[Congressional Record (Bound Edition), Volume 147 (2001), Part 13]
[Senate]
[Pages 19155-19159]
[From the U.S. Government Publishing Office, www.gpo.gov]



           FEDERAL GOVERNMENT NEEDS STRUCTURAL REORGANIZATION

  Mr. SPECTER. Mr. President, I have sought recognition to discuss the 
pending emergency caused by the horrific terrorist attacks on September 
11. There is a need for some structural reorganization of the Federal 
Government in accordance with the recommendations of a number of 
distinguished commissions which have studied these problems and in 
accordance with our own findings, as we have worked through the matters 
in the Senate Intelligence Committee and the Senate Judiciary 
Committee. There is also the need for legislation to expand the powers 
of law enforcement on terrorists.
  With respect to the newly created Office of Homeland Security, it is 
my thought there needs to be a structure whereby the position is made a 
Cabinet position. The Federal Government is fortunate to have secured 
the services of former Governor Tom Ridge of Pennsylvania to take on 
this responsibility. For the moment, the office has been created in the 
executive branch by an Executive Order, and I believe former Governor 
Ridge is correct when he says, even though other Government officials 
may not necessarily listen to him if there are turf battles, they 
certainly will listen to the President. That, I do believe, is true, as 
former Governor Ridge has represented it.
  When we talk about homeland security and that function, we are 
talking about something which needs to be institutionalized in order to 
go beyond the term of any President, to go beyond the term of any 
person who is in charge of that Department, and that, in accordance 
with our structure of Government, requires legislative action, in my 
judgment. This is something which we will have to work through with 
President Bush, with former Governor Ridge, and with the executive 
branch. However, I offer these thoughts as many Members of Congress are 
now considering this issue and considering legislation.
  Representative Thornberry has already introduced legislation in the 
House of Representatives. Senator Lieberman is working on similar 
legislation. Senator Robert Graham of Florida is working on 
legislation, as well. My staff and I have been in the process of 
working on legislation which I am not yet prepared to introduce, but at 
the conclusion of these remarks I will ask that draft copies of two 
bills be printed in the Record.
  We have had a number of very distinguished commissions analyze these 
problems. We have had the Hart-Rudman Commission analyze the problems 
directed to a secure national homeland. That commission pointed out 
that the keys to prevention are the following tools: 1. diplomacy; 2. 
U.S. diplomatic, intelligence, and military presence overseas; 3. 
vigilant systems of border security and surveillance. In order to 
enhance the effectiveness of the third key, the Hart-Rudman Commission 
recommended creating a national homeland security agency which would 
consist of the Coast Guard, the Customs Service, the Border Patrol, and 
FEMA, the Federal Emergency Management Agency. The legislation I am 
submitting today, which is in draft form, would adopt the 
recommendations of the Hart-Rudman Commission.
  There has been another distinguished commission, the Brown-Rudman 
Commission, which has studied the issues of intelligence and has come 
up with a method and a procedure for streamlining and restructuring the 
intelligence community.
  One of the considerations is that in many Departments of the Federal 
Government, there are smaller intelligence agencies, for example, in 
the Departments of Treasury, State, Agriculture, and many other 
Departments.
  At the present time, there is no effective way for dealing with all 
of these various Departments. The recommendation of the Brown-Rudman 
Commission was to consolidate and centralize, to give greater authority 
and power to the Director of Central Intelligence. The Director is 
charged not only with the operation of the Central Intelligence Agency, 
but also with the oversight of all the intelligence functions in the 
United States.
  Now, there has admittedly been some gaps and some failures--some 
major gaps and some major failures--in these turf battles. During the 
1995-1996 session of Congress, I had the privilege of serving as the 
Chairman of the Senate Intelligence Committee. I served in that 
position for 2 years, in addition to the 6 other years of service on 
the Intelligence Committee. There is a term limit of eight years on the 
Intelligence Committee. During the course of that work, I saw the turf 
battles among the various agencies and became very deeply involved in 
the issue of weapons of mass destruction, finding that there were 
dozens of agencies dealing with that issue.
  In the Intelligence Authorization Act for Fiscal Year 1996, a 
commission was created to study weapons of mass destruction. The 
commission was chaired by former CIA Director John Deutch,

[[Page 19156]]

and I served as the Vice Chairman of that commission. During the course 
of the commission work--work that was very similar to that of the Hart-
Rudman Commission, the Rumsfeld Commission, and the Brown-Rudman 
Commission--we noted the difficulties accorded to all of these 
important activities. It was the judgment of that commission that the 
structure be given to the Vice President of the United States on the 
ground that he or she--whoever the Vice President may be--would be the 
only individual, except for the President, who could handle 
intelligence coordination and the kinds of turf battles which are 
inevitable when there are numerous intelligence agencies at the 
Departments of State, Defense, Treasury, and Justice.
  So, it is my thought that we need to address the intelligence 
function so that we have the appropriate coordination and so that we do 
not have somebody on the FBI Watch List who enters the United States, 
buys an airplane ticket, and later becomes a terrorist, such as those 
that were part of the massive attack on September 11.
  The legislation which I suggest seeks to accomplish a structure for 
homeland security and also revises the intelligence functions of the 
U.S. Government.
  I ask unanimous consent to submit the text of a draft bill--and I 
emphasize that it is a draft because we are working on this with quite 
a number of Members--entitled ``Homeland Defense Act of 2001.'' I ask 
that this draft bill be printed in the Congressional Record at the 
conclusion of these remarks. I further ask unanimous consent that the 
text of a draft bill--and again, I emphasize draft because we are still 
working on it entitled ``Intelligence Reform Act of 2001'' be printed 
in the Congressional Record at the conclusion of these comments.
  There being no objection, the draft bills were ordered to be printed 
in the Record, as follows:

                                 S. --

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Homeland Defense Act of 
     2001''.

     SEC. 2. DEPARTMENT OF HOMELAND SECURITY.

       There is established an executive department of the United 
     States to be known as the Department of Homeland Security.

     SEC. 3. SECRETARY OF HOMELAND SECURITY.

       (a) Secretary of Homeland Security.--There shall be at the 
     head of the Department of Homeland Security the Secretary of 
     Homeland Security, who shall be appointed by the President by 
     and with the advice and consent of the Senate.
       (b) Duties.--Subject to the authority, direction, and 
     control of the President, the duties of the Secretary shall 
     be the following:
       (1) To plan, coordinate, and integrate United States 
     Government activities relating to homeland security, 
     including border security and emergency preparedness, and to 
     act as a focal point regarding natural and manmade crises and 
     emergency planning.
       (2) To work with State and local governments and executive 
     agencies in protecting United States homeland security, and 
     to support State officials through the use of regional 
     offices around the country.
       (3) To provide overall planning guidance to executive 
     agencies regarding United States homeland security.
       (4) To conduct exercise and training programs for employees 
     of the Department and establish effective command and control 
     procedures for the full range of potential contingencies 
     regarding United States homeland security, including 
     contingencies that require the substantial support of 
     military assets.
       (5) To annually develop a Federal response plan for 
     homeland security and emergency preparedness.
       (c) Membership on National Security Council.--Section 
     101(a) of the National Security Act of 1947 (50 U.S.C. 
     402(a)) is amended in the fourth sentence by striking 
     paragraphs (5), (6), and (7) and inserting the following new 
     paragraphs (5) and (6):
       ``(5) the Secretary of Homeland Security; and
       ``(6) each Secretary or Under Secretary of such other 
     executive department, or of a military department, as the 
     President shall designate.''.
       (d) Pay Level.--Section 5312 of title 5, United States 
     Code, is amended by adding at the end the following new item:
       ``Secretary of Homeland Security.''.

     SEC. 4. TRANSFER OF AUTHORITIES, FUNCTIONS, PERSONNEL, AND 
                   ASSETS TO DEPARTMENT OF HOMELAND SECURITY.

       The authorities, functions, personnel, and assets of the 
     following entities are hereby transferred to the Department 
     of Homeland Security:
       (1) The Federal Emergency Management Agency, the ten 
     regional offices of which shall be maintained and 
     strengthened by the Department.
       (2) The United States Customs Service, which shall be 
     maintained as a distinct entity within the Department.
       (3) The Border Patrol of the Immigration and Naturalization 
     Service, which shall be maintained as a distinct entity 
     within the Department.
       (4) The elements of the Immigration and Naturalization 
     Service (other than elements covered by paragraph (3)) 
     responsible for enforcement functions.
       (5) The United States Coast Guard, which shall be 
     maintained as a distinct entity within the Department.
       (6) The Critical Infrastructure Assurance Office and the 
     Institute of Information Infrastructure Protection of the 
     Department of Commerce.
       (7) The National Infrastructure Protection Center and the 
     National Domestic Preparedness Office of the Federal Bureau 
     of Investigation.

     SEC. 5. ESTABLISHMENT OF AGENCIES AND OFFICES.

       (a) Agencies.--The following agencies are hereby 
     established within the Department of Homeland Security:
       (1) Agency for prevention.--The Agency for Prevention, 
     which shall be responsible for the following:
       (A) Overseeing and coordinating all United States border 
     security activities.
       (B) Developing border and maritime security policy for the 
     United States.
       (C) Developing and implementing international standards for 
     enhanced security in transportation nodes.
       (2) Agency for critical infrastructure protection.--The 
     Agency for Critical Infrastructure Protection, which shall be 
     responsible for the following:
       (A) Acting as the Critical Information Technology, 
     Assurance, and Security Officer of the Department to 
     coordinate efforts to address the vulnerability of the United 
     States to electronic or physical attacks on critical 
     infrastructure of the United States, including utilities, 
     transportation nodes, and energy resources.
       (B) Overseeing the protection of such infrastructure and 
     the physical assets and information networks that make up 
     such infrastructure.
       (C) Ensuring the maintenance of a nucleus of cyber security 
     experts within the United States Government.
       (D) Enhancing sharing of information regarding cyber 
     security and physical security of the United States, tracking 
     vulnerabilities and proposing improved risk management 
     policies, and delineating the roles of various government 
     agencies in preventing, defending, and recovering from 
     attacks.
       (E) Coordinating with the Federal Communications Commission 
     in helping to establish cyber security policy, standards, and 
     enforcement mechanisms, and working closely with the 
     Commission on cyber security issues with respect to 
     international bodies.
       (F) Coordinating the activities of Information Sharing and 
     Analysis Centers to share information on threats, 
     vulnerabilities, individual incidents, and privacy issues 
     regarding United States homeland security.
       (G) Assuming the responsibilities carried out by the 
     Critical Infrastructure Assurance Office before the date of 
     the enactment of this Act.
       (H) Assuming the responsibilities carried out by the 
     National Infrastructure Protection Center before the date of 
     the enactment of this Act.
       (I) Supporting and overseeing the management of the 
     Institute for Information Infrastructure Protection.
       (3) Agency for emergency preparedness and response.--The 
     Agency for Emergency Preparedness and Response, which shall 
     be responsible for the following:
       (A) Carrying out all emergency preparedness and response 
     activities carried out by the Federal Emergency Management 
     Agency before the date of the enactment of this Act.
       (B) Assuming the responsibilities carried out by the 
     National Domestic Preparedness Office before the date of the 
     enactment of this Act.
       (C) Organizing and training local entities to respond to 
     emergencies and providing State and local authorities with 
     equipment for detection, protection, and decontamination in 
     an emergency involving weapons of mass destruction.
       (D) Overseeing Federal, State, and local emergency 
     preparedness training and exercise programs in keeping with 
     current intelligence estimates and providing a single staff 
     for Federal assistance for any emergency (including 
     emergencies caused by flood, earthquake, hurricane, disease, 
     or terrorist bomb).
       (E) Creating a National Crisis Action Center to act as the 
     focal point for monitoring emergencies and for coordinating 
     Federal support for State and local governments and the 
     private sector in crises.

[[Page 19157]]

       (F) Establishing training and equipment standards, 
     providing resource grants, and encouraging intelligence and 
     information sharing among the Department of Defense, the 
     Federal Bureau of Investigation, the Central Intelligence 
     Agency, State emergency management officials, and local first 
     responders.
       (G) Coordinating and integrating activities of the 
     Department of Defense, the National Guard, and other Federal 
     agencies into a Federal response plan.
       (H) Coordinating activities among private sector entities, 
     including entities within the medical community, with respect 
     to recovery, consequence management, and planning for 
     continuity of services.
       (I) Developing and managing a single response system for 
     national incidents in coordination with the Department of 
     Justice, the Federal Bureau of Investigation, the Department 
     of Health and Human Services, and the Centers for Disease 
     Control.
       (J) Maintaining Federal asset databases and supporting up-
     to-date State and local databases.
       (b) Offices.--The following offices are hereby established 
     within the Department:
       (1) Office of science and technology.--The Office of 
     Science and Technology, which shall advise the Secretary 
     regarding research and development efforts and priorities for 
     the agencies established in subsection (a).
       (2) Office of national assessment.--The Office of National 
     Assessment, which shall assess and analyze all intelligence 
     relating to terrorist threats to the United States.

     SEC. 6. REPORTING REQUIREMENTS.

       (a) Biennial Reports.--The Secretary of Homeland Security 
     shall submit to Congress on a biennial basis--
       (1) a report assessing the resources and requirements of 
     executive agencies relating to border security and emergency 
     preparedness issues; and
       (2) a report certifying the preparedness of the United 
     States to prevent, protect against, and respond to natural 
     disasters, cyber attacks, and incidents involving weapons of 
     mass destruction.
       (b) Additional Report.--Not later than one year after the 
     date of the enactment of this Act, the Secretary shall submit 
     to Congress a report--
       (1) assessing the progress of the Department of Homeland 
     Security in--
       (A) implementing the provisions of this Act; and
       (B) ensuring the core functions of each entity transferred 
     to the Department are maintained and strengthened; and
       (2) recommending any conforming changes in law necessary as 
     a result of the enactment and implementation of this Act.

     SEC. 7. COORDINATION WITH OTHER ORGANIZATIONS.

       The Secretary of Homeland Security shall establish and 
     maintain strong mechanisms for the sharing of information and 
     intelligence with United States and international 
     intelligence entities.

     SEC. 8. PLANNING, PROGRAMMING, AND BUDGETING PROCESS.

       The Secretary of Homeland Security shall establish 
     procedures to ensure that the planning, programming, 
     budgeting, and financial activities of the Department of 
     Homeland Security comport with sound financial and fiscal 
     management principles. Those procedures shall, at a minimum, 
     provide for the planning, programming, and budgeting of 
     activities of the Department using funds that are available 
     for obligation for a limited number of years.

     SEC. 9. ENVIRONMENTAL PROTECTION, SAFETY, AND HEALTH 
                   REQUIREMENTS.

       The Secretary of Homeland Security shall--
       (1) ensure that the Department of Homeland Security 
     complies with all applicable environmental, safety, and 
     health statutes and substantive requirements; and
       (2) develop procedures for meeting such requirements.

     SEC. 10. EFFECTIVE DATE.

       This Act shall take effect six months after the date of the 
     enactment of this Act.
                                  ____


                                 S. --

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Intelligence Reform Act of 
     2001''.

                     TITLE I--INTELLIGENCE MATTERS

     SEC. 101. ANNUAL DETERMINATION OF INTELLIGENCE PRIORITIES AND 
                   PLAN FOR EXECUTION OF INTELLIGENCE PRIORITIES.

       (a) Annual Determination of Priorities by National Security 
     Council.--Section 101(b) of the National Security Act of 1947 
     (50 U.S.C. 402(b)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) determine on an annual basis the priorities of the 
     United States with respect to the collection, analysis, and 
     dissemination of intelligence.''.
       (b) Annual Plan for Addressing Priorities by Director of 
     Central Intelligence.--Section 103(c) of that Act (50 U.S.C. 
     403-3(c)) is amended--
       (1) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively; and
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) prepare on an annual basis a plan for addressing the 
     priorities of the United States with respect to the 
     collection, analysis, and dissemination of intelligence as 
     identified by the National Security Council in the most 
     recent annual determination of such priorities under section 
     101(b)(3);''.

     SEC. 102. MODIFICATION OF POSITIONS AND RESPONSIBILITIES OF 
                   DEPUTY DIRECTORS OF CENTRAL INTELLIGENCE.

       (a) Abolishment of Current Positions and Establishment of 
     New Positions.--Subsection (b) of section 102 of the National 
     Security Act of 1947 (50 U.S.C. 403) is amended by striking 
     paragraphs (1) and (2) and inserting the following new 
     paragraphs:
       ``(1) There is a Deputy Director of Central Intelligence 
     for the Intelligence Community, who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       ``(2) There is a Deputy Director of Central Intelligence 
     for the Central Intelligence Agency, who shall be appointed 
     by the President, by and with the advice and consent of the 
     Senate.''.
       (b) Duties of New Positions of Deputy Director.--Subsection 
     (d) of that section is amended to read as follows:
       ``(d) Duties of Deputy Directors.--(1)(A) The Deputy 
     Director of Central Intelligence for the Central Intelligence 
     Agency shall assist the Director of Central Intelligence in 
     carrying out the Director's responsibilities under this Act.
       ``(B) The Deputy Director of Central Intelligence for the 
     Central Intelligence Agency shall act for, and exercise the 
     powers of, the Director of Central Intelligence during the 
     Director's absence or disability or during a vacancy in the 
     position of the Director of Central Intelligence.
       ``(2) The Deputy Director of Central Intelligence for the 
     Intelligence Community shall, subject to the direction of the 
     Director of Central Intelligence, be responsible for 
     coordinating the collection and analysis of intelligence by 
     the elements of the intelligence community other than the 
     Central Intelligence Agency, the Federal Bureau of 
     Investigation, and the elements of the intelligence community 
     within the Department of Defense.
       ``(3)(A) The Deputy Director of Central Intelligence for 
     the Central Intelligence Agency takes precedence in the 
     Office of the Director of Central Intelligence immediately 
     after the Director of Central Intelligence.
       ``(B) The Deputy Director of Central Intelligence for the 
     Intelligence Community takes precedence in the Office of the 
     Director of Central Intelligence immediately after the Deputy 
     Director of Central Intelligence for the Central Intelligence 
     Agency.''.
       (c) Conforming Amendment.--Subsection (e)(2) of that 
     section is amended by striking subparagraphs (B) and (C) and 
     inserting the following new subparagraphs:
       ``(B) The Deputy Director of Central Intelligence for the 
     Central Intelligence Agency.
       ``(C) The Deputy Director of Central Intelligence for the 
     Intelligence Community.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 103. MODIFICATION OF COMPOSITION AND RESPONSIBILITIES OF 
                   NATIONAL INTELLIGENCE COUNCIL.

       Subsection (b) of section 103 of the National Security Act 
     of 1947 (50 U.S.C. 403-3) is amended to read as follows:
       ``(b) National Intelligence Council.--(1) There is within 
     the Office of the Director of Central Intelligence the 
     National Intelligence Council (in this section referred to as 
     the `Council').
       ``(2) The Council shall be composed of the following:
       ``(A) The Director of Central Intelligence, who shall act 
     as chair of the Council.
       ``(B) The Director of the Federal Bureau of Investigation.
       ``(C) The Deputy Director of Central Intelligence for the 
     Intelligence Community.
       ``(D) The Deputy Director of Central Intelligence for the 
     Central Intelligence Agency.
       ``(E) The Assistant Secretary of Defense for Command, 
     Control, Communications, and Intelligence.
       ``(3)(A) The staff of the Council shall consist of the 
     following:
       ``(i) Such staff of the National Intelligence Council as of 
     the date of the enactment of the Intelligence Reform Act of 
     2001 as the Director of the Central Intelligence shall assign 
     to the Council.
       ``(ii) The Community Management Staff.
       ``(iii) Such other senior analysts within the intelligence 
     community, and substantive experts from the public sector or 
     private sector, as the Director shall appoint to the Council.
       ``(B) The Director shall prescribe appropriate security 
     requirements for staff 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,

[[Page 19158]]

     wherever possible, unduly intrusive requirements which the 
     Director considers unnecessary for this purpose.
       ``(4) The Council shall have the following 
     responsibilities:
       ``(A) To develop a program to improve the human 
     intelligence capabilities of the Government, and in 
     particular the human intelligence capabilities with respect 
     to terrorism, including operational guidelines for activities 
     under the program.
       ``(B) To develop a program to improve the collection and 
     analysis by the Government of information on economic, 
     science, and technology matters, including the use of open 
     sources.
       ``(C) To carry out such other duties relating to the 
     intelligence and intelligence-related activities of the 
     Government as the Director considers appropriate.
       ``(5) The Director shall, on an annual basis, submit to 
     Congress a report on the program under paragraph (4)(A). Each 
     report shall include a description of activities under the 
     program during the preceding year. Each report shall be in 
     unclassified form, but may include a classified annex.''.

     SEC. 104. MODIFICATION OF PARTICIPATION OF DIRECTOR OF 
                   CENTRAL INTELLIGENCE IN APPOINTMENT OF 
                   OFFICIALS RESPONSIBLE FOR INTELLIGENCE-RELATED 
                   ACTIVITIES.

       Section 106 of the National Security Act of 1947 (50 U.S.C. 
     403-6) is amended to read as follows:


    ``appointment of officials responsible for intelligence-related 
                               activities

       ``Sec. 106. (a) Consultation with DCI in Certain 
     Appointments.--In the event of a vacancy in a position 
     referred to in subsection (b), the head of the department or 
     agency having jurisdiction over the position shall consult 
     with the Director of Central Intelligence before appointing 
     an individual to fill the vacancy or recommending to the 
     President an individual to be nominated to fill the vacancy.
       ``(b) Positions.--Subsection (a) applies to the following 
     positions:
       ``(1) The Director of the National Security Agency.
       ``(2) The Director of the National Reconnaissance Office.
       ``(3) The Director of the National Imagery and Mapping 
     Agency.
       ``(4) The Director of the Defense Intelligence Agency.
       ``(5) The Assistant Secretary of State for Intelligence and 
     Research.
       ``(6) The Director of the Office of Nonproliferation and 
     National Security of the Department of Energy.
       ``(7) The Assistant Director, National Security Division of 
     the Federal Bureau of Investigation.''.

     SEC. 105. ASSESSMENT OF EFFECTIVENESS OF CURRENT TECHNICAL 
                   INTELLIGENCE CAPABILITIES.

       (a) Requirement for Report.--Not later than one year after 
     the date of the enactment of this Act, the Director of 
     Central Intelligence shall submit to Congress a report 
     containing a comprehensive assessment of the effectiveness of 
     the current technological capabilities of the United States 
     Government for the collection and analysis of intelligence. 
     The assessment shall address, in particular, the collection 
     of intelligence in cyberspace and the effect of new or 
     emerging communications technologies on the collection and 
     analysis of intelligence.
       (b) Form.--The report under subsection (a) shall be 
     submitted in unclassified form, but may include a classified 
     annex.

                    TITLE II--PROLIFERATION MATTERS

     SEC. 201. COORDINATION FOR COMBATING PROLIFERATION.

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


            ``national director for combatting proliferation

       ``Sec. 101A. (a) Establishment of Position.--There shall be 
     within the Executive Office of the President a Deputy 
     Assistant to the President for National Security Affairs who 
     shall be known as the `National Director for Combating 
     Proliferation' (in this section referred to as the `National 
     Director').
       ``(b) Responsibilities.--(1) The National Director shall--
       ``(A) advise the President and Vice President on 
     proliferation-related matters, through the Assistant to the 
     President for National Security Affairs; and
       ``(B) serve as Chair of the Council on Combating 
     Proliferation established under section 101B.
       ``(2) In carrying out paragraph (1)(B), the National 
     Director shall--
       ``(A) have the primary responsibility within the executive 
     branch of Government for ensuring the development of policy 
     with regard to proliferation and export controls;
       ``(B) development of a detailed plan for Federal agencies 
     to address the full range of proliferation-related issues and 
     activities, including integrated strategies for technology 
     development and acquisition, resource allocation, reducing 
     the threat from the independent states of the former Soviet 
     Union (as defined in section 3 of the FREEDOM Support Act), 
     intelligence collection and analysis, and domestic response;
       ``(C) work with the Director of the Office of Management 
     and Budget and the heads of other appropriate Federal 
     agencies in accordance with paragraph (4);
       ``(D) consult with Congress on the plan developed under 
     subparagraph (B); and
       ``(E) ensure that the requisite legal authorities are in 
     effect to act against proliferation-related threats.
       ``(3)(A) The Director of the Office of Management and 
     Budget shall establish a separate National Defense budget 
     subfunction for proliferation-related activities in the 
     President's budget.
       ``(B) The Director of the Office of Management and Budget, 
     working with the National Director and the head of each 
     proliferation-related agency, shall establish a Government-
     wide database on budget execution of proliferation-related 
     activities and develop goals and standards to evaluate those 
     activities annually.
       ``(C) The head of each proliferation-related agency shall 
     designate a senior proliferation budget manager.
       ``(D) No funds made available under the budget subfunction 
     for proliferation-related activities may be reprogrammed or 
     transferred without the prior approval of the National 
     Director and the Director of the Office of Management and 
     Budget.
       ``(E) In this paragraph, the term `proliferation-related 
     agency' means any of the Federal agencies specified in 
     section 101B(b)(1)(A).
       ``(4) In carrying out responsibilities under this 
     subsection, the National Director shall work through the 
     Assistant to the President for National Security Affairs to 
     ensure coordination with overall national security policy and 
     planning.


                 ``council on combatting proliferation

       ``Sec. 101B. (a) Establishment.--There is established an 
     interagency group to be known as the `Council on Combatting 
     Proliferation' (in this section referred to as the 
     `Council'), which shall be headed by the National Director 
     for Combating Proliferation.
       ``(b) Composition.--(1) In addition to the National 
     Director, the Council shall consist of 8 officials, as 
     follows:
       ``(A) Six officials described in paragraph (2), of which 
     number one each shall be designated by the heads of the 
     following Federal agencies from among its employees:
       ``(i) The Department of State.
       ``(ii) The Department of Defense.
       ``(iii) The Department of Energy.
       ``(iv) The Department of Justice.
       ``(v) The Department of Commerce.
       ``(vi) The Central Intelligence Agency.
       ``(B) One senior official of the Office of Management and 
     Budget.
       ``(C) One senior employee of the Office of the Vice 
     President.
       ``(2) Each individual designated under paragraph (1)(A) 
     shall be a senior official of the respective Federal agency 
     who has responsibility for proliferation-related matters and 
     who occupies a position or holds a rank to which the 
     individual was appointed by the President, by and with the 
     advice and consent of the Senate.
       ``(3) In addition to the membership of the Council provided 
     for in this subsection, the National Director may invite 
     other officials in the executive branch to participate in a 
     nonvoting capacity in meetings of the Council.
       ``(c) Functions.--The functions of the Council are to--
       ``(1) improve coordination between Federal agencies having 
     responsibility for proliferation-related matters;
       ``(2) ensure close coordination and consultation between 
     the National Director and those agencies; and
       ``(3) support the National Director in the development of a 
     government-wide plan for the development, acquisition, and 
     deployment of technology for combating proliferation by 
     coordinating technology requirements of individual agencies.
       ``(d) Staff Support.--The Council may employ and fix the 
     compensation of staff personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates, except that the 
     rate of pay for staff personnel may not exceed the rate 
     payable for level V of the Executive Schedule under section 
     5316 of such title. In addition, upon request, the National 
     Security Council shall detail to the Council such staff 
     personnel as the Council may require.''.
       (b) Clerical Amendment.--The table of contents for the 
     National Security Act of 1947 is amended by inserting after 
     the item relating to section 101 the following new items:

``Sec. 101A. National Director for Combating Proliferation.
``Sec. 101B. Council on Combating Proliferation.''.

     SEC. 202. ANNUAL CONSOLIDATED REPORT ON COUNTER-PROLIFERATION 
                   ACTIVITIES OF THE UNITED STATES GOVERNMENT.

       (a) Annual Report.--Beginning not later than 180 days after 
     the date of the enactment of this Act, and annually 
     thereafter, the President shall submit to Congress a 
     consolidated report updating (since submission of the last 
     report under this section or, in the case of the initial 
     report, since the last relevant report to Congress) the 
     nature of the threat of the proliferation of weapons of

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     mass destruction and evaluating the progress achieved by the 
     United States in responding to that threat.
       (b) Report Elements.--Each report under subsection (a) 
     shall include the following:
       (1) An update on nuclear proliferation in South Asia, 
     including United States efforts to conclude a regional 
     agreement on nuclear nonproliferation.
       (2) An assessment of what actions are necessary to respond 
     to violations committed by countries found not to be in full 
     compliance with their binding proliferation-related 
     commitments to the United States.
       (3) An update on the nuclear programs and related 
     activities of any country for which a waiver of sections 669 
     and 670 of the Foreign Assistance Act of 1961 is in effect.
       (4) An update on the efforts by countries and sub-national 
     groups to acquire chemical and biological weapons, and a 
     description of the use of such weapons, if applicable.
       (5) A description of any transfer by a foreign country of 
     weapons of mass destruction or weapons of mass destruction-
     related material and technology.
       (6) An update on efforts by the United States to achieve 
     several specific nuclear proliferation-related goals, 
     including the entry by the United States into multilateral 
     negotiations with other nuclear states to reduce the nuclear 
     arsenals of all foreign countries.
       (7) An update on the acquisition by foreign countries of 
     dual-use and other technology useful for the production of 
     weapons of mass destruction.
       (8) A description of the threats posed to the United States 
     and its allies by weapons of mass destruction, including 
     ballistic and cruise missiles, and the proliferation of such 
     weapons.
       (9) A description of the status of United States policy and 
     actions with respect to arms control, nonproliferation, and 
     disarmament.
       (10) A review of all activities of United States 
     departments and agencies relating to preventing nuclear 
     proliferation.
       (11) A requirement that the Department of Defense, the 
     Department of State, the Department of Justice, the 
     Department of Commerce, and the Department of Energy keep the 
     congressional committees having oversight responsibilities 
     for the respective department fully and currently informed 
     about the nuclear proliferation-related activities of such 
     department.
       (12) A description of the efforts to support international 
     nonproliferation activities.
       (13) An update on counterproliferation activities and 
     programs.
       (14) A description of the activities carried out in support 
     of counterproliferation programs.
       (c) Repeals.--The following provisions of law are hereby 
     repealed:
       (1) Section 620F(c) of the Foreign Assistance Act of 1961.
       (2) Section 51(c) of the Arms Control and Disarmament Act.
       (3) Section 735 of the International Security and 
     Development Cooperation Act of 1981 (Public Law 97-113).
       (4) Section 308(a) of the Chemical and Biological Weapons 
     Control and Warfare Elimination Act of 1991 (Public Law 102-
     182).
       (5) Section 1097(a) of the National Defense Authorization 
     Act for Fiscal Years 1992 and 1993 (Public Law 102-190).
       (6) Section 1321(c) of the National Defense Authorization 
     Act for Fiscal Year 1993 (Public Law 102-484).
       (7) Section 721(a) of the Combatting Proliferation of 
     Weapons of Mass Destruction Act of 1996 (Public Law 104-293).
       (8) Section 284 of the National Defense Authorization Act 
     For Fiscal Year 1998; Public Law 105-85).
       (9) Section 51(a) of the Arms Control and Disarmament Act.
       (10) Section 601(a) of the Nuclear Non-Proliferation Act of 
     1978.
       (11) Section 602(c) of the Nuclear Non-Proliferation Act of 
     1978 (Public Law 95-242).
       (12) Section 1505(e)(1) of the Weapons of Mass Destruction 
     Act of 1992 (Public Law 102-484).
       (13) Section 1503 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337).
       (14) Section 1603(d) of the National Defense Authorization 
     Act For Fiscal Year 1994 (Public Law 103-160).

                        TITLE III--OTHER MATTERS

     SEC. 301. GRADUATE PROGRAM IN LANGUAGES AND CULTURES OF 
                   NATIONS PROVIDING HOME OR SUPPORT FOR TERRORISM 
                   OR ORGANIZED CRIME.

       (a) In General.--The Secretary of Homeland Security and the 
     Director of the Federal Bureau of Investigation shall jointly 
     enter into an agreement with one or more appropriate 
     institutions of higher education to provide for one or more 
     programs of education leading to the award to individuals 
     referred to in subsection (b) of masters degrees or doctoral 
     degrees in the languages, culture, or both of foreign 
     countries that provide the home for or otherwise support 
     terrorism or organized crime.
       (b) Individuals Eligible for Participation in Programs.--
     Individuals eligible to participate in a program of education 
     under subsection (a) are as follows:
       (1) Personnel of the Department of Homeland Security 
     designated by the Secretary.
       (2) Personnel of the Federal Bureau of Investigation 
     designated by the Director.
       (3) Such other personnel of the Federal Government as the 
     Secretary and Director shall jointly designate.
       (c) Foreign Countries.--The Secretary and Director shall 
     jointly specify the foreign countries to be covered by the 
     program or programs of education under this section.
       (d) Additional Requirements.--The Secretary and Director 
     may, in consultation with the institution of higher education 
     concerned, establish such additional requirements for the 
     award of a degree for a program of education under this 
     section as the Secretary and the Director jointly consider 
     appropriate.

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