport 
foreign nationals, revoke visas, and deny asylum without judicial 
review;
  Creation of new national databases of drivers licenses, birth 
certificates, and criminal histories, raising civil liberties and 
privacy concerns; and
  Expansion of the authority of the Justice Department by relaxing 
grand jury secrecy requirements and increasing its ability to conduct 
secret surveillance.
  I serve on the House Select Committee on Homeland Security, and it 
troubles me that while that body received a referral for markup, the 
leadership has chose not to schedule such a hearing. The very committee 
that would presumably hold the most jurisdiction over this matter 
deferred its opportunity to make this legislation better. That does not 
sit well with my colleagues on this side of the aisle and it does not 
sit well with the families of the victims of 9/11--it does not sit well 
with the American people.
  Furthermore, while the September 11 Commission has set forth its bi-
partisan suggestion for rebuilding and improvement, we cannot even move 
legislation that authorizes homeland security spending through a markup 
by the main committee of jurisdiction. These issues are indicative of a 
body that has its priorities misplaced.
  H.R. 10 will have to serve as the blueprint for this nation's ability 
to fight terrorism. Therefore, it is our duty to comprehensively and 
earnestly debate the merits of this legislation without partisan 
politics and pre-election motives. Since this proposal was crafted 
without giving Democrats an adequate opportunity to provide input, it 
is clear that, while the September 11 Commission's (9/11 Commission) 
report recommendations are a bi-partisan product, H.R. 10 is not. 
Hence, this bill is the symbol of leadership that is guided by 
partisanship when it should be guided by the needs of the American 
people. This bill is the symbol of misplaced priorities.


                            Border Security

  The state of security at our nation's land border is extremely 
troubling. we are only safe if we have secured our borders. Most of the 
people who come into our country come across our land borders.
  Yet the Republican House of Representatives doesn't want to make 
necessary investments at our nation's ports of entry and between the 
ports of entry to keep terrorists out. Apparently, in light of what 
they have proposed in the 9/11 bill, Republicans are focused 
exclusively on finding new ways to kick the bad guys out.
  I've got news for you all--something the American people know--Once 
terrorists are in the US, it's too late. The goal should be to keep 
them out in the first place, but in a manner that respects their civil 
liberties.
  What we must do is make it harder for terrorists to get into this 
country.
  To do this we need to invest in law enforcement resources at the 
border--at and between our Nation's ports of entry.
  Security means investment in personnel, technology and infrastructure 
that will keep Americans safe.
  Security means having a comprehensive unified border security 
strategy.
  The Administration has failed to invest in the expansion and 
improvement of infrastructure and staffing at our nation's ports of 
entry.
  We only have 1000 more border patrol agents than we did on 9/11--that 
is a three percent increase per year.
  The Administration has failed to invest in technology to monitor the 
land borders. Much of the technology at the southern border is more 
than a quarter century old.
  Today, millions of people who cross our borders are not checked 
against any database and the intelligence databases available to front 
line officers are antiquated and not fully integrated or interoperable.
  The Administration has failed to secure federal parks, wildlife 
sanctuaries, forests and Indian reservations--some of these areas have 
experienced the largest increases in narcotics and human smuggling.
  The Administration has failed to budget for adequate detention space. 
Tens of thousands of illegal immigrants have been released into U.S. 
communities. Of those released 80-90 percent fail to appear for 
deportation proceedings.
  Perhaps most glaring is the failure of the Administration to develop 
a comprehensive long term interagency border strategy.
  Unless the Administration acts in these areas, American will not be 
safe.


                       Convention Against Torture

  Originally, I planned to offer an amendment that would remove section 
3032 from the 9/11 Recommendations Implementation Act. Section 3032 
would retroactively authorize the deportation of aliens to countries 
where they are likely to be tortured. Sending people to countries where 
they would face torture is morally wrong, and it would violate the 
United Nations Convention Against Torture (CAT). Section 3032 also 
would make it harder to establish eligibility for CAT relief, and it 
would prohibit federal court challenges to a decision removing CAT 
protection under the new law except as part of the review of a final 
order of removal.
  Article 3 of the Convention forbids a State Party from forcibly 
returning a person to a country when there are substantial grounds for 
believing that he would be in danger of being subjected to torture. In 
ratifying the treaty, the U.S. Senate did not express any reservation, 
understanding, or proviso that might exclude a person from Article 3 
prohibition.

[[Page H8846]]

  I support this absolute prohibition on moral as well as legal 
grounds. Torture is so horrendous and so contrary to our ethical, 
spiritual, and democratic beliefs that it must absolutely be condemned 
and prohibited.
  I want to emphasize that the prohibition in the Convention is country 
specific. It just prohibits deportation to a country where the alien 
will face torture. Also, the grant of CAT protection is temporary. It 
can be removed when a change in conditions eliminates the risk of 
torture.
  I also object to the change in the burden of proof that would require 
the applicant to prove his case by ``clear and convincing evidence'' 
instead of the present ``more likely than not'' standard. Raising the 
standard to this level of certainty would result in sending people to 
countries where they will be tortured.
  Finally, I object to making such changes retroactively and to 
prohibiting federal court review of CAT decisions unless it is part of 
the review of a final order of removal. Petitions for review of a 
removal order must be filed within 30 days. Consequently, section 3032 
would prevent many aliens from having federal court review of adverse 
decisions. This cannot be justified where the consequence of a mistake 
could be subjecting a person to torture.
  In closing, I will quote some sections from a letter that White House 
counsel Alberto R. Gonzalez sent to the editors of the Washington Post 
on October 1, 2004, about the torture provision in the House 
intelligence reform bill:

       The President did not propose and does not support this 
     provision. He has made clear that the United States stands 
     against and will not tolerate torture, and that the United 
     States remains committed to complying with its obligations 
     under the Convention Against Torture and Other Cruel, Inhuman 
     or Degrading Treatment or Punishment. Consistent with that 
     treaty, the United States does not expel, return, or 
     extradite individuals to other countries where the United 
     States believes it is likely they will be tortured.
       As the President has said, torture is wrong no matter where 
     it occurs, and the United States will continue to lead the 
     fight to eliminate it everywhere.


                  state issuance of driver's licenses

  An amendment that would remove subsection 3052(c)(2) from the 9/11 
Recommendations Implementation Act. Subsection 3052(c)(2) would 
prohibit the states from issuing driver's licenses to aliens who do not 
have lawful status.
  Recent estimates indicate that we have between 8 and 14 million 
undocumented aliens in the United States. Subsection 3052(c)(2) would 
prevent many of them from getting driver's licenses. While I understand 
the argument that undocumented aliens are here unlawfully and should 
not be accorded the privilege of having driver's license, the analysis 
of the problem should not stop with that observation. The reality is 
that the undocumented aliens will drive even if they cannot get 
driver's licenses. For most people, it is virtually impossible to 
survive in our society without a car, and it is unrealistic to expect 
the undocumented aliens to give up and leave the country when they find 
out they cannot get driver's licenses.
  A driver's license is not just a privilege for the driver's benefit. 
It also serves state purposes. By licensing drivers, the state can 
ensure that the drivers who receive licenses have acceptable driving 
skills, know traffic laws, and have liability insurance. In addition, 
registering and photographing all drivers helps the state to monitor 
driving records.
  Traffic accidents are the leading cause of death for persons aged six 
to 33, with more than 40 thousand traffic fatalities each year. 
According to a study conducted by the AAA Foundation for Traffic 
Safety, unlicensed drivers are five times more likely to be in fatal 
crashes than drivers with valid licenses.


                    TSA and Passenger Pre-Screening

  This proposal would make the ``Next Generation Airline Passenger 
Prescreening'' provision (Section 2173) more effective while taking 
active measures to protect individual rights and liberties.
  The existing language in Subsection (i) of Section 2173(a)(C) assigns 
the task of testing the next generation passenger prescreening system 
against automatic selectee and no-fly lists and records in the 
consolidated and integrated terrorist watchlist maintained by the 
Federal Government to the ``Assistant Secretary or designee.'' This a 
very loose assignment of a very important task. Moreover, the duties of 
the Assistant Secretary would hardly allow for the time and effort that 
is necessary to perform the functions of this provision to address the 
needs of the American public.
  The Jackson-Lee Amendment would assign this task rather to the 
``Civil Liberties Protection Officer'' of designee thereof--
in consultation with the Assistant Secretary. Therefore, this amendment 
adds teeth to the existing provision in the area of personnel 
assignment.

  The Civil Liberties Protection Officer is the most appropriate 
personnel to perform this function. Its duties are enumerated in 
Section 1022(b) of this legislation:

       (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.

  Under the Jackson-Lee Amendment, the Civil Liberties Officer (CLO) 
would ``assume 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.'' 
Given the functions of the CLO as described in Section 1022, the Next 
Generation Airline Passenger Prescreening program would be developed in 
a way that protects individual liberties and privacy while eliminating 
mistakes that have been made, perhaps, due to a lack of proper skills 
or experience.
  The Jackson-Lee Amendment would also require the CLO to develop 
guidelines, policies, and operating procedures for the (1) 
``collection, removal, and updating'' of the data maintained by the 
prescreening system, (2) criteria for the addition of names to the 
database, (3) security measures to protect the system from unauthorized 
access, (4) a system for correcting erroneous entries, and (5) a 
process that allows individuals who are victims of error to demonstrate 
that an error has been made as well as to allow for a challenge as to 
the inclusion of his/her name in the database. Again, with the 
expertise in the area of civil liberties and privacy rights, this 
function would be performed most efficiently with the inclusion of my 
proposal.
  Moreover, the Jackson-Lee Amendment would enable individuals or 
entities to file civil actions against an agency with respect to the 
challenge.
  According to the Associated Press, Senator Edward Kennedy could not 
fly out to Boston because his name had been listed in the ``no fly'' 
database erroneously. After having made several phone calls, he was 
able to fly to Boston; however, the same thing occurred on his way back 
to Washington. It required three phone calls to the Secretary of 
Homeland Security to correct this error.
  The normal American citizen, however, cannot simply pick up the phone 
and call the Secretary of DHS to address the problem of erroneous 
inclusion in the ``no fly'' database. Therefore, the Jackson-Lee 
Amendment would provide the protection of the Civil Liberties Officer 
and the tort reform provision to address his/her grievances.


                criminal background checks--section 2142

  Lastly, at the Committee level, I offered an amendment that speaks to 
protecting the privacy of employees. This amendment would have stricken 
Section 2142(a) of the base bill before this body, H.R. 10. Section 
2142 of the 9/11 Recommendations Implementation Act (H.R. 10) mandates 
that the Department of Justice establish and maintain a system to 
provide employers with criminal history information of its employees. 
In order for the employer to receive this information, it must submit 
fingerprints or other biometric identifiers of the employee to the 
Department. Once fingerprints or biometric data are submitted, the FBI 
would be required to use the Integrated Fingerprint Identification 
System. (IAFIS) to identify any records of arrest, detention, 
indictment or other formal charge pertaining to the employee and any 
disposition of such charge.
  This body should oppose this unnecessary and intrusive provision 
which would provide a false sense of security, impede the ability of 
employers to hire new workers and impose an undue burden on important 
federal law enforcement resources.
  The measure is unnecessary because employers already have many 
options to conduct

[[Page H8847]]

 criminal history background checks on applicants and employees through 
the public and private sector. The National Crime Prevention and 
Privacy Compact (Title II of Pub. L. 105-251) already provides a 
framework--including privacy safeguards--through which nationwide 
criminal background checks can be conducted by employers on applicants 
and employees through state criminal history repositories when a state 
determines that such a check is appropriate. In addition, employers may 
seek background information from private databases as provided under 
the Fair Credit Reporting Act.
  The FBI database is not sufficiently thorough to provide a truly 
adequate review of an individual's criminal background and would 
therefore provide a false sense of security. According to the 
Department of Justice, ``state systems tend to be more comprehensive 
and up-to-date than the federal system, because state courts report to 
the state system, not the federal system. This is particularly true in 
the case of non-felony arrests and convictions. While federal criminal 
records for felony arrests are improving daily, there are many 
important criminal history details that a prospective . . . employer 
would find important that are not found in federal data bases. These 
include: misdemeanor crimes of domestic violence; misdemeanor sex 
offenses; misdemeanor drug possession offenses; and impaired driving 
offenses.'' (H. Rept. 105-61).
  ChoicePoint's National Criminal File, for example, contains over 170 
million criminal history records from jurisdictions nationwide. In 
contrast, the FBI's NCIC houses an estimated 50 million records. Well 
over 90 percent of ChoicePoint's records are conviction records (not 
arrests or bookings), whereas only 20 percent of the NCIC records 
contain disposition information.
  Universal employee screening would overwhelm insufficient 
infrastructure and would impede an employer's ability to hire new 
workers. While electronic submissions can be processed relatively 
quickly, paper based submissions currently take five to ten business 
days to complete according to congressional testimony by the Department 
of Justice. With expanded submissions, employers can expect the delay 
to increase thus impairing their ability to make hiring decisions.
  Universal federal screening of employees would place an undue burden 
on the law enforcement, diverting resources away from better uses. 
While the IAFIS system is already established, the FBI still would need 
to develop means and capacity for accepting, processing, and responding 
to requests for background checks from employers. The employers from 
which the FBI will receive requests likely will vary widely in terms of 
their knowledge of the background check process and in their technical 
capabilities to collect and transmit requests (including fingerprints) 
to the FBI, requiring additional expenditures of resources by the FBI. 
The Department of Justice has opposed more narrow proposals that did 
not require that checks first be run through state criminal records 
systems. Whereas state criminal records systems are more robust than 
federal records, running background checks through state agencies would 
conserve federal time and expenses. (H. Rept. 105-61).
  The Department also has noted that many state and local law 
enforcement agencies that typically serve as the starting point are 
often ``under-staffed and under-equipped,'' which would limit their 
ability to conduct thorough and timely civil checks and ``could 
eventually result in the need to institute some type of prioritization 
of such checks as the existing infrastructure becomes overloaded.'' 
(Michael Kirkpatrick, FBI, testimony to House Judiciary Subcommittee on 
Crime, Terrorism, and Homeland Security, 3/30/04).

  The federal government's collection of fingerprints or other 
biometric data from all prospective employees lacks adequate privacy 
safeguards. The bill does not provide any privacy protections for the 
applicant/employee that is the subject of the background investigation. 
Employers conducting background checks directly through the Attorney 
General would not be subject to the extensive protections afforded by 
the Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et. seq.) because 
those protections only attach to information an employer obtains from a 
consumer reporting agency--not information the employer obtains 
directly from the government. Thus, under the provision, an employee 
would lose many privacy safeguards otherwise provided under existing 
law. The bill would not require employees to be given notice of the 
background investigation nor would the employee have access to the 
results of the investigation or a means of appealing incorrect 
information as is provided.
  The measure intrudes on the rights of states to regulate the 
dissemination of this sensitive information. Existing law provides the 
states with extensive authority to determine which criminal history 
record information is disseminated within its borders for employment 
and other non-criminal justice purposes. The proposed measure 
effectively would reverse this policy and pre-empt the ability of 
states to regulate this area. Moreover, the proposal would subject 
employees to the laws of states other than where he/she works. Under 
the proposal, an employer may seek a background investigation if 
authorized by the state where the employee works or by the state where 
the employer has its principal place of business. Arkansas, for 
example, could authorize criminal background checks nationwide for 
employees of Wal-Mart and other Arkansas-based businesses. Similarly, 
an employee of General Motors working in North Carolina would be 
subject to Michigan law. Unfortunately, the proposal does not clarify 
and would exacerbate patchwork of state laws pertaining to pre-
employment background investigations. Individual rights can be 
protected while vigorously protecting the Homeland. It is our duty as 
legislators to find that balance.
  Mr. Chairman, in recognition and tribute to the families of the 9/11 
victims, there should never be a price limitation placed on effectively 
securing the Homeland. Nor should solid legislation be ignored or 
thwarted in carrying out the will of the American people. For this 
reason, I fully supported the goals set forth in the Shays-Maloney 
proposal that was not made in order by this Committee.
  Given that the Menendez Amendment has been made in order, I offer my 
full support to the Gentleman. This Democratic substitute has been 
endorsed by the 9/11 Commission and embodies the provisions found in 
the Collins/Lieberman proposal, S. 2845 and the McCain/Lieberman 
proposal, S. 2774.
  The real crime on 9/11 was the failure of the American Government in 
having a real intelligence integrated system that might have thwarted 
the horrific tragedy of 9/11. The focus today pursuant to the 9/11 
Commission to be to vote on legislation that overhauls our broken 
intelligence system, give budgetary authority to the new intelligence 
director and fix the system that did not function on 9/11.
  Our 9/11 families deserve a signed bill, as James Joyce said as told 
to me by Donald and Sally Goodrich, ``It is the now, the here through 
which all future plunges to the past.'' Let's move forward.
  Ms. HARMAN. Mr. Chairman, I yield to the gentleman from Wisconsin 
(Mr. Obey) for the purpose of making a unanimous consent request.
  (Mr. OBEY asked and was given permission to revise and extend his 
remarks.)
  Mr. OBEY. Mr. Chairman, I think both the Menendez bill and the core 
bill are headed in the wrong direction on final passage. I would vote 
against both of them.
  Ms. HARMAN. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, as I said and our other speaker said, this is a good 
amendment. This is a bipartisan issue. I think everybody here cares 
about better intelligence, and it is interesting to note how little 
attention open sources have gotten over the years and how much we have 
lost because we have not paid attention to them. So in that sense I 
think this amendment is extremely inspired to make a point that we must 
focus on this.
  I would, however, like to make sure that the record of some of the 
conversation under the Menendez amendment is accurate, and in that 
connection, I am holding a press release issued by the Central 
Intelligence Agency dated 15 October, 1997, which says at the bottom 
the aggregate amount appropriated for intelligence and intelligence-
related activities for fiscal year 1997 is $26.6 billion. A press 
release was also issued for 1998.
  I would also like to say I do stand corrected. I have looked at the 
language of the Collins bill and what it provides is an alternative. 
That is what the 9/11 Commission also said in terms of organization of 
Congress. ``One alternative is a joint Senate-House authorizing 
committee. The other alternative is a committee in each Chamber with 
combined authorization and appropriations authority.'' The legislation 
does not make a decision between the two.
  Mr. Chairman, I support the amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. SIMMONS. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, at a time of international terrorism, there is no such 
thing as too much intelligence. Open source intelligence could save 
lives and inform our policymakers. Support the amendment.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN pro tempore (Mr. Nethercutt). All time has expired.

[[Page H8848]]

  The question is on the amendment offered by the gentleman from 
Connecticut (Mr. Simmons).
  The amendment was agreed to.
  The CHAIRMAN pro tempore. It is now in order to consider Amendment 
No. 3 printed in House Report 108-751.


                 Amendment No. 3 Offered by Mr. Souder

  Mr. SOUDER. Mr. Chairman, I offer an amendment.
  The CHAIRMAN pro tempore. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Souder:
       At the end of subtitle C of title V (page 493, after the 
     item after line 21) add the following:

     SEC. __. INTEGRATING SECURITY SCREENING SYSTEMS AND ENHANCING 
                   INFORMATION SHARING BY DEPARTMENT OF HOMELAND 
                   SECURITY.

       (a) Immediate Actions.--The Secretary of Homeland Security 
     shall ensure--
       (1)(A) that appropriate personnel of the Department of 
     Homeland Security who are engaged in the security-related 
     screening of individuals and entities interacting with the 
     United States border and transportation systems, have the 
     appropriate security clearances, and need access to the 
     information in the context of their job responsibilities, can 
     promptly access or receive law enforcement and intelligence 
     information contained in all databases utilized by the 
     Department, except as otherwise provided by law or, as 
     appropriate, under guidelines agreed upon by the Attorney 
     General and the Secretary;
       (B) any Federal official who receives information pursuant 
     to subparagraph (A) may use that information only as 
     necessary in the conduct of that person's official duties and 
     subject to any limitations on the unauthorized disclosure of 
     such information;
       (2) the coordination and, where appropriate, consolidation 
     or elimination of duplicative targeting and screening centers 
     or systems used by the Department for security screening 
     purposes;
       (3) the timely sharing of law enforcement and intelligence 
     information between entities of the Directorate of Border and 
     Transportation Security and the Directorate for Information 
     Analysis and Infrastructure Protection, and any other 
     entities of the Federal Government prescribed by the 
     Secretary in consultation with the Director of the Office of 
     Management and Budget; and
       (4) that all actions taken under this section are 
     consistent with the Secretary's Department-wide efforts to 
     ensure the compatibility of information systems and databases 
     pursuant to section 102(b)(3) of the Homeland Security Act of 
     2002 (6 U.S.C. 112(b)(3)).
       (b) Report.--
       (1) Requirement.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of Homeland Security 
     shall submit a report to the Congress that includes the 
     following:
       (A) A description of each center, office, task force, or 
     other coordinating organization that the Department of 
     Homeland Security administers, maintains, or participates in, 
     and that is involved in collecting, analyzing, or sharing 
     information or intelligence related to--
       (i) individuals or organizations involved in terrorism, 
     drug trafficking, illegal immigration, or any other criminal 
     activity; or
       (ii) the screening, investigation, inspection, or 
     examination of persons or goods entering the United States.-
       (B) A description of each database or other electronic 
     system that the Department of Homeland Security administers 
     or utilizes for the purpose of tracking or sharing of 
     information or intelligence related to--
       (i) individuals or organizations involved in terrorism, 
     drug trafficking, illegal immigration, or any other criminal 
     activity; or
       (ii) the screening, investigation, inspection, or 
     examination of persons or goods entering the United States.
       (C) For each description provided under subparagraph (A) or 
     (B)--
       (i) information on the purpose and scope of operations of 
     the center, office, task force, or other coordinating 
     organization, or database or other electronic system, 
     respectively; and
       (ii) an identification of each subdivision of the 
     Department, and each governmental agency (whether Federal, 
     State, or local) that participates in or utilizes such 
     organization or system on a routine basis.
       (D) A description of the nature and extent of any overlap 
     between, or duplication of effort by, the centers, offices, 
     task forces, and other coordinating organizations, or 
     databases and electronic systems, described under 
     subparagraph (A) or (B).
       (2) Classified or law enforcement sensitive information.--
     Any content of the report that involves information 
     classified under criteria established by an Executive order, 
     or the public disclosure of which, 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 the 
     Congress separately from the rest of the report.
       (c) Requirement To Submit Plan.--Within 270 days after the 
     date of the enactment of this Act, the Secretary of Homeland 
     Security shall submit to the Congress a plan describing the 
     actions taken, and those that will be taken, to implement 
     subsection (a). Such plan shall include an analysis of the 
     feasibility of integrating all security screening centers or 
     systems utilized by the Department of Homeland Security into 
     a single, comprehensive system, and actions that can be taken 
     to further coordinate such system with other Federal and 
     private screening efforts at critical infrastructure and 
     facilities.
  The CHAIRMAN pro tempore. Pursuant to House Resolution 827, the 
gentleman from Indiana (Mr. Souder) and a Member opposed each will 
control 5 minutes.
  The Chair recognizes the gentleman from Indiana (Mr. Souder).
  Mr. SOUDER. Mr. Chairman, I yield myself 2 minutes.
  Mr. Chairman, this amendment is pretty simple. It attempts to address 
this. When the Commission talks about stovepiping, these are the 
stoves. This is not even what is called the intelligence community. It 
does not include most of the CIA, the NSA. These are mostly the 
narcotics and border intelligence agencies.
  As we look at this, for example, in El Paso alone, we have a Custom 
and Border Protection Field Intelligence Center, we have a DEA El Paso 
Intelligence Center, an OCDETF Center with a Southwest border 
initiative there also. This is just El Paso.
  We have an Office of National Drug Control HIDTA, and we have a JTF-
6, and the DHS is proposing a new Border Interdiction Support Center.
  So this means in El Paso we have a BORFIC, an EPIC, an OCDETF, a 
SWBI, a HIDTA, a JTF and BISC that we need to have if we are going to 
do a better job of coordinating the intelligence on our southwest 
border and other places.
  If we are going to have DHS actually coordinate these things, we need 
this amendment. This amendment says the Secretary should make sure 
everyone has access to relevant law enforcement. They need to 
consolidate databases, they need to improve information sharing. It 
requires the report to Congress containing an overview of all of the 
agencies' databases and other capabilities. It directs the Secretary to 
submit a plan to Congress, to improve information and intelligence 
sharing within the Department, and it directs the Secretary to ensure 
that information and intelligence sharing is subject to appropriate 
limitations and legal safeguards.
  Mr. Chairman, I reserve the balance of my time.
  Mr. TURNER. Mr. Chairman, I rise to speak on the amendment.
  The CHAIRMAN pro tempore. Is the gentleman opposed to the amendment?
  Mr. TURNER. I am.
  The CHAIRMAN pro tempore. The gentleman from Texas (Mr. Turner) is 
recognized for 5 minutes.
  Mr. TURNER. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I appreciate the gentleman from Indiana offering the 
amendment, which I do intend to support. But the amendment, 
interestingly enough, requires the Secretary of Homeland Security to do 
a whole lot of things that we have already required the Secretary to do 
2 years ago in the Homeland Security Act. I think the amendment, more 
than anything else, shows us how far we have to go in getting this 
Department of Homeland Security to do what we wanted it to do when we 
created the Department in the first place.
  The Homeland Security Act already requires the Department to do 
everything that is in this amendment. Under sections 201 and 892 of the 
Homeland Security Act, we called upon the Secretary to improve 
information sharing, to ensure that all DHS personnel share appropriate 
information. Two years later, this has not been done, thus, requiring 
us to say it again, I guess, as the gentleman has in his amendment.
  Our frontline forces in the Department of Homeland Security clearly 
do not have access to the full range of databases that they should have 
access to to do their job. If a border inspector or law enforcement 
officer has a suspected terrorist in front of them, they need to have 
access to the information about that person. They do not have it today.
  Likewise, the Department of Homeland Security legislation we passed 2 
years ago required the Secretary to ensure appropriate exchanges of 
information with the private sector, which is also called for in the 
gentleman's amendment. Unfortunately, the Department still does not 
provide owners

[[Page H8849]]

of critical infrastructure with the intelligence they need. I 
appreciate the gentleman pointing this out by offering this amendment.
  According to the Department's Inspector General, the Department has 
the lead responsibility to coordinate the terrorist watch list 
information, but thus far they have failed to provide the leadership to 
do it.
  Here we are, 2 years after the creation of the Department of Homeland 
Security, we still do not have a unified terrorist watch list available 
to any agency of our government, as required by the Homeland Security 
Act, evidenced by the Department of Homeland Security's own Inspector 
General report.
  Mr. Chairman, it is interesting to read in the amendment that the 
gentleman requires a report to list all of the offices in the 
Department that have the responsibility for collecting, analyzing and 
sharing information. Again, 2 years ago, the Homeland Security Act made 
the Department's Information Analysis Directorate responsible for this 
mission. Unfortunately, the gentleman is right in suspecting that the 
Information Analysis Infrastructure Protection Directorate has failed 
in the responsibilities that we gave them 2 years ago.
  My colleague's amendment raises a number of very serious oversight 
questions for the Department. In fact, the amendment is nothing short 
of an admission of failure of the Department to carry out the mandates 
of this Congress which we put into law 2 years ago.
  So I thank the gentleman for his amendment. I will join him in 
supporting it.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SOUDER. Mr. Chairman, I thank the gentleman for his support.
  Mr. Chairman, I yield 2 minutes to the gentleman from California (Mr. 
Cox), the distinguished chairman of the Select Committee on Homeland 
Security.
  Mr. COX. Mr. Chairman, I thank the gentleman for yielding me time.
  Mr. Chairman, I rise in support of the amendment offered by the 
gentleman from Indiana (Mr. Souder), which is an important amendment. 
It will ensure that the people responsible for screening border 
crossings, airline passengers and other transportation systems have 
access to all the law enforcement and intelligence information they 
need and it will ensure that they have access to all the law 
enforcement and intelligence information available to the Secretary of 
the Department of Homeland Security.
  It is well-known that several Federal agencies have long maintained 
separate watch lists and that work is well underway to completely 
consolidate these. But the purpose of watch lists is to identify 
terrorists who are attempting to gain entry into the United States.

                              {time}  2330

  If they are not integrated, in the meanwhile, we do not have seamless 
electronic access to that information in multiple databases, and they 
cannot do their job.
  The Department of Homeland Security combined no less than 22 separate 
Federal agencies, and those agencies brought their legacy databases 
with them and their separate screening processes, which were developed 
to aid in their own separate missions before the merging.
  The 9/11 Commission report recommends that ``all points in the border 
system, from consular offices to immigration services, will need 
appropriate electronic access to an individual's file.'' And they note 
that ``scattered units at Homeland Security and the State Department 
perform screening and data mining: instead,'' they say, ``a government-
wide team of border and transportation officials should be working 
together.''
  The 9/11 Commission report stresses the need to have border screening 
systems ``integrated into a larger network of screening points that 
includes our transportation system.''
  This amendment offered by the gentleman from Indiana (Mr. Souder) 
addresses these concerns by ensuring that the Department of Homeland 
Security pursues the best way to link these systems together.
  As chairman of the Select Committee on Homeland Security, I would 
like to thank the gentleman from Indiana (Mr. Souder) for offering this 
important amendment.
  Mr. TURNER of Texas. Mr. Chairman, I yield 1 minute to the 
gentlewoman from Texas (Ms. Jackson-Lee), a distinguished member of the 
Select Committee on Homeland Security.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman for the 
insight he gave us on the duties and responsibilities of the Department 
of Homeland Security, but I want to also thank the gentleman from 
Indiana (Mr. Souder) for this addition. I want to correct any 
suggestions that there were not many amendments; we all brought 
amendments and testified before the Committee on Rules, but I do want 
to say that this is an addition that is important.
  Having just returned from the border, one of the key elements of 
providing good security is good intelligence; and particularly on the 
border and with our Border Patrol agents and our border security 
resources on the border, information-sharing has been extremely 
difficult. It is clear that the 9/11 Commission again talked about 
breaking down stovepipes. This is a good direction for breaking down 
those stovepipes and suggesting that ensuring safety at the borders 
keeps the homeland safe.
  I am hoping, however, that we can also reflect upon the importance of 
a National Intelligence Director that has budgetary authority.
  Mr. Chairman, I support this amendment for the information-sharing 
that it creates.
  Mr. SOUDER. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, first I want to thank the gentleman from California 
(Chairman Cox), the distinguished ranking member, the gentleman from 
Texas (Mr. Turner), and the gentlewoman from Texas (Ms. Jackson-Lee) 
who has been helpful, and a number of other members. Also, the 
Committee on Transportation and Infrastructure, as well as the 
Committee on the Judiciary and the Committee on Government Reform, 
those four committees came together to make this amendment possible.
  We see cooperation in the narcotics area of the subcommittee I chair. 
We have had increasing drug busts, we have had some progress, but it is 
not fast enough. If we are not careful here, instead of collecting 
intelligence, all we are going to be doing is having people going to 
meetings and talking to each other. We have to have a better ability of 
our computers to talk, a more organized structure, because we cannot 
afford to make errors.
  We understand, and this House is recognizing, the fact that these 
agencies that have been put together under Homeland Security have 
multiple missions. There are narcotics missions, there are search and 
rescue under the Coast Guard, there are fisheries missions, there are 
immigration missions within these Departments, and there are going to 
be some stovepipes; but they all have valuable information, and we need 
to get this better coordinated so we can be more effective and safer as 
a Nation.
  I hope everyone will support this amendment. I do not see any reason 
why anybody would not. I appreciate the support on the minority side as 
well as the majority side.
  Mr. Chairman, I yield back the balance of my time.
  Mr. TURNER of Texas. Mr. Chairman, I yield myself the remaining time.
  Again, I thank the gentleman from Indiana for bringing the amendment 
forward. As I said, it is something that should have been done under 
the law we passed 2 years ago when we passed the Homeland Security Act.
  To show my colleagues how bad it is, the minority members of our 
Select Committee on Homeland Security did a 6-month investigation on 
the southern border and issued this report just last month: 
``Transforming The Southern Border.'' One of the many facts that was 
laid out and discovered as we did this report is that today, a border 
inspector watching people come across our border has to search eight 
different databases to find out whether they have a suspected terrorist 
before them.
  So I support the Souder amendment.
  The CHAIRMAN pro tempore (Mr. Nethercutt). All time has expired.
  The question is on the amendment offered by the gentleman from 
Indiana (Mr. Souder).

[[Page H8850]]

  The question was taken; and the Chairman pro tempore announced that 
the ayes appeared to have it.
  Mr. HOEKSTRA. Mr. Chairman, I demand a recorded vote, and pending 
that, I make the point of order that a quorum is not present.
  The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Indiana (Mr. 
Souder) will be postponed.
  The point of no quorum is considered withdrawn.


        Sequential Votes Postponed in the Committee of the Whole

  The CHAIRMAN pro tempore. Pursuant to clause 6 of rule XVIII, 
proceedings will now resume on those amendments on which further 
proceedings were postponed in the following order: amendment in the 
nature of a substitute offered by Mr. Menendez of New Jersey; amendment 
offered by Mr. Souder of Indiana.
  The Chair will reduce to 5 minutes the time for the second vote.


 Amendment No. 1 in the Nature of a Substitute Offered by Mr. Menendez

  The CHAIRMAN pro tempore. The pending business is the demand for a 
recorded vote on the amendment in the nature of a substitute offered by 
the gentleman from New Jersey (Mr. Menendez) on which further 
proceedings were postponed and on which the noes prevailed by voice 
vote.
  The Clerk will redesignate the amendment in the nature of a 
substitute.
  The Clerk redesignated the amendment in the nature of a substitute.


                             Recorded Vote

  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 203, 
noes 213, not voting 17, as follows:

                             [Roll No. 510]

                               AYES--203

     Abercrombie
     Ackerman
     Allen
     Andrews
     Baca
     Baird
     Baldwin
     Becerra
     Bell
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Case
     Castle
     Chandler
     Clay
     Clyburn
     Conyers
     Cooper
     Costello
     Cramer
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dicks
     Dingell
     Doggett
     Dooley (CA)
     Doyle
     Edwards
     Emanuel
     Engel
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Ferguson
     Ford
     Fossella
     Frank (MA)
     Frost
     Gonzalez
     Gordon
     Green (TX)
     Grijalva
     Gutierrez
     Harman
     Hastings (FL)
     Herseth
     Hill
     Hinchey
     Hinojosa
     Hoeffel
     Holden
     Holt
     Honda
     Hooley (OR)
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson (IL)
     Johnson, E. B.
     Jones (OH)
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     Kleczka
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Leach
     Lee
     Levin
     Lewis (GA)
     Lofgren
     Lowey
     Lucas (KY)
     Lynch
     Maloney
     Markey
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore
     Moran (VA)
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Pomeroy
     Price (NC)
     Quinn
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Shays
     Sherman
     Simmons
     Skelton
     Smith (WA)
     Snyder
     Solis
     Spratt
     Stenholm
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson (CA)
     Thompson (MS)
     Tierney
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                               NOES--213

     Aderholt
     Akin
     Alexander
     Bachus
     Ballenger
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Biggert
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Bradley (NH)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Carter
     Chabot
     Chocola
     Coble
     Cole
     Collins
     Cox
     Crane
     Crenshaw
     Cubin
     Culberson
     Cunningham
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeLay
     DeMint
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Emerson
     English
     Everett
     Feeney
     Flake
     Foley
     Forbes
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Goode
     Goodlatte
     Granger
     Graves
     Green (WI)
     Greenwood
     Gutknecht
     Hall
     Harris
     Hart
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hostettler
     Hulshof
     Hunter
     Hyde
     Isakson
     Issa
     Istook
     Jenkins
     Johnson (CT)
     Johnson, Sam
     Jones (NC)
     Keller
     Kelly
     Kennedy (MN)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     LaHood
     Latham
     LaTourette
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas (OK)
     Manzullo
     Marshall
     McCotter
     McCrery
     McHugh
     McInnis
     McKeon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy
     Musgrave
     Myrick
     Nethercutt
     Neugebauer
     Ney
     Northup
     Nunes
     Nussle
     Osborne
     Ose
     Otter
     Oxley
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Porter
     Portman
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Royce
     Ryan (WI)
     Ryun (KS)
     Saxton
     Schrock
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Sherwood
     Shimkus
     Shuster
     Simpson
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Sweeney
     Tancredo
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Tiahrt
     Tiberi
     Toomey
     Turner (OH)
     Upton
     Vitter
     Walden (OR)
     Walsh
     Wamp
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--17

     Baker
     Boehlert
     Filner
     Gephardt
     Houghton
     Lipinski
     Majette
     Millender-McDonald
     Murtha
     Norwood
     Ortiz
     Paul
     Ros-Lehtinen
     Slaughter
     Stark
     Tauzin
     Towns

                              {time}  0001

  Messrs. BURTON of Indiana, DREIER and THOMAS changed their vote from 
``aye'' to ``no.''
  Mr. KANJORSKI changed his vote from ``no'' to ``aye.''
  So the amendment in the nature of a substitute was rejected.
  The result of the vote was announced as above recorded.


                 Amendment No. 3 Offered by Mr. Souder

  The CHAIRMAN. The pending business is the demand for a recorded vote 
on the amendment offered by the gentleman from Indiana (Mr. Souder) on 
which further proceedings were postponed and on which the ayes 
prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was ordered.
  The CHAIRMAN pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 410, 
noes 0, not voting 22, as follows:

                             [Roll No. 511]

                               AYES--410

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Alexander
     Allen
     Andrews
     Baca
     Bachus
     Baird
     Baldwin
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Becerra
     Bell
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boswell
     Boucher
     Boyd
     Bradley (NH)
     Brady (PA)
     Brady (TX)
     Brown (OH)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Butterfield
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Carter
     Case
     Castle
     Chabot
     Chandler
     Chocola
     Clay
     Clyburn
     Coble
     Cole
     Conyers
     Cooper
     Costello
     Cox
     Cramer
     Crane
     Crenshaw
     Crowley
     Cubin
     Culberson
     Cummings
     Cunningham
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis (TN)
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks

[[Page H8851]]


     Dingell
     Doggett
     Dooley (CA)
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Emanuel
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Feeney
     Ferguson
     Flake
     Foley
     Forbes
     Ford
     Fossella
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Frost
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Grijalva
     Gutierrez
     Gutknecht
     Hall
     Harman
     Harris
     Hart
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Herseth
     Hill
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley (OR)
     Hostettler
     Hoyer
     Hulshof
     Hunter
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     Kucinich
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Lynch
     Maloney
     Manzullo
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCotter
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Murphy
     Musgrave
     Myrick
     Nadler
     Napolitano
     Neal (MA)
     Nethercutt
     Neugebauer
     Ney
     Northup
     Nunes
     Nussle
     Oberstar
     Obey
     Olver
     Osborne
     Ose
     Otter
     Owens
     Oxley
     Pallone
     Pascrell
     Pastor
     Payne
     Pearce
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Porter
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Renzi
     Reyes
     Reynolds
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ross
     Rothman
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Saxton
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Skelton
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Spratt
     Stearns
     Stenholm
     Strickland
     Stupak
     Sullivan
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Toomey
     Turner (OH)
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Vitter
     Walden (OR)
     Walsh
     Wamp
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                             NOT VOTING--22

     Baker
     Ballenger
     Boehlert
     Collins
     Filner
     Gephardt
     Houghton
     Kleczka
     Lipinski
     Majette
     Millender-McDonald
     Murtha
     Norwood
     Ortiz
     Paul
     Ros-Lehtinen
     Schrock
     Slaughter
     Smith (MI)
     Stark
     Tauzin
     Towns

                              {time}  0010

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  Mr. SESSIONS. Mr. Chairman, I move that the Committee do now rise.
  The motion was agreed to.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Gerlach) having assumed the chair, Mr. Nethercutt, Chairman pro tempore 
of the Committee of the Whole House on the State of the Union, reported 
that that Committee, having had under consideration the bill (H.R. 10) 
to provide for reform of the intelligence community, terrorism 
prevention and prosecution, border security, and international 
cooperation and coordination, and for other purposes, had come to no 
resolution thereon.

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