[Congressional Record Volume 150, Number 138 (Tuesday, December 7, 2004)]
[House]
[Pages H10930-H10993]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    CONFERENCE REPORT ON S. 2845, INTELLIGENCE REFORM AND TERRORISM 
                         PREVENTION ACT OF 2004

  Mr. Hoekstra submitted the following conference report and statement 
on the Senate bill (S. 2845) to reform the intelligence community and 
the intelligence and intelligence-related activities of the United 
States Government, and for other purposes:

                  Conference Report (H. Rept. 108-796)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     2845), to reform the intelligence community and the 
     intelligence and intelligence-related activities of the 
     United States Government, and for other purposes, having met, 
     after full and free conference, have agreed to recommend and 
     do recommend to their respective Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Intelligence Reform and Terrorism Prevention Act of 2004''.
       (b) 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 Director of National Intelligence

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 Director of National Intelligence in appointment of 
              certain officials responsible for intelligence-related 
              activities.
Sec. 1015. Executive Schedule matters.
Sec. 1016. Information sharing.
Sec. 1017. Alternative analysis of intelligence by the intelligence 
              community.
Sec. 1018. Presidential guidelines on implementation and preservation 
              of authorities.
Sec. 1019. Assignment of responsibilities relating to analytic 
              integrity.
Sec. 1020. Safeguard of objectivity in intelligence analysis.

    Subtitle B--National Counterterrorism Center, National Counter 
        Proliferation Center, and National Intelligence Centers

Sec. 1021. National Counterterrorism Center.
Sec. 1022. National Counter Proliferation Center.
Sec. 1023. National intelligence centers.

            Subtitle C--Joint Intelligence Community Council

Sec. 1031. Joint Intelligence Community Council.

  Subtitle D--Improvement of Education for the Intelligence Community

Sec. 1041. Additional education and training requirements.
Sec. 1042. Cross-disciplinary education and training.
Sec. 1043. Intelligence Community Scholarship Program.

     Subtitle E--Additional Improvements of Intelligence Activities

Sec. 1051. Service and national laboratories and the intelligence 
              community.
Sec. 1052. Open-source intelligence.
Sec. 1053. National Intelligence Reserve Corps.

                Subtitle F--Privacy and Civil Liberties

Sec. 1061. Privacy and Civil Liberties Oversight Board.
Sec. 1062. Sense of Congress on designation of privacy and civil 
              liberties officers.

              Subtitle G--Conforming and Other Amendments

Sec. 1071. Conforming amendments relating to roles of Director of 
              National Intelligence and Director of the Central 
              Intelligence Agency.
Sec. 1072. Other conforming amendments
Sec. 1073. Elements of intelligence community under National Security 
              Act of 1947.
Sec. 1074. Redesignation of National Foreign Intelligence Program as 
              National Intelligence Program.
Sec. 1075. Repeal of superseded authority.
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. Authority to establish inspector general for the Office of 
              the Director of National Intelligence.
Sec. 1079. Ethics matters.
Sec. 1080. Construction of authority of Director of National 
              Intelligence to acquire and manage property and services.
Sec. 1081. General references.

  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. Director of National Intelligence report on implementation 
              of intelligence community reform.
Sec. 1096. Transitional authorities.
Sec. 1097. Effective dates.

[[Page H10931]]

                       Subtitle I--Other Matters

Sec. 1101. Study of promotion and professional military education 
              school selection rates for military intelligence 
              officers.
Sec. 1102. Extension and improvement of authorities of Public Interest 
              Declassification Board.
Sec. 1103. Severability.

               TITLE II--FEDERAL BUREAU OF INVESTIGATION

Sec. 2001. Improvement of intelligence capabilities of the Federal 
              Bureau of Investigation.
Sec. 2002. Directorate of Intelligence of the Federal Bureau of 
              Investigation.
Sec. 2003. Federal Bureau of Investigation intelligence career service.
Sec. 2004. Federal Bureau of Investigation Reserve Service.
Sec. 2005. Federal Bureau of Investigation mandatory separation age.
Sec. 2006. Federal Bureau of Investigation use of translators.

                     TITLE III--SECURITY CLEARANCES

Sec. 3001. Security clearances.

                   TITLE IV--TRANSPORTATION SECURITY

       Subtitle A--National Strategy for Transportation Security

Sec. 4001. National Strategy for Transportation Security.

                     Subtitle B--Aviation Security

Sec. 4011. Provision for the use of biometric or other technology.
Sec. 4012. Advanced airline passenger prescreening.
Sec. 4013. Deployment and use of detection equipment at airport 
              screening checkpoints.
Sec. 4014. Advanced airport checkpoint screening devices.
Sec. 4015. Improvement of screener job performance.
Sec. 4016. Federal air marshals.
Sec. 4017. International agreements to allow maximum deployment of 
              Federal air marshals.
Sec. 4018. Foreign air marshal training.
Sec. 4019. In-line checked baggage screening.
Sec. 4020. Checked baggage screening area monitoring.
Sec. 4021. Wireless communication.
Sec. 4022. Improved pilot licenses.
Sec. 4023. Aviation security staffing.
Sec. 4024. Improved explosive detection systems.
Sec. 4025. Prohibited items list.
Sec. 4026. Man-Portable Air Defense Systems (MANPADs).
Sec. 4027. Technical corrections.
Sec. 4028. Report on secondary flight deck barriers.
Sec. 4029. Extension of authorization of aviation security funding.

                     Subtitle C--Air Cargo Security

Sec. 4051. Pilot program to evaluate use of blast resistant cargo and 
              baggage containers.
Sec. 4052. Air cargo security.
Sec. 4053. Air cargo security regulations.
Sec. 4054. Report on international air cargo threats.

                     Subtitle D--Maritime Security

Sec. 4071. Watch lists for passengers aboard vessels.
Sec. 4072. Deadlines for completion of certain plans, reports, and 
              assessments.

                     Subtitle E--General Provisions

Sec. 4081. Definitions.
Sec. 4082. Effective date.

       TITLE V--BORDER PROTECTION, IMMIGRATION, AND VISA MATTERS

 Subtitle A--Advanced Technology Northern Border Security Pilot Program

Sec. 5101. Establishment.
Sec. 5102. Program requirements.
Sec. 5103. Administrative provisions.
Sec. 5104. Report.
Sec. 5105. Authorization of appropriations.

             Subtitle B--Border and Immigration Enforcement

Sec. 5201. Border surveillance.
Sec. 5202. Increase in full-time Border Patrol agents.
Sec. 5203. Increase in full-time immigration and customs enforcement 
              investigators.
Sec. 5204. Increase in detention bed space.

                     Subtitle C--Visa Requirements

Sec. 5301. In person interviews of visa applicants.
Sec. 5302. Visa application requirements.
Sec. 5303. Effective date.
Sec. 5304. Revocation of visas and other travel documentation.

                     Subtitle D--Immigration Reform

Sec. 5401. Bringing in and harboring certain aliens.
Sec. 5402. Deportation of aliens who have received military-type 
              training from terrorist organizations.
Sec. 5403. Study and report on terrorists in the asylum system.

      Subtitle E--Treatment of Aliens Who Commit Acts of Torture, 
           Extrajudicial Killings, or Other Atrocities Abroad

Sec. 5501. Inadmissibility and deportability of aliens who have 
              committed acts of torture or extrajudicial killings 
              abroad.
Sec. 5502. Inadmissibility and deportability of foreign government 
              officials who have committed particularly severe 
              violations of religious freedom.
Sec. 5503. Waiver of inadmissibility.
Sec. 5504. Bar to good moral character for aliens who have committed 
              acts of torture, extrajudicial killings, or severe 
              violations of religious freedom.
Sec. 5505. Establishment of the Office of Special Investigations.
Sec. 5506. Report on implementation.

                     TITLE VI--TERRORISM PREVENTION

     Subtitle A--Individual Terrorists as Agents of Foreign Powers

Sec. 6001. Individual terrorists as agents of foreign powers.
Sec. 6002. Additional semiannual reporting requirements under the 
              Foreign Intelligence Surveillance Act of 1978.

          Subtitle B--Money Laundering and Terrorist Financing

Sec. 6101. Additional authorization for finCEN.
Sec. 6102. Money laundering and financial crimes strategy 
              reauthorization.

  Subtitle C--Money Laundering Abatement and Financial Antiterrorism 
                         Technical Corrections

Sec. 6201. Short title.
Sec. 6202. Technical corrections to Public Law 107-56.
Sec. 6203. Technical corrections to other provisions of law.
Sec. 6204. Repeal of review.
Sec. 6205. Effective date.

                Subtitle D--Additional Enforcement Tools

Sec. 6301. Bureau of Engraving and Printing security printing.
Sec. 6302. Reporting of certain cross-border transmittal of funds.
Sec. 6303. Terrorism financing.

             Subtitle E--Criminal History Background Checks

Sec. 6401. Protect Act.
Sec. 6402. Reviews of criminal records of applicants for private 
              security officer employment.
Sec. 6403. Criminal history background checks.

               Subtitle F--Grand Jury Information Sharing

Sec. 6501. Grand jury information sharing.

          Subtitle G--Providing Material Support to Terrorism

Sec. 6601. Short title.
Sec. 6602. Receiving military-type training from a foreign terrorist 
              organization.
Sec. 6603. Additions to offense of providing material support to 
              terrorism.
Sec. 6604. Financing of terrorism.

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

Sec. 6701. Short title.
Sec. 6702. Hoaxes and recovery costs.
Sec. 6703. Obstruction of justice and false statements in terrorism 
              cases.
Sec. 6704. Clarification of definition.

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

Sec. 6801. Short title.
Sec. 6802. Weapons of mass destruction.
Sec. 6803. Participation in nuclear and weapons of mass destruction 
              threats to the United States.

 Subtitle J--Prevention of Terrorist Access to Destructive Weapons Act 
                                of 2004

Sec. 6901. Short title.
Sec. 6902. Findings and purpose.
Sec. 6903. Missile systems designed to destroy aircraft.
Sec. 6904. Atomic weapons.
Sec. 6905. Radiological dispersal devices.
Sec. 6906. Variola virus.
Sec. 6907. Interception of communications.
Sec. 6908. Amendments to section 2332b(g)(5)(b) of title 18, United 
              States Code.
Sec. 6909. Amendments to section 1956(c)(7)(d) of title 18, United 
              States Code.
Sec. 6910. Export licensing process.
Sec. 6911. Clerical amendments.

              Subtitle K--Pretrial Detention of Terrorists

Sec. 6951. Short title.
Sec. 6952. Presumption for pretrial detention in cases involving 
              terrorism.

      TITLE VII--IMPLEMENTATION OF 9/11 COMMISSION RECOMMENDATIONS

Sec. 7001. Short title.

  Subtitle A--Diplomacy, Foreign Aid, and the Military in the War on 
                               Terrorism

Sec. 7101. Findings.
Sec. 7102. Terrorist sanctuaries.
Sec. 7103. United States commitment to the future of Pakistan.
Sec. 7104. Assistance for Afghanistan.
Sec. 7105. The relationship between the United States and Saudi Arabia.
Sec. 7106. Efforts to combat Islamist terrorism.
Sec. 7107. United States policy toward dictatorships.
Sec. 7108. Promotion of free media and other American values.
Sec. 7109. Public diplomacy responsibilities of the Department of 
              State.
Sec. 7110. Public diplomacy training.
Sec. 7111. Promoting democracy and human rights at international 
              organizations.
Sec. 7112. Expansion of United States scholarship and exchange programs 
              in the Islamic world.
Sec. 7112. Pilot program to provide grants to American-sponsored 
              schools in predominantly Muslim countries to provide 
              scholarships.
Sec. 7113. International Youth Opportunity Fund.
Sec. 7114. The use of economic policies to combat terrorism.
Sec. 7115. Middle East partnership initiative.
Sec. 7116. Comprehensive coalition strategy for fighting terrorism.
Sec. 7117. Financing of terrorism.
Sec. 7118. Designation of foreign terrorist organizations.

[[Page H10932]]

Sec. 7119. Report to Congress.
Sec. 7120. Case-Zablocki Act requirements.
Sec. 7121. Effective date.

          Subtitle B--Terrorist Travel and Effective Screening

Sec. 7201. Counterterrorist travel intelligence.
Sec. 7202. Establishment of human smuggling and trafficking center.
Sec. 7203. Responsibilities and functions of consular officers.
Sec. 7204. International agreements to track and curtail terrorist 
              travel through the use of fraudulently obtained 
              documents.
Sec. 7205. International standards for transliteration of names into 
              the Roman alphabet for international travel documents and 
              name-based watchlist systems.
Sec. 7206. Immigration security initiative.
Sec. 7207. Certification regarding technology for visa waiver 
              participants.
Sec. 7208. Biometric entry and exit data system.
Sec. 7209. Travel documents.
Sec. 7210. Exchange of terrorist information and increased 
              preinspection at foreign airports.
Sec. 7211. Minimum standards for birth certificates.
Sec. 7212. Driver's licenses and personal identification cards.
Sec. 7213. Social security cards and numbers.
Sec. 7214. Prohibition of the display of social security account 
              numbers on driver's licenses or motor vehicle 
              registrations.
Sec. 7215. Terrorist travel program.
Sec. 7216. Increase in penalties for fraud and related activity.
Sec. 7217. Study on allegedly lost or stolen passports.
Sec. 7218. Establishment of visa and passport security program in the 
              Department of State.
Sec. 7219. Effective date.
Sec. 7220. Identification standards.

                   Subtitle C--National Preparedness

Sec. 7301. The incident command system.
Sec. 7302. National capital region mutual aid.
Sec. 7303. Enhancement of public safety communications 
              interoperability.
Sec. 7304. Regional model strategic plan pilot projects.
Sec. 7305. Private sector preparedness.
Sec. 7306. Critical infrastructure and readiness assessments.
Sec. 7307. Northern command and defense of the United States homeland.
Sec. 7308. Effective date.

                     Subtitle D--Homeland Security

Sec. 7401. Sense of Congress on first responder funding.
Sec. 7402. Coordination of industry efforts.
Sec. 7403. Study regarding nationwide emergency notification system.
Sec. 7404. Pilot study to move warning systems into the modern digital 
              age.
Sec. 7405. Required coordination.
Sec. 7406. Emergency preparedness compacts.
Sec. 7407. Responsibilities of counternarcotics office.
Sec. 7408. Use of counternarcotics enforcement activities in certain 
              employee performance appraisals.

                   Subtitle E--Public Safety Spectrum

Sec. 7501. Digital television conversion deadline.
Sec. 7502. Studies on telecommunications capabilities and requirements.

                  Subtitle F--Presidential Transition

Sec. 7601. Presidential transition.

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

Sec. 7701. Improving international standards and cooperation to fight 
              terrorist financing.
Sec. 7702. Definitions.
Sec. 7703. Expanded reporting and testimony requirements for the 
              Secretary of the Treasury.
Sec. 7704. Coordination of United States Government efforts.

              Subtitle H--Emergency Financial Preparedness

Sec. 7801. Delegation authority of the Secretary of the Treasury.
Sec. 7802. Treasury support for financial services industry 
              preparedness and response and consumer education.
Sec. 7803. Emergency Securities Response Act of 2004.
Sec. 7804. Private sector preparedness.

                       TITLE VIII--OTHER MATTERS

                    Subtitle A--Intelligence Matters

Sec. 8101. Intelligence community use of National Infrastructure 
              Simulation and Analysis Center.

          Subtitle B--Department of Homeland Security Matters

Sec. 8201. Homeland security geospatial information.

    Subtitle C--Homeland Security Civil Rights and Civil Liberties 
                               Protection

Sec. 8301. Short title.
Sec. 8302. Mission of Department of Homeland Security.
Sec. 8303. Officer for Civil Rights and Civil Liberties.
Sec. 8304. Protection of civil rights and civil liberties by Office of 
              Inspector General.
Sec. 8305. Privacy officer.
Sec. 8306. Protections for human research subjects of the Department of 
              Homeland Security.

                       Subtitle D--Other Matters

Sec. 8401. Amendments to Clinger-Cohen Act provisions to enhance agency 
              planning for information security needs.
Sec. 8402. Enterprise architecture.
Sec. 8403. Financial disclosure and records.
Sec. 8404. Extension of requirement for air carriers to honor tickets 
              for suspended air passenger service.
             TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``National Security 
     Intelligence Reform Act of 2004''.
     Subtitle A--Establishment of Director of National Intelligence

     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:


                  ``director of national intelligence

       ``Sec. 102. (a) Director of National Intelligence.--(1) 
     There is a Director of National Intelligence who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate. Any individual nominated for 
     appointment as Director of National Intelligence shall have 
     extensive national security expertise.
       ``(2) The Director of National Intelligence 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 Director of 
     National Intelligence 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) consistent with section 1018 of the National Security 
     Intelligence Reform Act of 2004, oversee and direct the 
     implementation of the National Intelligence Program.
       ``(c) Prohibition on Dual Service.--The individual serving 
     in the position of Director of National Intelligence 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 director of national 
                              intelligence

       ``Sec. 102A. (a) Provision of Intelligence.--(1) The 
     Director of National Intelligence 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) to the Senate and House of Representatives and the 
     committees thereof; and
       ``(E) to such other persons as the Director of National 
     Intelligence 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.--Unless otherwise directed by 
     the President, the Director of National Intelligence 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 
     Director of National Intelligence.
       ``(c) Budget Authorities.--(1) With respect to budget 
     requests and appropriations for the National Intelligence 
     Program, the Director of National Intelligence shall--
       ``(A) based on intelligence priorities set by the 
     President, provide to the heads of departments containing 
     agencies or organizations within the intelligence community, 
     and to the heads of such agencies and organizations, guidance 
     for developing the National Intelligence Program budget 
     pertaining to such agencies and organizations;
       ``(B) based on budget proposals provided to the Director of 
     National Intelligence by the heads of agencies and 
     organizations within the intelligence community and the heads 
     of their respective departments and, as appropriate, after 
     obtaining the advice of the Joint Intelligence Community 
     Council, develop and determine an annual consolidated 
     National Intelligence Program budget; and
       ``(C) present such consolidated National Intelligence 
     Program budget, together with any comments from the heads of 
     departments containing agencies or organizations within the 
     intelligence community, to the President for approval.
       ``(2) In addition to the information provided under 
     paragraph (1)(B), the heads of agencies and organizations 
     within the intelligence community shall provide the Director 
     of National Intelligence such other information as the 
     Director shall request for the purpose of determining the 
     annual consolidated National Intelligence Program budget 
     under that paragraph.
       ``(3)(A) The Director of National Intelligence 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 Director of National Intelligence 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.
       ``(4) The Director of National Intelligence shall ensure 
     the effective execution of the annual budget for intelligence 
     and intelligence-related activities.

[[Page H10933]]

       ``(5)(A) The Director of National Intelligence shall be 
     responsible for managing appropriations for the National 
     Intelligence Program by directing the allotment or allocation 
     of such appropriations through the heads of the departments 
     containing agencies or organizations within the intelligence 
     community and the Director of the Central Intelligence 
     Agency, with prior notice (including the provision of 
     appropriate supporting information) to the head of the 
     department containing an agency or organization receiving any 
     such allocation or allotment or the Director of the Central 
     Intelligence Agency.
       ``(B) Notwithstanding any other provision of law, pursuant 
     to relevant appropriations Acts for the National Intelligence 
     Program, the Director of the Office of Management and Budget 
     shall exercise the authority of the Director of the Office of 
     Management and Budget to apportion funds, at the exclusive 
     direction of the Director of National Intelligence, for 
     allocation to the elements of the intelligence community 
     through the relevant host executive departments and the 
     Central Intelligence Agency. Department comptrollers or 
     appropriate budget execution officers shall allot, allocate, 
     reprogram, or transfer funds appropriated for the National 
     Intelligence Program in an expeditious manner.
       ``(C) The Director of National Intelligence 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.
       ``(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 Director of National Intelligence shall 
     provide a semi-annual report, beginning April 1, 2005, and 
     ending April 1, 2007, to the President and the Congress 
     regarding implementation of this section.
       ``(B) The Director of National Intelligence shall report to 
     the President and the Congress not later than 15 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 Director of National 
     Intelligence, in carrying out the National Intelligence 
     Program.
       ``(d) Role of Director of National Intelligence in Transfer 
     and Reprogramming of Funds.--(1)(A) No funds made available 
     under the National Intelligence Program may be transferred or 
     reprogrammed without the prior approval of the Director of 
     National Intelligence, except in accordance with procedures 
     prescribed by the Director of National Intelligence.
       ``(B) The Secretary of Defense shall consult with the 
     Director of National Intelligence before transferring or 
     reprogramming funds made available under the Joint Military 
     Intelligence Program.
       ``(2) Subject to the succeeding provisions of this 
     subsection, the Director of National Intelligence may 
     transfer or reprogram funds appropriated for a program within 
     the National Intelligence Program to another such program.
       ``(3) The Director of National Intelligence may only 
     transfer or reprogram funds referred to in subparagraph (A)--
       ``(A) with the approval of the Director of the Office of 
     Management and Budget; and
       ``(B) after consultation with the heads of departments 
     containing agencies or organizations within the intelligence 
     community to the extent such agencies or organizations are 
     affected, and, in the case of the Central Intelligence 
     Agency, after consultation with the Director of the Central 
     Intelligence Agency.
       ``(4) The amounts available for transfer or reprogramming 
     in the National Intelligence Program in any given fiscal 
     year, and the terms and conditions governing such transfers 
     and reprogrammings, are subject to the provisions of annual 
     appropriations Acts and this subsection.
       ``(5)(A) A transfer or reprogramming of funds or personnel 
     may be made under this subsection only if--
       ``(i) the funds are being transferred to an activity that 
     is a higher priority intelligence activity;
       ``(ii) the transfer or reprogramming supports an emergent 
     need, improves program effectiveness, or increases 
     efficiency;
       ``(iii) the transfer or reprogramming does not involve a 
     transfer or reprogramming of funds to a Reserve for 
     Contingencies of the Director of National Intelligence or the 
     Reserve for Contingencies of the Central Intelligence Agency;
       ``(iv) the transfer or reprogramming results in a 
     cumulative transfer or reprogramming 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 $150,000,000, 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 or reprogramming does not terminate an 
     acquisition program.
       ``(B) A transfer or reprogramming may be made without 
     regard to a limitation set forth in clause (iv) or (v) of 
     subparagraph (A) if the transfer has the concurrence of the 
     head of the department involved or the Director of the 
     Central Intelligence Agency (in the case of the Central 
     Intelligence Agency). 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.
       ``(6) Funds transferred or reprogrammed under this 
     subsection shall remain available for the same period as the 
     appropriations account to which transferred or reprogrammed.
       ``(7) Any transfer or reprogramming 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 
     or reprogramming for which notice is given to the appropriate 
     congressional committees shall be accompanied by a report 
     explaining the nature of the proposed transfer or 
     reprogramming and how it satisfies the requirements of this 
     subsection. In addition, the congressional intelligence 
     committees shall be promptly notified of any transfer or 
     reprogramming of funds made pursuant to this subsection in 
     any case in which the transfer or reprogramming would not 
     have otherwise required reprogramming notification under 
     procedures in effect as of the date of the enactment of this 
     subsection.
       ``(e) Transfer of Personnel.--(1)(A) In addition to any 
     other authorities available under law for such purposes, in 
     the first twelve months after establishment of a new national 
     intelligence center, the Director of National Intelligence, 
     with the approval of the Director of the Office of Management 
     and Budget and in consultation with the congressional 
     committees of jurisdiction referred to in subparagraph (B), 
     may transfer not more than 100 personnel authorized for 
     elements of the intelligence community to such center.
       ``(B) The Director of National Intelligence shall promptly 
     provide notice of any transfer of personnel made pursuant to 
     this paragraph to--
       ``(i) the congressional intelligence committees;
       ``(ii) the Committees on Appropriations of the Senate and 
     the House of Representatives;
       ``(iii) in the case of the transfer of personnel to or from 
     the Department of Defense, the Committees on Armed Services 
     of the Senate and the House of Representatives; and
       ``(iv) 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.
       ``(C) The Director shall include in any notice under 
     subparagraph (B) an explanation of the nature of the transfer 
     and how it satisfies the requirements of this subsection.
       ``(2)(A) The Director of National Intelligence, with the 
     approval of the Director of the Office of Management and 
     Budget and in accordance with procedures to be developed by 
     the Director of National Intelligence 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 a period of not more than 2 years.
       ``(B) A transfer of personnel may be made under this 
     paragraph only if--
       ``(i) the personnel are being transferred to an activity 
     that is a higher priority intelligence activity; and
       ``(ii) the transfer supports an emergent need, improves 
     program effectiveness, or increases efficiency.
       ``(C) The Director of National Intelligence shall promptly 
     provide notice of any transfer of personnel made pursuant to 
     this paragraph to--
       ``(i) the congressional intelligence committees;
       ``(ii) in the case of the transfer of personnel to or from 
     the Department of Defense, the Committees on Armed Services 
     of the Senate and 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.
       ``(D) The Director shall include in any notice under 
     subparagraph (C) an explanation of the nature of the transfer 
     and how it satisfies the requirements of this paragraph.
       ``(3) It is the sense of Congress that--
       ``(A) the nature of the national security threats facing 
     the United States will continue to challenge the intelligence 
     community to respond rapidly and flexibly to bring analytic 
     resources to bear against emerging and unforeseen 
     requirements;
       ``(B) both the Office of the Director of National 
     Intelligence and any analytic centers determined to be 
     necessary should be fully and properly supported with 
     appropriate levels of personnel resources and that the 
     President's yearly budget requests adequately support those 
     needs; and
       ``(C) the President should utilize all legal and 
     administrative discretion to ensure that the Director of 
     National Intelligence and all other elements of the 
     intelligence community have the necessary resources and 
     procedures to respond promptly and effectively to emerging 
     and unforeseen national security challenges.
       ``(f) Tasking and Other Authorities.--(1)(A) The Director 
     of National Intelligence shall--
       ``(i) establish 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 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 (including those requirements 
     responding to needs provided by consumers) 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 Director of National 
     Intelligence 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

[[Page H10934]]

     exercises tasking authority under plans or arrangements 
     agreed upon by the Secretary of Defense and the Director of 
     National Intelligence; 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 Director of National Intelligence shall oversee 
     the National Counterterrorism Center and may establish such 
     other national intelligence centers as the Director 
     determines necessary.
       ``(3)(A) The Director of National Intelligence shall 
     prescribe, 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--
       ``(i) encourage and facilitate assignments and details of 
     personnel to national intelligence centers, and between 
     elements of the intelligence community;
       ``(ii) set standards for education, training, and career 
     development of personnel of the intelligence community;
       ``(iii) encourage and facilitate the recruitment and 
     retention by the intelligence community of highly qualified 
     individuals for the effective conduct of intelligence 
     activities;
       ``(iv) ensure that the personnel of the intelligence 
     community are 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;
       ``(v) 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; and
       ``(vi) ensure the effective management of intelligence 
     community personnel who are responsible for intelligence 
     community-wide matters.
       ``(B) Policies prescribed under subparagraph (A) shall not 
     be inconsistent with the personnel policies otherwise 
     applicable to members of the uniformed services.
       ``(4) The Director of National Intelligence 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 Director of National Intelligence shall ensure 
     the elimination of waste and unnecessary duplication within 
     the intelligence community.
       ``(6) The Director of National Intelligence shall 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 national intelligence 
     purposes, except that the Director shall have no authority to 
     direct or undertake electronic surveillance or physical 
     search operations pursuant to that Act unless authorized by 
     statute or Executive order.
       ``(7) The Director of National Intelligence shall perform 
     such other functions as the President may direct.
       ``(8) Nothing in this title shall be construed as affecting 
     the role of the Department of Justice or the Attorney General 
     under the Foreign Intelligence Surveillance Act of 1978.
       ``(g) Intelligence Information Sharing.--(1) The Director 
     of National Intelligence shall have principal authority to 
     ensure maximum availability of and access to intelligence 
     information within the intelligence community consistent with 
     national security requirements. The Director of National 
     Intelligence 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;
       ``(D) establish policies and procedures to resolve 
     conflicts between the need to share intelligence information 
     and the need to protect intelligence sources and methods;
       ``(E) develop an enterprise architecture for the 
     intelligence community and ensure that elements of the 
     intelligence community comply with such architecture; and
       ``(F) have procurement approval authority over all 
     enterprise architecture-related information technology items 
     funded in the National Intelligence Program.
       ``(2) The President shall ensure that the Director of 
     National Intelligence 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 Director of 
     National Intelligence or the National Counterterrorism 
     Center.
       ``(4) Not later than February 1 of each year, the Director 
     of National Intelligence 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.--To ensure the most accurate analysis of 
     intelligence is derived from all sources to support national 
     security needs, the Director of National Intelligence shall--
       ``(1) implement policies and procedures--
       ``(A) to encourage sound analytic methods and tradecraft 
     throughout the elements of the intelligence community;
       ``(B) to ensure that analysis is based upon all sources 
     available; and
       ``(C) to ensure that the elements of the intelligence 
     community regularly conduct competitive analysis of analytic 
     products, whether such products are produced by or 
     disseminated to such elements;
       ``(2) ensure that resource allocation for intelligence 
     analysis is appropriately proportional to resource allocation 
     for intelligence collection systems and operations in order 
     to maximize analysis of all collected data;
       ``(3) ensure that differences in analytic judgment are 
     fully considered and brought to the attention of 
     policymakers; and
       ``(4) ensure that sufficient relationships are established 
     between intelligence collectors and analysts to facilitate 
     greater understanding of the needs of analysts.
       ``(i) Protection of Intelligence Sources and Methods.--(1) 
     The Director of National Intelligence shall protect 
     intelligence sources and methods from unauthorized 
     disclosure.
       ``(2) Consistent with paragraph (1), in order to maximize 
     the dissemination of intelligence, the Director of National 
     Intelligence shall establish and implement guidelines for the 
     intelligence community for the following purposes:
       ``(A) Classification of information under applicable law, 
     Executive orders, or other Presidential directives.
       ``(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.
       ``(3) The Director may only delegate a duty or authority 
     given the Director under this subsection to the Principal 
     Deputy Director of National Intelligence.
       ``(j) Uniform Procedures for Sensitive Compartmented 
     Information.--The Director of National Intelligence, subject 
     to the direction of the President, 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 Director of National Intelligence shall oversee 
     the coordination of the relationships between elements of the 
     intelligence community and the intelligence or security 
     services of foreign governments or international 
     organizations on all matters involving intelligence related 
     to the national security or involving intelligence acquired 
     through clandestine means.
       ``(l) Enhanced Personnel Management.--(1)(A) The Director 
     of National Intelligence 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 Director of National 
     Intelligence;
       ``(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 Director of National Intelligence 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 Director of National Intelligence 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 for

[[Page H10935]]

     service involving 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) Except as provided in subparagraph (B) and 
     subparagraph (D), this subsection shall not apply with 
     respect to personnel of the elements of the intelligence 
     community who are members of the uniformed services.
       ``(B) Mechanisms that establish requirements for education 
     and training pursuant to paragraph (3)(B)(iii) may apply with 
     respect to members of the uniformed services who are assigned 
     to an element of the intelligence community funded through 
     the National Intelligence Program, but such mechanisms shall 
     not be inconsistent with personnel policies and education and 
     training requirements otherwise applicable to members of the 
     uniformed services.
       ``(C) The personnel policies and programs developed and 
     implemented under this subsection with respect to law 
     enforcement officers (as that term is defined in section 
     5541(3) of title 5, United States Code) shall not affect the 
     ability of law enforcement entities to conduct operations or, 
     through the applicable chain of command, to control the 
     activities of such law enforcement officers.
       ``(D) Assignment to the Office of the Director of National 
     Intelligence 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 
     Director of National Intelligence may exercise with respect 
     to the personnel of the Office of the Director of National 
     Intelligence 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 Director of National Intelligence shall have the same 
     rights and protections under the Office of the Director of 
     National Intelligence 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 
     Director of National Intelligence may exercise the 
     acquisition and appropriations authorities referred to in the 
     Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
     seq.) other than the authorities referred to in section 8(b) 
     of that Act (50 U.S.C. 403j(b)).
       ``(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 Director of 
     National Intelligence or the Principal Deputy Director of 
     National Intelligence.
       ``(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 Director 
     of National Intelligence or the Principal Deputy Director of 
     National Intelligence may, in such official's discretion, 
     delegate to any officer or other official of the Office of 
     the Director of National Intelligence 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 Director 
     of National Intelligence 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 Director of 
     National Intelligence for a period of at least six years 
     following the date of such determination or decision.
       ``(o) Consideration of Views of Elements of Intelligence 
     Community.--In carrying out the duties and responsibilities 
     under this section, the Director of National Intelligence 
     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.
       ``(p) Responsibility of Director of National Intelligence 
     Regarding National Intelligence Program Budget Concerning the 
     Department of Defense.--Subject to the direction of the 
     President, the Director of National Intelligence shall, after 
     consultation with the Secretary of Defense, ensure that the 
     National Intelligence Program budgets for the elements of the 
     intelligence community that are within the Department of 
     Defense are adequate to satisfy the national intelligence 
     needs of the Department of Defense, including the needs of 
     the Chairman of the Joint Chiefs of Staff and the commanders 
     of the unified and specified commands, and wherever such 
     elements are performing Government-wide functions, the needs 
     of other Federal departments and agencies.
       ``(q) Acquisitions of Major Systems.--(1) For each 
     intelligence program within the National Intelligence Program 
     for the acquisition of a major system, the Director of 
     National Intelligence shall--
       ``(A) require the development and implementation of a 
     program management plan that includes cost, schedule, and 
     performance goals and program milestone criteria, except that 
     with respect to Department of Defense programs the Director 
     shall consult with the Secretary of Defense;
       ``(B) serve as exclusive milestone decision authority, 
     except that with respect to Department of Defense programs 
     the Director shall serve as milestone decision authority 
     jointly with the Secretary of Defense or the designee of the 
     Secretary; 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) If the Director of National Intelligence and the 
     Secretary of Defense are unable to reach an agreement on a 
     milestone decision under paragraph (1)(B), the President 
     shall resolve the conflict.
       ``(3) Nothing in this subsection may be construed to limit 
     the authority of the Director of National Intelligence to 
     delegate to any other official any authority to perform the 
     responsibilities of the Director under this subsection.
       ``(4) 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)).
       ``(r) Performance of Common Services.--The Director of 
     National Intelligence 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, 
     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 Director of 
     National Intelligence determines can be more efficiently 
     accomplished in a consolidated manner.


           ``office of the director of national intelligence

       ``Sec. 103. (a) Office of Director of National 
     Intelligence.--There is an Office of the Director of National 
     Intelligence.
       ``(b) Function.--The function of the Office of the Director 
     of National Intelligence is to assist the Director of 
     National Intelligence 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 Director of National 
     Intelligence is composed of the following:
       ``(1) The Director of National Intelligence.
       ``(2) The Principal Deputy Director of National 
     Intelligence.
       ``(3) Any Deputy Director of National Intelligence 
     appointed under section 103A.
       ``(4) The National Intelligence Council.
       ``(5) The General Counsel.
       ``(6) The Civil Liberties Protection Officer.
       ``(7) The Director of Science and Technology.
       ``(8) The National Counterintelligence Executive (including 
     the Office of the National Counterintelligence Executive).
       ``(9) Such other offices and officials as may be 
     established by law or the Director may establish or designate 
     in the Office, including national intelligence centers.
       ``(d) Staff.--(1) To assist the Director of National 
     Intelligence in fulfilling the duties and responsibilities of 
     the Director, the Director shall employ and utilize in the 
     Office of the Director of National Intelligence a 
     professional staff having an expertise in matters relating to 
     such 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 Director of National 
     Intelligence 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 
     Director of National Intelligence under section 1091 of the 
     National Security Intelligence Reform Act of 2004.
       ``(e) Limitation on Co-Location With Other Elements of 
     Intelligence Community.--Commencing as of October 1, 2008, 
     the Office of the Director of National Intelligence may not 
     be co-located with any other element of the intelligence 
     community.


              ``deputy directors of national intelligence

       ``Sec. 103A. (a) Principal Deputy Director of National 
     Intelligence.--(1) There is a Principal Deputy Director of 
     National Intelligence 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 Director of National Intelligence, the 
     Director of National Intelligence

[[Page H10936]]

     shall recommend to the President an individual for 
     appointment as Principal Deputy Director of National 
     Intelligence.
       ``(3) Any individual nominated for appointment as Principal 
     Deputy Director of National Intelligence shall have extensive 
     national security experience and management expertise.
       ``(4) The individual serving as Principal Deputy Director 
     of National Intelligence shall not, while so serving, serve 
     in any capacity in any other element of the intelligence 
     community.
       ``(5) The Principal Deputy Director of National 
     Intelligence shall assist the Director of National 
     Intelligence in carrying out the duties and responsibilities 
     of the Director.
       ``(6) The Principal Deputy Director of National 
     Intelligence shall act for, and exercise the powers of, the 
     Director of National Intelligence during the absence or 
     disability of the Director of National Intelligence or during 
     a vacancy in the position of Director of National 
     Intelligence.
       ``(b) Deputy Directors of National Intelligence.--(1) There 
     may be not more than four Deputy Directors of National 
     Intelligence who shall be appointed by the Director of 
     National Intelligence.
       ``(2) Each Deputy Director of National Intelligence 
     appointed under this subsection shall have such duties, 
     responsibilities, and authorities as the Director of National 
     Intelligence may assign or are specified by law.
       ``(c) Military Status of Director of National Intelligence 
     and Principal Deputy Director of National Intelligence.--(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 Director of National Intelligence.
       ``(B) The Principal Deputy Director of National 
     Intelligence.
       ``(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 Director of 
     National Intelligence.


                    ``national intelligence council

       ``Sec. 103B. (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 Director of National Intelligence.
       ``(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 Director of National 
     Intelligence in carrying out the responsibilities of the 
     Director under section 102A.
       ``(2) The Director of National Intelligence shall ensure 
     that the Council satisfies the needs of policymakers and 
     other consumers of intelligence.
       ``(d) Service as Senior Intelligence Advisers.--Within 
     their respective areas of expertise and under the direction 
     of the Director of National Intelligence, 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 Director of National Intelligence, 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 Director of National Intelligence 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 Director 
     of National Intelligence 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 Director of National Intelligence.
       ``(i) National Intelligence Council Product.--For purposes 
     of this section, the term `National Intelligence Council 
     product' includes a National Intelligence Estimate and any 
     other intelligence community assessment that sets forth the 
     judgment of the intelligence community as a whole on a matter 
     covered by such product.


                           ``general counsel

       ``Sec. 103C. (a) General Counsel.--There is a General 
     Counsel of the Office of the Director of National 
     Intelligence who shall be appointed 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 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 is the chief 
     legal officer of the Office of the Director of National 
     Intelligence.
       ``(d) Functions.--The General Counsel shall perform such 
     functions as the Director of National Intelligence may 
     prescribe.


                  ``civil liberties protection officer

       ``Sec. 103D. (a) Civil Liberties Protection Officer.--(1) 
     Within the Office of the Director of National Intelligence, 
     there is a Civil Liberties Protection Officer who shall be 
     appointed by the Director of National Intelligence.
       ``(2) The Civil Liberties Protection Officer shall report 
     directly to the Director of National Intelligence.
       ``(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 
     Director of National Intelligence and the elements of the 
     intelligence community within the National Intelligence 
     Program;
       ``(2) oversee compliance by the Office and the Director of 
     National Intelligence 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 Director of National Intelligence 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 
     Director of National Intelligence 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).


                  ``Director of Science and Technology

       ``Sec. 103E. (a) Director of Science and Technology.--There 
     is a Director of Science and Technology within the Office of 
     the Director of National Intelligence who shall be appointed 
     by the Director of National Intelligence.
       ``(b) Requirement Relating to Appointment.--An individual 
     appointed as Director of Science and Technology shall have a 
     professional background and experience appropriate for the 
     duties of the Director of Science and Technology.
       ``(c) Duties.--The Director of Science and Technology 
     shall--
       ``(1) act as the chief representative of the Director of 
     National Intelligence for science and technology;
       ``(2) chair the Director of National Intelligence Science 
     and Technology Committee under subsection (d);
       ``(3) assist the Director in formulating a long-term 
     strategy for scientific advances in the field of 
     intelligence;

[[Page H10937]]

       ``(4) assist the Director on the science and technology 
     elements of the budget of the Office of the Director of 
     National Intelligence; and
       ``(5) perform other such duties as may be prescribed by the 
     Director of National Intelligence or specified by law.
       ``(d) Director of National Intelligence Science and 
     Technology Committee.--(1) There is within the Office of the 
     Director of Science and Technology a Director of National 
     Intelligence Science and Technology Committee.
       ``(2) The Committee shall be composed of the principal 
     science officers of the National Intelligence Program.
       ``(3) The Committee shall--
       ``(A) coordinate advances in research and development 
     related to intelligence; and
       ``(B) perform such other functions as the Director of 
     Science and Technology shall prescribe.


                ``national counterintelligence executive

       ``Sec. 103F. (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.) is a component 
     of the Office of the Director of National Intelligence.
       ``(b) Duties.--The National Counterintelligence Executive 
     shall perform the duties provided in the Counterintelligence 
     Enhancement Act of 2002 and such other duties as may be 
     prescribed by the Director of National Intelligence or 
     specified by law.


                     ``central intelligence agency

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


             ``director of the central intelligence agency

       ``Sec. 104A. (a) Director of Central Intelligence Agency.--
     There is a Director of the Central Intelligence Agency who 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate.
       ``(b) Supervision.--The Director of the Central 
     Intelligence Agency shall report to the Director of National 
     Intelligence regarding the activities 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 related to 
     intelligence affecting the national security as the President 
     or the Director of National Intelligence 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 deems 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.
       ``(f) Coordination With Foreign Governments.--Under the 
     direction of the Director of National Intelligence 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 or 
     international organizations on all matters involving 
     intelligence related to the national security or involving 
     intelligence acquired through clandestine means.''.
       (b) Sense of Congress.--It is the 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 Director of National 
     Intelligence.
       (c) 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 Director of National Intelligence--
       (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.
       (d) Report.--(1) Not later than 180 days after the date of 
     the enactment of this Act, the Director of the Central 
     Intelligence Agency shall submit to the Director of National 
     Intelligence 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 that 
     strategy.
       (B) A strategy for improving the human intelligence and 
     other capabilities of the Agency, and the progress of the 
     Agency in implementing that strategy.
       (2)(A) The information in the report under paragraph (1) on 
     the strategy referred to in paragraph (1)(B) shall--
       (i) identify the number and types of personnel required to 
     implement that strategy;
       (ii) include a plan for the recruitment, training, 
     equipping, and deployment of such personnel; and
       (iii) set forth an estimate of the costs of such 
     activities.
       (B) If as of the date of the 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.

     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 Director of National 
     Intelligence, 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, a mutual 
     agreement on the tactical and strategic objectives for the 
     region and a clear delineation of operational 
     responsibilities to prevent conflict and duplication of 
     effort.
       (b) Implementation Report.--Not later than 180 days after 
     the date of the enactment of the Act, the Director of 
     National Intelligence 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

[[Page H10938]]

     report describing the procedures established pursuant to 
     subsection (a) and the status of the implementation of those 
     procedures.

     SEC. 1014. ROLE OF DIRECTOR OF NATIONAL INTELLIGENCE 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 DNI in Certain Appointments.--(1) 
     In the event of a vacancy in a position referred to in 
     paragraph (2), the Director of National Intelligence shall 
     recommend to the President an individual for nomination to 
     fill the vacancy.
       ``(2) Paragraph (1) applies to the following positions:
       ``(A) The Principal Deputy Director of National 
     Intelligence.
       ``(B) The Director of the Central Intelligence Agency.
       ``(b) Concurrence of DNI 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 Director of National 
     Intelligence 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 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.
       ``(D) The Assistant Secretary of State for Intelligence and 
     Research.
       ``(E) The Director of the Office of Intelligence of the 
     Department of Energy.
       ``(F) The Director of the Office of Counterintelligence of 
     the Department of Energy.
       ``(G) The Assistant Secretary for Intelligence and Analysis 
     of the Department of the Treasury.
       ``(H) The Executive Assistant Director for Intelligence of 
     the Federal Bureau of Investigation or any successor to that 
     position.
       ``(I) The Assistant Secretary of Homeland Security for 
     Information Analysis.
       ``(c) Consultation With DNI 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 Director of National 
     Intelligence 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 Commandant of the Coast Guard for 
     Intelligence.''.

     SEC. 1015. 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:
       ``Director of National Intelligence.''.
       (b) Executive Schedule Level II.--Section 5313 of title 5, 
     United States Code, is amended by adding at the end the 
     following new items:
       ``Principal Deputy Director of National Intelligence.
       ``Director of the National Counterterrorism Center.
       ``Director of the National Counter Proliferation Center.''.
       (c) Executive Schedule Level IV.--Section 5315 of title 5, 
     United States Code, is amended--
       (1) by striking the item relating to the Assistant 
     Directors of Central Intelligence; and
       (2) by adding at the end the following new item:
       ``General Counsel of the Office of the National 
     Intelligence Director.''.

     SEC. 1016. INFORMATION SHARING.

       (a) Definitions.--In this section:
       (1) Information sharing council.--The term ``Information 
     Sharing Council'' means the Information Systems Council 
     established by Executive Order 13356, or any successor body 
     designated by the President, and referred to under subsection 
     (g).
       (2) Information sharing environment; ise.--The terms 
     ``information sharing environment'' and ``ISE'' mean an 
     approach that facilitates the sharing of terrorism 
     information, which approach may include any methods 
     determined necessary and appropriate for carrying out this 
     section.
       (3) Program manager.--The term ``program manager'' means 
     the program manager designated under subsection (f).
       (4) 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) groups or individuals reasonably believed to be 
     assisting or associated with such groups or individuals.
       (b) Information Sharing Environment.--
       (1) Establishment.--The President shall--
       (A) create an information sharing environment for the 
     sharing of terrorism information in a manner consistent with 
     national security and with applicable legal standards 
     relating to privacy and civil liberties;
       (B) designate the organizational and management structures 
     that will be used to operate and manage the ISE; and
       (C) determine and enforce the policies, directives, and 
     rules that will govern the content and usage of the ISE.
       (2) Attributes.--The President shall, through the 
     structures described in subparagraphs (B) and (C) of 
     paragraph (1), ensure that the ISE provides and facilitates 
     the means for sharing terrorism information among all 
     appropriate Federal, State, local, and tribal entities, and 
     the private sector through the use of policy guidelines and 
     technologies. The President shall, to the greatest extent 
     practicable, ensure that the ISE provides the functional 
     equivalent of, or otherwise supports, a decentralized, 
     distributed, and coordinated environment that--
       (A) connects existing systems, where appropriate, provides 
     no single points of failure, and allows users to share 
     information among agencies, between levels of government, 
     and, as appropriate, with the private sector;
       (B) ensures direct and continuous online electronic access 
     to information;
       (C) facilitates the availability of information in a form 
     and manner that facilitates its use in analysis, 
     investigations and operations;
       (D) builds upon existing systems capabilities currently in 
     use across the Government;
       (E) employs an information access management approach that 
     controls access to data rather than just systems and 
     networks, without sacrificing security;
       (F) facilitates the sharing of information at and across 
     all levels of security;
       (G) provides directory services, or the functional 
     equivalent, for locating people and information;
       (H) incorporates protections for individuals' privacy and 
     civil liberties; and
       (I) incorporates strong mechanisms to enhance 
     accountability and facilitate oversight, including audits, 
     authentication, and access controls.
       (c) Preliminary Report.--Not later than 180 days after the 
     date of the enactment of this Act, the program manager shall, 
     in consultation with the Information Sharing Council--
       (1) submit to the President and Congress a description of 
     the technological, legal, and policy issues presented by the 
     creation of the ISE, and the way in which these issues will 
     be addressed;
       (2) establish an initial capability to provide electronic 
     directory services, or the functional equivalent, to assist 
     in locating in the Federal Government intelligence and 
     terrorism information and people with relevant knowledge 
     about intelligence and terrorism information; and
       (3) conduct a review of relevant current Federal agency 
     capabilities, databases, and systems for sharing information.
       (d) Guidelines and Requirements.--As soon as possible, but 
     in no event later than 270 days after the date of the 
     enactment of this Act, the President shall--
       (1) leverage all ongoing efforts consistent with 
     establishing the ISE and 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 using tearlines to separate out 
     data from the sources and methods by which the data are 
     obtained;
       (2) in consultation with the Privacy and Civil Liberties 
     Oversight Board established under section 1061, issue 
     guidelines that--
       (A) protect privacy and civil liberties in the development 
     and use of the ISE; and
       (B) shall be made public, unless 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 over-classification of information and unnecessary 
     requirements for originator approval, consistent with 
     applicable laws and regulations; and
       (B) providing affirmative incentives for information 
     sharing.
       (e) Implementation Plan Report.--Not later than one year 
     after the date of the enactment of this Act, the President 
     shall, with the assistance of the program manager, submit to 
     Congress a report containing an implementation plan for the 
     ISE. The report shall include the following:
       (1) A description of the functions, capabilities, 
     resources, and conceptual design of the ISE, including 
     standards.
       (2) A description of the impact on enterprise architectures 
     of participating agencies.
       (3) A budget estimate that identifies the incremental costs 
     associated with designing, testing, integrating, deploying, 
     and operating the ISE.
       (4) A project plan for designing, testing, integrating, 
     deploying, and operating the ISE.
       (5) The policies and directives referred to in subsection 
     (b)(1)(C), as well as the metrics and enforcement mechanisms 
     that will be utilized.
       (6) Objective, systemwide performance measures to enable 
     the assessment of progress toward achieving the full 
     implementation of the ISE.
       (7) A description of the training requirements needed to 
     ensure that the ISE will be adequately implemented and 
     properly utilized.

[[Page H10939]]

       (8) A description of the means by which privacy and civil 
     liberties will be protected in the design and operation of 
     the ISE.
       (9) The recommendations of the program manager, in 
     consultation with the Information Sharing Council, regarding 
     whether, and under what conditions, the ISE should be 
     expanded to include other intelligence information.
       (10) A delineation of the roles of the Federal departments 
     and agencies that will participate in the ISE, including an 
     identification of the agencies that will deliver the 
     infrastructure needed to operate and manage the ISE (as 
     distinct from individual department or agency components that 
     are part of the ISE), with such delineation of roles to be 
     consistent with--
       (A) the authority of the Director of National Intelligence 
     under this title, and the amendments made by this title, to 
     set standards for information sharing throughout the 
     intelligence community; and
       (B) the authority of the Secretary of Homeland Security and 
     the Attorney General, and the role of the Department of 
     Homeland Security and the Attorney General, in coordinating 
     with State, local, and tribal officials and the private 
     sector.
       (11) The recommendations of the program manager, in 
     consultation with the Information Sharing Council, for a 
     future management structure for the ISE, including whether 
     the position of program manager should continue to remain in 
     existence.
       (f) Program Manager.--
       (1) Designation.--Not later than 120 days after the date of 
     the enactment of this Act, with notification to Congress, the 
     President shall designate an individual as the program 
     manager responsible for information sharing across the 
     Federal Government. The individual designated as the program 
     manager shall serve as program manager during the two-year 
     period beginning on the date of designation under this 
     paragraph unless sooner removed from service and replaced by 
     the President (at the President's sole discretion). The 
     program manager shall have and exercise governmentwide 
     authority.
       (2) Duties and responsibilities.--
       (A) In general.--The program manager shall, in consultation 
     with the Information Sharing Council--
       (i) plan for and oversee the implementation of, and manage, 
     the ISE;
       (ii) assist in the development of policies, procedures, 
     guidelines, rules, and standards as appropriate to foster the 
     development and proper operation of the ISE; and
       (iii) assist, monitor, and assess the implementation of the 
     ISE by Federal departments and agencies to ensure adequate 
     progress, technological consistency and policy compliance; 
     and regularly report the findings 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 ISE;
       (ii) address development, implementation, and oversight of 
     technical standards and requirements;
       (iii) take into account ongoing and planned efforts that 
     support development, implementation and management of the 
     ISE;
       (iv) 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;
       (v) address and facilitate information sharing between 
     Federal departments and agencies and State, tribal, and local 
     governments;
       (vi) address and facilitate, as appropriate, information 
     sharing between Federal departments and agencies and the 
     private sector;
       (vii) address and facilitate, as appropriate, information 
     sharing between Federal departments and agencies with foreign 
     partners and allies; and
       (viii) ensure the protection of privacy and civil 
     liberties.
       (g) Information Sharing Council.--
       (1) Establishment.--There is established an Information 
     Sharing Council that shall assist the President and the 
     program manager in their duties under this section. The 
     Information Sharing Council shall serve during the two-year 
     period beginning on the date of the initial designation of 
     the program manager by the President under subsection (f)(1), 
     unless sooner removed from service and replaced by the 
     President (at the sole discretion of the President) with a 
     successor body.
       (2) Specific duties.--In assisting the President and the 
     program manager in their duties under this section, the 
     Information Sharing Council shall--
       (A) advise the President and the program manager in 
     developing policies, procedures, guidelines, roles, and 
     standards necessary to establish, implement, and maintain the 
     ISE;
       (B) work to ensure coordination among the Federal 
     departments and agencies participating in the ISE in the 
     establishment, implementation, and maintenance of the ISE;
       (C) identify and, as appropriate, recommend the 
     consolidation and elimination of current programs, systems, 
     and processes used by Federal departments and agencies to 
     share information, and recommend, as appropriate, the 
     redirection of existing resources to support the ISE;
       (D) identify gaps, if any, between existing technologies, 
     programs and systems used by Federal departments and agencies 
     to share information and the parameters of the proposed 
     information sharing environment;
       (E) recommend solutions to address any gaps identified 
     under subparagraph (D);
       (F) recommend means by which the ISE can be extended to 
     allow interchange of information between Federal departments 
     and agencies and appropriate authorities of State and local 
     governments; and
       (G) recommend whether or not, and by which means, the ISE 
     should be expanded so as to allow future expansion 
     encompassing other relevant categories of information.
       (3) Consultation.--In performing its duties, the 
     Information Sharing Council shall consider input from persons 
     and entities outside the Federal Government having 
     significant experience and expertise in policy, technical 
     matters, and operational matters relating to the ISE.
       (4) Inapplicability of federal advisory committee act.--The 
     Information Sharing Council shall not be subject to the 
     requirements of the Federal Advisory Committee Act (5 U.S.C. 
     App.).
       (h) Performance Management Reports.--
       (1) In general.--Not later than two years after the date of 
     the enactment of this Act, and annually thereafter, the 
     President shall submit to Congress a report on the state of 
     the ISE 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 ISE has 
     been implemented, including how the ISE has fared on the 
     performance measures and whether the performance goals set in 
     the preceding year have been met;
       (B) objective system-wide performance goals for the 
     following year;
       (C) an accounting of how much was spent on the ISE in the 
     preceding year;
       (D) actions taken to ensure that procurement of and 
     investments in systems and technology are consistent with the 
     implementation plan for the ISE;
       (E) the extent to which all terrorism watch lists are 
     available for combined searching in real time through the ISE 
     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 State, tribal, and local officials 
     are participating in the ISE;
       (G) the extent to which private sector data, including 
     information from owners and operators of critical 
     infrastructure, is incorporated in the ISE, and the extent 
     to which individuals and entities outside the government 
     are receiving information through the ISE;
       (H) the measures taken by the Federal government to ensure 
     the accuracy of information in the ISE, in particular the 
     accuracy of information about individuals;
       (I) an assessment of the privacy and civil liberties 
     protections of the ISE, including actions taken in the 
     preceding year to implement or enforce privacy and civil 
     liberties protections; and
       (J) an assessment of the security protections used in the 
     ISE.
       (i) Agency Responsibilities.--The head of each department 
     or agency that possesses or uses intelligence or terrorism 
     information, operates a system in the ISE, or otherwise 
     participates (or expects to participate) in the ISE shall--
       (1) ensure full department or agency compliance with 
     information sharing policies, procedures, guidelines, rules, 
     and standards established under subsections (b) and (f);
       (2) ensure the provision of adequate resources for systems 
     and activities supporting operation of and participation in 
     the ISE;
       (3) ensure full department or agency cooperation in the 
     development of the ISE to implement governmentwide 
     information sharing; and
       (4) submit, at the request of the President or the program 
     manager, any reports on the implementation of the 
     requirements of the ISE within such department or agency.
       (j) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2005 and 2006.

     SEC. 1017. ALTERNATIVE ANALYSIS OF INTELLIGENCE BY THE 
                   INTELLIGENCE COMMUNITY.

       (a) In General.--Not later than 180 days after the 
     effective date of this Act, the Director of National 
     Intelligence shall establish a process and assign an 
     individual or entity the responsibility for ensuring that, as 
     appropriate, elements of the intelligence community conduct 
     alternative analysis (commonly referred to as ``red-team 
     analysis'') of the information and conclusions in 
     intelligence products.
       (b) Report.--Not later than 270 days after the effective 
     date of this Act, the Director of National Intelligence shall 
     provide a report to the Select Committee on Intelligence of 
     the Senate and the Permanent Select Committee of the House of 
     Representatives on the implementation of subsection (a).

     SEC. 1018. PRESIDENTIAL GUIDELINES ON IMPLEMENTATION AND 
                   PRESERVATION OF AUTHORITIES.

       The President shall issue guidelines to ensure the 
     effective implementation and execution within the executive 
     branch of the authorities granted to the Director of National 
     Intelligence by this title and the amendments made by this 
     title, in a manner that respects and does not abrogate the 
     statutory responsibilities of the heads of the departments of 
     the United States Government concerning such departments, 
     including, but not limited to:
       (1) the authority of the Director of the Office of 
     Management and Budget; and
       (2) the authority of the principal officers of the 
     executive departments as heads of their respective 
     departments, including, but not limited to, under--
       (A) section 199 of the Revised Statutes (22 U.S.C. 2651);
       (B) title II of the Department of Energy Organization Act 
     (42 U.S.C. 7131 et seq.);
       (C) the State Department Basic Authorities Act of 1956;

[[Page H10940]]

       (D) section 102(a) of the Homeland Security Act of 2002 (6 
     U.S.C. 112(a)); and
       (E) sections 301 of title 5, 113(b) and 162(b) of title 10, 
     503 of title 28, and 301(b) of title 31, United States Code.

     SEC. 1019. ASSIGNMENT OF RESPONSIBILITIES RELATING TO 
                   ANALYTIC INTEGRITY.

       (a) Assignment of Responsibilities.--For purposes of 
     carrying out section 102A(h) of the National Security Act of 
     1947 (as added by section 1011(a)), the Director of National 
     Intelligence shall, not later than 180 days after the date of 
     the enactment of this Act, assign an individual or entity to 
     be responsible for ensuring that finished intelligence 
     products produced by any element or elements of the 
     intelligence community are timely, objective, independent of 
     political considerations, based upon all sources of available 
     intelligence, and employ the standards of proper analytic 
     tradecraft.
       (b) Responsibilities.--(1) The individual or entity 
     assigned responsibility under subsection (a)--
       (A) may be responsible for general oversight and management 
     of analysis and production, but may not be directly 
     responsible for, or involved in, the specific production of 
     any finished intelligence product;
       (B) shall perform, on a regular basis, detailed reviews of 
     finished intelligence product or other analytic products by 
     an element or elements of the intelligence community covering 
     a particular topic or subject matter;
       (C) shall be responsible for identifying on an annual basis 
     functional or topical areas of analysis for specific review 
     under subparagraph (B); and
       (D) upon completion of any review under subparagraph (B), 
     may draft lessons learned, identify best practices, or make 
     recommendations for improvement to the analytic tradecraft 
     employed in the production of the reviewed product or 
     products.
       (2) Each review under paragraph (1)(B) should--
       (A) include whether the product or products concerned were 
     based on all sources of available intelligence, properly 
     describe the quality and reliability of underlying sources, 
     properly caveat and express uncertainties or confidence in 
     analytic judgments, properly distinguish between underlying 
     intelligence and the assumptions and judgments of analysts, 
     and incorporate, where appropriate, alternative analyses; and
       (B) ensure that the analytic methodologies, tradecraft, and 
     practices used by the element or elements concerned in the 
     production of the product or products concerned meet the 
     standards set forth in subsection (a).
       (3) Information drafted under paragraph (1)(D) should, as 
     appropriate, be included in analysis teaching modules and 
     case studies for use throughout the intelligence community.
       (c) Annual Reports.--Not later than December 1 each year, 
     the Director of National Intelligence shall submit to the 
     congressional intelligence committees, the heads of the 
     relevant elements of the intelligence community, and the 
     heads of analytic training departments a report containing a 
     description, and the associated findings, of each review 
     under subsection (b)(1)(B) during such year.
       (d) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

     SEC. 1020. SAFEGUARD OF OBJECTIVITY IN INTELLIGENCE ANALYSIS.

       (a) In General.--Not later than 180 days after the 
     effective date of this Act, the Director of National 
     Intelligence shall identify an individual within the Office 
     of the Director of National Intelligence who shall be 
     available to analysts within the Office of the Director of 
     National Intelligence to counsel, conduct arbitration, offer 
     recommendations, and, as appropriate, initiate inquiries into 
     real or perceived problems of analytic tradecraft or 
     politicization, biased reporting, or lack of objectivity in 
     intelligence analysis.
       (b) Report.--Not later than 270 days after the effective 
     date of this Act, the Director of National Intelligence shall 
     provide a report to the Select Committee on Intelligence of 
     the Senate and the Permanent Select Committee on Intelligence 
     of the House of Representatives on the implementation of 
     subsection (a).
    Subtitle B--National Counterterrorism Center, National Counter 
        Proliferation Center, and National Intelligence Centers

     SEC. 1021. NATIONAL COUNTERTERRORISM CENTER.

       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 Director of National Intelligence 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) The Director of the National Counterterrorism Center 
     may not simultaneously serve in any other capacity in the 
     executive branch.
       ``(c) Reporting.--(1) The Director of the National 
     Counterterrorism Center shall report to the Director of 
     National Intelligence with respect to matters described in 
     paragraph (2) and the President with respect to matters 
     described in paragraph (3).
       ``(2) The matters described in this paragraph are as 
     follows:
       ``(A) The budget and programs of the National 
     Counterterrorism Center.
       ``(B) The activities of the Directorate of Intelligence of 
     the National Counterterrorism Center under subsection (h).
       ``(C) The conduct of intelligence operations implemented by 
     other elements of the intelligence community; and
       ``(3) The matters described in this paragraph are the 
     planning and progress of joint counterterrorism operations 
     (other than intelligence 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 responsibilities as part of 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 operational 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 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.--(1) The 
     Director of the National Counterterrorism Center shall--
       ``(A) serve as the principal adviser to the Director of 
     National Intelligence on intelligence operations relating to 
     counterterrorism;
       ``(B) provide strategic operational 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;
       ``(C) advise the Director of National Intelligence 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;
       ``(D) 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;
       ``(E) 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 Director of National Intelligence;
       ``(F) develop a strategy for combining terrorist travel 
     intelligence operations and law enforcement planning and 
     operations into a cohesive effort to intercept terrorists, 
     find terrorist travel facilitators, and constrain terrorist 
     mobility;
       ``(G) have primary responsibility within the United States 
     Government for conducting net assessments of terrorist 
     threats;
       ``(H) consistent with priorities approved by the President, 
     assist the Director of National Intelligence in establishing 
     requirements for the intelligence community for the 
     collection of terrorism information; and
       ``(I) perform such other duties as the Director of National 
     Intelligence may prescribe or are prescribed by law.
       ``(2) Nothing in paragraph (1)(G) shall limit the authority 
     of the departments and agencies of the United States to 
     conduct net assessments.
       ``(g) Limitation.--The Director of the National 
     Counterterrorism Center may not direct the execution of 
     counterterrorism operations.
       ``(h) Resolution of Disputes.--The Director of National 
     Intelligence 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 under this section. 
     The head of such a department, agency, or element may appeal 
     the

[[Page H10941]]

     resolution of the disagreement by the Director of National 
     Intelligence 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 Operational Planning.--(1) 
     The Director of the National Counterterrorism Center shall 
     establish and maintain within the National Counterterrorism 
     Center a Directorate of Strategic Operational Planning which 
     shall provide strategic operational plans for 
     counterterrorism operations conducted by the United States 
     Government.
       ``(2) Strategic operational planning shall include the 
     mission, objectives to be achieved, tasks to be performed, 
     interagency coordination of operational activities, and the 
     assignment of roles and responsibilities.
       ``(3) The Director of the National Counterterrorism Center 
     shall monitor the implementation of strategic operational 
     plans, and shall obtain information from each element of the 
     intelligence community, and from each other department, 
     agency, or element of the United States Government relevant 
     for monitoring the progress of such entity in implementing 
     such plans.

     SEC. 1022. NATIONAL COUNTER PROLIFERATION CENTER.

       Title I of the National Security Act of 1947, as amended by 
     section 1021 of this Act, is further amended by adding at the 
     end the following new section:


                ``national counter proliferation center

       ``Sec. 119A. (a) Establishment.--Not later than 18 months 
     after the date of the enactment of the National Security 
     Intelligence Reform Act of 2004, the President shall 
     establish a National Counter Proliferation Center, taking 
     into account all appropriate government tools to prevent and 
     halt the proliferation of weapons of mass destruction, their 
     delivery systems, and related materials and technologies.
       ``(b) Missions and Objectives.--In establishing the 
     National Counter Proliferation Center, the President shall 
     address the following missions and objectives to prevent and 
     halt the proliferation of weapons of mass destruction, their 
     delivery systems, and related materials and technologies:
       ``(1) Establishing a primary organization within the United 
     States Government for analyzing and integrating all 
     intelligence possessed or acquired by the United States 
     pertaining to proliferation.
       ``(2) Ensuring that appropriate agencies have full access 
     to and receive all-source intelligence support needed to 
     execute their counter proliferation plans or activities, and 
     perform independent, alternative analyses.
       ``(3) Establishing a central repository on known and 
     suspected proliferation activities, including the goals, 
     strategies, capabilities, networks, and any individuals, 
     groups, or entities engaged in proliferation.
       ``(4) Disseminating proliferation information, including 
     proliferation threats and analyses, to the President, to the 
     appropriate departments and agencies, and to the appropriate 
     committees of Congress.
       ``(5) Conducting net assessments and warnings about the 
     proliferation of weapons of mass destruction, their delivery 
     systems, and related materials and technologies.
       ``(6) Coordinating counter proliferation plans and 
     activities of the various departments and agencies of the 
     United States Government to prevent and halt the 
     proliferation of weapons of mass destruction, their delivery 
     systems, and related materials and technologies.
       ``(7) Conducting strategic operational counter 
     proliferation planning for the United States Government to 
     prevent and halt the proliferation of weapons of mass 
     destruction, their delivery systems, and related materials 
     and technologies.
       ``(c) National Security Waiver.--The President may waive 
     the requirements of this section, and any parts thereof, if 
     the President determines that such requirements do not 
     materially improve the ability of the United States 
     Government to prevent and halt the proliferation of weapons 
     of mass destruction, their delivery systems, and related 
     materials and technologies. Such waiver shall be made in 
     writing to Congress and shall include a description of how 
     the missions and objectives in subsection (b) are being met.
       ``(d) Report to Congress.--(1) Not later than nine months 
     after the implementation of this Act, the President shall 
     submit to Congress, in classified form if necessary, the 
     findings and recommendations of the President's Commission on 
     Weapons of Mass Destruction established by Executive Order in 
     February 2004, together with the views of the President 
     regarding the establishment of a National Counter 
     Proliferation Center.
       ``(2) If the President decides not to exercise the waiver 
     authority granted by subsection (c), the President shall 
     submit to Congress from time to time updates and plans 
     regarding the establishment of a National Counter 
     Proliferation Center.
       ``(e) Sense of Congress.--It is the sense of Congress that 
     a central feature of counter proliferation activities, 
     consistent with the President's Proliferation Security 
     Initiative, should include the physical interdiction, by air, 
     sea, or land, of weapons of mass destruction, their delivery 
     systems, and related materials and technologies, and enhanced 
     law enforcement activities to identify and disrupt 
     proliferation networks, activities, organizations, and 
     persons.''.

     SEC. 1023. NATIONAL INTELLIGENCE CENTERS.

       Title I of the National Security Act of 1947, as amended by 
     section 1022 of this Act, is further amended by adding at the 
     end the following new section:


                    ``national intelligence centers

       ``Sec. 119B. (a) Authority To Establish.--The Director of 
     National Intelligence may establish one or more national 
     intelligence centers to address intelligence priorities, 
     including, but not limited to, regional issues.
       ``(b) Resources of Directors of Centers.--(1) The Director 
     of National Intelligence shall ensure that the head of each 
     national intelligence center under subsection (a) has 
     appropriate authority, direction, and control of such center, 
     and of the personnel assigned to such center, to carry out 
     the assigned mission of such center.
       ``(2) The Director of National Intelligence shall ensure 
     that each national intelligence center has appropriate 
     personnel to accomplish effectively the mission of such 
     center.
       ``(c) Information Sharing.--The Director of National 
     Intelligence shall, to the extent appropriate and 
     practicable, ensure that each national intelligence center 
     under subsection (a) and the other elements of the 
     intelligence community share information in order to 
     facilitate the mission of such center.
       ``(d) Mission of Centers.--Pursuant to the direction of the 
     Director of National Intelligence, each national intelligence 
     center under subsection (a) may, in the area of intelligence 
     responsibility assigned to such center--
       ``(1) have primary responsibility for providing all-source 
     analysis of intelligence based upon intelligence gathered 
     both domestically and abroad;
       ``(2) have primary responsibility for identifying and 
     proposing to the Director of National Intelligence 
     intelligence collection and analysis and production 
     requirements; and
       ``(3) perform such other duties as the Director of National 
     Intelligence shall specify.
       ``(e) Review and Modification of Centers.--The Director of 
     National Intelligence shall determine on a regular basis 
     whether--
       ``(1) the area of intelligence responsibility assigned to 
     each national intelligence center under subsection (a) 
     continues to meet appropriate intelligence priorities; and
       ``(2) the staffing and management of such center remains 
     appropriate for the accomplishment of the mission of such 
     center.
       ``(f) Termination.--The Director of National Intelligence 
     may terminate any national intelligence center under 
     subsection (a).
       ``(g) Separate Budget Account.--The Director of National 
     Intelligence shall, as appropriate, include in the National 
     Intelligence Program budget a separate line item for each 
     national intelligence center under subsection (a).''.
            Subtitle C--Joint Intelligence Community Council

     SEC. 1031. JOINT INTELLIGENCE COMMUNITY COUNCIL.

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


                 ``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 Director of National Intelligence, 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 Director of National Intelligence 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 Director of National Intelligence 
     shall convene regular meetings of the Joint Intelligence 
     Community Council.
       ``(e) Advice and Opinions of Members Other Than Chairman.--
     (1) A member of the Joint Intelligence Community Council 
     (other than the Chairman) may submit to the Chairman advice 
     or an opinion in disagreement with, or advice or an opinion 
     in addition to, the advice presented by the Director of 
     National Intelligence to the President or the National 
     Security Council, in the role of the Chairman as Chairman of 
     the Joint Intelligence Community Council. If a member submits 
     such advice or opinion, the Chairman shall present the advice 
     or opinion of such member at the same time the Chairman 
     presents the advice of the Chairman to the President or the 
     National Security Council, as the case may be.
       ``(2) The Chairman shall establish procedures to ensure 
     that the presentation of the advice of the Chairman to the 
     President or the National Security Council is not unduly 
     delayed by reason of the submission of the individual advice 
     or opinion of another member of the Council.
       ``(f) Recommendations to Congress.--Any member of the Joint 
     Intelligence Community Council may make such recommendations 
     to

[[Page H10942]]

     Congress relating to the intelligence community as such 
     member considers appropriate.''.
  Subtitle D--Improvement of Education for the Intelligence Community

     SEC. 1041. ADDITIONAL EDUCATION AND TRAINING REQUIREMENTS.

       (a) Findings.--Congress makes the following findings:
       (1) Foreign language education is essential for the 
     development of a highly-skilled workforce for the 
     intelligence community.
       (2) Since September 11, 2001, the need for language 
     proficiency levels to meet required national security 
     functions has been raised, and the ability to comprehend and 
     articulate technical and scientific information in foreign 
     languages has become critical.
       (b) Linguistic Requirements.--(1) The Director of National 
     Intelligence shall--
       (A) identify the linguistic requirements for the Office of 
     the Director of National Intelligence;
       (B) identify specific requirements for the range of 
     linguistic skills necessary for the intelligence community, 
     including proficiency in scientific and technical 
     vocabularies of critical foreign languages; and
       (C) develop a comprehensive plan for the Office to meet 
     such requirements through the education, recruitment, and 
     training of linguists.
       (2) In carrying out activities under paragraph (1), the 
     Director shall take into account education grant programs of 
     the Department of Defense and the Department of Education 
     that are in existence as of the date of the enactment of this 
     Act.
       (3) Not later than one year after the date of the enactment 
     of this Act, and annually thereafter, the Director shall 
     submit to Congress a report on the requirements identified 
     under paragraph (1), including the success of the Office of 
     the Director of National Intelligence in meeting such 
     requirements. Each report shall notify Congress of any 
     additional resources determined by the Director to be 
     required to meet such requirements.
       (4) Each report under paragraph (3) shall be in 
     unclassified form, but may include a classified annex.
       (c) Professional Intelligence Training.--The Director of 
     National Intelligence shall require the head of each element 
     and component within the Office of the Director of National 
     Intelligence who has responsibility for professional 
     intelligence training to periodically review and revise the 
     curriculum for the professional intelligence training of the 
     senior and intermediate level personnel of such element or 
     component in order to--
       (1) strengthen the focus of such curriculum on the 
     integration of intelligence collection and analysis 
     throughout the Office; and
       (2) prepare such personnel for duty with other departments, 
     agencies, and element of the intelligence community.

     SEC. 1042. CROSS-DISCIPLINARY EDUCATION AND TRAINING.

       Title X of the National Security Act of 1947 (50 U.S.C. 
     441g) is amended by adding at the end the following new 
     section:


       ``framework for cross-disciplinary education and training

       ``Sec. 1002. The Director of National Intelligence 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. 1043. INTELLIGENCE COMMUNITY SCHOLARSHIP PROGRAM.

       Title X of the National Security Act of 1947, as amended by 
     section 1042 of this Act, is further amended by adding at the 
     end the following new section:


              ``intelligence community scholarship program

       ``Sec. 1003. (a) Establishment.--
       ``(1) In general.--The Director of National Intelligence, 
     in consultation with the head of each agency of the 
     intelligence community, 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 (g)(1), in 
     positions needed by the agency and for which the individuals 
     are qualified, in exchange for receiving a scholarship.
       ``(b) 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 (d);
       ``(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).
       ``(c) Application.-- An individual seeking a scholarship 
     under this section shall submit an application to the 
     Director of National Intelligence at such time, in such 
     manner, and containing such information, agreements, or 
     assurances as the Director may require.
       ``(d) Programs and Fields of Study.--The Director of 
     National Intelligence 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.
       ``(e) Scholarships.--
       ``(1) In general.--The Director of National Intelligence 
     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 (c), a proposed academic program 
     leading to a degree in a program or field of study on the 
     list made available under subsection (d).
       ``(2) Limitation on years.--An individual may not receive a 
     scholarship under this section for more than 4 academic 
     years, unless the Director of National Intelligence 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 Director of National Intelligence, 
     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 Director of 
     National Intelligence by regulation.
       ``(6) Payment to institution of higher education.--The 
     Director of National Intelligence 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.
       ``(f) Special Consideration for Current Employees.--
       ``(1) Set aside of scholarships.--Notwithstanding 
     paragraphs (1) and (3) of subsection (b), 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.
       ``(g) Employee Service.--
       ``(1) Period of service.--Except as provided in subsection 
     (i)(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 Director of National Intelligence, 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.
       ``(h) Repayment.--
       ``(1) In general.--Scholarship recipients who fail to 
     maintain a high level of academic standing, as defined by the 
     Director of National Intelligence, 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 (i)(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 
     Director of National Intelligence under subsection (i)(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.
       ``(i) 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 Director of National 
     Intelligence shall prescribe regulations to provide for the 
     partial or total waiver or suspension of any obligation of 
     service or payment

[[Page H10943]]

     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.
       ``(j) Regulations.--The Director of National Intelligence 
     shall prescribe regulations necessary to carry out this 
     section.
       ``(k) Definitions.--In this section:
       ``(1) Agency.--The term `agency' means each element of the 
     intelligence community as determined by the Director of 
     National Intelligence.
       ``(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 
     (a).''.
     Subtitle E--Additional Improvements of Intelligence Activities

     SEC. 1051. SERVICE AND NATIONAL LABORATORIES AND THE 
                   INTELLIGENCE COMMUNITY.

       The Director of National Intelligence, 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 Director of National Intelligence 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. 1052. OPEN-SOURCE INTELLIGENCE.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the Director of National Intelligence 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) Requirement for Efficient Use by Intelligence Community 
     of Open-source Intelligence.--The Director of National 
     Intelligence shall ensure that the intelligence community 
     makes efficient and effective use of open-source information 
     and analysis.
       (c) Report.--Not later than June 30, 2005, the Director of 
     National Intelligence shall submit to the congressional 
     intelligence committees a report containing the decision of 
     the Director as to whether an open source intelligence center 
     will be established. If the 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.
       (d) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

     SEC. 1053. NATIONAL INTELLIGENCE RESERVE CORPS.

       (a) Establishment.--The Director of National Intelligence 
     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) Terms of Participation.--The Director of National 
     Intelligence shall prescribe the terms and conditions under 
     which eligible individuals may participate in the National 
     Intelligence Reserve Corps.
       (d) Expenses.--The Director of National Intelligence 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.
       (e) 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.
       (f) Treatment Under Office of Director of National 
     Intelligence 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 Office of the Director of 
     National Intelligence.
                Subtitle F--Privacy and Civil Liberties

     SEC. 1061. PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD.

       (a) 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 Federal 
     Government may need additional powers and may need to enhance 
     the use of its existing powers.
       (2) This potential shift of power and authority to the 
     Federal Government calls for an enhanced system of checks and 
     balances to protect the precious liberties that are vital to 
     our way of life.
       (b) Establishment of Board.--There is established within 
     the Executive Office of the President a Privacy and Civil 
     Liberties Oversight Board (referred to in this section as the 
     ``Board'').
       (c) Functions.--
       (1) Advice and counsel on development and implementation of 
     policy.--For the purpose of providing advice to the President 
     or to the head of any department or agency of the executive 
     branch, the Board shall--
       (A) review proposed regulations and executive branch 
     policies related to efforts to protect the Nation from 
     terrorism, including the development and adoption of 
     information sharing guidelines under subsections (d) and (f) 
     of section 1016;
       (B) review the implementation of laws, regulations, and 
     executive branch policies related to efforts to protect the 
     Nation from terrorism, including the implementation of 
     information sharing guidelines under subsections (d) and (f) 
     of section 1016;
       (C) advise the President and the head of any department or 
     agency of the executive branch to ensure that privacy and 
     civil liberties are appropriately considered in the 
     development and implementation of such regulations and 
     executive branch policies; 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 
     concerned has explained--
       (i) that there is adequate supervision of the use by the 
     executive branch of the power to ensure protection of privacy 
     and civil liberties;
       (ii) that there are adequate guidelines and oversight to 
     properly confine the use of the power; and
       (iii) that the need for the power, including the risk 
     presented to the national security if the Federal Government 
     does not take certain actions, is balanced with the need to 
     protect privacy and civil liberties.
       (2) Oversight.--The Board shall continually review--
       (A) regulations, executive branch policies, and procedures 
     (including the implementation of such regulations, policies, 
     and procedures), related laws pertaining to efforts to 
     protect the Nation from terrorism, and other actions by the 
     executive branch related to efforts to protect the Nation 
     from terrorism to ensure that privacy and civil liberties are 
     protected; and
       (B) the information sharing practices of the departments, 
     agencies, and elements of the executive branch to determine 
     whether or not such practices appropriately protect privacy 
     and civil liberties and adhere to the information sharing 
     guidelines under subsections (d) and (f) of section 1016 and 
     to other applicable laws, regulations, and executive branch 
     policies regarding the protection of privacy and civil 
     liberties.
       (3) Scope.--The Board shall ensure that concerns with 
     respect to privacy and civil liberties are appropriately 
     considered in the implementation of laws, regulations, and 
     executive branch policies related to efforts to protect the 
     Nation against terrorism.
       (4) Reports to congress.--Not less frequently than 
     annually, the Board shall prepare a report to Congress, 
     unclassified to the greatest extent possible (with a 
     classified annex, if necessary), on the Board's major 
     activities during the preceding period.
       (d) 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 the extent permitted by 
     law, to--
       (A) have access from any department or agency of the 
     executive branch, or any Federal officer or employee of any 
     such department or agency, to all relevant records, reports, 
     audits, reviews, documents, papers, recommendations, or other 
     relevant material, including classified information 
     consistent with applicable law;
       (B) interview or take statements from officers of any 
     department or agency of the executive branch;
       (C) request information or assistance from any State, 
     tribal, or local government; and
       (D)(i) request that persons (other than departments, 
     agencies, and elements of the executive branch) produce for 
     the Board relevant information, documents, reports, answers, 
     records, accounts, papers, and other documentary and 
     testimonial evidence; and
       (ii) if the person to whom such a request is directed does 
     not comply with the request within 45 days of receipt of such 
     request, notify the Attorney General of such person's failure 
     to comply with such request, which notice shall include all 
     relevant information.
       (2) Production of information and evidence.--
       (A) Explanation of noncompliance.--Upon receiving 
     notification under paragraph (1)(D)(ii) regarding a request, 
     the Attorney General shall provide an opportunity for the 
     person subject to

[[Page H10944]]

     the request to explain the reasons for not complying with the 
     request.
       (B) Action by attorney general.--Upon receiving 
     notification under paragraph (1)(D)(ii) regarding a request, 
     the Attorney General shall review the request and may take 
     such steps as appropriate to ensure compliance with the 
     request for the information, documents, reports, answers, 
     records, accounts, papers, and other documentary and 
     testimonial evidence covered by the request.
       (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 or agency concerned without delay. If 
     the requested information or assistance may be provided to 
     the Board in accordance with applicable law, the head of the 
     department or agency concerned shall ensure compliance with 
     such request.
       (4) Exceptions for national security.--
       (A) In general.--If the National Intelligence Director, in 
     consultation with the Attorney General, determines that it is 
     necessary to withhold information requested under paragraph 
     (3) to protect the national security interests of the United 
     States, the head of the department or agency concerned shall 
     not furnish such information to the Board.
       (B) Certain information.--If the Attorney General 
     determines that it is necessary to withhold information 
     requested under paragraph (3) from disclosure to protect 
     sensitive law enforcement or counterterrorism information or 
     ongoing operations, the head of the department or agency 
     concerned shall not furnish such information to the Board.
       (e) Membership.--
       (1) Members.--
       (A) In general.--The Board shall be composed of a chairman, 
     a vice chairman, and three additional members appointed by 
     the President.
       (B) Chairman and vice chairman.--The chairman and vice 
     chairman shall each be appointed by the President, by and 
     with the advice and consent of the Senate.
       (C) Appointment requirements.--Any individual appointed to 
     the Board shall be appointed from among trustworthy and 
     distinguished citizens outside the Federal Government who are 
     qualified on the basis of achievement, experience, and 
     independence.
       (D) Full-time service of chairman.--The chairman may serve 
     on a full-time basis.
       (E) Service at pleasure of president.--The chairman, vice 
     chairman, and other members of the Board shall each serve at 
     the pleasure of the President.
       (2) 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.
       (3) Quorum and meetings.--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.
       (f) Compensation and Travel Expenses.--
       (1) Compensation.--
       (A) Chairman on full-time basis.--If the chairman serves on 
     a full-time basis, the rate of pay for the chairman shall be 
     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.
       (B) Chairman and vice chairman on part-time basis.--The 
     chairman, if serving on a part-time basis, and the vice 
     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 such official is engaged in the actual performance 
     of the duties of the Board.
       (C) Members.--Each member of the Board shall be compensated 
     at a rate equal to the daily equivalent of the annual rate of 
     basic pay in effect for a position at level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day during which that member is engaged 
     in the actual performance of the duties of the Board.
       (2) Travel expenses.--Members of the Board shall be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     at rates authorized for persons employed intermittently by 
     the Federal 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.
       (g) 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.--Federal employees 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.
       (h) Security Clearances.--The appropriate departments and 
     agencies of the executive branch shall cooperate with the 
     Board to expeditiously provide Board members and staff with 
     appropriate security clearances to the extent possible under 
     applicable procedures and requirements. Promptly upon 
     commencing its work, the Board shall adopt, after 
     consultation with the Secretary of Defense, the Attorney 
     General, and the National Intelligence Director, rules and 
     procedures of the Board for physical, communications, 
     computer, document, personnel, and other security in relation 
     to the work of the Board.
       (i) Applicability of Certain Laws.--
       (1) Federal advisory committee act.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply with respect to 
     the Board and its activities.
       (2) Freedom of information act.--For purposes of the 
     Freedom of Information Act, the Board shall be treated as an 
     agency (as that term is defined in section 551(1) of title 5, 
     United States Code).
       (j) Construction.--Except as otherwise provided in this 
     section, nothing in this section shall be construed to 
     require any consultation with the Board by any department or 
     agency of the executive branch or any Federal officer or 
     employee, or any waiting period that must be observed by any 
     department or agency of the executive branch or any Federal 
     officer or employee, before developing, proposing, or 
     implementing any legislation, law, regulation, policy, or 
     guideline related to efforts to protect the Nation from 
     terrorism.
       (k) Presidential Responsibility.--The Board shall perform 
     its functions within the executive branch and under the 
     general supervision of the President.
       (l) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 1062. SENSE OF CONGRESS ON DESIGNATION OF PRIVACY AND 
                   CIVIL LIBERTIES OFFICERS.

       It is the sense of Congress that each executive department 
     or agency with law enforcement or antiterrorism functions 
     should designate a privacy and civil liberties officer.
              Subtitle G--Conforming and Other Amendments

     SEC. 1071. CONFORMING AMENDMENTS RELATING TO ROLES OF 
                   DIRECTOR OF NATIONAL INTELLIGENCE 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 ``Director 
     of National Intelligence'':
       (A) Section 101(h)(2)(A) (50 U.S.C. 402(h)(2)(A)).
       (B) Section 101(h)(5) (50 U.S.C. 402(h)(5)).
       (C) Section 101(i)(2)(A) (50 U.S.C. 402(i)(2)(A)).
       (D) Section 101(j) (50 U.S.C. 402(j)).
       (E) Section 105(a) (50 U.S.C. 403-5(a)).
       (F) Section 105(b)(6)(A) (50 U.S.C. 403-5(b)(6)(A)).
       (G) Section 105B(a)(1) (50 U.S.C. 403-5b(a)(1)).
       (H) Section 105B(b) (50 U.S.C. 403-5b(b)), the first place 
     it appears.
       (I) Section 110(b) (50 U.S.C. 404e(b)).
       (J) Section 110(c) (50 U.S.C. 404e(c)).
       (K) Section 112(a)(1) (50 U.S.C. 404g(a)(1)).
       (L) Section 112(d)(1) (50 U.S.C. 404g(d)(1)).
       (M) Section 113(b)(2)(A) (50 U.S.C. 404h(b)(2)(A)).
       (N) Section 114(a)(1) (50 U.S.C. 404i(a)(1)).
       (O) Section 114(b)(1) (50 U.S.C. 404i(b)(1)).
       (P) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
       (Q) Section 115(b) (50 U.S.C. 404j(b)).
       (R) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).
       (S) Section 116(a) (50 U.S.C. 404k(a)).
       (T) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
       (U) Section 303(a) (50 U.S.C. 405(a)), both places it 
     appears.
       (V) Section 501(d) (50 U.S.C. 413(d)).
       (W) Section 502(a) (50 U.S.C. 413a(a)).
       (X) Section 502(c) (50 U.S.C. 413a(c)).
       (Y) Section 503(b) (50 U.S.C. 413b(b)).
       (Z) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
       (AA) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
       (BB) Section 506A(a)(1) (50 U.S.C. 415a-1(a)(1)).
       (CC) Section 603(a) (50 U.S.C. 423(a)).
       (DD) Section 702(a)(1) (50 U.S.C. 432(a)(1)).
       (EE) Section 702(a)(6)(B)(viii) (50 U.S.C. 
     432(a)(6)(B)(viii)).
       (FF) Section 702(b)(1) (50 U.S.C. 432(b)(1)), both places 
     it appears.
       (GG) Section 703(a)(1) (50 U.S.C. 432a(a)(1)).
       (HH) Section 703(a)(6)(B)(viii) (50 U.S.C. 
     432a(a)(6)(B)(viii)).
       (II) Section 703(b)(1) (50 U.S.C. 432a(b)(1)), both places 
     it appears.
       (JJ) Section 704(a)(1) (50 U.S.C. 432b(a)(1)).
       (KK) Section 704(f)(2)(H) (50 U.S.C. 432b(f)(2)(H)).
       (LL) Section 704(g)(1)) (50 U.S.C. 432b(g)(1)), both places 
     it appears.
       (MM) Section 1001(a) (50 U.S.C. 441g(a)).
       (NN) Section 1102(a)(1) (50 U.S.C. 442a(a)(1)).
       (OO) Section 1102(b)(1) (50 U.S.C. 442a(b)(1)).
       (PP) Section 1102(c)(1) (50 U.S.C. 442a(c)(1)).
       (QQ) 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 ``Director of National Intelligence'':

[[Page H10945]]

       (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 ``Director of National Intelligence, 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 Director of National Intelligence, 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 Director of National 
     Intelligence''.
       (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 director of national 
                            intelligence''.

       (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 ``Director of National 
     Intelligence'':
       (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 ``Director 
     of National Intelligence''.
       (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 ``Director of National Intelligence''.
       (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 ``Director 
     of National Intelligence''.
       (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 ``Director of 
     National Intelligence'':
       (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 ``Director of National 
     Intelligence'':
       (i) Section 904(e)(4) (50 U.S.C. 402c(e)(4)).
       (ii) Section 904(e)(5) (50 U.S.C. 402c(e)(5)).
       (iii) Section 904(h) (50 U.S.C. 402c(h)), each place it 
     appears.
       (iv) 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 ``Director of 
     National Intelligence 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 ``Director of 
     National Intelligence''.
       (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 ``Director 
     of National Intelligence'':
       (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 ``Director of National Intelligence''.
       (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 ``Principal Deputy Director of 
     National Intelligence''.
       (2) Section 105(a) of that Act (50 U.S.C. 403-5(a)) is 
     amended by striking ``The Secretary'' in the matter preceding 
     paragraph (1) and inserting ``Consistent with sections 102 
     and 102A, the Secretary''.
       (3) Section 105(b) of that Act (50 U.S.C. 403-5(b)) is 
     amended by striking ``103 and 104'' in the matter preceding 
     paragraph (1) and inserting ``102 and 102A''.
       (4) 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(i) of this Act''.
       (5) 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 Director of National Intelligence, or 
     with respect to employees of the Central Intelligence Agency, 
     to the Director of the Central Intelligence Agency''.
       (6) 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 Director 
     of National Intelligence''.
       (7) 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 Director of 
     National Intelligence''.
       (8) 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 Director of National Intelligence''.
       (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(i) 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(i) of the National Security Act 
     of 1947 (50 U.S.C. 403-3(c)(1)) that the Director of National 
     Intelligence''.
       (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(i) of the 
     National Security Act of 1947 (50 U.S.C. 403-3(c)(1))''.
       (B)(i) Section 902 of that Act (also known as the 
     Counterintelligence Enhancements Act of 2002) (50 U.S.C. 
     402b) is amended by striking ``President'' each place it 
     appears and inserting ``Director of National Intelligence''.
       (ii) Section 902(a)(2) of that Act is amended by striking 
     ``Director of Central Intelligence'' and inserting ``Director 
     of the Central Intelligence Agency''.
       (C) 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 
     Director of National Intelligence''; and
       (ii) in subsection (l), by striking ``Office of the 
     Director of Central Intelligence'' and inserting ``Office of 
     the Director of National Intelligence''.
       (2) Public law 108-177.--(A) Section 317 of the 
     Intelligence Authorization Act for Fiscal Year 2004 (Public 
     Law 108-177; 50 U.S.C. 403-3 note) is amended--
       (i) in subsection (g), by striking ``Assistant Director of 
     Central Intelligence for Analysis and Production'' and 
     inserting ``Deputy Director of National Intelligence''; and
       (ii) in subsection (h)(2)(C), by striking ``Assistant 
     Director'' and inserting ``Deputy Director of National 
     Intelligence''.
       (B) Section 318(e) of that Act (50 U.S.C. 441g note) is 
     amended by striking ``Assistant Director of Central 
     Intelligence for Analysis and Production'' and inserting 
     ``Deputy Director of National Intelligence''.

     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 Director of National Intelligence.

[[Page H10946]]

       ``(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 Director of National Intelligence 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)(A) Section 506 of the 
     National Security Act of 1947 (50 U.S.C. 415a) is amended--
       (i) in subsection (a), by striking ``National Foreign 
     Intelligence Program'' and inserting ``National Intelligence 
     Program''; and
       (ii) in the section heading, by striking ``foreign''.
       (B) Section 105 of that Act (50 U.S.C. 403-5) is amended--
       (i) in paragraphs (2) and (3) of subsection (a), by 
     striking ``National Foreign Intelligence Program'' and 
     inserting ``National Intelligence Program''; and
       (ii) in the section heading, by striking ``foreign''.
       (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''.

     SEC. 1075. REPEAL OF SUPERSEDED 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 in the first section of the National 
     Security Act of 1947 is amended--
       (1) by striking the items relating to sections 102 through 
     105 and inserting the following new items:

``Sec. 101A. Joint Intelligence Community Council.
``Sec. 102.  Director of National Intelligence.
``Sec. 102A. Responsibilities and authorities of the Director of 
              National Intelligence.
``Sec. 103.  Office of the Director of National Intelligence.
``Sec. 103A. Deputy Directors of National Intelligence.
``Sec. 103B. National Intelligence Council.
``Sec. 103C. General Counsel.
``Sec. 103D. Civil Liberties Protection Officer.
``Sec. 103E. Director of Science and Technology.
``Sec. 103F. National Counterintelligence Executive.
``Sec. 104.  Central Intelligence Agency.
``Sec. 104A. Director of the Central Intelligence Agency.
``Sec. 105.  Responsibilities of the Secretary of Defense pertaining to 
              the National Intelligence Program.'';

       (2) by striking the item relating to section 111;
       (3) by striking the item relating to section 114 and 
     inserting the following new item:

``Sec. 114.  Additional annual reports from the Director of National 
              Intelligence.'';

       (4) by inserting after the item relating to section 118 the 
     following new items:

``Sec. 119.  National Counterterrorism Center.
``Sec. 119A. National Counter Proliferation Center.
``Sec. 119B. National intelligence centers.

       (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.'';

     and
       (6) by inserting after the item relating to section 1001 
     the following new items:

``Sec. 1002.  Framework for cross-disciplinary education and training.
``Sec. 1003.  Intelligence Community Scholarship Program.''.

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

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

     SEC. 1078. AUTHORITY TO ESTABLISH INSPECTOR GENERAL FOR THE 
                   OFFICE OF THE DIRECTOR OF NATIONAL 
                   INTELLIGENCE.

       The Inspector General Act of 1978 (5 U.S.C. App.) is 
     amended by inserting after section 8J the following new 
     section:


    ``authority to establish inspector general of the office of the 
                   director of national intelligence

       ``Sec. 8K. If the Director of National Intelligence 
     determines that an Office of Inspector General would be 
     beneficial to improving the operations and effectiveness of 
     the Office of the Director of National Intelligence, the 
     Director of National Intelligence is authorized to establish, 
     with any of the duties, responsibilities, and authorities set 
     forth in this Act, an Office of Inspector General.''.

     SEC. 1079. 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 Office of the Director of National 
     Intelligence; 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 
     Director of National Intelligence, the Director of National 
     Intelligence 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 Director of National 
     Intelligence,'' before ``the Central Intelligence Agency''.

     SEC. 1080. CONSTRUCTION OF AUTHORITY OF DIRECTOR OF NATIONAL 
                   INTELLIGENCE TO ACQUIRE AND MANAGE PROPERTY AND 
                   SERVICES.

       Section 113(e) of title 40, United States Code, is 
     amended--
       (1) in paragraph (18), by striking ``or'' at the end;
       (2) in paragraph (19), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(20) the Office of the Director of National 
     Intelligence.''.

     SEC. 1081. 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 Director of National Intelligence.
       (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 Director 
     of National Intelligence.
  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 Director of National Intelligence such staff of the 
     Community Management Staff as of the date of the enactment of 
     this Act as the Director of National Intelligence determines 
     to be appropriate, including all functions and activities 
     discharged by the Community Management Staff as of that date.
       (b) Administration.--The Director of National Intelligence 
     shall administer the Community Management Staff after the 
     date of the enactment of this Act as a component of the 
     Office of the Director of National Intelligence under section 
     103 of the National Security Act of 1947, as amended by 
     section 1011(a) of this Act.

     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) or its successor entity, including all 
     functions and activities discharged by the Terrorist Threat 
     Integration Center or its successor entity 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) of 
     this Act.

[[Page H10947]]

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

       (a) Termination.--The positions referred to in subsection 
     (b) are hereby abolished.
       (b) Covered Positions.--The positions 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.

       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 Director of National Intelligence pursuant to this title.
       (2) Any consolidation, reorganization, or streamlining of 
     activities transferred to the Director of National 
     Intelligence pursuant to this title.
       (3) The establishment of offices within the Office of the 
     Director of National Intelligence to implement the duties and 
     responsibilities of the Director of National Intelligence 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 Director of National 
     Intelligence.
       (5) Recommendations for additional legislative or 
     administrative action as the President considers appropriate.

     SEC. 1095. DIRECTOR OF NATIONAL INTELLIGENCE REPORT ON 
                   IMPLEMENTATION OF INTELLIGENCE COMMUNITY 
                   REFORM.

       (a) Report.--Not later than one year after the effective 
     date of this Act, the Director of National Intelligence shall 
     submit to the congressional intelligence committees a report 
     on the progress made in the implementation of this title, 
     including the amendments made by this title. 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.
       (b) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

     SEC. 1096. TRANSITIONAL AUTHORITIES.

       (a) In General.--Upon the request of the Director of 
     National Intelligence, the head of any executive agency may, 
     on a reimbursable basis, provide services or detail personnel 
     to the Director of National Intelligence.
       (b) Transfer of Personnel.--In addition to any other 
     authorities available under law for such purposes, in the 
     fiscal year after the effective date of this Act, the 
     Director of National Intelligence--
       (1) is authorized within the Office of the Director of 
     National Intelligence 500 new personnel billets; and
       (2) with the approval of the Director of the Office of 
     Management and Budget, may detail not more than 150 personnel 
     funded within the National Intelligence Program to the Office 
     of the Director of National Intelligence for a period of not 
     more than 2 years.

     SEC. 1097. 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 not later than six months after the date of 
     the enactment of this Act.
       (b) Specific Effective Dates.--(1)(A) Not later than 60 
     days after the date of the appointment of the first Director 
     of National Intelligence, the Director of National 
     Intelligence shall first appoint individuals to positions 
     within the Office of the Director of National Intelligence.
       (B) Subparagraph (A) shall not apply with respect to the 
     Principal Deputy Director of National Intelligence.
       (2) Not later than 180 days after the effective date of 
     this Act, the President shall transmit to Congress the 
     implementation plan required by section 1094.
       (3) Not later than one year after the date of the enactment 
     of this Act, the Director of National Intelligence 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) of this 
     Act.
                       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.

     SEC. 1102. EXTENSION AND IMPROVEMENT OF AUTHORITIES OF PUBLIC 
                   INTEREST DECLASSIFICATION BOARD.

       (a) Direction.--Section 703(a) of the Public Interest 
     Declassification Act of 2000 (title VII of Public Law 106-
     567; 114 Stat. 2856; 50 U.S.C. 435 note) is amended--
       (1) by inserting ``(1)'' after ``Establishment.--''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Board shall report directly to the President or, 
     upon designation by the President, the Vice President, the 
     Attorney General, or other designee of the President. The 
     other designee of the President under this paragraph may not 
     be an agency head or official authorized to classify 
     information under Executive Order 12958, or any successor 
     order.''.
       (b) Purposes.--Section 703(b) of that Act (114 Stat. 2856) 
     is amended by adding at the end the following new paragraph:
       ``(5) To review and make recommendations to the President 
     in a timely manner with respect to any congressional request, 
     made by the committee of jurisdiction, to declassify certain 
     records or to reconsider a declination to declassify specific 
     records.''.
       (c) Recommendations on Special Searches.--Section 
     704(c)(2)(A) of that Act (114 Stat. 2860) is amended by 
     inserting before the period the following: ``, and also 
     including specific requests for the declassification of 
     certain records or for the reconsideration of declinations to 
     declassify specific records''.
       (d) Declassification Reviews.--Section 704 of that Act (114 
     Stat. 2859) is further amended by adding at the end the 
     following new subsection:
       ``(e) Declassification Reviews.--If requested by the 
     President, the Board shall review in a timely manner certain 
     records or declinations to declassify specific records, the 
     declassification of which has been the subject of specific 
     congressional request described in section 703(b)(5).''.
       (e) Notification of Review.--Section 706 of that Act (114 
     Stat. 2861) is amended by adding at the end the following new 
     subsection:
       ``(f) Notification of Review.--In response to a specific 
     congressional request for declassification review described 
     in section 703(b)(5), the Board shall advise the originators 
     of the request in a timely manner whether the Board intends 
     to conduct such review.''.
       (f) Extension.--Section 710(b) of that Act (114 Stat. 2864) 
     is amended by striking ``4 years'' and inserting ``8 years''.

     SEC. 1103. 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 those to which such provision is held invalid shall not 
     be affected thereby.
               TITLE II--FEDERAL BUREAU OF INVESTIGATION

     SEC. 2001. 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, 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, analysts, and related personnel of the 
     Bureau; and
       (B) in furtherance of the requirement under subparagraph 
     (A) and to the maximum extent practicable, afford agents, 
     analysts, and related personnel of the Bureau the opportunity 
     to work in the career specialty selected by such agents, 
     analysts, and related personnel over their entire career with 
     the Bureau.
       (5) The Director shall carry out a program to enhance the 
     capacity of the Bureau to recruit

[[Page H10948]]

     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.
       (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) Discharge of Improvements.--(1) The Director of the 
     Federal Bureau of Investigation shall carry out subsections 
     (b) through (d) through the head of the Directorate of 
     Intelligence of the Federal Bureau of Investigation.
       (2) The Director of the Federal Bureau of Investigation 
     shall carry out subsections (b) through (d) under the joint 
     guidance of the Attorney General and the National 
     Intelligence Director in a manner consistent with section 
     112(e).
       (f) Budget Matters.--The Director of the Federal Bureau of 
     Investigation shall, establish a budget structure of the 
     Federal Bureau of Investigation to reflect the four principal 
     missions of the Bureau as follows:
       (1) Intelligence.
       (2) Counterterrorism and counterintelligence.
       (3) Criminal Enterprises/Federal Crimes.
       (4) Criminal justice services.
       (g) 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. 2002. DIRECTORATE OF INTELLIGENCE OF THE FEDERAL BUREAU 
                   OF INVESTIGATION.

       (a) Directorate of Intelligence of Federal Bureau of 
     Investigation.--The element of the Federal Bureau of 
     Investigation known as of the date of the enactment of this 
     Act as the Office of Intelligence is hereby redesignated as 
     the Directorate of Intelligence of the Federal Bureau of 
     Investigation.
       (b) Head of Directorate.--The head of the Directorate of 
     Intelligence shall be the Executive Assistant Director for 
     Intelligence of the Federal Bureau of Investigation.
       (c) Responsibilities.--The Directorate of Intelligence 
     shall be responsible for the following:
       (1) Supervision of all national intelligence programs, 
     projects, and activities of the Bureau.
       (2) The discharge by the Bureau of the requirements in 
     section 105B of the National Security Act of 1947 (50 U.S.C. 
     403-5b).
       (3) The oversight of Bureau field intelligence operations.
       (4) Coordinating human source development and management by 
     the Bureau.
       (5) Coordinating collection by the Bureau against 
     nationally-determined intelligence requirements.
       (6) Strategic analysis.
       (7) Intelligence program and budget management.
       (8) The intelligence workforce.
       (9) Any other responsibilities specified by the Director of 
     the Federal Bureau of Investigation or specified by law.
       (d) Staff.--The Directorate of Intelligence shall consist 
     of such staff as the Director of the Federal Bureau of 
     Investigation considers appropriate for the activities of the 
     Directorate.

     SEC. 2003. FEDERAL BUREAU OF INVESTIGATION INTELLIGENCE 
                   CAREER SERVICE.

       (a) Establishment of Federal Bureau of Investigation 
     Intelligence Career Service.--The Director of the Federal 
     Bureau of Investigation may--
       (1) in consultation with the Director of the Office of 
     Personnel Management--
       (A) establish positions for intelligence analysts, and 
     prescribe standards and procedures for establishing and 
     classifying such positions, without regard to chapter 51 of 
     title 5, United States Code; and
       (B) 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) appoint individuals to such positions; and
       (3) establish a performance management system for such 
     individuals with at least one level of performance above a 
     retention standard.
       (b) 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 the appropriate committees of Congress.
       (c) 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 the appropriate 
     committees of Congress.
       (d) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress 
     means''--
       (1) the Committees on Appropriations, Homeland Security and 
     Governmental Affairs, and the Judiciary and the Select 
     Committee on Intelligence of the Senate; and
       (2) the Committees on Appropriations, Government Reform, 
     and the Judiciary and the Permanent Select Committee on 
     Intelligence of the House of Representatives.

     SEC. 2004. 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. 2005. FEDERAL BUREAU OF INVESTIGATION 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 Federal Bureau of Investigation may not grant more 
     than 50 exemptions in any fiscal year in accordance with the 
     preceding sentence, and the authority to grant such 
     exemptions shall cease to be available after September 30, 
     2007.''.
       (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 Federal Bureau of Investigation may not grant more 
     than 50 exemptions in any fiscal year in accordance with the 
     preceding sentence, and the authority to grant such 
     exemptions shall cease to be available after September 30, 
     2007.''.

[[Page H10949]]

     SEC. 2006. FEDERAL BUREAU OF INVESTIGATION USE OF 
                   TRANSLATORS.

       Not later than 30 days after the date of the enactment of 
     this Act, and annually thereafter, the Attorney General of 
     the United States shall submit to the Committee on the 
     Judiciary of the Senate and the Committee on the Judiciary of 
     the House of Representatives a report that contains, with 
     respect to each preceding 12-month period--
       (1) the number of translators employed, or contracted for, 
     by the Federal Bureau of Investigation or other components of 
     the Department of Justice;
       (2) any legal or practical impediments to using translators 
     employed by the Federal, State, or local agencies on a full-
     time, part-time, or shared basis;
       (3) the needs of the Federal Bureau of Investigation for 
     the specific translation services in certain languages, and 
     recommendations for meeting those needs;
       (4) the status of any automated statistical reporting 
     system, including implementation and future viability;
       (5) the storage capabilities of the digital collection 
     system or systems utilized;
       (6) a description of the establishment and compliance with 
     audio retention policies that satisfy the investigative and 
     intelligence goals of the Federal Bureau of Investigation; 
     and
       (7) a description of the implementation of quality control 
     procedures and mechanisms for monitoring compliance with 
     quality control procedures.
                     TITLE III--SECURITY CLEARANCES

     SEC. 3001. SECURITY CLEARANCES.

       (a) Definitions.--In this section:
       (1) The term ``agency'' means--
       (A) an executive agency (as that term is defined in section 
     105 of title 5, United States Code);
       (B) a military department (as that term is defined in 
     section 102 of title 5, United States Code); and
       (C) an element of the intelligence community.
       (2) The term ``authorized investigative agency'' means an 
     agency designated by the head of the agency selected pursuant 
     to subsection (b) 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.
       (3) The term ``authorized adjudicative agency'' means an 
     agency authorized by law, regulation, or direction of the 
     Director of National Intelligence to determine eligibility 
     for access to classified information in accordance with 
     Executive Order 12968.
       (4) The term ``highly sensitive program'' means--
       (A) a government program designated as a Special Access 
     Program (as that term is defined in section 4.1(h) of 
     Executive Order 12958 or any successor Executive order); or
       (B) a government program that applies restrictions required 
     for--
       (i) restricted data (as that term is defined in 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''.
       (5) 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.
       (6) 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.
       (7) The term ``periodic reinvestigations'' means 
     investigations conducted for the purpose of updating a 
     previously completed background investigation--
       (A) every 5 years in the case of a top secret clearance or 
     access to a highly sensitive program;
       (B) every 10 years in the case of a secret clearance; or
       (C) every 15 years in the case of a Confidential Clearance.
       (8) The term ``appropriate committees of Congress'' means--
       (A) the Permanent Select Committee on Intelligence and the 
     Committees on Armed Services, Homeland Security, Government 
     Reform, and the Judiciary of the House of Representatives; 
     and
       (B) the Select Committee on Intelligence and the Committees 
     on Armed Services, Homeland Security and Governmental 
     Affairs, and the Judiciary of the Senate.
       (b) Selection of Entity.--Not later than 90 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 be responsible for--
       (1) directing day-to-day oversight of investigations and 
     adjudications for personnel security clearances, including 
     for highly sensitive programs, throughout the United States 
     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;
       (4) ensuring reciprocal recognition of access to classified 
     information among the agencies of the United States 
     Government, including acting as the final authority to 
     arbitrate and resolve disputes involving the reciprocity of 
     security clearances and access to highly sensitive programs 
     pursuant to subsection (d);
       (5) ensuring, to the maximum extent practicable, that 
     sufficient resources are available in each agency to achieve 
     clearance and investigative program goals; and
       (6) reviewing and coordinating the development of tools and 
     techniques for enhancing the conduct of investigations and 
     granting of clearances.
       (c) Performance of Security Clearance Investigations.--(1) 
     Notwithstanding any other provision of law, not later than 
     180 days after the date of the enactment of this Act, the 
     President shall, in consultation with the head of the entity 
     selected pursuant to subsection (b), select a single agency 
     of the executive branch to conduct, to the maximum extent 
     practicable, 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. The head of the entity selected 
     pursuant to subsection (b) may designate other agencies to 
     conduct such investigations if the head of the entity 
     selected pursuant to subsection (b) considers it appropriate 
     for national security and efficiency purposes.
       (2) The agency 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, integrate reporting of security 
     clearance applications, security clearance investigations, 
     and determinations of eligibility for security clearances, 
     with the database required by subsection (e); and
       (C) ensure that security clearance investigations are 
     conducted in accordance with uniform standards and 
     requirements established under subsection (b), including 
     uniform security questionnaires and financial disclosure 
     requirements.
       (d) Reciprocity of Security Clearance and Access 
     Determinations.--(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.
       (3)(A) 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 without the approval of the head of 
     the entity selected pursuant to subsection (b).
       (B) Notwithstanding subparagraph (A), the head of the 
     entity selected pursuant to subsection (b) may establish such 
     additional requirements as the head of such entity considers 
     necessary for national security purposes.
       (4) 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.
       (5) The head of the entity selected pursuant to subsection 
     (b) may disallow the reciprocal recognition of an individual 
     security clearance by an agency under this section on a case-
     by-case basis if the head of the entity selected pursuant to 
     subsection (b) determines that such action is necessary for 
     national security purposes.
       (6) The head of the entity selected pursuant to subsection 
     (b) shall establish a review procedure by which agencies can 
     seek review of actions required under this section.
       (e) Database on Security Clearances.--(1) Not later than 12 
     months after the date of the enactment of this Act, the 
     Director of the Office of Personnel Management shall, in 
     cooperation with the heads of the entities selected pursuant 
     to subsections (b) and (c), establish and commence operating 
     and maintaining an integrated, secure, 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.
       (2) The database under this subsection shall function to 
     integrate information from existing Federal clearance 
     tracking systems from other authorized investigative and 
     adjudicative agencies into a single consolidated database.
       (3) Each authorized investigative or adjudicative agency 
     shall check the database under this subsection 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.
       (4) The head of the entity selected pursuant to subsection 
     (b) shall evaluate the extent to which an agency is 
     submitting information to, and requesting information from, 
     the database under

[[Page H10950]]

     this subsection as part of a determination of whether to 
     certify the agency as an authorized investigative agency or 
     authorized adjudicative agency.
       (5) The head of the entity selected pursuant to subsection 
     (b) may authorize an agency to withhold information about 
     certain individuals from the database under this subsection 
     if the head of the entity considers it necessary for national 
     security purposes.
       (f) Evaluation of Use of Available Technology in Clearance 
     Investigations and Adjudications.--(1) The head of the entity 
     selected pursuant to subsection (b) shall evaluate the use of 
     available information technology and databases to expedite 
     investigative and adjudicative processes for all and to 
     verify standard information submitted as part of an 
     application for a security clearance.
       (2) The evaluation shall assess the application of the 
     technologies described in paragraph (1) for--
       (A) granting interim clearances to applicants at the 
     secret, top secret, and special access program levels before 
     the completion of the appropriate full investigation;
       (B) expediting investigations and adjudications of security 
     clearances, including verification of information submitted 
     by the applicant;
       (C) ongoing verification of suitability of personnel with 
     security clearances in effect for continued access to 
     classified information;
       (D) use of such technologies to augment periodic 
     reinvestigations;
       (E) assessing the impact of the use of such technologies on 
     the rights of applicants to the verify, correct, or challenge 
     information obtained through such technologies; and
       (F) such other purposes as the head of the entity selected 
     pursuant to subsection (b) considers appropriate.
       (3) An individual subject to verification utilizing the 
     technology described in paragraph (1) shall be notified of 
     such verification, shall provide consent to such use, and 
     shall have access to data being verified in order to correct 
     errors or challenge information the individual believes is 
     incorrect.
       (4) Not later than one year after the date of the enactment 
     of this Act, the head of the entity selected pursuant to 
     subsection (b) shall submit to the President and the 
     appropriate committees of Congress a report on the results of 
     the evaluation, including recommendations on the use of 
     technologies described in paragraph (1).
       (g) Reduction in Length of Personnel Security Clearance 
     Process.--(1) The head of the entity selected pursuant to 
     subsection (b) shall, within 90 days of selection under that 
     subsection, develop, in consultation with the appropriate 
     committees of congress and each authorized adjudicative 
     agency, a plan to reduce the length of the personnel security 
     clearance process.
       (2)(A) To the extent practical the plan under paragraph (1) 
     shall require that each authorized adjudicative agency make a 
     determination on at least 90 percent of all applications for 
     a personnel security clearance within an average of 60 days 
     after the date of receipt of the completed application for a 
     security clearance by an authorized investigative agency. 
     Such 60-day average period shall include--
       (i) a period of not longer than 40 days to complete the 
     investigative phase of the clearance review; and
       (ii) a period of not longer than 20 days to complete the 
     adjudicative phase of the clearance review.
       (B) Determinations on clearances not made within 60 days 
     shall be made without delay.
       (3)(A) The plan under paragraph (1) shall take effect 5 
     years after the date of the enactment of this Act.
       (B) During the period beginning on a date not later than 2 
     years after the date after the enactment of this Act and 
     ending on the date on which the plan under paragraph (1) 
     takes effect, each authorized adjudicative agency shall make 
     a determination on at least 80 percent of all applications 
     for a personnel security clearance pursuant to this section 
     within an average of 120 days after the date of receipt of 
     the application for a security clearance by an authorized 
     investigative agency. Such 120-day average period shall 
     include--
       (i) a period of not longer than 90 days to complete the 
     investigative phase of the clearance review; and
       (ii) a period of not longer than 30 days to complete the 
     adjudicative phase of the clearance review.
       (h) Reports.--(1) Not later than February 15, 2006, and 
     annually thereafter through 2011, the head of the entity 
     selected pursuant to subsection (b) shall submit to the 
     appropriate committees of Congress a report on the progress 
     made during the preceding year toward meeting the 
     requirements of this section.
       (2) Each report shall include, for the period covered by 
     such report--
       (A) the periods of time required by the authorized 
     investigative agencies and authorized adjudicative agencies 
     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;
       (B) a discussion of any impediments to the smooth and 
     timely functioning of the requirements of this section; and
       (C) such other information or recommendations as the head 
     of the entity selected pursuant to subsection (b) considers 
     appropriate.
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary for fiscal 
     year 2005 and each fiscal year thereafter for the 
     implementation, maintenance, and operation of the database 
     required by subsection (e).
                   TITLE IV--TRANSPORTATION SECURITY
       Subtitle A--National Strategy for Transportation Security

     SEC. 4001. NATIONAL STRATEGY FOR TRANSPORTATION SECURITY.

       (a) In General.--Section 114 of title 49, United States 
     Code, is amended by adding at the end the following:
       ``(t) Transportation Security Strategic Planning.--
       ``(1) In general.--The Secretary of Homeland Security shall 
     develop, prepare, implement, and update, as needed--
       ``(A) a National Strategy for Transportation Security; and
       ``(B) transportation modal security plans.
       ``(2) Role of Secretary of transportation.--The Secretary 
     of Homeland Security shall work jointly with the Secretary of 
     Transportation in developing, revising, and updating the 
     documents required by paragraph (1).
       ``(3) Contents of national strategy for transportation 
     security.--The National Strategy for Transportation Security 
     shall include the following:
       ``(A) An identification and evaluation of the 
     transportation assets in the United States that, in the 
     interests of national security and commerce, must be 
     protected from attack or disruption by terrorist or other 
     hostile forces, including modal security plans for aviation, 
     bridge and tunnel, commuter rail and ferry, highway, 
     maritime, pipeline, rail, mass transit, over-the-road bus, 
     and other public transportation infrastructure assets that 
     could be at risk of such an attack or disruption.
       ``(B) The development of risk-based priorities across all 
     transportation modes and realistic deadlines for addressing 
     security needs associated with those assets referred to in 
     subparagraph (A).
       ``(C) The most appropriate, practical, and cost-effective 
     means of defending those assets against threats to their 
     security.
       ``(D) A forward-looking strategic plan that sets forth the 
     agreed upon roles and missions of Federal, state, regional, 
     and local authorities and establishes mechanisms for 
     encouraging private sector cooperation and participation in 
     the implementation of such plan.
       ``(E) A comprehensive delineation of response and recovery 
     responsibilities and issues regarding threatened and executed 
     acts of terrorism within the United States.
       ``(F) A prioritization of research and development 
     objectives that support transportation security needs, giving 
     a higher priority to research and development directed toward 
     protecting vital transportation assets.
       ``(4) Submissions of plans to congress.--
       ``(A) Initial strategy.--The Secretary of Homeland Security 
     shall submit the National Strategy for Transportation 
     Security, including the transportation modal security plans, 
     developed under this subsection to the appropriate 
     congressional committees not later than April 1, 2005.
       ``(B) Subsequent versions.--After December 31, 2005, the 
     Secretary of Homeland Security shall submit the National 
     Strategy for Transportation Security, including the 
     transportation modal security plans and any revisions to the 
     National Strategy for Transportation Security and the 
     transportation modal security plans, to appropriate 
     congressional committees not less frequently than April 1 of 
     each even-numbered year.
       ``(C) Periodic progress report.--
       ``(i) 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 the appropriate 
     congressional committees an assessment of the progress made 
     on implementing the National Strategy for Transportation 
     Security.
       ``(ii) Content.--Each progress report under this 
     subparagraph shall include, at a minimum, recommendations for 
     improving and implementing the National Strategy for 
     Transportation Security and the transportation modal security 
     plans that the Secretary, in consultation with the Secretary 
     of Transportation, considers appropriate.
       ``(D) Classified material.--Any part of the National 
     Strategy for Transportation Security or the transportation 
     modal security plans that involve information that is 
     properly classified under criteria established by Executive 
     order shall be submitted to the appropriate congressional 
     committees separately in a classified format.
       ``(E) Appropriate congressional committees defined.--In 
     this subsection, the term ``appropriate congressional 
     committees'' means the Committee on Transportation and 
     Infrastructure and the Select Committee on Homeland Security 
     of the House of Representatives and the Committee on 
     Commerce, Science, and Transportation and the Committee on 
     Homeland Security and Governmental Affairs of the Senate.
       ``(5) Priority Status.--
       ``(A) In general.--The National Strategy for Transportation 
     Security shall be the governing document for Federal 
     transportation security efforts.
       ``(B) Other plans and reports.--The National Strategy for 
     Transportation Security shall include, as an integral part or 
     as an appendix--
       ``(i) the current National Maritime Transportation Security 
     Plan under section 70103 of title 46;
       ``(ii) the report required by section 44938 of this title;
       ``(iii) transportation modal security plans required under 
     this section; and
       ``(iv) any other transportation security plan or report 
     that the Secretary of Homeland Security determines 
     appropriate for inclusion.''.

[[Page H10951]]

       (b) Aviation Security Planning; Operational Criteria.--
     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) Modal Security Plan for Aviation.--In addition to the 
     requirements set forth in subparagraphs (B) through (F) of 
     section 114(t)(3), the modal security plan for aviation 
     prepared under section 114(t) shall--
       ``(1) establish a damage mitigation and recovery plan for 
     the aviation system in the event of a terrorist attack; and
       ``(2) 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.
       ``(d) Operational Criteria.--Not later than 90 days after 
     the date of the submission of the National Strategy for 
     Transportation Security under section 114(t)(4)(A), 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 section 
     114(t)(1) and shall approve best practices guidelines for 
     airport assets.''.
                     Subtitle B--Aviation Security

     SEC. 4011. PROVISION FOR THE USE OF BIOMETRIC OR OTHER 
                   TECHNOLOGY.

       (a) Use of Biometric Identifier 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 March 31, 2005, 
     guidance for''; and
       (2) by adding at the end the following:
       ``(5) Use of biometric technology in airport access control 
     systems.--In issuing guidance under paragraph (4)(E), the 
     Assistant Secretary of Homeland Security (Transportation 
     Security Administration) in consultation with representatives 
     of the aviation industry, the biometric identifier 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 
     biometric identifier technology in airport access control 
     systems (including airport perimeter access control systems) 
     to ensure that the biometric identifier systems are 
     effective, reliable, and secure;
       ``(B) a list of products and vendors that meet the 
     requirements and standards set forth in subparagraph (A);
       ``(C) procedures for implementing biometric identifier 
     systems--
       ``(i) to ensure that individuals do not use an assumed 
     identity to enroll in a biometric identifier system; and
       ``(ii) to resolve failures to enroll, false matches, and 
     false non-matches; and
       ``(D) best practices for incorporating biometric identifier 
     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 biometric identifier technology and is 
     uniform across all Federal, State, local, tribal, and 
     territorial government law enforcement agencies;
       ``(ii) establish a process by which the travel credential 
     will be used to verify the identity of a Federal, State, 
     local, tribal, or territorial 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, local, tribal, 
     and territorial government law enforcement officers are 
     issued a law enforcement travel credential;
       ``(II) to resolve failures to enroll, false matches, and 
     false non-matches relating to use of the law enforcement 
     travel credential; and
       ``(III) to invalidate any law enforcement travel credential 
     that is lost, stolen, or no longer authorized for use;

       ``(iv) begin issuance of the travel credential to each 
     Federal, State, local, tribal, or territorial 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 Assistant Secretary considers appropriate.
       ``(B) Funding.--There is 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 identifier information.--The term 
     `biometric identifier information' means the distinct 
     physical or behavioral characteristics of an individual that 
     are used for unique identification, or verification of the 
     identity, of an individual.
       ``(B) Biometric identifier.--The term `biometric 
     identifier' 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 
     identifier 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 identifier 
     information, or other factors.
       ``(D) False match.--The term `false match' means the 
     incorrect matching of one individual's biometric identifier 
     information to another individual's biometric identifier 
     information by a biometric identifier system.
       ``(E) False non-match.--The term `false non-match' means 
     the rejection of a valid identity by a biometric identifier 
     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) Aviation Security Research and Development.--There is 
     authorized to be appropriated to the Secretary of Homeland 
     Security for the use of the Transportation Security 
     Administration $20,000,000, in addition to any amounts 
     otherwise authorized by law, for research and development of 
     advanced biometric technology applications to aviation 
     security, including mass identification technology.
       (c) Sense of Congress on Transfer of Technology.--It is the 
     sense of Congress that the national intelligence community 
     and the Department of Homeland Security should share 
     information on and technological advancements to biometric 
     systems, biometric technology, and biometric identifier 
     systems obtained through research and development programs 
     conducted by various Federal agencies.
       (d) Biometric Center of Excellence.--There is authorized to 
     be appropriated $1,000,000, in addition to any amounts 
     otherwise authorized by law, for the establishment of a 
     competitive center of excellence that will develop and 
     expedite the Federal Government's use of biometric 
     identifiers.

     SEC. 4012. ADVANCED AIRLINE PASSENGER PRESCREENING.

       (a) In General.--
       (1) Domestic flights.--Section 44903(j)(2) of title 49, 
     United States Code, is amended by adding at the end the 
     following:
       ``(C) Advanced airline passenger prescreening.--
       ``(i) Commencement of testing.--Not later than January 1, 
     2005, the Assistant Secretary of Homeland Security 
     (Transportation Security Administration), or the designee of 
     the Assistant Secretary, shall commence testing of an 
     advanced passenger prescreening system that will allow the 
     Department of Homeland Security to assume the performance of 
     comparing passenger information, as defined by the Assistant 
     Secretary, 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 
     begin to assume the performance of the passenger prescreening 
     function of comparing passenger information 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 (ii), the Assistant Secretary shall--

       ``(I) establish a procedure to enable airline passengers, 
     who are delayed or prohibited from boarding a flight because 
     the advanced 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 information.--Not later than 180 days 
     after the completion of the testing of the advanced passenger 
     prescreening system, the Assistant Secretary, by order or 
     interim final rule--

       ``(I) shall require air carriers to supply to the Assistant 
     Secretary the passenger information needed to begin 
     implementing the advanced passenger prescreening system; and
       ``(II) shall require entities that provide systems and 
     services to air carriers in the operation of air carrier 
     reservations systems to provide to air carriers passenger 
     information in possession of such entities, but only to the 
     extent necessary to comply with subclause (I).

       ``(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 granted unescorted access to the secure area 
     of an airport; or
       ``(iii) being granted unescorted access to the air 
     operations area (as defined in section 1540.5 of title 49, 
     Code of Federal Regulations, or any

[[Page H10952]]

     successor regulation to such section) of an airport.
       ``(E) Aircraft charter customer and lessee prescreening.--
       ``(i) In general.--Not later than 90 days after the date on 
     which the Assistant Secretary assumes the performance of the 
     advanced passenger prescreening function under subparagraph 
     (C)(ii), the Assistant Secretary shall establish a process by 
     which operators of aircraft to be used in charter air 
     transportation with a maximum takeoff weight greater than 
     12,500 pounds and lessors of aircraft with a maximum takeoff 
     weight greater than 12,500 pounds may--

       ``(I) request the Department of Homeland Security to use 
     the advanced passenger prescreening system to compare 
     information about any individual seeking to charter an 
     aircraft with a maximum takeoff weight greater than 12,500 
     pounds, any passenger proposed to be transported aboard such 
     aircraft, and any individual seeking to lease an aircraft 
     with a maximum takeoff weight greater than 12,500 pounds to 
     the automatic selectee and no fly lists, utilizing all 
     appropriate records in the consolidated and integrated 
     terrorist watchlist maintained by the Federal Government; and
       ``(II) refuse to charter or lease an aircraft with a 
     maximum takeoff weight greater than 12,500 pounds to or 
     transport aboard such aircraft any persons identified on such 
     watch list.

       ``(ii) Requirements.--The requirements of subparagraph 
     (C)(iii) shall apply to this subparagraph.
       ``(iii) No fly and automatic selectee lists.--The Secretary 
     of Homeland Security, in consultation with the Terrorist 
     Screening Center, shall design and review, as necessary, 
     guidelines, policies, and operating procedures for the 
     collection, removal, and updating of data maintained, or to 
     be maintained, in the no fly and automatic selectee lists.
       ``(F) Applicability.--Section 607 of the Vision 100--
     Century of Aviation Reauthorization Act (49 U.S.C. 44903 
     note; 117 Stat. 2568) shall not apply to the advanced 
     passenger prescreening system established under subparagraph 
     (C).
       ``(G) Appeal procedures.--
       ``(i) In general.--The Assistant Secretary shall establish 
     a timely and fair process for individuals identified as a 
     threat under one or more of subparagraphs (C), (D), and (E) 
     to appeal to the Transportation Security Administration the 
     determination and correct any erroneous information.
       ``(ii) Records.--The process shall include the 
     establishment of a method by which the Assistant Secretary 
     will be able to maintain a record of air passengers and other 
     individuals who have been misidentified and have corrected 
     erroneous information. To prevent repeated delays of 
     misidentified passengers and other individuals, the 
     Transportation Security Administration record shall contain 
     information determined by the Assistant Secretary to 
     authenticate the identity of such a passenger or individual.
       ``(H) 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).''.
       (2) International flights.--Section 44909(c) of title 49, 
     United States Code, is amended--
       (i) by striking ``paragraph (5),'' in paragraph (4) and 
     inserting ``paragraphs (5) and (6),''; and
       (ii) by adding at the end the following:
       ``(6) Prescreening international passengers.--
       ``(A) In general.--Not later than 60 days after date of 
     enactment of this paragraph, the Secretary of Homeland 
     Security, or the designee of the Secretary, shall issue a 
     notice of proposed rulemaking that will allow the Department 
     of Homeland Security to compare passenger information for any 
     international flight to or from the United States against the 
     consolidated and integrated terrorist watchlist maintained by 
     the Federal Government before departure of the flight.
       ``(B) Appeal procedures.--
       ``(i) In general.--The Secretary of Homeland Security shall 
     establish a timely and fair process for individuals 
     identified as a threat under subparagraph (A) to appeal to 
     the Department of Homeland Security the determination and 
     correct any erroneous information.
       ``(ii) Records.--The process shall include the 
     establishment of a method by which the Secretary will be able 
     to maintain a record of air passengers and other individuals 
     who have been misidentified and have corrected erroneous 
     information. To prevent repeated delays of misidentified 
     passengers and other individuals, the Department of Homeland 
     Security record shall contain information determined by the 
     Secretary to authenticate the identity of such a passenger or 
     individual.''.
       (b) Report on Effects on Privacy and Civil Liberties.--
       (1) Requirement for report.--Not later than 180 days after 
     the date of the enactment of this Act, the Security Privacy 
     Officer of the Department of Homeland Security shall submit a 
     report assessing the impact of the automatic selectee and no 
     fly lists on privacy and civil liberties to the Committee on 
     the Judiciary, the Committee on Homeland Security and 
     Governmental Affairs, and the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on the 
     Judiciary, the Committee on Government Reform, the Committee 
     on Transportation and Infrastructure, and the Select 
     Committee on Homeland Security of the House of 
     Representatives.
       (2) Content.--The report submitted under paragraph (1) 
     shall include--
       (A) any recommendations for practices, procedures, 
     regulations, or legislation that the Security Privacy Officer 
     considers necessary to minimize adverse effects of automatic 
     selectee and no fly lists on privacy, discrimination, due 
     process, and other civil liberties;
       (B) a discussion of the implications of applying those 
     lists to other modes of transportation; and
       (C) the effect that implementation of the recommendations 
     would have on the effectiveness of the use of such lists to 
     protect the United States against terrorist attacks.
       (3) Form.--To the greatest extent consistent with the 
     protection of law enforcement-sensitive information and 
     classified information, and the administration of applicable 
     law, the report shall be submitted in unclassified form and 
     shall be available to the public. The report may contain a 
     classified annex if necessary.
       (c) Report on Criteria for Consolidated Terrorist Watch 
     List.--
       (1) In general.--Within 180 days after the date of 
     enactment of this Act, the Director of National Intelligence, 
     in consultation with the Secretary of Homeland Security, the 
     Secretary of State, and the Attorney General, shall submit to 
     Congress a report on the Terrorist Screening Center 
     consolidated screening watch list.
       (2) Contents.--The report shall include--
       (A) the criteria for placing the name of an individual on 
     the watch list;
       (B) the minimum standards for reliability and accuracy of 
     identifying information;
       (C) the degree of information certainty and the range of 
     threat levels that are to be identified for an individual; 
     and
       (D) the range of applicable consequences that are to apply 
     to an individual, if located.
       (3) Form.--To the greatest extent consistent with the 
     protection of law enforcement-sensitive information and 
     classified information and the administration of applicable 
     law, the report shall be submitted in unclassified form and 
     shall be available to the public. The report may contain a 
     classified annex if necessary.

     SEC. 4013. DEPLOYMENT AND USE OF DETECTION EQUIPMENT AT 
                   AIRPORT SCREENING CHECKPOINTS.

       (a) In General.--Subchapter I of chapter 449, of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 44925. Deployment and use of detection equipment at 
       airport screening checkpoints.

       ``(a) Weapons and Explosives.--The Secretary of Homeland 
     Security shall give a high priority to developing, testing, 
     improving, and deploying, at airport screening checkpoints, 
     equipment that detects nonmetallic, chemical, biological, and 
     radiological weapons, and explosives, in all forms, on 
     individuals and in their personal property. The Secretary 
     shall ensure that the equipment alone, or as part of an 
     integrated system, can detect under realistic operating 
     conditions the types of 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 section, the Assistant Secretary of 
     Homeland Security (Transportation Security Administration) 
     shall submit to the appropriate congressional committees a 
     strategic plan to promote the optimal utilization and 
     deployment of explosive detection equipment at airports to 
     screen individuals and their personal property. Such 
     equipment includes walk-through explosive detection portals, 
     document scanners, shoe scanners, and backscatter x-ray 
     scanners. The plan may be submitted in a classified format.
       ``(2) Content.--The strategic plan shall include, at 
     minimum--
       ``(A) a description of current efforts to detect explosives 
     in all forms on individuals and in their personal property;
       ``(B) a description of the operational applications of 
     explosive detection equipment at airport screening 
     checkpoints;
       ``(C) a deployment schedule and a description of the 
     quantities of equipment needed to implement the plan;
       ``(D) a description of funding needs to implement the plan, 
     including a financing plan that provides for leveraging of 
     non-Federal funding;
       ``(E) a description of the measures taken and anticipated 
     to be taken in carrying out subsection (d); and
       ``(F) a description of any recommended legislative actions.
       ``(c) Portal Detection Systems.--There is authorized to be 
     appropriated to the Secretary of Homeland Security for the 
     use of the Transportation Security Administration 
     $250,000,000, in addition to any amounts otherwise authorized 
     by law, for research, development, and installation of 
     detection systems and other devices for the detection of 
     biological, chemical, radiological, and explosive materials.
       ``(d) Interim Action.--Until measures are implemented that 
     enable the screening of all passengers for explosives, the 
     Assistant Secretary shall provide, by such means as the 
     Assistant Secretary considers appropriate, explosives 
     detection screening for all passengers identified for 
     additional screening and their personal property that will be 
     carried aboard a passenger aircraft operated by an air 
     carrier or foreign air carrier in air transportation or 
     intrastate air transportation.''.
       (b) Conforming Amendment.--The analysis for chapter 449 of 
     title 49, United States Code, is amended by inserting after 
     the item relating to section 44924 the following:

``44925. Deployment and use of detection equipment at airport screening 
              checkpoints.''.

     SEC. 4014. ADVANCED AIRPORT CHECKPOINT SCREENING DEVICES.

       (a) Advanced Integrated Airport Checkpoint Screening System 
     Pilot Program.--Not

[[Page H10953]]

     later than March 31, 2005, the Assistant Secretary of 
     Homeland Security (Transportation Security Administration) 
     shall develop and initiate a pilot program to deploy and test 
     advanced airport checkpoint screening devices and technology 
     as an integrated system at not less than 5 airports in the 
     United States.
       (b) Funding.--Of the amounts appropriated pursuant to 
     section 48301(a) of title 49, United States Code, for each of 
     fiscal years 2005 and 2006, not more than $150,000,000 shall 
     be available to carry out subsection (a).

     SEC. 4015. IMPROVEMENT OF SCREENER JOB PERFORMANCE.

       (a) Required Action.--The Assistant Secretary of Homeland 
     Security (Transportation Security Administration) shall take 
     such action as may be necessary to improve the job 
     performance of airport screening personnel.
       (b) Human Factors Study.--In carrying out this section, the 
     Assistant Secretary shall provide, not later than 180 days 
     after the date of the enactment of this Act, to the 
     appropriate congressional committees a report on the results 
     of any human factors study conducted by the Department of 
     Homeland Security to better understand problems in screener 
     performance and to improve screener performance.

     SEC. 4016. FEDERAL AIR MARSHALS.

       (a) Federal Air Marshal Anonymity.--The Director of the 
     Federal Air Marshal Service of the Department of Homeland 
     Security shall continue operational initiatives to protect 
     the anonymity of Federal air marshals.
       (b) Authorization of Additional Appropriations.--There is 
     authorized to be appropriated to the Secretary of Homeland 
     Security for the use of the Bureau of Immigration and Customs 
     Enforcement, in addition to any amounts otherwise authorized 
     by law, for the deployment of Federal air marshals under 
     section 44917 of title 49, United States Code, $83,000,000 
     for the 3 fiscal-year period beginning with fiscal year 2005. 
     Such sums shall remain available until expended.
       (c) Federal Law Enforcement Counterterrorism Training.--
       (1) Availability of information.--The Assistant Secretary 
     for Immigration and Customs Enforcement and the Director of 
     Federal Air Marshal Service of the Department of Homeland 
     Security, shall make available, as practicable, appropriate 
     information on in-flight counterterrorism and weapons 
     handling procedures and tactics training to Federal law 
     enforcement officers who fly while in possession of a 
     firearm.
       (2) Identification of fraudulent documents.--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 a State that borders Canada or Mexico.

     SEC. 4017. INTERNATIONAL AGREEMENTS TO ALLOW MAXIMUM 
                   DEPLOYMENT OF FEDERAL AIR MARSHALS.

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

     SEC. 4018. FOREIGN 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 all appropriate 
     records in the consolidated and integrated terrorist 
     watchlists maintained by 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. 4019. IN-LINE CHECKED BAGGAGE SCREENING.

       (a) In-Line Baggage Screening Equipment.--The Assistant 
     Secretary of Homeland Security (Transportation Security 
     Administration) shall take such action as may be necessary to 
     expedite the installation and use of in-line baggage 
     screening equipment at airports at which screening is 
     required by section 44901 of title 49, United States Code.
       (b) Schedule.--Not later than 180 days after the date of 
     enactment of this Act, the Assistant Secretary shall submit 
     to the appropriate congressional committees a schedule to 
     expedite the installation and use of in-line baggage 
     screening equipment at such airports, with an estimate of the 
     impact that such equipment, facility modification, and 
     baggage conveyor placement will have on staffing needs and 
     levels related to aviation security.
       (c) Replacement of Trace-Detection Equipment.--Not later 
     than 180 days after the date of enactment of this Act, the 
     Assistant Secretary shall establish and submit to the 
     appropriate congressional committees a schedule for replacing 
     trace-detection equipment, as soon as practicable and where 
     appropriate, with explosive detection system equipment.
       (d) Cost-Sharing Study.--The Secretary of Homeland 
     Security, in consultation with representatives of air 
     carriers, airport operators, and other interested parties, 
     shall submit to the appropriate congressional committees, in 
     conjunction with the submission of the budget for fiscal year 
     2006 to Congress under section 1105(a) of title 31, United 
     States Code--
       (1) a proposed formula for cost-sharing among the Federal 
     Government, State and local governments, and the private 
     sector for projects to install in-line baggage screening 
     equipment that reflects the benefits that each of such 
     entities derive from such projects, including national 
     security benefits and labor and other cost savings;
       (2) recommendations, including recommended legislation, for 
     an equitable, feasible, and expeditious system for defraying 
     the costs of the in-line baggage screening equipment 
     authorized by this title; and
       (3) the results of a review of innovative financing 
     approaches and possible cost savings associated with the 
     installation of in-line baggage screening equipment at 
     airports.
       (e) Authorization for Expiring and New LOIs.--
       (1) In general.--Section 44923(i) of title 49, United 
     States Code, is amended by striking ``$250,000,000 for each 
     of fiscal years 2004 through 2007.'' and inserting 
     ``$400,000,000 for each of fiscal years 2005, 2006, and 
     2007.''.
       (2) Period of reimbursement.--Notwithstanding any other 
     provision of law, the Secretary may provide that the period 
     of reimbursement under any letter of intent may extend for a 
     period not to exceed 10 years after the date that the 
     Secretary issues such letter, subject to the availability of 
     appropriations. This paragraph applies to letters of intent 
     issued under section 44923 of title 49, United States Code, 
     and letters of intent issued under section 367 of the 
     Department of Transportation and Related Agencies 
     Appropriation Act, 2003 (49 U.S.C. 47110 note).

     SEC. 4020. CHECKED BAGGAGE SCREENING AREA MONITORING.

       (a) In General.--The Under Secretary for Border and 
     Transportation Security of the Department of Homeland 
     Security shall provide, subject to the availability of funds, 
     assistance to airports at which screening is required by 
     section 44901 of title 49, United States Code, and that have 
     checked baggage screening areas that are not open to public 
     view in the acquisition and installation of security 
     monitoring cameras for surveillance of such areas in order to 
     deter theft from checked baggage and to aid in the speedy 
     resolution of liability claims against the Transportation 
     Security Administration.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Homeland Security for 
     fiscal year 2005 such sums as may be necessary to carry out 
     this section. Such sums shall remain available until 
     expended.

     SEC. 4021. WIRELESS COMMUNICATION.

       (a) Study.--The Assistant Secretary of Homeland Security 
     (Transportation Security Administration), in consultation 
     with the Administrator of 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. 4022. IMPROVED PILOT LICENSES.

       (a) In General.--Not later than one year after the date of 
     enactment of this Act, the Administrator of the Federal 
     Aviation Administration shall begin to issue improved pilot 
     licenses consistent with the requirements of title 49, United 
     States Code, and title 14, Code of Federal Regulations.
       (b) Requirements.--Improved pilots licenses issued under 
     subsection (a) shall--
       (1) be resistant to tampering, alteration, and 
     counterfeiting;
       (2) include a photograph of the individual to whom the 
     license is issued; and
       (3) be capable of accommodating a digital photograph, a 
     biometric identifier, or any other unique identifier that the 
     Administrator considers necessary.
       (c) Tampering.--To the extent practical, the Administrator 
     shall develop methods to determine or reveal whether any 
     component or security feature of a license issued under 
     subsection (a) has been tampered, altered, or counterfeited.
       (d) Use of Designees.--The Administrator may use designees 
     to carry out subsection (a) to the extent feasible in order 
     to minimize the burdens on pilots.

     SEC. 4023. AVIATION SECURITY STAFFING.

       (a) Aviation Security Staffing.--Not later than 90 days 
     after the date of enactment of this Act, the Assistant 
     Secretary of Homeland Security (Transportation Security 
     Administration) shall develop and submit to the appropriate 
     congressional committees standards for determining the 
     aviation security staffing for all airports at which 
     screening is required under section 44901 of title 49, United 
     States Code, necessary to--

[[Page H10954]]

       (1) provide necessary levels of aviation security; and
       (2) ensure that the average aviation security-related delay 
     experienced by airline passengers is minimized.
       (b) GAO Analysis.--As soon as practicable after the date on 
     which the Assistant Secretary has developed standards under 
     subsection (a), the Comptroller General shall conduct an 
     expedited analysis of, and submit a report to the appropriate 
     congressional committees on, the standards for effectiveness, 
     administrability, ease of compliance, and consistency with 
     the requirements of existing law.
       (c) Integration of Federal Airport Workforce and Aviation 
     Security.--The Secretary of Homeland Security shall conduct a 
     study of the feasibility of combining operations of Federal 
     employees involved in screening at commercial airports and 
     aviation security-related functions under the authority of 
     the Department of Homeland Security in order to coordinate 
     security-related activities, increase the efficiency and 
     effectiveness of those activities, and increase commercial 
     air transportation security.

     SEC. 4024. IMPROVED EXPLOSIVE DETECTION SYSTEMS.

       (a) Plan and guidelines.--The Assistant Secretary of 
     Homeland Security (Transportation Security Administration) 
     shall develop a plan and guidelines for implementing improved 
     explosive detection system equipment.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Homeland Security for 
     the use of the Transportation Security Administration 
     $100,000,000, in addition to any amounts otherwise authorized 
     by law, for the purpose of research and development of 
     improved explosive detection systems for aviation security 
     under section 44913 of title 49, United States Code.

     SEC. 4025. PROHIBITED ITEMS LIST.

       Not later than 60 days after the date of enactment of this 
     Act, the Assistant Secretary for Homeland Security 
     (Transportation Security Administration) shall complete a 
     review of the list of items prohibited from being carried 
     aboard a passenger aircraft operated by an air carrier or 
     foreign air carrier in air transportation or intrastate air 
     transportation set forth in section 1540 of title 49, Code of 
     Federal Regulations, and shall release a revised list that 
     includes--
       (1) butane lighters; and
       (2) any other modification that the Assistant Secretary 
     considers appropriate.

     SEC. 4026. MAN-PORTABLE AIR DEFENSE SYSTEMS (MANPADS).

       (a) United States Policy on Nonproliferation and Export 
     Control.--
       (1) To limit availability and transfer of manpads.--The 
     President shall pursue, on an urgent basis, further strong 
     international diplomatic and cooperative efforts, including 
     bilateral and multilateral treaties, in the appropriate forum 
     to limit the availability, transfer, and proliferation of 
     MANPADSs worldwide.
       (2) To limit the proliferation of manpads.--The President 
     is encouraged to seek to enter into agreements with the 
     governments of foreign countries that, at a minimum, would--
       (A) prohibit the entry into force of a MANPADS 
     manufacturing license agreement and MANPADS co-production 
     agreement, other than the entry into force of a manufacturing 
     license or co-production agreement with a country that is 
     party to such an agreement;
       (B) prohibit, except pursuant to transfers between 
     governments, the export of a MANPADS, including any 
     component, part, accessory, or attachment thereof, without an 
     individual validated license; and
       (C) prohibit the reexport or retransfer of a MANPADS, 
     including any component, part, accessory, or attachment 
     thereof, to a third person, organization, or government 
     unless the written consent of the government that approved 
     the original export or transfer is first obtained.
       (3) To achieve destruction of manpads.--The President 
     should continue to pursue further strong international 
     diplomatic and cooperative efforts, including bilateral and 
     multilateral treaties, in the appropriate forum to assure the 
     destruction of excess, obsolete, and illicit stocks of 
     MANPADSs worldwide.
       (4) Reporting and briefing requirement.--
       (A) President's report.--Not later than 180 days after the 
     date of enactment of this Act, the President shall transmit 
     to the appropriate congressional committees a report that 
     contains a detailed description of the status of diplomatic 
     efforts under paragraphs (1), (2), and (3) and of efforts by 
     the appropriate United States agencies to comply with the 
     recommendations of the General Accounting Office set forth in 
     its report GAO-04-519, entitled ``Nonproliferation: Further 
     Improvements Needed in U.S. Efforts to Counter Threats from 
     Man-Portable Air Defense Systems''.
       (B) Annual briefings.--Annually after the date of 
     submission of the report under subparagraph (A) and until 
     completion of the diplomatic and compliance efforts referred 
     to in subparagraph (A), the Secretary of State shall brief 
     the appropriate congressional committees on the status of 
     such efforts.
       (b) FAA Airworthiness Certification of Missile Defense 
     Systems for Commercial Aircraft.--
       (1) In general.--As soon as practicable, but not later than 
     the date of completion of Phase II of the Department of 
     Homeland Security's counter-man-portable air defense system 
     (MANPADS) development and demonstration program, the 
     Administrator of the Federal Aviation Administration shall 
     establish a process for conducting airworthiness and safety 
     certification of missile defense systems for commercial 
     aircraft certified as effective and functional by the 
     Department of Homeland Security. The process shall require a 
     certification by the Administrator that such systems can be 
     safely integrated into aircraft systems and ensure 
     airworthiness and aircraft system integrity.
       (2) Certification acceptance.--Under the process, the 
     Administrator shall accept the certification of the 
     Department of Homeland Security that a missile defense system 
     is effective and functional to defend commercial aircraft 
     against MANPADSs.
       (3) Expeditious certification.--Under the process, the 
     Administrator shall expedite the airworthiness and safety 
     certification of missile defense systems for commercial 
     aircraft certified by the Department of Homeland Security.
       (4) Reports.--Not later than 90 days after the first 
     airworthiness and safety certification for a missile defense 
     system for commercial aircraft is issued by the 
     Administrator, and annually thereafter until December 31, 
     2008, the Federal Aviation Administration shall transmit to 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate a report that 
     contains a detailed description of each airworthiness and 
     safety certification issued for a missile defense system 
     for commercial aircraft.
       (c) Programs to Reduce MANPADS.--
       (1) In general.--The President is encouraged to pursue 
     strong programs to reduce the number of MANPADSs worldwide so 
     that fewer MANPADSs will be available for trade, 
     proliferation, and sale.
       (2) Reporting and briefing requirements.--Not later than 
     180 days after the date of enactment of this Act, the 
     President shall transmit to the appropriate congressional 
     committees a report that contains a detailed description of 
     the status of the programs being pursued under subsection 
     (a). Annually thereafter until the programs are no longer 
     needed, the Secretary of State shall brief the appropriate 
     congressional committees on the status of programs.
       (3) Funding.--There is 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.

     SEC. 4027. TECHNICAL CORRECTIONS.

       (a) Administrative Imposition of Penalties.--Section 
     46301(d) of title 49, United States Code, is amended--
       (1) in the first sentence of paragraph (2) by striking 
     ``46302, 46303,'' and inserting ``46302 (for a violation 
     relating to section 46504),'';
       (2) in the second sentence of paragraph (2)--
       (A) by striking ``Under Secretary of Transportation for 
     Security'' and inserting ``Secretary of Homeland Security''; 
     and
       (B) by striking ``44909)'' and inserting ``44909), 46302 
     (except for a violation relating to section 46504), 46303,'';
       (3) in paragraphs (2), (3), and (4) by striking ``Under 
     Secretary or'' each place it occurs and inserting ``Secretary 
     of Homeland Security or''; and
       (4) in paragraph (4)(A) by moving clauses (i), (ii), and 
     (iii) 2 ems to the left.
       (b) Compromise and Setoff for False Information.--Section 
     46302(b)(1) of title 49, United States Code, is amended by 
     striking

[[Page H10955]]

     ``Secretary of Transportation'' and inserting ``Secretary of 
     Homeland Security and, for a violation relating to section 
     46504, the Secretary of Transportation,''.
       (c) Carrying a Weapon.--Section 46303 of title 49, United 
     States Code, is amended--
       (1) in subsection (b)(1) by striking ``Secretary of 
     Transportation'' and inserting ``Secretary of Homeland 
     Security''; and
       (2) in subsection (c)(2) by striking ``Under Secretary of 
     Transportation for Security'' and inserting ``Secretary of 
     Homeland Security''.

     SEC. 4028. REPORT ON SECONDARY FLIGHT DECK BARRIERS.

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

     SEC. 4029. EXTENSION OF AUTHORIZATION OF AVIATION SECURITY 
                   FUNDING.

       Section 48301(a) of title 49, United States Code, is 
     amended by striking ``and 2005'' and inserting ``2005, and 
     2006''.
                     Subtitle C--Air Cargo Security

     SEC. 4051. PILOT PROGRAM TO EVALUATE USE OF BLAST RESISTANT 
                   CARGO AND BAGGAGE CONTAINERS.

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

     SEC. 4052. AIR CARGO SECURITY.

       (a) Air Cargo Screening Technology.--The Assistant 
     Secretary of Homeland Security (Transportation Security 
     Administration) shall develop technology to better identify, 
     track, and screen air cargo.
       (b) Improved Air Cargo and Airport Security.--There is 
     authorized to be appropriated to the Secretary of Homeland 
     Security for the use of the Transportation Security 
     Administration, in addition to any amounts otherwise 
     authorized by law, for the purpose of improving aviation 
     security related to the transportation of cargo on both 
     passenger aircraft and all-cargo aircraft--
       (1) $200,000,000 for fiscal year 2005;
       (2) $200,000,000 for fiscal year 2006; and
       (3) $200,000,000 for fiscal year 2007.
     Such sums shall remain available until expended.
       (c) Research, Development, and Deployment.--To carry out 
     subsection (a), there is authorized to be appropriated to the 
     Secretary, in addition to any amounts otherwise authorized by 
     law, for research and development related to enhanced air 
     cargo security technology as well as for deployment and 
     installation of enhanced air cargo security technology--
       (1) $100,000,000 for fiscal year 2005;
       (2) $100,000,000 for fiscal year 2006; and
       (3) $100,000,000 for fiscal year 2007.
     Such sums shall remain available until expended.
       (d) Advanced Cargo Security Grants.--
       (1) In general.--The Secretary shall establish and carry 
     out a program to issue competitive grants to encourage the 
     development of advanced air cargo security technology, 
     including use of innovative financing or other means of 
     funding such activities. The Secretary may make available 
     funding for this purpose from amounts appropriated pursuant 
     to subsection (c).
       (2) Eligibility criteria, etc.--The Secretary shall 
     establish such eligibility criteria, establish such 
     application and administrative procedures, and provide for 
     such matching funding requirements, if any, as may be 
     necessary and appropriate to ensure that the technology is 
     deployed as fully and rapidly as possible.

     SEC. 4053. AIR CARGO SECURITY REGULATIONS.

       Not later than 240 days after the date of enactment of this 
     Act, the Assistant Secretary of Homeland Security 
     (Transportation Security Administration) shall issue a final 
     rule in Docket Number TSA-2004-19515 to amend transportation 
     security regulations to enhance and improve the security of 
     air cargo transported in both passenger and all-cargo 
     aircraft.

     SEC. 4054. REPORT ON INTERNATIONAL AIR CARGO THREATS.

       (a) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Homeland Security, in 
     coordination with the Secretary of Defense and the 
     Administrator of the Federal Aviation Administration, shall 
     submit to the Committee on Commerce, Science, and 
     Transportation and the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives a report that contains the following:
       (1) A description of the current procedures in place to 
     address the threat of an inbound all-cargo aircraft from 
     outside the United States that intelligence sources indicate 
     could carry explosive, incendiary, chemical, biological, or 
     nuclear devices.
       (2) An analysis of the potential for establishing secure 
     facilities along established international aviation routes 
     for the purposes of diverting and securing aircraft described 
     in paragraph (1).
       (b) Report Format.--The Secretary may submit all, or part, 
     of the report required by this section in such a classified 
     and redacted format as the Secretary determines appropriate 
     or necessary.
                     Subtitle D--Maritime Security

     SEC. 4071. WATCH LISTS FOR PASSENGERS ABOARD VESSELS.

       (a) Watch Lists.--
       (1) In general.--As soon as practicable but not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary of Homeland Security shall--
       (A) implement a procedure under which the Department of 
     Homeland Security compares information about passengers and 
     crew who are to be carried aboard a cruise ship with a 
     comprehensive, consolidated database containing information 
     about known or suspected terrorists and their associates;
       (B) use the information obtained by comparing the passenger 
     and crew information with the information in the database to 
     prevent known or suspected terrorists and their associates 
     from boarding such ships or to subject them to specific 
     additional security scrutiny, through the use of ``no 
     transport'' and ``automatic selectee'' lists or other means.
       (2) Waiver.--The Secretary may waive the requirement in 
     paragraph (1)(B) with respect to cruise ships embarking at 
     foreign ports if the Secretary determines that the 
     application of such requirement to such cruise ships is 
     impracticable.
       (b) Cooperation From Operators of Cruise Ships.--The 
     Secretary of Homeland Security shall by rulemaking require 
     operators of cruise ships to provide the passenger and crew 
     information necessary to implement the procedure required by 
     subsection (a).
       (c) Maintenance of Accuracy and Integrity of ``No 
     Transport'' and ``Automatic Selectee'' Lists.--
       (1) Watch list database.--The Secretary of Homeland 
     Security, in consultation with the Terrorist Screening 
     Center, shall develop guidelines, policies, and operating 
     procedures for the collection, removal, and updating of data 
     maintained, or to be maintained, in the ``no transport'' and 
     ``automatic selectee'' lists described in subsection (a)(1) 
     that are designed to ensure the accuracy and integrity of the 
     lists.
       (2) Accuracy of entries.--In developing the ``no 
     transport'' and ``automatic selectee'' lists under subsection 
     (a)(1)(B), the Secretary 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 and crew screening process. The 
     Secretary shall also establish a process to provide an 
     individual whose name is confused with, or similar to, a name 
     in the watch list database with a means of demonstrating that 
     such individual is not the person named in the database.
       (d) Cruise Ship Defined.--In this section, the term 
     ``cruise ship'' means a vessel on an international voyage 
     that embarks or disembarks passengers at a port of United 
     States jurisdiction to which subpart C of part 160 of title 
     33, Code of Federal Regulations, applies and that provides 
     overnight accommodations.

     SEC. 4072. DEADLINES FOR COMPLETION OF CERTAIN PLANS, 
                   REPORTS, AND ASSESSMENTS.

       (a) National Maritime Transportation Security Plan.--
     Section 70103(a)(1) of title 46, United States Code, is 
     amended by striking ``The Secretary'' and inserting ``Not 
     later than April 1, 2005, the Secretary''.
       (b) Facility and Vessel Vulnerability Assessments.--Section 
     70102(b)(1) of title 46, United States Code, is amended by 
     striking ``, the Secretary'' and inserting ``and by not later 
     than December 31, 2004, the Secretary''.
       (c) Strategic Plan Reports.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of the 
     department in which the Coast Guard is operating shall submit 
     to the Committee on Commerce, Science, and Transportation of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives--
       (1) a comprehensive program management plan that identifies 
     specific tasks to be completed, and deadlines for completion, 
     for the transportation security card program under section 
     70105 of title 46, United States Code, that incorporates best 
     practices for communicating, coordinating, and collaborating 
     with the relevant stakeholders to resolve relevant issues, 
     such as background checks;
       (2) a report on the status of negotiations under section 
     103(a) of the Maritime Transportation Security Act of 2002 
     (46 U.S.C. 70111);
       (3) the report required by section 107(b) of the Maritime 
     Transportation Security Act of 2002 (33 U.S.C. 1226 note); 
     and

[[Page H10956]]

       (4) a report on the status of the development of the system 
     and standards required by section 111 of the Maritime 
     Transportation Security Act of 2002 (46 U.S.C. 70116 note).
       (d) Other Reports.--Not later than 90 days after the date 
     of the enactment of this Act--
       (1) the Secretary of Homeland Security shall submit to the 
     appropriate congressional committees--
       (A) a report on the establishment of the National Maritime 
     Security Advisory Committee under section 70112 of title 46, 
     United States Code; and
       (B) a report on the status of the program required by 
     section 70116 of title 46, United States Code, to evaluate 
     and certify secure systems of international intermodal 
     transportation;
       (2) the Secretary of Transportation shall submit to the 
     appropriate congressional committees the annual report 
     required by section 905 of the International Maritime and 
     Port Security Act (46 U.S.C. App. 1802) that includes 
     information that should have been included in the last 
     preceding annual report that was due under that section; and
       (3) the Commandant of the United States Coast Guard shall 
     submit to the appropriate congressional committees the report 
     required by section 110(b) of the Maritime Transportation 
     Security Act of 2002 (46 U.S.C. 70101 note).
                     Subtitle E--General Provisions

     SEC. 4081. DEFINITIONS.

       In this title (other than in sections 4001 and 4026), the 
     following definitions apply:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Commerce, Science, and Transportation of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives.
       (2) Aviation definitions.--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.
       (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 regulations).

     SEC. 4082. EFFECTIVE DATE.

       This title shall take effect on the date of enactment of 
     this Act.
       TITLE V--BORDER PROTECTION, IMMIGRATION, AND VISA MATTERS
 Subtitle A--Advanced Technology Northern Border Security Pilot Program

     SEC. 5101. ESTABLISHMENT.

       The Secretary of Homeland Security may carry out a pilot 
     program to test various advanced technologies that will 
     improve border security between ports of entry along the 
     northern border of the United States.

     SEC. 5102. PROGRAM REQUIREMENTS.

       (a) Required Features.--The Secretary of Homeland Security 
     shall design the pilot program under this subtitle to have 
     the following features:
       (1) Use of advanced technological systems, including 
     sensors, video, and unmanned aerial vehicles, for border 
     surveillance.
       (2) Use of advanced computing and decision integration 
     software for--
       (A) evaluation of data indicating border incursions;
       (B) assessment of threat potential; and
       (C) rapid real-time communication, monitoring, intelligence 
     gathering, deployment, and response.
       (3) Testing of advanced technology systems and software to 
     determine best and most cost-effective uses of advanced 
     technology to improve border security.
       (4) Operation of the program in remote stretches of border 
     lands with long distances between 24-hour ports of entry with 
     a relatively small presence of United States border patrol 
     officers.
       (5) Capability to expand the program upon a determination 
     by the Secretary that expansion would be an appropriate and 
     cost-effective means of improving border security.
       (b) Coordination With Other Agencies.--The Secretary of 
     Homeland Security shall ensure that the operation of the 
     pilot program under this subtitle--
       (1) is coordinated among United States, State, local, and 
     Canadian law enforcement and border security agencies; and
       (2) includes ongoing communication among such agencies.

     SEC. 5103. ADMINISTRATIVE PROVISIONS.

       (a) Procurement of Advanced Technology.--The Secretary of 
     Homeland Security may enter into contracts for the 
     procurement or use of such advanced technologies as the 
     Secretary determines appropriate for the pilot program under 
     this subtitle.
       (b) Program Partnerships.--In carrying out the pilot 
     program under this subtitle, the Secretary of Homeland 
     Security may provide for the establishment of cooperative 
     arrangements for participation in the pilot program by such 
     participants as law enforcement and border security agencies 
     referred to in section 5102(b), institutions of higher 
     education, and private sector entities.

     SEC. 5104. REPORT.

       (a) Requirement for Report.--Not later than 1 year after 
     the date of enactment of this Act, the Secretary of Homeland 
     Security shall submit to Congress a report on the pilot 
     program under this subtitle.
       (b) Content.--The report under subsection (a) shall include 
     the following matters:
       (1) A discussion of the implementation of the pilot 
     program, including the experience under the pilot program.
       (2) A recommendation regarding whether to expand the pilot 
     program along the entire northern border of the United States 
     and a timeline for the implementation of the expansion.

     SEC. 5105. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated such sums as may be 
     necessary to carry out the pilot program under this subtitle.
             Subtitle B--Border and Immigration Enforcement

     SEC. 5201. BORDER SURVEILLANCE.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the President and the appropriate committees 
     of Congress a comprehensive plan for the systematic 
     surveillance of the southwest border of the United States by 
     remotely piloted aircraft.
       (b) Contents.--The plan submitted under subsection (a) 
     shall include--
       (1) recommendations for establishing command and control 
     centers, operations sites, infrastructure, maintenance, and 
     procurement;
       (2) cost estimates for the implementation of the plan and 
     ongoing operations;
       (3) recommendations for the appropriate agent within the 
     Department of Homeland Security to be the executive agency 
     for remotely piloted aircraft operations;
       (4) the number of remotely piloted aircraft required for 
     the plan;
       (5) the types of missions the plan would undertake, 
     including--
       (A) protecting the lives of people seeking illegal entry 
     into the United States;
       (B) interdicting illegal movement of people, weapons, and 
     other contraband across the border;
       (C) providing investigative support to assist in the 
     dismantling of smuggling and criminal networks along the 
     border;
       (D) using remotely piloted aircraft to serve as platforms 
     for the collection of intelligence against smugglers and 
     criminal networks along the border; and
       (E) further validating and testing of remotely piloted 
     aircraft for airspace security missions;
       (6) the equipment necessary to carry out the plan; and
       (7) a recommendation regarding whether to expand the pilot 
     program along the entire southwest border.
       (c) Implementation.--The Secretary of Homeland Security 
     shall implement the plan submitted under subsection (a) as a 
     pilot program as soon as sufficient funds are appropriated 
     and available for this purpose.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the provisions of this section.

     SEC. 5202. INCREASE IN FULL-TIME BORDER PATROL AGENTS.

       In each of the fiscal years 2006 through 2010, the 
     Secretary of Homeland Security shall, subject to the 
     availability of appropriations for such purpose, 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. In 
     each of the fiscal years 2006 through 2010, in addition to 
     the border patrol agents assigned along the northern border 
     of the United States during the previous fiscal year, the 
     Secretary shall assign a number of border patrol agents equal 
     to not less than 20 percent of the net increase in border 
     patrol agents during each such fiscal year.

     SEC. 5203. INCREASE IN FULL-TIME IMMIGRATION AND CUSTOMS 
                   ENFORCEMENT INVESTIGATORS.

       In each of fiscal years 2006 through 2010, the Secretary of 
     Homeland Security shall, subject to the availability of 
     appropriations for such purpose, 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 made available during the preceding fiscal 
     year.

     SEC. 5204. INCREASE IN DETENTION BED SPACE.

       (a) In General.--Subject to the availability of 
     appropriated funds, the Secretary of Homeland Security shall 
     increase by not less than 8,000, in each of the fiscal years 
     2006 through 2010, the number of beds available for 
     immigration detention and removal operations of the 
     Department of Homeland Security above the number for which 
     funds were allotted for the preceding fiscal year.
       (b) Priority.--The Secretary shall give priority for the 
     use of these additional beds to the detention of individuals 
     charged with removability under section 237(a)(4) of the 
     Immigration and Nationality Act (8 U.S.C. 1227(a)(4)) or 
     inadmissibility under section 212(a)(3) of that Act (8 U.S.C. 
     1182(a)(3)).
                     Subtitle C--Visa Requirements

     SEC. 5301. IN PERSON INTERVIEWS OF VISA APPLICANTS.

       (a) Requirement for Interviews.--Section 222 of the 
     Immigration and Nationality Act (8 U.S.C. 1202) is amended by 
     adding at the end the following new subsection:
       ``(h) Notwithstanding any other provision of this Act, the 
     Secretary of State shall require every alien applying for a 
     nonimmigrant visa--
       ``(1) who is at least 14 years of age and not more than 79 
     years of age to submit to an in person interview with a 
     consular officer unless the requirement for such interview is 
     waived--
       ``(A) by a consular official and such alien is--
       ``(i) within that class of nonimmigrants enumerated in 
     subparagraph (A) or (G) of section 101(a)(15);
       ``(ii) within the NATO visa category;

[[Page H10957]]

       ``(iii) within that class of nonimmigrants enumerated in 
     section 101(a)(15)(C)(iii) (referred to as the `C-3 visa' 
     category); or
       ``(iv) granted a diplomatic or official visa on a 
     diplomatic or official passport or on the equivalent thereof;
       ``(B) by a consular official and such alien is applying for 
     a visa--
       ``(i) not more than 12 months after the date on which such 
     alien's prior visa expired;
       ``(ii) for the visa classification for which such prior 
     visa was issued;
       ``(iii) from the consular post located in the country of 
     such alien's usual residence, unless otherwise prescribed in 
     regulations that require an applicant to apply for a visa in 
     the country of which such applicant is a national; and
       ``(iv) the consular officer has no indication that such 
     alien has not complied with the immigration laws and 
     regulations of the United States; or
       ``(C) by the Secretary of State if the Secretary determines 
     that such waiver is--
       ``(i) in the national interest of the United States; or
       ``(ii) necessary as a result of unusual or emergent 
     circumstances; and
       ``(2) notwithstanding paragraph (1), to submit to an in 
     person interview with a consular officer if such alien--
       ``(A) is not a national or resident of the country in which 
     such alien is applying for a visa;
       ``(B) was previously refused a visa, unless such refusal 
     was overcome or a waiver of ineligibility has been obtained;
       ``(C) is listed in the Consular Lookout and Support System 
     (or successor system at the Department of State);
       ``(D) is a national of a country officially designated by 
     the Secretary of State as a state sponsor of terrorism, 
     except such nationals who possess nationalities of countries 
     that are not designated as state sponsors or terrorism;
       ``(E) requires a security advisory opinion or other 
     Department of State clearance, unless such alien is--
       ``(i) within that class of nonimmigrants enumerated in 
     subparagraph (A) or (G) of section 101(a)(15);
       ``(ii) within the NATO visa category;
       ``(iii) within that class of nonimmigrants enumerated in 
     section 101(a)(15)(C)(iii) (referred to as the `C-3 visa' 
     category); or
       ``(iv) an alien who qualifies for a diplomatic or official 
     visa, or its equivalent; or
       ``(F) is identified as a member of a group or sector that 
     the Secretary of State determines--
       ``(i) poses a substantial risk of submitting inaccurate 
     information in order to obtain a visa;
       ``(ii) has historically had visa applications denied at a 
     rate that is higher than the average rate of such denials; or
       ``(iii) poses a security threat to the United States.''.

     SEC. 5302. VISA APPLICATION REQUIREMENTS.

       Section 222(c) of the Immigration and Nationality Act (8 
     U.S.C. 1202(c)) is amended by inserting ``The alien shall 
     provide complete and accurate information in response to any 
     request for information contained in the application.'' after 
     the second sentence.

     SEC. 5303. EFFECTIVE DATE.

       Notwithstanding section 1086 or any other provision of this 
     Act, sections 5301 and 5302 shall take effect 90 days after 
     the date of enactment of this Act.

     SEC. 5304. 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, except in the context of a 
     removal proceeding if such revocation provides the sole 
     ground for removal under section 237(a)(1)(B).''.
       (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 enactment of this Act and 
     shall apply to revocations under sections 205 and 221(i) of 
     the Immigration and Nationality Act (8 U.S.C. 1155, 1201(i)) 
     made before, on, or after such date.
                     Subtitle D--Immigration Reform

     SEC. 5401. 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; and
       ``(C)(i) aliens were transported in a manner that 
     endangered their lives; or
       ``(ii) 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:
       ``(e) Outreach Program.--The Secretary of Homeland 
     Security, in consultation with the Attorney General and the 
     Secretary of State, as appropriate, 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.''.

     SEC. 5402. DEPORTATION OF ALIENS WHO HAVE RECEIVED MILITARY-
                   TYPE TRAINING FROM TERRORIST ORGANIZATIONS.

       Section 237(a)(4) of the Immigration and Nationality Act (8 
     U.S.C. 1227(a)(4)) is amended by adding at the end the 
     following:
       ``(E) Recipient of military-type training.--
       ``(i) In general.--Any alien who has received military-type 
     training from or on behalf of any organization that, at the 
     time the training was received, was a terrorist organization 
     (as defined in subclause (I) or (II) of section 
     212(a)(3)(B)(vi)), is deportable.
       ``(ii) Definition.--As used in this subparagraph, 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 2332a(c)(2) of title 18, United States Code).''.

     SEC. 5403. STUDY AND REPORT ON TERRORISTS IN THE ASYLUM 
                   SYSTEM.

       (a) Study.--Commencing not later than 30 days after the 
     date of the enactment of this Act, the Comptroller General of 
     the United States shall conduct a study to evaluate the 
     extent to which weaknesses in the United States asylum system 
     and withholding of removal system have been or could be 
     exploited by aliens connected to, charged in connection with, 
     or tied to terrorist activity.
       (b) Elements.--The study under subsection (a) shall 
     address, but not be limited to, the following:
       (1) The number of aliens connected to, tied to, charged in 
     connection with, or who claim to have been accused of or 
     charged in connection with terrorist activity who have 
     applied for, been granted, or been denied asylum.
       (2) The number of aliens connected to, tied to, charged in 
     connection with, or who claim to have been accused of or 
     charged in connection with terrorist activity who have 
     applied for, been granted, or been denied release from 
     detention.
       (3) The number of aliens connected to, tied to, charged in 
     connection with, or who claim to have been accused of or 
     charged in connection with terrorist activity who have been 
     denied asylum but who remain at large in the United States.
       (4) The effect of the confidentiality provisions of section 
     208.6 of title 8, Code of Federal Regulations, on the ability 
     of the United States Government to establish that an alien is 
     connected to or tied to terrorist activity, such that the 
     alien is barred from asylum or withholding of removal, is 
     removable from the United States, or both.
       (5) The effect that precedential decisions, if any, holding 
     that the extrajudicial punishment of an individual connected 
     to terrorism, or guerrilla or militant activity abroad, or 
     threats of such punishment, constitute persecution on account 
     of political opinion as defined in section 101(a)(42) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(42)), have 
     had on the ability of the United States Government to remove 
     aliens whom the United States Government believes are 
     connected to or have ties to terrorism,
       (6) The extent to which court precedents have affected the 
     ability of the United States Government to determine or prove 
     that an alien the United States Government believes to be 
     connected to or tied to terrorism is in fact so connected or 
     tied, including--
       (A) so-called ``imputed political opinion'';
       (B) judicial review, reversal, or both of the credibility 
     determinations of immigration judges; and
       (C) the need to use classified information in removal 
     proceedings against aliens suspected of connections or ties 
     to terrorism.
       (7) The likelihood that an alien connected to or with ties 
     to terrorism has been granted asylum or withholding of 
     removal.
       (8) The likelihood that an alien connected to or with ties 
     to terrorism has used the United States asylum system to 
     enter or remain in the United States in order to plan, 
     conspire, or carry out, or attempt to plan, conspire, or 
     carry out, an act of terrorism.
       (c) Consideration and Assessment.--Solely for purposes of 
     conducting the study under subsection (a), the Comptroller 
     General shall consider the possibility, and assess the 
     likelihood, that an alien whom the United States Government 
     accuses or has accused of having a connection to or ties to 
     terrorism is in fact connected to or tied to terrorism, 
     notwithstanding any administrative or judicial determination 
     to the contrary.
       (d) Scope.--In conducting the study under subsection (a), 
     the Comptroller General shall seek information from the 
     Department of Homeland Security, the Federal Bureau of 
     Investigation, the Central Intelligence Agency, the 
     Department of Justice, foreign governments, experts in the 
     field of alien terrorists, and any other appropriate source.
       (e) Privacy.--
       (1) In general.--Notwithstanding section 208.6 of title 8, 
     Code of Federal Regulations, the Comptroller General shall, 
     for purposes of the study under subsection (a), have access 
     to the applications and administrative and judicial

[[Page H10958]]

     records of alien applicants for asylum and withholding of 
     removal. Except for purposes of preparing the reports under 
     subsection (f), such information shall not be further 
     disclosed or disseminated, nor shall the names or personal 
     identifying information of any applicant be released.
       (2) Security of records.--The Comptroller General shall 
     ensure that records received pursuant to this section are 
     appropriately secured to prevent their inadvertent 
     disclosure.
       (f) Report to Congress.--
       (1) In general.--Not later than 270 days after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit to the appropriate committees of Congress and the 
     Secretary of Homeland Security a report on the findings and 
     recommendations of the Comptroller General under the study 
     under subsection (a).
       (2) Elements.--The report under paragraph (1) shall include 
     the following:
       (A) The assessment of the Comptroller General on each 
     matter specified in subsection (b).
       (B) Any recommendations of the Comptroller General for such 
     administrative action on any matter specified in subsection 
     (a) as the Comptroller General considers necessary to better 
     protect the national security of the United States.
       (C) Any recommendations of the Comptroller General for such 
     legislative action on any matter specified in subsection (a) 
     as the Comptroller General considers necessary to better 
     protect the national security of the United States.
       (3) Form.--If necessary, the Comptroller General may submit 
     a classified and unclassified version of the report under 
     paragraph (1).
       (g) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Homeland Security and Governmental 
     Affairs, the Committee on the Judiciary, and the Select 
     Committee on Intelligence of the Senate; and
       (2) the Committee on the Judiciary and the Permanent Select 
     Committee on Intelligence of the House of Representatives.
      Subtitle E--Treatment of Aliens Who Commit Acts of Torture, 
           Extrajudicial Killings, or Other Atrocities Abroad

     SEC. 5501. INADMISSIBILITY AND DEPORTABILITY OF ALIENS WHO 
                   HAVE COMMITTED ACTS OF TORTURE OR EXTRAJUDICIAL 
                   KILLINGS ABROAD.

       (a) Inadmissibility.--Section 212(a)(3)(E) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(E)) is 
     amended--
       (1) in clause (ii), by striking ``has engaged in conduct 
     that is defined as genocide for purposes of the International 
     Convention on the Prevention and Punishment of Genocide is 
     inadmissible'' and inserting ``ordered, incited, assisted, or 
     otherwise participated in conduct outside the United States 
     that would, if committed in the United States or by a United 
     States national, be genocide, as defined in section 1091(a) 
     of title 18, United States Code, is inadmissible'';
       (2) by adding at the end the following:
       ``(iii) Commission of acts of torture or extrajudicial 
     killings.--Any alien who, outside the United States, has 
     committed, ordered, incited, assisted, or otherwise 
     participated in the commission of--

       ``(I) any act of torture, as defined in section 2340 of 
     title 18, United States Code; or
       ``(II) under color of law of any foreign nation, any 
     extrajudicial killing, as defined in section 3(a) of the 
     Torture Victim Protection Act of 1991 (28 U.S.C. 1350 note),

     is inadmissible.''; and
       (3) in the subparagraph heading, by striking ``Participants 
     in nazi persecution or genocide'' and inserting 
     ``Participants in nazi persecution, genocide, or the 
     commission of any act of torture or extrajudicial killing''.
       (b) Deportability.--Section 237(a)(4)(D) of such Act (8 
     U.S.C. 1227(a)(4)(D)) is amended--
       (1) by striking ``clause (i) or (ii)'' and inserting 
     ``clause (i), (ii), or (iii)''; and
       (2) in the subparagraph heading, by striking ``Assisted in 
     nazi persecution or engaged in genocide'' and inserting 
     ``Participated in nazi persecution, genocide, or the 
     commission of any act of torture or extrajudicial killing''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to offenses committed before, on, or after the 
     date of enactment of this Act.

     SEC. 5502. INADMISSIBILITY AND DEPORTABILITY OF FOREIGN 
                   GOVERNMENT OFFICIALS WHO HAVE COMMITTED 
                   PARTICULARLY SEVERE VIOLATIONS OF RELIGIOUS 
                   FREEDOM.

       (a) Ground of Inadmissibility.--Section 212(a)(2)(G) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)(2)(G)) is 
     amended to read as follows:
       ``(G) Foreign government officials who have committed 
     particularly severe violations of religious freedom.--Any 
     alien who, while serving as a foreign government official, 
     was responsible for or directly carried out, at any time, 
     particularly severe violations of religious freedom, as 
     defined in section 3 of the International Religious Freedom 
     Act of 1998 (22 U.S.C. 6402), is inadmissible.''.
       (b) Ground of Deportability.--Section 237(a)(4) of the 
     Immigration and Nationality Act (8 U.S.C. 1227(a)(4)) is 
     amended by adding at the end the following:
       ``(E) Participated in the commission of severe violations 
     of religious freedom.--Any alien described in section 
     212(a)(2)(G) is deportable.''.

     SEC. 5503. WAIVER OF INADMISSIBILITY.

       Section 212(d)(3) of the Immigration and Nationality Act (8 
     U.S.C. 1182(d)(3)) is amended--
       (1) in subparagraph (A), by striking ``and 3(E)'' and 
     inserting ``and clauses (i) and (ii) of paragraph (3)(E)''; 
     and
       (2) in subparagraph (B), by striking ``and 3(E)'' and 
     inserting ``and clauses (i) and (ii) of paragraph (3)(E)''.

     SEC. 5504. BAR TO GOOD MORAL CHARACTER FOR ALIENS WHO HAVE 
                   COMMITTED ACTS OF TORTURE, EXTRAJUDICIAL 
                   KILLINGS, OR SEVERE VIOLATIONS OF RELIGIOUS 
                   FREEDOM.

       Section 101(f) of the Immigration and Nationality Act (8 
     U.S.C. 1101(f)) is amended--
       (1) by striking the period at the end of paragraph (8) and 
     inserting ``; or''; and
       (2) by adding at the end the following:
       ``(9) one who at any time has engaged in conduct described 
     in section 212(a)(3)(E) (relating to assistance in Nazi 
     persecution, participation in genocide, or commission of acts 
     of torture or extrajudicial killings) or 212(a)(2)(G) 
     (relating to severe violations of religious freedom).''.

     SEC. 5505. ESTABLISHMENT OF THE OFFICE OF SPECIAL 
                   INVESTIGATIONS.

       (a) Amendment of the Immigration and Nationality Act.--
     Section 103 of the Immigration and Nationality Act (8 U.S.C. 
     1103) is amended by adding at the end the following:
       ``(h)(1) The Attorney General shall establish within the 
     Criminal Division of the Department of Justice an Office of 
     Special Investigations with the authority to detect and 
     investigate, and, where appropriate, to take legal action to 
     denaturalize any alien described in section 212(a)(3)(E).
       ``(2) The Attorney General shall consult with the Secretary 
     of Homeland Security in making determinations concerning the 
     criminal prosecution or extradition of aliens described in 
     section 212(a)(3)(E).
       ``(3) In determining the appropriate legal action to take 
     against an alien described in section 212(a)(3)(E), 
     consideration shall be given to--
       ``(A) the availability of criminal prosecution under the 
     laws of the United States for any conduct that may form the 
     basis for removal and denaturalization; or
       ``(B) the availability of extradition of the alien to a 
     foreign jurisdiction that is prepared to undertake a 
     prosecution for such conduct.''.
       (b) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Department of Justice such sums as may be necessary to 
     carry out the additional duties established under section 
     103(h) of the Immigration and Nationality Act (as added by 
     this subtitle) in order to ensure that the Office of Special 
     Investigations fulfills its continuing obligations regarding 
     Nazi war criminals.
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.

     SEC. 5506. REPORT ON IMPLEMENTATION.

       Not later than 180 days after the date of enactment of this 
     Act, the Attorney General, in consultation with the Secretary 
     of Homeland Security, shall submit to the Committees on the 
     Judiciary of the Senate and the House of Representatives a 
     report on implementation of this subtitle that includes a 
     description of--
       (1) the procedures used to refer matters to the Office of 
     Special Investigations and other components within the 
     Department of Justice and the Department of Homeland Security 
     in a manner consistent with the amendments made by this 
     subtitle;
       (2) the revisions, if any, made to immigration forms to 
     reflect changes in the Immigration and Nationality Act made 
     by the amendments contained in this subtitle; and
       (3) the procedures developed, with adequate due process 
     protection, to obtain sufficient evidence to determine 
     whether an alien may be inadmissible under the terms of the 
     amendments made by this subtitle.
                     TITLE VI--TERRORISM PREVENTION
     Subtitle A--Individual Terrorists as Agents of Foreign Powers

     SEC. 6001. 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 therefore; 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.

     SEC. 6002. ADDITIONAL SEMIANNUAL REPORTING REQUIREMENTS UNDER 
                   THE FOREIGN INTELLIGENCE SURVEILLANCE ACT OF 
                   1978.

       (a) Additional Reporting Requirements.--The Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et 
     seq.) is amended--
       (1) by redesignating--
       (A) title VI as title VII; and
       (B) section 601 as section 701; and
       (2) by inserting after title V the following new title:
                   ``TITLE VI--REPORTING REQUIREMENT

     ``SEC. 601. SEMIANNUAL REPORT OF THE ATTORNEY GENERAL.

       ``(a) Report.--On a semiannual basis, the Attorney General 
     shall submit to the Permanent Select Committee on 
     Intelligence of the House of Representatives, the Select 
     Committee on Intelligence of the Senate, and the committees 
     on the Judiciary of the House of Representatives and the 
     Senate, in a manner consistent with the protection of the 
     national security, a report setting forth with respect to the 
     preceding 6-month period--
       ``(1) the aggregate number of persons targeted for orders 
     issued under this Act, including a breakdown of those 
     targeted for--
       ``(A) electronic surveillance under section 105;
       ``(B) physical searches under section 304;
       ``(C) pen registers under section 402; and
       ``(D) access to records under section 501;
       ``(2) the number of individuals covered by an order issued 
     pursuant to section 101(b)(1)(C);

[[Page H10959]]

       ``(3) the number of times that the Attorney General has 
     authorized that information obtained under this Act may be 
     used in a criminal proceeding or any information derived 
     therefrom may be used in a criminal proceeding;
       ``(4) a summary of significant legal interpretations of 
     this Act involving matters before the Foreign Intelligence 
     Surveillance Court or the Foreign Intelligence Surveillance 
     Court of Review, including interpretations presented in 
     applications or pleadings filed with the Foreign Intelligence 
     Surveillance Court or the Foreign Intelligence Surveillance 
     Court of Review by the Department of Justice; and
       ``(5) copies of all decisions (not including orders) or 
     opinions of the Foreign Intelligence Surveillance Court or 
     Foreign Intelligence Surveillance Court of Review that 
     include significant construction or interpretation of the 
     provisions of this Act.
       ``(b) Frequency.--The first report under this section shall 
     be submitted not later than 6 months after the date of 
     enactment of this section. Subsequent reports under this 
     section shall be submitted semi-annually thereafter.''.
       (b) Clerical Amendment.--The table of contents for the 
     Foreign Intelligence Act of 1978 (50 U.S.C. 1801 et seq.) is 
     amended by striking the items relating to title VI and 
     inserting the following new items:

                   ``TITLE VI--REPORTING REQUIREMENT

``Sec. 601. Semiannual report of the Attorney General.

                      ``TITLE VII--EFFECTIVE DATE

``Sec. 701. Effective date.''.
          Subtitle B--Money Laundering and Terrorist Financing

     SEC. 6101. 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 
     data banks, $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. 6102. MONEY LAUNDERING AND FINANCIAL CRIMES STRATEGY 
                   REAUTHORIZATION.

       (a) Program.--Section 5341(a)(2) of title 31, United States 
     Code, is amended--
       (1) by striking ``February 1'' and inserting ``August 1''; 
     and
       (2) by striking ``and 2003,'' and inserting ``2003, 2005, 
     and 2007,''.
       (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.''.........................................................
  Subtitle C--Money Laundering Abatement and Financial Antiterrorism 
                         Technical Corrections

     SEC. 6201. SHORT TITLE.

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

     SEC. 6202. 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 for Public Law 107-56 is amended 
     by striking the item relating to title III and inserting the 
     following:

  ``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(a) 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 striking ``2001'' and all that 
     follows and inserting a period.
       (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) in the amendment made in that subsection (e), by 
     striking ``person.'' and inserting the following: ``person--
     ''.
       (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 second 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. 6203. 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 second place such term 
     appears; and
       (2) in the heading of paragraph (4), by striking 
     ``Definition'' and inserting ``Definitions''.
       (d) Section 5318(k)(1)(B) of title 31, United States Code, 
     is amended by striking ``section 5318A(f)(1)(B)'' and 
     inserting ``section 5318A(e)(1)(B)''.
       (e) The heading for section 5318A of title 31, United 
     States Code, is amended to read as follows:

     ``Sec. 5318A. Special measures for jurisdictions, financial 
       institutions, international transactions, or types of 
       accounts of primary money laundering concern''.

       (f) Section 5318A of title 31, United States Code, is 
     amended--
       (1) in subsection (a)(4)(A), by striking ``, as defined in 
     section 3 of the Federal Deposit Insurance Act,'' and 
     inserting ``(as defined in section 3 of the Federal Deposit 
     Insurance Act)'';
       (2) in subsection (a)(4)(B)(iii), by striking ``or class of 
     transactions'' and inserting ``class of transactions, or type 
     of account'';
       (3) in subsection (b)(1)(A), by striking ``or class of 
     transactions to be'' and inserting ``class of transactions, 
     or type of account to be''; and
       (4) in subsection (e)(3), by inserting ``or subsection (i) 
     or (j) of section 5318'' after ``identification of 
     individuals under this section''.
       (g) Section 5324(b) of title 31, United States Code, is 
     amended by striking ``5333'' each place such term appears and 
     inserting ``5331''.
       (h) Section 5332 of title 31, United States Code, is 
     amended--
       (1) in subsection (b)(2), by striking ``, subject to 
     subsection (d) of this section''; and

[[Page H10960]]

       (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:

``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. 6204. REPEAL OF REVIEW.

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

     SEC. 6205. 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 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.
                Subtitle D--Additional Enforcement Tools

     SEC. 6301. 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. 6302. REPORTING OF CERTAIN 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 Certain Cross-Border Transmittals of 
     Funds.--
       ``(1) In general.--Subject to paragraphs (3) and (4), 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, if the Secretary determines that reporting of such 
     transmittals is reasonably necessary to conduct the efforts 
     of the Secretary against money laundering and terrorist 
     financing.
       ``(2) Limitation on reporting requirements.--Information 
     required to be reported by the regulations prescribed under 
     paragraph (1) shall not exceed the information required to be 
     retained by the reporting financial institution pursuant to 
     section 21 of the Federal Deposit Insurance Act and the 
     regulations promulgated thereunder, unless--
       ``(A) the Board of Governors of the Federal Reserve System 
     and the Secretary jointly determine that a particular item or 
     items of information are not currently required to be 
     retained under such section or such regulations; and
       ``(B) the Secretary determines, after consultation with the 
     Board of Governors of the Federal Reserve System, that the 
     reporting of such information is reasonably necessary to 
     conduct the efforts of the Secretary to identify cross-border 
     money laundering and terrorist financing.
       ``(3) Form and manner of reports.--In prescribing the 
     regulations required under paragraph (1), the Secretary 
     shall, subject to paragraph (2), determine the appropriate 
     form, manner, content, and frequency of filing of the 
     required reports.
       ``(4) Feasibility report.--
       ``(A) In general.--Before prescribing the regulations 
     required under paragraph (1), and as soon as is practicable 
     after the date of enactment of the National Intelligence 
     Reform Act of 2004, the Secretary shall submit a report to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives that--
       ``(i) identifies the information in cross-border electronic 
     transmittals of funds that may be found in particular cases 
     to be reasonably necessary to conduct the efforts of the 
     Secretary to identify money laundering and terrorist 
     financing, and outlines the criteria to be used by the 
     Secretary to select the situations in which reporting under 
     this subsection may be required;
       ``(ii) outlines the appropriate form, manner, content, and 
     frequency of filing of the reports that may be required under 
     such regulations;
       ``(iii) identifies the technology necessary for the 
     Financial Crimes Enforcement Network to receive, keep, 
     exploit, protect the security of, 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; and
       ``(iv) discusses the information security protections 
     required by the exercise of the Secretary's authority under 
     this subsection.
       ``(B) Consultation.--In reporting the feasibility report 
     under subparagraph (A), the Secretary may consult with the 
     Bank Secrecy Act Advisory Group established by the Secretary, 
     and any other group considered by the Secretary to be 
     relevant.
       ``(5) 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 enactment of the 
     National Intelligence Reform Act of 2004.
       ``(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, protect 
     the security of, 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.''.

     SEC. 6303. TERRORISM FINANCING.

       (a) Report on Terrorist Financing.--
       (1) In general.--Not later than 270 days after the date of 
     enactment of this Act, the President, acting through the 
     Secretary of the Treasury, shall submit to Congress a report 
     evaluating the current state 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 and efficiency of current United 
     States governmental efforts and methods to detect, track, 
     disrupt, and stop terrorist financing;
       (B) the relationship between terrorist financing and money 
     laundering, including how the laundering of proceeds related 
     to illegal narcotics or foreign political corruption may 
     contribute to terrorism or terrorist financing;
       (C) the nature, effectiveness, and efficiency of current 
     efforts to coordinate intelligence and agency operations 
     within the United States Government to detect, track, 
     disrupt, and stop terrorist financing, including identifying 
     who, if anyone, has primary responsibility for developing 
     priorities, assigning tasks to agencies, and monitoring the 
     implementation of policy and operations;
       (D) the effectiveness and efficiency of efforts to protect 
     the critical infrastructure of the United States financial 
     system, and ways to improve the effectiveness of financial 
     institutions;
       (E) ways to improve multilateral and international 
     governmental cooperation on terrorist financing, including 
     the adequacy of agency coordination within the United States 
     related to participating in international cooperative efforts 
     and implementing international treaties and compacts; and
       (F) ways to improve the setting of priorities and 
     coordination of United States efforts to detect, track, 
     disrupt, and stop terrorist financing, including 
     recommendations for changes in executive branch organization 
     or procedures, legislative reforms, additional resources, or 
     use of appropriated funds.
       (b) Postemployment Restriction for Certain Bank and Thrift 
     Examiners.--Section 10 of the Federal Deposit Insurance Act 
     (12 U.S.C. 1820) is amended by adding at the end the 
     following:
       ``(k) One-Year Restrictions on Federal Examiners of 
     Financial Institutions.--
       ``(1) In general.--In addition to other applicable 
     restrictions set forth in title 18, United States Code, the 
     penalties set forth in paragraph (6) of this subsection shall 
     apply to any person who--
       ``(A) was an officer or employee (including any special 
     Government employee) of a Federal banking agency or a Federal 
     reserve bank;
       ``(B) served 2 or more months during the final 12 months of 
     his or her employment with such agency or entity as the 
     senior examiner (or a functionally equivalent position) of a 
     depository institution or depository institution holding 
     company with continuing, broad responsibility for the 
     examination (or inspection) of that depository institution or 
     depository institution holding company on behalf of the 
     relevant agency or Federal reserve bank; and

[[Page H10961]]

       ``(C) within 1 year after the termination date of his or 
     her service or employment with such agency or entity, 
     knowingly accepts compensation as an employee, officer, 
     director, or consultant from--
       ``(i) such depository institution, any depository 
     institution holding company that controls such depository 
     institution, or any other company that controls such 
     depository institution; or
       ``(ii) such depository institution holding company or any 
     depository institution that is controlled by such depository 
     institution holding company.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) the term `depository institution' includes an 
     uninsured branch or agency of a foreign bank, if such branch 
     or agency is located in any State; and
       ``(B) the term `depository institution holding company' 
     includes any foreign bank or company described in section 
     8(a) of the International Banking Act of 1978.
       ``(3) Rules of construction.--For purposes of this 
     subsection, a foreign bank shall be deemed to control any 
     branch or agency of the foreign bank, and a person shall be 
     deemed to act as a consultant for a depository institution, 
     depository institution holding company, or other company, 
     only if such person directly works on matters for, or on 
     behalf of, such depository institution, depository 
     institution holding company, or other company.
       ``(4) Regulations.--
       ``(A) In general.--Each Federal banking agency shall 
     prescribe rules or regulations to administer and carry out 
     this subsection, including rules, regulations, or guidelines 
     to define the scope of persons referred to in paragraph 
     (1)(B).
       ``(B) Consultation required.--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.
       ``(5) Waiver.--
       ``(A) Agency authority.--A Federal banking agency may grant 
     a waiver, on a case by case basis, of the restriction imposed 
     by this subsection to any officer or employee (including any 
     special Government employee) of that agency, and the Board of 
     Governors of the Federal Reserve System may grant a waiver of 
     the restriction imposed by this subsection to any officer or 
     employee of a Federal reserve bank, if the head of such 
     agency certifies in writing that granting the waiver would 
     not affect the integrity of the supervisory program of the 
     relevant Federal banking agency.
       ``(B) Definition.--For purposes of this paragraph, the head 
     of an agency is--
       ``(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 Corporation; and
       ``(iv) the Director of the Office of Thrift Supervision, in 
     the case of the Office of Thrift Supervision.
       ``(6) Penalties.--
       ``(A) In general.--In addition to any other administrative, 
     civil, or criminal remedy or penalty that may otherwise 
     apply, whenever a Federal banking agency determines that a 
     person subject to paragraph (1) has become associated, in the 
     manner described in paragraph (1)(C), with a depository 
     institution, depository institution holding company, or other 
     company for which such agency serves as the appropriate 
     Federal banking agency, the agency shall impose upon such 
     person one or more of the following penalties:
       ``(i) Industry-wide prohibition order.--The Federal banking 
     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 paragraph (1) or (2) of 
     section 8(e), upon such person of the intention of the 
     agency--

       ``(I) to remove such person from office or to prohibit such 
     person from further participation in the conduct of the 
     affairs of the depository institution, depository institution 
     holding company, or other company for a period of up to 5 
     years; and
       ``(II) to prohibit any further participation by such 
     person, in any manner, in the conduct of the affairs of any 
     insured depository institution for a period of up to 5 years.

       ``(ii) Civil monetary penalty.--The Federal banking agency 
     may, in an administrative proceeding or civil action in 
     an appropriate United States district court, impose on 
     such person a civil monetary penalty of not more than 
     $250,000. Any administrative proceeding under this clause 
     shall be conducted in accordance with section 8(i). In 
     lieu of an action by the Federal banking agency under this 
     clause, the Attorney General of the United States may 
     bring a civil action under this clause in the appropriate 
     United States district court.
       ``(B) Scope of prohibition order.--Any person subject to an 
     order issued under subparagraph (A)(i) 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.
       ``(C) Definitions.--Solely for purposes of this paragraph, 
     the `appropriate Federal banking agency' for a company that 
     is not a depository institution or depository institution 
     holding company shall be the Federal banking agency on whose 
     behalf the person described in paragraph (1) performed the 
     functions described in paragraph (1)(B).''.
       (c) Postemployment Restriction for Certain Credit Union 
     Examiners.--Section 206 of the Federal Credit Union Act (12 
     U.S.C. 1786) is amended by adding at the end the following:
       ``(w) One-Year Restrictions on Federal Examiners of Insured 
     Credit Unions.--
       ``(1) In general.--In addition to other applicable 
     restrictions set forth in title 18, United States Code, the 
     penalties set forth in paragraph (5) of this subsection shall 
     apply to any person who--
       ``(A) was an officer or employee (including any special 
     Government employee) of the Administration;
       ``(B) served 2 or more months during the final 12 months of 
     his or her employment with the Administration as the senior 
     examiner (or a functionally equivalent position) of an 
     insured credit union with continuing, broad responsibility 
     for the examination (or inspection) of that insured credit 
     union on behalf of the Administration; and
       ``(C) within 1 year after the termination date of his or 
     her service or employment with the Administration, knowingly 
     accepts compensation as an employee, officer, director, or 
     consultant from such insured credit union.
       ``(2) Rule of construction.--For purposes of this 
     subsection, a person shall be deemed to act as a consultant 
     for an insured credit union only if such person directly 
     works on matters for, or on behalf of, such insured credit 
     union.
       ``(3) Regulations.--
       ``(A) In general.--The Board shall prescribe rules or 
     regulations to administer and carry out this subsection, 
     including rules, regulations, or guidelines to define the 
     scope of persons referred to in paragraph (1)(B).
       ``(B) Consultation.--In prescribing rules or regulations 
     under this paragraph, the Board shall, to the extent it deems 
     necessary, consult with the Federal banking agencies (as 
     defined in section 3 of the Federal Deposit Insurance Act) on 
     regulations issued by such agencies in carrying out section 
     10(k) of the Federal Deposit Insurance Act.
       ``(4) Waiver.--The Board may grant a waiver, on a case by 
     case basis, of the restriction imposed by this subsection to 
     any officer or employee (including any special Government 
     employee) of the Administration if the Chairman certifies in 
     writing that granting the waiver would not affect the 
     integrity of the supervisory program of the Administration.
       ``(5) Penalties.--
       ``(A) In general.--In addition to any other administrative, 
     civil, or criminal remedy or penalty that may otherwise 
     apply, whenever the Board determines that a person subject to 
     paragraph (1) has become associated, in the manner described 
     in paragraph (1)(C), with an insured credit union, the Board 
     shall impose upon such person one or more of the following 
     penalties:
       ``(i) Industry-wide prohibition order.--The Board shall 
     serve a written notice or order in accordance with and 
     subject to the provisions of subsection (g)(4) for written 
     notices or orders under paragraph (1) or (2) of subsection 
     (g), upon such person of the intention of the Board--

       ``(I) to remove such person from office or to prohibit such 
     person from further participation in the conduct of the 
     affairs of the insured credit union for a period of up to 5 
     years; and
       ``(II) to prohibit any further participation by such 
     person, in any manner, in the conduct of the affairs of any 
     insured credit union for a period of up to 5 years.

       ``(ii) Civil monetary penalty.--The Board may, in an 
     administrative proceeding or civil action in an appropriate 
     United States district court, impose on such person a civil 
     monetary penalty of not more than $250,000. Any 
     administrative proceeding under this clause shall be 
     conducted in accordance with subsection (k). In lieu of an 
     action by the Board under this clause, the Attorney General 
     of the United States may bring a civil action under this 
     clause in the appropriate United States district court.
       ``(B) Scope of prohibition order.--Any person subject to an 
     order issued under this subparagraph (A)(i) 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 subsection (g).''.
       (d) Effective Date.--Notwithstanding any other effective 
     date established pursuant to this Act, subsection (a) shall 
     become effective on the date of enactment of this Act, and 
     the amendments made by subsections (b) and (c) shall become 
     effective at the end of the 12-month period beginning on the 
     date of enactment of this Act, whether or not final 
     regulations are issued in accordance with the amendments made 
     by this section as of that date of enactment.
             Subtitle E--Criminal History Background Checks

     SEC. 6401. 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. 6402. 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,

[[Page H10962]]

     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 screened and 
     trained.
       (c) Definitions.--In this section:
       (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 the participating State the request 
     to search the criminal history record information of the 
     employee under this Act.
       (ii) Access.--An authorized employer shall provide to the 
     employee confidential access to any information relating to 
     the employee received by the authorized employer pursuant to 
     this Act.
       (C) Providing information to the state identification 
     bureau.--Upon receipt of a request for a criminal history 
     record information search from an authorized employer 
     pursuant to this Act, submitted through the State 
     identification bureau of a participating State, the Attorney 
     General shall--
       (i) search the appropriate records of the Criminal Justice 
     Information Services Division of the Federal Bureau of 
     Investigation; and
       (ii) promptly provide any resulting identification and 
     criminal history record information to the submitting State 
     identification bureau requesting the information.
       (D) Use of information.--
       (i) In general.--Upon receipt of the criminal history 
     record information from the Attorney General by the State 
     identification bureau, the information shall be used only as 
     provided in clause (ii).
       (ii) Terms.--In the case of--

       (I) a participating State that has no State standards for 
     qualification to be a private security officer, the State 
     shall notify an authorized employer as to the fact of whether 
     an employee has been--

       (aa) convicted of a felony, an offense involving dishonesty 
     or a false statement if the conviction occurred during the 
     previous 10 years, or an offense involving the use or 
     attempted use of physical force against the person of another 
     if the conviction occurred during the previous 10 years; or
       (bb) charged with a criminal felony for which there has 
     been no resolution during the preceding 365 days; or

       (II) a participating State that has State standards for 
     qualification to be a private security officer, the State 
     shall use the information received pursuant to this Act in 
     applying the State standards and shall only notify the 
     employer of the results of the application of the State 
     standards.

       (E) Frequency of requests.--An authorized employer may 
     request a criminal history record information search for an 
     employee only once every 12 months of continuous employment 
     by that employee unless the authorized employer has good 
     cause to submit additional requests.
       (2) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Attorney General shall issue such 
     final or interim final regulations as may be necessary to 
     carry out this Act, including--
       (A) measures relating to the security, confidentiality, 
     accuracy, use, submission, dissemination, destruction of 
     information and audits, and record keeping;
       (B) standards for qualification as an authorized employer; 
     and
       (C) the imposition of reasonable fees necessary for 
     conducting the background checks.
       (3) Criminal penalties for use of information.--Whoever 
     knowingly and intentionally uses any information obtained 
     pursuant to this Act other than for the purpose of 
     determining the suitability of an individual for employment 
     as a private security officer shall be fined under title 18, 
     United States Code, or imprisoned for not more than 2 years, 
     or both.
       (4) User fees.--
       (A) In general.--The Director of the Federal Bureau of 
     Investigation may--
       (i) collect fees to process background checks provided for 
     by this Act; and
       (ii) establish such fees at a level to include an 
     additional amount to defray expenses for the automation of 
     fingerprint identification and criminal justice information 
     services and associated costs.
       (B) Limitations.--Any fee collected under this subsection--
       (i) shall, consistent with Public Law 101-515 and Public 
     Law 104-99, be credited to the appropriation to be used for 
     salaries and other expenses incurred through providing the 
     services described in such Public Laws and in subparagraph 
     (A);
       (ii) shall be available for expenditure only to pay the 
     costs of such activities and services; and
       (iii) shall remain available until expended.
       (C) State costs.--Nothing in this Act shall be construed as 
     restricting the right of a State to assess a reasonable fee 
     on an authorized employer for the costs to the State of 
     administering this Act.
       (5) State opt out.--A State may decline to participate in 
     the background check system authorized by this Act by 
     enacting a law or issuing an order by the Governor (if 
     consistent with State law) providing that the State is 
     declining to participate pursuant to this subsection.

     SEC. 6403. CRIMINAL HISTORY BACKGROUND CHECKS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Attorney General shall report to 
     the Judiciary Committee of the Senate and the Judiciary 
     Committee of the House of Representatives 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.
       (b) Definitions.--As used in this section--
       (1) the terms ``criminal history information'' and 
     ``criminal history records'' include--
       (A) an identifying description of the individual to whom 
     the information or records pertain;
       (B) notations of arrests, detentions, indictments, or other 
     formal criminal charges pertaining to such individual; and
       (C) any disposition to a notation described in subparagraph 
     (B), including acquittal, sentencing, correctional 
     supervision, or release; and
       (2) the term ``IAFIS'' means the Integrated Automated 
     Fingerprint Identification System of the Federal Bureau of 
     Allocation, which serves as the national depository for 
     fingerprint, biometric, and criminal history information, 
     through which fingerprints are processed electronically.
       (c) Identification of Information.--The Attorney General 
     shall identify--
       (1) the number of criminal history record checks requested, 
     including the type of information requested;
       (2) the usage of different terms and definitions regarding 
     criminal history information; and
       (3) the variation in fees charged for such information and 
     who pays such fees.
       (d) Recommendations.--The Attorney General shall make 
     recommendations to Congress for improving, standardizing, and 
     consolidating the existing statutory authorization, programs, 
     and procedures for the conduct of criminal history record 
     checks for non-criminal justice purposes. In making these 
     recommendations to Congress, the Attorney General shall 
     consider--
       (1) the effectiveness and efficiency of utilizing 
     commercially available databases as a supplement to IAFIS 
     criminal history information checks;
       (2) any security concerns created by the existence of these 
     commercially available databases concerning their ability to 
     provide sensitive information that is not readily available 
     about law enforcement or intelligence officials, including 
     their identity, residence, and financial status;
       (3) the effectiveness of utilizing State databases;
       (4) any feasibility studies by the Department of Justice of 
     the resources and structure of the Federal Bureau of 
     Investigation to establish a system to provide criminal 
     history information;
       (5) privacy rights and other employee protections, 
     including--
       (A) employee consent;
       (B) access to the records used if employment was denied;
       (C) the disposition of the fingerprint submissions after 
     the records are searched;

[[Page H10963]]

       (D) an appeal mechanism; and
       (E) penalties for misuse of the information;
       (6) the scope and means of processing background checks for 
     private employers utilizing data maintained by the Federal 
     Bureau of Investigation that the Attorney General should be 
     allowed to authorize in cases where the authority for such 
     checks is not available at the State level;
       (7) any restrictions that should be placed on the ability 
     of an employer to charge an employee or prospective employee 
     for the cost associated with the background check;
       (8) which requirements should apply to the handling of 
     incomplete records;
       (9) the circumstances under which the criminal history 
     information should be disseminated to the employer;
       (10) the type of restrictions that should be prescribed for 
     the handling of criminal history information by an employer;
       (11) the range of Federal and State fees that might apply 
     to such background check requests;
       (12) any requirements that should be imposed concerning the 
     time for responding to such background check requests;
       (13) any infrastructure that may need to be developed to 
     support the processing of such checks, including--
       (A) the means by which information is collected and 
     submitted in support of the checks; and
       (B) the system capacity needed to process such checks at 
     the Federal and State level;
       (14) the role that States should play; and
       (15) any other factors that the Attorney General determines 
     to be relevant to the subject of the report.
       (e) Consultation.--In developing the report under this 
     section, the Attorney General shall consult with 
     representatives of State criminal history record 
     repositories, the National Crime Prevention and Privacy 
     Compact Council, appropriate representatives of private 
     industry, and representatives of labor, as determined 
     appropriate by the Attorney General.
               Subtitle F--Grand Jury Information Sharing

     SEC. 6501. 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, within the United States or elsewhere, 
     a threat of attack or other grave hostile acts of a foreign 
     power or its agent, a threat of domestic or international 
     sabotage or terrorism, or clandestine intelligence gathering 
     activities by an intelligence service or network of a foreign 
     power or by its agent, to any appropriate Federal, State, 
     State subdivision, Indian tribal, or foreign government 
     official, for the purpose of preventing or responding to such 
     threat or activities.''; 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 Director of National Intelligence 
     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 the Director of 
     National 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)''.
          Subtitle G--Providing Material Support to Terrorism

     SEC. 6601. SHORT TITLE.

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

     SEC. 6602. 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; or
       ``(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. 6603. ADDITIONS TO OFFENSE OF PROVIDING MATERIAL SUPPORT 
                   TO TERRORISM.

       (a) In General.--Chapter 113B of title 18, United States 
     Code, is amended--
       (1) in section 2332b(g)(5)(B)(i)--
       (A) by inserting ``1361 (relating to government property or 
     contracts),'' before ``1362''; and
       (B) by inserting ``2156 (relating to national defense 
     material, premises, or utilities),'' before ``2280''; and
       (2) in section 2339A--
       (A) by striking ``or'' before ``section 46502''; and
       (B) by inserting ``or any offense listed in section 
     2332b(g)(5)(B) (except for sections 2339A and 2339B)'' after 
     ``section 60123(b) of title 49,''.
       (b) Definitions.--Section 2339A(b) of title 18, United 
     States Code, is amended to read as follows:
       ``(b) Definitions.--As used in this section--
       ``(1) the term `material support or resources' means any 
     property, tangible or intangible, or service, including 
     currency or monetary instruments or financial securities, 
     financial services, lodging, training, expert advice or 
     assistance, safehouses, false documentation or 
     identification, communications equipment, facilities, 
     weapons, lethal substances, explosives, personnel (1 or more 
     individuals who may be or include oneself), and 
     transportation, except medicine or religious materials;
       ``(2) the term `training' means instruction or teaching 
     designed to impart a specific skill, as opposed to general 
     knowledge; and
       ``(3) 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
       (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 by striking ``There'' and inserting the following:
       ``(1) In general.--There is jurisdiction over an offense 
     under subsection (a) if--
       ``(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 (8 U.S.C. 1101(a)(20)));
       ``(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;

[[Page H10964]]

       ``(E) the offense occurs in or affects interstate or 
     foreign commerce; or
       ``(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).''.
       ``(2) Extraterritorial jurisdiction.--There''.
       (e) Definition.--Section 2339B(g)(4) 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 (including the 
     definitions of `training' and `expert advice or assistance' 
     in that section);''.
       (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 1 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.
       ``(j) Exception.--No person may be prosecuted under this 
     section in connection with the term `personnel', `training', 
     or `expert advice or assistance' if the provision of that 
     material support or resources to a foreign terrorist 
     organization was approved by the Secretary of State with the 
     concurrence of the Attorney General. The Secretary of State 
     may not approve the provision of any material support that 
     may be used to carry out terrorist activity (as defined in 
     section 212(a)(3)(B)(iii) of the Immigration and Nationality 
     Act).''.
       (g) Sunset Provision.--
       (1) In general.--Except as provided in paragraph (2), this 
     section and the amendments made by this section shall cease 
     to be effective on December 31, 2006.
       (2) Exception.--This section and the amendments made by 
     this section shall continue in effect with respect to any 
     particular offense that--
       (A) is prohibited by this section or amendments made by 
     this section; and
       (B) began or occurred before December 31, 2006.

     SEC. 6604. 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 H--Stop Terrorist and Military Hoaxes Act of 2004

     SEC. 6701. SHORT TITLE.

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

     SEC. 6702. HOAXES AND RECOVERY COSTS.

       (a) Prohibition on Hoaxes.--Chapter 47 of title 18, United 
     States Code, is amended by inserting after section 1037 the 
     following:

     ``Sec. 1038. False information and hoaxes

       ``(a) Criminal Violation.--
       ``(1) In general.--Whoever engages in any conduct with 
     intent to convey false or misleading information under 
     circumstances where such information may reasonably be 
     believed and where such information indicates that an 
     activity has taken, is taking, or will take place that would 
     constitute a violation of chapter 2, 10, 11B, 39, 40, 44, 
     111, or 113B of this title, section 236 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2284), or section 46502, the second 
     sentence of section 46504, section 46505 (b)(3) or (c), 
     section 46506 if homicide or attempted homicide is involved, 
     or section 60123(b) of title 49, shall--
       ``(A) be fined under this title or imprisoned not more than 
     5 years, or both;
       ``(B) if serious bodily injury results, be fined under this 
     title or imprisoned not more than 20 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.--Any person who 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--
       ``(A) shall be fined under this title, imprisoned not more 
     than 5 years, or both;
       ``(B) if serious bodily injury results, shall be fined 
     under this title, imprisoned not more than 20 years, or both; 
     and
       ``(C) if death results, shall be fined under this title, 
     imprisoned for any number of years or for life, or both.
       ``(b) Civil Action.--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 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. 6703. 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 offense involves international or 
     domestic terrorism (as defined in section 2331), imprisoned 
     not more than 8 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 international or domestic terrorism, as 
     defined in section 2331 of such title.

     SEC. 6704. 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 I--Weapons of Mass Destruction Prohibition Improvement Act of 
                                  2004

     SEC. 6801. SHORT TITLE.

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

     SEC. 6802. 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.''.

[[Page H10965]]

       (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. 6803. 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''.
       (b) Section 92 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2122) is amended--
       (1) by inserting ``, inside or outside of the United 
     States,'' after ``for any person''; and
       (2) by inserting ``participate in the development of,'' 
     after ``interstate or foreign commerce,''.
       (c) Title 18, United States Code, is amended--
       (1) in the table of sections at the beginning of chapter 
     39, by inserting after the item relating to section 831 the 
     following:

``832. Participation in nuclear and weapons of mass destruction threats 
              to the United States.'';

       (2) by inserting after section 831 the following:

     ``Sec. 832. Participation in nuclear and weapons of mass 
       destruction threats to the United States

       ``(a) Whoever, within the United States or subject to the 
     jurisdiction of the United States, willfully participates in 
     or knowingly 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 of 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 of the United States, shall be 
     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 J--Prevention of Terrorist Access to Destructive Weapons Act 
                                of 2004

     SEC. 6901. SHORT TITLE.

       This subtitle may be cited as the ``Prevention of Terrorist 
     Access to Destructive Weapons Act of 2004''.

     SEC. 6902. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) The criminal use of man-portable air defense systems 
     (referred to in this section as ``MANPADS'') presents a 
     serious threat to civil aviation worldwide, especially in the 
     hands of terrorists or foreign states that harbor them.
       (2) Atomic weapons or weapons designed to release radiation 
     (commonly known as ``dirty bombs'') could be used by 
     terrorists to inflict enormous loss of life and damage to 
     property and the environment.
       (3) Variola virus is the causative agent of smallpox, an 
     extremely serious, contagious, and sometimes fatal disease. 
     Variola virus is classified as a Category A agent by the 
     Centers for Disease Control and Prevention, meaning that it 
     is believed to pose the greatest potential threat for adverse 
     public health impact and has a moderate to high potential for 
     large-scale dissemination. The last case of smallpox in the 
     United States was in 1949. The last naturally occurring case 
     in the world was in Somalia in 1977. Although smallpox has 
     been officially eradicated after a successful worldwide 
     vaccination program, there remain two official repositories 
     of the variola virus for research purposes. Because it is so 
     dangerous, the variola virus may appeal to terrorists.
       (4) The use, or even the threatened use, of MANPADS, atomic 
     or radiological weapons, or the variola virus, against the 
     United States, its allies, or its people, poses a grave risk 
     to the security, foreign policy, economy, and environment of 
     the United States. Accordingly, the United States has a 
     compelling national security interest in preventing unlawful 
     activities that lead to the proliferation or spread of such 
     items, including their unauthorized production, construction, 
     acquisition, transfer, possession, import, or export. All of 
     these activities markedly increase the chances that such 
     items will be obtained by terrorist organizations or rogue 
     states, which could use them to attack the United States, its 
     allies, or United States nationals or corporations.
       (5) There is no legitimate reason for a private individual 
     or company, absent explicit government authorization, to 
     produce, construct, otherwise acquire, transfer, receive, 
     possess, import, export, or use MANPADS, atomic or 
     radiological weapons, or the variola virus.
       (b) Purpose.--The purpose of this subtitle is to combat the 
     potential use of weapons that have the ability to cause 
     widespread harm to United States persons and the United 
     States economy (and that have no legitimate private use) and 
     to threaten or harm the national security or foreign 
     relations of the United States.

     SEC. 6903. MISSILE SYSTEMS DESIGNED TO DESTROY AIRCRAFT.

       Chapter 113B of title 18, United States Code, is amended by 
     adding after section 2332f the following:

     ``Sec. 2332g. Missile systems designed to destroy aircraft

       ``(a) Unlawful Conduct.--
       ``(1) In general.--Except as provided in paragraph (3), it 
     shall be unlawful for any person to knowingly produce, 
     construct, otherwise acquire, transfer directly or 
     indirectly, receive, possess, import, export, or use, or 
     possess and threaten to use--
       ``(A) an explosive or incendiary rocket or missile that is 
     guided by any system designed to enable the rocket or missile 
     to--
       ``(i) seek or proceed toward energy radiated or reflected 
     from an aircraft or toward an image locating an aircraft; or
       ``(ii) otherwise direct or guide the rocket or missile to 
     an aircraft;
       ``(B) any device designed or intended to launch or guide a 
     rocket or missile described in subparagraph (A); or
       ``(C) any part or combination of parts designed or 
     redesigned for use in assembling or fabricating a rocket, 
     missile, or device described in subparagraph (A) or (B).
       ``(2) Nonweapon.--Paragraph (1)(A) does not apply to any 
     device that is neither designed nor redesigned for use as a 
     weapon.
       ``(3) Excluded conduct.--This subsection does not apply 
     with respect to--
       ``(A) conduct by or under the authority of the United 
     States or any department or agency thereof or of a State or 
     any department or agency thereof; or
       ``(B) conduct pursuant to the terms of a contract with the 
     United States or any department or agency thereof or with a 
     State or any department or agency thereof.
       ``(b) Jurisdiction.--Conduct prohibited by subsection (a) 
     is within the jurisdiction of the United States if--
       ``(1) the offense occurs in or affects interstate or 
     foreign commerce;
       ``(2) the offense occurs outside of the United States and 
     is committed by a national of the United States;
       ``(3) the offense is committed against a national of the 
     United States while the national is outside the United 
     States;
       ``(4) the offense is committed against any property that is 
     owned, leased, or used by the United States or by any 
     department or agency of the United States, whether the 
     property is within or outside the United States; or
       ``(5) an offender aids or abets any person over whom 
     jurisdiction exists under this subsection in committing an 
     offense under this section or conspires with any person over 
     whom jurisdiction exists under this subsection to commit an 
     offense under this section.

[[Page H10966]]

       ``(c) Criminal Penalties.--
       ``(1) In general.--Any person who violates, or attempts or 
     conspires to violate, subsection (a) shall be fined not more 
     than $2,000,000 and shall be sentenced to a term of 
     imprisonment not less than 25 years or to imprisonment for 
     life.
       ``(2) Other circumstances.--Any person who, in the course 
     of a violation of subsection (a), uses, attempts or conspires 
     to use, or possesses and threatens to use, any item or items 
     described in subsection (a), shall be fined not more 
     than $2,000,000 and imprisoned for not less than 30 years 
     or imprisoned for life.
       ``(3) Special circumstances.--If the death of another 
     results from a person's violation of subsection (a), the 
     person shall be fined not more than $2,000,000 and punished 
     by imprisonment for life.
       ``(d) Definition.--As used in this section, the term 
     `aircraft' has the definition set forth in section 
     40102(a)(6) of title 49, United States Code.''.

     SEC. 6904. ATOMIC WEAPONS.

       (a) Prohibitions.--Section 92 of the Atomic Energy Act of 
     1954 (42 U.S.C. 2122) is amended--
       (1) by inserting at the beginning ``a.'' before ``It'';
       (2) by inserting ``knowingly'' after ``for any person to'';
       (3) by striking ``or'' before ``export'';
       (4) by striking ``transfer or receive in interstate or 
     foreign commerce,'' before ``manufacture'';
       (5) by inserting ``receive,'' after ``acquire,'';
       (6) by inserting ``, or use, or possess and threaten to 
     use,'' before ``any atomic weapon''; and
       (7) by inserting at the end the following:
       ``b. Conduct prohibited by subsection a. is within the 
     jurisdiction of the United States if--
       ``(1) the offense occurs in or affects interstate or 
     foreign commerce; the offense occurs outside of the United 
     States and is committed by a national of the United States;
       ``(2) the offense is committed against a national of the 
     United States while the national is outside the United 
     States;
       ``(3) the offense is committed against any property that is 
     owned, leased, or used by the United States or by any 
     department or agency of the United States, whether the 
     property is within or outside the United States; or
       ``(4) an offender aids or abets any person over whom 
     jurisdiction exists under this subsection in committing an 
     offense under this section or conspires with any person over 
     whom jurisdiction exists under this subsection to commit an 
     offense under this section.''.
       (b) Violations.--Section 222 of the Atomic Energy Act of 
     1954 (42 U.S.C. 2272) is amended by--
       (1) inserting at the beginning ``a.'' before ``Whoever'';
       (2) striking ``, 92,''; and
       (3) inserting at the end the following:
       ``b. Any person who violates, or attempts or conspires to 
     violate, section 92 shall be fined not more than $2,000,000 
     and sentenced to a term of imprisonment not less than 25 
     years or to imprisonment for life. Any person who, in the 
     course of a violation of section 92, uses, attempts or 
     conspires to use, or possesses and threatens to use, any 
     atomic weapon shall be fined not more than $2,000,000 and 
     imprisoned for not less than 30 years or imprisoned for life. 
     If the death of another results from a person's violation of 
     section 92, the person shall be fined not more than 
     $2,000,000 and punished by imprisonment for life.''.

     SEC. 6905. RADIOLOGICAL DISPERSAL DEVICES.

       Chapter 113B of title 18, United States Code, is amended by 
     adding after section 2332g the following:

     ``Sec. 2332h. Radiological dispersal devices

       ``(a) Unlawful Conduct.--
       ``(1) In general.--Except as provided in paragraph (2), it 
     shall be unlawful for any person to knowingly produce, 
     construct, otherwise acquire, transfer directly or 
     indirectly, receive, possess, import, export, or use, or 
     possess and threaten to use--
       ``(A) any weapon that is designed or intended to release 
     radiation or radioactivity at a level dangerous to human 
     life; or
       ``(B) or any device or other object that is capable of and 
     designed or intended to endanger human life through the 
     release of radiation or radioactivity.
       ``(2) Exception.--This subsection does not apply with 
     respect to--
       ``(A) conduct by or under the authority of the United 
     States or any department or agency thereof; or
       ``(B) conduct pursuant to the terms of a contract with the 
     United States or any department or agency thereof.
       ``(b) Jurisdiction.--Conduct prohibited by subsection (a) 
     is within the jurisdiction of the United States if--
       ``(1) the offense occurs in or affects interstate or 
     foreign commerce;
       ``(2) the offense occurs outside of the United States and 
     is committed by a national of the United States;
       ``(3) the offense is committed against a national of the 
     United States while the national is outside the United 
     States;
       ``(4) the offense is committed against any property that is 
     owned, leased, or used by the United States or by any 
     department or agency of the United States, whether the 
     property is within or outside the United States; or
       ``(5) an offender aids or abets any person over whom 
     jurisdiction exists under this subsection in committing an 
     offense under this section or conspires with any person over 
     whom jurisdiction exists under this subsection to commit an 
     offense under this section.
       ``(c) Criminal Penalties.--
       ``(1) In general.--Any person who violates, or attempts or 
     conspires to violate, subsection (a) shall be fined not more 
     than $2,000,000 and shall sentenced to a term of imprisonment 
     not less than 25 years or to imprisonment for life.
       ``(2) Other circumstances.--Any person who, in the course 
     of a violation of subsection (a), uses, attempts or conspires 
     to use, or possesses and threatens to use, any item or items 
     described in subsection (a), shall be fined not more than 
     $2,000,000 and imprisoned for not less than 30 years or 
     imprisoned for life.
       ``(3) Special circumstances.--If the death of another 
     results from a person's violation of subsection (a), the 
     person shall be fined not more than $2,000,000 and punished 
     by imprisonment for life.''.

     SEC. 6906. VARIOLA VIRUS.

       Chapter 10 of title 18, United States Code, is amended by 
     inserting after section 175b the following:

     ``Sec. 175c. Variola virus

       ``(a) Unlawful Conduct.--
       ``(1) In general.--Except as provided in paragraph (2), it 
     shall be unlawful for any person to knowingly produce, 
     engineer, synthesize, acquire, transfer directly or 
     indirectly, receive, possess, import, export, or use, or 
     possess and threaten to use, variola virus.
       ``(2) Exception.--This subsection does not apply to conduct 
     by, or under the authority of, the Secretary of Health and 
     Human Services.
       ``(b) Jurisdiction.--Conduct prohibited by subsection (a) 
     is within the jurisdiction of the United States if--
       ``(1) the offense occurs in or affects interstate or 
     foreign commerce;
       ``(2) the offense occurs outside of the United States and 
     is committed by a national of the United States;
       ``(3) the offense is committed against a national of the 
     United States while the national is outside the United 
     States;
       ``(4) the offense is committed against any property that is 
     owned, leased, or used by the United States or by any 
     department or agency of the United States, whether the 
     property is within or outside the United States; or
       ``(5) an offender aids or abets any person over whom 
     jurisdiction exists under this subsection in committing an 
     offense under this section or conspires with any person over 
     whom jurisdiction exists under this subsection to commit an 
     offense under this section.
       ``(c) Criminal Penalties.--
       ``(1) In general.--Any person who violates, or attempts or 
     conspires to violate, subsection (a) shall be fined not more 
     than $2,000,000 and shall be sentenced to a term of 
     imprisonment not less than 25 years or to imprisonment for 
     life.
       ``(2) Other circumstances.--Any person who, in the course 
     of a violation of subsection (a), uses, attempts or conspires 
     to use, or possesses and threatens to use, any item or items 
     described in subsection (a), shall be fined not more than 
     $2,000,000 and imprisoned for not less than 30 years or 
     imprisoned for life.
       ``(3) Special circumstances.--If the death of another 
     results from a person's violation of subsection (a), the 
     person shall be fined not more than $2,000,000 and punished 
     by imprisonment for life.
       ``(d) Definition.--As used in this section, the term 
     `variola virus' means a virus that can cause human smallpox 
     or any derivative of the variola major virus that contains 
     more than 85 percent of the gene sequence of the variola 
     major virus or the variola minor virus.''.

     SEC. 6907. INTERCEPTION OF COMMUNICATIONS.

       Section 2516(1) of title 18, United States Code, is 
     amended--
       (1) in paragraph (a), by inserting ``2122 and'' after 
     ``sections'';
       (2) in paragraph (c), by inserting ``section 175c (relating 
     to variola virus),'' after ``section 175 (relating to 
     biological weapons),''; and
       (3) in paragraph (q), by inserting ``2332g, 2332h,'' after 
     ``2332f,''.

     SEC. 6908. AMENDMENTS TO SECTION 2332B(G)(5)(B) OF TITLE 18, 
                   UNITED STATES CODE.

       Section 2332b(g)(5)(B) of title 18, United States Code, is 
     amended--
       (1) in clause (i)--
       (A) by inserting before ``2339 (relating to harboring 
     terrorists)'' the following: ``2332g (relating to missile 
     systems designed to destroy aircraft), 2332h (relating to 
     radiological dispersal devices),''; and
       (B) by inserting ``175c (relating to variola virus),'' 
     after ``175 or 175b (relating to biological weapons),''; and
       (2) in clause (ii)--
       (A) by striking ``section'' and inserting ``sections 92 
     (relating to prohibitions governing atomic weapons) or''; and
       (B) by inserting ``2122 or'' before ``2284''.

     SEC. 6909. AMENDMENTS TO SECTION 1956(C)(7)(D) OF TITLE 18, 
                   UNITED STATES CODE.

       Section 1956(c)(7)(D), title 18, United States Code, is 
     amended--
       (1) by inserting after ``section 152 (relating to 
     concealment of assets; false oaths and claims; bribery),'' 
     the following: ``section 175c (relating to the variola 
     virus),'';
       (2) by inserting after ``section 2332(b) (relating to 
     international terrorist acts transcending national 
     boundaries),'' the following: ``section 2332g (relating to 
     missile systems designed to destroy aircraft), section 2332h 
     (relating to radiological dispersal devices),''; and
       (3) striking ``or'' after ``any felony violation of the 
     Foreign Agents Registration Act of 1938,'' and after ``any 
     felony violation of the Foreign Corrupt Practices Act'', 
     striking ``;'' and inserting ``, or section 92 of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2122) (relating to prohibitions 
     governing atomic weapons)''.

     SEC. 6910. EXPORT LICENSING PROCESS.

       Section 38(g)(1)(A) of the Arms Export Control Act (22 
     U.S.C. 2778) is amended--
       (1) by striking ``or'' before ``(xi)''; and

[[Page H10967]]

       (2) by inserting after clause (xi) the following: ``or 
     (xii) section 3, 4, 5, and 6 of the Prevention of Terrorist 
     Access to Destructive Weapons Act of 2004, relating to 
     missile systems designed to destroy aircraft (18 U.S.C. 
     2332g), prohibitions governing atomic weapons (42 U.S.C. 
     2122), radiological dispersal devices (18 U.S.C. 2332h), and 
     variola virus (18 U.S.C. 175b);''.

     SEC. 6911. CLERICAL AMENDMENTS.

       (a) Chapter 113B.--The table of sections for chapter 113B 
     of title 18, United States Code, is amended by inserting the 
     following after the item for section 2332f:

``2332g. Missile systems designed to destroy aircraft.
``2332h. Radiological dispersal devices.''.

       (b) Chapter 10.--The table of sections for chapter 10 of 
     title 18, United States Code, is amended by inserting the 
     following item after the item for section 175b:

``175c. Variola virus.''.
              Subtitle K--Pretrial Detention of Terrorists

     SEC. 6951. SHORT TITLE.

       This subtitle may be cited as the ``Pretrial Detention of 
     Terrorists Act of 2004''.

     SEC. 6952. PRESUMPTION FOR PRETRIAL DETENTION IN CASES 
                   INVOLVING TERRORISM.

       Section 3142 of title 18, United States Code, is amended--
       (1) in subsection (e)--
       (A) by inserting ``or'' before ``the Maritime''; and
       (B) by inserting ``or an offense listed in section 
     2332b(g)(5)(B) of title 18, United States Code, for which a 
     maximum term of imprisonment of 10 years or more is 
     prescribed'' after ``or 2332b of this title,''; and
       (2) in subsections (f)(1)(A) and (g)(1), by inserting ``, 
     or an offense listed in section 2332b(g)(5)(B) for which a 
     maximum term of imprisonment of 10 years or more is 
     prescribed'' after ``violence'' each place such term appears.
      TITLE VII--IMPLEMENTATION OF 9/11 COMMISSION RECOMMENDATIONS

     SEC. 7001. SHORT TITLE.

       This title may be cited as the ``9/11 Commission 
     Implementation Act of 2004''.
  Subtitle A--Diplomacy, Foreign Aid, and the Military in the War on 
                               Terrorism

     SEC. 7101. FINDINGS.

       Consistent with the report of the National Commission on 
     Terrorist Attacks Upon the United States, Congress makes the 
     following findings:
       (1) Long-term success in the war on terrorism demands the 
     use of all elements of national power, including diplomacy, 
     military action, intelligence, covert action, law 
     enforcement, economic policy, foreign aid, public diplomacy, 
     and homeland defense.
       (2) To win the war on terrorism, the United States must 
     assign to economic and diplomatic capabilities the same 
     strategic priority that is assigned to military capabilities.
       (3) The legislative and executive branches of the 
     Government of the United States must commit to robust, long-
     term investments in all of the tools necessary for the 
     foreign policy of the United States to successfully 
     accomplish the goals of the United States.
       (4) The investments referred to in paragraph (3) will 
     require increased funding to United States foreign affairs 
     programs in general, and to priority areas as described in 
     this title in particular.

     SEC. 7102. 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 21st century, terrorists are often focusing 
     on remote regions and failing states as locations to seek 
     sanctuary.
       (b) Sense of Congress on 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 foreign countries that are being used as 
     terrorist sanctuaries;
       (2) to assess current United States resources and tools 
     being used to assist foreign governments to eliminate such 
     sanctuaries;
       (3) to develop and implement a coordinated strategy to 
     prevent terrorists from using such foreign countries as 
     sanctuaries; and
       (4) to work in bilateral and multilateral fora to elicit 
     the cooperation needed to identify and address terrorist 
     sanctuaries that may exist today, but, so far, remain unknown 
     to governments.
       (c) Amendments to Existing Law To Include Terrorist 
     Sanctuaries.--
       (1) In general.--Section 6(j) of the Export Administration 
     Act of 1979 (50 U.S.C. App. 2405(j)) is amended--
       (A) by redesignating paragraph (5) as paragraph (6); and
       (B) by inserting after paragraph (4) the following:
       ``(5)(A) As used in paragraph (1), the term `repeatedly 
     provided support for acts of international terrorism' shall 
     include the recurring use of any part of the territory of the 
     country as a sanctuary for terrorists or terrorist 
     organizations.
       ``(B) In this paragraph--
       ``(i) the term `territory of a country' means the land, 
     waters, and airspace of the country; and
       ``(ii) the term `sanctuary' means an area in the territory 
     of a country--
       ``(I) that is used by a terrorist or terrorist 
     organization--

       ``(aa) to carry out terrorist activities, including 
     training, financing, and recruitment; or
       ``(bb) as a transit point; and

       ``(II) the government of which expressly consents to, or 
     with knowledge, allows, tolerates, or disregards such use of 
     its territory.''.
       (2) Rule of construction.--Nothing in this subsection or 
     the amendments made by this subsection shall be construed as 
     affecting any determination made by the Secretary of State 
     pursuant to section 6(j) of the Export Administration Act of 
     1979 with respect to a country prior to the date of enactment 
     of this Act.
       (3) Implementation.--The President shall implement the 
     amendments made by paragraph (1) by exercising the 
     authorities of the President under the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
       (d) Amendments to Global Patterns of Terrorism Report.--
       (1) In general.--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 as a sanctuary for 
     terrorists or terrorist organizations;''.
       (2) Contents.--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) in paragraph (3), as redesignated, by striking the 
     period at the end and inserting a semicolon; and
       (E) by inserting after paragraph (3) the following:
       ``(4) a strategy for addressing, and where possible 
     eliminating, terrorist sanctuaries that shall include--
       ``(A) a description of 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 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; and
       ``(5) an update of the information contained in the report 
     required to be transmitted to Congress under 7119(b) of the 
     9/11 Commission Implementation Act of 2004.''.
       (3) Definitions.--Section 140(d) of the Foreign Relations 
     Authorization Act, Fiscal Years 1988 and 1989 (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 terms `territory' and `territory of the country' 
     mean the land, waters, and airspace of the country; and
       ``(5) the terms `terrorist sanctuary' and `sanctuary' mean 
     an area in the territory of the country--
       ``(A) that is used by a terrorist or terrorist 
     organization--
       ``(i) to carry out terrorist activities, including 
     training, fundraising, financing, and recruitment; or
       ``(ii) as a transit point; and
       ``(B) the government of which expressly consents to, or 
     with knowledge, allows, tolerates, or disregards such use of 
     its territory and is not subject to a determination under--
       ``(i) section 6(j)(1)(A) of the Export Administration Act 
     of 1979 (50 U.S.C. App. 2405(j)(1)(A));
       ``(ii) section 620A(a) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2371(a)); or
       ``(iii) section 40(d) of the Arms Export Control Act (22 
     U.S.C. 2780(d)).''.
       (4) Effective date.--The amendments made by this subsection 
     apply with respect to the report required to be transmitted 
     under section 140 of the Foreign Relations Authorization Act, 
     Fiscal Years 1988 and 1989 (22 U.S.C. 2656f), by April 30, 
     2006, and by April 30 of each subsequent year.

     SEC. 7103. UNITED STATES COMMITMENT TO THE FUTURE OF 
                   PAKISTAN.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks

[[Page H10968]]

     Upon the United States, Congress makes the following 
     findings:
       (1) The Government of Pakistan has a critical role to 
     perform in the struggle against terrorism.
       (2) Due to its location, topography, social conditions, and 
     other factors, Pakistan can be attractive to extremists 
     seeking refuge or opportunities to recruit or train, or a 
     place from which to operate against Coalition Forces in 
     Afghanistan.
       (3) A stable Pakistan, with a moderate, responsible 
     government that serves as a voice of tolerance in the Muslim 
     world, is critical to stability in the region.
       (b) Sense of Congress.--It is the sense of Congress that 
     the United States should--
       (1) help to ensure a promising, stable, and secure future 
     for Pakistan over the long term;
       (2) provide a comprehensive program of assistance to 
     encourage and enable Pakistan--
       (A) to continue and improve upon its commitment to 
     combating extremists;
       (B) to seek to resolve any outstanding difficulties with 
     its neighbors and other countries in its region;
       (C) to continue to make efforts to fully control its 
     territory and borders;
       (D) to progress toward becoming a more effective and 
     participatory democracy;
       (E) to participate more vigorously in the global 
     marketplace and to continue to modernize its economy;
       (F) to take all necessary steps to halt the spread of 
     weapons of mass destruction;
       (G) to improve and expand access to education for all 
     citizens; and
       (H) to increase the number and level of exchanges between 
     the Pakistani people and the American people; and
       (3) continue to provide assistance to Pakistan at not less 
     than the overall levels requested by the President for fiscal 
     year 2005.
       (c) 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''.

     SEC. 7104. ASSISTANCE FOR AFGHANISTAN.

       (a) Short Title.--This section may be cited as the 
     ``Afghanistan Freedom Support Act Amendments of 2004''.
       (b) Coordination of assistance.--
       (1) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (A) 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.
       (B) 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--
       (i) improving security throughout the country;
       (ii) disarming and demobilizing militias;
       (iii) curtailing the rule of the warlords;
       (iv) promoting equitable economic development;
       (v) protecting the human rights of the people of 
     Afghanistan;
       (vi) continuing to hold elections for public officials; and
       (vii) ending the cultivation, production, and trafficking 
     of narcotics.
       (C) The United States and the international community must 
     make a long-term commitment to addressing the unstable 
     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.
       (2) Sense of congress.--It is the sense of Congress that 
     the United States Government should take, with respect to 
     Afghanistan, the following actions:
       (A) Work 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.
       (B) Use 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.
       (C) Take 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) Coordinator for Assistance.--
       (1) Findings.--Congress makes the following findings:
       (A) 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.
       (B) The Afghanistan Freedom Support Act of 2002 (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.
       (2) 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''.
       (d) Assistance Plan; International Coordination.--Section 
     104 of the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
     7514) is amended by adding at the end the following:
       ``(c) Assistance Plan.--
       ``(1) Submission to congress.--The coordinator designated 
     under subsection (a) shall annually submit the Afghanistan 
     assistance plan of the Administration to--
       ``(A) the Committee on Foreign Relations of the Senate;
       ``(B) the Committee on International Relations of the House 
     of Representatives;
       ``(C) the Committee on Appropriations of the Senate; and
       ``(D) the Committee on Appropriations of the House of 
     Representatives.
       ``(2) Contents.--The assistance plan submitted under 
     paragraph (1) shall describe--
       ``(A) how the plan relates to the strategy provided 
     pursuant to section 304; and
       ``(B) how the plan builds upon United States assistance 
     provided to Afghanistan since 2001.
       ``(d) Coordination With International Community.--
       ``(1) In general.--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.
       ``(2) International financial institutions.--The 
     coordinator designated under subsection (a), under the 
     direction of the Secretary of State, shall work through the 
     Secretary of the Treasury and the United States Executive 
     Directors at the international financial institutions (as 
     defined in section 1701(c)(2) of the International Financial 
     Institutions Act (22 U.S.C. 262r(c)(2))) to coordinate United 
     States assistance for Afghanistan with international 
     financial institutions.
       (e) General Provisions Relating to the Afghanistan Freedom 
     Support Act of 2002.--
       (1) Assistance to promote economic, political and social 
     development.--
       (A) 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.
       (B) 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''.
       (2) Declarations of general policy.--Congress makes the 
     following declarations:
       (A) 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.
       (B) 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, including by warlords 
     or narcotics traffickers.
       (C) 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.
       (3) Form of reports.--Section 304 of the Afghanistan 
     Freedom Support Act of 2002 (22 U.S.C. 7554) is amended--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(a) In General.--The Secretary'';
       (B) by striking ``The first report'' and inserting the 
     following:
       ``(b) Deadline For Submission.--The first report''; and
       (C) by adding at the end the following:
       ``(c) Form of Reports.--Any report or other matter that is 
     required to be submitted to Congress (including a committee 
     of Congress) by this Act may contain a classified annex.''.
       (4) Long-term strategy.--
       (A) Strategy.--Title III of the Afghanistan Freedom Support 
     Act of 2002 (22 U.S.C. 7551 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 305. FORMULATION OF LONG-TERM STRATEGY FOR 
                   AFGHANISTAN.

       ``(a) Strategy.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the President shall formulate a 
     5-year strategy for Afghanistan and submit such strategy to--
       ``(A) the Committee on Foreign Relations of the Senate;
       ``(B) the Committee on International Relations of the House 
     of Representatives;

[[Page H10969]]

       ``(C) the Committee on Appropriations of the Senate; and
       ``(D) the Committee on Appropriations of the House of 
     Representatives.
       ``(2) Contents.--The strategy formulated under paragraph 
     (1) shall include specific and measurable 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, as well as the 
     anticipated costs and time frames associated with achieving 
     those goals.
       ``(b) Monitoring.--
       ``(1) Annual report.--The President shall transmit on an 
     annual basis through 2010 a report describing the progress 
     made toward the implementation of the strategy required by 
     subsection (a) and any changes to the strategy since the date 
     of the submission of the last report to--
       ``(A) the Committee on Foreign Relations of the Senate;
       ``(B) the Committee on International Relations of the House 
     of Representatives;
       ``(C) the Committee on Appropriations of the Senate; and
       ``(D) the Committee on Appropriations of the House of 
     Representatives.''.
       (B) 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 new item:

``Sec. 305. Formulation of long-term strategy for Afghanistan.''.

       (f) Education, the Rule of Law, and Related Issues.--
       (1) Declaration of policy.--Congress declares that, 
     although Afghanistan has adopted a new constitution and made 
     progress on primary education, the United States must invest 
     in a concerted effort in Afghanistan to improve the rule of 
     law, good governance, and effective policing, to accelerate 
     work on secondary and university education systems, and to 
     establish new initiatives to increase the capacity of civil 
     society.
       (2) Amendment.--Section 103(a)(5) of the Afghanistan 
     Freedom Support Act of 2002 (22 U.S.C. 7513(a)(5)) is amended 
     to read as follows:
       ``(5) Education, the rule of law, and related issues.--
       ``(A) Education.--To assist in the development of the 
     capacity of the Government of Afghanistan to provide 
     education to the people of Afghanistan, including assistance 
     such as--
       ``(i) support for an educated citizenry through improved 
     access to basic education, with particular emphasis on basic 
     education for children, especially orphans;
       ``(ii) programs to enable the Government of Afghanistan to 
     recruit and train teachers, with special focus on the 
     recruitment and training of female teachers;
       ``(iii) programs to enable the Government of Afghanistan to 
     develop school curricula that incorporate relevant 
     information such as landmine awareness, food security and 
     agricultural education, civic education, and human rights 
     education, including education relating to religious freedom;
       ``(iv) programs to construct, renovate, or rebuild, and to 
     equip and provide teacher training, for primary schools, 
     secondary schools, and universities; and
       ``(v) programs to increase educational exchanges and 
     partnerships between the United States and Afghanistan.
       ``(B) Rule of law.--To assist in the development of the 
     rule of law and good governance and reduced corruption in 
     Afghanistan, including assistance such as--
       ``(i) support for the activities of the Government of 
     Afghanistan to implement its constitution, to develop modern 
     legal codes and court rules, to provide for the creation of 
     legal assistance programs, and other initiatives to promote 
     the rule of law in Afghanistan;
       ``(ii) support for improvements in the capacity and 
     physical infrastructure of the justice system in Afghanistan, 
     such as for professional training (including for women) to 
     improve the administration of justice, for programs to 
     enhance prosecutorial and judicial capabilities and to 
     protect participants in judicial cases, for improvements in 
     the instruction of law enforcement personnel (including human 
     rights training), and for the promotion of civilian police 
     roles that support democracy;
       ``(iii) support for rehabilitation and rebuilding of 
     courthouses and detention facilities;
       ``(iv) 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, and to establish a responsible and community-
     based police force;
       ``(v) support to increase the transparency, accountability, 
     and participatory nature of governmental institutions, 
     including programs designed to combat corruption and other 
     programs for the promotion of good governance, such as the 
     development of regulations relating to financial disclosure 
     for public officials, political parties, and candidates for 
     public office, and transparent budgeting processes and 
     financial management systems;
       ``(vi) support for establishment of a central bank and 
     central budgeting authority;
       ``(vii) support for international organizations that 
     provide civil advisers to the Government of Afghanistan; and
       ``(viii) support for Afghan and international efforts to 
     investigate human rights atrocities committed in Afghanistan 
     by the Taliban regime, opponents of such regime, and 
     terrorist groups operating in Afghanistan, including the 
     collection of forensic evidence relating to such atrocities.
       ``(C) Civil society and democracy.--To support the 
     development of democratic institutions in Afghanistan, 
     including assistance for--
       ``(i) international monitoring and observing of, and the 
     promotion of, free and fair elections;
       ``(ii) strengthening democratic political parties;
       ``(iii) international exchanges and professional training 
     for members or officials of government, political, and civic 
     or other nongovernmental entities;
       ``(iv) national, regional, and local elections and 
     political party development;
       ``(v) an independent media;
       ``(vi) programs that support the expanded participation of 
     women and members of all ethnic groups in government at 
     national, regional, and local levels; and
       ``(vii) programs to strengthen civil society organizations 
     that promote human rights, including religious freedom, 
     freedom of expression, and freedom of association, and 
     support human rights monitoring.
       ``(D) Protection of sites.--To provide for the protection 
     of Afghanistan's culture, history, and national identity, 
     including the rehabilitation of Afghanistan's museums and 
     sites of cultural significance.''.
       (3) Conforming amendment.--Section 103(a)(4) of the 
     Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
     7513(a)(4)) is amended--
       (A) in subparagraph (K), by striking ``and'' at the end;
       (B) in subparagraph (L), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(M) assistance in identifying and surveying key road and 
     rail routes that are essential for economic renewal in 
     Afghanistan and the region and support for the establishment 
     of a customs service and training for customs officers.''.
       (g) Monitoring of Assistance for Afghanistan.--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) Monitoring of Assistance for Afghanistan.--
       ``(1) Report.--
       ``(A) In general.--The Secretary of State, in consultation 
     with the Administrator for the United States Agency for 
     International Development, shall submit to the Committee on 
     Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives a 
     report on the obligations of United States assistance for 
     Afghanistan from all United States Government departments and 
     agencies.
       ``(B) Contents.--Each such report shall set forth, for the 
     preceding annual period and cumulatively, a description of--
       ``(i) the activities and the purposes for which funds were 
     obligated;
       ``(ii) the source of the funds stated specifically by 
     fiscal year, agency, and program;
       ``(iii) the participation of each United States Government 
     department or agency; and
       ``(iv) such other information as the Secretary considers 
     appropriate to fully inform Congress on such matters.
       ``(C) Additional requirements.--The first report submitted 
     under this paragraph shall include a cumulative account of 
     information described in subparagraph (B) from all prior 
     periods beginning with fiscal year 2001. The first report 
     under this paragraph shall be submitted not later than March 
     15, 2005. Subsequent reports shall be submitted every 12 
     months thereafter and may be included in the report required 
     under section 206(c)(2).
       ``(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 
     under paragraph (1).''.
       (h) United States Policy To Support Disarmament of Private 
     Militias and Expansion of International Peacekeeping and 
     Security Operations in Afghanistan.--
       (1) United states policy relating to disarmament of private 
     militias.--
       (A) 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.
       (B) Report.--The report required under section 206(c)(2) of 
     the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
     7536(c)(2)) shall include a description of the progress to 
     implement paragraph (1).
       (2) International peacekeeping and security operations.--
     Section 206 of such Act (22 U.S.C. 7536) is 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.''.
       (i) 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:

[[Page H10970]]

       ``(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 a 
     report on the efforts carried out pursuant to subparagraph 
     (A) to the Committee on Foreign Relations of the Senate and 
     the Committee on International Relations of the House of 
     Representatives. 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 6 months thereafter and may be included in 
     the report required by subsection (c)(2).''.
       (j) Provisions Relating to Counternarcotics Efforts in 
     Afghanistan.--
       (1) Authorization of assistance.--Section 103(a)(3)(A) of 
     the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
     7513(a)(3)(A)) is amended--
       (A) in clause (i), by striking ``establish crop 
     substitution programs,'' and inserting ``promote 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,'';
       (B) in clause (ii), by inserting before the semicolon at 
     the end the following: ``, and to create special 
     counternarcotics courts, prosecutors, and places of 
     incarceration'';
       (C) in clause (iii), by inserting before the semicolon at 
     the end the following: ``, in particular, notwithstanding 
     section 660 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2420), by providing non-lethal 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 2005 through 2008, for salaries 
     for special counternarcotics police and supporting units'';
       (D) in clause (iv), by striking ``and'' at the end;
       (E) in clause (v), by striking the period at the end and 
     inserting ``; and''; and
       (F) by adding after clause (v) the following:
       ``(vi) assist the Afghan National Army with respect to any 
     of the activities under this paragraph.''.
       (2) Sense of congress and report.--Title II of the 
     Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7531 et 
     seq.) is amended--
       (A) by redesignating sections 207 and 208 as sections 208 
     and 209, respectively; and
       (B) by inserting after section 206 the following:

     ``SEC. 207. 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 toward 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.''.
       (3) Clerical amendment.--The table of contents for such Act 
     (22 U.S.C. 7501 note) is amended by striking the items 
     relating to sections 207 and 208 and inserting the following:

``Sec. 207. Sense of Congress and report regarding counter-drug efforts 
              in Afghanistan.
``Sec. 208. Relationship to other authority.
``Sec. 209. Authorization of appropriations.''.

       (k) Additional Amendments to Afghanistan Freedom Support 
     Act of 2002.--
       (1) Extension of reports on implementation of strategy.--
     Section 206(c)(2) of the Afghanistan Freedom Support Act of 
     2002 (22 U.S.C. 7536(c)(2)) is amended in the matter 
     preceding subparagraph (A) by striking ``2007'' and inserting 
     ``2010''.
       (2) Technical amendment.--Section 103(a)(7)(A)(xii) of such 
     Act (22 U.S.C. 7513(a)(7)(A)(xii)) is amended by striking 
     ``National'' and inserting ``Afghan Independent''.
       (l) Repeal of Prohibition on Assistance.--Section 620D of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2374; relating 
     to prohibition on assistance to Afghanistan) is repealed.
       (m) Authorization of Appropriations.--Section 108(a) of the 
     Afghanistan Freedom Assistance Act of 2002 (22 U.S.C. 
     7518(a)) is amended by striking ``$1,825,000,000 for fiscal 
     year 2004'' and all that follows and inserting ``such sums as 
     may be necessary for each of the fiscal years 2005 and 
     2006.''.

     SEC. 7105. THE RELATIONSHIP BETWEEN THE UNITED STATES AND 
                   SAUDI ARABIA.

       (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, there have been problems in cooperation 
     between the United States and Saudi Arabia.
       (2) The Government of Saudi Arabia has not always responded 
     promptly or fully to United States requests for assistance in 
     the global war on Islamist terrorism.
       (3) The Government of Saudi Arabia has not done all it can 
     to prevent financial or other support from being provided to, 
     or reaching, extremist organizations in Saudi Arabia or other 
     countries.
       (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, and the Government of Saudi Arabia is now 
     pursuing al Qaeda and other terror groups operating inside 
     Saudi Arabia.
       (5) The United States must enhance its cooperation and 
     strong relationship with Saudi Arabia based upon a shared and 
     public commitment to political and economic reform, greater 
     tolerance and respect for religious and cultural diversity 
     and joint efforts to prevent funding for and support of 
     extremist organizations in Saudi Arabia and elsewhere.
       (b) Sense of Congress.--It is the sense of Congress that 
     there should be a more robust dialogue between the people and 
     Government of the United States and the people and Government 
     of Saudi Arabia in order to improve the relationship between 
     the United States and Saudi Arabia.

     SEC. 7106. EFFORTS TO COMBAT ISLAMIST 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 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 countries with predominantly Muslim 
     populations and influential broadcasters who reach Muslim 
     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 to the people and governments of other 
     countries;
       (2) the United States should cooperate with governments of 
     countries with predominantly Muslim populations 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 
     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 Muslims; and
       (4) the United States should work to defeat extremism in 
     all its form, especially in nations with predominantly Muslim 
     populations by providing assistance to governments, non-
     governmental organizations, and individuals who promote 
     modernization.

     SEC. 7107. 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 repressive dictatorships have 
     often been 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 
     importance of individual educational and economic 
     opportunity, encourage widespread political participation, 
     condemn 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 encourage the 
     governments of all countries with predominantly Muslim 
     populations, including those that are friends and allies of 
     the United States, to promote the value of life and the 
     importance of individual education and economic opportunity, 
     encourage widespread political participation, condemn 
     violence and promote the rule of law, openness in discussing 
     differences among people, and tolerance for opposing points 
     of view.

     SEC. 7108. PROMOTION OF FREE MEDIA AND OTHER AMERICAN VALUES.

       (a) Promotion of United States Values Through Broadcast 
     Media.--
       (1) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (A) Although the United States has demonstrated and 
     promoted its values in defending

[[Page H10971]]

     Muslims against tyrants and criminals in Somalia, Bosnia, 
     Kosovo, Afghanistan, and Iraq, this message is neither 
     convincingly presented nor widely understood.
       (B) If the United States does not act to vigorously define 
     its message in countries with predominantly Muslim 
     populations, the image of the United States will be defined 
     by Islamic extremists who seek to demonize the United States.
       (C) Recognizing that many Muslim audiences rely on 
     satellite television and radio, the United States Government 
     has launched promising initiatives in television and radio 
     broadcasting to the Islamic world, including Iran and 
     Afghanistan.
       (2) Sense of congress.--It is the sense of Congress that--
       (A) the United States must do more to defend and promote 
     its values and ideals to the broadest possible audience in 
     countries with predominantly Muslim populations;
       (B) United States efforts to defend and promote these 
     values and ideals are beginning to ensure that accurate 
     expressions of these values reach large Muslim audiences and 
     should be robustly supported;
       (C) the United States Government could and should do more 
     to engage Muslim audiences in the struggle of ideas; and
       (D) the United States Government should more intensively 
     employ existing broadcast media in the Islamic world as part 
     of this engagement.
       (b) Enhancing Free and Independent Media.--
       (1) Findings.--Congress makes the following findings:
       (A) Freedom of speech and freedom of the press are 
     fundamental human rights.
       (B) 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.
       (C) Free media is undermined, endangered, or nonexistent in 
     many repressive and transitional societies around the world, 
     including in Eurasia, Africa, and the Middle East.
       (D) Individuals lacking access to a plurality of free media 
     are vulnerable to misinformation and propaganda and are 
     potentially more likely to adopt anti-United States views.
       (E) Foreign governments have a responsibility to actively 
     and publicly discourage and rebut unprofessional and 
     unethical media while respecting journalistic integrity and 
     editorial independence.
       (2) Statement of policy.--It shall be the policy of the 
     United States, acting through the Secretary of State, to--
       (A) ensure that the promotion of freedom of the press and 
     freedom of media worldwide is a priority of United States 
     foreign policy and an integral component of United States 
     public diplomacy;
       (B) respect the journalistic integrity and editorial 
     independence of free media worldwide; and
       (C) ensure that widely accepted standards for professional 
     and ethical journalistic and editorial practices are employed 
     when assessing international media.
       (c) Establishment of Media Network.--
       (1) Grants for establishment of network.--The Secretary of 
     State shall, utilizing amounts authorized to be appropriated 
     by subsection (e)(2), make grants to the National Endowment 
     for Democracy (NED) under the National Endowment for 
     Democracy Act (22 U.S.C. 4411 et seq.) for utilization by the 
     Endowment to provide funding to a private sector group to 
     establish and manage a free and independent media network as 
     specified in paragraph (2).
       (2) Media network.--The media network established using 
     funds under paragraph (1) shall 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 in order 
     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.
       (d) Authorizations of Appropriations.--
       (1) In general.--There are authorized to be appropriated 
     for each of fiscal years 2005 and 2006, unless otherwise 
     authorized by Congress, such sums as may be necessary to 
     carry out United States Government broadcasting activities 
     consistent with this section 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, unless otherwise 
     authorized by Congress.
       (2) Grants for media network.--In addition to the amounts 
     authorized to be appropriated under paragraph (1), there are 
     authorized to be appropriated for each of fiscal years 2005 
     and 2006, unless otherwise authorized by Congress, such sums 
     as may be necessary for grants under subsection (c)(1) for 
     the establishment of the media network described in 
     subsection (c)(2).

     SEC. 7109. PUBLIC DIPLOMACY RESPONSIBILITIES OF THE 
                   DEPARTMENT OF STATE.

       (a) In General.--The State Department Basic Authorities Act 
     of 1956 (22 U.S.C. 2651a et seq.) is amended by inserting 
     after section 59 the following new section:

     ``SEC. 60. PUBLIC DIPLOMACY RESPONSIBILITIES OF THE 
                   DEPARTMENT OF STATE.

       ``(a) Integral Component.--The Secretary of State shall 
     make public diplomacy an integral component in the planning 
     and execution of United States foreign policy.
       ``(b) Coordination and Development of Strategy.--The 
     Secretary shall make every effort to--
       ``(1) coordinate, subject to the direction of the 
     President, the public diplomacy activities of Federal 
     agencies; and
       ``(2) coordinate with the Broadcasting Board of Governors 
     to--
       ``(A) develop a comprehensive and coherent strategy for the 
     use of public diplomacy resources; and
       ``(B) develop and articulate long-term measurable 
     objectives for United States public diplomacy.
       ``(c) Objectives.--The strategy developed pursuant to 
     subsection (b) shall include public diplomacy efforts 
     targeting developed and developing countries and select and 
     general audiences, using appropriate media to properly 
     explain the foreign policy of the United States to the 
     governments and populations of such countries, with the 
     objectives of increasing support for United States policies 
     and providing news and information. The Secretary shall, 
     through the most effective mechanisms, counter misinformation 
     and propaganda concerning the United States. The Secretary 
     shall continue to articulate the importance of freedom, 
     democracy, and human rights as fundamental principles 
     underlying United States foreign policy goals.
       ``(d) Identification of United States Foreign Assistance.--
     In cooperation with the United States Agency for 
     International Development (USAID) and other public and 
     private assistance organizations and agencies, the Secretary 
     should ensure that information relating to foreign assistance 
     provided by the United States, nongovernmental organizations, 
     and private entities of the United States is disseminated 
     widely, and particularly, to the extent practicable, within 
     countries and regions that receive such assistance. The 
     Secretary should ensure that, to the extent practicable, 
     projects funded by USAID not involving commodities, including 
     projects implemented by private voluntary organizations, are 
     identified as provided by the people of the United States.''.
       (b) Functions of the Under Secretary of State for Public 
     Diplomacy.--
       (1) Amendment.--Section 1(b)(3) of such Act (22 U.S.C. 
     2651a(b)(3)) is amended by adding at the end the following 
     new sentence: ``The Under Secretary for Public Diplomacy 
     shall--
       ``(A) prepare an annual strategic plan for public diplomacy 
     in collaboration with overseas posts and in consultation with 
     the regional and functional bureaus of the Department;
       ``(B) ensure the design and implementation of appropriate 
     program evaluation methodologies;
       ``(C) provide guidance to Department personnel in the 
     United States and overseas who conduct or implement public 
     diplomacy policies, programs, and activities;
       ``(D) assist the United States Agency for International 
     Development and the Broadcasting Board of Governors to 
     present the policies of the United States clearly and 
     effectively; and
       ``(E) submit statements of United States policy and 
     editorial material to the Broadcasting Board of Governors for 
     broadcast consideration.''.
       (2) Consultation.--The Under Secretary of State for Public 
     Diplomacy, in carrying out the responsibilities described in 
     section 1(b)(3) of such Act (as amended by paragraph (1)), 
     shall consult with public diplomacy officers operating at 
     United States overseas posts and in the regional bureaus of 
     the Department of State.

     SEC. 7110. PUBLIC DIPLOMACY TRAINING.

       (a) Statement of Policy.--The following 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--
       (A) should emphasize the importance of public diplomacy and 
     applicable skills and techniques;
       (B) should consider the priority recruitment into the 
     Foreign Service, including at middle-level entry, of 
     individuals with expertise and professional experience in 
     public diplomacy, mass communications, or journalism; and
       (C) 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 countries with 
     predominantly Muslim populations. Such increase should be 
     accomplished through the recruitment of new officers and 
     incentives for officers in service.
       (c) Public Diplomacy Suggested for Promotion in Foreign 
     Service.--Section 603(b) of the Foreign Service Act of 1980 
     (22 U.S.C.

[[Page H10972]]

     4003(b)) is amended by adding at the end the following: ``The 
     precepts for selection boards shall include, whether the 
     member of the Service or the member of the Senior Foreign 
     Service, as the case may be, has demonstrated--
       (1) a willingness and ability to explain United States 
     policies in person and through the media when occupying 
     positions for which such willingness and ability is, to any 
     degree, an element of the member's duties, or
       (2) other experience in public diplomacy.

     SEC. 7111. PROMOTING DEMOCRACY AND HUMAN RIGHTS AT 
                   INTERNATIONAL ORGANIZATIONS.

       (a) Support and Expansion of Democracy Caucus.--
       (1) In general.--The President, acting through the 
     Secretary of State and the relevant United States chiefs of 
     mission, should--
       (A) 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
       (B) seek to establish a democracy caucus at the United 
     Nations Conference on Disarmament and at other broad-based 
     international organizations.
       (2) Purposes of the caucus.--A democracy caucus at an 
     international organization should--
       (A) 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;
       (B) work to revise an increasingly outmoded system of 
     membership selection, regional voting, and decisionmaking; 
     and
       (C) 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.
       (b) Leadership and Membership of International 
     Organizations.--The President, acting through the Secretary 
     of State, the relevant United States chiefs of mission, and, 
     where appropriate, the Secretary of the Treasury, should 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 significant 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 significant leadership position in such organizations, 
     or for membership on the United Nations Security Council, if 
     the government of the member country has been determined by 
     the Secretary of State to have repeatedly provided support 
     for acts of international terrorism.
       (c) Increased Training in Multilateral Diplomacy.--
       (1) Statement of policy.--It shall be the policy of the 
     United States that training courses should be established for 
     Foreign Service Officers and civil service employees of the 
     State Department, including appropriate chiefs of mission, on 
     the conduct of multilateral diplomacy, including the conduct 
     of negotiations at international organizations and 
     multilateral institutions, negotiating skills that are 
     required at multilateral settings, coalition-building 
     techniques, and lessons learned from previous United States 
     multilateral negotiations.
       (2) Personnel.--
       (A) In general.--The Secretary shall ensure that the 
     training described in paragraph (1) is provided at various 
     stages of the career of members of the Service.
       (B) Actions of the Secretary.--The Secretary shall ensure 
     that--
       (i) 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
       (ii) 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 toward such organizations and 
     institutions or toward 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.
       (3) 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 paragraph (2) receive training 
     described in paragraph (1) prior to the beginning of service 
     for such assignment or, if receiving such training at such 
     time is not practical, within the first year of beginning 
     such assignment.

     SEC. 7112. EXPANSION 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) Declaration of Policy.--Consistent with the report of 
     the National Commission on Terrorist Attacks Upon the United 
     States, Congress declares that--
       (1) 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;
       (2) 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; and
       (3) 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.
       (c) 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 (b).
       (d) Authority To Expand Educational and Cultural 
     Exchanges.--The President is authorized to substantially 
     expand the exchange, scholarship, and library programs of the 
     United States, especially such programs that benefit people 
     in the Muslim world.
       (e) Availability of Funds.--Of the amounts authorized to be 
     appropriated in each of the fiscal years 2005 and 2006 for 
     educational and cultural exchange programs, there shall be 
     available to the Secretary of State such sums as may be 
     necessary to carry out programs under this section, unless 
     otherwise authorized by Congress.

     SEC. 7112. PILOT PROGRAM TO PROVIDE GRANTS TO AMERICAN-
                   SPONSORED SCHOOLS IN PREDOMINANTLY MUSLIM 
                   COUNTRIES TO PROVIDE SCHOLARSHIPS.

       (a) Findings.--Congress makes the following findings:
       (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) United States-sponsored elementary and secondary 
     schools are located in more than 20 countries with 
     predominantly Muslim populations in the Near East, Africa, 
     South Asia, Central Asia, and East Asia.
       (3) United States-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) Statement of Policy.--The United States has an interest 
     in increasing the level of financial support provided to 
     United States-sponsored elementary and secondary schools in 
     countries with predominantly Muslim populations 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.--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 United States-sponsored elementary and secondary 
     schools in countries with predominantly Muslim populations 
     for the purpose of providing full or partial merit-based 
     scholarships to students from lower-income and middle-income 
     families of such countries to attend such schools.
       (d) Determination of Eligible Students.--For purposes of 
     the pilot program, a United States-sponsored elementary and 
     secondary school that receives a grant under the pilot 
     program may establish criteria to be implemented by such 
     school to determine what constitutes lower-income 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 
     a United States-sponsored elementary or secondary school in a 
     predominantly Muslim country.
       (g) Report.--Not later than April 15, 2006, 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 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 for each of the fiscal years 2005 and 
     2006, unless otherwise authorized by Congress, such sums as 
     necessary

[[Page H10973]]

     to implement the pilot program under this section.

     SEC. 7113. 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 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, efforts 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.--The Secretary of State is authorized to 
     establish through an existing international organization, 
     such as the United Nations Educational, Science and Cultural 
     Organization (UNESCO) or other similar body, an International 
     Youth Opportunity Fund to provide financial assistance for 
     the improvement of public education in the Middle East and 
     other countries of strategic interest with predominantly 
     Muslim populations.
       (2) International participation.--The Secretary should seek 
     the cooperation of the international community in 
     establishing and generously supporting the Fund.

     SEC. 7114. 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 countries with predominantly Muslim 
     populations are drawing interest from other countries in the 
     Middle East region, and countries with predominantly Muslim 
     populations can become full participants in the rules-based 
     global trading system, as the United States considers 
     lowering its barriers to trade.
       (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) one element of such a strategy should encompass the 
     lowering of trade barriers with the poorest countries that 
     have a significant population of 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 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.

     SEC. 7115. MIDDLE EAST PARTNERSHIP INITIATIVE.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated for each of fiscal years 2005 and 2006, 
     (unless otherwise authorized by Congress) such sums as may be 
     necessary 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. 7116. 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 to counterterrorism.
       (b) In General.--The Secretary of State is authorized in 
     consultation with relevant United States Government agencies, 
     to negotiate on a bilateral or multilateral basis, as 
     appropriate, international agreements under which parties to 
     an agreement work in partnership to address and interdict 
     acts of international terrorism.
       (c) 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 multilateral 
     strategy to fight 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 the 
     following purposes:
       (A) To meet annually, or more frequently as the President 
     determines appropriate, to develop in common with such other 
     governments 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, long-term issues that can contribute to 
     strengthening stability and security in the Middle East.

     SEC. 7117. 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) 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.
       (2) The capture of al Qaeda financial facilitators has 
     provided a windfall of intelligence that can be used to 
     continue the cycle of disruption.
       (3) 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) a critical 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 counterterrorism efforts.

     SEC. 7118. 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

[[Page H10974]]

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

     SEC. 7119. REPORT TO CONGRESS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the President shall submit to Congress 
     a report on the activities of the Government of the United 
     States to carry out the provisions of this subtitle.
       (b) Contents.--The report required under this section shall 
     include the following:
       (1) Terrorist sanctuaries.--A description of the strategy 
     of the United States to address and, where possible, 
     eliminate terrorist sanctuaries, including--
       (A) a description of the terrorist sanctuaries that exist;
       (B) an outline of strategies, tactics, and tools 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 elicit the cooperation needed to 
     identify and address terrorist sanctuaries that may exist 
     unknown to governments; and
       (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.
       (2) Support for pakistan.--A description of a United States 
     strategy to engage with Pakistan and to support it over the 
     long term, including--
       (A) recommendations on the composition and levels of 
     assistance required in future years, with special 
     consideration of the proper balance between security 
     assistance and other forms of assistance;
       (B) a description of the composition and levels of 
     assistance, other than security assistance, at present and in 
     the recent past, structured to permit a comparison of current 
     and past practice with that recommended for the future;
       (C) measures that could be taken to ensure that all forms 
     of foreign assistance to Pakistan have the greatest possible 
     long-term positive impact on the welfare of the Pakistani 
     people and on the ability of Pakistan to cooperate in global 
     efforts against terror; and
       (D) measures that could be taken to alleviate difficulties, 
     misunderstandings, and complications in the relationship 
     between the United States and Pakistan.
       (3) Collaboration with saudi arabia.--A description of the 
     strategy of the United States for expanding collaboration 
     with the Government of Saudi Arabia on subjects of mutual 
     interest and of importance, including a description of--
       (A) steps that could usefully be taken to institutionalize 
     and make more transparent government to government 
     relationships between the United States and Saudi Arabia, 
     including the utility of undertaking periodic, formal, and 
     visible high-level dialogues between government officials of 
     both countries to address challenges in the relationship 
     between the 2 governments and to identify areas and 
     mechanisms for cooperation;
       (B) intelligence and security cooperation between the 
     United States and Saudi Arabia in the fight against Islamist 
     terrorism;
       (C) ways to increase the contribution of Saudi Arabia to 
     the stability of the Middle East and the Islamic world, 
     particularly to the Middle East peace process, by eliminating 
     support from or within Saudi Arabia for extremist groups or 
     tendencies;
       (D) political and economic reform in Saudi Arabia and 
     throughout the Islamic world;
       (E) ways to promote greater tolerance and respect for 
     cultural and religious diversity in Saudi Arabia and 
     throughout the Islamic world; and
       (F) ways to assist the Government of Saudi Arabia in 
     reversing the impact of any financial, moral, intellectual, 
     or other support provided in the past from Saudi sources to 
     extremist groups in Saudi Arabia and other countries, and to 
     prevent this support from continuing in the future.
       (4) Struggle of ideas in the islamic world.--A description 
     of a cohesive, long-term strategy of the United States to 
     help win the struggle of ideas in the Islamic world, 
     including 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 such 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 such 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 intraregional 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.
       (5) Outreach through broadcast media.--A description of a 
     cohesive, long-term strategy of the United States to expand 
     its outreach to foreign Muslim audiences through broadcast 
     media, including the following:
       (A) The initiatives of the Broadcasting Board of Governors 
     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

[[Page H10975]]

     broadcast media in countries with predominantly Muslim 
     populations, including increasing appearances by United 
     States Government officials, experts, and citizens.
       (C) An assessment of the major themes of biased or false 
     media coverage of the United States in foreign countries and 
     the actions taken to address this type of media coverage.
       (D) 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.
       (E) Any recommendations the President may have for 
     additional funding and legislation necessary to achieve the 
     objectives of the strategy.
       (6) Visas for participants in united states programs.--A 
     description of--
       (A) any recommendations for 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 described in section 7111(b) without 
     compromising the security of the United States; and
       (B) a proposed schedule for implementing any 
     recommendations described in subparagraph (A).
       (7) Basic education in muslim countries.--A description of 
     a strategy, that was developed after consultation with 
     nongovernmental organizations and individuals involved in 
     education assistance programs in developing countries, to 
     promote free universal basic education in the countries of 
     the Middle East and in other countries with predominantly 
     Muslim populations designated by the President. The strategy 
     shall include the following elements:
       (A) A description of the manner in which the resources of 
     the United States and the international community shall be 
     used to help achieve free universal basic education in such 
     countries, including--
       (i) efforts of the United States to coordinate an 
     international effort;
       (ii) activities of the United States to leverage 
     contributions from members of the Group of Eight or other 
     donors; and
       (iii) assistance provided by the United States to leverage 
     contributions from the private sector and civil society 
     organizations.
       (B) A description of the efforts of the United States to 
     coordinate with other donors to reduce duplication and waste 
     at the global and country levels and to ensure efficient 
     coordination among all relevant departments and agencies of 
     the Government of the United States.
       (C) A description of the strategy of the United States to 
     assist efforts to overcome challenges to achieving free 
     universal basic education in such countries, including 
     strategies to target hard to reach populations to promote 
     education.
       (D) A listing of countries that the President determines 
     might be eligible for assistance under the International 
     Youth Opportunity Fund described in section 7113(b) and 
     related programs.
       (E) A description of the efforts of the United States to 
     encourage countries in the Middle East and other countries 
     with predominantly Muslim populations designated by the 
     President to develop and implement a national education plan.
       (F) A description of activities that could be carried out 
     as part of the International Youth Opportunity Fund to help 
     close the digital divide and expand vocational and business 
     skills in such countries.
       (G) An estimate of the funds needed to achieve free 
     universal basic education by 2015 in each country described 
     in subparagraph (D), and an estimate of the amount that has 
     been expended by the United States and by each such country 
     during the previous fiscal year.
       (H) A description of the United States strategy for 
     garnering programmatic and financial support from countries 
     in the Middle East and other countries with predominantly 
     Muslim populations designated by the President, international 
     organizations, and other countries that share the objectives 
     of the International Youth Opportunity Fund.
       (8) Economic reform.--A description of the efforts of the 
     United States Government to encourage development and promote 
     economic reform in countries that have a predominantly Muslim 
     population, including a description of--
       (A) efforts to integrate countries with predominantly 
     Muslim populations into the global trading system; and
       (B) actions that the United States Government, acting alone 
     and in partnership with governments in the Middle East, can 
     take to promote intraregional trade and the rule of law in 
     the region.
       (c) Form of Report.--Any report or other matter that is 
     required to be submitted to Congress (including a committee 
     of Congress) under this section may contain a classified 
     annex.

     SEC. 7120. 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 make 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, is amended 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 annually submit to 
     Congress a report that contains an index of all international 
     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 the following:
       ``(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)) 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)) include 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 enactment of the 911 Commission 
     Implementation Act of 2004 and shall apply during fiscal 
     years 2005, 2006, and 2007.''.

     SEC. 7121. EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, this 
     subtitle shall take effect on the date of enactment of this 
     Act.
          Subtitle B--Terrorist Travel and Effective Screening

     SEC. 7201. 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.
       (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 Director of the National 
     Counterterrorism Center 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 and an assessment regarding 
     vulnerabilities within the United States and foreign travel 
     systems that may be exploited by international terrorists, 
     human smugglers and traffickers, and their facilitators.

[[Page H10976]]

       (2) Coordination.--The strategy shall be developed in 
     coordination with all relevant Federal agencies.
       (3) Contents.--The strategy may address--
       (A) a program for collecting, analyzing, disseminating, and 
     utilizing information and intelligence regarding terrorist 
     travel tactics and methods, and outline which Federal 
     intelligence, diplomatic, and law enforcement agencies will 
     be held accountable for implementing each element of the 
     strategy;
       (B) the intelligence and law enforcement collection, 
     analysis, operations, and reporting required to identify and 
     disrupt terrorist travel tactics, practices, patterns, 
     and trends, and the terrorist travel facilitators, 
     document forgers, human smugglers, travel agencies, and 
     corrupt border and transportation officials who assist 
     terrorists;
       (C) the training and training materials required by 
     consular, border, and immigration officials to effectively 
     detect and disrupt terrorist travel described under 
     subsection (c)(3);
       (D) the new technology and procedures required and actions 
     to be taken to integrate existing counterterrorist travel 
     document and mobility intelligence into border security 
     processes, including consular, port of entry, border patrol, 
     maritime, immigration benefits, and related law enforcement 
     activities;
       (E) the actions required to integrate current terrorist 
     mobility intelligence into military force protection 
     measures;
       (F) 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;
       (G) the actions to be taken to aid in the sharing of 
     information between the frontline border agencies of the 
     Department of Homeland Security, the Department of State, and 
     classified and unclassified sources of counterterrorist 
     travel intelligence and information elsewhere in the Federal 
     Government, including the Human Smuggling and Trafficking 
     Center;
       (H) the development and implementation of procedures to 
     enable the National Counterterrorism Center, or its designee, 
     to timely receive terrorist travel intelligence and 
     documentation obtained at consulates and ports of entry, and 
     by law enforcement officers and military personnel;
       (I) the use of foreign and technical assistance to advance 
     border security measures and law enforcement operations 
     against terrorist travel facilitators;
       (J) the feasibility of developing 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;
       (K) the feasibility of digitally transmitting suspect 
     passport information to a central cadre of specialists, 
     either as an interim measure until such time as experts 
     described under subparagraph (J) are available at consular, 
     port of entry, and immigration benefits offices, or 
     otherwise;
       (L) the development of a mechanism to ensure the 
     coordination and dissemination of terrorist travel 
     intelligence and operational information among the Department 
     of Homeland Security, the Department of State, the National 
     Counterterrorism Center, and other appropriate agencies;
       (M) granting consular officers and immigration 
     adjudicators, as appropriate, the security clearances 
     necessary to access law enforcement sensitive and 
     intelligence databases; and
       (N) how to integrate travel document screening for 
     terrorism indicators into border screening, and how to 
     integrate the intelligence community into a robust travel 
     document screening process to intercept terrorists.
       (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 the maximum 
     extent feasible, 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. To the extent 
     possible, technologies acquired and deployed under this plan 
     shall be compatible with systems used by the Department of 
     Homeland Security to detect fraudulent documents and identify 
     genuine 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 or other documentation described in 
     section 7209(b) submitted for identification purposes to a 
     United States consular, border, or immigration official.
       (d) Training Program.--
       (1) Review, evaluation, and revision of existing training 
     programs.--The Secretary of Homeland Security shall--
       (A) review and evaluate the training regarding travel and 
     identity documents, and techniques, patterns, and trends 
     associated with terrorist travel that is provided to 
     personnel of the Department of Homeland Security;
       (B) in coordination with the Secretary of State, review and 
     evaluate the training described in subparagraph (A) that is 
     provided to relevant personnel of the Department of State; 
     and
       (C) in coordination with the Secretary of State, develop 
     and implement an initial training and periodic retraining 
     program--
       (i) to teach border, immigration, and consular officials 
     (who inspect or review travel or identity documents as part 
     of their official duties) how to effectively detect, 
     intercept, and disrupt terrorist travel; and
       (ii) to ensure that the officials described in clause (i) 
     regularly receive the most current information on such 
     matters and are periodically retrained on the matters 
     described in paragraph (2).
       (2) Required topics of revised programs.--The training 
     program developed under paragraph (1)(C) shall include 
     training in--
       (A) methods for identifying fraudulent and genuine travel 
     documents;
       (B) methods for detecting terrorist indicators on travel 
     documents and other relevant identity documents;
       (C) recognition of travel patterns, tactics, and behaviors 
     exhibited by terrorists;
       (D) effective utilization of information contained in 
     databases and data systems available to the Department of 
     Homeland Security; and
       (E) other topics determined to be appropriate by the 
     Secretary of Homeland Security, in consultation with the 
     Secretary of State or the Director of National Intelligence.
       (3) Implementation.--
       (A) Department of homeland security.--
       (i) In general.--The Secretary of Homeland Security shall 
     provide all border and immigration officials who inspect or 
     review travel or identity documents as part of their official 
     duties with the training described in paragraph (1)(C).
       (ii) Report to congress.--Not later than 12 months after 
     the date of enactment of this Act, and annually thereafter 
     for a period of 3 years, the Secretary of Homeland Security 
     shall submit a report to Congress that--

       (I) describes the number of border and immigration 
     officials who inspect or review identity documents as part of 
     their official duties, and the proportion of whom have 
     received the revised training program described in paragraph 
     (1)(C)(i);
       (II) explains the reasons, if any, for not completing the 
     requisite training described in paragraph (1)(C)(i);
       (III) provides a timetable for completion of the training 
     described in paragraph (1)(C)(i) for those who have not 
     received such training; and
       (IV) describes the status of periodic retraining of 
     appropriate personnel described in paragraph (1)(C)(ii).

       (B) Department of state.--
       (i) In general.--The Secretary of State shall provide all 
     consular officers who inspect or review travel or identity 
     documents as part of their official duties with the training 
     described in paragraph (1)(C).
       (ii) Report to congress.--Not later than 12 months after 
     the date of enactment of this Act, and annually thereafter 
     for a period of 3 years, the Secretary of State shall submit 
     a report to Congress that--

       (I) describes the number of consular officers who inspect 
     or review travel or identity documents as part of their 
     official duties, and the proportion of whom have received the 
     revised training program described in paragraph (1)(C)(i);
       (II) explains the reasons, if any, for not completing the 
     requisite training described in paragraph (1)(C)(i);
       (III) provides a timetable for completion of the training 
     described in paragraph (1)(C)(i) for those who have not 
     received such training; and
       (IV) describes the status of periodic retraining of 
     appropriate personnel described in paragraph (1)(C)(ii).

       (4) Assistance to others.--The Secretary of Homeland 
     Security may assist States, Indian tribes, local governments, 
     and private organizations to establish training programs 
     related to terrorist travel intelligence.
       (5) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary for each of 
     the fiscal years 2005 through 2009 to carry out the 
     provisions of this subsection.
       (e) Enhancing Classified Counterterrorist Travel Efforts.--
       (1) In general.--The Director of National Intelligence 
     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. 7202. ESTABLISHMENT OF HUMAN SMUGGLING AND TRAFFICKING 
                   CENTER.

       (a) Establishment.--There is established a Human Smuggling 
     and Trafficking Center (referred to in this section as the 
     ``Center'').
       (b) Operation.--The Secretary of State, the Secretary of 
     Homeland Security, and the Attorney General shall operate the 
     Center in accordance with the Memorandum of Understanding 
     entitled, ``Human Smuggling and Trafficking Center (HSTC), 
     Charter''.
       (c) Functions.--In addition to such other responsibilities 
     as the President may assign, the Center shall--
       (1) serve as the focal point for interagency efforts to 
     address terrorist travel;
       (2) serve as a clearinghouse with respect to all relevant 
     information from all Federal Government agencies in support 
     of the United States strategy to prevent separate, but 
     related, issues of clandestine terrorist travel and 
     facilitation of migrant smuggling and trafficking of persons;
       (3) ensure cooperation among all relevant policy, law 
     enforcement, diplomatic, and intelligence agencies of the 
     Federal Government to

[[Page H10977]]

     improve effectiveness and to convert all information 
     available to the Federal Government relating to clandestine 
     terrorist travel and facilitation, migrant smuggling, and 
     trafficking of persons into tactical, operational, and 
     strategic intelligence that can be used to combat such 
     illegal activities; and
       (4) prepare and submit to Congress, on an annual basis, a 
     strategic assessment regarding vulnerabilities in the United 
     States and foreign travel system that may be exploited by 
     international terrorists, human smugglers and traffickers, 
     and their facilitators.
       (d) Report.--Not later than 180 days after the date of 
     enactment of this Act, the President shall transmit to 
     Congress a report regarding the implementation of this 
     section, including a description of the staffing and resource 
     needs of the Center.
       (e) Relationship to the NCTC.--As part of its mission to 
     combat terrorist travel, the Center shall work to support the 
     efforts of the National Counterterrorism Center.

     SEC. 7203. 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 Visa 
     Screening.--
       (1) Immigrant visas.--Section 222(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1202(b)) is amended by adding at 
     the end the following: ``All immigrant visa applications 
     shall be reviewed and adjudicated by a consular officer.''.
       (2) Nonimmigrant visas.--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: ``In 
     accordance with section 7201(d) of the 9/11 Commission 
     Implementation Act of 2004, and 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) Requirement for specialist.--
       (A) In general.--Not later than July 31, 2005, the 
     Secretary of State, in coordination with the Secretary of 
     Homeland Security, shall identify the diplomatic and consular 
     posts at which visas are issued that experience the greatest 
     frequency of presentation of fraudulent documents by visa 
     applicants. The Secretary of State shall assign or designate 
     at each such post at least 1 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.
       (B) Exceptions.--The Secretary of State is not required to 
     assign or designate a specialist under subparagraph (A) at a 
     diplomatic or consular post if an employee of the Department 
     of Homeland Security, who has sufficient training and 
     experience in the detection of fraudulent documents, is 
     assigned on a full-time basis to such post under section 428 
     of the Homeland Security Act of 2002 (6 U.S.C. 236).

     SEC. 7204. INTERNATIONAL AGREEMENTS TO TRACK AND CURTAIL 
                   TERRORIST TRAVEL THROUGH THE USE OF 
                   FRAUDULENTLY OBTAINED DOCUMENTS.

       (a) Findings.--Congress makes the following findings:
       (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 1 passport.
       (6) Two of the September 11, 2001, hijackers were carrying 
     passports that had been manipulated in a fraudulent manner.
       (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 should lead efforts to track and 
     curtail the travel of terrorists by supporting the drafting, 
     adoption, and implementation of international agreements, and 
     relevant United Nations Security Council resolutions to track 
     and stop international travel by terrorists and other 
     criminals through the use of lost, stolen, or falsified 
     documents to augment United Nations and other international 
     anti-terrorism efforts.
       (2) Contents of international agreement.--The President 
     should seek, as appropriate, the adoption or full 
     implementation of effective international measures to--
       (A) 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) establish and implement a real-time verification system 
     of passports and other travel documents with issuing 
     authorities;
       (C) share with officials at ports of entry in any such 
     country information relating to lost, stolen, and fraudulent 
     passports and other travel documents;
       (D) encourage countries--
       (i) to criminalize--

       (I) the falsification or counterfeiting of travel documents 
     or breeder documents for any purpose;
       (II) the use or attempted use of false documents to obtain 
     a visa or cross a border for any purpose;
       (III) the possession of tools or implements used to falsify 
     or counterfeit such documents;
       (IV) the trafficking in false or stolen travel documents 
     and breeder documents for any purpose;
       (V) the facilitation of travel by a terrorist; and
       (VI) attempts to commit, including conspiracies to commit, 
     the crimes specified in subclauses (I) through (V);

       (ii) to impose significant penalties to appropriately 
     punish violations and effectively deter the crimes specified 
     in clause (i); and
       (iii) to limit the issuance of citizenship papers, 
     passports, identification documents, and similar documents to 
     persons--

       (I) whose identity is proven to the issuing authority;
       (II) who have a bona fide entitlement to or need for such 
     documents; and
       (III) 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) provide technical assistance to countries to help them 
     fully implement such measures; and
       (F) permit immigration and border officials--
       (i) to confiscate a lost, stolen, or falsified passport at 
     ports of entry;
       (ii) to permit the traveler to return to the sending 
     country without being in possession of the lost, stolen, or 
     falsified passport; and
       (iii) to detain and investigate 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 1 year after the date of 
     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. 7205. INTERNATIONAL STANDARDS FOR TRANSLITERATION OF 
                   NAMES INTO THE ROMAN ALPHABET FOR INTERNATIONAL 
                   TRAVEL DOCUMENTS AND NAME-BASED WATCHLIST 
                   SYSTEMS.

       (a) Findings.--Congress makes the following findings:
       (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.
       (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 
     transliteration of

[[Page H10978]]

     names into the Roman alphabet in order to ensure 1 common 
     spelling for such names for international travel documents 
     and name-based watchlist systems.

     SEC. 7206. IMMIGRATION SECURITY INITIATIVE.

       (a) In General.--Section 235A(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1225a(b)) is amended--
       (1) in the subsection heading, by inserting ``and 
     Immigration Security Initiative'' after ``Program'';
       (2) by striking ``Attorney General'' and inserting 
     ``Secretary of Homeland Security''; and
       (3) 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. 7207. CERTIFICATION REGARDING TECHNOLOGY FOR VISA WAIVER 
                   PARTICIPANTS.

       Not later than October 26, 2006, the Secretary of State 
     shall certify to Congress which of the countries designated 
     to participate in the visa waiver program established under 
     section 217 of the Immigration and Nationality Act (8 U.S.C. 
     1187) are developing a program to issue to individuals 
     seeking to enter that country pursuant to a visa issued by 
     that country, a machine readable visa document that is 
     tamper-resistant and incorporates biometric identification 
     information that is verifiable at its port of entry.

     SEC. 7208. BIOMETRIC ENTRY AND EXIT DATA SYSTEM.

       (a) Finding.--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) Definition.--In this section, the term ``entry and exit 
     data system'' means the entry and exit system required by 
     applicable sections of--
       (1) the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (Public Law 104-208);
       (2) the Immigration and Naturalization Service Data 
     Management Improvement Act of 2000 (Public Law 106-205);
       (3) the Visa Waiver Permanent Program Act (Public Law 106-
     396);
       (4) the Enhanced Border Security and Visa Entry Reform Act 
     of 2002 (Public Law 107-173); and
       (5) 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).
       (c) 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.
       (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 and other Department of 
     Homeland Security and Department of State locations 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 and other Department of 
     Homeland Security and Department of State locations with 
     biometric exit data systems in use;
       (iii) a listing of databases and data systems with which 
     the 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 data 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 biometric entry and 
     exit data system;
       (D) a description of plans for improved or added 
     interoperability with any other databases or data systems; 
     and
       (E) a description of the manner in which the Department of 
     Homeland Security's US-VISIT program--
       (i) meets the goals of a comprehensive entry and exit 
     screening system, including both entry and exit biometric; 
     and
       (ii) fulfills the statutory obligations under subsection 
     (b).
       (d) Collection of Biometric Exit Data.--The entry and exit 
     data system shall include a requirement for the collection of 
     biometric exit data for all categories of individuals who are 
     required to provide biometric entry data, regardless of the 
     port of entry where such categories of individuals entered 
     the United States.
       (e) Integration and Interoperability.--
       (1) Integration of data system.--Not later than 2 years 
     after the date of enactment of this Act, the Secretary shall 
     fully integrate all databases and data systems that process 
     or contain information on aliens, which are maintained 
     by--
       (A) the Department of Homeland Security, at--
       (i) the United States Immigration and Customs Enforcement;
       (ii) the United States Customs and Border Protection; and
       (iii) the United States Citizenship and Immigration 
     Services;
       (B) the Department of Justice, at the Executive Office for 
     Immigration Review; and
       (C) the Department of State, at the Bureau of Consular 
     Affairs.
       (2) Interoperable component.--The fully integrated data 
     system under paragraph (1) shall be an interoperable 
     component of the entry and exit data system.
       (3) Interoperable data system.--Not later than 2 years 
     after the date of enactment of this Act, the Secretary shall 
     fully implement an interoperable electronic data system, as 
     required by section 202 of the Enhanced Border Security and 
     Visa Entry Reform Act (8 U.S.C. 1722) to provide current and 
     immediate access to information in the databases of Federal 
     law enforcement agencies and the intelligence community that 
     is relevant to determine--
       (A) whether to issue a visa; or
       (B) the admissibility or deportability of an alien.
       (f) Maintaining Accuracy and Integrity of Entry and Exit 
     Data System.--
       (1) Policies and procedures.--
       (A) Establishment.--The Secretary of Homeland Security 
     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 that ensure the accuracy and 
     integrity of the data.
       (B) Training.--The Secretary shall develop training on the 
     rules, guidelines, policies, and procedures established under 
     subparagraph (A), and on immigration law and procedure. All 
     personnel authorized to access information maintained in the 
     databases and data system shall receive such training.
       (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, and 
     the procedures utilized to collect such data, to ensure that 
     the information is consistent and valuable to officials 
     accessing that data across multiple agencies.
       (3) Data maintenance procedures.--Heads of agencies that 
     have databases or data systems linked to the entry and exit 
     data system shall establish rules, guidelines, policies, and 
     operating and auditing procedures for collecting, removing, 
     and updating data maintained in, and adding information to, 
     such databases or data systems that ensure the accuracy and 
     integrity of the data and for limiting access to the 
     information in the databases or data systems to authorized 
     personnel.
       (4) Requirements.--The rules, guidelines, policies, and 
     procedures established under this subsection shall--
       (A) incorporate a simple and timely method for--
       (i) correcting errors in a timely and effective manner;
       (ii) determining which government officer provided data so 
     that the accuracy of the data can be ascertained; and
       (iii) clarifying information known to cause false hits or 
     misidentification errors;
       (B) include procedures for individuals to--
       (i) seek corrections of data contained in the databases or 
     data systems; and
       (ii) appeal decisions concerning data contained in the 
     databases or data systems;
       (C) strictly limit the agency personnel authorized to enter 
     data into the system;
       (D) identify classes of information to be designated as 
     temporary or permanent entries, with corresponding expiration 
     dates for temporary entries; and
       (E) identify classes of prejudicial information requiring 
     additional authority of supervisory personnel before entry.
       (5) Centralizing and streamlining correction process.--
       (A) In general.--The President, or agency director 
     designated by the President, shall establish a clearinghouse 
     bureau in 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 contained in agency databases, which is related 
     to immigration status, or which otherwise impedes lawful 
     admission to the United States.
       (B) Time schedules.--The process described in subparagraph 
     (A) shall include specific time schedules for reviewing data 
     correction requests, rendering decisions on such requests, 
     and implementing appropriate corrective action in a timely 
     manner.
       (g) Integrated Biometric Entry-Exit Screening System.--The 
     biometric entry and exit data system shall facilitate 
     efficient immigration benefits processing by--
       (1) ensuring that the system's tracking capabilities 
     encompass data related to all immigration benefits 
     processing, including--

[[Page H10979]]

       (A) visa applications with the Department of State;
       (B) immigration related filings with the Department of 
     Labor;
       (C) cases pending before the Executive Office for 
     Immigration Review; and
       (D) matters pending or under investigation before the 
     Department of Homeland Security;
       (2) utilizing 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) providing that--
       (A) all information about an applicant's immigration 
     related history, including entry and exit history, can be 
     queried through electronic means; and
       (B) database access and usage guidelines include stringent 
     safeguards to prevent misuse of data;
       (4) providing real-time updates to the information 
     described in paragraph (3)(A), including pertinent data from 
     all agencies referred to in paragraph (1); and
       (5) providing continuing education in counterterrorism 
     techniques, tools, and methods for all Federal personnel 
     employed in the evaluation of immigration documents and 
     immigration-related policy.
       (h) Entry-Exit System Goals.--The Department of Homeland 
     Security shall operate the biometric entry and exit system so 
     that it--
       (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; 
     and
       (6) improves database search capacities by utilizing 
     language algorithms to detect alternate names.
       (i) Dedicated Specialists and Front Line Personnel 
     Training.--In implementing the provisions of subsections (g) 
     and (h), 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.
       (j) Compliance Status Reports.--Not later than 1 year after 
     the date of 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 subject to the 
     requirements of this section, shall issue individual status 
     reports and a joint status report detailing the compliance of 
     the department or agency with each requirement under this 
     section.
       (k) Expediting Registered Travelers Across International 
     Borders.--
       (1) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (A) Expediting the travel of previously screened and known 
     travelers across the borders of the United States should be a 
     high priority.
       (B) The process of expediting known travelers across the 
     borders of the United States can permit inspectors to better 
     focus on identifying terrorists attempting to enter the 
     United States.
       (2) Definition.--In this subsection, 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 program.--
       (A) In general.--As soon as is practicable, the Secretary 
     shall develop and implement a registered traveler program to 
     expedite the processing of registered travelers who enter and 
     exit the United States.
       (B) Participation.--The registered traveler program shall 
     include as many participants as practicable by--
       (i) minimizing the cost of enrollment;
       (ii) making program enrollment convenient and easily 
     accessible; and
       (iii) providing applicants with clear and consistent 
     eligibility guidelines.
       (C) Integration.--The registered traveler program shall be 
     integrated into the automated biometric entry and exit data 
     system described in this section.
       (D) Review and evaluation.--In developing the registered 
     traveler program, 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;
       (iii) increase research and development efforts to 
     accelerate the development and implementation of a single 
     registered traveler program; and
       (iv) review the feasibility of allowing participants to 
     enroll in the registered traveler program at consular 
     offices.
       (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 registered traveler 
     program.
       (l) 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. 7209. TRAVEL DOCUMENTS.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (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.
       (3) Additional safeguards are needed to ensure that 
     terrorists cannot enter the United States.
       (b) 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 a passport or other document, or combination of 
     documents, deemed by the Secretary of Homeland Security to be 
     sufficient to denote identity and citizenship, 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)). 
     This plan shall be implemented not later than January 1, 
     2008, and shall seek to expedite the travel of frequent 
     travelers, including those who reside in border communities, 
     and in doing so, shall make readily available a registered 
     traveler program (as described in section 7208(k)).
       (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) neither the Secretary of State nor the Secretary of 
     Homeland Security may 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 not exercise discretion under section 
     215(b) of such Act (8 U.S.C. 1185(b)) to waive documentary 
     requirements for United States citizens departing from or 
     entering, or attempting to depart from or enter, the United 
     States except--
       (A) where the Secretary of Homeland Security determines 
     that the alternative documentation that is the basis for the 
     waiver of the documentary requirement is sufficient to denote 
     identity and citizenship;
       (B) in the case of an unforeseen emergency in individual 
     cases; or
       (C) in the case of humanitarian or national interest 
     reasons in individual cases.
       (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. 7210. EXCHANGE OF TERRORIST INFORMATION AND INCREASED 
                   PREINSPECTION AT FOREIGN AIRPORTS.

       (a) Findings.--Consistent with the report of the National 
     Commission on Terrorist Attacks Upon the United States, 
     Congress makes the following findings:
       (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.
       (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 Federal Government should exchange terrorist 
     information with trusted allies;
       (2) the Federal Government should move toward real-time 
     verification of passports with issuing authorities;
       (3) where practicable, the Federal Government should 
     conduct screening before a passenger departs on a flight 
     destined for the United States;
       (4) the Federal Government should work with other countries 
     to ensure effective inspection regimes at all airports;
       (5) the Federal 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 Federal 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 Federal 
     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

[[Page H10980]]

       (C) efforts to work with other countries to accomplish the 
     goals described under this section.
       (d) Preinspection at Foreign Airports.--
       (1) In general.--Section 235A(a)(4) of the Immigration and 
     Nationality Act (8 U.S.C. 1225a(a)(4)) is amended to read as 
     follows:
       ``(4) Subject to paragraph (5), not later than January 1, 
     2008, the Secretary of Homeland Security, in consultation 
     with the Secretary of State, shall establish preinspection 
     stations in at least 25 additional foreign airports, which 
     the Secretary of Homeland Security, in consultation with the 
     Secretary of State, determines, based on the data compiled 
     under paragraph (3) and such other information as may be 
     available, would most effectively facilitate the travel of 
     admissible aliens and reduce the number of inadmissible 
     aliens, especially aliens who are potential terrorists, who 
     arrive from abroad by air at points of entry within the 
     United States. Such preinspection stations shall be in 
     addition to those established before September 30, 1996, or 
     pursuant to paragraph (1).''.
       (2) Report.--Not later than June 30, 2006, the Secretary of 
     Homeland Security and the Secretary of State shall submit a 
     report on the progress being made in implementing the 
     amendment made by paragraph (1) to--
       (A) the Committee on the Judiciary of the Senate;
       (B) the Committee on the Judiciary of the House of 
     Representatives;
       (C) the Committee on Foreign Relations of the Senate;
       (D) the Committee on International Relations of the House 
     of Representatives;
       (E) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (F) the Select Committee on Homeland Security of the House 
     of Representatives (or any successor committee).

     SEC. 7211. 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 (3), no Federal agency 
     may accept a birth certificate for any official purpose 
     unless the certificate conforms to such standards.
       (2) State certification.--
       (A) In general.--Each State shall certify to the Secretary 
     of Health and Human Services that the State is in compliance 
     with the requirements of this section.
       (B) Frequency.--Certifications under subparagraph (A) shall 
     be made at such intervals and in such a manner as the 
     Secretary of Health and Human Services, with the concurrence 
     of the Secretary of Homeland Security and the Commissioner of 
     Social Security, may prescribe by regulation.
       (C) Compliance.--Each State shall ensure that units of 
     local government and other authorized custodians of records 
     in the State comply with this section.
       (D) Audits.--The Secretary of Health and Human Services may 
     conduct periodic audits of each State's compliance with the 
     requirements of this section.
       (3) Minimum standards.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary of Health and 
     Human Services 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 or an alternative, equally secure medium, 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) shall establish standards for the processing of birth 
     certificate applications to prevent fraud;
       (D) may not require a single design to which birth 
     certificates issued by all States must conform; and
       (E) 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.
       (4) Consultation with government agencies.--In promulgating 
     the standards required under paragraph (3), the Secretary of 
     Health and Human Services shall consult with--
       (A) the Secretary of Homeland Security;
       (B) the Commissioner of Social Security;
       (C) State vital statistics offices; and
       (D) other appropriate Federal agencies.
       (5) Extension of effective date.--The Secretary of Health 
     and Human Services may extend the date specified under 
     paragraph (1) for up to 2 years for birth certificates issued 
     by a State if the Secretary determines that the State made 
     reasonable efforts to comply with the date under paragraph 
     (1) but was unable 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)(3), the Secretary of 
     Health and Human Services shall award 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 award 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.
       (C) Minimum allocation.--Notwithstanding subparagraph (B), 
     each State shall receive not less than 0.5 percent of the 
     grant funds made available under this paragraph.
       (2) Assistance in matching birth and death records.--
       (A) In general.--The Secretary of Health and Human 
     Services, in coordination with the Commissioner of Social 
     Security and other appropriate Federal agencies, shall award 
     grants to States, under criteria established by the 
     Secretary, to assist States 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 award grants 
     to qualifying 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.
       (C) Minimum allocation.--Notwithstanding subparagraph (B), 
     each State shall receive not less than 0.5 percent of the 
     grant funds made available under this paragraph.
       (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.
       (e) Technical and Conforming Amendment.--Section 656 of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (5 U.S.C. 301 note) is repealed.

     SEC. 7212. 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 newly 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 of Transportation, 
     in consultation with the Secretary of Homeland Security, 
     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.
       (C) State certification.--
       (i) In general.--Each State shall certify to the Secretary 
     of Transportation that the State is in compliance with the 
     requirements of this section.
       (ii) Frequency.--Certifications under clause (i) shall be 
     made at such intervals and in such a manner as the Secretary 
     of Transportation, with the concurrence of the Secretary of 
     Homeland Security, may prescribe by regulation.
       (iii) Audits.--The Secretary of Transportation may conduct 
     periodic audits of each State's compliance with the 
     requirements of this section.
       (2) Minimum standards.--Not later than 18 months after the 
     date of enactment of this Act, the Secretary of 
     Transportation, in consultation with the Secretary of 
     Homeland Security, 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 personal 
     identification card;
       (B) standards for the verifiability of documents used to 
     obtain a driver's license or personal identification card;
       (C) standards for the processing of applications for 
     driver's licenses and personal identification cards to 
     prevent fraud;
       (D) standards for information to be included on each 
     driver's license or personal identification card, including--
       (i) the person's full legal name;
       (ii) the person's date of birth;
       (iii) the person's gender;
       (iv) the person's driver's license or personal 
     identification card number;
       (v) a digital photograph of the person;

[[Page H10981]]

       (vi) the person's address of principal residence; and
       (vii) the person's signature;
       (E) standards for common machine-readable identity 
     information to be included on each driver's license or 
     personal identification card, including defined minimum data 
     elements;
       (F) security standards to ensure that driver's licenses and 
     personal identification cards are--
       (i) resistant to tampering, alteration, or counterfeiting; 
     and
       (ii) capable of accommodating and ensuring the security of 
     a digital photograph or other unique identifier; and
       (G) a requirement that a State confiscate a driver's 
     license or personal 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, an appropriate official of a 
     Federal agency and other relevant officials, to verify the 
     authenticity of documents, as appropriate, issued by such 
     Federal agency or entity and presented to prove the identity 
     of an individual;
       (B) may not infringe on a State's power to set criteria 
     concerning what categories of individuals are eligible to 
     obtain a driver's license or personal identification card 
     from that State;
       (C) may not require a State to comply with any such 
     regulation that conflicts with or otherwise interferes with 
     the full enforcement of State criteria concerning the 
     categories of individuals that are eligible to obtain a 
     driver's license or personal identification card from that 
     State;
       (D) may not require a single design to which driver's 
     licenses or personal identification cards issued by all 
     States must conform; and
       (E) shall include procedures and requirements to protect 
     the privacy rights of individuals who apply for and hold 
     driver's licenses and personal identification cards.
       (4) Negotiated rulemaking.--
       (A) In general.--Before publishing the proposed regulations 
     required by paragraph (2) to carry out this title, the 
     Secretary of Transportation shall establish a negotiated 
     rulemaking process pursuant to subchapter IV of chapter 5 of 
     title 5, United States Code (5 U.S.C. 561 et seq.).
       (B) Representation on negotiated rulemaking committee.--Any 
     negotiated rulemaking committee established by the Secretary 
     of Transportation pursuant to subparagraph (A) shall include 
     representatives from--
       (i) among State offices that issue driver's licenses or 
     personal identification cards;
       (ii) among State elected officials;
       (iii) the Department of Homeland Security; and
       (iv) among interested parties.
       (C) Time requirement.--The process described in 
     subparagraph (A) shall be conducted in a timely manner to 
     ensure that--
       (i) any recommendation for a proposed rule or report is 
     provided to the Secretary of Transportation not later than 9 
     months after the date of enactment of this Act and shall 
     include an assessment of the benefits and costs of the 
     recommendation; and
       (ii) a final rule is promulgated not later than 18 months 
     after the date of enactment of this Act.
       (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 of Transportation shall award 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 of Transportation 
     shall award 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.
       (3) Minimum allocation.--Notwithstanding paragraph (2), 
     each State shall receive not less than 0.5 percent of the 
     grant funds made available under this subsection.
       (d) Extension of Effective Date.--The Secretary of 
     Transportation may extend the date specified under subsection 
     (b)(1)(A) for up to 2 years for driver's licenses issued by a 
     State if the Secretary determines that the State made 
     reasonable efforts to comply with the date under such 
     subsection but was unable to do so.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation for 
     each of the fiscal years 2005 through 2009, such sums as may 
     be necessary to carry out this section.

     SEC. 7213. SOCIAL SECURITY CARDS AND NUMBERS.

       (a) Security Enhancements.--The Commissioner of Social 
     Security shall--
       (1) not later than 1 year after the date of enactment of 
     this Act--
       (A) restrict the issuance of multiple replacement social 
     security cards to any individual to 3 per year and 10 for the 
     life of the individual, except that the Commissioner may 
     allow for reasonable exceptions from the limits under this 
     paragraph on a case-by-case basis in compelling 
     circumstances;
       (B) establish minimum standards for the verification of 
     documents or records submitted by an individual to establish 
     eligibility for an original or replacement social security 
     card, other than for purposes of enumeration at birth; and
       (C) require independent verification of any birth record 
     submitted by an individual to establish eligibility for a 
     social security account number, other than for purposes of 
     enumeration at birth, except that the Commissioner may allow 
     for reasonable exceptions from the requirement for 
     independent verification under this subparagraph on a case by 
     case basis in compelling circumstances; and
       (2) notwithstanding section 205(r) of the Social Security 
     Act (42 U.S.C. 405(r)) and any agreement entered into 
     thereunder, not later than 18 months after the date of 
     enactment of this Act with respect to death indicators and 
     not later than 36 months after the date of enactment of this 
     Act with respect to fraud indicators, add death and fraud 
     indicators to the social security number verification systems 
     for employers, State agencies issuing driver's licenses and 
     identity cards, and other verification routines that the 
     Commissioner determines to be appropriate.
       (b) Interagency Security Task Force.--The Commissioner of 
     Social Security, in consultation with the Secretary of 
     Homeland Security, shall form an interagency task force for 
     the purpose of further improving the security of social 
     security cards and numbers. Not later than 18 months after 
     the date of enactment of this Act, the task force shall 
     establish, and the Commissioner shall provide for the 
     implementation of, 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) Enumeration at Birth.--
       (1) Improvement of application process.--As soon as 
     practicable after the date of 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 congress.--Not later than 1 year after the 
     date of enactment of this Act, the Commissioner shall 
     transmit to each House of Congress a report specifying in 
     detail the extent to which the improvements required under 
     paragraph (1) have been made.
       (d) Study Regarding Process for Enumeration at Birth.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Commissioner of Social Security 
     shall conduct a study to determine the most efficient options 
     for ensuring the integrity of the process for enumeration at 
     birth. This 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.--
       (A) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Commissioner shall submit a 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 conducted under paragraph 
     (1).
       (B) Contents.--The report submitted under subparagraph (A) 
     shall contain such recommendations for legislative changes as 
     the Commissioner considers necessary to implement needed 
     improvements in the process for enumeration at birth.
       (e) 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.

     SEC. 7214. 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, motor 
     vehicle registration, or personal identification card (as 
     defined in section 7212(a)(2) of the 9/11 Commission 
     Implementation Act of 2004), or include, on any such license, 
     registration, or personal identification card, a magnetic 
     strip, bar code, or other means of communication which 
     conveys such number (or derivative thereof).''.
       (b) Effective Date.--The amendment made by subsection 
     (a)(2) shall apply with respect to licenses, registrations, 
     and identification cards issued or reissued 1 year after the 
     date of enactment of this Act.
       (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.

     SEC. 7215. TERRORIST TRAVEL PROGRAM.

       The Secretary of Homeland Security, in consultation with 
     the Director of the National Counterterrorism Center, and 
     consistent with the strategy developed under section 7201, 
     shall establish a program to oversee the implementation of 
     the Department's responsibilities with respect to terrorist 
     travel, including the analysis,

[[Page H10982]]

     coordination, and dissemination of terrorist travel 
     intelligence and operational information--
       (1) among appropriate subdivisions of the Department of 
     Homeland Security, including--
       (A) the Bureau of Customs and Border Protection;
       (B) United States Immigration and Customs Enforcement;
       (C) United States Citizenship and Immigration Services;
       (D) the Transportation Security Administration; and
       (E) any other subdivision, as determined by the Secretary; 
     and
       (2) between the Department of Homeland Security and other 
     appropriate Federal agencies.

     SEC. 7216. INCREASE IN PENALTIES FOR FRAUD AND RELATED 
                   ACTIVITY.

       Section 1028(b)(4) of title 18, United States Code, is 
     amended by striking ``25 years'' and inserting ``30 years''.

     SEC. 7217. STUDY ON ALLEGEDLY LOST OR STOLEN PASSPORTS.

       (a) In General.--Not later than May 31, 2005, the Secretary 
     of State, in consultation with the Secretary of Homeland 
     Security, shall submit a report, containing the results of a 
     study on the subjects described in subsection (b), to--
       (1) the Committee on the Judiciary of the Senate;
       (2) the Committee on the Judiciary of the House of 
     Representatives;
       (3) the Committee on Foreign Relations of the Senate;
       (4) the Committee on International Relations of the House 
     of Representatives;
       (5) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (6) the Select Committee on Homeland Security of the House 
     of Representatives (or any successor committee).
       (b) Contents.--The study referred to 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 
     establishing a system, in coordination with other countries, 
     through which border and visa issuance officials have access 
     in real-time to information on newly issued passports to 
     persons whose previous passports were allegedly lost or 
     stolen.
       (c) Incentives.--The study described in subsection (b) 
     shall make recommendations on incentives that might be 
     offered to encourage foreign nations to participate in the 
     initiatives described in subsection (b).

     SEC. 7218. ESTABLISHMENT OF VISA AND PASSPORT SECURITY 
                   PROGRAM IN THE DEPARTMENT OF STATE.

       (a) Establishment.--There is established, within the Bureau 
     of Diplomatic Security of the Department of State, the Visa 
     and Passport Security Program (in this section referred to as 
     the ``Program'').
       (b) Preparation of Strategic Plan.--
       (1) In general.--The Assistant Secretary for Diplomatic 
     Security, in coordination with the appropriate officials of 
     the Bureau of Consular Affairs, the coordinator for 
     counterterrorism, the National Counterterrorism Center, and 
     the Department of Homeland Security, and consistent with the 
     strategy mandated by section 7201, shall ensure the 
     preparation of a strategic plan to target and disrupt 
     individuals and organizations, within the United States and 
     in foreign countries, that are involved in the fraudulent 
     production, distribution, use, or other similar activity--
       (A) of a United States visa or United States passport;
       (B) 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
       (C) of passports and visas issued by foreign countries 
     intended to gain unlawful entry into the United States.
       (2) Emphasis.--The strategic plan shall--
       (A) 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));
       (B) 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
       (C) 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.
       (c) Program.--
       (1) Individual in charge.--
       (A) Designation.--The Assistant Secretary for Diplomatic 
     Security shall designate an individual to be in charge of the 
     Program.
       (B) Qualification.--The individual designated under 
     subparagraph (A) shall have expertise and experience in the 
     investigation and prosecution of visa and passport fraud.
       (2) Program components.--The Program shall include the 
     following:
       (A) Analysis of methods.--Analyze, in coordination with 
     other appropriate government agencies, 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 consult with 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.
       (d) Report.--Not later than 90 days after the date on which 
     the strategy required under section 7201 is submitted to 
     Congress, the Assistant Secretary for Diplomatic Security 
     shall submit to Congress a report containing--
       (1) a description of the strategic plan prepared under 
     subsection (b); and
       (2) 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.

     SEC. 7219. EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, this 
     subtitle shall take effect on the date of enactment of this 
     Act.

     SEC. 7220. IDENTIFICATION STANDARDS.

       (a) Proposed Standards.--
       (1) In general.--The Secretary of Homeland Security--
       (A) shall propose minimum standards for identification 
     documents required of domestic commercial airline passengers 
     for boarding an aircraft; and
       (B) may, from time to time, propose minimum standards 
     amending or replacing standards previously proposed and 
     transmitted to Congress and approved under this section.
       (2) Submission to congress.--Not later than 6 months after 
     the date of enactment of this Act, the Secretary shall submit 
     the standards under paragraph (1)(A) to the Senate and the 
     House of Representatives on the same day while each House is 
     in session.
       (3) Effective date.--Any proposed standards submitted to 
     Congress under this subsection shall take effect when an 
     approval resolution is passed by the House and the Senate 
     under the procedures described in subsection (b) and becomes 
     law.
       (b) Congressional Approval Procedures.--
       (1) Rulemaking power.--This subsection is enacted by 
     Congress--
       (A) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and as such 
     they are deemed a part of the rules of each House, 
     respectively, but applicable only with respect to the 
     procedure to be followed in that House in the case of such 
     approval resolutions; and it supersedes other rules only to 
     the extent that they are inconsistent therewith; and
       (B) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner and 
     to the same extent as in the case of any other rule of that 
     House.
       (2) Approval resolution.--For the purpose of this 
     subsection, the term ``approval resolution'' means a joint 
     resolution of Congress, the matter after the resolving clause 
     of which is as follows: ``That the Congress approves the 
     proposed standards issued under section 7220 of the 9/11 
     Commission Implementation Act of 2004, transmitted by the 
     President to the Congress on ______'', the blank space being 
     filled in with the appropriate date.
       (3) Introduction.--Not later than the first day of session 
     following the day on which proposed standards are transmitted 
     to the House of Representatives and the Senate under 
     subsection (a), an approval resolution--
       (A) shall be introduced (by request) in the House by the 
     Majority Leader of the House of Representatives, for himself 
     or herself and the minority leader of the House of 
     Representatives, or by Members of the House of 
     Representatives designated by the Majority Leader and 
     Minority Leader of the House; and
       (B) shall be introduced (by request) in the Senate by the 
     Majority Leader of the Senate, for himself or herself and the 
     Minority Leader of the Senate, or by Members of the Senate 
     designated by the Majority Leader and Minority Leader of the 
     Senate.
       (4) Prohibitions.--
       (A) Amendments.--No amendment to an approval resolution 
     shall be in order in either the House of Representative of 
     the Senate.
       (B) Motions to suspend.--No motion to suspend the 
     application of this paragraph shall be

[[Page H10983]]

     in order in either House, nor shall it be in order in either 
     House for the Presiding Officer to entertain a request to 
     suspend the application of this paragraph by unanimous 
     consent.
       (5) Referral.--
       (A) In general.--An approval resolution shall be referred 
     to the committees of the House of Representatives and of the 
     Senate with jurisdiction. Each committee shall make its 
     recommendations to the House of Representatives or the 
     Senate, as the case may be, within 45 days after its 
     introduction. Except as provided in subparagraph (B), if a 
     committee to which an approval resolution has been referred 
     has not reported it at the close of the 45th day after its 
     introduction, such committee shall be automatically 
     discharged from further consideration of the resolution and 
     it shall be placed on the appropriate calendar.
       (B) Final passage.--A vote on final passage of the 
     resolution shall be taken in each House on or before the 
     close of the 15th day after the resolution is reported by the 
     committee or committees of that House to which it was 
     referred, or after such committee or committees have been 
     discharge from further consideration of the resolution.
       (C) Computation of days.--For purposes of this paragraph, 
     in computing a number of days in either House, there shall be 
     excluded any day on which that House is not in session.
       (6) Coordination with action of other house.--If prior to 
     the passage by one House of an approval resolution of that 
     House, that House receives the same approval resolution from 
     the other House, then the procedure in that House shall be 
     the same as if no approval resolution has been received from 
     the other House, but the vote on final passage shall be on 
     the approval resolution of the other House.
       (7) Floor consideration in the house of representatives.--
       (A) Motion to proceed.--A motion in the House of 
     Representatives to proceed to the consideration of an 
     approval resolution shall be highly privileged and not 
     debatable. An amendment to the motion shall not be in order, 
     not shall it be in order to move to reconsider the vote by 
     which the motion is agreed to or disagreed to.
       (B) Debate.--Debate in the House of Representatives on an 
     implementing bill or approval resolution shall be limited to 
     not more than 4 hours, which shall be divided equally between 
     those favoring and those opposing the resolution. A motion to 
     further limit debate shall not be debatable. It shall not be 
     in order to move to recommit an approval resolution or to 
     move to reconsider the vote by which an approval resolution 
     is agree to or disagreed to.
       (C) Motion to postpone.--Motions to postpone made in the 
     House of Representatives with respect to the consideration of 
     an approval resolution and motions to proceed to the 
     consideration of other business shall be decided without 
     debate.
       (D) Appeals.--All appeals from the decisions of the Chair 
     relating to the application of the Rules of the House of 
     Representatives to the procedure relating to an approval 
     resolution shall be decided without debate.
       (E) Rules of the house of representatives.--Except to the 
     extent specifically provided in subparagraphs (A) through 
     (D), consideration of an approval resolution shall be 
     governed by the Rules of the House of Representatives 
     applicable to other resolutions in similar circumstances.
       (8) Floor consideration in the Senate.--
       (A) Motion to proceed.--A motion in the Senate to proceed 
     to the consideration of an approval resolution shall be 
     privileged and not debatable. An amendment to the motion 
     shall not be in order, not shall it be in order to move to 
     reconsider the vote by which the motion is agreed to or 
     disagreed to.
       (B) Debate on resolution.--Debate in the Senate on an 
     approval resolution, and appeals in connection therewith, 
     shall be limited to not more than 10 hours, which shall be 
     equally divided between, and controlled by, the Majority 
     Leader and the Minority Leader, or their designees.
       (C) Debate on motions and appeals.--Debate in the Senate on 
     any debatable motion or appeal in connection with an approval 
     resolution shall be limited to not more than 1 hour, which 
     shall be equally divided between, and controlled by, the 
     mover and the manager of the resolution, except that in the 
     event the manager of the resolution is in favor of any such 
     motion or appeal, the time in opposition thereto, shall be 
     controlled by the Minority Leader or designee. Such leaders, 
     or either of them, may, from time under their control on the 
     passage of an approval resolution, allot additional time to 
     any Senator during the consideration of any debatable motion 
     or appeal.
       (D) Limit on debate.--A motion in the Senate to further 
     limit debate is not debatable. A motion to recommit an 
     approval resolution is not in order.
       (c) Default Standards.--
       (1) In general.--If the standards proposed under subsection 
     (a)(1)(A) are not approved pursuant to the procedures 
     described in subsection (b), then not later than 1 year after 
     rejection by a vote of either House of Congress, domestic 
     commercial airline passengers seeking to board an aircraft 
     shall present, for identification purposes--
       (A) a valid, unexpired passport;
       (B) domestically issued documents that the Secretary of 
     Homeland Security designates as reliable for identification 
     purposes;
       (C) any document issued by the Attorney General or the 
     Secretary of Homeland Security under the authority of 1 of 
     the immigration laws (as defined under section 101(a)(17) of 
     the Immigration and Nationality Act (8 U.S.C. 1101(a)(17)); 
     or
       (D) a document issued by the country of nationality of any 
     alien not required to possess a passport for admission to the 
     United States that the Secretary designates as reliable for 
     identifications purposes
       (2) Exception.--The documentary requirements described in 
     paragraph (1)--
       (A) shall not apply to individuals below the age of 17, or 
     such other age as determined by the Secretary of Homeland 
     Security;
       (B) may be waived by the Secretary of Homeland Security in 
     the case of an unforeseen medical emergency.
       (d) Recommendation to Congress.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary of 
     Homeland Security shall recommend to Congress--
       (1) categories of Federal facilities that the Secretary 
     determines to be at risk for terrorist attack and requiring 
     minimum identification standards for access to such 
     facilities; and
       (2) appropriate minimum identification standards to gain 
     access to those facilities.
                   Subtitle C--National Preparedness

     SEC. 7301. 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 decisionmakers who are represented at the incident 
     command level help to ensure an effective response, the 
     efficient use of resources, and responder safety.
       (4) The incident command system also enables emergency 
     managers and first responders to manage, generate, receive, 
     evaluate, share, and use information.
       (5) Regular joint training at all levels is essential to 
     ensuring close coordination during an actual incident.
       (6) 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.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States needs to implement the 
     recommendations of the National Commission on Terrorist 
     Attacks Upon the United States by adopting a unified incident 
     command system and significantly enhancing communications 
     connectivity between and among all levels of government 
     agencies, emergency response providers (as defined in section 
     2 of the Homeland Security Act of 2002 (6 U.S.C. 101), and 
     other organizations with emergency response capabilities;
       (2) the unified incident command system should enable 
     emergency managers and first responders to manage, generate, 
     receive, evaluate, share, and use information in the event of 
     a terrorist attack or a significant national disaster;
       (3) emergency response agencies nationwide should adopt the 
     Incident Command System known as NIMS;
       (4) when multiple agencies or multiple jurisdictions are 
     involved, they should follow a unified command system based 
     on NIMS;
       (5) the regular use of, and training in, NIMS by States 
     and, to the extent practicable, territories, tribes, and 
     local governments, should be a condition for receiving 
     Federal preparedness assistance; and
       (6) 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. 7302. 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.

[[Page H10984]]

       (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, in accordance with 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.
       (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) Immunities.--This section shall not abrogate any other 
     immunities from liability that any party has under any other 
     Federal or State law.
       (e) 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.
       (f) 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. 7303. ENHANCEMENT OF PUBLIC SAFETY COMMUNICATIONS 
                   INTEROPERABILITY.

       (a) Coordination of Public Safety Interoperable 
     Communications Programs.--
       (1) Program.--The Secretary of Homeland Security, in 
     consultation with the Secretary of Commerce and the Chairman 
     of the Federal Communications Commission, shall establish a 
     program to enhance public safety interoperable communications 
     at all levels of government. Such program shall--
       (A) establish a comprehensive national approach to 
     achieving public safety interoperable communications;
       (B) coordinate with other Federal agencies in carrying out 
     subparagraph (A);
       (C) develop, in consultation with other appropriate Federal 
     agencies and State and local authorities, appropriate minimum 
     capabilities for communications interoperability for Federal, 
     State, and local public safety agencies;
       (D) accelerate, in consultation with other Federal 
     agencies, including the National Institute of Standards and 
     Technology, the private sector, and nationally recognized 
     standards organizations as appropriate, the development of 
     national voluntary consensus standards for public safety 
     interoperable communications, recognizing--
       (i) the value, life cycle, and technical capabilities of 
     existing communications infrastructure;
       (ii) the need for cross-border interoperability between 
     States and nations;
       (iii) the unique needs of small, rural communities; and
       (iv) the interoperability needs for daily operations and 
     catastrophic events;
       (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 toward 
     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 within the 
     Directorate of Science and Technology to carry out this 
     subsection.

[[Page H10985]]

       (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 section 510 of the Homeland Security Act of 
     2002, as added by subsection (d).
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this 
     subsection--
       (A) $22,105,000 for fiscal year 2005;
       (B) $22,768,000 for fiscal year 2006;
       (C) $23,451,000 for fiscal year 2007;
       (D) $24,155,000 for fiscal year 2008; and
       (E) $24,879,000 for fiscal year 2009.
       (b) Report.--Not later than 120 days after the date of 
     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) International Interoperability.--Not later than 18 
     months after the date of enactment of this Act, the President 
     shall establish a mechanism for coordinating cross-border 
     interoperability issues between--
       (1) the United States and Canada; and
       (2) the United States and Mexico.
       (d) High Risk Area Communications Capabilities.--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. URBAN AND OTHER HIGH RISK AREA COMMUNICATIONS 
                   CAPABILITIES.

       ``(a) In General.--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 provide technical 
     guidance, training, and other assistance, as appropriate, to 
     support the rapid establishment of consistent, secure, and 
     effective interoperable communications capabilities in the 
     event of an emergency in urban and other areas determined by 
     the Secretary to be at consistently high levels of risk from 
     terrorist attack.
       ``(b) Minimum Capabilities.--The interoperable 
     communications capabilities established under subsection (a) 
     shall ensure the ability of all levels of government 
     agencies, emergency response providers (as defined in section 
     2 of the Homeland Security Act of 2002 (6 U.S.C. 101)), and 
     other organizations with emergency response capabilities--
       ``(1) to communicate with each other in the event of an 
     emergency; and
       ``(2) to have appropriate and timely access to the 
     Information Sharing Environment described in section 1016 of 
     the National Security Intelligence Reform Act of 2004.''.
       (e) Multiyear Interoperability Grants.--
       (1) Multiyear commitments.--In awarding grants to any 
     State, region, local government, or Indian tribe for the 
     purposes of enhancing interoperable communications 
     capabilities for emergency response providers, the Secretary 
     may commit to obligate Federal assistance beyond the current 
     fiscal year, subject to the limitations and restrictions in 
     this subsection.
       (2) Restrictions.--
       (A) Time limit.--No multiyear interoperability commitment 
     may exceed 3 years in duration.
       (B) Amount of committed funds.--The total amount of 
     assistance the Secretary has committed to obligate for any 
     future fiscal year under paragraph (1) may not exceed 
     $150,000,000.
       (3) Letters of intent.--
       (A) Issuance.--Pursuant to paragraph (1), the Secretary may 
     issue a letter of intent to an applicant committing to 
     obligate from future budget authority an amount, not more 
     than the Federal Government's share of the project's cost, 
     for an interoperability communications project (including 
     interest costs and costs of formulating the project).
       (B) Schedule.--A letter of intent under this paragraph 
     shall establish a schedule under which the Secretary will 
     reimburse the applicant for the Federal Government's share of 
     the project's costs, as amounts become available, if the 
     applicant, after the Secretary issues the letter, carries out 
     the project before receiving amounts under a grant issued by 
     the Secretary.
       (C) Notice to secretary.--An applicant that is issued a 
     letter of intent under this subsection shall notify the 
     Secretary of the applicant's intent to carry out a project 
     pursuant to the letter before the project begins.
       (D) Notice to congress.--The Secretary shall transmit a 
     written notification to the Congress no later than 3 days 
     before the issuance of a letter of intent under this section.
       (E) Limitations.--A letter of intent issued under this 
     section is not an obligation of the Government under section 
     1501 of title 31, United States Code, and is not deemed to be 
     an administrative commitment for financing. An obligation or 
     administrative commitment may be made only as amounts are 
     provided in authorization and appropriations laws.
       (F) Statutory construction.--Nothing in this subsection 
     shall be construed--
       (i) to prohibit the obligation of amounts pursuant to a 
     letter of intent under this subsection in the same fiscal 
     year as the letter of intent is issued; or
       (ii) to apply to, or replace, Federal assistance intended 
     for interoperable communications that is not provided 
     pursuant to a commitment under this subsection.
       (f) Interoperable Communications Plans.--Any applicant 
     requesting funding assistance from the Secretary for 
     interoperable communications for emergency response providers 
     shall submit an Interoperable Communications Plan to the 
     Secretary for approval. Such a plan shall--
       (1) describe the current state of communications 
     interoperability in the applicable jurisdictions among 
     Federal, State, and local emergency response providers and 
     other relevant private resources;
       (2) describe the available and planned use of public safety 
     frequency spectrum and resources for interoperable 
     communications within such jurisdictions;
       (3) describe how the planned use of spectrum and resources 
     for interoperable communications is compatible with 
     surrounding capabilities and interoperable communications 
     plans of Federal, State, and local governmental entities, 
     military installations, foreign governments, critical 
     infrastructure, and other relevant entities;
       (4) include a 5-year plan for the dedication of Federal, 
     State, and local government and private resources to achieve 
     a consistent, secure, and effective interoperable 
     communications system, including planning, system design and 
     engineering, testing and technology development, procurement 
     and installation, training, and operations and maintenance; 
     and
       (5) describe how such 5-year plan meets or exceeds any 
     applicable standards and grant requirements established by 
     the Secretary.
       (g) 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).
       (h) 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.''.
       (i) Sense of Congress Regarding Interoperable 
     Communications.--
       (1) Finding.--The Congress finds that--
       (A) many first responders working in the same jurisdiction 
     or in different jurisdictions cannot effectively and 
     efficiently communicate with one another; and
       (B) their inability to do so threatens the public's safety 
     and may result in unnecessary loss of lives and property.
       (2) Sense of congress.--It is the sense of Congress that 
     interoperable emergency communications systems and radios 
     should continue to be deployed as soon as practicable for use 
     by the first responder community, and that upgraded and new 
     digital communications systems and new digital radios must 
     meet prevailing national, voluntary consensus standards for 
     interoperability.

     SEC. 7304. REGIONAL MODEL STRATEGIC PLAN PILOT PROJECTS.

       (a) Pilot Projects.--Consistent with sections 302 and 430 
     of the Homeland Security Act of 2002 (6 U.S.C. 182, 238), not 
     later than 90 days after the date of enactment of this Act, 
     the Secretary of Homeland Security shall establish not fewer 
     than 2 pilot projects in high threat urban areas or regions 
     that are likely to implement a national model strategic plan.
       (b) Purposes.--The purposes of the pilot projects required 
     by this section shall be to develop a regional strategic plan 
     to foster interagency communication in the area in which it 
     is established and coordinate the gathering of all Federal, 
     State, and local first responders in that area, consistent 
     with the national strategic plan developed by the Department 
     of Homeland Security.
       (c) Selection Criteria.--In selecting urban areas for the 
     location of pilot projects under this section, the Secretary 
     shall consider--
       (1) the level of risk to the area, as determined by the 
     Department of Homeland Security;
       (2) the number of Federal, State, and local law enforcement 
     agencies located in the area;
       (3) the number of potential victims from a large scale 
     terrorist attack in the area; and
       (4) such other criteria reflecting a community's risk and 
     vulnerability as the Secretary determines is appropriate.
       (d) Interagency Assistance.--The Secretary of Homeland 
     Security shall consult with the Secretary of Defense as 
     necessary for the development of the pilot projects required 
     by this section, including examining relevant standards, 
     equipment, and protocols in order to improve interagency 
     communication among first responders.
       (e) Reports to Congress.--The Secretary of Homeland 
     Security shall submit to Congress--
       (1) an interim report regarding the progress of the 
     interagency communications pilot projects required by this 
     section 6 months after the date of enactment of this Act; and
       (2) a final report 18 months after that date of enactment.

[[Page H10986]]

       (f) Funding.--There are authorized to be made available to 
     the Secretary of Homeland Security, such sums as may be 
     necessary to carry out this section.

     SEC. 7305. 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) Preparedness in the private sector and public sector 
     for rescue, restart and recovery of operations should 
     include, as appropriate--
       (A) a plan for evacuation;
       (B) adequate communications capabilities; and
       (C) a plan for continuity of operations.
       (3) 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 establishes a common set of criteria and terminology 
     for preparedness, disaster management, emergency management, 
     and business continuity programs.
       (4) The mandate of the Department of Homeland Security 
     extends to working with the private sector, as well as 
     government entities.
       (b) Sense of Congress on Private Sector Preparedness.--It 
     is the sense of Congress that the Secretary of Homeland 
     Security should promote, where appropriate, the adoption of 
     voluntary national preparedness standards 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.

     SEC. 7306. CRITICAL INFRASTRUCTURE AND READINESS ASSESSMENTS.

       (a) Findings.--Congress makes the following findings:
       (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) The report of the National Commission on Terrorist 
     Attacks Upon the United States recommended that 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;
       (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 in 
     conjunction with the reporting requirements of Public Law 
     108-330, 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. 7307. NORTHERN COMMAND AND DEFENSE OF THE UNITED STATES 
                   HOMELAND.

       It is the sense of Congress that the Secretary of Defense 
     should regularly assess the adequacy of the plans and 
     strategies of the United States Northern Command 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, should it be 
     called upon to do so by the President.

     SEC. 7308. EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, this 
     subtitle shall take effect on the date of enactment of this 
     Act.
                     Subtitle D--Homeland Security

     SEC. 7401. SENSE OF CONGRESS ON FIRST RESPONDER FUNDING.

       It is the sense of Congress that Congress must pass 
     legislation in the first session of the 109th Congress to 
     reform the system for distributing grants to enhance State 
     and local government prevention of, preparedness for, and 
     response to acts of terrorism.

     SEC. 7402. 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--
       (1) in paragraph (6), by striking ``and'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting a semicolon; and
       (3) 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;
       ``(9) coordinating with the Directorate of Border and 
     Transportation Security and the Assistant Secretary for Trade 
     Development of the Department of Commerce on issues related 
     to the travel and tourism industries; and
       ``(10) consulting with the Office of State and Local 
     Government Coordination and Preparedness on all matters of 
     concern to the private sector, including the tourism 
     industry.''.

     SEC. 7403. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION 
                   SYSTEM.

       (a) Study.--The Secretary of Homeland Security, in 
     cooordination with the Chairman of the Federal Communications 
     Commission, and 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 
     enactment of this Act, the Secretary shall submit to Congress 
     a report regarding the conclusions of the study.

     SEC. 7404. PILOT STUDY TO MOVE WARNING SYSTEMS INTO THE 
                   MODERN DIGITAL AGE.

       (a) Pilot Study.--The Secretary of Homeland Security, from 
     funds made available for improving the national system to 
     notify the general public in the event of a terrorist attack, 
     and in consultation with the Attorney General, the Secretary 
     of Transportation, the heads of other appropriate Federal 
     agencies, the National Association of State Chief Information 
     Officers, and other stakeholders with respect to public 
     warning systems, shall conduct a pilot study under which the 
     Secretary of Homeland Security may issue public warnings 
     regarding threats to homeland security using a warning system 
     that is similar to the AMBER Alert communications network.
       (b) Report.--Not later than 9 months after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to Congress a report regarding the findings, 
     conclusions, and recommendations of the pilot study.
       (c) Prohibition on Use of Highway Trust Fund.--No funds 
     derived from the Highway Trust Fund may be transferred to, 
     made available to, or obligated by the Secretary of Homeland 
     Security to carry out this section

     SEC. 7405. 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.

     SEC. 7406. EMERGENCY PREPAREDNESS COMPACTS.

       Section 611(h) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5196(h)) is amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     paragraphs (2), (3), and (4), respectively;
       (2) by indenting paragraph (2) (as so redesignated); and
       (3) by striking the subsection designation and heading and 
     inserting the following:
       ``(h) Emergency Preparedness Compacts.--(1) The Director 
     shall establish a program supporting the development of 
     emergency preparedness compacts for acts of terrorism, 
     disasters, and emergencies throughout the Nation, by--
       ``(A) identifying and cataloging existing emergency 
     preparedness compacts for acts of terrorism, disasters, and 
     emergencies at the State and local levels of government;
       ``(B) disseminating to State and local governments examples 
     of best practices in the development of emergency 
     preparedness compacts and models of existing emergency 
     preparedness compacts, including agreements involving 
     interstate jurisdictions; and
       ``(C) completing an inventory of Federal response 
     capabilities for acts of terrorism, disasters, and 
     emergencies, making such inventory available to appropriate 
     Federal, State, and local government officials, and ensuring 
     that such inventory is as current and accurate as 
     practicable.''.

     SEC. 7407. 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 is established 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) In general.--The Secretary shall assign permanent 
     staff to the Office, consistent with effective management of 
     Department resources.

[[Page H10987]]

       ``(2) Liaisons.--The Secretary shall designate senior 
     employees from each appropriate subdivision of the Department 
     that has significant counternarcotics responsibilities to act 
     as a liaison between that subdivision and the Office of 
     Counternarcotics Enforcement.
       ``(c) Limitation on Concurrent Employment.--Except as 
     provided in subsection (d), the Director of the Office of 
     Counternarcotics Enforcement shall not be employed by, 
     assigned to, or serve as the head of, any other branch of the 
     Federal Government, any State or local government, or any 
     subdivision of the Department other than the Office of 
     Counternarcotics Enforcement.
       ``(d) Eligibility To Serve as the United States 
     Interdiction Coordinator.--The Director of the Office of 
     Counternarcotics Enforcement may be appointed as the United 
     States Interdiction Coordinator by the Director of the Office 
     of National Drug Control Policy, and shall be the only person 
     at the Department eligible to be so appointed.
       ``(e) Responsibilities.--The Secretary shall direct the 
     Director of the Office of Counternarcotics Enforcement--
       ``(1) to coordinate policy and operations within the 
     Department, between the Department and other Federal 
     departments and agencies, and between the Department and 
     State and local agencies with respect to stopping the entry 
     of illegal drugs into the United States;
       ``(2) to ensure the adequacy of resources within the 
     Department for stopping the entry of illegal drugs into the 
     United States;
       ``(3) to recommend the appropriate financial and personnel 
     resources necessary to help the Department better fulfill its 
     responsibility to stop the entry of illegal drugs into the 
     United States;
       ``(4) within the 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) Savings Clause.--Nothing in this section shall be 
     construed to authorize direct control of the operations 
     conducted by the Directorate of Border and Transportation 
     Security, the Coast Guard, or joint terrorism task forces.
       ``(g) 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 Amendments.--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:
       ``(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.

     SEC. 7408. 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 et seq.) 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.''.
                   Subtitle E--Public Safety Spectrum

     SEC. 7501. DIGITAL TELEVISION CONVERSION DEADLINE.

       (a) Findings.--Congress finds the following:
       (1) Congress granted television broadcasters additional 6 
     megahertz blocks of spectrum to transmit digital broadcasts 
     simultaneously with the analog broadcasts they submit on 
     their original 6 megahertz blocks of spectrum.
       (2) Section 309(j)(14) of the Communications Act of 1934 
     (47 U.S.C. 309(j)(14)) requires each television broadcaster 
     to cease analog transmissions and return 6 megahertz of 
     spectrum not later than--
       (A) December 31, 2006; or
       (B) the date on which more than 85 percent of the 
     television households in the market of such broadcaster can 
     view digital broadcast television channels using a digital 
     television, a digital-to-analog converter box, cable service, 
     or satellite service.
       (3) Twenty-four megahertz of spectrum occupied by 
     television broadcasters has been earmarked for use by first 
     responders as soon as the television broadcasters return the 
     spectrum broadcasters being used to provide analog 
     transmissions. This spectrum would be ideal to provide first 
     responders with interoperable communications channels.
       (4) Large parts of the vacated spectrum could be auctioned 
     for advanced commercial services, such as wireless broadband.
       (5) The 85 percent penetration test described in paragraph 
     (2)(B) could delay the termination of analog television 
     broadcasts and the return of spectrum well beyond 2007, 
     hindering the use of that spectrum for these important public 
     safety and advanced commercial uses.
       (6) While proposals to require broadcasters to return, on a 
     date certain, the spectrum earmarked for future public safety 
     use may improve the ability of public safety entities to 
     begin planning for use of this spectrum, such proposals have 
     certain deficiencies. The proposals would require the 
     dislocation of up to 75 broadcast stations, which also serve 
     a critical public safety function by broadcasting weather, 
     traffic, disaster, and other safety alerts. Such disparate 
     treatment of broadcasters would be unfair to the broadcasters 
     and their respective viewers. Requiring the return of all 
     analog broadcast spectrum by a date certain would have the 
     benefit of addressing the digital television transition in a 
     comprehensive fashion that treats all broadcasters and 
     viewers equally, while freeing spectrum for advanced 
     commercial services.
       (7) The Federal Communications Commission should consider 
     all regulatory means available to expedite the return of the 
     analog spectrum.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) Congress must act to pass legislation in the first 
     session of the 109th Congress that establishes a 
     comprehensive approach to the timely

[[Page H10988]]

     return of analog broadcast spectrum as early as December 31, 
     2006; and
       (2) any delay in the adoption of the legislation described 
     in paragraph (1) will delay the ability of public safety 
     entities to begin planning to use this needed spectrum.

     SEC. 7502. STUDIES ON TELECOMMUNICATIONS CAPABILITIES AND 
                   REQUIREMENTS.

       (a) Allocations of Spectrum for Emergency Response 
     Providers.--The Federal Communications Commission shall, in 
     consultation with the Secretary of Homeland Security and the 
     National Telecommunications and Information Administration, 
     conduct a study to assess short-term and long-term needs for 
     allocations of additional portions of the electromagnetic 
     spectrum for Federal, State, and local emergency response 
     providers, including whether or not an additional allocation 
     of spectrum in the 700 megahertz band should be granted by 
     Congress to such emergency response providers.
       (b) Strategies To Meet Public Safety Telecommunications 
     Requirements.--The Secretary of Homeland Security shall, in 
     consultation with the Federal Communications Commission and 
     the National Telecommunications and Information 
     Administration, conduct a study to assess strategies that may 
     be used to meet public safety telecommunications needs, 
     including--
       (1) the need and efficacy of deploying nationwide 
     interoperable communications networks (including the 
     potential technical and operational standards and protocols 
     for nationwide interoperable broadband mobile communications 
     networks that may be used by Federal, State, regional, and 
     local governmental and nongovernmental public safety, 
     homeland security, and other emergency response personnel);
       (2) the capacity of public safety entities to utilize 
     wireless broadband applications; and
       (3) the communications capabilities of all emergency 
     response providers, including hospitals and health care 
     workers, and current efforts to promote communications 
     coordination and training among emergency response providers.
       (c) Study Requirements.--In conducting the studies required 
     by subsections (a) and (b), the Secretary of Homeland 
     Security and the Federal Communications Commission shall--
       (1) seek input from Federal, State, local, and regional 
     emergency response providers regarding the operation and 
     administration of a potential nationwide interoperable 
     broadband mobile communications network; and
       (2) consider the use of commercial wireless technologies to 
     the greatest extent practicable.
       (d) Reports.--(1) Not later than one year after the date of 
     enactment of this Act, the Federal Communications Commission 
     (in the case of the study required by subsection (a)) and the 
     Secretary of Homeland Security (in the case of the study 
     required by subsection (b)) shall submit to the appropriate 
     committees of Congress a report on such study, including the 
     findings of such study.
       (2) In this subsection, the term ``appropriate committees 
     of Congress'' means--
       (A) the Committee on Commerce, Science, and Transportation 
     and the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (B) the Committee on Energy and Commerce and the Select 
     Committee on Homeland Security of the House of 
     Representatives.
                  Subtitle F--Presidential Transition

     SEC. 7601. 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 Federal 
     Bureau of Investigation or other appropriate agency and then, 
     upon taking effect and designation, to the agency designated 
     by the President under section 115(b) of the National 
     Intelligence Reform 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 responsible agency or agencies 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 the Senate Regarding Expedited Consideration 
     of National Security Nominees.--It is the sense of the Senate 
     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 such 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.--
       (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 
     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) Effective Date.--Notwithstanding section 351, this 
     section and the amendments made by this section shall take 
     effect on the date of enactment of this Act.
Subtitle G--Improving International Standards and Cooperation to Fight 
                          Terrorist Financing

     SEC. 7701. IMPROVING INTERNATIONAL STANDARDS AND COOPERATION 
                   TO FIGHT TERRORIST FINANCING.

       (a) Findings.--Congress makes the following findings:
       (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, the United Nations Security Council and its 
     committees, such as the 1267 and 1373 Committees, the 
     Financial Action Task Force (FATF), and various international 
     financial institutions, including 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 international financial community has become 
     engaged in the global fight against terrorist financing. The 
     Financial Action Task Force has focused 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 
     Group of Seven and the Group of Twenty Finance Ministers are 
     developing action plans to curb the financing of terror. In 
     addition, other economic and regional fora, such as the Asia-
     Pacific Economic Cooperation (APEC) Forum, and the Western 
     Hemisphere Financial Ministers, have been used to marshal 
     political will and actions in support of combating 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 
     Program (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 efforts.
       (6) Technical assistance programs from the United States 
     and other nations, coordinated with the Department of State 
     and other departments and agencies, are playing an important 
     role in helping countries and jurisdictions address 
     shortcomings in their AML and CFT regimes and bringing their 
     regimes into conformity with international standards. 
     Training is coordinated within the United States Government, 
     which leverages multilateral organizations and bodies and 
     international financial institutions to internationalize the 
     conveyance of technical assistance.
       (7) In fulfilling its duties in advancing incorporation of 
     AML and CFT standards into the IFIs as part of the IFIs' work 
     on protecting the integrity of the international monetary 
     system, the Department of the Treasury, under the guidance of 
     the Secretary of the Treasury, has effectively brought 
     together all of the key United States Government agencies. In 
     particular, United States Government agencies continue to 
     work together to foster broad support

[[Page H10989]]

     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 Congress Regarding Success in Multilateral 
     Organizations.--It is the sense of 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. The 
     efforts of the Secretary in this regard should include, where 
     necessary or appropriate, multilateral action against 
     countries whose counter-money laundering regimes and efforts 
     against the financing of terrorism fall below recognized 
     international standards.

     SEC. 7702. DEFINITIONS.

       In this subtitle--
       (1) the term ``international financial institutions'' has 
     the same meaning as in section 1701(c)(2) of the 
     International Financial Institutions Act;
       (2) 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; and
       (3) the terms ``Interagency Paper on Sound Practices to 
     Strengthen the Resilience of the U.S. Financial System'' and 
     ``Interagency Paper'' mean the interagency paper prepared by 
     the Board of Governors of the Federal Reserve System, the 
     Comptroller of the Currency, and the Securities and Exchange 
     Commission that was announced in the Federal Register on 
     April 8, 2003.

     SEC. 7703. 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:
       ``(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 counterterrorist 
     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 the International 
     Financial Institutions Act (22 U.S.C. 262r-4(b)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) the status of implementation of international anti-
     money laundering and counterterrorist financing standards by 
     the International Monetary Fund, the multilateral development 
     banks, and other multilateral financial policymaking 
     bodies.''.

     SEC. 7704. 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.
              Subtitle H--Emergency Financial Preparedness

     SEC. 7801. DELEGATION AUTHORITY OF THE SECRETARY OF THE 
                   TREASURY.

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

     SEC. 7802. TREASURY SUPPORT FOR FINANCIAL SERVICES INDUSTRY 
                   PREPAREDNESS AND RESPONSE AND CONSUMER 
                   EDUCATION.

       (a) Findings.--Congress finds that the Secretary of the 
     Treasury--
       (1) has successfully communicated and coordinated with the 
     private-sector financial services industry about financial 
     infrastructure preparedness and response issues;
       (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) Sense of Congress.--It is the sense of Congress that 
     the Secretary of the Treasury, in consultation with the 
     Secretary of Homeland Security, other Federal agency 
     partners, and private-sector financial organization partners, 
     should--
       (1) furnish sufficient personnel and technological and 
     financial resources to educate consumers and employees of the 
     financial services industry about domestic counterterrorist 
     financing activities, particularly about--
       (A) how the public and private sector organizations 
     involved in such activities can combat terrorism while 
     protecting and preserving the lives and civil liberties of 
     consumers and employees of the financial services industry; 
     and
       (B) how the consumers and employees of the financial 
     services industry can assist the public and private sector 
     organizations involved in such activities; and
       (2) submit annual reports to Congress on efforts to 
     accomplish subparagraphs (A) and (B) of paragraph (1).
       (c) Report on Public-Private Partnerships.--Before the end 
     of the 6-month period beginning on the date of 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 that 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 such partnerships; and
       (2) recommendations for administrative or legislative 
     action regarding such partnerships, as the Secretary may 
     determine to be appropriate.

     SEC. 7803. EMERGENCY SECURITIES RESPONSE ACT OF 2004.

       (a) Short Title.--This section may be cited as the 
     ``Emergency Securities Response Act of 2004''.
       (b) Extension of Emergency Order Authority of the 
     Securities and Exchange Commission.--
       (1) Extension of authority.--Section 12(k)(2) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(2)) is 
     amended to read as follows:
       ``(2) Emergency orders.--
       ``(A) In general.--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) Effective period.--An order of the Commission under 
     this paragraph shall continue in effect for the period 
     specified by the Commission, and may be extended. Except as 
     provided in subparagraph (C), an order of the Commission 
     under this paragraph may not continue in effect for more than 
     10 business days, including extensions.
       ``(C) Extension.--An order of the Commission under this 
     paragraph may be extended to continue in effect for more than 
     10 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 10 
     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 
     continue in effect for more than 30 calendar days.
       ``(D) Security futures.--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.
       ``(E) Exemption.--In exercising its authority under this 
     paragraph, the Commission shall not be required to comply 
     with the provisions of--
       ``(i) section 19(c); or
       ``(ii) section 553 of title 5, United States Code.''.
       (c) Consultation; Definition of Emergency.--Section 
     12(k)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78l(k)(6)) is amended to read as follows:
       ``(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, the 
     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.--For purposes of this subsection--
       ``(A) 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

[[Page H10990]]

       ``(II) the transmission or processing of securities 
     transactions; and

       ``(B) notwithstanding section 3(a)(47), the term 
     `securities laws' does not include the Public Utility Holding 
     Company Act of 1935.''.
       (d) 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:
       ``(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 under this section, 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) with respect to transactions in securities 
     (other than exempted securities) or a market therein (or 
     significant portion or segment of that market).''.
       (e) Joint Report on Implementation of Financial System 
     Resilience Recommendations.--
       (1) 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.
       (2) Contents of report.--The report required by paragraph 
     (1) shall--
       (A) examine the efforts to date of private sector financial 
     services firms covered by the Interagency Paper to implement 
     enhanced business continuity plans;
       (B) examine the extent to which the implementation of such 
     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, and the cost and 
     technological implications of further dispersal;
       (C) examine the need to cover a larger range of private 
     sector financial services firms that play significant roles 
     in critical financial markets than those covered by the 
     Interagency Paper; and
       (D) recommend legislative and regulatory changes that 
     will--
       (i) expedite the effective implementation of the 
     Interagency Paper by all covered financial services entities; 
     and
       (ii) optimize the effective implementation of business 
     continuity planning by the financial services industry.
       (3) Confidentiality.--Any information provided to the Board 
     of Governors of the Federal Reserve System, the Comptroller 
     of the Currency, or the Securities and Exchange Commission 
     for the purposes of the preparation and submission of the 
     report required by paragraph (1) 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 
     that section 552.
       (4) Definition.--As used in this subsection, the terms 
     ``Interagency Paper on Sound Practices to Strengthen the 
     Resilience of the U.S. Financial System'' and ``Interagency 
     Paper'' mean the interagency paper prepared by the Board of 
     Governors of the Federal Reserve System, the Comptroller of 
     the Currency, and the Securities and Exchange Commission that 
     was announced in the Federal Register on April 8, 2003.

     SEC. 7804. PRIVATE SECTOR PREPAREDNESS.

       It is the sense of 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.
                       TITLE VIII--OTHER MATTERS
                    Subtitle A--Intelligence Matters

     SEC. 8101. INTELLIGENCE COMMUNITY USE OF NATIONAL 
                   INFRASTRUCTURE SIMULATION AND ANALYSIS CENTER.

       (a) In General.--The Director of National Intelligence 
     shall establish a formal relationship, including information 
     sharing, between the elements of the intelligence community 
     and the National Infrastructure Simulation and Analysis 
     Center.
       (b) Purpose.--The purpose of the relationship under 
     subsection (a) shall be to permit the intelligence community 
     to take full advantage of the capabilities of the National 
     Infrastructure Simulation and Analysis Center, particularly 
     vulnerability and consequence analysis, for real time 
     response to reported threats and long term planning for 
     projected threats.
          Subtitle B--Department of Homeland Security Matters

     SEC. 8201. HOMELAND SECURITY GEOSPATIAL INFORMATION.

       (a) Findings.--Congress makes the following findings:
       (1) Geospatial technologies and geospatial data improve 
     government capabilities to detect, plan for, prepare for, and 
     respond to disasters in order to save lives and protect 
     property.
       (2) Geospatial data improves the ability of information 
     technology applications and systems to enhance public 
     security in a cost-effective manner.
       (3) Geospatial information preparedness in the United 
     States, and specifically in the Department of Homeland 
     Security, is insufficient because of--
       (A) inadequate geospatial data compatibility;
       (B) insufficient geospatial data sharing; and
       (C) technology interoperability barriers.
       (b) Homeland Security Geospatial Information.--Section 703 
     of the Homeland Security Act of 2002 (6 U.S.C. 343) is 
     amended--
       (1) by inserting ``(a) In General.--'' before ``The Chief 
     Information''; and
       (2) by adding at the end the following:
       ``(b) Geospatial Information Functions.--
       ``(1) Definitions.--As used in this subsection:
       ``(A) Geospatial information.--The term `geospatial 
     information' means graphical or digital data depicting 
     natural or manmade physical features, phenomena, or 
     boundaries of the earth and any information related thereto, 
     including surveys, maps, charts, remote sensing data, and 
     images.
       ``(B) Geospatial technology.--The term `geospatial 
     technology' means any technology utilized by analysts, 
     specialists, surveyors, photogrammetrists, hydrographers, 
     geodesists, cartographers, architects, or engineers for the 
     collection, storage, retrieval, or dissemination of 
     geospatial information, including--
       ``(i) global satellite surveillance systems;
       ``(ii) global position systems;
       ``(iii) geographic information systems;
       ``(iv) mapping equipment;
       ``(v) geocoding technology; and
       ``(vi) remote sensing devices.
       ``(2) Office of geospatial management.--
       ``(A) Establishment.--The Office of Geospatial Management 
     is established within the Office of the Chief Information 
     Officer.
       ``(B) Geospatial information officer.--
       ``(i) Appointment.--The Office of Geospatial Management 
     shall be administered by the Geospatial Information Officer, 
     who shall be appointed by the Secretary and serve under the 
     direction of the Chief Information Officer.
       ``(ii) Functions.--The Geospatial Information Officer shall 
     assist the Chief Information Officer in carrying out all 
     functions under this section and in coordinating the 
     geospatial information needs of the Department.
       ``(C) Coordination of geospatial information.--The Chief 
     Information Officer shall establish and carry out a program 
     to provide for the efficient use of geospatial information, 
     which shall include--
       ``(i) providing such geospatial information as may be 
     necessary to implement the critical infrastructure protection 
     programs;
       ``(ii) providing leadership and coordination in meeting the 
     geospatial information requirements of those responsible for 
     planning, prevention, mitigation, assessment and response to 
     emergencies, critical infrastructure protection, and other 
     functions of the Department; and
       ``(iii) coordinating with users of geospatial information 
     within the Department to assure interoperability and prevent 
     unnecessary duplication.
       ``(D) Responsibilities.--In carrying out this subsection, 
     the responsibilities of the Chief Information Officer shall 
     include--
       ``(i) coordinating the geospatial information needs and 
     activities of the Department;
       ``(ii) implementing standards, as adopted by the Director 
     of the Office of Management and Budget under the processes 
     established under section 216 of the E-Government Act of 2002 
     (44 U.S.C. 3501 note), to facilitate the interoperability of 
     geospatial information pertaining to homeland security among 
     all users of such information within--

       ``(I) the Department;
       ``(II) State and local government; and
       ``(III) the private sector;

       ``(iii) coordinating with the Federal Geographic Data 
     Committee and carrying out the responsibilities of the 
     Department pursuant to Office of Management and Budget 
     Circular A-16 and Executive Order 12906; and
       ``(iv) making recommendations to the Secretary and the 
     Executive Director of the Office for State and Local 
     Government Coordination and Preparedness on awarding grants 
     to--

       ``(I) fund the creation of geospatial data; and
       ``(II) execute information sharing agreements regarding 
     geospatial data with State, local, and tribal governments.

       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this subsection for each fiscal year.''.
    Subtitle C--HOMELAND SECURITY CIVIL RIGHTS AND CIVIL LIBERTIES 
                               PROTECTION

     SEC. 8301. SHORT TITLE.

       This subtitle may be cited as the ``Homeland Security Civil 
     Rights and Civil Liberties Protection Act of 2004''.

     SEC. 8302. MISSION OF DEPARTMENT OF HOMELAND SECURITY.

       Section 101(b)(1) of the Homeland Security Act of 2002 (6 
     U.S.C. 111(b)(1)) is amended--
       (1) in subparagraph (F), by striking ``and'' after the 
     semicolon;
       (2) by redesignating subparagraph (G) as subparagraph (H); 
     and
       (3) by inserting after subparagraph (F) the following:
       ``(G) ensure that the civil rights and civil liberties of 
     persons are not diminished by efforts, activities, and 
     programs aimed at securing the homeland; and''.

     SEC. 8303. OFFICER FOR CIVIL RIGHTS AND CIVIL LIBERTIES.

       Section 705(a) of the Homeland Security Act of 2002 (6 
     U.S.C. 345(a)) is amended--
       (1) by amending the matter preceding paragraph (1) to read 
     as follows:
       ``(a) In General.--The Officer for Civil Rights and Civil 
     Liberties, who shall report directly to the Secretary, 
     shall--'';
       (2) by amending paragraph (1) to read as follows:

[[Page H10991]]

       ``(1) review and assess information concerning abuses of 
     civil rights, civil liberties, and profiling on the basis of 
     race, ethnicity, or religion, by employees and officials of 
     the Department;'';
       (3) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (4) by adding at the end the following:
       ``(3) assist the Secretary, directorates, and offices of 
     the Department to develop, implement, and periodically review 
     Department policies and procedures to ensure that the 
     protection of civil rights and civil liberties is 
     appropriately incorporated into Department programs and 
     activities;
       ``(4) oversee compliance with constitutional, statutory, 
     regulatory, policy, and other requirements relating to the 
     civil rights and civil liberties of individuals affected by 
     the programs and activities of the Department;
       ``(5) coordinate with the Privacy Officer to ensure that--
       ``(A) programs, policies, and procedures involving civil 
     rights, civil liberties, and privacy considerations are 
     addressed in an integrated and comprehensive manner; and
       ``(B) Congress receives appropriate reports regarding such 
     programs, policies, and procedures; and
       ``(6) investigate complaints and information indicating 
     possible abuses of civil rights or civil liberties, unless 
     the Inspector General of the Department determines that any 
     such complaint or information should be investigated by the 
     Inspector General.''.

     SEC. 8304. PROTECTION OF CIVIL RIGHTS AND CIVIL LIBERTIES BY 
                   OFFICE OF INSPECTOR GENERAL.

       Section 8I of the Inspector General Act of 1978 (5 U.S.C. 
     App.) is amended by adding at the end the following:
       ``(f)(1) The Inspector General of the Department of 
     Homeland Security shall designate a senior official within 
     the Office of Inspector General, who shall be a career member 
     of the civil service at the equivalent to the GS-15 level or 
     a career member of the Senior Executive Service, to perform 
     the functions described in paragraph (2).
       ``(2) The senior official designated under paragraph (1) 
     shall--
       ``(A) coordinate the activities of the Office of Inspector 
     General with respect to investigations of abuses of civil 
     rights or civil liberties;
       ``(B) receive and review complaints and information from 
     any source alleging abuses of civil rights and civil 
     liberties by employees or officials of the Department and 
     employees or officials of independent contractors or grantees 
     of the Department;
       ``(C) initiate investigations of alleged abuses of civil 
     rights or civil liberties by employees or officials of the 
     Department and employees or officials of independent 
     contractors or grantees of the Department;
       ``(D) ensure that personnel within the Office of Inspector 
     General receive sufficient training to conduct effective 
     civil rights and civil liberties investigations;
       ``(E) consult with the Officer for Civil Rights and Civil 
     Liberties regarding--
       ``(i) alleged abuses of civil rights or civil liberties; 
     and
       ``(ii) any policy recommendations regarding civil rights 
     and civil liberties that may be founded upon an investigation 
     by the Office of Inspector General;
       ``(F) provide the Officer for Civil Rights and Civil 
     Liberties with information regarding the outcome of 
     investigations of alleged abuses of civil rights and civil 
     liberties;
       ``(G) refer civil rights and civil liberties matters that 
     the Inspector General decides not to investigate to the 
     Officer for Civil Rights and Civil Liberties;
       ``(H) ensure that the Office of the Inspector General 
     publicizes and provides convenient public access to 
     information regarding--
       ``(i) the procedure to file complaints or comments 
     concerning civil rights and civil liberties matters; and
       ``(ii) the status of corrective actions taken by the 
     Department in response to Office of the Inspector General 
     reports; and
       ``(I) inform the Officer for Civil Rights and Civil 
     Liberties of any weaknesses, problems, and deficiencies 
     within the Department relating to civil rights or civil 
     liberties.''.

     SEC. 8305. PRIVACY OFFICER.

       Section 222 of the Homeland Security Act of 2002 (6 U.S.C. 
     142) is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     who shall report directly to the Secretary,'' after ``in the 
     Department'';
       (2) in paragraph (4), by striking ``and'' at the end;
       (3) by redesignating paragraph (5) as paragraph (6); and
       (4) by inserting after paragraph (4) the following:
       ``(5) coordinating with the Officer for Civil Rights and 
     Civil Liberties to ensure that--
       ``(A) programs, policies, and procedures involving civil 
     rights, civil liberties, and privacy considerations are 
     addressed in an integrated and comprehensive manner; and
       ``(B) Congress receives appropriate reports on such 
     programs, policies, and procedures; and''.

     SEC. 8306. PROTECTIONS FOR HUMAN RESEARCH SUBJECTS OF THE 
                   DEPARTMENT OF HOMELAND SECURITY.

       The Secretary of Homeland Security shall ensure that the 
     Department of Homeland Security complies with the protections 
     for human research subjects, as described in part 46 of title 
     45, Code of Federal Regulations, or in equivalent regulations 
     as promulgated by such Secretary, with respect to research 
     that is conducted or supported by the Department.
                       Subtitle D--Other Matters

     SEC. 8401. AMENDMENTS TO CLINGER-COHEN ACT 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''.

     SEC. 8402. ENTERPRISE ARCHITECTURE.

       (a) Enterprise Architecture Defined.--In this section, the 
     term ``enterprise architecture'' means a detailed outline or 
     blueprint of the information technology of the Federal Bureau 
     of Investigation that will satisfy the ongoing mission and 
     goals of the Federal Bureau of Investigation and that sets 
     forth specific and identifiable benchmarks.
       (b) Enterprise Architecture.--The Federal Bureau of 
     Investigation shall--
       (1) continually maintain and update an enterprise 
     architecture; and
       (2) maintain a state of the art and up to date information 
     technology infrastructure that is in compliance with the 
     enterprise architecture of the Federal Bureau of 
     Investigation.
       (c) Report.--Subject to subsection (d), the Director of the 
     Federal Bureau of Investigation shall, on an annual basis, 
     submit to the Committees on the Judiciary of the Senate and 
     House of Representatives a report on whether the major 
     information technology investments of the Federal Bureau of 
     Investigation are in compliance with the enterprise 
     architecture of the Federal Bureau of Investigation and 
     identify any inability or expectation of inability to meet 
     the terms set forth in the enterprise architecture.
       (d) Failure To Meet Terms.--If the Director of the Federal 
     Bureau of Investigation identifies any inability or 
     expectation of inability to meet the terms set forth in the 
     enterprise architecture in a report under subsection (c), the 
     report under subsection (c) shall--
       (1) be twice a year until the inability is corrected;
       (2) include a statement as to whether the inability or 
     expectation of inability to meet the terms set forth in the 
     enterprise architecture is substantially related to 
     resources; and
       (3) if the inability or expectation of inability is 
     substantially related to resources, include a request for 
     additional funding that would resolve the problem or a 
     request to reprogram funds that would resolve the problem.
       (e) Enterprise Architecture, Agency Plans and Reports.--
     This section shall be carried out in compliance with the 
     requirements set forth in section 1016 (e) and (h).

     SEC. 8403. FINANCIAL DISCLOSURE AND RECORDS.

       (a) Study.--Not later than 90 days after the date of 
     enactment of this Act, the Office of Government Ethics shall 
     submit to Congress a report--
       (1) evaluating the financial disclosure process for 
     employees of the executive branch of Government; and
       (2) making recommendations for improving that process.
       (b) Transmittal of Record Relating to Presidentially 
     Appointed Positions to Presidential Candidates.--
       (1) Definition.--In this section, the term ``major party'' 
     has the meaning given that term under section 9002(6) of the 
     Internal Revenue Code of 1986.
       (2) Transmittal.--
       (A) In general.--Not later than 15 days after the date on 
     which a major party nominates a candidate for President, the 
     Office of Personnel Management shall transmit an electronic 
     record to that candidate on Presidentially appointed 
     positions.
       (B) Other candidates.--After making transmittals under 
     subparagraph (A), the Office of Personnel Management may 
     transmit an electronic record on Presidentially appointed 
     positions to any other candidate for President.
       (3) Content.--The record transmitted under this subsection 
     shall provide--
       (A) all positions which are appointed by the President, 
     including the title and description of the duties of each 
     position;
       (B) the name of each person holding a position described 
     under subparagraph (A);
       (C) any vacancy in the positions described under 
     subparagraph (A), and the period of time any such position 
     has been vacant;
       (D) the date on which an appointment made after the 
     applicable Presidential election for any position described 
     under subparagraph (A) is necessary to ensure effective 
     operation of the Government; and
       (E) any other information that the Office of Personnel 
     Management determines is useful in making appointments.
       (c) Reduction of Positions Requiring Appointment With 
     Senate Confirmation.--
       (1) Definition.--In this subsection, the term ``agency'' 
     means an Executive agency as defined under section 105 of 
     title 5, United States Code.
       (2) Reduction plan.--
       (A) 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--
       (i) the President;
       (ii) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (iii) the Committee on Government Reform of the House of 
     Representatives.
       (B) Content.--The plan under this paragraph shall provide 
     for the reduction of--
       (i) the number of positions within that agency that require 
     an appointment by the President,

[[Page H10992]]

     by and with the advice and consent of the Senate; and
       (ii) the number of levels of such positions within that 
     agency.
       (d) Office of Government Ethics Review of Conflict of 
     Interest Law.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Director of the Office of 
     Government Ethics, in consultation with the Attorney General 
     of the United States, shall conduct a comprehensive review of 
     conflict of interest laws relating to executive branch 
     employment and submit a report to--
       (A) the President;
       (B) the Committees on Homeland Security and Governmental 
     Affairs and the Judiciary of the Senate;
       (C) the Committees on Government Reform and the Judiciary 
     of the House of Representatives.
       (2) Contents.--The report under this subsection shall 
     examine sections 203, 205, 207, and 208 of title 18, United 
     States Code.

     SEC. 8404. EXTENSION OF REQUIREMENT FOR AIR CARRIERS TO HONOR 
                   TICKETS FOR SUSPENDED AIR PASSENGER SERVICE.

       Section 145(c) of the Aviation and Transportation Security 
     Act (49 U.S.C. 40101 note) is amended by striking ``more 
     than'' and all that follows and inserting ``after November 
     19, 2005.''.
       And the House agree to the same.

     Peter Hoekstra,
     David Dreier,
     Henry Hyde,
     Duncan Hunter,
     Jane Harman,
     Robert Menendez,
     Ike Skelton,
                                Managers on the Part of the House.

     Susan M. Collins,
     Joe Lieberman,
     Trent Lott,
     Richard J. Durbin,
     Mike DeWine,
     Pat Roberts,
     John D. Rockefeller IV,
     George V. Voinovich,
     John E. Sununu,
     Bob Graham,
     Frank Lautenberg,
     Norm Coleman,
                               Managers on the Part of the Senate.

     JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF THE CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the bill (S. 2845), to reform the 
     intelligence community and the intelligence and intelligence-
     related activities of the United States Government, and for 
     other purposes, submit the following joint statement to the 
     House and the Senate in explanation of the effect of the 
     action agreed upon by the managers and recommended in the 
     accompanying conference report.
       The House amendment struck all of the Senate bill after the 
     enacting clause and inserted a substitute text. The Senate 
     recedes from its disagreement to the amendment of the House 
     with an amendment that is a substitute for the Senate bill 
     and the House amendment.
       A summary of the substitute agreed to in conference is set 
     forth below:
       This legislation in part implements the recommendations of 
     the National Commission on Terrorist Attacks Upon the United 
     States (the ``9/11 Commission'') but also responds to other 
     studies and related commissions which focused on intelligence 
     reform for protecting the United State against acts of 
     terrorism. In July 2004, the 9/11 Commission released a 
     comprehensive report chronicling the circumstances leading up 
     to the terrorist attacks of September 11, 2001. The 
     Commission made over forty recommendations to strengthen the 
     United States's ability to prevent future terrorist attacks. 
     These recommendations included reorganization of the U.S. 
     Intelligence Community by creating an empowered Director of 
     National Intelligence (DNI) and a National Counterterrorism 
     Center (NCTC). The recommendations also spanned a variety of 
     other areas such as foreign policy and transportation 
     security. This conference report makes a number of necessary 
     changes in government structure, law enforcement, and 
     security arrangements to protect the American people better.
     Intelligence
       DNI. A number of past studies have found that the current 
     Director of Central Intelligence lacks sufficient authority 
     to steward the Intelligence Community and transform it into 
     an agile network to fight terrorist networks. In response, 
     and as envisioned by the Senate bill and the House amendment, 
     the conference report creates a DNI appointed by the 
     President, confirmed by the Senate, and without the 
     responsibility of directing the Central Intelligence Agency. 
     Also as envisioned by the Senate bill and the House 
     amendment, the DNI would head the Intelligence Community; 
     serve as the principal intelligence adviser to the President; 
     and oversee and direct the implementation of the National 
     Intelligence Program.
       The conference report's formulation of the DNI's 
     authorities is a composite of the authorities in the Senate 
     bill and the House amendment. For example, relying on various 
     House and Senate provisions, the conference report gives the 
     DNI strong authority concerning the National Intelligence 
     Program, such as unambiguous authority to task collection and 
     analysis. The conference report does not expand authority 
     under which information is classified, which is pursuant to 
     Executive Order or other Presidential directive, but rather 
     directs the DNI to establish and implement guidelines for the 
     intelligence community for the purpose of such classification 
     of information. In addition, the Conferees recognize the need 
     to provide the DNI with enhanced personnel transfer 
     flexibility in order to maximize the Intelligence Community's 
     functionality. The Conferees encourage the DNI to consult 
     with the Committees of the Congress enumerated by this 
     provision to establish mutually agreeable procedures to 
     fulfill the notice requirements in this provision.
       NCTC. The NCTC is an innovation designed to achieve 
     horizontal integration or ``matrix management'' for the 
     Executive Branch--meaning seamless coordination across 
     departmental lines against interdisciplinary problems 
     epitomized by terrorism. Once again fusing perspectives from 
     the Senate bill and the House amendment, the NCTC would be 
     the primary Executive Branch organization for 
     counterterrorism intelligence and strategic operational 
     planning.
       Security Clearances and FBI Restructuring. The conference 
     report rationalizes the Executive Branch's security clearance 
     process, which currently cannot satisfy the demand for 
     clearances in government and the private sector. Merging 
     visions articulated in the Senate bill and the House 
     amendment, the conference report seeks to bring greater 
     efficiency, speed, and interagency reciprocity to the 
     security clearance process while maintaining the highest 
     standards. Finally, the conference report contains a series 
     of provisions, taken from the Senate bill and the House 
     amendment, to restructure and buttress the FBI's intelligence 
     capability.
       Information Sharing. In order to help the government better 
     ``connect the dots,'' the conference report requires that the 
     President establish an Information Sharing Environment to 
     facilitate the sharing of terrorism information, through the 
     use of policy guidelines and technologies.
     Other issues
       Intelligence reorganization, while critical, is only one 
     part of the larger task of protecting the United States 
     against terrorism and combating the root causes of terrorism. 
     Indeed, the transnational threat of terrorism cuts across a 
     disparate array of issues: e.g., diplomacy, economic 
     development, immigration, and transportation. Thus the 
     conference report focuses not only on intelligence reform but 
     also on a spectrum of other reforms designed to protect 
     Americans.
       Foreign Relations. The conference report has a number of 
     provisions concerning relations between the United States and 
     key Middle Eastern and South Asian countries as well as to 
     improve the manner in which the United States conducts its 
     foreign relations. For example, the conference report 
     attempts to improve U.S. public diplomacy, educational and 
     cultural exchange programs, and foreign media outreach in 
     order to build good will and promote democracy and prosperity 
     in the Middle East. The conference report also includes 
     provisions designed to strengthen United States policy to 
     develop and implement a strategy to eliminate terrorist 
     sanctuaries.
       Transportation Security. The conference report blends House 
     and Senate language on similar concerns. The conference 
     report requires a national transportation security strategy, 
     improves the use of passenger watchlists, and otherwise 
     enhances the safety of aviation and other forms of travel. 
     Additionally, the conference report includes House provisions 
     relating to the use of biometric technology to regulate 
     access to secure areas of airports and Senate provisions 
     relating to air cargo and general aviation security.
       Terrorist Travel and Effective Screening. These sections 
     include an array of measures to disrupt terrorist travel and 
     intercept terrorists. For instance, the conference report 
     would improve intelligence collection and analysis on 
     terrorist travel. Also, it would tighten security standards 
     for key identification documents including driver's licenses, 
     birth certificates, and social security numbers.
       Border Protection, Immigration, and Visa Matters. These 
     provisions are designed to enhance security of U.S. borders 
     and the enforcement of border and immigration laws. For 
     example, the conference report blends House and Senate 
     provisions that call for an increase in the number of full-
     time border patrol agents. The conference report also 
     includes Senate provisions that permit the Secretary of 
     Homeland Security to carry out a pilot program to test 
     advanced technologies that will improve border security 
     between ports of entry along the northern border of the 
     United States. And it includes a House provision that 
     increases detention bed space available for immigration 
     detention and removal.
       Terrorism Prevention. These sections include measures to 
     provide additional enforcement tools against terrorist 
     activity, e.g. money laundering and terrorist financing laws. 
     The conference report adopts a House provision to amend the 
     Foreign Intelligence Surveillance Act concerning ``lone 
     wolf'' terrorists; a similar provision had previously passed 
     the Senate.
       Diplomacy, Foreign Aid, and the Military in the War on 
     Terrorism. In these provisions,

[[Page H10993]]

     the conference report guides the Executive Branch concerning 
     the use of all elements of national power--including 
     diplomacy, military action, intelligence, law enforcement, 
     economic policy, foreign aid, public diplomacy, and homeland 
     defense--to win the war on terrorism. The conference report 
     adopts Senate language on U.S.-Saudi relations and efforts to 
     combat Islamist terrorism. In addition, it includes House 
     language on terrorist sanctuaries and U.S. assistance to 
     Afghanistan and Pakistan.
       National Preparedness. The conference report consolidates 
     several sections on the Incident Command System and 
     interoperable communications from the Senate bill and the 
     House amendment. It includes a Senate provision authorizing 
     mutual aid for first responders in the National Capital 
     Region.
     Civil liberties and privacy
       The conference report creates a Privacy and Civil Liberties 
     Oversight Board that is charged with ensuring that privacy 
     and civil liberties concerns are appropriately considered in 
     the implementation of laws, regulations, and policies of the 
     government related to efforts to protect the Nation against 
     terrorism. The conference report also expresses a sense of 
     the Congress that a civil liberties and privacy officer 
     should be designated for each department and agency that 
     carries out law enforcement or anti-terrorism functions.
       The task of protecting the United States against terrorism 
     poses a daunting challenge. This conference report is a 
     significant step in the right direction for America.

     Peter Hoekstra,
     David Dreier,
     Henry Hyde,
     Duncan Hunter,
     Jane Harman,
     Robert Menendez,
     Ike Skelton,
                                Managers on the Part of the House.

     Susan M. Collins,
     Joe Lieberman,
     Trent Lott,
     Richard J. Durbin,
     Mike DeWine,
     Pat Roberts,
     John D. Rockefeller, IV,
     George V. Voinovich,
     John E. Sununu,
     Bob Graham,
     Frank Lautenberg,
     Norm Coleman,
     Managers on the Part of the Senate.

                          ____________________