[House Report 108-724]
[From the U.S. Government Publishing Office]



108th Congress                                            Rept. 108-724
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 4

======================================================================



 
                9/11 RECOMMENDATIONS IMPLEMENTATION ACT

                                _______
                                

                October 5, 2004.--Ordered to be printed

                                _______
                                

  Mr. Tom Davis of Virginia, from the Committee on Government Reform, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                         [To accompany H.R. 10]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Government Reform, to whom was referred 
the bill (H.R. 10) to provide for reform of the intelligence 
community, terrorism prevention and prosecution, border 
security, and international cooperation and coordination, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................   149
Section-by-Section...............................................   156
Explanation of Amendments........................................   164
Committee Consideration..........................................   164
Roll Call Votes..................................................   165
Application of Law to the Legislative Branch.....................   173
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................   173
Statement of General Performance Goals and Objectives............   173
Constitutional Authority Statement...............................   173
Unfunded Mandate Statement.......................................   173
Committee Estimate...............................................   173
Budget Authority and Congressional Budget Office Cost Estimate...   173
Minority Views...................................................   191

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

             TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

Sec. 1001. Short title.

      Subtitle A--Establishment of National Intelligence Director

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

   Subtitle B--National Counterterrorism Center and Civil Liberties 
                              Protections

Sec. 1021. National Counterterrorism Center.
Sec. 1022. Civil Liberties Protection Officer.

            Subtitle C--Joint Intelligence Community Council

Sec. 1031. Joint Intelligence Community Council.

         Subtitle D--Improvement of Human Intelligence (HUMINT)

Sec. 1041. Human intelligence as an increasingly critical component of 
the intelligence community.
Sec. 1042. Improvement of human intelligence capacity.

  Subtitle E--Improvement of Education for the Intelligence Community

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

     Subtitle F--Additional Improvements of Intelligence Activities

Sec. 1061. Permanent extension of Central Intelligence Agency Voluntary 
Separation Incentive Program.
Sec. 1062. National Security Agency Emerging Technologies Panel.

              Subtitle G--Conforming and Other Amendments

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

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

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

             TITLE II--TERRORISM PREVENTION AND PROSECUTION

     Subtitle A--Individual Terrorists as Agents of Foreign Powers

Sec. 2001. Individual terrorists as agents of foreign powers.

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

Sec. 2021. Short title.
Sec. 2022. Hoaxes and recovery costs.
Sec. 2023. Obstruction of justice and false statements in terrorism 
cases.
Sec. 2024. Clarification of definition.

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

Sec. 2041. Short title.
Sec. 2042. Receiving military-type training from a foreign terrorist 
organization.
Sec. 2043. Providing material support to terrorism.
Sec. 2044. Financing of terrorism.

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

Sec. 2051. Short title.
Sec. 2052. Weapons of mass destruction.
Sec. 2053. Participation in nuclear and weapons of mass destruction 
threats to the United States.

          Subtitle E--Money Laundering and Terrorist Financing

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

Sec. 2101. Additional authorization for FinCEN.
Sec. 2102. Money laundering and financial crimes strategy 
reauthorization.

   Chapter 2--Enforcement Tools to Combat Financial Crimes Including 
                          Terrorist Financing

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

Sec. 2111. Short title.
Sec. 2112. Technical corrections to Public Law 107-56.
Sec. 2113. Technical corrections to other provisions of law.
Sec. 2114. Repeal of review.
Sec. 2115. Effective date.

                Subchapter B--Additional enforcement tools

Sec. 2121. Bureau of Engraving and Printing security printing.
Sec. 2122. Conduct in aid of counterfeiting.

             Subtitle F--Criminal History Background Checks

Sec. 2141. Short title.
Sec. 2142. Criminal history information checks.

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

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

                       Subtitle H--Other Matters

Sec. 2191. Grand jury information sharing.
Sec. 2192. Interoperable law enforcement and intelligence data system.
Sec. 2193. Improvement of intelligence capabilities of the Federal 
Bureau of Investigation.

            TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

        Subtitle A--Immigration Reform in the National Interest

                     Chapter 1--General Provisions

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

    Chapter 2--Deportation of Terrorists and Supporters of Terrorism

Sec. 3031. Expanded inapplicability of restriction on removal.
Sec. 3032. Exception to restriction on removal for terrorists and 
criminals.
Sec. 3033. Additional removal authorities.

                Subtitle B--Identity Management Security

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

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

          Chapter 2--Improved Security for Birth Certificates

Sec. 3061. Definitions.
Sec. 3062. Applicability of minimum standards to local governments.
Sec. 3063. Minimum standards for Federal recognition.
Sec. 3064. Establishment of electronic birth and death registration 
systems.
Sec. 3065. Electronic verification of vital events.
Sec. 3066. Grants to States.
Sec. 3067. Authority.

Chapter 3--Measures To Enhance Privacy and Integrity of Social Security 
                            Account Numbers

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

                 Subtitle C--Targeting Terrorist Travel

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

                      Subtitle D--Terrorist Travel

Sec. 3101. Information sharing and coordination.
Sec. 3102. Terrorist travel program.
Sec. 3103. Training program.
Sec. 3104. Technology acquisition and dissemination plan.

               Subtitle E--Maritime Security Requirements

Sec. 3111. Deadlines for implementation of maritime security 
requirements.

          TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

         Subtitle A--Attack Terrorists and Their Organizations

        Chapter 1--Provisions Relating to Terrorist Sanctuaries

Sec. 4001. United States policy on terrorist sanctuaries.
Sec. 4002. Reports on terrorist sanctuaries.
Sec. 4003. Amendments to existing law to include terrorist sanctuaries.

                      Chapter 2--Other Provisions

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

         Subtitle B--Prevent the Continued Growth of Terrorism

               Chapter 1--United States Public Diplomacy

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

            Chapter 2--United States Multilateral Diplomacy

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

                      Chapter 3--Other Provisions

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

  Subtitle C--Reform of Designation of Foreign Terrorist Organizations

Sec. 4051. Designation of foreign terrorist organizations.
Sec. 4052. Inclusion in annual Department of State country reports on 
terrorism of information on terrorist groups that seek weapons of mass 
destruction and groups that have been designated as foreign terrorist 
organizations.

     Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

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

      Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

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

                    Subtitle F--Oversight Provisions

Sec. 4091. Case-Zablocki Act requirements.

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

Sec. 4101. International agreements to allow maximum deployment of 
Federal flight deck officers.
Sec. 4102. Federal air marshal training.
Sec. 4103. Man-portable air defense systems (MANPADS).

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

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

                   TITLE V--GOVERNMENT RESTRUCTURING

      Subtitle A--Faster and Smarter Funding for First Responders

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

            Subtitle B--Government Reorganization Authority

Sec. 5021. Authorization of intelligence community reorganization 
plans.

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

Sec. 5025. Responsibilities of Counternarcotics Office.
Sec. 5026. Use of counternarcotics enforcement activities in certain 
employee performance appraisals.
Sec. 5027. Sense of the House of Representatives on addressing homeland 
security for the American people.

            Subtitle D--Improvements to Information Security

Sec. 5031. Amendments to Clinger-Cohen provisions to enhance agency 
planning for information security needs.

             Subtitle E--Personnel Management Improvements

                 Chapter 1--Appointments Process Reform

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

       Chapter 2--Federal Bureau of Investigation Revitalization

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

                    Chapter 3--Reporting Requirement

Sec. 5061. Reporting requirement.

              Subtitle F--Security Clearance Modernization

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

              Subtitle G--Emergency Financial Preparedness

Sec. 5081. Delegation authority of the Secretary of the Treasury.
Sec. 5082. Extension of emergency order authority of the securities and 
exchange commission.
Sec. 5083. Parallel authority of the Secretary of the Treasury with 
respect to government securities.

                       Subtitle H--Other Matters

                       Chapter 1--Privacy Matters

Sec. 5091. Requirement that agency rulemaking take into consideration 
impacts on individual privacy.
Sec. 5092. Chief privacy officers for agencies with law enforcement or 
anti-terrorism functions.

            Chapter 2--Mutual Aid and Litigation Management

Sec. 5101. Short title.
Sec. 5102. Mutual aid authorized.
Sec. 5103. Litigation management agreements.
Sec. 5104. Additional provisions.
Sec. 5105. Definitions.

                    Chapter 3--Miscellaneous Matters

Sec. 5131. Enhancement of public safety communications 
interoperability.
Sec. 5132. Sense of Congress regarding the incident command system.
Sec. 5133. Sense of Congress regarding United States Northern Command 
plans and strategies.
Sec. 5134. Information sharing.

             TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

SEC. 1001. SHORT TITLE.

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

      Subtitle A--Establishment of National Intelligence Director

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

  (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.) is amended by striking sections 102 through 104 and 
inserting the following new sections:
                    ``national intelligence director
  ``Sec. 102. (a) National Intelligence Director.--(1) There is a 
National Intelligence Director who shall be appointed by the President, 
by and with the advice and consent of the Senate.
  ``(2) The National Intelligence Director shall not be located within 
the Executive Office of the President.
  ``(b) Principal Responsibility.--Subject to the authority, direction, 
and control of the President, the National Intelligence Director 
shall--
          ``(1) serve as head of the intelligence community;
          ``(2) act as the principal adviser to the President, to the 
        National Security Council, and the Homeland Security Council 
        for intelligence matters related to the national security; and
          ``(3) through the heads of the departments containing 
        elements of the intelligence community, and the Central 
        Intelligence Agency, manage and oversee the execution of the 
        National Intelligence Program and direct the National 
        Intelligence Program.
  ``(c) Prohibition on Dual Service.--The individual serving in the 
position of National Intelligence Director shall not, while so serving, 
also serve as the Director of the Central Intelligence Agency or as the 
head of any other element of the intelligence community.
    ``responsibilities and authorities of the national intelligence 
                                director
  ``Sec. 102A. (a) Provision of Intelligence.--(1) Under the direction 
of the President, the National Intelligence Director shall be 
responsible for ensuring that national intelligence is provided--
          ``(A) to the President;
          ``(B) to the heads of departments and agencies of the 
        executive branch;
          ``(C) to the Chairman of the Joint Chiefs of Staff and senior 
        military commanders;
          ``(D) where appropriate, to the Senate and House of 
        Representatives and the committees thereof; and
          ``(E) to such other persons as the National Intelligence 
        Director determines to be appropriate.
  ``(2) Such national intelligence should be timely, objective, 
independent of political considerations, and based upon all sources 
available to the intelligence community and other appropriate entities.
  ``(b) Access to Intelligence.--To the extent approved by the 
President, the National Intelligence Director shall have access to all 
national intelligence and intelligence related to the national security 
which is collected by any Federal department, agency, or other entity, 
except as otherwise provided by law or, as appropriate, under 
guidelines agreed upon by the Attorney General and the National 
Intelligence Director.
  ``(c) Budget Authorities.--(1)(A) The National Intelligence Director 
shall develop and present to the President on an annual basis a budget 
for intelligence and intelligence-related activities of the United 
States.
  ``(B) In carrying out subparagraph (A) for any fiscal year for the 
components of the budget that comprise the National Intelligence 
Program, the National Intelligence Director shall provide guidance to 
the heads of departments containing elements of the intelligence 
community, and to the heads of the elements of the intelligence 
community, for development of budget inputs to the National 
Intelligence Director.
  ``(2)(A) The National Intelligence Director shall participate in the 
development by the Secretary of Defense of the annual budgets for the 
Joint Military Intelligence Program and for Tactical Intelligence and 
Related Activities.
  ``(B) The National Intelligence Director shall provide guidance for 
the development of the annual budget for each element of the 
intelligence community that is not within the National Intelligence 
Program.
  ``(3) In carrying out paragraphs (1) and (2), the National 
Intelligence Director may, as appropriate, obtain the advice of the 
Joint Intelligence Community Council.
  ``(4) The National Intelligence Director shall ensure the effective 
execution of the annual budget for intelligence and intelligence-
related activities.
  ``(5)(A) The National Intelligence Director shall facilitate the 
management and execution of funds appropriated for the National 
Intelligence Program.
  ``(B) Notwithstanding any other provision of law, in receiving funds 
pursuant to relevant appropriations Acts for the National Intelligence 
Program, the Office of Management and Budget shall apportion funds 
appropriated for the National Intelligence Program to the National 
Intelligence Director for allocation to the elements of the 
intelligence community through the host executive departments that 
manage programs and activities that are part of the National 
Intelligence Program.
  ``(C) The National Intelligence Director shall monitor the 
implementation and execution of the National Intelligence Program by 
the heads of the elements of the intelligence community that manage 
programs and activities that are part of the National Intelligence 
Program, which may include audits and evaluations, as necessary and 
feasible.
  ``(6) Apportionment and allotment of funds under this subsection 
shall be subject to chapter 13 and section 1517 of title 31, United 
States Code, and the Congressional Budget and Impoundment Control Act 
of 1974 (2 U.S.C. 621 et seq.).
  ``(7)(A) The National Intelligence Director shall provide a quarterly 
report, beginning April 1, 2005, and ending April 1, 2007, to the 
President and the Congress regarding implementation of this section.
  ``(B) The National Intelligence Director shall report to the 
President and the Congress not later than 5 days after learning of any 
instance in which a departmental comptroller acts in a manner 
inconsistent with the law (including permanent statutes, authorization 
Acts, and appropriations Acts), or the direction of the National 
Intelligence Director, in carrying out the National Intelligence 
Program.
  ``(d) Role of National Intelligence Director in Reprogramming.--(1) 
No funds made available under the National Intelligence Program may be 
transferred or reprogrammed without the prior approval of the National 
Intelligence Director, except in accordance with procedures prescribed 
by the National Intelligence Director.
  ``(2) The Secretary of Defense shall consult with the National 
Intelligence Director before transferring or reprogramming funds made 
available under the Joint Military Intelligence Program.
  ``(e) Transfer of Funds or Personnel Within National Intelligence 
Program.--(1) In addition to any other authorities available under law 
for such purposes, the National Intelligence Director, with the 
approval of the Director of the Office of Management and Budget--
          ``(A) may transfer funds appropriated for a program within 
        the National Intelligence Program to another such program; and
          ``(B) in accordance with procedures to be developed by the 
        National Intelligence Director and the heads of the departments 
        and agencies concerned, may transfer personnel authorized for 
        an element of the intelligence community to another such 
        element for periods up to one year.
  ``(2) The amounts available for transfer in the National Intelligence 
Program in any given fiscal year, and the terms and conditions 
governing such transfers, are subject to the provisions of annual 
appropriations Acts and this subsection.
  ``(3)(A) A transfer of funds or personnel may be made under this 
subsection only if--
          ``(i) the funds or personnel are being transferred to an 
        activity that is a higher priority intelligence activity;
          ``(ii) the need for funds or personnel for such activity is 
        based on unforeseen requirements;
          ``(iii) the transfer does not involve a transfer of funds to 
        the Reserve for Contingencies of the Central Intelligence 
        Agency;
          ``(iv) in the case of a transfer of funds, the transfer 
        results in a cumulative transfer of funds out of any department 
        or agency, as appropriate, funded in the National Intelligence 
        Program in a single fiscal year--
                  ``(I) that is less than $100,000,000, and
                  ``(II) that is less than 5 percent of amounts 
                available to a department or agency under the National 
                Intelligence Program; and
          ``(v) the transfer does not terminate a program.
  ``(B) A transfer may be made without regard to a limitation set forth 
in clause (iv) or (v) of subparagraph (A) if the transfer has the 
concurrence of the head of the department or agency involved. The 
authority to provide such concurrence may only be delegated by the head 
of the department or agency involved to the deputy of such officer.
  ``(4) Funds transferred under this subsection shall remain available 
for the same period as the appropriations account to which transferred.
  ``(5) Any transfer of funds under this subsection shall be carried 
out in accordance with existing procedures applicable to reprogramming 
notifications for the appropriate congressional committees. Any 
proposed transfer for which notice is given to the appropriate 
congressional committees shall be accompanied by a report explaining 
the nature of the proposed transfer and how it satisfies the 
requirements of this subsection. In addition, the congressional 
intelligence committees shall be promptly notified of any transfer of 
funds made pursuant to this subsection in any case in which the 
transfer would not have otherwise required reprogramming notification 
under procedures in effect as of the date of the enactment of this 
subsection.
  ``(6)(A) The National Intelligence Director shall promptly submit 
to--
          ``(i) the congressional intelligence committees,
          ``(ii) in the case of the transfer of personnel to or from 
        the Department of Defense, the Committee on Armed Services of 
        the Senate and the Committee on Armed Services of the House of 
        Representatives, and
          ``(iii) in the case of the transfer of personnel to or from 
        the Department of Justice, to the Committees on the Judiciary 
        of the Senate and the House of Representatives,
a report on any transfer of personnel made pursuant to this subsection.
  ``(B) The Director shall include in any such report an explanation of 
the nature of the transfer and how it satisfies the requirements of 
this subsection.
  ``(f) Tasking and Other Authorities.--(1)(A) The National 
Intelligence Director shall--
          ``(i) develop collection objectives, priorities, and guidance 
        for the intelligence community to ensure timely and effective 
        collection, processing, analysis, and dissemination (including 
        access by users to collected data consistent with applicable 
        law and, as appropriate, the guidelines referred to in 
        subsection (b) and analytic products generated by or within the 
        intelligence community) of national intelligence;
          ``(ii) determine and establish requirements and priorities 
        for, and manage and direct the tasking of, collection, 
        analysis, production, and dissemination of national 
        intelligence by elements of the intelligence community, 
        including--
                  ``(I) approving requirements for collection and 
                analysis, and
                  ``(II) resolving conflicts in collection requirements 
                and in the tasking of national collection assets of the 
                elements of the intelligence community; and
          ``(iii) provide advisory tasking to intelligence elements of 
        those agencies and departments not within the National 
        Intelligence Program.
  ``(B) The authority of the National Intelligence Director under 
subparagraph (A) shall not apply--
          ``(i) insofar as the President so directs;
          ``(ii) with respect to clause (ii) of subparagraph (A), 
        insofar as the Secretary of Defense exercises tasking authority 
        under plans or arrangements agreed upon by the Secretary of 
        Defense and the National Intelligence Director; or
          ``(iii) to the direct dissemination of information to State 
        government and local government officials and private sector 
        entities pursuant to sections 201 and 892 of the Homeland 
        Security Act of 2002 (6 U.S.C. 121, 482).
  ``(2) The National Intelligence Director shall oversee the National 
Counterterrorism Center and may establish such other national 
intelligence centers as the Director determines necessary.
  ``(3)(A) The National Intelligence Director shall prescribe 
community-wide personnel policies that--
          ``(i) facilitate assignments across community elements and to 
        the intelligence centers;
          ``(ii) establish overarching standards for intelligence 
        education and training; and
          ``(iii) promote the most effective analysis and collection of 
        intelligence by ensuring a diverse workforce, including the 
        recruitment and training of women, minorities, and individuals 
        with diverse, ethnic, and linguistic backgrounds.
  ``(B) In developing the policies prescribed under subparagraph (A), 
the National Intelligence Director shall consult with the heads of the 
departments containing the elements of the intelligence community.
  ``(C) Policies prescribed under subparagraph (A) shall not be 
inconsistent with the personnel policies otherwise applicable to 
members of the uniformed services.
  ``(4) The National Intelligence Director shall ensure compliance with 
the Constitution and laws of the United States by the Central 
Intelligence Agency and shall ensure such compliance by other elements 
of the intelligence community through the host executive departments 
that manage the programs and activities that are part of the National 
Intelligence Program.
  ``(5) The National Intelligence Director shall ensure the elimination 
of waste and unnecessary duplication within the intelligence community.
  ``(6) The National Intelligence Director shall perform such other 
functions as the President may direct.
Nothing in this Act shall be construed as affecting the role of the 
Department of Justice or the Attorney General with respect to 
applications under the Foreign Intelligence Surveillance Act of 1978.
  ``(g) Intelligence Information Sharing.--(1) The National 
Intelligence Director shall have principal authority to ensure maximum 
availability of and access to intelligence information within the 
intelligence community consistent with national security requirements. 
The National Intelligence Director shall--
          ``(A) establish uniform security standards and procedures;
          ``(B) establish common information technology standards, 
        protocols, and interfaces;
          ``(C) ensure development of information technology systems 
        that include multi-level security and intelligence integration 
        capabilities; and
          ``(D) establish policies and procedures to resolve conflicts 
        between the need to share intelligence information and the need 
        to protect intelligence sources and methods.
  ``(2) The President shall ensure that the National Intelligence 
Director has all necessary support and authorities to fully and 
effectively implement paragraph (1).
  ``(3) Except as otherwise directed by the President or with the 
specific written agreement of the head of the department or agency in 
question, a Federal agency or official shall not be considered to have 
met any obligation to provide any information, report, assessment, or 
other material (including unevaluated intelligence information) to that 
department or agency solely by virtue of having provided that 
information, report, assessment, or other material to the National 
Intelligence Director or the National Counterterrorism Center.
  ``(4) Not later than February 1 of each year, the National 
Intelligence Director shall submit to the President and to the Congress 
an annual report that identifies any statute, regulation, policy, or 
practice that the Director believes impedes the ability of the Director 
to fully and effectively implement paragraph (1).
  ``(h) Analysis.--(1) The National Intelligence Director shall ensure 
that all elements of the intelligence community strive for the most 
accurate analysis of intelligence derived from all sources to support 
national security needs.
  ``(2) The National Intelligence Director shall ensure that 
intelligence analysis generally receives the highest priority when 
distributing resources within the intelligence community and shall 
carry out duties under this subsection in a manner that--
          ``(A) develops all-source analysis techniques;
          ``(B) ensures competitive analysis;
          ``(C) ensures that differences in judgment are fully 
        considered and brought to the attention of policymakers; and
          ``(D) builds relationships between intelligence collectors 
        and analysts to facilitate greater understanding of the needs 
        of analysts.
  ``(i) Protection of Intelligence Sources and Methods.--(1) In order 
to protect intelligence sources and methods from unauthorized 
disclosure and, consistent with that protection, to maximize the 
dissemination of intelligence, the National Intelligence Director shall 
establish and implement guidelines for the intelligence community for 
the following purposes:
          ``(A) Classification of information.
          ``(B) Access to and dissemination of intelligence, both in 
        final form and in the form when initially gathered.
          ``(C) Preparation of intelligence products in such a way that 
        source information is removed to allow for dissemination at the 
        lowest level of classification possible or in unclassified form 
        to the extent practicable.
  ``(2) The Director may only delegate a duty or authority given the 
Director under this subsection to the Deputy National Intelligence 
Director.
  ``(j) Uniform Procedures for Sensitive Compartmented Information.--
The President, acting through the National Intelligence Director, 
shall--
          ``(1) establish uniform standards and procedures for the 
        grant of access to sensitive compartmented information to any 
        officer or employee of any agency or department of the United 
        States and to employees of contractors of those agencies or 
        departments;
          ``(2) ensure the consistent implementation of those standards 
        and procedures throughout such agencies and departments;
          ``(3) ensure that security clearances granted by individual 
        elements of the intelligence community are recognized by all 
        elements of the intelligence community, and under contracts 
        entered into by those agencies; and
          ``(4) ensure that the process for investigation and 
        adjudication of an application for access to sensitive 
        compartmented information is performed in the most expeditious 
        manner possible consistent with applicable standards for 
        national security.
  ``(k) Coordination With Foreign Governments.--Under the direction of 
the President and in a manner consistent with section 207 of the 
Foreign Service Act of 1980 (22 U.S.C. 3927), the National Intelligence 
Director shall oversee the coordination of the relationships between 
elements of the intelligence community and the intelligence or security 
services of foreign governments on all matters involving intelligence 
related to the national security or involving intelligence acquired 
through clandestine means.
  ``(l) Enhanced Personnel Management.--(1)(A) The National 
Intelligence Director shall, under regulations prescribed by the 
Director, provide incentives for personnel of elements of the 
intelligence community to serve--
          ``(i) on the staff of the National Intelligence Director;
          ``(ii) on the staff of the national intelligence centers;
          ``(iii) on the staff of the National Counterterrorism Center; 
        and
          ``(iv) in other positions in support of the intelligence 
        community management functions of the Director.
  ``(B) Incentives under subparagraph (A) may include financial 
incentives, bonuses, and such other awards and incentives as the 
Director considers appropriate.
  ``(2)(A) Notwithstanding any other provision of law, the personnel of 
an element of the intelligence community who are assigned or detailed 
under paragraph (1)(A) to service under the National Intelligence 
Director shall be promoted at rates equivalent to or better than 
personnel of such element who are not so assigned or detailed.
  ``(B) The Director may prescribe regulations to carry out this 
section.
  ``(3)(A) The National Intelligence Director shall prescribe 
mechanisms to facilitate the rotation of personnel of the intelligence 
community through various elements of the intelligence community in the 
course of their careers in order to facilitate the widest possible 
understanding by such personnel of the variety of intelligence 
requirements, methods, users, and capabilities.
  ``(B) The mechanisms prescribed under subparagraph (A) may include 
the following:
          ``(i) The establishment of special occupational categories 
        involving service, over the course of a career, in more than 
        one element of the intelligence community.
          ``(ii) The provision of rewards for service in positions 
        undertaking analysis and planning of operations involving two 
        or more elements of the intelligence community.
          ``(iii) The establishment of requirements for education, 
        training, service, and evaluation that involve service in more 
        than one element of the intelligence community.
  ``(C) It is the sense of Congress that the mechanisms prescribed 
under this subsection should, to the extent practical, seek to 
duplicate for civilian personnel within the intelligence community the 
joint officer management policies established by chapter 38 of title 
10, United States Code, and the other amendments made by title IV of 
the Goldwater-Nichols Department of Defense Reorganization Act of 1986 
(Public Law 99-433).
  ``(4)(A) This subsection shall not apply with respect to personnel of 
the elements of the intelligence community who are members of the 
uniformed services or law enforcement officers (as that term is defined 
in section 5541(3) of title 5, United States Code).
  ``(B) Assignment to the Office of the National Intelligence Director 
of commissioned officers of the Armed Forces shall be considered a 
joint-duty assignment for purposes of the joint officer management 
policies prescribed by chapter 38 of title 10, United States Code, and 
other provisions of that title.
  ``(m) Additional Authority With Respect to Personnel.--(1) In 
addition to the authorities under subsection (f)(3), the National 
Intelligence Director may exercise with respect to the personnel of the 
Office of the National Intelligence Director any authority of the 
Director of the Central Intelligence Agency with respect to the 
personnel of the Central Intelligence Agency under the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.), and other 
applicable provisions of law, as of the date of the enactment of this 
subsection to the same extent, and subject to the same conditions and 
limitations, that the Director of the Central Intelligence Agency may 
exercise such authority with respect to personnel of the Central 
Intelligence Agency.
  ``(2) Employees and applicants for employment of the Office of the 
National Intelligence Director shall have the same rights and 
protections under the Office of the National Intelligence Director as 
employees of the Central Intelligence Agency have under the Central 
Intelligence Agency Act of 1949, and other applicable provisions of 
law, as of the date of the enactment of this subsection.
  ``(n) Acquisition Authorities.--(1) In carrying out the 
responsibilities and authorities under this section, the National 
Intelligence Director may exercise the acquisition authorities referred 
to in the Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
seq.).
  ``(2) For the purpose of the exercise of any authority referred to in 
paragraph (1), a reference to the head of an agency shall be deemed to 
be a reference to the National Intelligence Director or the Deputy 
National Intelligence Director.
  ``(3)(A) Any determination or decision to be made under an authority 
referred to in paragraph (1) by the head of an agency may be made with 
respect to individual purchases and contracts or with respect to 
classes of purchases or contracts, and shall be final.
  ``(B) Except as provided in subparagraph (C), the National 
Intelligence Director or the Deputy National Intelligence Director may, 
in such official's discretion, delegate to any officer or other 
official of the Office of the National Intelligence Director any 
authority to make a determination or decision as the head of the agency 
under an authority referred to in paragraph (1).
  ``(C) The limitations and conditions set forth in section 3(d) of the 
Central Intelligence Agency Act of 1949 (50 U.S.C. 403c(d)) shall apply 
to the exercise by the National Intelligence Director of an authority 
referred to in paragraph (1).
  ``(D) Each determination or decision required by an authority 
referred to in the second sentence of section 3(d) of the Central 
Intelligence Agency Act of 1949 shall be based upon written findings 
made by the official making such determination or decision, which 
findings shall be final and shall be available within the Office of the 
National Intelligence Director for a period of at least six years 
following the date of such determination or decision.
  ``(o) Consideration of Views of Elements of the Intelligence 
Community.--In carrying out the duties and responsibilities under this 
section, the National Intelligence Director shall take into account the 
views of a head of a department containing an element of the 
intelligence community and of the Director of the Central Intelligence 
Agency.
             ``office of the national intelligence director
  ``Sec. 103. (a) Establishment of Office; Function.--(1) There is an 
Office of the National Intelligence Director. The Office of the 
National Intelligence Director shall not be located within the 
Executive Office of the President.
  ``(2) The function of the Office is to assist the National 
Intelligence Director in carrying out the duties and responsibilities 
of the Director under this Act and to carry out such other duties as 
may be prescribed by the President or by law.
  ``(3) Any authority, power, or function vested by law in any officer, 
employee, or part of the Office of the National Intelligence Director 
is vested in, or may be exercised by, the National Intelligence 
Director.
  ``(4) Exemptions, exceptions, and exclusions for the Central 
Intelligence Agency or for personnel, resources, or activities of such 
Agency from otherwise applicable laws, other than the exception 
contained in section 104A(c)(1) shall apply in the same manner to the 
Office of the National Intelligence Director and the personnel, 
resources, or activities of such Office.
  ``(b) Office of National Intelligence Director.--(1) The Office of 
the National Intelligence Director is composed of the following:
          ``(A) The National Intelligence Director.
          ``(B) The Deputy National Intelligence Director.
          ``(C) The Deputy National Intelligence Director for 
        Operations.
          ``(D) The Deputy National Intelligence Director for Community 
        Management and Resources.
          ``(E) The Associate National Intelligence Director for 
        Military Support.
          ``(F) The Associate National Intelligence Director for 
        Domestic Security.
          ``(G) The Associate National Intelligence Director for 
        Diplomatic Affairs.
          ``(H) The National Intelligence Council.
          ``(I) The General Counsel to the National Intelligence 
        Director.
          ``(J) Such other offices and officials as may be established 
        by law or the National Intelligence Director may establish or 
        designate in the Office.
  ``(2) To assist the National Intelligence Director in fulfilling the 
duties and responsibilities of the Director, the Director shall employ 
and utilize in the Office of the National Intelligence Director a staff 
having expertise in matters relating to such duties and 
responsibilities and may establish permanent positions and appropriate 
rates of pay with respect to such staff.
  ``(c) Deputy National Intelligence Director.--(1) There is a Deputy 
National Intelligence Director who shall be appointed by the President, 
by and with the advice and consent of the Senate.
  ``(2) The Deputy National Intelligence Director shall assist the 
National Intelligence Director in carrying out the responsibilities of 
the National Intelligence Director under this Act.
  ``(3) The Deputy National Intelligence Director shall act for, and 
exercise the powers of, the National Intelligence Director during the 
absence or disability of the National Intelligence Director or during a 
vacancy in the position of the National Intelligence Director.
  ``(4) The Deputy National Intelligence Director takes precedence in 
the Office of the National Intelligence Director immediately after the 
National Intelligence Director.
  ``(d) Deputy National Intelligence Director for Operations.--(1) 
There is a Deputy National Intelligence Director for Operations.
  ``(2) The Deputy National Intelligence Director for Operations 
shall--
          ``(A) assist the National Intelligence Director in all 
        aspects of intelligence operations, including intelligence 
        tasking, requirements, collection, and analysis;
          ``(B) assist the National Intelligence Director in overseeing 
        the national intelligence centers; and
          ``(C) perform such other duties and exercise such powers as 
        National Intelligence Director may prescribe.
  ``(e) Deputy National Intelligence Director for Community Management 
and Resources.--(1) There is a Deputy National Intelligence Director 
for Community Management and Resources.
  ``(2) The Deputy National Intelligence Director for Community 
Management and Resources shall--
          ``(A) assist the National Intelligence Director in all 
        aspects of management and resources, including administration, 
        budgeting, information security, personnel, training, and 
        programmatic functions; and
          ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe.
  ``(f) Associate National Intelligence Director for Military 
Support.--(1) There is an Associate National Intelligence Director for 
Military Support who shall be appointed by the National Intelligence 
Director, in consultation with the Secretary of Defense.
  ``(2) The Associate National Intelligence Director for Military 
Support shall--
          ``(A) ensure that the intelligence needs of the Department of 
        Defense are met; and
          ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe.
  ``(g) Associate National Intelligence Director for Domestic 
Security.--(1) There is an Associate National Intelligence Director for 
Domestic Security who shall be appointed by the National Intelligence 
Director in consultation with the Attorney General and the Secretary of 
Homeland Security.
  ``(2) The Associate National Intelligence Director for Domestic 
Security shall--
          ``(A) ensure that the intelligence needs of the Department of 
        Justice, the Department of Homeland Security, and other 
        relevant executive departments and agencies are met; and
          ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe, except that 
        the National Intelligence Director may not make such officer 
        responsible for disseminating any domestic or homeland security 
        information to State government or local government officials 
        or any private sector entity.
  ``(h) Associate National Intelligence Director for Diplomatic 
Affairs.--(1) There is an Associate National Intelligence Director for 
Diplomatic Affairs who shall be appointed by the National Intelligence 
Director in consultation with the Secretary of State.
  ``(2) The Associate National Intelligence Director for Diplomatic 
Affairs shall--
          ``(A) ensure that the intelligence needs of the Department of 
        State are met; and
          ``(B) perform such other duties and exercise such powers as 
        the National Intelligence Director may prescribe.
  ``(i) Military Status of Director and Deputy Directors.--(1) Not more 
than one of the individuals serving in the positions specified in 
paragraph (2) may be a commissioned officer of the Armed Forces in 
active status.
  ``(2) The positions referred to in this paragraph are the following:
          ``(A) The National Intelligence Director.
          ``(B) The Deputy National Intelligence Director.
  ``(3) It is the sense of Congress that, under ordinary circumstances, 
it is desirable that one of the individuals serving in the positions 
specified in paragraph (2)--
          ``(A) be a commissioned officer of the Armed Forces, in 
        active status; or
          ``(B) have, by training or experience, an appreciation of 
        military intelligence activities and requirements.
  ``(4) A commissioned officer of the Armed Forces, while serving in a 
position specified in paragraph (2)--
          ``(A) shall not be subject to supervision or control by the 
        Secretary of Defense or by any officer or employee of the 
        Department of Defense;
          ``(B) shall not exercise, by reason of the officer's status 
        as a commissioned officer, any supervision or control with 
        respect to any of the military or civilian personnel of the 
        Department of Defense except as otherwise authorized by law; 
        and
          ``(C) shall not be counted against the numbers and 
        percentages of commissioned officers of the rank and grade of 
        such officer authorized for the military department of that 
        officer.
  ``(5) Except as provided in subparagraph (A) or (B) of paragraph (4), 
the appointment of an officer of the Armed Forces to a position 
specified in paragraph (2) shall not affect the status, position, rank, 
or grade of such officer in the Armed Forces, or any emolument, 
perquisite, right, privilege, or benefit incident to or arising out of 
such status, position, rank, or grade.
  ``(6) A commissioned officer of the Armed Forces on active duty who 
is appointed to a position specified in paragraph (2), while serving in 
such position and while remaining on active duty, shall continue to 
receive military pay and allowances and shall not receive the pay 
prescribed for such position. Funds from which such pay and allowances 
are paid shall be reimbursed from funds available to the National 
Intelligence Director.
  ``(j) National Intelligence Council.--(1) Within the Office of the 
Deputy National Intelligence Director for Operations, there is a 
National Intelligence Council.
  ``(2)(A) The National Intelligence Council shall be composed of 
senior analysts within the intelligence community and substantive 
experts from the public and private sector, who shall be appointed by 
and report to the Deputy National Intelligence Director for Operations.
  ``(B) The Director shall prescribe appropriate security requirements 
for personnel appointed from the private sector as a condition of 
service on the Council, or as contractors of the Council or employees 
of such contractors, to ensure the protection of intelligence sources 
and methods while avoiding, wherever possible, unduly intrusive 
requirements which the Director considers to be unnecessary for this 
purpose.
  ``(3) The National Intelligence Council shall--
          ``(A) produce national intelligence estimates for the United 
        States Government, which shall include as a part of such 
        estimates in their entirety, alternative views, if any, held by 
        elements of the intelligence community;
          ``(B) evaluate community-wide collection and production of 
        intelligence by the intelligence community and the requirements 
        and resources of such collection and production; and
          ``(C) otherwise assist the National Intelligence Director in 
        carrying out the responsibility of the National Intelligence 
        Director to provide national intelligence.
  ``(4) Within their respective areas of expertise and under the 
direction of the Deputy National Intelligence Director for Operations, 
the members of the National Intelligence Council shall constitute the 
senior intelligence advisers of the intelligence community for purposes 
of representing the views of the intelligence community within the 
United States Government.
  ``(5) Subject to the direction and control of the Deputy National 
Intelligence Director for Operations, the National Intelligence Council 
may carry out its responsibilities under this section by contract, 
including contracts for substantive experts necessary to assist the 
Council with particular assessments under this subsection.
  ``(6) The Deputy National Intelligence Director for Operations shall 
make available to the National Intelligence Council such personnel as 
may be necessary to permit the Council to carry out its 
responsibilities under this section.
  ``(7) The heads of the elements of the intelligence community shall, 
as appropriate, furnish such support to the National Intelligence 
Council, including the preparation of intelligence analyses, as may be 
required by the National Intelligence Director.
  ``(k) General Counsel to the National Intelligence Director.--(1) 
There is a General Counsel to the National Intelligence Director.
  ``(2) The individual serving in the position of General Counsel to 
the National Intelligence Director may not, while so serving, also 
serve as the General Counsel of any other agency or department of the 
United States.
  ``(3) The General Counsel to the National Intelligence Director is 
the chief legal officer for the National Intelligence Director.
  ``(4) The General Counsel to the National Intelligence Director shall 
perform such functions as the National Intelligence Director may 
prescribe.
  ``(l) Intelligence Community Information Technology Officer.--(1) 
There is an Intelligence Community Information Technology Officer who 
shall be appointed by the National Intelligence Director.
  ``(2) The mission of the Intelligence Community Information 
Technology Officer is to assist the National Intelligence Director in 
ensuring the sharing of information in the fullest and most prompt 
manner between and among elements of the intelligence community 
consistent with section 102A(g).
  ``(3) The Intelligence Community Information Technology Officer 
shall--
          ``(A) assist the Deputy National Intelligence Director for 
        Community Management and Resources in developing and 
        implementing an integrated information technology network;
          ``(B) develop an enterprise architecture for the intelligence 
        community and assist the Deputy National Intelligence Director 
        for Community Management and Resources in ensuring that 
        elements of the intelligence community comply with such 
        architecture;
          ``(C) have procurement approval authority over all enterprise 
        architecture-related information technology items funded in the 
        National Intelligence Program;
          ``(D) ensure that all such elements have the most direct and 
        continuous electronic access to all information (including 
        unevaluated intelligence consistent with existing laws and the 
        guidelines referred to in section 102A(b)) necessary for 
        appropriately cleared analysts to conduct comprehensive all-
        source analysis and for appropriately cleared policymakers to 
        perform their duties--
                  ``(i) directly, in the case of the elements of the 
                intelligence community within the National Intelligence 
                Program, and
                  ``(ii) in conjunction with the Secretary of Defense 
                and other applicable heads of departments with 
                intelligence elements outside the National Intelligence 
                Program;
          ``(E) review and provide recommendations to the Deputy 
        National Intelligence Director for Community Management and 
        Resources on National Intelligence Program budget requests for 
        information technology and national security systems;
          ``(F) assist the Deputy National Intelligence Director for 
        Community Management and Resources in promulgating and 
        enforcing standards on information technology and national 
        security systems that apply throughout the elements of the 
        intelligence community;
          ``(G) ensure that within and between the elements of the 
        National Intelligence Program, duplicative and unnecessary 
        information technology and national security systems are 
        eliminated; and
          ``(H) pursuant to the direction of the National Intelligence 
        Director, consult with the Director of the Office of Management 
        and Budget to ensure that the Office of the National 
        Intelligence Director coordinates and complies with national 
        security requirements consistent with applicable law, Executive 
        orders, and guidance; and
          ``(I) perform such other duties with respect to the 
        information systems and information technology of the Office of 
        the National Intelligence Director as may be prescribed by the 
        Deputy National Intelligence Director for Community Management 
        and Resources or specified by law.
                     ``central intelligence agency
  ``Sec. 104. (a) Central Intelligence Agency.--There is a Central 
Intelligence Agency.
  ``(b) Function.--The function of the Central Intelligence Agency is 
to assist the Director of the Central Intelligence Agency in carrying 
out the responsibilities specified in section 104A(c).
             ``director of the central intelligence agency
  ``Sec. 104A. (a) Director of Central Intelligence Agency.--There is a 
Director of the Central Intelligence Agency who shall be appointed by 
the President, by and with the advice and consent of the Senate. The 
Director shall be under the authority, direction, and control of the 
National Intelligence Director, except as otherwise determined by the 
President.
  ``(b) Duties.--In the capacity as Director of the Central 
Intelligence Agency, the Director of the Central Intelligence Agency 
shall--
          ``(1) carry out the responsibilities specified in subsection 
        (c); and
          ``(2) serve as the head of the Central Intelligence Agency.
  ``(c) Responsibilities.--The Director of the Central Intelligence 
Agency shall--
          ``(1) collect intelligence through human sources and by other 
        appropriate means, except that the Director of the Central 
        Intelligence Agency shall have no police, subpoena, or law 
        enforcement powers or internal security functions;
          ``(2) provide overall direction for the collection of 
        national intelligence through human sources by elements of the 
        intelligence community authorized to undertake such collection 
        and, in coordination with other agencies of the Government 
        which are authorized to undertake such collection, ensure that 
        the most effective use is made of resources and that the risks 
        to the United States and those involved in such collection are 
        minimized;
          ``(3) correlate and evaluate intelligence related to the 
        national security and provide appropriate dissemination of such 
        intelligence;
          ``(4) perform such additional services as are of common 
        concern to the elements of the intelligence community, which 
        services the National Intelligence Director determines can be 
        more efficiently accomplished centrally; and
          ``(5) perform such other functions and duties related to 
        intelligence affecting the national security as the President 
        or the National Intelligence Director may direct.
  ``(d) Deputy Director of the Central Intelligence Agency.--There is a 
Deputy Director of the Central Intelligence Agency who shall be 
appointed by the President. The Deputy Director shall perform such 
functions as the Director may prescribe and shall perform the duties of 
the Director during the Director's absence or disability or during a 
vacancy in the position of the Director of the Central Intelligence 
Agency.
  ``(e) Termination of Employment of CIA Employees.--(1) 
Notwithstanding the provisions of any other law, the Director of the 
Central Intelligence Agency may, in the discretion of the Director, 
terminate the employment of any officer or employee of the Central 
Intelligence Agency whenever the Director considers the termination of 
employment of such officer or employee necessary or advisable in the 
interests of the United States.
  ``(2) Any termination of employment of an officer or employee under 
paragraph (1) shall not affect the right of the officer or employee to 
seek or accept employment in any other department, agency, or element 
of the United States Government if declared eligible for such 
employment by the Office of Personnel Management.''.
  (b) First Director.--(1) When the Senate receives the nomination of a 
person for the initial appointment by the President for the position of 
National Intelligence Director, it shall consider and dispose of such 
nomination within a period of 30 legislative days.
  (2) If the Senate does not dispose of such nomination referred to in 
paragraph (1) within such period--
          (A) Senate confirmation is not required; and
          (B) the appointment of such nominee as National Intelligence 
        Director takes effect upon administration of the oath of 
        office.
  (3) For the purposes of this subsection, the term ``legislative day'' 
means a day on which the Senate is in session.

SEC. 1012. REVISED DEFINITION OF NATIONAL INTELLIGENCE.

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

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

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

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

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

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

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

SEC. 1016. EXECUTIVE SCHEDULE MATTERS.

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

   Subtitle B--National Counterterrorism Center and Civil Liberties 
                              Protections

SEC. 1021. NATIONAL COUNTERTERRORISM CENTER.

  (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.) is amended by adding at the end the following new 
section:
                   ``national counterterrorism center
  ``Sec. 119. (a) Establishment of Center.--There is within the Office 
of the National Intelligence Director a National Counterterrorism 
Center.
  ``(b) Director of National Counterterrorism Center.--There is a 
Director of the National Counterterrorism Center, who shall be the head 
of the National Counterterrorism Center, who shall be appointed by 
National Intelligence Director.
  ``(c) Supervision.--The Director of the National Counterterrorism 
Center shall report to the National Intelligence Director on--
          ``(1) the budget and programs of the National 
        Counterterrorism Center;
          ``(2) the activities of the Directorate of Intelligence of 
        the National Counterterrorism Center under subsection (h);
          ``(3) the conduct of intelligence operations implemented by 
        other elements of the intelligence community; and
          ``(4) the planning and progress of joint counterterrorism 
        operations (other than intelligence operations).
The National Intelligence Director shall carry out this section through 
the Deputy National Intelligence Director for Operations.
  ``(d) Primary Missions.--The primary missions of the National 
Counterterrorism Center shall be as follows:
          ``(1) To serve as the primary organization in the United 
        States Government for analyzing and integrating all 
        intelligence possessed or acquired by the United States 
        Government pertaining to terrorism and counterterrorism, 
        excepting intelligence pertaining exclusively to domestic 
        counterterrorism.
          ``(2) To conduct strategic operational planning for 
        counterterrorism activities, integrating all instruments of 
        national power, including diplomatic, financial, military, 
        intelligence, homeland security, and law enforcement activities 
        within and among agencies.
          ``(3) To support operational responsibilities assigned to 
        lead agencies for counterterrorism activities by ensuring that 
        such agencies have access to and receive intelligence needed to 
        accomplish their assigned activities.
          ``(4) To ensure that agencies, as appropriate, have access to 
        and receive all-source intelligence support needed to execute 
        their counterterrorism plans or perform independent, 
        alternative analysis.
  ``(e) Domestic Counterterrorism Intelligence.--(1) The Center may, 
consistent with applicable law, the direction of the President, and the 
guidelines referred to in section 102A(b), receive intelligence 
pertaining exclusively to domestic counterterrorism from any Federal, 
State, or local government or other source necessary to fulfill its 
responsibilities and retain and disseminate such intelligence.
  ``(2) Any agency authorized to conduct counterterrorism activities 
may request information from the Center to assist it in its 
responsibilities, consistent with applicable law and the guidelines 
referred to in section 102A(b).
  ``(f) Duties and Responsibilities of Director.--The Director of the 
National Counterterrorism Center shall--
          ``(1) serve as the principal adviser to the National 
        Intelligence Director on intelligence operations relating to 
        counterterrorism;
          ``(2) provide strategic guidance and plans for the civilian 
        and military counterterrorism efforts of the United States 
        Government and for the effective integration of 
        counterterrorism intelligence and operations across agency 
        boundaries, both inside and outside the United States;
          ``(3) advise the National Intelligence Director on the extent 
        to which the counterterrorism program recommendations and 
        budget proposals of the departments, agencies, and elements of 
        the United States Government conform to the priorities 
        established by the President;
          ``(4) disseminate terrorism information, including current 
        terrorism threat analysis, to the President, the Vice 
        President, the Secretaries of State, Defense, and Homeland 
        Security, the Attorney General, the Director of the Central 
        Intelligence Agency, and other officials of the executive 
        branch as appropriate, and to the appropriate committees of 
        Congress;
          ``(5) support the Department of Justice and the Department of 
        Homeland Security, and other appropriate agencies, in 
        fulfillment of their responsibilities to disseminate terrorism 
        information, consistent with applicable law, Executive Orders 
        and other Presidential guidance, to State and local government 
        officials, and other entities, and coordinate dissemination of 
        terrorism information to foreign governments as approved by the 
        National Intelligence Director;
          ``(6) consistent with priorities approved by the President, 
        assist the National Intelligence Director in establishing 
        requirements for the intelligence community for the collection 
        of terrorism information; and
          ``(7) perform such other duties as the National Intelligence 
        Director may prescribe or are prescribed by law.
  ``(g) Limitation.--The Director of the National Counterterrorism 
Center may not direct the execution of counterterrorism operations.
  ``(h) Resolution of Disputes.--The National Intelligence Director 
shall resolve disagreements between the National Counterterrorism 
Center and the head of a department, agency, or element of the United 
States Government on designations, assignments, plans, or 
responsibilities. The head of such a department, agency, or element may 
appeal the resolution of the disagreement by the National Intelligence 
Director to the President.
  ``(i) Directorate of Intelligence.--The Director of the National 
Counterterrorism Center shall establish and maintain within the 
National Counterterrorism Center a Directorate of Intelligence which 
shall have primary responsibility within the United States Government 
for analysis of terrorism and terrorist organizations (except for 
purely domestic terrorism and domestic terrorist organizations) from 
all sources of intelligence, whether collected inside or outside the 
United States.
  ``(j) Directorate of Strategic Planning.--The Director of the 
National Counterterrorism Center shall establish and maintain within 
the National Counterterrorism Center a Directorate of Strategic 
Planning which shall provide strategic guidance and plans for 
counterterrorism operations conducted by the United States 
Government.''.
  (b) Clerical Amendment.--The table of sections for the National 
Security Act of 1947 is amended by inserting after the item relating to 
section 118 the following new item:

``Sec. 119. National Counterterrorism Center.''.

SEC. 1022. CIVIL LIBERTIES PROTECTION OFFICER.

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

            Subtitle C--Joint Intelligence Community Council

SEC. 1031. JOINT INTELLIGENCE COMMUNITY COUNCIL.

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

         Subtitle D--Improvement of Human Intelligence (HUMINT)

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

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

SEC. 1042. IMPROVEMENT OF HUMAN INTELLIGENCE CAPACITY.

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

  Subtitle E--Improvement of Education for the Intelligence Community

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                ``Subtitle B--Foreign Languages Program

     ``program on advancement of foreign languages critical to the 
                         intelligence community
  ``Sec. 1011. (a) Establishment of Program.--The Secretary of Defense 
and the National Intelligence Director may jointly establish a program 
to advance foreign languages skills in languages that are critical to 
the capability of the intelligence community to carry out national 
security activities of the United States (hereinafter in this subtitle 
referred to as the `Foreign Languages Program').
  ``(b) Identification of Requisite Actions.--In order to carry out the 
Foreign Languages Program, the Secretary of Defense and the National 
Intelligence Director shall jointly determine actions required to 
improve the education of personnel in the intelligence community in 
foreign languages that are critical to the capability of the 
intelligence community to carry out national security activities of the 
United States to meet the long-term intelligence needs of the United 
States.
                        ``education partnerships
  ``Sec. 1012. (a) In General.--In carrying out the Foreign Languages 
Program, the head of a department or agency containing an element of an 
intelligence community entity may enter into one or more education 
partnership agreements with educational institutions in the United 
States in order to encourage and enhance the study of foreign languages 
that are critical to the capability of the intelligence community to 
carry out national security activities of the United States in 
educational institutions.
  ``(b) Assistance Provided Under Educational Partnership Agreements.--
Under an educational partnership agreement entered into with an 
educational institution pursuant to this section, the head of an 
element of an intelligence community entity may provide the following 
assistance to the educational institution:
          ``(1) The loan of equipment and instructional materials of 
        the element of the intelligence community entity to the 
        educational institution for any purpose and duration that the 
        head determines to be appropriate.
          ``(2) Notwithstanding any other provision of law relating to 
        transfers of surplus property, the transfer to the educational 
        institution of any computer equipment, or other equipment, that 
        is--
                  ``(A) commonly used by educational institutions;
                  ``(B) surplus to the needs of the entity; and
                  ``(C) determined by the head of the element to be 
                appropriate for support of such agreement.
          ``(3) The provision of dedicated personnel to the educational 
        institution--
                  ``(A) to teach courses in foreign languages that are 
                critical to the capability of the intelligence 
                community to carry out national security activities of 
                the United States; or
                  ``(B) to assist in the development of such courses 
                and materials for the institution.
          ``(4) The involvement of faculty and students of the 
        educational institution in research projects of the element of 
        the intelligence community entity.
          ``(5) Cooperation with the educational institution in 
        developing a program under which students receive academic 
        credit at the educational institution for work on research 
        projects of the element of the intelligence community entity.
          ``(6) The provision of academic and career advice and 
        assistance to students of the educational institution.
          ``(7) The provision of cash awards and other items that the 
        head of the element of the intelligence community entity 
        determines to be appropriate.
                          ``voluntary services
  ``Sec. 1013. (a) Authority To Accept Services.--Notwithstanding 
section 1342 of title 31, United States Code, and subject to subsection 
(b), the Foreign Languages Program under section 1011 shall include 
authority for the head of an element of an intelligence community 
entity to accept from any individual who is dedicated personnel (as 
defined in section 1016(3)) voluntary services in support of the 
activities authorized by this subtitle.
  ``(b) Requirements and Limitations.--(1) In accepting voluntary 
services from an individual under subsection (a), the head of the 
element shall--
          ``(A) supervise the individual to the same extent as the head 
        of the element would supervise a compensated employee of that 
        element providing similar services; and
          ``(B) ensure that the individual is licensed, privileged, has 
        appropriate educational or experiential credentials, or is 
        otherwise qualified under applicable law or regulations to 
        provide such services.
  ``(2) In accepting voluntary services from an individual under 
subsection (a), the head of an element of the intelligence community 
entity may not--
          ``(A) place the individual in a policymaking position, or 
        other position performing inherently government functions; or
          ``(B) compensate the individual for the provision of such 
        services.
  ``(c) Authority To Recruit and Train Individuals Providing 
Services.--The head of an element of an intelligence community entity 
may recruit and train individuals to provide voluntary services 
accepted under subsection (a).
  ``(d) Status of Individuals Providing Services.--(1) Subject to 
paragraph (2), while providing voluntary services accepted under 
subsection (a) or receiving training under subsection (c), an 
individual shall be considered to be an employee of the Federal 
Government only for purposes of the following provisions of law:
          ``(A) Section 552a of title 5, United States Code (relating 
        to maintenance of records on individuals).
          ``(B) Chapter 11 of title 18, United States Code (relating to 
        conflicts of interest).
  ``(2)(A) With respect to voluntary services accepted under paragraph 
(1) provided by an individual that are within the scope of the services 
so accepted, the individual is deemed to be a volunteer of a 
governmental entity or nonprofit institution for purposes of the 
Volunteer Protection Act of 1997 (42 U.S.C. 14501 et seq.).
  ``(B) In the case of any claim against such an individual with 
respect to the provision of such services, section 4(d) of such Act (42 
U.S.C. 14503(d)) shall not apply.
  ``(3) Acceptance of voluntary services under this section shall have 
no bearing on the issuance or renewal of a security clearance.
  ``(e) Reimbursement of Incidental Expenses.--(1) The head of an 
element of the intelligence community entity may reimburse an 
individual for incidental expenses incurred by the individual in 
providing voluntary services accepted under subsection (a). The head of 
an element of the intelligence community entity shall determine which 
expenses are eligible for reimbursement under this subsection.
  ``(2) Reimbursement under paragraph (1) may be made from appropriated 
or nonappropriated funds.
  ``(f) Authority To Install Equipment.--(1) The head of an element of 
the intelligence community may install telephone lines and any 
necessary telecommunication equipment in the private residences of 
individuals who provide voluntary services accepted under subsection 
(a).
  ``(2) The head of an element of the intelligence community may pay 
the charges incurred for the use of equipment installed under paragraph 
(1) for authorized purposes.
  ``(3) Notwithstanding section 1348 of title 31, United States Code, 
the head of an element of the intelligence community entity may use 
appropriated funds or nonappropriated funds of the element in carrying 
out this subsection.
                             ``regulations
  ``Sec. 1014. (a) In General.--The Secretary of Defense and the 
National Intelligence Director jointly shall promulgate regulations 
necessary to carry out the Foreign Languages Program authorized under 
this subtitle.
  ``(b) Elements of the Intelligence Community.--Each head of an 
element of an intelligence community entity shall prescribe regulations 
to carry out sections 1012 and 1013 with respect to that element 
including the following:
          ``(1) Procedures to be utilized for the acceptance of 
        voluntary services under section 1013.
          ``(2) Procedures and requirements relating to the 
        installation of equipment under section 1013(g).
                             ``definitions
  ``Sec. 1015. In this subtitle:
          ``(1) The term `intelligence community entity' means an 
        agency, office, bureau, or element referred to in subparagraphs 
        (B) through (K) of section 3(4).
          ``(2) The term `educational institution' means--
                  ``(A) a local educational agency (as that term is 
                defined in section 9101(26) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7801(26))),
                  ``(B) an institution of higher education (as defined 
                in section 102 of the Higher Education Act of 1965 (20 
                U.S.C. 1002) other than institutions referred to in 
                subsection (a)(1)(C) of such section), or
                  ``(C) any other nonprofit institution that provides 
                instruction of foreign languages in languages that are 
                critical to the capability of the intelligence 
                community to carry out national security activities of 
                the United States.
          ``(3) The term `dedicated personnel' means employees of the 
        intelligence community and private citizens (including former 
        civilian employees of the Federal Government who have been 
        voluntarily separated, and members of the United States Armed 
        Forces who have been honorably discharged or generally 
        discharged under honorable circumstances, and rehired on a 
        voluntary basis specifically to perform the activities 
        authorized under this subtitle).

             ``Subtitle C--Additional Education Provisions

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

                  ``Subtitle A--Science and Technology

``Sec. 1001. Scholarships and work-study for pursuit of graduate 
degrees in science and technology.

                ``Subtitle B--Foreign Languages Program

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

             ``Subtitle C--Additional Education Provisions

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

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

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

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

  (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 402 et seq.), as amended by section 1021(a), is further amended 
by adding at the end the following new section:
                 ``national virtual translation center
  ``Sec. 120. (a) In General.--There is an element of the intelligence 
community known as the National Virtual Translation Center under the 
direction of the National Intelligence Director.
  ``(b) Function.--The National Virtual Translation Center shall 
provide for timely and accurate translations of foreign intelligence 
for all other elements of the intelligence community.
  ``(c) Facilitating Access to Translations.--In order to minimize the 
need for a central facility for the National Virtual Translation 
Center, the Center shall--
          ``(1) use state-of-the-art communications technology;
          ``(2) integrate existing translation capabilities in the 
        intelligence community; and
          ``(3) use remote-connection capacities.
  ``(d) Use of Secure Facilities.--Personnel of the National Virtual 
Translation Center may carry out duties of the Center at any location 
that--
          ``(1) has been certified as a secure facility by an agency or 
        department of the United States; and
          ``(2) the National Intelligence Director determines to be 
        appropriate for such purpose.''.
  (b) Clerical Amendment.--The table of sections for that Act, as 
amended by section 1021(b), is further amended by inserting after the 
item relating to section 119 the following new item:

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

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

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

     Subtitle F--Additional Improvements of Intelligence Activities

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

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

SEC. 1062. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES PANEL.

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

              Subtitle G--Conforming and Other Amendments

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

  (a) National Security Act of 1947.--(1) The National Security Act of 
1947 (50 U.S.C. 401 et seq.) is amended by striking ``Director of 
Central Intelligence'' each place it appears in the following 
provisions and inserting ``National Intelligence Director'':
          (A) Section 3(5)(B) (50 U.S.C. 401a(5)(B)).
          (B) Section 101(h)(2)(A) (50 U.S.C. 402(h)(2)(A)).
          (C) Section 101(h)(5) (50 U.S.C. 402(h)(5)).
          (D) Section 101(i)(2)(A) (50 U.S.C. 402(i)(2)(A)).
          (E) Section 101(j) (50 U.S.C. 402(j)).
          (F) Section 105(a) (50 U.S.C. 403-5(a)).
          (G) Section 105(b)(6)(A) (50 U.S.C. 403-5(b)(6)(A)).
          (H) Section 105B(a)(1) (50 U.S.C. 403-5b(a)(1)).
          (I) Section 105B(b) (50 U.S.C. 403-5b(b)), the first place it 
        appears.
          (J) Section 110(b) (50 U.S.C. 404e(b)).
          (K) Section 110(c) (50 U.S.C. 404e(c)).
          (L) Section 112(a)(1) (50 U.S.C. 404g(a)(1)).
          (M) Section 112(d)(1) (50 U.S.C. 404g(d)(1)).
          (N) Section 113(b)(2)(A) (50 U.S.C. 404h(b)(2)(A)).
          (O) Section 114(a)(1) (50 U.S.C. 404i(a)(1)).
          (P) Section 114(b)(1) (50 U.S.C. 404i(b)(1)).
          (R) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
          (S) Section 115(b) (50 U.S.C. 404j(b)).
          (T) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).
          (U) Section 116(a) (50 U.S.C. 404k(a)).
          (V) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
          (W) Section 303(a) (50 U.S.C. 405(a)), both places it 
        appears.
          (X) Section 501(d) (50 U.S.C. 413(d)).
          (Y) Section 502(a) (50 U.S.C. 413a(a)).
          (Z) Section 502(c) (50 U.S.C. 413a(c)).
          (AA) Section 503(b) (50 U.S.C. 413b(b)).
          (BB) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
          (CC) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
          (DD) Section 506A(a)(1) (50 U.S.C. 415a-1(a)(1)).
          (EE) Section 603(a) (50 U.S.C. 423(a)).
          (FF) Section 702(a)(1) (50 U.S.C. 432(a)(1)).
          (GG) Section 702(a)(6)(B)(viii) (50 U.S.C. 
        432(a)(6)(B)(viii)).
          (HH) Section 702(b)(1) (50 U.S.C. 432(b)(1)), both places it 
        appears.
          (II) Section 703(a)(1) (50 U.S.C. 432a(a)(1)).
          (JJ) Section 703(a)(6)(B)(viii) (50 U.S.C. 
        432a(a)(6)(B)(viii)).
          (KK) Section 703(b)(1) (50 U.S.C. 432a(b)(1)), both places it 
        appears.
          (LL) Section 704(a)(1) (50 U.S.C. 432b(a)(1)).
          (MM) Section 704(f)(2)(H) (50 U.S.C. 432b(f)(2)(H)).
          (NN) Section 704(g)(1)) (50 U.S.C. 432b(g)(1)), both places 
        it appears.
          (OO) Section 1001(a) (50 U.S.C. 441g(a)).
          (PP) Section 1102(a)(1) (50 U.S.C. 442a(a)(1)).
          (QQ) Section 1102(b)(1) (50 U.S.C. 442a(b)(1)).
          (RR) Section 1102(c)(1) (50 U.S.C. 442a(c)(1)).
          (SS) Section 1102(d) (50 U.S.C. 442a(d)).
  (2) That Act is further amended by striking ``of Central 
Intelligence'' each place it appears in the following provisions:
          (A) Section 105(a)(2) (50 U.S.C. 403-5(a)(2)).
          (B) Section 105B(a)(2) (50 U.S.C. 403-5b(a)(2)).
          (C) Section 105B(b) (50 U.S.C. 403-5b(b)), the second place 
        it appears.
  (3) That Act is further amended by striking ``Director'' each place 
it appears in the following provisions and inserting ``National 
Intelligence Director'':
          (A) Section 114(c) (50 U.S.C. 404i(c)).
          (B) Section 116(b) (50 U.S.C. 404k(b)).
          (C) Section 1001(b) (50 U.S.C. 441g(b)).
          (C) Section 1001(c) (50 U.S.C. 441g(c)), the first place it 
        appears.
          (D) Section 1001(d)(1)(B) (50 U.S.C. 441g(d)(1)(B)).
          (E) Section 1001(e) (50 U.S.C. 441g(e)), the first place it 
        appears.
  (4) Section 114A of that Act (50 U.S.C. 404i-1) is amended by 
striking ``Director of Central Intelligence'' and inserting ``National 
Intelligence Director, the Director of the Central Intelligence 
Agency''
  (5) Section 504(a)(2) of that Act (50 U.S.C. 414(a)(2)) is amended by 
striking ``Director of Central Intelligence'' and inserting ``Director 
of the Central Intelligence Agency''.
  (6) Section 701 of that Act (50 U.S.C. 431) is amended--
          (A) in subsection (a), by striking ``Operational files of the 
        Central Intelligence Agency may be exempted by the Director of 
        Central Intelligence'' and inserting ``The Director of the 
        Central Intelligence Agency, with the coordination of the 
        National Intelligence Director, may exempt operational files of 
        the Central Intelligence Agency''; and
          (B) in subsection (g)(1), by striking ``Director of Central 
        Intelligence'' and inserting ``Director of the Central 
        Intelligence Agency and the National Intelligence Director''.
  (7) The heading for section 114 of that Act (50 U.S.C. 404i) is 
amended to read as follows:
 ``additional annual reports from the national intelligence director''.
  (b) Central Intelligence Agency Act of 1949.--(1) The Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) is amended by 
striking ``Director of Central Intelligence'' each place it appears in 
the following provisions and inserting ``National Intelligence 
Director'':
          (A) Section 6 (50 U.S.C. 403g).
          (B) Section 17(f) (50 U.S.C. 403q(f)), both places it 
        appears.
  (2) That Act is further amended by striking ``of Central 
Intelligence'' in each of the following provisions:
          (A) Section 2 (50 U.S.C. 403b).
          (A) Section 16(c)(1)(B) (50 U.S.C. 403p(c)(1)(B)).
          (B) Section 17(d)(1) (50 U.S.C. 403q(d)(1)).
          (C) Section 20(c) (50 U.S.C. 403t(c)).
  (3) That Act is further amended by striking ``Director of Central 
Intelligence'' each place it appears in the following provisions and 
inserting ``Director of the Central Intelligence Agency'':
          (A) Section 14(b) (50 U.S.C. 403n(b)).
          (B) Section 16(b)(2) (50 U.S.C. 403p(b)(2)).
          (C) Section 16(b)(3) (50 U.S.C. 403p(b)(3)), both places it 
        appears.
          (D) Section 21(g)(1) (50 U.S.C. 403u(g)(1)).
          (E) Section 21(g)(2) (50 U.S.C. 403u(g)(2)).
  (c) Central Intelligence Agency Retirement Act.--Section 101 of the 
Central Intelligence Agency Retirement Act (50 U.S.C. 2001) is amended 
by striking paragraph (2) and inserting the following new paragraph 
(2):
          ``(2) Director.--The term `Director' means the Director of 
        the Central Intelligence Agency.''.
  (d) CIA Voluntary Separation Pay Act.--Subsection (a)(1) of section 2 
of the Central Intelligence Agency Voluntary Separation Pay Act (50 
U.S.C. 2001 note) is amended to read as follows:
          ``(1) the term `Director' means the Director of the Central 
        Intelligence Agency;''.
  (e) Foreign Intelligence Surveillance Act of 1978.--(1) The Foreign 
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) is 
amended by striking ``Director of Central Intelligence'' each place it 
appears and inserting ``National Intelligence Director''.
  (f) Classified Information Procedures Act.--Section 9(a) of the 
Classified Information Procedures Act (5 U.S.C. App.) is amended by 
striking ``Director of Central Intelligence'' and inserting ``National 
Intelligence Director''.
  (g) Intelligence Authorization Acts.--
          (1) Public law 103-359.--Section 811(c)(6)(C) of the 
        Counterintelligence and Security Enhancements Act of 1994 
        (title VIII of Public Law 103-359) is amended by striking 
        ``Director of Central Intelligence'' and inserting ``National 
        Intelligence Director''.
          (2) Public law 107-306.--(A) The Intelligence Authorization 
        Act for Fiscal Year 2003 (Public Law 107-306) is amended by 
        striking ``Director of Central Intelligence, acting as the head 
        of the intelligence community,'' each place it appears in the 
        following provisions and inserting ``National Intelligence 
        Director'':
                  (i) Section 313(a) (50 U.S.C. 404n(a)).
                  (ii) Section 343(a)(1) (50 U.S.C. 404n-2(a)(1))
          (B) That Act is further amended by striking ``Director of 
        Central Intelligence'' each place it appears in the following 
        provisions and inserting ``National Intelligence Director'':
                  (i) Section 902(a)(2) (50 U.S.C. 402b(a)(2)).
                  (ii) Section 904(e)(4) (50 U.S.C. 402c(e)(4)).
                  (iii) Section 904(e)(5) (50 U.S.C. 402c(e)(5)).
                  (iv) Section 904(h) (50 U.S.C. 402c(h)), each place 
                it appears.
                  (v) Section 904(m) (50 U.S.C. 402c(m)).
          (C) Section 341 of that Act (50 U.S.C. 404n-1) is amended by 
        striking ``Director of Central Intelligence, acting as the head 
        of the intelligence community, shall establish in the Central 
        Intelligence Agency'' and inserting ``National Intelligence 
        Director shall establish within the Central Intelligence 
        Agency''.
          (D) Section 352(b) of that Act (50 U.S.C. 404-3 note) is 
        amended by striking ``Director'' and inserting ``National 
        Intelligence Director''.
          (3) Public law 108-177.--(A) The Intelligence Authorization 
        Act for Fiscal Year 2004 (Public Law 108-177) is amended by 
        striking ``Director of Central Intelligence'' each place it 
        appears in the following provisions and inserting ``National 
        Intelligence Director'':
                  (i) Section 317(a) (50 U.S.C. 403-3 note).
                  (ii) Section 317(h)(1).
                  (iii) Section 318(a) (50 U.S.C. 441g note).
                  (iv) Section 319(b) (50 U.S.C. 403 note).
                  (v) Section 341(b) (28 U.S.C. 519 note).
                  (vi) Section 357(a) (50 U.S.C. 403 note).
                  (vii) Section 504(a) (117 Stat. 2634), both places it 
                appears.
          (B) Section 319(f)(2) of that Act (50 U.S.C. 403 note) is 
        amended by striking ``Director'' the first place it appears and 
        inserting ``National Intelligence Director''.
          (C) Section 404 of that Act (18 U.S.C. 4124 note) is amended 
        by striking ``Director of Central Intelligence'' and inserting 
        ``Director of the Central Intelligence Agency''.

SEC. 1072. OTHER CONFORMING AMENDMENTS.

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

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

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

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

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

SEC. 1075. REPEAL OF SUPERSEDED AUTHORITIES.

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

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

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

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

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

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

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

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

SEC. 1078. ACCESS TO INSPECTOR GENERAL PROTECTIONS.

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

SEC. 1079. GENERAL REFERENCES.

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

SEC. 1080. APPLICATION OF OTHER LAWS.

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

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

SEC. 1091. TRANSFER OF COMMUNITY MANAGEMENT STAFF.

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

SEC. 1092. TRANSFER OF TERRORIST THREAT INTEGRATION CENTER.

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

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

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

SEC. 1094. IMPLEMENTATION PLAN.

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

SEC. 1095. TRANSITIONAL AUTHORITIES.

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

SEC. 1096. EFFECTIVE DATES.

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

             TITLE II--TERRORISM PREVENTION AND PROSECUTION

     Subtitle A--Individual Terrorists as Agents of Foreign Powers

SECTION 2001. INDIVIDUAL TERRORISTS AS AGENTS OF FOREIGN POWERS.

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

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

SEC. 2021. SHORT TITLE.

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

SEC. 2022. HOAXES AND RECOVERY COSTS.

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

``Sec. 1038. False information and hoaxes

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

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

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

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

SEC. 2024. CLARIFICATION OF DEFINITION.

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

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

SEC. 2041. SHORT TITLE.

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

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

  Chapter 113B of title 18, United States Code, is amended by adding 
after section 2339C the following new section:

``Sec. 2339D. Receiving military-type training from a foreign terrorist 
                    organization

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

SEC. 2043. PROVIDING MATERIAL SUPPORT TO TERRORISM.

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

SEC. 2044. FINANCING OF TERRORISM.

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

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

SEC. 2051. SHORT TITLE.

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

SEC. 2052. WEAPONS OF MASS DESTRUCTION.

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

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

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

``832. Participation in nuclear and weapons of mass destruction threats 
to the United States.'';
          (2) by inserting after section 831 the following:

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

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

          Subtitle E--Money Laundering and Terrorist Financing

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

SEC. 2101. ADDITIONAL AUTHORIZATION FOR FINCEN.

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

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

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

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

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

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

SEC. 2111. SHORT TITLE.

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

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

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

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

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

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

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

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

  (a) Section 310(c) of title 31, United States Code, is amended by 
striking ``the Network'' each place such term appears and inserting 
``FinCEN''.
  (b) Section 5312(a)(3)(C) of title 31, United States Code, is amended 
by striking ``sections 5333 and 5316'' and inserting ``sections 5316 
and 5331''.
  (c) Section 5318(i) of title 31, United States Code, is amended--
          (1) in paragraph (3)(B), by inserting a comma after ``foreign 
        political figure'' the 2nd place such term appears; and
          (2) in the heading of paragraph (4), by striking 
        ``Definition'' and inserting ``Definitions''.
  (d) Section 5318(k)(1)(B) of title 31, United States Code, is amended 
by striking ``section 5318A(f)(1)(B)'' and inserting ``section 
5318A(e)(1)(B)''.
  (e) The heading for section 5318A of title 31, United States Code, is 
amended to read as follows:

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

  (f) Section 5318A of title 31, United States Code, is amended--
          (1) in subsection (a)(4)(A), by striking ``, as defined in 
        section 3 of the Federal Deposit Insurance Act,'' and inserting 
        `` (as defined in section 3 of the Federal Deposit Insurance 
        Act)'';
          (2) in subsection (a)(4)(B)(iii), by striking ``or class of 
        transactions'' and inserting ``class of transactions, or type 
        of account'';
          (3) in subsection (b)(1)(A), by striking ``or class of 
        transactions to be'' and inserting ``class of transactions, or 
        type of account to be''; and
          (4) in subsection (e)(3), by inserting ``or subsection (i) or 
        (j) of section 5318'' after ``identification of individuals 
        under this section''.
  (g) Section 5324(b) of title 31, United States Code, is amended by 
striking ``5333'' each place such term appears and inserting ``5331''.
  (h) Section 5332 of title 31, United States Code, is amended--
          (1) in subsection (b)(2), by striking ``, subject to 
        subsection (d) of this section''; and
          (2) in subsection (c)(1), by striking ``, subject to 
        subsection (d) of this section,''.
  (i) The table of sections for subchapter II of chapter 53 of title 
31, United States Code, is amended by striking the item relating to 
section 5318A and inserting the following new item:

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

SEC. 2114. REPEAL OF REVIEW.

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

SEC. 2115. EFFECTIVE DATE.

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

               Subchapter B--Additional Enforcement Tools

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

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

SEC. 2122. CONDUCT IN AID OF COUNTERFEITING.

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

             Subtitle F--Criminal History Background Checks

SEC. 2141. SHORT TITLE.

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

SEC. 2142. CRIMINAL HISTORY INFORMATION CHECKS.

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

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

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

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

SEC. 2172. TRANSPORTATION SECURITY STRATEGIC PLANNING.

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

SEC. 2173. NEXT GENERATION AIRLINE PASSENGER PRESCREENING.

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

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

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

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

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

SEC. 2176. AIR CARGO SCREENING TECHNOLOGY.

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

SEC. 2177. AIRPORT CHECKPOINT SCREENING EXPLOSIVE DETECTION.

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

SEC. 2178. NEXT GENERATION SECURITY CHECKPOINT.

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

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

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

SEC. 2180. FEDERAL AIR MARSHAL ANONYMITY.

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

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

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

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

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

SEC. 2183. REGISTERED TRAVELER PROGRAM.

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

SEC. 2184. WIRELESS COMMUNICATION.

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

SEC. 2185. SECONDARY FLIGHT DECK BARRIERS.

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

SEC. 2186. EXTENSION.

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

SEC. 2187. PERIMETER SECURITY.

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

SEC. 2188. DEFINITIONS.

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

                       Subtitle H--Other Matters

SEC. 2191. GRAND JURY INFORMATION SHARING.

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

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

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

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

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

            TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

        Subtitle A--Immigration Reform in the National Interest

                     CHAPTER 1--GENERAL PROVISIONS

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

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

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

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

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

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

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

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

SEC. 3005. ALIEN IDENTIFICATION STANDARDS.

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

SEC. 3006. EXPEDITED REMOVAL.

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

SEC. 3007. PREVENTING TERRORISTS FROM OBTAINING ASYLUM.

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

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

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

SEC. 3009. JUDICIAL REVIEW OF ORDERS OF REMOVAL.

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

    CHAPTER 2--DEPORTATION OF TERRORISTS AND SUPPORTERS OF TERRORISM

SEC. 3031. EXPANDED INAPPLICABILITY OF RESTRICTION ON REMOVAL.

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

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

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

SEC. 3033. ADDITIONAL REMOVAL AUTHORITIES.

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

                Subtitle B--Identity Management Security

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

SEC. 3051. DEFINITIONS.

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

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

  (a) Minimum Standards for Federal Use.--
          (1) In general.--Beginning 3 years after the date of 
        enactment of this Act, a Federal agency may not accept, for any 
        official purpose, a driver's license or identification card 
        issued by a State to any person unless the State is meeting the 
        requirements of this section.
          (2) State certifications.--The Secretary shall determine 
        whether a State is meeting the requirements of this section 
        based on certifications made by the State to the Secretary. 
        Such certifications shall be made at such times and in such 
        manner as the Secretary, in consultation with the Secretary of 
        Transportation, may prescribe by regulation.
  (b) Minimum Document Requirements.--To meet the requirements of this 
section, a State shall include, at a minimum, the following information 
and features on each driver's license and identification card issued to 
a person by the State:
          (1) The person's full legal name.
          (2) The person's date of birth.
          (3) The person's gender.
          (4) The person's driver license or identification card 
        number.
          (5) A digital photograph of the person.
          (6) The person's address of principal residence.
          (7) The person's signature.
          (8) Physical security features designed to prevent tampering, 
        counterfeiting, or duplication of the document for fraudulent 
        purposes.
          (9) A common machine-readable technology, with defined 
        minimum data elements.
  (c) Minimum Issuance Standards.--
          (1) In general.--To meet the requirements of this section, a 
        State shall require, at a minimum, presentation and 
        verification of the following information before issuing a 
        driver's license or identification card to a person:
                  (A) A photo identity document, except that a non-
                photo identity document is acceptable if it includes 
                both the person's full legal name and date of birth.
                  (B) Documentation showing the person's date of birth.
                  (C) Proof of the person's social security account 
                number or verification that the person is not eligible 
                for a social security account number.
                  (D) Documentation showing the person's name and 
                address of principal residence.
          (2) Special requirements.--
                  (A) In general.--To meet the requirements of this 
                section, a State shall comply with the minimum 
                standards of this paragraph.
                  (B) Evidence of legal status.--A State shall require, 
                before issuing a driver's license or identification 
                card to a person, valid documentary evidence that the 
                person--
                          (i) is a citizen of the United States;
                          (ii) is an alien lawfully admitted for 
                        permanent or temporary residence in the United 
                        States;
                          (iii) has conditional permanent resident 
                        status in the United States;
                          (iv) has a valid, unexpired nonimmigrant visa 
                        or nonimmigrant visa status for entry into the 
                        United States;
                          (v) has a pending or approved application for 
                        asylum in the United States;
                          (vi) has entered into the United States in 
                        refugee status;
                          (vii) has a pending or approved application 
                        for temporary protected status in the United 
                        States;
                          (viii) has approved deferred action status; 
                        or
                          (ix) has a pending application for adjustment 
                        of status to that of an alien lawfully admitted 
                        for permanent residence in the United States or 
                        conditional permanent resident status in the 
                        United States.
                  (C) Temporary drivers' licenses and identification 
                cards.--
                          (i) In general.--If a person presents 
                        evidence under any of clauses (iv) through (ix) 
                        of subparagraph (B), the State may only issue a 
                        temporary driver's license or temporary 
                        identification card to the person.
                          (ii) Expiration date.--A temporary driver's 
                        license or temporary identification card issued 
                        pursuant to this subparagraph shall be valid 
                        only during the period of time of the 
                        applicant's authorized stay in the United 
                        States or if there is no definite end to the 
                        period of authorized stay a period of one year.
                          (iii) Display of expiration date.--A 
                        temporary driver's license or temporary 
                        identification card issued pursuant to this 
                        subparagraph shall clearly indicate that it is 
                        temporary and shall state the date on which it 
                        expires.
                          (iv) Renewal.--A temporary driver's license 
                        or temporary identification card issued 
                        pursuant to this subparagraph may be renewed 
                        only upon presentation of valid documentary 
                        evidence that the status by which the applicant 
                        qualified for the temporary driver's license or 
                        temporary identification card has been extended 
                        by the Secretary of Homeland Security.
          (3) Applications for renewal, duplication, or reissuance.--
                  (A) Presumption.--For purposes of paragraphs (1) and 
                (2), a State shall presume that any driver's license or 
                identification card for which an application has been 
                made for renewal, duplication, or reissuance has been 
                issued in accordance with the provisions of such 
                paragraphs if, at the time the application is made, the 
                driver's license or identification card has not expired 
                or been canceled, suspended, or revoked.
                  (B) Limitation.--Subparagraph (A) shall not apply to 
                a renewal, duplication, or reissuance if the State is 
                notified by a local, State, or Federal government 
                agency that the person seeking such renewal, 
                duplication, or reissuance is neither a citizen of the 
                United States nor legally in the United States.
          (4) Verification of documents.--To meet the requirements of 
        this section, a State shall implement the following procedures:
                  (A) Before issuing a driver's license or 
                identification card to a person, the State shall 
                verify, with the issuing agency, the issuance, 
                validity, and completeness of each document required to 
                be presented by the person under paragraph (1) or (2).
                  (B) The State shall not accept any foreign document, 
                other than an official passport, to satisfy a 
                requirement of paragraph (1) or (2).
                  (C) Not later than September 11, 2005, the State 
                shall enter into a memorandum of understanding with the 
                Secretary of Homeland Security to routinely utilize the 
                automated system known as Systematic Alien Verification 
                for Entitlements, as provided for by section 404 of the 
                Illegal Immigration Reform and Immigrant Responsibility 
                Act of 1996 (110 Stat. 3009-664), to verify the legal 
                presence status of a person, other than a United States 
                citizen, applying for a driver's license or 
                identification card.
  (d) Other Requirements.--To meet the requirements of this section, a 
State shall adopt the following practices in the issuance of drivers' 
licenses and identification cards:
          (1) Employ technology to capture digital images of identity 
        source documents so that the images can be retained in 
        electronic storage in a transferable format.
          (2) Retain paper copies of source documents for a minimum of 
        7 years or images of source documents presented for a minimum 
        of 10 years.
          (3) Subject each person applying for a driver's license or 
        identification card to mandatory facial image capture.
          (4) Establish an effective procedure to confirm or verify a 
        renewing applicant's information.
          (5) Confirm with the Social Security Administration a social 
        security account number presented by a person using the full 
        social security account number. In the event that a social 
        security account number is already registered to or associated 
        with another person to which any State has issued a driver's 
        license or identification card, the State shall resolve the 
        discrepancy and take appropriate action.
          (6) Refuse to issue a driver's license or identification card 
        to a person holding a driver's license issued by another State 
        without confirmation that the person is terminating or has 
        terminated the driver's license.
          (7) Ensure the physical security of locations where drivers' 
        licenses and identification cards are produced and the security 
        of document materials and papers from which drivers' licenses 
        and identification cards are produced.
          (8) Subject all persons authorized to manufacture or produce 
        drivers' licenses and identification cards to appropriate 
        security clearance requirements.
          (9) Establish fraudulent document recognition training 
        programs for appropriate employees engaged in the issuance of 
        drivers' licenses and identification cards.

SEC. 3053. LINKING OF DATABASES.

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

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

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

SEC. 3055. GRANTS TO STATES.

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

SEC. 3056. AUTHORITY.

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

          CHAPTER 2--IMPROVED SECURITY FOR BIRTH CERTIFICATES

SEC. 3061. DEFINITIONS.

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

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

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

SEC. 3063. MINIMUM STANDARDS FOR FEDERAL RECOGNITION.

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

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

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

SEC. 3065. ELECTRONIC VERIFICATION OF VITAL EVENTS.

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

SEC. 3066. GRANTS TO STATES.

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

SEC. 3067. AUTHORITY.

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

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

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

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

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

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

SEC. 3073. ENUMERATION AT BIRTH.

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

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

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

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

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

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

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

                 Subtitle C--Targeting Terrorist Travel

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

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

SEC. 3082. EXPANDED PREINSPECTION AT FOREIGN AIRPORTS.

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

SEC. 3083. IMMIGRATION SECURITY INITIATIVE.

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

SEC. 3084. RESPONSIBILITIES AND FUNCTIONS OF CONSULAR OFFICERS.

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

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

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

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

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

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

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

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

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

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

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

SEC. 3090. BIOMETRIC ENTRY AND EXIT DATA SYSTEM.

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

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

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

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

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

                      Subtitle D--Terrorist Travel

SEC. 3101. INFORMATION SHARING AND COORDINATION.

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

SEC. 3102. TERRORIST TRAVEL PROGRAM.

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

SEC. 3103. TRAINING PROGRAM.

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

SEC. 3104. TECHNOLOGY ACQUISITION AND DISSEMINATION PLAN.

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

               Subtitle E--Maritime Security Requirements

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

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

          TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

         Subtitle A--Attack Terrorists and Their Organizations

        CHAPTER 1--PROVISIONS RELATING TO TERRORIST SANCTUARIES

SEC. 4001. UNITED STATES POLICY ON TERRORIST SANCTUARIES.

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

SEC. 4002. REPORTS ON TERRORIST SANCTUARIES.

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

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

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

                      CHAPTER 2--OTHER PROVISIONS

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

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

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

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

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

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

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

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

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

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

         Subtitle B--Prevent the Continued Growth of Terrorism

               CHAPTER 1--UNITED STATES PUBLIC DIPLOMACY

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

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

SEC. 4022. PUBLIC DIPLOMACY TRAINING.

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

SEC. 4023. PROMOTING DIRECT EXCHANGES WITH MUSLIM COUNTRIES.

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

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

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

            CHAPTER 2--UNITED STATES MULTILATERAL DIPLOMACY

SEC. 4031. PURPOSE.

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

SEC. 4032. SUPPORT AND EXPANSION OF DEMOCRACY CAUCUS.

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

SEC. 4033. LEADERSHIP AND MEMBERSHIP OF INTERNATIONAL ORGANIZATIONS.

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

SEC. 4034. INCREASED TRAINING IN MULTILATERAL DIPLOMACY.

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

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

  (a) Establishment of Office.--The Secretary of State is authorized to 
establish, within the Bureau of International Organizational Affairs, 
an Office on Multilateral Negotiations to be headed by a Special 
Representative for Multilateral Negotiations (in this section referred 
to as the ``Special Representative'').
  (b) Appointment.--The Special Representative shall be appointed by 
the President and shall have the rank of Ambassador-at-Large. At the 
discretion of the President another official at the Department may 
serve as the Special Representative.
  (c) Staffing.--The Special Representative shall have a staff of 
Foreign Service and civil service officers skilled in multilateral 
diplomacy.
  (d) Duties.--The Special Representative shall have the following 
responsibilities:
          (1) In general.--The primary responsibility of the Special 
        Representative shall be to assist in the organization of, and 
        preparation for, United States participation in multilateral 
        negotiations, including advocacy efforts undertaken by the 
        Department of State and other United States Government 
        agencies.
          (2) Consultations.--The Special Representative shall consult 
        with Congress, international organizations, nongovernmental 
        organizations, and the private sector on matters affecting 
        multilateral negotiations.
          (3) Advisory role.--The Special Representative shall advise 
        the Assistant Secretary for International Organizational 
        Affairs and, as appropriate, the Secretary of State, regarding 
        advocacy at international organizations, multilateral 
        institutions, and negotiations, and shall make recommendations 
        regarding--
                  (A) effective strategies (and tactics) to achieve 
                United States policy objectives at multilateral 
                negotiations;
                  (B) the need for and timing of high level 
                intervention by the President, the Secretary of State, 
                the Deputy Secretary of State, and other United States 
                officials to secure support from key foreign government 
                officials for United States positions at such 
                organizations, institutions, and negotiations; and
                  (C) the composition of United States delegations to 
                multilateral negotiations.
          (4) Annual diplomatic missions of multilateral issues.--The 
        Special Representative, in coordination with the Assistant 
        Secretary for International Organizational Affairs, shall 
        organize annual diplomatic missions to appropriate foreign 
        countries to conduct consultations between principal officers 
        responsible for advising the Secretary of State on 
        international organizations and high-level representatives of 
        the governments of such foreign countries to promote the United 
        States agenda at the United Nations General Assembly and other 
        key international fora (such as the United Nations Human Rights 
        Commission).
          (5) Leadership and membership of international 
        organizations.--The Special Representative, in coordination 
        with the Assistant Secretary of International Organizational 
        Affairs, shall direct the efforts of the United States to 
        reform the criteria for leadership of and membership in 
        international organizations as described in section 4033.
          (6) Participation in multilateral negotiations.--The 
        Secretary of State may direct the Special Representative to 
        serve as a member of a United States delegation to any 
        multilateral negotiation.

                      CHAPTER 3--OTHER PROVISIONS

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

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

SEC. 4042. ENHANCING FREE AND INDEPENDENT MEDIA.

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

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

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

SEC. 4044. REPORT ON BROADCAST OUTREACH STRATEGY.

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

SEC. 4045. OFFICE RELOCATION.

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

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

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

  Subtitle C--Reform of Designation of Foreign Terrorist Organizations

SEC. 4051. DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.

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

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

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

     Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

SEC. 4061. SHORT TITLE.

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

SEC. 4062. COORDINATION OF ASSISTANCE FOR AFGHANISTAN.

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

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

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

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

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

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

SEC. 4064. RULE OF LAW AND RELATED ISSUES.

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

SEC. 4065. MONITORING OF ASSISTANCE.

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

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

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

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

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

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

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

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

``SEC. 301. ASSISTANCE FOR COUNTERNARCOTICS EFFORTS.

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

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

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

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

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

SEC. 4070. REPEAL.

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

      Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

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

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

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

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

SEC. 4083. EXTENSION OF PAKISTAN WAIVERS.

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

                    Subtitle F--Oversight Provisions

SEC. 4091. CASE-ZABLOCKI ACT REQUIREMENTS.

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

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

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

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

SEC. 4102. FEDERAL AIR MARSHAL TRAINING.

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

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

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

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

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

  (a) Commendation.--The Congress commends the Secretary of the 
Treasury for success and leadership in establishing international 
standards for fighting terrorist finance through multilateral 
organizations, including the Financial Action Task Force (FATF) at the 
Organization for Economic Cooperation and Development, the 
International Monetary Fund, the International Bank for Reconstruction 
and Development, and the regional multilateral development banks.
  (b) Policy Guidance.--The Congress encourages the Secretary of the 
Treasury to direct the United States Executive Director at each 
international financial institution to use the voice and vote of the 
United States to urge the institution, and encourages the Secretary of 
the Treasury to use the voice and vote of the United States in other 
multilateral financial policymaking bodies, to--
          (1) provide funding for the implementation of FATF anti-money 
        laundering and anti-terrorist financing standards; and
          (2) promote economic development in the Middle East.

SEC. 4112. EXPANDED REPORTING REQUIREMENT FOR THE SECRETARY OF THE 
                    TREASURY.

  (a) In General.--Section 1701(b) of the International Financial 
Institutions Act (22 U.S.C. 262r(b)) is amended--
          (1) by striking ``and'' at the end of paragraph (10); and
          (2) by redesignating paragraph (11) as paragraph (12) and 
        inserting after paragraph (10) the following:
          ``(11) an assessment of--
                  ``(A) the progress made by the International 
                Terrorist Finance Coordinating Council in developing 
                policies to be pursued with the international financial 
                institutions and other multilateral financial 
                policymaking bodies regarding anti-terrorist financing 
                initiatives;
                  ``(B) the progress made by the United States in 
                negotiations with the international financial 
                institutions and other multilateral financial 
                policymaking bodies to set common anti-terrorist 
                financing standards;
                  ``(C) the extent to which the international financial 
                institutions and other multilateral financial 
                policymaking bodies have adopted anti-terrorist 
                financing standards advocated by the United States; and
                  ``(D) whether and how the international financial 
                institutions are contributing to the fight against the 
                financing of terrorist activities; and''.
  (b) Other Multilateral Policymaking Bodies Defined.--Section 1701(c) 
of such Act (22 U.S.C. 262r(c)) is amended by adding at the end the 
following:
          ``(5) Other multilateral financial policymaking bodies.--The 
        term `other multilateral financial policymaking bodies' means--
                  ``(A) the Financial Action Task Force at the 
                Organization for Economic Cooperation and Development;
                  ``(B) the international network of financial 
                intelligence units known as the `Egmont Group';
                  ``(C) the United States, Canada, the United Kingdom, 
                France, Germany, Italy, Japan, and Russia, when meeting 
                as the Group of Eight; and
                  ``(D) any other multilateral financial policymaking 
                group in which the Secretary of the Treasury represents 
                the United States.''.

SEC. 4113. INTERNATIONAL TERRORIST FINANCE COORDINATING COUNCIL.

  (a) Establishment.--The Secretary of the Treasury shall establish and 
convene an interagency council, to be known as the ``International 
Terrorist Finance Coordinating Council'' (in this section referred to 
as the ``Council''), which shall advise the Secretary on policies to be 
pursued by the United States at meetings of the international financial 
institutions and other multilateral financial policymaking bodies, 
regarding the development of international anti-terrorist financing 
standards.
  (b) Meetings.--
          (1) Attendees.--
                  (A) General attendees.--The Secretary of the Treasury 
                (or a representative of the Secretary of the Treasury) 
                and the Secretary of State (or a representative of the 
                Secretary of State) shall attend each Council meeting.
                  (B) Other attendees.--The Secretary of the Treasury 
                shall determine which other officers of the Federal 
                Government shall attend a Council meeting, on the basis 
                of the issues to be raised for consideration at the 
                meeting. The Secretary shall include in the meeting 
                representatives from all relevant Federal agencies with 
                authority to address the issues.
          (2) Schedule.--Not less frequently than annually, the 
        Secretary of the Treasury shall convene Council meetings at 
        such times as the Secretary deems appropriate, based on the 
        notice, schedule, and agenda items of the international 
        financial institutions and other multilateral financial 
        policymaking bodies.

SEC. 4114. DEFINITIONS.

  In this subtitle:
          (1) International financial institutions.--The term 
        ``international financial institutions'' has the meaning given 
        in section 1701(c)(2) of the International Financial 
        Institutions Act.
          (2) Other multilateral financial policymaking bodies.--The 
        term ``other multilateral financial policymaking bodies'' 
        means--
                  (A) the Financial Action Task Force at the 
                Organization for Economic Cooperation and Development;
                  (B) the international network of financial 
                intelligence units known as the ``Egmont Group'';
                  (C) the United States, Canada, the United Kingdom, 
                France, Germany, Italy, Japan, and Russia, when meeting 
                as the Group of Eight; and
                  (D) any other multilateral financial policymaking 
                group in which the Secretary of the Treasury represents 
                the United States.

                   TITLE V--GOVERNMENT RESTRUCTURING

      Subtitle A--Faster and Smarter Funding for First Responders

SEC. 5001. SHORT TITLE.

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

SEC. 5002. FINDINGS.

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

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

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

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

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

              ``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``SEC. 1801. DEFINITIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 5004. MODIFICATION OF HOMELAND SECURITY ADVISORY SYSTEM.

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

``SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

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

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

SEC. 5005. COORDINATION OF INDUSTRY EFFORTS.

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

SEC. 5006. SUPERSEDED PROVISION.

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

SEC. 5007. SENSE OF CONGRESS REGARDING INTEROPERABLE COMMUNICATIONS.

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

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

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

SEC. 5009. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION SYSTEM.

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

SEC. 5010. REQUIRED COORDINATION.

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

            Subtitle B--Government Reorganization Authority

SEC. 5021. AUTHORIZATION OF INTELLIGENCE COMMUNITY REORGANIZATION 
                    PLANS.

  (a) Reorganization Plans.--Section 903(a)(2) of title 5, United 
States Code, is amended to read as follows:
          ``(2) the abolition of all or a part of the functions of an 
        agency;''.
  (b) Repeal of Limitations.--Section 905 of title 5, United States 
Code, is amended to read as follows:

``Sec. 905. Limitation on authority.

  ``The authority to submit reorganization plans under this chapter is 
limited to the following organizational units:
          ``(1) The Office of the National Intelligence Director.
          ``(2) The Central Intelligence Agency.
          ``(3) The National Security Agency.
          ``(4) The Defense Intelligence Agency.
          ``(5) The National Geospatial-Intelligence Agency.
          ``(6) The National Reconnaissance Office.
          ``(7) Other offices within the Department of Defense for the 
        collection of specialized national intelligence through 
        reconnaissance programs.
          ``(8) The intelligence elements of the Army, the Navy, the 
        Air Force, the Marine Corps, the Federal Bureau of 
        Investigation, and the Department of Energy.
          ``(9) The Bureau of Intelligence and Research of the 
        Department of State.
          ``(10) The Office of Intelligence Analysis of the Department 
        of Treasury.
          ``(11) The elements of the Department of Homeland Security 
        concerned with the analysis of intelligence information, 
        including the Office of Intelligence of the Coast Guard.
          ``(12) Such other elements of any other department or agency 
        as may be designated by the President, or designated jointly by 
        the National Intelligence Director and the head of the 
        department or agency concerned, as an element of the 
        intelligence community.''.
  (c) Reorganization Plans.--903(a) of title 5, United States Code, is 
amended--
          (1) in paragraph (5), by striking ``or'' after the semicolon;
          (2) in paragraph (6), by striking the period and inserting 
        ``; or''; and
          (3) by inserting after paragraph (6) the following:
          ``(7) the creation of an agency.''.
  (d) Application of Chapter.--Chapter 9 of title 5, United States 
Code, is amended by adding at the end the following:

``Sec. 913. Application of chapter

  ``This chapter shall apply to any reorganization plan transmitted to 
Congress in accordance with section 903(b) on or after the date of 
enactment of this section.''.
  (e) Technical and Conforming Amendments.--
          (1) Table of sections.--The table of sections for chapter 9 
        of title 5, United States Code, is amended by adding after the 
        item relating to section 912 the following:

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

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

SEC. 5025. RESPONSIBILITIES OF COUNTERNARCOTICS OFFICE.

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

``SEC. 878. OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

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

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

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

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

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

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

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

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

       Subtitle D--Improvements to Information Securityn Security

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

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

             Subtitle E--Personnel Management Improvements

                 CHAPTER 1--APPOINTMENTS PROCESS REFORM

SEC. 5041. APPOINTMENTS TO NATIONAL SECURITY POSITIONS.

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

SEC. 5042. PRESIDENTIAL INAUGURAL TRANSITIONS.

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

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

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

 ``TITLE III--INTELLIGENCE PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS

``SEC. 301. PERSONS REQUIRED TO FILE.

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

``SEC. 302. CONTENTS OF REPORTS.

  ``(a) Each report filed pursuant to section 301 (c) and (d) shall 
include a full and complete statement with respect to the following:
          ``(1)(A) The source, description, and category of amount or 
        value of income (other than income referred to in subparagraph 
        (B)) from any source (other than from current employment by the 
        United States Government), received during the preceding 
        calendar year, aggregating more than $500 in amount or value, 
        except that honoraria received during Government service by an 
        officer or employee shall include, in addition to the source, 
        the exact amount and the date it was received.
          ``(B) The source, description, and category of amount or 
        value of investment income which may include but is not limited 
        to dividends, rents, interest, and capital gains, received 
        during the preceding calendar year which exceeds $500 in amount 
        or value.
          ``(C) The categories for reporting the amount or value of 
        income covered in subparagraphs (A) and (B) are--
                  ``(i) greater than $500 but not more than $20,000;
                  ``(ii) greater than $20,000 but not more than 
                $100,000;
                  ``(iii) greater than $100,000 but not more than 
                $1,000,000;
                  ``(iv) greater than $1,000,000 but not more than 
                $2,500,000; and
                  ``(v) greater than $2,500,000.
          ``(2)(A) The identity of the source, a brief description, and 
        the value of all gifts aggregating more than the minimal value 
        as established by section 7342(a)(5) of title 5, United States 
        Code, or $250, whichever is greater, received from any source 
        other than a relative of the reporting individual during the 
        preceding calendar year, except that any food, lodging, or 
        entertainment received as personal hospitality of an individual 
        need not be reported, and any gift with a fair market value of 
        $100 or less, as adjusted at the same time and by the same 
        percentage as the minimal value is adjusted, need not be 
        aggregated for purposes of this subparagraph.
          ``(B) The identity of the source and a brief description 
        (including dates of travel and nature of expenses provided) of 
        reimbursements received from any source aggregating more than 
        the minimal value as established by section 7342(a)(5) of title 
        5, United States Code, or $250, whichever is greater and 
        received during the preceding calendar year.
          ``(C) In an unusual case, a gift need not be aggregated under 
        subparagraph (A) if a publicly available request for a waiver 
        is granted.
          ``(3) The identity and category of value of any interest in 
        property held during the preceding calendar year in a trade or 
        business, or for investment or the production of income, which 
        has a fair market value which exceeds $5,000 as of the close of 
        the preceding calendar year, excluding any personal liability 
        owed to the reporting individual by a spouse, or by a parent, 
        brother, sister, or child of the reporting individual or of the 
        reporting individual's spouse, or any deposit accounts 
        aggregating $100,000 or less in a financial institution, or any 
        Federal Government securities aggregating $100,000 or less.
          ``(4) The identity and category of value of the total 
        liabilities owed to any creditor other than a spouse, or a 
        parent, brother, sister, or child of the reporting individual 
        or of the reporting individual's spouse which exceed $20,000 at 
        any time during the preceding calendar year, excluding--
                  ``(A) any mortgage secured by real property which is 
                a personal residence of the reporting individual or his 
                spouse; and
                  ``(B) any loan secured by a personal motor vehicle, 
                household furniture, or appliances, which loan does not 
                exceed the purchase price of the item which secures it.
        With respect to revolving charge accounts, only those with an 
        outstanding liability which exceeds $20,000 as of the close of 
        the preceding calendar year need be reported under this 
        paragraph.
          ``(5) Except as provided in this paragraph, a brief 
        description of any real property, other than property used 
        solely as a personal residence of the reporting individual or 
        his spouse, and stocks, bonds, commodities futures, and other 
        forms of securities, if--
                  ``(A) purchased, sold, or exchanged during the 
                preceding calendar year;
                  ``(B) the value of the transaction exceeded $5,000; 
                and
                  ``(C) the property or security is not already 
                required to be reported as a source of income pursuant 
                to paragraph (1)(B) or as an asset pursuant to 
                paragraph (3).
        Reporting is not required under this paragraph of any 
        transaction solely by and between the reporting individual, his 
        spouse, or dependent children.
          ``(6)(A) The identity of all positions held on or before the 
        date of filing during the current calendar year (and, for the 
        first report filed by an individual, during the 1-year period 
        preceding such calendar year) as an officer, director, trustee, 
        partner, proprietor, representative, employee, or consultant of 
        any corporation, company, firm, partnership, or other business 
        enterprise, any nonprofit organization, any labor organization, 
        or any educational or other institution other than the United 
        States Government. This subparagraph shall not require the 
        reporting of positions held in any religious, social, 
        fraternal, or political entity and positions solely of an 
        honorary nature.
          ``(B) If any person, other than a person reported as a source 
        of income under paragraph (1)(A) or the United States 
        Government, paid a nonelected reporting individual compensation 
        in excess of $25,000 in the calendar year in which, or the 
        calendar year prior to the calendar year in which, the 
        individual files his first report under this title, the 
        individual shall include in the report--
                  ``(i) the identity of each source of such 
                compensation; and
                  ``(ii) a brief description of the nature of the 
                duties performed or services rendered by the reporting 
                individual for each such source.
          ``(C) Subparagraph (B) shall not require any individual to 
        include in such report any information--
                  ``(i) with respect to a person for whom services were 
                provided by any firm or association of which such 
                individual was a member, partner, or employee, unless 
                the individual was directly involved in the provision 
                of such services;
                  ``(ii) that is protected by a court order or is under 
                seal; or
                  ``(iii) that is considered confidential as a result 
                of--
                          ``(I) a privileged relationship established 
                        by a confidentiality agreement entered into at 
                        the time the person retained the services of 
                        the individual;
                          ``(II) a grand jury proceeding or a nonpublic 
                        investigation, if there are no public filings, 
                        statements, appearances, or reports that 
                        identify the person for whom such individual is 
                        providing services; or
                          ``(III) an applicable rule of professional 
                        conduct that prohibits disclosure of the 
                        information and that can be enforced by a 
                        professional licensing body.
          ``(7) A description of parties to and terms of any agreement 
        or arrangement with respect to (A) future employment; (B) a 
        leave of absence during the period of the reporting 
        individual's Government service; (C) continuation of payments 
        by a former employer other than the United States Government; 
        and (D) continuing participation in an employee welfare or 
        benefit plan maintained by a former employer. The description 
        of any formal agreement for future employment shall include the 
        date of that agreement.
          ``(8) The category of the total cash value of any interest of 
        the reporting individual in a qualified blind trust.
  ``(b)(1) Each report filed pursuant to subsections (a) and (b) of 
section 301 shall include a full and complete statement with respect to 
the information required by--
          ``(A) paragraphs (1) and (6) of subsection (a) for the year 
        of filing and the preceding calendar year,
          ``(B) paragraphs (3) and (4) of subsection (a) as of the date 
        specified in the report but which is less than 31 days before 
        the filing date, and
          ``(C) paragraph (7) of subsection (a) as of the filing date 
        but for periods described in such paragraph.
  ``(2)(A) In lieu of filling out 1 or more schedules of a financial 
disclosure form, an individual may supply the required information in 
an alternative format, pursuant to either rules adopted by the Office 
of Government Ethics or pursuant to a specific written determination by 
the Director of the Office of Government Ethics for a reporting 
individual.
  ``(B) In lieu of indicating the category of amount or value of any 
item contained in any report filed under this title, a reporting 
individual may indicate the exact dollar amount of such item.
  ``(c) In the case of any individual described in section 301(e), any 
reference to the preceding calendar year shall be considered also to 
include that part of the calendar year of filing up to the date of the 
termination of employment.
  ``(d)(1) The categories for reporting the amount or value of the 
items covered in subsection (a)(3) are--
          ``(A) greater than $5,000 but not more than $15,000;
          ``(B) greater than $15,000 but not more than $25,000;
          ``(C) greater than $25,000 but not more than $100,000;
          ``(D) greater than $100,000 but not more than $1,000,000;
          ``(E) greater than $1,000,000 but not more than $2,500,000; 
        and
          ``(F) greater than $2,500,000.
  ``(2) For the purposes of subsection (a)(3) if the current value of 
an interest in real property (or an interest in a real estate 
partnership) is not ascertainable without an appraisal, an individual 
may list (A) the date of purchase and the purchase price of the 
interest in the real property, or (B) the assessed value of the real 
property for tax purposes, adjusted to reflect the market value of the 
property used for the assessment if the assessed value is computed at 
less than 100 percent of such market value, but such individual shall 
include in his report a full and complete description of the method 
used to determine such assessed value, instead of specifying a category 
of value pursuant to paragraph (1). If the current value of any other 
item required to be reported under subsection (a)(3) is not 
ascertainable without an appraisal, such individual may list the book 
value of a corporation whose stock is not publicly traded, the net 
worth of a business partnership, the equity value of an individually 
owned business, or with respect to other holdings, any recognized 
indication of value, but such individual shall include in his report a 
full and complete description of the method used in determining such 
value. In lieu of any value referred to in the preceding sentence, an 
individual may list the assessed value of the item for tax purposes, 
adjusted to reflect the market value of the item used for the 
assessment if the assessed value is computed at less than 100 percent 
of such market value, but a full and complete description of the method 
used in determining such assessed value shall be included in the 
report.
  ``(3) The categories for reporting the amount or value of the items 
covered in paragraphs (4) and (8) of subsection (a) are--
          ``(A) greater than $20,000 but not more than $100,000;
          ``(B) greater than $100,000 but not more than $500,000;
          ``(C) greater than $500,000 but not more than $1,000,000; and
          ``(D) greater than $1,000,000.
  ``(e)(1) Except as provided in subparagraph (F), each report required 
by section 301 shall also contain information listed in paragraphs (1) 
through (5) of subsection (a) respecting the spouse or dependent child 
of the reporting individual as follows:
          ``(A) The sources of earned income earned by a spouse, 
        including honoraria, which exceed $500, except that, with 
        respect to earned income, if the spouse is self-employed in 
        business or a profession, only the nature of such business or 
        profession need be reported.
          ``(B) All information required to be reported in subsection 
        (a)(1)(B) with respect to investment income derived by a spouse 
        or dependent child.
          ``(C) In the case of any gifts received by a spouse or 
        dependent child which are not received totally independent of 
        the relationship of the spouse or dependent child to the 
        reporting individual, the identity of the source and a brief 
        description of gifts of transportation, lodging, food, or 
        entertainment and a brief description and the value of other 
        gifts.
          ``(D) In the case of any reimbursements received by a spouse 
        or dependent child which are not received totally independent 
        of the relationship of the spouse or dependent child to the 
        reporting individual, the identity of the source and a brief 
        description of each such reimbursement.
          ``(E) In the case of items described in paragraphs (3) 
        through (5) of subsection (a), all information required to be 
        reported under these paragraphs other than items which the 
        reporting individual certifies (i) represent the spouse's or 
        dependent child's sole financial interest or responsibility and 
        which the reporting individual has no knowledge of, (ii) are 
        not in any way, past or present, derived from the income, 
        assets, or activities of the reporting individual, and (iii) 
        are ones from which he neither derives, nor expects to derive, 
        any financial or economic benefit.
          ``(F) Reports required by subsections (a), (b), and (c) of 
        section 301 shall, with respect to the spouse and dependent 
        child of the reporting individual, only contain information 
        listed in paragraphs (1), (3), and (4) of subsection (a).
  ``(2) No report shall be required with respect to a spouse living 
separate and apart from the reporting individual with the intention of 
terminating the marriage or providing for permanent separation, or with 
respect to any income or obligations of an individual arising from the 
dissolution of his marriage or the permanent separation from his 
spouse.
  ``(f)(1) Except as provided in paragraph (2), each reporting 
individual shall report the information required to be reported 
pursuant to subsections (a), (b), and (c) with respect to the holdings 
of and the income from a trust or other financial arrangement from 
which income is received by, or with respect to which a beneficial 
interest in principal or income is held by, such individual, his 
spouse, or any dependent child.
  ``(2) A reporting individual need not report the holdings of or the 
source of income from any of the holdings of--
          ``(A) any qualified blind trust (as defined in paragraph 
        (3));
          ``(B) a trust--
                  ``(i) which was not created directly by such 
                individual, his spouse, or any dependent child, and
                  ``(ii) the holdings or sources of income of which 
                such individual, his spouse, and any dependent child 
                have no knowledge; or
          ``(C) an entity described under the provisions of paragraph 
        (8), but such individual shall report the category of the 
        amount of income received by him, his spouse, or any dependent 
        child from the trust or other entity under subsection 
        (a)(1)(B).
  ``(3) For purposes of this subsection, the term `qualified blind 
trust' includes any trust in which a reporting individual, his spouse, 
or any minor or dependent child has a beneficial interest in the 
principal or income, and which meets the following requirements:
          ``(A)(i) The trustee of the trust and any other entity 
        designated in the trust instrument to perform fiduciary duties 
        is a financial institution, an attorney, a certified public 
        accountant, a broker, or an investment advisor who--
                  ``(I) is independent of and not affiliated with any 
                interested party so that the trustee or other person 
                cannot be controlled or influenced in the 
                administration of the trust by any interested party;
                  ``(II) is not and has not been an employee of or 
                affiliated with any interested party and is not a 
                partner of, or involved in any joint venture or other 
                investment with, any interested party; and
                  ``(III) is not a relative of any interested party.
          ``(ii) Any officer or employee of a trustee or other entity 
        who is involved in the management or control of the trust--
                  ``(I) is independent of and not affiliated with any 
                interested party so that such officer or employee 
                cannot be controlled or influenced in the 
                administration of the trust by any interested party;
                  ``(II) is not a partner of, or involved in any joint 
                venture or other investment with, any interested party; 
                and
                  ``(III) is not a relative of any interested party.
          ``(B) Any asset transferred to the trust by an interested 
        party is free of any restriction with respect to its transfer 
        or sale unless such restriction is expressly approved by the 
        Office of Government Ethics.
          ``(C) The trust instrument which establishes the trust 
        provides that--
                  ``(i) except to the extent provided in subparagraph 
                (B), the trustee in the exercise of his authority and 
                discretion to manage and control the assets of the 
                trust shall not consult or notify any interested party;
                  ``(ii) the trust shall not contain any asset the 
                holding of which by an interested party is prohibited 
                by any law or regulation;
                  ``(iii) the trustee shall promptly notify the 
                reporting individual and the Office of Government 
                Ethics when the holdings of any particular asset 
                transferred to the trust by any interested party are 
                disposed of or when the value of such holding is less 
                than $1,000;
                  ``(iv) the trust tax return shall be prepared by the 
                trustee or his designee, and such return and any 
                information relating thereto (other than the trust 
                income summarized in appropriate categories necessary 
                to complete an interested party's tax return), shall 
                not be disclosed to any interested party;
                  ``(v) an interested party shall not receive any 
                report on the holdings and sources of income of the 
                trust, except a report at the end of each calendar 
                quarter with respect to the total cash value of the 
                interest of the interested party in the trust or the 
                net income or loss of the trust or any reports 
                necessary to enable the interested party to complete an 
                individual tax return required by law or to provide the 
                information required by subsection (a)(1) of this 
                section, but such report shall not identify any asset 
                or holding;
                  ``(vi) except for communications which solely consist 
                of requests for distributions of cash or other 
                unspecified assets of the trust, there shall be no 
                direct or indirect communication between the trustee 
                and an interested party with respect to the trust 
                unless such communication is in writing and unless it 
                relates only (I) to the general financial interest and 
                needs of the interested party (including, but not 
                limited to, an interest in maximizing income or long-
                term capital gain), (II) to the notification of the 
                trustee of a law or regulation subsequently applicable 
                to the reporting individual which prohibits the 
                interested party from holding an asset, which 
                notification directs that the asset not be held by the 
                trust, or (III) to directions to the trustee to sell 
                all of an asset initially placed in the trust by an 
                interested party which in the determination of the 
                reporting individual creates a conflict of interest or 
                the appearance thereof due to the subsequent assumption 
                of duties by the reporting individual (but nothing 
                herein shall require any such direction); and
                  ``(vii) the interested parties shall make no effort 
                to obtain information with respect to the holdings of 
                the trust, including obtaining a copy of any trust tax 
                return filed or any information relating thereto except 
                as otherwise provided in this subsection.
          ``(D) The proposed trust instrument and the proposed trustee 
        is approved by the Office of Government Ethics.
          ``(E) For purposes of this subsection, `interested party' 
        means a reporting individual, his spouse, and any minor or 
        dependent child; `broker' has the meaning set forth in section 
        3(a)(4) of the Securities and Exchange Act of 1934 (15 U.S.C. 
        78c(a)(4)); and `investment adviser' includes any investment 
        adviser who, as determined under regulations prescribed by the 
        supervising ethics office, is generally involved in his role as 
        such an adviser in the management or control of trusts.
  ``(4)(A) An asset placed in a trust by an interested party shall be 
considered a financial interest of the reporting individual, for the 
purposes of any applicable conflict of interest statutes, regulations, 
or rules of the Federal Government (including section 208 of title 18, 
United States Code), until such time as the reporting individual is 
notified by the trustee that such asset has been disposed of, or has a 
value of less than $1,000.
  ``(B)(i) The provisions of subparagraph (A) shall not apply with 
respect to a trust created for the benefit of a reporting individual, 
or the spouse, dependent child, or minor child of such a person, if the 
Office of Government Ethics finds that--
          ``(I) the assets placed in the trust consist of a widely-
        diversified portfolio of readily marketable securities;
          ``(II) none of the assets consist of securities of entities 
        having substantial activities in the area of the reporting 
        individual's primary area of responsibility;
          ``(III) the trust instrument prohibits the trustee, 
        notwithstanding the provisions of paragraph (3)(C) (iii) and 
        (iv), from making public or informing any interested party of 
        the sale of any securities;
          ``(IV) the trustee is given power of attorney, 
        notwithstanding the provisions of paragraph (3)(C)(v), to 
        prepare on behalf of any interested party the personal income 
        tax returns and similar returns which may contain information 
        relating to the trust; and
          ``(V) except as otherwise provided in this paragraph, the 
        trust instrument provides (or in the case of a trust which by 
        its terms does not permit amendment, the trustee, the reporting 
        individual, and any other interested party agree in writing) 
        that the trust shall be administered in accordance with the 
        requirements of this subsection and the trustee of such trust 
        meets the requirements of paragraph (3)(A).
  ``(ii) In any instance covered by subparagraph (B) in which the 
reporting individual is an individual whose nomination is being 
considered by a congressional committee, the reporting individual shall 
inform the congressional committee considering his nomination before or 
during the period of such individual's confirmation hearing of his 
intention to comply with this paragraph.
  ``(5)(A) The reporting individual shall, within 30 days after a 
qualified blind trust is approved by the Office of Government Ethics, 
file with such office a copy of--
          ``(i) the executed trust instrument of such trust (other than 
        those provisions which relate to the testamentary disposition 
        of the trust assets), and
          ``(ii) a list of the assets which were transferred to such 
        trust, including the category of value of each asset as 
        determined under subsection (d).
This subparagraph shall not apply with respect to a trust meeting the 
requirements for being considered a qualified blind trust under 
paragraph (7).
  ``(B) The reporting individual shall, within 30 days of transferring 
an asset (other than cash) to a previously established qualified blind 
trust, notify the Office of Government Ethics of the identity of each 
such asset and the category of value of each asset as determined under 
subsection (d).
  ``(C) Within 30 days of the dissolution of a qualified blind trust, a 
reporting individual shall (i) notify the Office of Government Ethics 
of such dissolution, and (ii) file with such Office and his designated 
agency ethics official a copy of a list of the assets of the trust at 
the time of such dissolution and the category of value under subsection 
(c) of each such asset.
  ``(D) Documents filed under subparagraphs (A), (B), and (C) and the 
lists provided by the trustee of assets placed in the trust by an 
interested party which have been sold shall be made available to the 
public in the same manner as a report is made available under section 
305 and the provisions of that section shall apply with respect to such 
documents and lists.
  ``(E) A copy of each written communication with respect to the trust 
under paragraph (3)(C)(vi) shall be filed by the person initiating the 
communication with the Office of Government Ethics within 5 days of the 
date of the communication.
  ``(6)(A) A trustee of a qualified blind trust shall not knowingly and 
willfully, or negligently, (i) disclose any information to an 
interested party with respect to such trust that may not be disclosed 
under paragraph (3); (ii) acquire any holding the ownership of which is 
prohibited by the trust instrument; (iii) solicit advice from any 
interested party with respect to such trust, which solicitation is 
prohibited by paragraph (3) or the trust agreement; or (iv) fail to 
file any document required by this subsection.
  ``(B) A reporting individual shall not knowingly and willfully, or 
negligently, (i) solicit or receive any information with respect to a 
qualified blind trust of which he is an interested party that may not 
be disclosed under paragraph (3)(C) or (ii) fail to file any document 
required by this subsection.
  ``(C)(i) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully violates the provisions of subparagraph (A) or 
(B). The court in which such action is brought may assess against such 
individual a civil penalty in any amount not to exceed $11,000.
  ``(ii) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
negligently violates the provisions of subparagraph (A) or (B). The 
court in which such action is brought may assess against such 
individual a civil penalty in any amount not to exceed $5,500.
  ``(7) Any trust may be considered to be a qualified blind trust if--
          ``(A) the trust instrument is amended to comply with the 
        requirements of paragraph (3) or, in the case of a trust 
        instrument which does not by its terms permit amendment, the 
        trustee, the reporting individual, and any other interested 
        party agree in writing that the trust shall be administered in 
        accordance with the requirements of this subsection and the 
        trustee of such trust meets the requirements of paragraph 
        (3)(A); except that in the case of any interested party who is 
        a dependent child, a parent or guardian of such child may 
        execute the agreement referred to in this 
        subparagraph;paragraph;
          ``(B) a copy of the trust instrument (except testamentary 
        provisions) and a copy of the agreement referred to in 
        subparagraph (A), and a list of the assets held by the trust at 
        the time of approval by the Office of Government Ethics, 
        including the category of value of each asset as determined 
        under subsection (d), are filed with such office and made 
        available to the public as provided under paragraph (5)(D); and
          ``(C) the Director of the Office of Government Ethics 
        determines that approval of the trust arrangement as a 
        qualified blind trust is in the particular case appropriate to 
        assure compliance with applicable laws and regulations.
  ``(8) A reporting individual shall not be required to report the 
financial interests held by a widely held investment fund (whether such 
fund is a mutual fund, regulated investment company, pension or 
deferred compensation plan, or other investment fund), if--
          ``(A)(i) the fund is publicly traded; or
          ``(ii) the assets of the fund are widely diversified; and
          ``(B) the reporting individual neither exercises control over 
        nor has the ability to exercise control over the financial 
        interests held by the fund.
  ``(9)(A) A reporting individual described in subsection (a), (b), or 
(c) of section 301 shall not be required to report the assets or 
sources of income of any publicly available investment fund if--
          ``(i) the identity of such assets and sources of income is 
        not provided to investors;
          ``(ii) the reporting individual neither exercises control 
        over nor has the ability to exercise control over the fund; and
          ``(iii) the reporting individual--
                  ``(I) does not otherwise have knowledge of the 
                individual assets of the fund and provides written 
                certification by the fund manager that individual 
                assets of the fund are not disclosed to investors; or
                  ``(II) has executed a written ethics agreement that 
                contains a commitment to divest the interest in the 
                investment fund no later than 90 days after the date of 
                the agreement.
The reporting individual shall file the written certification by the 
fund manager as an attachment to the report filed pursuant to section 
301.
  ``(B) The provisions of subparagraph (A) shall apply to an individual 
described in subsection (d) or (e) of section 301 if--
          ``(i) the interest in the trust or investment fund is 
        acquired, during the period to be covered by the report, 
        involuntarily (such as through inheritance) or as a legal 
        incident of marriage; and
          ``(ii) for an individual described in subsection (d), the 
        individual executes a written ethics agreement containing a 
        commitment to divest the interest no later than 90 days after 
        the date the report is due.
Failure to divest within the time specified or within an extension 
period granted by the supervising ethics office for good cause shown 
shall result in an immediate requirement to report as specified in 
paragraph (1).
  ``(g) Political campaign funds, including campaign receipts and 
expenditures, need not be included in any report filed pursuant to this 
title.
  ``(h) A report filed pursuant to subsection (a), (c), or (d) of 
section 301 need not contain the information described in subparagraphs 
(A), (B), and (C) of subsection (a)(2) with respect to gifts and 
reimbursements received in a period when the reporting individual was 
not an officer or employee of the Federal Government.
  ``(i) A reporting individual shall not be required under this title 
to report--
          ``(1) financial interests in or income derived from--
                  ``(A) any retirement system under title 5, United 
                States Code (including the Thrift Savings Plan under 
                subchapter III of chapter 84 of such title); or
                  ``(B) any other retirement system maintained by the 
                United States for officers or employees of the United 
                States, including the President, or for members of the 
                uniformed services; or
          ``(2) benefits received under the Social Security Act (42 
        U.S.C. 301 et seq.).

``SEC. 303. FILING OF REPORTS.

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

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

  ``(a) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully falsifies or who knowingly and willfully fails 
to file or report any information that such individual is required to 
report pursuant to section 302. The court in which such action is 
brought may assess against such individual a civil penalty in any 
amount, not to exceed $11,000, order the individual to file or report 
any information required by section 302, or both.
  ``(b) The head of each agency, each Secretary concerned, or the 
Director of the Office of Government Ethics, as the case may be, shall 
refer to the Attorney General the name of any individual which such 
official has reasonable cause to believe has willfully failed to file a 
report or has willfully falsified or willfully failed to file 
information required to be reported.
  ``(c) The President, the Vice President, the Secretary concerned, or 
the head of each agency may take any appropriate personnel or other 
action in accordance with applicable law or regulation against any 
individual failing to file a report or falsifying or failing to report 
information required to be reported.
  ``(d)(1) Any individual who files a report required to be filed under 
this title more than 30 days after the later of--
          ``(A) the date such report is required to be filed pursuant 
        to the provisions of this title and the rules and regulations 
        promulgated thereunder; or
          ``(B) if a filing extension is granted to such individual 
        under section 301(g), the last day of the filing extension 
        period, shall, at the direction of and pursuant to regulations 
        issued by the Office of Government Ethics, pay a filing fee of 
        $500. All such fees shall be deposited in the miscellaneous 
        receipts of the Treasury. The authority under this paragraph to 
        direct the payment of a filing fee may be delegated by the 
        Office of Government Ethics to other agencies in the executive 
        branch.
  ``(2) The Office of Government Ethics may waive the filing fee under 
this subsection for good cause shown.

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

  ``Any report filed with or transmitted to an agency or the Office of 
Government Ethics pursuant to this title shall be made available to the 
public (in the same manner as described in section 105) and retained by 
such agency or Office, as the case may be, for a period of 6 years 
after receipt of the report. After such 6-year period the report shall 
be destroyed unless needed in an ongoing investigation, except that in 
the case of an individual who filed the report pursuant to section 
301(b) and was not subsequently confirmed by the Senate, such reports 
shall be destroyed 1 year after the individual is no longer under 
consideration by the Senate, unless needed in an ongoing investigation.

``SEC. 306. REVIEW OF REPORTS.

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

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

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

``SEC. 308. AUTHORITY OF COMPTROLLER GENERAL.

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

``SEC. 309. DEFINITIONS.

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

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

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

``SEC. 311. ADMINISTRATION OF PROVISIONS.

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

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

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

SEC. 5045. EFFECTIVE DATES.

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

       CHAPTER 2--FEDERAL BUREAU OF INVESTIGATION REVITALIZATION

SEC. 5051. MANDATORY SEPARATION AGE.

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

SEC. 5052. RETENTION AND RELOCATION BONUSES.

  (a) In General.--Subchapter IV of chapter 57 of title 5, United 
States Code, is amended by adding at the end the following:

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

  ``(a) Authority.--The Director of the Federal Bureau of 
Investigation, after consultation with the Director of the Office of 
Personnel Management, may pay, on a case-by-case basis, a bonus under 
this section to an employee of the Bureau if--
          ``(1)(A) the unusually high or unique qualifications of the 
        employee or a special need of the Bureau for the employee's 
        services makes it essential to retain the employee; and
          ``(B) the Director of the Federal Bureau of Investigation 
        determines that, in the absence of such a bonus, the employee 
        would be likely to leave--
                  ``(i) the Federal service; or
                  ``(ii) for a different position in the Federal 
                service; or
          ``(2) the individual is transferred to a different geographic 
        area with a higher cost of living (as determined by the 
        Director of the Federal Bureau of Investigation).
  ``(b) Service Agreement.--Payment of a bonus under this section is 
contingent upon the employee entering into a written service agreement 
with the Bureau to complete a period of service, not to exceed 4 years, 
with the Bureau. Such agreement shall include--
          ``(1) the period of service the individual shall be required 
        to complete in return for the bonus; and
          ``(2) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed, and the effect of the termination.
  ``(c) Limitations on Authority.--A bonus paid under this section--
          ``(1) shall not exceed 50 percent of the annual rate of basic 
        pay of the employee as of the beginning of the period of 
        service (established under subsection (b)) multiplied by the 
        number of years (including a fractional part of a year) in the 
        required period of service of the employee involved, but shall 
        in no event exceed 100 percent of the annual rate of basic pay 
        of the employee as of the beginning of the service period; and
          ``(2) may not be paid to an individual who is appointed to or 
        who holds a position--
                  ``(A) to which an individual is appointed by the 
                President, by and with the advice and consent of the 
                Senate; or
                  ``(B) in the Senior Executive Service as a noncareer 
                appointee (as defined in section 3132(a)).
  ``(d) Impact on Basic Pay.--A retention bonus is not part of the 
basic pay of an employee for any purpose.
  ``(e) Termination of Authority.--The authority to grant bonuses under 
this section shall cease to be available after December 31, 2009.''.
  (b) Clerical Amendment.--The analysis for chapter 57 of title 5, 
United States Code, is amended by adding at the end the following:

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

SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE SERVICE.

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

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

``Sec. 3598. Federal Bureau of Investigation Reserve Service

  ``(a) Establishment.--The Director of the Federal Bureau of 
Investigation may provide for the establishment and training of a 
Federal Bureau of Investigation Reserve Service (hereinafter in this 
section referred to as the `FBI Reserve Service') for temporary 
reemployment of employees in the Bureau during periods of emergency, as 
determined by the Director.
  ``(b) Membership.--Membership in the FBI Reserve Service shall be 
limited to individuals who previously served as full-time employees of 
the Bureau.
  ``(c) Annuitants.--If an individual receiving an annuity from the 
Civil Service Retirement and Disability Fund on the basis of such 
individual's service becomes temporarily reemployed pursuant to this 
section, such annuity shall not be discontinued thereby. An individual 
so reemployed shall not be considered an employee for the purposes of 
chapter 83 or 84.
  ``(d) No Impact on Bureau Personnel Ceiling.--FBI Reserve Service 
members reemployed on a temporary basis pursuant to this section shall 
not count against any personnel ceiling applicable to the Bureau.
  ``(e) Expenses.--The Director may provide members of the FBI Reserve 
Service transportation and per diem in lieu of subsistence, in 
accordance with applicable provisions of this title, for the purpose of 
participating in any training that relates to service as a member of 
the FBI Reserve Service.
  ``(f) Limitation on Membership.--Membership of the FBI Reserve 
Service is not to exceed 500 members at any given time.
  ``(g) Limitation on Duration of Service.--An individual may not be 
reemployed under this section for more than 180 days in connection with 
any particular emergency unless, in the judgment of the Director, the 
public interest so requires.''.
  (b) Clerical Amendment.--The analysis for chapter 35 of title 5, 
United States Code, is amended by adding at the end the following:

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

``3598. Federal Bureau of Investigation Reserve Service.''.

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

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

                    CHAPTER 3--REPORTING REQUIREMENT

SEC. 5061. REPORTING REQUIREMENT.

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

              Subtitle F--Security Clearance Modernization

SEC. 5071. DEFINITIONS.

  In this subtitle:
          (1) The term ``Director'' means the National Intelligence 
        Director.
          (2) The term ``agency'' means--
                  (A) an executive agency, as defined in section 105 of 
                title 5, United States Code;
                  (B) a military department, as defined in section 102 
                of title 5, United States Code; and
                  (C) elements of the intelligence community, as 
                defined in section 3(4) of the National Security Act of 
                1947 (50 U.S.C. 401a(4)).
          (3) The term ``authorized investigative agency'' means an 
        agency authorized by law, regulation or direction of the 
        Director to conduct a counterintelligence investigation or 
        investigation of persons who are proposed for access to 
        classified information to ascertain whether such persons 
        satisfy the criteria for obtaining and retaining access to such 
        information.
          (4) The term ``authorized adjudicative agency'' means an 
        agency authorized by law, regulation or direction of the 
        Director to determine eligibility for access to classified 
        information in accordance with Executive Order 12968.
          (5) The term ``highly sensitive program'' means--
                  (A) a government program designated as a Special 
                Access Program (as defined by section 4.1(h) of 
                Executive Order 12958); and
                  (B) a government program that applies restrictions 
                required for--
                          (i) Restricted Data (as defined by section 11 
                        y. of the Atomic Energy Act of 1954 (42 U.S.C. 
                        2014(y)); or
                          (ii) other information commonly referred to 
                        as ``Sensitive Compartmented Information''.
          (6) The term ``current investigation file'' means, with 
        respect to a security clearance, a file on an investigation or 
        adjudication that has been conducted during--
                  (A) the 5-year period beginning on the date the 
                security clearance was granted, in the case of a Top 
                Secret Clearance, or the date access was granted to a 
                highly sensitive program;
                  (B) the 10-year period beginning on the date the 
                security clearance was granted in the case of a Secret 
                Clearance; and
                  (C) the 15-year period beginning on the date the 
                security clearance was granted in the case of a 
                Confidential Clearance.
          (7) The term ``personnel security investigation'' means any 
        investigation required for the purpose of determining the 
        eligibility of any military, civilian, or government contractor 
        personnel to access classified information.
          (8) The term ``periodic reinvestigations'' means--
                  (A) investigations conducted for the purpose of 
                updating a previously completed background 
                investigation--
                          (i) every five years in the case of a Top 
                        Secret Clearance or access to a highly 
                        sensitive program;
                          (ii) every 10 years in the case of a Secret 
                        Clearance; and
                          (iii) every 15 years in the case of a 
                        Confidential Clearance;
                  (B) on-going investigations to identify personnel 
                security risks as they develop, pursuant to section 
                5075(c).
          (9) The term ``appropriate committees of Congress'' means--
                  (A) the Permanent Select Committee on Intelligence 
                and the Committees on Armed Services, Judiciary, and 
                Government Reform of the House of Representatives; and
                  (B) the Select Committee on Intelligence and the 
                Committees on Armed Services, Judiciary, and 
                Governmental Affairs of the Senate.

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

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

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

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

SEC. 5074. ESTABLISHMENT OF NATIONAL DATABASE .

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

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

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

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

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

SEC. 5077. SECURITY CLEARANCES FOR PRESIDENTIAL TRANSITION.

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

SEC. 5078. REPORTS.

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

              Subtitle G--Emergency Financial Preparedness

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

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

SEC. 5082. EXTENSION OF EMERGENCY ORDER AUTHORITY OF THE SECURITIES AND 
                    EXCHANGE COMMISSION.

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

SEC. 5083. PARALLEL AUTHORITY OF THE SECRETARY OF THE TREASURY WITH 
                    RESPECT TO GOVERNMENT SECURITIES.

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

                       Subtitle H--Other Matters

                       Chapter 1--Privacy Matters

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

  (a) Short Title.--This section may be cited as the ``Federal Agency 
Protection of Privacy Act of 2004''.
  (b) In General.--Title 5, United States Code, is amended by adding 
after section 553 the following new section:

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

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

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

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

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

            CHAPTER 2--MUTUAL AID AND LITIGATION MANAGEMENT

SEC. 5101. SHORT TITLE.

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

SEC. 5102. MUTUAL AID AUTHORIZED.

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

SEC. 5103. LITIGATION MANAGEMENT AGREEMENTS.

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

SEC. 5104. ADDITIONAL PROVISIONS.

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

SEC. 5105. DEFINITIONS.

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

                    Chapter 3--Miscellaneous Matters

SEC. 5131. ENHANCEMENT OF PUBLIC SAFETY COMMUNICATIONS 
                    INTEROPERABILITY.

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

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

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

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

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

SEC. 5134. INFORMATION SHARING.

  (a) Definitions.--In this section:
          (1) Advisory board.--The term ``Advisory Board'' means the 
        Advisory Board on Information Sharing established under 
        subsection (i).
          (2) Executive council.--The term ``Executive Council'' means 
        the Executive Council on Information Sharing established under 
        subsection (h).
          (3) Homeland security information.--The term ``homeland 
        security information'' means all information, whether 
        collected, produced, or distributed by intelligence, law 
        enforcement, military, homeland security, or other activities 
        relating to--
                  (A) the existence, organization, capabilities, plans, 
                intentions, vulnerabilities, means of finance or 
                material support, or activities of foreign or 
                international terrorist groups or individuals, or of 
                domestic groups or individuals involved in 
                transnational terrorism;
                  (B) threats posed by such groups or individuals to 
                the United States, United States persons, or United 
                States interests, or to those of other nations;
                  (C) communications of or by such groups or 
                individuals; or
                  (D) groups or individuals reasonably believed to be 
                assisting or associated with such groups or 
                individuals.
          (4) Network.--The term ``Network'' means the Information 
        Sharing Network described under subsection (c).
  (b) Findings.--Consistent with the report of the National Commission 
on Terrorist Attacks upon the United States, Congress makes the 
following findings:
          (1) The effective use of information, from all available 
        sources, is essential to the fight against terror and the 
        protection of our homeland. The biggest impediment to all-
        source analysis, and to a greater likelihood of ``connecting 
        the dots'', is resistance to sharing information.
          (2) The United States Government has access to a vast amount 
        of information, including not only traditional intelligence but 
        also other government databases, such as those containing 
        customs or immigration information. However, the United States 
        Government has a weak system for processing and using the 
        information it has.
          (3) In the period preceding September 11, 2001, there were 
        instances of potentially helpful information that was available 
        but that no person knew to ask for; information that was 
        distributed only in compartmented channels, and information 
        that was requested but could not be shared.
          (4) Current security requirements nurture over-classification 
        and excessive compartmentalization of information among 
        agencies. Each agency's incentive structure opposes sharing, 
        with risks, including criminal, civil, and administrative 
        sanctions, but few rewards for sharing information.
          (5) The current system, in which each intelligence agency has 
        its own security practices, requires a demonstrated ``need to 
        know'' before sharing. This approach assumes that it is 
        possible to know, in advance, who will need to use the 
        information. An outgrowth of the cold war, such a system 
        implicitly assumes that the risk of inadvertent disclosure 
        outweighs the benefits of wider sharing. Such assumptions are 
        no longer appropriate. Although counterintelligence concerns 
        are still real, the costs of not sharing information are also 
        substantial. The current ``need-to-know'' culture of 
        information protection needs to be replaced with a ``need-to-
        share'' culture of integration.
          (6) A new approach to the sharing of intelligence and 
        homeland security information is urgently needed. An important 
        conceptual model for a new ``trusted information network'' is 
        the Systemwide Homeland Analysis and Resource Exchange (SHARE) 
        Network proposed by a task force of leading professionals 
        assembled by the Markle Foundation and described in reports 
        issued in October 2002 and December 2003.
          (7) No single agency can create a meaningful information 
        sharing system on its own. Alone, each agency can only 
        modernize stovepipes, not replace them. Presidential leadership 
        is required to bring about governmentwide change.
  (c) Information Sharing Network.--
          (1) Establishment.--The President shall establish a trusted 
        information network and secure information sharing environment 
        to promote sharing of intelligence and homeland security 
        information in a manner consistent with national security and 
        the protection of privacy and civil liberties, and based on 
        clearly defined and consistently applied policies and 
        procedures, and valid investigative, analytical or operational 
        requirements.
          (2) Attributes.--The Network shall promote coordination, 
        communication and collaboration of people and information among 
        all relevant Federal departments and agencies, State, tribal, 
        and local authorities, and relevant private sector entities, 
        including owners and operators of critical infrastructure, by 
        using policy guidelines and technologies that support--
                  (A) a decentralized, distributed, and coordinated 
                environment that connects existing systems where 
                appropriate and allows users to share information among 
                agencies, between levels of government, and, as 
                appropriate, with the private sector;
                  (B) the sharing of information in a form and manner 
                that facilitates its use in analysis, investigations 
                and operations;
                  (C) building upon existing systems capabilities 
                currently in use across the Government;
                  (D) utilizing industry best practices, including 
                minimizing the centralization of data and seeking to 
                use common tools and capabilities whenever possible;
                  (E) employing an information access management 
                approach that controls access to data rather than to 
                just networks;
                  (F) facilitating the sharing of information at and 
                across all levels of security by using policy 
                guidelines and technologies that support writing 
                information that can be broadly shared;
                  (G) providing directory services for locating people 
                and information;
                  (H) incorporating protections for individuals' 
                privacy and civil liberties;
                  (I) incorporating strong mechanisms for information 
                security and privacy and civil liberties guideline 
                enforcement in order to enhance accountability and 
                facilitate oversight, including--
                          (i) multifactor authentication and access 
                        control;
                          (ii) strong encryption and data protection;
                          (iii) immutable audit capabilities;
                          (iv) automated policy enforcement;
                          (v) perpetual, automated screening for abuses 
                        of network and intrusions; and
                          (vi) uniform classification and handling 
                        procedures;
                  (J) compliance with requirements of applicable law 
                and guidance with regard to the planning, design, 
                acquisition, operation, and management of information 
                systems; and
                  (K) permitting continuous system upgrades to benefit 
                from advances in technology while preserving the 
                integrity of stored data.
  (d) Immediate Actions.--Not later than 90 days after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget, in consultation with the Executive Council, shall--
          (1) submit to the President and to Congress a description of 
        the technological, legal, and policy issues presented by the 
        creation of the Network described in subsection (c), and the 
        way in which these issues will be addressed;
          (2) establish electronic directory services to assist in 
        locating in the Federal Government intelligence and homeland 
        security information and people with relevant knowledge about 
        intelligence and homeland security information; and
          (3) conduct a review of relevant current Federal agency 
        capabilities, including--
                  (A) a baseline inventory of current Federal systems 
                that contain intelligence or homeland security 
                information;
                  (B) the money currently spent to maintain those 
                systems; and
                  (C) identification of other information that should 
                be included in the Network.
  (e) Guidelines and Requirements.--As soon as possible, but in no 
event later than 180 days after the date of the enactment of this Act, 
the President shall--
          (1) in consultation with the Executive Council, issue 
        guidelines--
                  (A) for acquiring, accessing, sharing, and using 
                information, including guidelines to ensure that 
                information is provided in its most shareable form, 
                such as by separating out data from the sources and 
                methods by which that data are obtained; and
                  (B) on classification policy and handling procedures 
                across Federal agencies, including commonly accepted 
                processing and access controls;
          (2) issue guidelines that--
                  (A) protect privacy and civil liberties in the 
                development and use of the Network; and
                  (B) shall be made public, unless, and only to the 
                extent that, nondisclosure is clearly necessary to 
                protect national security; and
          (3) require the heads of Federal departments and agencies to 
        promote a culture of information sharing by--
                  (A) reducing disincentives to information sharing, 
                including overclassification of information and 
                unnecessary requirements for originator approval; and
                  (B) providing affirmative incentives for information 
                sharing, such as the incorporation of information 
                sharing performance measures into agency and managerial 
                evaluations, and employee awards for promoting 
                innovative information sharing practices.
  (f) Enterprise Architecture and Implementation Plan.--Not later than 
270 days after the date of the enactment of this Act, the Director of 
Management and Budget shall submit to the President and to Congress an 
enterprise architecture and implementation plan for the Network. The 
enterprise architecture and implementation plan shall be prepared by 
the Director of Management and Budget, in consultation with the 
Executive Council, and shall include--
          (1) a description of the parameters of the proposed Network, 
        including functions, capabilities, and resources;
          (2) a delineation of the roles of the Federal departments and 
        agencies that will participate in the development of the 
        Network, including identification of any agency that will build 
        the infrastructure needed to operate and manage the Network (as 
        distinct from the individual agency components that are to be 
        part of the Network), with the delineation of roles to be 
        consistent with--
                  (A) the authority of the National Intelligence 
                Director under this Act to set standards for 
                information sharing and information technology 
                throughout the intelligence community; and
                  (B) the authority of the Secretary of Homeland 
                Security and the role of the Department of Homeland 
                Security in coordinating with State, tribal, and local 
                officials and the private sector;
          (3) a description of the technological requirements to 
        appropriately link and enhance existing networks and a 
        description of the system design that will meet these 
        requirements;
          (4) an enterprise architecture that--
                  (A) is consistent with applicable laws and guidance 
                with regard to planning, design, acquisition, 
                operation, and management of information systems;
                  (B) will be used to guide and define the development 
                and implementation of the Network; and
                  (C) addresses the existing and planned enterprise 
                architectures of the departments and agencies 
                participating in the Network;
          (5) a description of how privacy and civil liberties will be 
        protected throughout the design and implementation of the 
        Network;
          (6) objective, systemwide performance measures to enable the 
        assessment of progress toward achieving full implementation of 
        the Network;
          (7) a plan, including a time line, for the development and 
        phased implementation of the Network;
          (8) total budget requirements to develop and implement the 
        Network, including the estimated annual cost for each of the 5 
        years following the date of the enactment of this Act; and
          (9) proposals for any legislation that the Director of 
        Management and Budget determines necessary to implement the 
        Network.
  (g) Director of Management and Budget Responsible for Information 
Sharing Across the Federal Government.--
          (1) Additional duties and responsibilities.--
                  (A) In general.--The Director of Management and 
                Budget, in consultation with the Executive Council, 
                shall--
                          (i) implement and manage the Network;
                          (ii) develop and implement policies, 
                        procedures, guidelines, rules, and standards as 
                        appropriate to foster the development and 
                        proper operation of the Network; and
                          (iii) assist, monitor, and assess the 
                        implementation of the Network by Federal 
                        departments and agencies to ensure adequate 
                        progress, technological consistency and policy 
                        compliance; and regularly report the findings 
                        to the President and to Congress.
                  (B) Content of policies, procedures, guidelines, 
                rules, and standards.--The policies, procedures, 
                guidelines, rules, and standards under subparagraph 
                (A)(ii) shall--
                          (i) take into account the varying missions 
                        and security requirements of agencies 
                        participating in the Network;
                          (ii) address development, implementation, and 
                        oversight of technical standards and 
                        requirements;
                          (iii) address and facilitate information 
                        sharing between and among departments and 
                        agencies of the intelligence community, the 
                        Department of Defense, the Homeland Security 
                        community and the law enforcement community;
                          (iv) address and facilitate information 
                        sharing between Federal departments and 
                        agencies and State, tribal and local 
                        governments;
                          (v) address and facilitate, as appropriate, 
                        information sharing between Federal departments 
                        and agencies and the private sector;
                          (vi) address and facilitate, as appropriate, 
                        information sharing between Federal departments 
                        and agencies with foreign partners and allies; 
                        and
                          (vii) ensure the protection of privacy and 
                        civil liberties.
          (2) Appointment of principal officer.--Not later than 30 days 
        after the date of the enactment of this Act, the Director of 
        Management and Budget shall appoint, with approval of the 
        President, a principal officer in the Office of Management and 
        Budget whose primary responsibility shall be to carry out the 
        day-to-day duties of the Director specified in this section. 
        The officer shall report directly to the Director of Management 
        and Budget, have the rank of a Deputy Director and shall be 
        paid at the rate of pay payable for a position at level III of 
        the Executive Schedule under section 5314 of title 5, United 
        States Code.
  (h) Executive Council on Information Sharing.--
          (1) Establishment.--There is established an Executive Council 
        on Information Sharing that shall assist the Director of 
        Management and Budget in the execution of the Director's duties 
        under this Act concerning information sharing.
          (2) Membership.--The members of the Executive Council shall 
        be--
                  (A) the Director of Management and Budget, who shall 
                serve as Chairman of the Executive Council;
                  (B) the Secretary of Homeland Security or his 
                designee;
                  (C) the Secretary of Defense or his designee;
                  (D) the Attorney General or his designee;
                  (E) the Secretary of State or his designee;
                  (F) the Director of the Federal Bureau of 
                Investigation or his designee;
                  (G) the National Intelligence Director or his 
                designee;
                  (H) such other Federal officials as the President 
                shall designate;
                  (I) representatives of State, tribal, and local 
                governments, to be appointed by the President; and
                  (J) individuals who are employed in private 
                businesses or nonprofit organizations that own or 
                operate critical infrastructure, to be appointed by the 
                President.
          (3) Responsibilities.--The Executive Council shall assist the 
        Director of Management and Budget in--
                  (A) implementing and managing the Network;
                  (B) developing policies, procedures, guidelines, 
                rules, and standards necessary to establish and 
                implement the Network;
                  (C) ensuring there is coordination among departments 
                and agencies participating in the Network in the 
                development and implementation of the Network;
                  (D) reviewing, on an ongoing basis, policies, 
                procedures, guidelines, rules, and standards related to 
                the implementation of the Network;
                  (E) establishing a dispute resolution process to 
                resolve disagreements among departments and agencies 
                about whether particular information should be shared 
                and in what manner; and
                  (F) considering such reports as are submitted by the 
                Advisory Board on Information Sharing under subsection 
                (i)(2).
          (4) Inapplicability of federal advisory committee act.--The 
        Council shall not be subject to the requirements of the Federal 
        Advisory Committee Act (5 U.S.C. App.).
          (5) Reports.--Not later than 1 year after the date of the 
        enactment of this Act, and annually thereafter, the Director of 
        Management and Budget, in the capacity of Chair of the 
        Executive Council, shall submit a report to the President and 
        to Congress that shall include--
                  (A) a description of the activities and 
                accomplishments of the Council in the preceding year; 
                and
                  (B) the number and dates of the meetings held by the 
                Council and a list of attendees at each meeting.
          (6) Informing the public.--The Executive Council shall--
                  (A) make its reports to Congress available to the 
                public to the greatest extent that is consistent with 
                the protection of classified information and applicable 
                law; and
                  (B) otherwise inform the public of its activities, as 
                appropriate and in a manner consistent with the 
                protection of classified information and applicable 
                law.
  (i) Advisory Board on Information Sharing.--
          (1) Establishment.--There is established an Advisory Board on 
        Information Sharing to advise the President and the Executive 
        Council on policy, technical, and management issues related to 
        the design and operation of the Network.
          (2) Responsibilities.--The Advisory Board shall advise the 
        Executive Council on policy, technical, and management issues 
        related to the design and operation of the Network. At the 
        request of the Executive Council, or the Director of Management 
        and Budget in the capacity as Chair of the Executive Council, 
        or on its own initiative, the Advisory Board shall submit 
        reports to the Executive Council concerning the findings and 
        recommendations of the Advisory Board regarding the design and 
        operation of the Network.
          (3) Membership and qualifications.--The Advisory Board shall 
        be composed of no more than 15 members, to be appointed by the 
        President from outside the Federal Government. The members of 
        the Advisory Board shall have significant experience or 
        expertise in policy, technical and operational matters, 
        including issues of security, privacy, or civil liberties, and 
        shall be selected solely on the basis of their professional 
        qualifications, achievements, public stature and relevant 
        experience.
          (4) Chair.--The President shall designate one of the members 
        of the Advisory Board to act as chair of the Advisory Board.
          (5) Administrative support.--The Office of Management and 
        Budget shall provide administrative support for the Advisory 
        Board.
  (j) Reports.--
          (1) In general.--Not later than 1 year after the date of the 
        enactment of this Act, and semiannually thereafter, the 
        President through the Director of Management and Budget shall 
        submit a report to Congress on the state of the Network and of 
        information sharing across the Federal Government.
          (2) Content.--Each report under this subsection shall 
        include--
                  (A) a progress report on the extent to which the 
                Network has been implemented, including how the Network 
                has fared on the government-wide and agency-specific 
                performance measures and whether the performance goals 
                set in the preceding year have been met;
                  (B) objective systemwide performance goals for the 
                following year;
                  (C) an accounting of how much was spent on the 
                Network in the preceding year;
                  (D) actions taken to ensure that agencies procure new 
                technology that is consistent with the Network and 
                information on whether new systems and technology are 
                consistent with the Network;
                  (E) the extent to which, in appropriate 
                circumstances, all terrorism watch lists are available 
                for combined searching in real time through the Network 
                and whether there are consistent standards for placing 
                individuals on, and removing individuals from, the 
                watch lists, including the availability of processes 
                for correcting errors;
                  (F) the extent to which unnecessary roadblocks, 
                impediments, or disincentives to information sharing, 
                including the inappropriate use of paper-only 
                intelligence products and requirements for originator 
                approval, have been eliminated;
                  (G) the extent to which positive incentives for 
                information sharing have been implemented;
                  (H) the extent to which classified information is 
                also made available through the Network, in whole or in 
                part, in unclassified form;
                  (I) the extent to which State, tribal, and local 
                officials--
                          (i) are participating in the Network;
                          (ii) have systems which have become 
                        integrated into the Network;
                          (iii) are providing as well as receiving 
                        information; and
                          (iv) are using the Network to communicate 
                        with each other;
                  (J) the extent to which--
                          (i) private sector data, including 
                        information from owners and operators of 
                        critical infrastructure, is incorporated in the 
                        Network; and
                          (ii) the private sector is both providing and 
                        receiving information;
                  (K) where private sector data has been used by the 
                Government or has been incorporated into the Network--
                          (i) the measures taken to protect sensitive 
                        business information; and
                          (ii) where the data involves information 
                        about individuals, the measures taken to ensure 
                        the accuracy of such data;
                  (L) the measures taken by the Federal Government to 
                ensure the accuracy of other information on the Network 
                and, in particular, the accuracy of information about 
                individuals;
                  (M) an assessment of the Network's privacy and civil 
                liberties protections, including actions taken in the 
                preceding year to implement or enforce privacy and 
                civil liberties protections and a report of complaints 
                received about interference with an individual's 
                privacy or civil liberties; and
                  (N) an assessment of the security protections of the 
                Network.
  (k) Agency Responsibilities.--The head of each department or agency 
possessing or using intelligence or homeland security information or 
otherwise participating in the Network shall--
          (1) ensure full department or agency compliance with 
        information sharing policies, procedures, guidelines, rules, 
        and standards established for the Network under subsections (c) 
        and (g);
          (2) ensure the provision of adequate resources for systems 
        and activities supporting operation of and participation in the 
        Network; and
          (3) ensure full agency or department cooperation in the 
        development of the Network and associated enterprise 
        architecture to implement governmentwide information sharing, 
        and in the management and acquisition of information technology 
        consistent with applicable law.
  (l) Agency Plans and Reports.--Each Federal department or agency that 
possesses or uses intelligence and homeland security information, 
operates a system in the Network or otherwise participates, or expects 
to participate, in the Network, shall submit to the Director of 
Management and Budget--
          (1) not later than 1 year after the date of the enactment of 
        this Act, a report including--
                  (A) a strategic plan for implementation of the 
                Network's requirements within the department or agency;
                  (B) objective performance measures to assess the 
                progress and adequacy of the department or agency's 
                information sharing efforts; and
                  (C) budgetary requirements to integrate the agency 
                into the Network, including projected annual 
                expenditures for each of the following 5 years 
                following the submission of the report; and
          (2) annually thereafter, reports including--
                  (A) an assessment of the progress of the department 
                or agency in complying with the Network's requirements, 
                including how well the agency has performed on the 
                objective measures developed under paragraph (1)(B);
                  (B) the agency's expenditures to implement and comply 
                with the Network's requirements in the preceding year; 
                and
                  (C) the agency's or department's plans for further 
                implementation of the Network in the year following the 
                submission of the report.
  (m) Periodic Assessments.--
          (1) Comptroller general.--
                  (A) In general.--Not later than 1 year after the date 
                of the enactment of this Act, and periodically 
                thereafter, the Comptroller General shall evaluate the 
                implementation of the Network, both generally and, at 
                the discretion of the Comptroller General, within 
                specific departments and agencies, to determine the 
                extent of compliance with the Network's requirements 
                and to assess the effectiveness of the Network in 
                improving information sharing and collaboration and in 
                protecting privacy and civil liberties, and shall 
                report to Congress on the findings of the Comptroller 
                General.
                  (B) Information available to the comptroller 
                general.--Upon request by the Comptroller General, 
                information relevant to an evaluation under subsection 
                (a) shall be made available to the Comptroller General 
                under section 716 of title 31, United States Code.
                  (C) Consultation with congressional committees.--If a 
                record is not made available to the Comptroller General 
                within a reasonable time, before the Comptroller 
                General files a report under section 716(b)(1) of title 
                31, United States Code, the Comptroller General shall 
                consult with the Select Committee on Intelligence of 
                the Senate, the Permanent Select Committee on 
                Intelligence of the House of Representatives, the 
                Committee on Governmental Affairs of the Senate, and 
                the Committee on Government Reform of the House of 
                Representatives concerning the Comptroller's intent to 
                file a report.
          (2) Inspectors general.--The Inspector General in any Federal 
        department or agency that possesses or uses intelligence or 
        homeland security information or that otherwise participates in 
        the Network shall, at the discretion of the Inspector General--
                  (A) conduct audits or investigations to--
                          (i) determine the compliance of that 
                        department or agency with the Network's 
                        requirements; and
                          (ii) assess the effectiveness of that 
                        department or agency in improving information 
                        sharing and collaboration and in protecting 
                        privacy and civil liberties; and
                  (B) issue reports on such audits and investigations.
  (n) Authorization of Appropriations.--There are authorized to be 
appropriated--
          (1) $50,000,000 to the Director of Management and Budget to 
        carry out this section for fiscal year 2005; and
          (2) such sums as are necessary to carry out this section in 
        each fiscal year thereafter, to be disbursed and allocated in 
        accordance with the Network implementation plan required by 
        subsection (f).

                     COMMITTEE STATEMENT AND VIEWS

Purpose and summary

    H.R. 10, the 9/11 Recommendations Implementation Act, as 
reported by the House Committee on Government Reform, addresses 
the problems and weaknesses identified by the National 
Commission on Terrorist Attacks Upon the United States by 
authorizing improvements to the operations of the Federal 
government relating to intelligence and security. The 
legislation reported by the Committee included provisions 
within the jurisdiction of the Government Reform Committee that 
(1) re-authorize reorganization authority within the 
intelligence community; (2) improve agency planning regarding 
information security; (3) streamline the appointments process 
for intelligence community personnel; (4) revitalizes the 
Federal Bureau of Investigation workforce; (5) streamline 
security clearances and processes; (6) modernizes driver's 
licenses and improves ID security; and (7) improves information 
security.

Background and need for legislation

    H.R. 10 was introduced on September 24, 2004, by House 
Speaker J. Dennis Hastert, to address the problems and 
weaknesses identified by the National Commission on Terrorist 
Attacks Upon the United States by authorizing improvements to 
the operations of the Federal government relating to 
intelligence and security. The legislation, the culmination of 
the bipartisan 9/11 Commission report and Congress's own recent 
oversight work, creates a new National Intelligence Director, a 
National Counterterrorism Center, a Joint Intelligence 
Community Council and makes other comprehensive reforms to the 
organization of the Intelligence Community. The following 
paragraphs elaborate on the importance of some of the 
provisions in H.R. 10 that are within the jurisdiction of the 
Government Reform Committee.
    Reorganization Authority. This legislation includes a 
section reauthorizing executive reorganization authority for 
the intelligence community. The rationale for this language is 
straightforward: even if Congress succeeds in creating a 
National Intelligence Director and a National Counter Terrorism 
Center, future modifications to our intelligence community's 
organization are inevitable. The NID and NCTC, while critically 
important steps, are not a panacea--and Congress, 
unfortunately, is likely only to act again in the event of 
another crisis.
    The Government Reform Committee has been looking 
extensively at government organization challenges. Part and 
parcel of moving from a system of ``need to know'' to ``need to 
share'' is the need to restructure the Executive Branch to 
match 21st Century needs and requirements. The 9/11 Commission 
rightly recognized that we need a government better organized 
than the one that exists today, with its national security 
institutions designed half a century ago to win the Cold War.
    The Commission's report makes the need for reauthorization 
of Executive Reorganization Authority all the more urgent. The 
obsolete and redundant nature of the federal bureaucracy is the 
single greatest impediment to moving from a system of ``need to 
know'' to ``need to share.''
    No discussion of impediments to effective information 
sharing can be complete without discussing the need to 
reorganize the Executive Branch.
    This Committee has held several hearings on the need to 
reauthorize the Executive Reorganization Authority, which 
expired in 1984. The authority existed off an on for a period 
of fifty years, giving Presidents the ability to submit 
Executive Branch reorganization proposals to the Congress for a 
guaranteed, up or down vote. In doing so, Executive Branch 
reorganizations could come before Congress without getting 
buried in the congressional committee jurisdictional turf 
battles that have spelled the demise of many governmental 
reorganization proposals in recent history.
    We need look no further than the deliberations that led to 
the creation of the Homeland Security Department for evidence 
that Congress is not terribly well-equipped to tackle 
organizational challenges: too much turf, too many egos, too 
much time. As hearings held by this Committee over the past two 
years have shown, this same problem of poor organization exists 
in federal food safety oversight, federal child welfare 
programs, and multiple homeland security functions. 
Reauthorization of executive reorganization authority is the 
surest, most effective manner of proactively responding to 
organizational challenges.
    As the Commission's report says, ``We recommend significant 
changes in the organization of the government. We know that the 
quality of the people is more important than the quality of the 
wiring diagrams. * * * Good people can overcome bad structures. 
They should not have to.'' (page 399)
    Information Security and Information Sharing. As a nation, 
we must be able to identify terrorist threats and defeat them. 
Our success depends on collecting, analyzing, and appropriately 
sharing information found in databases, transactions, and other 
sources. The 9/11 Commission report made clear what the 
Government Reform Committee already knew; there is a lack of 
information sharing and analysis among the relevant public and 
private sector parties. In the period preceding September 11th, 
there were instances of potentially helpful information that 
was available but that no person knew to ask for; information 
that was distributed only in compartmented channels, and 
information that was requested but could not be shared. H.R. 10 
requires the President to establish a trusted information 
network and secure information-sharing environment (the 
``Network'') to promote the sharing of intelligence and 
homeland security information in a manner consistent with 
national security and the protection of privacy and civil 
liberties. It is absolutely critical to our national security 
that the federal government maintains secure information 
systems. The legislation requires agencies to include 
information security as a requirement for systems planning and 
acquisition by agencies. H.R. 10 would also provide OMB greater 
authority in guiding agencies on information security issues.
    Streamlining the Appointments Process. This legislation 
seeks to improve the Presidential appointment process--without 
violating the spirit or letter of the conflict of interest 
laws--and allow a newly elected President to submit nominations 
to the Senate for Presidential appointments to National 
Security-related positions as expeditiously as possible. The 
Presidential appointments process is unnecessarily long, 
burdensome and complex. When it comes to national security 
appointments, the need to accelerate the process is even more 
pressing.
    This legislation streamlines the financial disclosure 
requirements for national security appointments, in keeping 
with a 9/11 Commission recommendation. ``Since a catastrophic 
event could occur with little or no notice, we should minimize 
as much as possible the disruption of national security 
policymaking during the change of administrations by 
accelerating the process for national security appointments.'' 
(page 422)
    The current appointments process is riddled with 
duplicative and unnecessary paperwork, resulting in reporting 
requirements that are onerous enough to discourage many 
potential appointees, and sufficiently burdensome to keep 
appointees busy for weeks trying to come into compliance.
    Addressing this issue through a Sense of Congress--which 
some are attempting to do--is not enough; Congress is the 
problem. This legislation authorizes real reforms to expedite 
the appointments process for individuals appointed to national 
security positions (rather than a blanket statement that the 
process is in need of repair).
    High-level executive branch employees have been required 
since 1978 to file financial disclosure reports in connection 
with their entrance into government, and thereafter on an 
annual basis. This is an important element of an accountable, 
transparent government, free of conflicts of interest. But in 
recent years, various aspects of the appointment process have 
been criticized as unnecessarily difficult and slow--and, 
especially in the national security realm, slow is not an 
option.
    Nearly a dozen major studies since the mid-1980s have made 
the case that the wide range of paperwork required by the 
different offices involved in vetting the President's executive 
branch nominees needs to be condensed into standardized forms. 
In addition, many of these studies have concluded that the 
financial disclosure requirements for these positions should be 
streamlined. A survey conducted by the Presidential Appointee 
Initiative of senior level appointees from the Reagan, George 
H. W. Bush and Clinton Administrations showed that in each 
successive administration, appointees found the existing 
financial disclosure requirements increasingly burdensome and 
difficult to meet.
    Others agreed that the current requirements seek more 
information than necessary to determine whether conflicts exist 
for executive branch employees. In testimony before the Senate 
Governmental Affairs Committee, Scott Harshbarger of Common 
Cause stated, ``The disclosure form needs to contain all the 
information necessary to identify potential conflicts. It does 
not need to be a net worth statement.''
    Toward that end, H.R. 10 simplifies financial disclosure 
reporting for national security appointees by substantially 
reducing the amount of detail these appointees must provide 
regarding their sources of income, assets and liabilities--
while requiring more than enough information to make sure that 
potential conflicts of interest can be identified. To 
reiterate, the changes--which include raising the minimum 
thresholds for reporting, lowering the top valuation categories 
and reducing the number of categories overall--return the focus 
to using the forms for conflict of interest determinations 
rather than as statements of net worth.
    Revitalizing the Federal Bureau of Investigation Workforce. 
The 9/11 Commission recommends ``a specialized and integrated 
national security workforce should be established at the FBI 
consisting of agents, analysts, linguists and surveillance 
specialists who are recruited, trained, rewarded and retained 
to ensure the development of an institutional culture imbued 
with a deep expertise in intelligence and national security.'' 
(page 425)
    While the FBI has already begun making reforms to bolster 
its intelligence gathering and analysis capabilities, H.R. 10 
includes language that provides the personnel flexibilities and 
benefits needed to recruit, retain and reward the best and 
brightest FBI agents, including intelligence analysts.
    The growing problem of recruiting, hiring and keeping 
talented individuals within the FBI has been a concern of the 
Committee for some time. This situation will only grow worse if 
nothing is done to improve the FBI's personnel problems while 
simultaneously asking the Bureau to re-organize itself and do 
more to protect national security. This legislation offers a 
solution that meets both the goals of the Commission and the 
challenges identified by the Committee's previous work in this 
matter.
    Specifically, the legislation allows the agency to offer 
bonuses to hire and keep key employees; increase salaries for 
personnel in critical intelligence positions; delay mandatory 
retirements; and create a Reserve Service so the agency could 
activate retired employees with specialized skills. The latter 
provision would allow the FBI to bring back as many as 500 
retirees in times of crisis and allow the retirees to collect a 
salary while continuing to receive their pensions.
    Identification Security. The Commission's report urges the 
federal government to set standards for the issuance of birth 
certificates and other forms of identification, such as 
driver's licenses, and to task the Department of Homeland 
Security with improving identification security. In 
recommending that the United States establish a secure 
identification system, the 9/11 Commission noted: ``All but one 
of the 9/11 hijackers acquired some form of U.S. identification 
document, some by fraud. Acquisition of these forms of 
identification would have assisted them in boarding commercial 
flights, renting cars, and other necessary activities.'' (page 
390) Better identification security, including minimum data and 
standards will ensure that a person who presents a form of 
identification is the person identified on that document.
    ``Fraud in identification of documents is no longer just a 
problem of theft. At many entry points to vulnerable 
facilities, including gates for boarding aircraft, sources of 
identification are the last opportunity to ensure that people 
are who they say they are and to check whether they are 
terrorists.'' (Commission recommendation, page 390)
    A secure system of identification will have two effects on 
terrorist activities. First, it will make it more difficult for 
a terrorist to obtain an identity document by fraud. Thus, a 
terrorist will not be able to conceal his true identity to 
board commercial aircraft, enter federal facilities, transfer 
funds to a U.S. bank account, or other activities that may 
require identification. Second, terrorists will be forced to 
use (like many of the 9/11 hijackers did anyway) their real 
identities. As a result, law enforcement and intelligence 
officials are far more likely to be able to detect their 
activity before an attack.
    Most Americans use their state driver's license as their 
primary form of identification. H.R. 10 would establish a more 
secure system for issuing driver's licenses and other forms of 
state identification documents for use in connection with 
federal benefits and activities. Under the legislation, a state 
driver's license or identification card that does not meet 
specified standards for data, source documents, and security, 
will not be accepted for federal purposes. For a state driver's 
license or identification card to be acceptable for federal 
purposes, an issuing state must obtain and verify proof of 
identity, lawful presence in the United States, residence, and 
possession of only one license.
    States must also maintain databases of driver 
identification information, retain documents used to establish 
identity, and share data with other states. The legislation 
would also require the establishment of security features for 
birth and death records and the sharing of those records.
    Streamlining Security Clearances and Processes. Among the 
9/11 Commission's recommendations is specific guidance 
regarding the granting and maintenance of the security 
clearances the Government relies upon to control access to 
sensitive information. The Government Reform Committee has held 
hearings on, and previously drafted legislation, to address 
security clearance backlog and reciprocity issues. Now, the 
Committee has drafted Subtitle F of Title V in the ``9/11 
Recommendations Implementation Act'' to address the serious 
problems facing the U.S. Federal security clearance system.
    In the wake of 9/11, the demand for security clearances for 
both government and industry personnel has dramatically 
increased. Unfortunately, the government mechanisms that 
investigate and adjudicate clearances have not kept pace with 
the necessity to process clearance requests quickly and 
effectively. Both government and industry personnel face 
additional challenges once they have a security clearance from 
one agency but then need to work on a project on behalf of a 
different agency; often, agencies do not recognize clearances 
granted by a sister agency, requiring personnel to go through 
the process yet again.
    This is an obstacle to coordination and information sharing 
among national security agencies. As a result, the Government 
does not utilize its human capital resources in the most 
effective manner and many defense contractor companies are 
unable to hire otherwise qualified employees because the 
security clearance process is requiring, on average, over a 
year to complete. All signs point to even longer delays if 
action is not taken. Defense contractor companies often rely on 
hiring, almost always at a premium, already cleared employees 
from other firms, thereby increasing costs, which are then 
passed on to the taxpayer. Ultimately, these backlogs threaten 
national security by limiting the availability of quality 
personnel able to work in the national security arena.
    The 9/11 Report calls for a single federal agency to be, 
``responsible for providing and maintaining security 
clearances, insuring uniform standards--including uniform 
security questionnaires and financial report requirements, and 
maintaining a single database.'' (page 422) It goes on to 
stipulate that the National Intelligence Director (NID) be able 
to ``set personnel policies to establish standards for 
education and training and facilitate assignments at the 
national intelligence centers and across agency lines''. (page 
414) It also directs the NID to ``set information sharing and 
information technology policies to maximize data sharing, as 
well as policies to protect the security of information''. 
(page 414) Finally, the 9/11 Report calls for Presidential 
transition procedures that ``work more effectively and allow 
new officials to assume their new responsibilities as quickly 
as possible.'' (page 422)
    It is worth noting that, while the 9/11 Report addresses 
security clearance issues only within the context of its 
recommendation on improving Presidential transitions, it is 
most appropriate to address this important national security 
issue in its own right. To that end, H.R. 10 assigns the Deputy 
National Intelligence Director for Community Management and 
Resources responsibility for daily oversight of security 
clearance policy, the establishment of uniform investigative 
and adjudicative standards, and the enforcement of reciprocity. 
This will ensure that security clearance issues receive the 
attention they are due by placing them firmly within the chain 
of command established by Title I of the ``9/11 Recommendations 
Implementation Act''. It will also lodge responsibility for 
enforcing reciprocity, not within a pre-existing intelligence 
community agency with its own interests and prejudices, but 
within the office of the NID where it belongs. The problem of 
enforcing reciprocity is one of mediating between agencies with 
different corporate cultures. Therefore, simply assigning one 
of these agencies to enforce reciprocity will only serve to 
exacerbate the problem.
    Furthermore, the ``9/11 Recommendations Implementation 
Act'' will address the specific concerns of the 9/11 Report 
enumerated above in a number of ways. First, it ensures 
consistency of procedures and standards (Sec. 5072), including 
uniform questionnaires, financial reporting requirements and 
polygraph procedures for all security clearance applicants. 
Second, it mandates reciprocity (Sec. 5073) and, through the 
creation of a single database to track granted clearances and 
other pertinent information, enhances information sharing and a 
``need-to-share'' mindset while effectively incentivizing 
reciprocity (Sec. 5074). H.R. 10 is also consistent with the 
recommendations of the 9/11 Report in that it mandates the use 
of available technology to enhance clearance investigations and 
secure national secrets (Sec. 5075), while facilitating the 
most effective use of human capital across agency lines. It 
establishes specific performance goals for the reduction of the 
time required to conduct security clearance investigations and 
adjudicate access to classified material (Sec. 5076). Finally, 
H.R. 10 addresses the Presidential transition concerns of the 
9/11 Report by requiring the President-elect to submit the 
names of candidates for high-level national security positions 
to the NID after the general election so that the NID may 
expedite their clearance procedures, thereby ensuring they are 
able to assume their new responsibilities as quickly as 
possible (Sec. 5077).
    In these ways, the ``9/11 Recommendations Implementation 
Act'' will streamline the Federal security clearance 
investigative and adjudicative process, clearing up the 
bottleneck that has become increasingly dangerous in the post-
9/11 world.

Legislative history

    H.R. 10, the 9/11 Recommendations Implementation Act, was 
introduced on September 24, 2004, by House Speaker J. Dennis 
Hastert, along with 16 consponsors: Reps. Roy Blunt (R-MO); 
John Boehner (R-OH); Chris Cox (R-CA); Tom Davis (R-VA); Tom 
DeLay (R-TX); David Dreier (R-CA); Peter Hoekstra (R-MI); 
Duncan Hunter (R-CA); Henry Hyde (R-IL); Jim Nussle (R-IA); 
Michael Oxley (R-OH); Deborah Pryce (R-OH); James Sensenbrenner 
(R-WI); Chris Smith (R-NJ); William Thomas (R-CA); and Bill 
Young (R-FL). The bill was referred to the Committee on 
Intelligence (Permanent Select), and in addition to the 
Committees on ArmedServices, Education and the Workforce, 
Energy and Commerce, Financial Services, Government Reform, 
International Relations, the Judiciary, Rules, Science, Transportation 
and Infrastructure, Ways and Means, and Homeland Security (Select), for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
committee concerned. On September 29, 2004, the bill was agreed to by 
voice vote and ordered to be reported favorably, with amendments, by 
the House Government Reform Committee.

                           SECTION-BY-SECTION

    The only sections described in this section are those 
sections (or in some cases subsections of sections) of H.R. 10 
that fall within the jurisdiction of the House Committee on 
Government Reform.

Sec. 1011. Reorganization and improvement of management of intelligence 
        community

    Subsection (a) of this section would add a new section 102A 
to the National Security Act of 1947 (50 U.S.C. 402 et seq.) 
that would, among other things, authorize the National 
Intelligence Director to issue regulations to provide 
incentives to the personnel of the elements of the intelligence 
community to serve on the staff of the National Intelligence 
Director, the national intelligence centers, and the National 
Counterterrorism Center, and to facilitate the rotation of 
personnel through the various elements of the intelligence 
community.

Sec. 1016. Executive schedule matters

    This section would add the National Intelligence Director 
to the list of Executive Schedule I positions, and the Deputy 
National Intelligence Director and the Director of the National 
Counterterrorism Center to the list of Executive Schedule II 
positions. This section would also strike the references to the 
Assistance Directors of Central Intelligence from the list of 
Executive Schedule IV positions.

Sec. 1052. Improvements to the National Flagship Language Initiative

    Subsection (b) of this section would amend section 802(i) 
of the David L. Boren National Security Education Act of 1991 
(50 U.S.C. 1902(i)) to add a requirement that employees must 
enter into service agreements in order to take part in training 
program authorized by the Act.

Sec. 1056. Pilot project for Civilian Linguist Reserve Corps

    This section would authorize a three year pilot project to 
establish a Civilian Linguist Reserve Corps comprised of United 
States citizens with advanced levels of proficiency in foreign 
languages who would be available upon a call of the President 
to perform such service or duties with respect to such foreign 
languages in the Federal Government as the President may 
specify.

Sec. 1061. Permanent extension of Central Intelligence Agency voluntary 
        separation incentive program

    This section would permanently extend the Central 
Intelligence Agency voluntary separation incentive program.

Sec. 1062. National Security Agency Emerging Technologies Panel

    This section would provide an exemption from the Federal 
Advisory Committee Act for the National Security Agency 
Emerging Technologies Panel.

Sec. 1080. Application of other laws

    This section would add employees of the Office of the 
National Intelligence Director to the list of employees that 
are prohibited from participating in political activities. It 
would also authorize the NID to not disclose to the Secretary 
of State gifts received from foreign entities if disclosure 
would adversely affect U.S. intelligence sources. Finally, this 
section would add the Office of the National Intelligence 
Director to the list of offices and agencies covered by section 
105(a)(1) of the Ethics in Government Act.

Sec. 2121. Bureau of Engraving and Printing security printing

    This section would authorize procurement guidelines for the 
Bureau of Engraving and Printing.

Sec. 3051. Definitions

    This section would provide definitions for the terms 
``driver's license,'' ``identification card,'' ``Secretary,'' 
and ``State,'' for the purposes of sections 3051 through 3056.

Sec. 3052. Minimum document requirements and issuance standards for 
        Federal recognition

    This section would require that, for a state driver's 
license or identification card to be acceptable for federal 
purposes, States must certify to the Secretary of Homeland 
Security, within 3 years, that they have met specified 
standards for data elements, source documents, and security. 
This section would also prohibit States from providing a 
driver's license to an applicant holding a driver's license 
issued by another State without confirmation from the other 
State that the individual is terminating or has terminated the 
driver's license. Finally, this section would require an 
applicant require proof of legal presence in order to obtain a 
driver's license or identification card.

Sec. 3053. Linking of databases

    This section would require that all States participate in 
the Driver License Agreement interstate compact to ensure 
States have access to the information contained in the motor 
vehicle databases of all other States. This section would also 
set forth minimum requirements for the information contained in 
such databases.

Sec. 3054. Trafficking in authentication features for use in false 
        identification documents

    This section would amend Title 18 to make it a federal 
crime to traffic in or use security features designed to 
prevent tampering, counterfeiting, or duplication of identity 
documents.

Sec. 3055. Grants to States

    This section would authorize, for Fiscal Years 2005 through 
2009, the Secretary of the Department of Homeland Security to 
issue grants to States to fulfill the minimum requirements set 
forth in this subtitle.

Sec. 3056. Authority

    This provision would require the Secretary of Homeland 
Security to establish minimum standards required to permit 
federal employees to accept state drivers' licenses and 
personal identification cards.

Sec. 3061. Definitions

    This section would provide definitions for the terms 
``birth certificate,'' ``registrant,'' and ``State,'' for the 
purposes of sections 3061 through 3067.

Sec. 3062. Applicability of minimum standards to local governments

    This section would clarify that all minimum standards set 
forth in Subtitle II apply to the issuance of birth 
certificates by the State and local government entities within 
that State.

Sec. 3063. Minimum standards for Federal recognition

    This section would require that, for a birth certificate to 
be acceptable for federal purposes, States must certify to the 
Secretary of Homeland Security, within 3 years, that they have 
met specified standards for information and security.

Sec. 3064. Establishment of electronic birth and death registration 
        systems

    This section would direct the Secretary, with the 
concurrence of the Secretary of Health and Human Services and 
the Commissioner of Social Security, to work with the States to 
establish standards for electronic birth and death registration 
systems in the States.

Sec. 3065. Electronic verification of vital events

    This section would establish the Secretary as the lead in 
the implementation of electronic verification of vital events. 
The Secretary is given authority to issue regulations in the 
establishment and implementation of the system.

Sec. 3066. Grants to States

    This section would authorize, for Fiscal Years 2005 through 
2009, the Secretary of the Department of Homeland Security to 
issue grants to States to fulfill the minimum requirements set 
forth in this subtitle.

Sec. 3067. Authority

    This section would authorize the Secretary of the 
Department of Homeland Security, with the concurrence of the 
Secretary of Health and Human Services and in consultation with 
the States, to issue regulations, certify standards, issue 
grants and provide an extension to the deadlines set forth in 
this subtitle.

Sec. 5003. Faster and smarter funding for first responders

    Subsection (a)(2) of this section would add a new title to 
Public Law 107-296 that would, among other things, establish a 
Task Force on Essential Capabilities for First Responders that 
would be subject to the Federal Advisory Committee Act.

Sec. 5021. Authorization of intelligence community reorganization plans

    This section would reauthorize the President's authority to 
submit executive branch reorganization plans to Congress for a 
guaranteed, up or down vote, but limits such plans to cover 
only the elements of the intelligence community rather than 
authorizing the authority government-wide.

Sec. 5025. Responsibilities of Counternarcotics Office

    This section would amend 6 U.S.C. 458 to, among other 
things, authorize the Director of the Office of National Drug 
Control Policy to appoint the Director of the Office of 
Counternarcotics Enforcement as the United States Interdiction 
Coordinator.

Sec. 5026. Use of counternarcotics enforcement activities in certain 
        employee performance appraisals

    This section would add a new section to subtitle E of title 
VII of Public Law 107-296 that would require certain 
subdivisions of the Department of Homeland Security to include 
counternarcotics enforcement activities in employee performance 
appraisals.

Sec. 5031. Amendments to Clinger-Cohen provisions to enhance agency 
        planning for information security needs

    This section would require agencies to include cyber 
security as a requirement for systems planning and acquisition 
by agencies.

Sec. 5041. Appointments to national security positions

    This section would authorize the President to appoint 
individuals to executive schedule IV and V national security 
positions regardless of whether or not the positions require 
Senate confirmation in statute. This section would also 
authorize the President to appoint individuals to executive 
schedule II and III national security positions that require 
Senate confirmation if the Senate fails to act on the 
nomination within thirty legislative days after submission of 
the nomination to the Senate.

Sec. 5042. Presidential inaugural transitions

    This section would the statute governing presidential 
transitions.

Sec. 5043. Public financial disclosure for the intelligence community

    This section would expedite and streamline the public 
financial disclosure requirements for intelligence personnel 
while maintaining sufficient reporting to ensure that the 
existence of conflicts of interest can be determined. This 
section reduces the amount of detail a covered employee must 
report regarding financial interests, while authorizing the 
Office of Government Ethics or the employing department to 
require the individual to provide additional information needed 
to complete the form or perform a conflict of interest 
analysis.

Sec. 5044. Reduction of positions requiring appointment with Senate 
        confirmation

    This section would require all agency heads to report to 
the President and the Congress the number of positions within 
that agency that require Senate confirmation.

Sec. 5045. Effective dates

    This section would explain that section 5043 will take 
effect on January 1 of the year following date of enactment of 
the Act, or July 1 of the following year if the legislation 
gets enacted after July 1 of the previous year.

Sec. 5051. Mandatory separation age

    This section would amend title 5, United States Code, to 
allow the Director of the FBI to, on a limited basis, delay the 
mandatory retirement age of individual FBI agents until the 
agent reaches 65 years of age. This authority would expire on 
December 31, 2009.

Sec. 5052. Retention and relocation bonuses

    This section would amend Chapter 57 of Title 5, United 
States Code, to authorize the Director of the Federal Bureau of 
Investigation, after consultation with the Director of the 
Office of Personnel Management and the completion of a service 
agreement signed by the employee, to pay an employee a bonus, 
which cannot exceed 50 percent of the annual rate of basic pay 
of the employee as of the beginning of the period of service 
multiplied by the number of years in the required period of 
service of the employee involved, but shall in no event exceed 
100 percent of the annual rate of basic pay of the employee as 
of the beginning of the service period. This section would also 
prohibit retention and relocation bonuses from being paid to 
political appointees.

Sec. 5053. Federal Bureau of Investigation Reserve Service

    This section would authorize the Director to establish an 
FBI Reserve Service that would facilitate streamlined, 
temporary re-hire from a pre-certified cadre of retired FBI 
employees who possess specialized skills required to deal with 
the demands of crisis and other special situations without 
adversely impacting their retirement pay.

Sec. 5054. Critical positions in the Federal Bureau of Investigation 
        intelligence directorate

    This section would amend Title 5 to include positions in 
the new FBI Intelligence Directorate--if they are determined to 
be of an extremely high level in a scientific, technical, 
professional, or administrative field, and critical to the 
FBI's successful accomplishment of an important mission--as 
critical positions. This authority would allow the FBI, in 
conjunction with the Office of Management and Budget and the 
Office of Personnel Management, to fix pay for that position up 
to Executive Schedule I.

Sec. 5061. Reporting requirement

    This section would require the President to submit a report 
to Congress within six months after the date of enactment of 
this Act, on the following: the hiring policies of the federal 
government with respect to its foreign language needs and the 
war on terrorism; the current workforce capabilities of the 
relevant federal agencies regarding foreign language needs and 
the war on terrorism; shortfalls in workforce capabilities with 
respect to the war on terrorism; and any specific plans to 
eliminate the aforementioned shortfalls.

Sec. 5071. Definitions

    This section would define ``Director'' as the National 
Intelligence Director. However, it is assumed throughout the 
legislation that the Deputy National Intelligence Director for 
Community Management and Resources will be acting for the NID 
in most cases regarding security clearance issues.

Sec. 5072. Security clearance and investigative programs oversight and 
        administration

    This section would detail the responsibilities and 
authority of the Deputy NID for Community Management and 
Resources vis-a-vis security clearance policy. The 
responsibilities and authorities would include: daily oversight 
of these issues government-wide; the establishment of uniform 
investigative and adjudicative procedures, application 
questionnaires and requirements; the power to designate 
authorized investigative and adjudicative agencies; enforcing 
reciprocity; and developing new resources and methods.

Sec. 5073. Reciprocity of security clearance and access determinations

    This section would establish in statute, for the first 
time, the unequivocal mandate of reciprocal recognition of 
security clearances government-wide. It would also explicitly 
prohibit the establishment of additional requirements or the 
use of duplicative investigations by agencies that try to 
inhibit access to classified information by personnel with the 
appropriate level of clearance.

Sec. 5074. Establishment of national database

    First, this section would facilitate information sharing 
and reduce backlog by consolidating all information about 
cleared personnel government-wide into a single database 
accessible to all national security agencies. Second, agency 
participation in contributing information to this database 
would serve as the means by which the NID could threaten to de-
certify authorized investigative and adjudicative agencies, 
thereby enforcing the reciprocity requirement.

Sec. 5075. Use of available technology in clearance investigations

    This section would make provision for the use of the latest 
technology in investigating, adjudicating, and maintaining 
security clearances. This would include the development of a 
system that would provide continuous monitoring of cleared 
personnel in order to spot developing trends that may 
compromise the security of government information before they 
become a problem.

Sec. 5076. Reduction in length of personnel security clearance process

    This section would establish a performance goal of 60 days 
for granting a security clearance (40 days for an investigation 
and 20 days for adjudication) over a phase-in period of 5 
years. It would also establish an interim benchmark of 120 days 
from application to adjudication to be reached within 2 years 
of enactment.

Sec. 5077. Security clearances for presidential transition

    This section would address the specific recommendation of 
the 9/11 Report that security clearances be expedited for 
Presidential transition teams. It would mandate an adjudication 
decision for personnel whose names are submitted by the 
President-elect by the date of the general election.

Sec. 5078. Reports

    This section would require the NID to submit annually a 
report to the appropriate committees of Congress on agency 
progress toward meeting the performance goals laid out in 
Section 5076. The report would also provide recommendations for 
improvement.

Sec. 5092. Chief privacy officers for agencies with law enforcement or 
        anti-terrorism functions

    This section would establish within each federal agency 
with law enforcement or antiterrorism functions a chief privacy 
officer, designated by the head of the agency, with primary 
responsibility over privacy policy within that agency.

Sec. 5134. Information sharing

    This section would direct the President to establish a 
trusted information network and secure information-sharing 
environment (the ``Network'') to promote the sharing of 
intelligence and homeland security information in a manner 
consistent with national security and the protectionof privacy 
and civil liberties. The section would outline the required attributes 
of the Network, including that it would be decentralized and would 
allow information sharing horizontally across agencies, vertically 
between levels of government and, as appropriate, with the private 
sector; build on existing systems capabilities; incorporate protections 
for privacy and civil liberties; and, to enhance accountability and 
facilitate oversight, employ authentication, access controls, audit 
capabilities and other mechanisms. This section would require that 
within 90 days, the Director of the Office of Management and Budget 
(OMB), in consultation with the Executive Council established below, 
would have to: submit to the President and Congress a description of 
the technological, legal, and policy issues presented by creation of 
the Network and how these will be addressed; establish electronic 
directory services to assist in locating relevant people and 
information; and conduct a baseline review of current federal agency 
information sharing capabilities. Within 180 days, this section would 
direct the President to: issue guidelines for acquiring, accessing, 
sharing, and using terrorism information; issue guidelines to protect 
privacy and civil liberties in the development and use of the Network; 
require federal agencies to promote a culture of information sharing 
through greater incentives and reduced disincentives for information 
sharing. This section would require that within 270 days, the Director 
of OMB, in consultation with the Executive Council, would have to 
prepare and submit to the President and Congress an Enterprise 
Architecture and Implementation plan. The plan would include: a 
description of the functions, capabilities and resources of the 
proposed Network; a delineation of the roles of the federal agencies 
that are to participate in the development of the Network; a 
description of the system design that will meet the technological 
requirements to link and enhance existing networks; an enterprise 
architecture; a description of how privacy and civil liberties will be 
protected in the design and implementation of the Network; a plan and 
time line for the development and implementation of the Network; 
budgetary requirements; and proposals for any legislation that the 
Director of OMB believes to be necessary to implement the Network. This 
section would give the Director of OMB the responsibility, in 
consultation with the Executive Council, for implementing and managing 
the Network; developing policies and guidelines to foster the 
development and proper operation of the Network; and assisting, 
monitoring and assessing the implementation of the Network by 
individual departments and agencies. The Director of OMB, within 30 
days, would have to appoint an official, with the equivalent of Deputy 
Director rank, whose primary responsibility will be to carry out the 
day-to-day duties of the OMB Director with respect to information 
sharing. This section would also establish an Executive Council on 
Information Sharing, chaired by the Director of OMB and made up of key 
federal officials (including officials from the NID, DHS, DoD, DOJ, the 
State Department) and state, local, and tribal officials, and 
individuals from private or nonprofit entities that own or operate 
critical infrastructure, appointed by the President. The Council would: 
assist the Director of OMB in his responsibilities with respect to the 
Network; ensure that there is coordination among Network participants; 
review ongoing policy, legal and technology issues; and establish a 
dispute resolution process to resolve disagreements among agencies 
about whether particular information is to be shared and in what 
manner. This section would also establish an Advisory Board on 
Information Sharing, made up of no more than 15 members with 
significant experience or expertise in policy, technical and 
operational matters, appointed by the President from outside the 
federal government. The Board would advise the President and the 
Executive Council on policy, technical, and management issues related 
to the design and implementation of the Network. This section would 
direct the President, through the Director of OMB, to report 
semiannually to Congress on the state of the Network. The report would 
include a general progress report on implementation of the Network, as 
well as information on how the Network is performing with respect to a 
variety of specific considerations. The head of each agency 
participating in the Network would have to ensure: full agency 
compliance with Network guidelines and procedures; the provision of 
activities resources to support operation of and participation in the 
Network; and full agency cooperation in the development of the Network 
and in the management and acquisition of information technology 
consistent with applicable law. This section would require each agency 
participating in the Network to submit to OMB within one year, reports 
that include the agency's strategic plan, objective performance 
measures, and budgetary requirements for implementing the Network 
within the agency and increasing information sharing. Annual agency 
reports would be required thereafter assessing the agency's progress in 
complying with the Network's requirements and outlining the agency's 
future plans for Network implementation. This section would require 
that, within one year after enactment of the Act and periodically 
thereafter, the Comptroller General review and evaluate the 
implementation of the Network to determine the extent of compliance 
with the Network's requirements and to assess the effectiveness of the 
Network both in improving information sharing and in protecting civil 
liberties; the Comptroller General is to report to Congress on his 
findings. This section would also direct the Inspectors General of 
relevant federal agencies to, at their discretion, conduct audits or 
investigations to assess their agencies' effectiveness in improving 
information sharing and complying with the Network's requirements. 
Finally, this section would authorize $50 million to the Director of 
OMB for FY2005; and then such sums as are necessary thereafter, to be 
allocated in accordance with the system design and implementation plan 
required by the Act.

                       EXPLANATION OF AMENDMENTS

    The amendment in the nature of a substitute, as amended, is 
explained in the descriptive portions of this report.

                        COMMITTEE CONSIDERATION

    On September 29, 2004, the House Committee on Government 
Reform met in open session, and by voice vote, ordered reported 
favorably the bill, H.R. 10, as amended.


              APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
Legislative branch employees and their families, to the extent 
that they are otherwise eligible for the benefits provided by 
this legislation, have equal access to its benefits.

  STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF THE COMMITTEE

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 10. Article I, Section 8, of the Constitution 
of the United States grants the Congress the power to enact 
this law.

                       UNFUNDED MANDATE STATEMENT

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement whether 
the provisions of the reported include unfunded mandates. A 
statement from the Congressional Budget Office regarding 
unfunded mandates was not available at the time this report was 
filed.

                           COMMITTEE ESTIMATE

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 10. However, clause 3(d)(3)(B) of that rule provides that 
this requirement does not apply when the Committee has included 
in its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

     BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 10 from the Director of 
Congressional Budget Office:

                                                   October 5, 2004.
Hon. Tom Davis,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 10, the 9/11 
Recommendations Implementation Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 10--9/11 Recommendations Implementation Act

    Summary: H.R. 10 would affect the intelligence community, 
terrorism prevention and prosecution, and border security, as 
well as international cooperation and coordination. Title I 
would establish an Office of the National Intelligence Director 
(NID) to manage and oversee intelligence activities of the U.S. 
government, including foreign intelligence and 
counterintelligence activities. The legislation would transfer 
some existing intelligence organizations to that office and 
would establish a National Counterterrorism Center and one or 
more national intelligence centers within the Office of the 
NID. Title II would authorize funding for law enforcement, 
counterterrorism activities, and programs related to aviation 
safety. Title III would increase the number of agents 
performing border security and immigration functions, improve 
the security of identity documents such as driver's licenses, 
and increase the number of consular officers within the 
Department of State. Title IV would authorize funds for a 
number of international cooperation programs. Finally, title V 
would reauthorize and restructure several homeland security 
programs.
    CBO estimates that implementing H.R. 10 would cost about 
$560 million in 2005 and almost $14.7 billion over the 2005-
2009 period, assuming appropriation of the specified and 
estimated amounts. That total does not include possible 
additional costs associated with implementing provisions 
dealing with the creation of an interoperable data system for 
exchanging law enforcement and intelligence data or the 
establishment of a Federal Bureau of Investigation (FBI) 
reserve service because CBO does not have sufficient 
information to estimate those costs at this time. With regard 
to the FBI reserve service, CBO cannot predict when a national 
emergency would occur, but expects that costs for the proposed 
reserve service would likely be insignificant in most years.
    The bill also contains provisions that would decrease 
direct spending. In particular, it would establish a fund 
within the Department of Homeland Security (DHS) to enhance 
efforts to detect explosives at security checkpoints in 
airports; authorize the collection and spending of $30 million 
a year of fees from airline passengers in 2005 and 2006 for 
that purpose; allow the Director of the FBI to waive the 
mandatory retirement requirement for agents until age 65; and 
extend indefinitely the authority of the Central Intelligence 
Agency (CIA) to offer incentive payments to employees who 
voluntarily retire or resign. CBO estimates that enacting those 
provisions would decrease direct spending by about $25 million 
in 2005, $4 million over the 2005-2009 period, and $2 million 
over the 2005-2014 period. The estimate of direct spending does 
not include the effects of extending the authority of the CIA 
to offer incentive payments to employees who voluntarily retire 
or resign because the data needed to prepare such an estimate 
are classified. Enacting H.R. 10 would not affect receipts.
    H.R. 10 contains several intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act (UMRA). CBO 
estimates that those mandates, in aggregate, would impose costs 
on state, local, and tribal governments totaling more than $600 
million over fiscal years 2005 through 2009. CBO estimates that 
the costs in at least one of those years would exceed the 
threshold established in UMRA ($60 million in 2004, adjusted 
annually for inflation). The bill would authorize 
appropriations for grants to states to cover such costs.
    CBO has not completed an analysis of the bill's impact on 
the private sector. That analysis will be provided later in a 
separate report.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 10 is summarized in Table 1. The costs 
of this legislation fall within budget functions 050 (national 
defense), 400 (transportation), 450 (community and regional 
development), 550 (health), 750 (administration of justice), 
and 800 (general government).
    Basis of estimate: Most of H.R. 10's effects on the federal 
budget would be subject to appropriation of amounts necessary 
to implement the bill. For this estimate, CBO assumes that the 
bill will be enacted by the end of the calendar year, that all 
such amounts will be appropriated near the start of each fiscal 
year, and that outlays will follow historical patterns for 
similar activities.

     TABLE 1.--BUDGETARY IMPACT OF H.R. 10, THE 9/11 RECOMMENDATIONS
    IMPLEMENTATION ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON
                            GOVERNMENT REFORM
------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2005    2006    2007    2008    2009
------------------------------------------------------------------------
            CHANGES IN SPENDING SUBJECT TO APPROPRIATION \1\
 
Estimated Authorization Level...   1,184   5,076   1,393   4,750   5,315
Estimated Outlays...............     558   4,339   2,145   3,319   4,317
 
                     CHANGES IN DIRECT SPENDING \2\
 
Estimated Budget Authority......       *       *       *       *       *
Estimated Outlays...............     -25     -12      19      10       5
------------------------------------------------------------------------
\1\ These amounts do not include the costs of section 2192 because CBO
  cannot estimate such costs at this time. The amounts also exclude the
  costs associated with establishing a reserve service within the
  Federal Bureau of Investigation. Any such costs would be insignificant
  in most years, and CBO has no basis for predicting when a national
  emergency would occur.
\2\ These amounts do not include the costs of section 1061 because the
  data needed to prepare an estimate are classified.
 
Note.--* = between zero and -$500,000.

Spending subject to appropriation

    H.R. 10 contains provisions that would affect the 
intelligence community, terrorist prevention and prosecution, 
and border security, as well as international cooperation and 
coordination. Table 2 presents CBO's estimates of the cost of 
those provisions. In total, we estimate that implementing H.R. 
10 would cost almost $14.7 billion over the 2005-2009 period, 
assuming appropriation of the specified and estimated amounts. 
That total does not include the possible additional costs 
associated with implementing provisions dealing with the 
creation of an interoperable data system for exchanging law 
enforcement and intelligence data or the establishment of an 
FBI reserve service because CBO does not have sufficient 
information to estimate those costs at this time. With regard 
to the FBI reserve service, CBO cannot predict when a national 
emergency would occur, but expects that costs for the proposed 
reserve service would likely be insignificant in most years.

 TABLE 2.--ESTIMATED CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER
 H.R. 10 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON GOVERNMENT REFORM
------------------------------------------------------------------------
                                  By fiscal year, in millions of dollars
                                 ---------------------------------------
                                   2005    2006    2007    2008    2009
------------------------------------------------------------------------
Reform the Intelligence
 Community:
    Estimated Authorization           40     235      75      90      70
     Level......................
    Estimated Outlays...........      30      60     110     145     140
Combating Financial Crimes:
    Authorization Level.........      51       0       0       0       0
    Estimated Outlays...........      36      15       0       0       0
Aviation Security:
    Estimated Authorization          528   4,343     330       0       0
     Level......................
    Estimated Outlays...........     238   3,666     957     340       0
Improve Intelligence
 Capabilities of the FBI:
    Estimated Authorization            4       5       6       7       8
     Level......................
    Estimated Outlays...........       3       5       6       8       8
Increase the Number of Border
 Patrol and Immigration Agents:
    Estimated Authorization            0     174     526     981   1,451
     Level......................
    Estimated Outlays...........       0     165     509     958   1,427
Grants to Improve Security of
 Driver's Licenses:
    Estimated Authorization           80      30      30      10      10
     Level......................
    Estimated Outlays...........      80      30      30      10      10
New Standards for Issuance of
 Birth and Death Certificates:
    Estimated Authorization          330      20      30      40      50
     Level......................
    Estimated Outlays...........      70     150     160      35      45
Expand Immigration Services at
 Foreign Airports:
    Authorization Level.........      49      88     137       0       0
    Estimated Outlays...........      39      80     127      28       0
Increase the Number of Consular
 Officers:
    Estimated Authorization            0      33      62      93     125
     Level......................
    Estimated Outlays...........       0      27      54      84     115
Reform International Cooperation
 and Coordination:
    Estimated Authorization           17      17      17       7       7
     Level......................
    Estimated Outlays...........       7      15      17      15       9
First-Responder Grants:
    Estimated Authorization            0       0       0   3,314   3,381
     Level......................
    Estimated Outlays...........       0       0       0   1,491   2,350
Counternarcotics Office:
    Estimated Authorization            6       6       6       6       6
     Level......................
    Estimated Outlays...........       4       6       6       6       6
Security Clearance
 Modernization:
    Estimated Authorization           23      68     116     143     147
     Level......................
    Estimated Outlays...........      21      64     111     140     147
Public Safety Communications
 Interoperability:
    Estimated Authorization            6       6       6       6       6
     Level......................
    Estimated Outlays...........       5       6       6       6       6
Information-Sharing Network:
    Estimated Authorization           50      51      52      53      54
     Level......................
    Estimated Outlays...........      25      50      52      53      54
Total Changes: \1\
    Estimated Authorization        1,184   5,076   1,393   4,750   5,315
     Level......................
    Estimated Outlays...........     558   4,339   2,145   3,319   4,317
------------------------------------------------------------------------
\1\ These amounts do not include the costs of section 2192 because CBO
  cannot estimate such costs at this time. The amounts also exclude the
  costs associated with establishing a reserve service within the
  Federal Bureau of Investigation. Any such costs would be insignificant
  in most years, and CBO has no basis for predicting when a national
  emergency would occur.
 
Note.--FBI = Federal Bureau of Investigation.

    Reform the Intelligence Community. Title I would reform the 
intelligence community by establishing the position of National 
Intelligence Director and an Office of the National 
Intelligence Director to manage and oversee intelligence 
activities of the U.S. government, including foreign 
intelligence and counterintelligence activities. The 
legislation also would transfer some existing organizations, 
specifically the Office of the Deputy Director of Central 
Intelligence for Community Management and the Terrorist Threat 
Integration Center (TTIC),to that office and would establish a 
National Counterterrorism Center and one or more national intelligence 
centers within the Office of the NID. The bill would expand language 
training within the intelligence community and authorize additional 
scholarships for new recruits. Finally, the legislation would establish 
a civilian linguist reserve corps. CBO estimates that implementing 
title I and other provisions relating to the intelligence community 
would cost about $490 million over the 2005-2009 period (see Table 3). 
These costs are in addition to those that would be incurred under 
current law by the Office of the Deputy Director of Central 
Intelligence for Community Management and the Terrorist Threat 
Integration Center. The estimated costs include expenses to establish, 
house, and administer the new Office of the National Intelligence 
Director and implement other specified programs, such as improving 
training programs and establishing a scholarship program.

  TABLE 3.--ESTIMATED CHANGES IN SPENDING SUBJECT TO APPROPRIATION FOR
 REFORMING THE INTELLIGENCE COMMUNITY UNDER H.R. 10 AS ORDERED REPORTED
               BY THE HOUSE COMMITTEE ON GOVERNMENT REFORM
------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2005    2006    2007    2008    2009
------------------------------------------------------------------------
Create the Office of the
 National Intelligence Director:
    Estimated Authorization           15     210      50      80      60
     Level......................
    Estimated Outlays...........      10      35      80     135     130
Other Program Authorizations:
    Estimated Authorization           25      25      25      10      10
     Level......................
    Estimated Outlays...........      20      25      25      10      10
Total Changes:
    Estimated Authorization           40     235      75      90      70
     Level......................
    Estimated Outlays...........      30      60     110     145     140
------------------------------------------------------------------------

    Create the Office of the National Intelligence Director, 
CBO estimates that establishing, housing, and administering the 
Office of the NID would cost about $390 million over the 2005-
2009 period.
    The bill would transfer the Office of the Deputy Director 
of Central Intelligence for Community Management (identified as 
the Intelligence Community Management Account within the 
budget) and the TTIC to the Office of the NID.
    The Intelligence Community Management Account (ICMA) was 
established by Congressional direction to provide resources 
that directly support the Director of the Central intelligence 
Agency and the intelligence community as a whole in 
coordinating cross-program activities. Because part of its 
budget is classified, CBO does not know the overall size of 
this organization. Unclassified budgets for the ICMA indicate 
that the office has a staff of about 300 people who develop the 
National Foreign Intelligence Program budget, oversee research 
and development activities, and develop intelligence plans and 
requirements, but the Congress also authorizes and appropriates 
funds for additional staff in the classified portion of the 
intelligence budget.
    Similarly, CBO has no budget information on the TTIC, but 
public information released by the White House indicates that 
the center opened in May 2003 with a staff of about 60 people 
working alongside the counterterrorism offices of the Federal 
Bureau of Investigation and the CIA. That same information 
indicates that the Administration expects to eventually staff 
the TTIC with between 200 and 300 people to serve as the hub 
for all intelligence regarding terrorist threats.
    CBO expects that the NID would require staff to perform its 
authorized functions in addition to the staff transferred from 
the ICMA and the planned staff for the TTIC. Because much of 
the detailed information regarding the organization, staffing 
levels, and budgets of the intelligence community are 
classified at a level above clearances held by CBO employees, 
CBO has used information about staff requirements from similar 
organizations within the Department of Defense (DoD), the 
Department of Homeland Security, and other federal agencies to 
attempt to estimate the number of additional staff that might 
be needed by the NIC. Based on that analysis, CBO estimates 
that the NID might need to hire around 300 new staff, including 
appointees such as principal and deputy directors, key managers 
such as a general counsel, a civil liberties protection 
officer, personnel to perform administrative functions such as 
policy development and budget and finance activities, and 
personnel for the National Counterterrorism Center and one or 
more national intelligence centers. CBO expects that many of 
these new hires would be staff transferred from other 
organizations within the intelligence community but that those 
other organizations would eventually fill many of the vacated 
positions within their organizations over about a four year 
period following enactment of this legislation.
    Based on information about the staffing levels and costs 
for the administrative offices of the Department of Defense, 
the Department of Homeland Security, and other agencies, CBO 
estimates that the personnel and related expenses to provide 
centralized leadership, coordination, and support and 
analytical services for the Office of the National Intelligence 
Director would eventually cost around $45 million annually, but 
that costs would be muchlower in the first few years as 
positions are filled. CBO estimates that such costs would be minimal in 
the first year and total about $130 million over the 2005-2009 period.
    Section 1094 would express the sense of the Congress that 
the permanent location of the NID headquarters be at a location 
other than the George Bush Center for Intelligence in Langley, 
Virginia. For this estimate, CBO assumes that the Director's 
office and associated staff would occupy the space currently 
used by the Intelligence Community Management staff until 
fiscal year 2007. Starting in 2007, CBO assumes that the office 
would move to new office space in a building owned by the 
General Services Administration (GSA) until a new building can 
be built for its use. CBO estimates that initially GSA would 
need to renovate and furnish office space for the NID staff. 
(After 2009, CBO expects that these positions would be 
relocated to the new permanent NID headquarters.) CBO estimates 
that the GSA rental payments would reach about $20 million a 
year and total about $40 million over the 2007-2009 period. 
Additional costs to purchase computers, network equipment, and 
supplies in the first few years following the relocation into 
the GSA-owned building also would be significant. CBO estimates 
that those costs would total $30 million over the 2007-2009 
period.
    CBO assumes that GSA would construct a new building on land 
already owned by the federal government to serve as the 
headquarters for the Office of the NID. Based on information 
provided by GSA about recent federal office building projects, 
CBO estimates that planning and design of the new headquarters 
would cost $15 million over the 2005-2006 period, and that 
constructing the facility to house NID employees would cost 
about $175 million over the 2006-2009 period. (An additional 
$20 million in spending would occur in 2010 to complete 
construction of the new building.) CBO assumes that the 
headquarters would be located on property already owned by the 
federal government in the Washington, D.C. area. If GSA had to 
buy land for the building site, costs would be higher. CBO 
assumes that construction of the new facility would not start 
until sometime in late 2006 and would be completed after 2009. 
Therefore, CBO estimates that no costs associated with 
furnishing, equipping, and maintaining the new space would be 
incurred during the 2005-2009 period nor would there be costs 
to relocate NID staff from the interim offices to the new 
headquarters over that period.
    Other Program Authorizations. Title I also would authorize 
the President and the NID to initiate or enhance several 
programs within the intelligence community. Based on 
information from the Administration and on the costs of other 
similar efforts, CBO estimates that those efforts would cost 
about $20 million in 2005 and total around $90 million over the 
2005-2009 period, subject to appropriation of the specified and 
estimated amounts.
     Section 1052 would authorize the appropriation of 
an additional $2 million a year to carry out the grant program 
for the National Flagship Language Initiative, which was 
established to improve higher education in foreign languages 
that the Secretary of Defense has identified as critical to the 
interests of the national security of the United States. CBO 
estimates that implementing this section would cost $10 million 
over the 2005-2009 period, assuming appropriation of the 
specified amounts.
     Section 1053 would establish a new scholarship 
program within the National Security Education Trust Fund. The 
scholarships would be available to students who are U.S. 
citizens and are native speakers of a foreign language that is 
identified as critical to the national security interests of 
the United States. The scholarships would enable those students 
to pursue English language studies at an institution of higher 
education in the United States to attain proficiency in those 
skills. The bill would authorize the appropriation of $4 
million a year starting in 2005 for these scholarships. CBO 
estimates that the costs for the scholarship program would 
total about $20 million over the 2005-2009 period, assuming 
appropriation of the specified amounts.
     Section 1055 would establish a program operated 
jointly by the NID and the Department of Defense to advance 
foreign language skills in languages that are critical to the 
capability of the intelligence community to carry out national 
security activities. Under this provision, personnel from the 
intelligence community could be reimbursed for the total cost 
of tuition and training in foreign language studies undertaken 
at educational institutions that have entered into educational 
partnerships with the U.S. government. In addition, federal 
agencies would be allowed to provide financial assistance to 
those educational institutions, including the loan of equipment 
and instructional materials. CBO has no specific information 
about how this joint NID/DoD program would be implemented. 
Assuming that participation levels would be similar to those 
for another foreign language program offered within the 
National Security Education Trust Fund, CBO estimates that the 
new program would cost about $1 million a year.
     Section 1056 would allow the NID to establish a 
civilian linguist reserve corps consisting of U.S. citizens 
with advanced levels of proficiency in foreign languages. CBO 
assumes that members of the reserve corps would receive pay, 
transportation, and per diem when performing work for the 
federal government as requested by the President. The pilot 
project would be conducted for a three-year period, starting in 
2005. Based on information provided by the staff of the 
National Security Education Program, CBO expects that the 
reserve corps would consist of about 150 people at any given 
time and cost about $50 million over the 2005-2007 period.
     Section 1062 would establish an Emerging 
Technologies Panel within the National Security Agency to 
advise the NID on the research, development, and application of 
existing and emerging science and technology advances, advances 
in encryption, and other topics. Based on the budgets of other 
advisory panels, CBO estimates that the costs to operate this 
panel would be about $1 million in 2005 and would total $10 
million over the 2005-2009 period.
    Combating Financial Crimes. Section 2101 and 2102 would 
authorize the appropriation of $51 million for fiscal year 2005 
for the Financial Crimes Enforcement Center to improve its 
computer systems and to assist states and localities in 
combating financial crimes. CBO estimates that this provision 
would result in outlays of $36 million in 2005 and $15 million 
in 2006, assuming appropriation of the specified amount.
    Aviation Security. Title II would authorize the 
appropriation of the funds necessary to continue aviation 
security programs in 2006 and to deploy explosive-detection 
equipment at airport check points. Based on information from 
DHS and current funding levels, CBO estimates that title II 
would authorize the appropriation of about $5.2 billion over 
the 2005-2007 period for aviation security programs 
administered by DHS. We estimate that most of that amount--
roughly $4 billion--would be authorized to be appropriated in 
fiscal year 2006 for ongoing programs administered by the 
Transportation Security Administration (TSA) and for the 
federal air marshals. (That estimate is net of almost $2 
billion in offsetting collections from passenger and air-
carrier fees that we assume will continue to be collected by 
TSA in 2006 to partly offset the cost of aviation security 
programs in that year.) This estimate also includes almost $1 
billion over the 2005-2007 period for installing explosive-
detection equipment at airport screening checkpoints and $70 
million in 2005 for programs to better control access to 
airports, improve passenger screening, and train federal law 
enforcement officials in certain counterterrorism measures. In 
addition, title II would specifically authorize the 
appropriation of $95 million in 2005 for security projects at 
airports and $2 million for a pilot program to test technology 
to reduce the threat of explosions of baggage and cargo on 
commercial flights. Assuming appropriation of the specified and 
estimated amounts, CBO estimates that implementing all of these 
provisions would cost $238 million in 2005 and $5.2 billion 
over the 2005-2009 period.
    Improve the Intelligence Capabilities of the FBI. Section 
2193 would direct the FBI to continue to improve the 
intelligence capabilities of the bureau and to develop and 
maintain a national intelligence workforce within the FBI. 
Today, the FBI spends about $30 million on counterterrorism 
training. Since 2002, more than 1,500 agents have been added to 
the bureau's staff to meet its counterterrorism mission, an 
increase of about 20 percent. In addition, since the events of 
September 11, 2001, the FBI has partnered with other 
intelligence agencies to provide training in counterterrorism 
and counterintelligence to its staff, and it plans to increase 
that training in the future. CBO assumes that implementation of 
this bill would require the agency to conduct more extensive 
training than is currently planned. Based on information from 
the bureau, we estimate that this additional training would 
cost $3 million in 2005 and almost $30 million over the 2005-
2009 period, assuming appropriation of the necessary amounts.
    Interoperable Law Enforcement and Intelligence Data System. 
Under the Enhanced Border Security and Visa Entry Reform Act of 
2002 (Public Law 107-173), the Administration is required to 
integrate all law enforcement data into an interoperable 
electronic data system known as the Chimera system. However, 
the act did not establish a firm date by which the 
Administration must deploy a fully operational Chimera system. 
Section 2192 would transfer the responsibility for this 
activity to the NID. The provision would direct the NID to 
design a state-of-the-art Chimera system with both biometric 
identification and linguistic capabilities satisfying the best 
technology standards, and to deliver a fully operational system 
by September 11, 2007, for use by the intelligence community, 
federal law enforcement agencies, and counterterrorism 
personnel to collect and share information. Although CBO 
believes that establishing a firm deadline for the operational 
system would likely result in increased discretionary spending 
in the near term, CBO does not have sufficient information to 
estimate that increase at this time. Absent information as to 
whether this transfer would result in changes to the system, 
CBO also cannot estimate whether any long-term costs would 
result from this transfer.
    Increase the Number of Border Patrol and Immigration 
Agents. Sections 3003 and 3004 would direct DHS to increase the 
number of border patrol agents by 2,000 per year and the number 
of investigators of immigration violations by 800 each year 
over the 2006-2010 period. Implementing this provision would 
increase the number of federal agents by 14,000 by 2010. 
Assuming appropriation of the necessary amounts, CBO estimates 
that this provision would cost $165 million in fiscal year 2006 
and $3.1 billion over the 2006-2009 period.
    Grants To Improve the Security of Driver's Licenses. 
Section 3055 would authorize the appropriation of such sums as 
necessary for fiscal years 2005 through 2009 for DHS to make 
grants to states to cover the costs of improving the security 
of driver's licenses as required by the bill. Based on 
information from states and from the American Association of 
Motor Vehicle Administrators (AAMVA), CBO estimates that 
implementing this provision would cost $80 million in 2005 and 
$160 million over the 2005-2009 period, assuming appropriation 
of the necessary amounts.
    New Standards for Issuance of Birth and Death Certificates. 
Sections 3062 and 3063 would require new federal standards 
governing the issuance and management of birthcertificates 
recognized by the federal government. Section 3064 would require the 
establishment of a uniform electronic birth and death registration 
system, and section 3065 would extend that system to allow electronic 
verification of vital records.
    Maintaining birth and death records has long been a 
function of state governments. The Secretary of Health and 
Human Services, acting through the Centers for Disease Control 
and Prevention (CDC), currently works with states to compile 
birth and death data for epidemiological studies. H.R. 10 would 
authorize the Secretary to expand that cooperation to the 
formal linking of birth and death records for purposes of 
preventing fraud and other government uses. The bill also would 
authorize the appropriation of such sums as may be necessary 
for these activities, including grants to states to comply with 
these new requirements.
    Based on information from the CDC and the National 
Association for Public Health Statistics and Information 
Systems, CBO estimates that implementing the new security 
standards and building the electronic system of vital records 
would cost $460 million over the 2005-2009 period, assuming 
appropriation of the necessary amounts. That cost would be for 
grants to states to meet the new federal requirements. Of these 
amounts, $70 million in 2005 and $330 million over the 2005-
2009 period would cover start-up costs, including digitalizing 
old birth and death certificates, building electronic systems 
for reporting deaths in some states, upgrading security 
arrangements, and acquiring computer infrastructure. CBO 
estimates that operating the new system for vital records over 
the 2006-2009 period would cost $130 million. We expect that 
the system would be fully operational in 2009, at which point 
annual operating costs would total $50 million.
    Expand Immigration Services at Foreign Airports. Sections 
3082 and 3083 would authorize the appropriation of $49 million 
for 2005, $88 million for 2006, and $137 million for 2007 for 
DHS to expand perinspection services and immigration security 
at foreign airports. CBO estimates that implementing this 
provision would cost $274 million over the 2005-2009 period, 
assuming appropriation of the specified amounts.
    Increase the Number of Consular Officers. Section 3084 
would authorize the Secretary of State to increase the number 
of consular officers by 150 each year over the number allotted 
in the previous year during the 2006-2009 period. It also would 
authorize the Secretary to provide additional training to 
consular officers in the detection of fraudulent documents 
presented by applicants for admission into the United States. 
Based on the average cost of training and stationing consular 
officers overseas, CBO estimates that implementing the 
provision would cost $27 million in 2006 and $280 million over 
the 2006-2009 period.
    Reform International Cooperation and Coordination. Title IV 
would require the President to produce numerous reports, 
express the sense of the Congress on many issues, and urge the 
President to seek agreements with other countries to improve 
cooperation in the global fight against terrorist 
organizations. The title also would authorize some additional 
spending. Subtitle D, the Afghanistan Freedom Support Act 
Amendments of 2004, would authorize additional rule-of-law, 
disarmament, and counternarcotics activities ion Afghanistan by 
the U.S. Department of State, but would not increase the 
overall authorization of appropriations above the $425 million 
authorized for each of fiscal years 2005 and 2006 in current 
law.
    Title IV contains three indefinite authorizations of 
appropriations and other provisions that CBO estimates would 
cost $7 million in 2005 and $63 million over the 2005-2009 
period, assuming appropriation of the necessary amounts. In the 
cases where the same provision has been included in other bills 
at specified authorization levels, CBO used that authorization 
level for this estimate. CBO assumes that spending for these 
programs will follow the historical pattern of similar 
programs.
     Section 4041 would authorize the appropriation of 
such sums as may be necessary in 2005, 2006, and 2007 to 
provide grants to American-sponsored schools in predominately 
Muslim countries to provide scholarships to students from 
lower- and middle-income families of those countries. H.R. 
4303, the American Education Promotion Act, as ordered reported 
by the House Committee on International Relations on June 24, 
2004, would authorize the appropriation of $5 million each year 
for such grants. That amount is included in this estimate.
     Section 4042 would authorize the appropriation of 
such sums as may be necessary in 2005, 2006, and 2007 for 
grants by the National Endowment for Democracy to enhance free 
and independent media worldwide. H.R. 1950, the Foreign 
Relations Authorization Act, Fiscal Years 2004 and 2005, as 
reported by the House Committee on International Relations on 
May 16, 2003, would have authorized $15 million for such 
grants. CBO assumes the amount would be provided in three equal 
installments over the three-year period.
     Section 4103 would authorize the appropriation of 
such sums as may be necessary for programs to reduce the number 
of shoulder-fired missiles. For the purpose of the estimate, 
CBO assumed the appropriation of $5 million each year, an 
amount similar to the cost of other programs for reducing the 
availability of small arms.
     Section 4035 would establish within the Department 
of State an Office on Multilateral Negotiations. In our 
estimate for H.R. 4053, the United States 
InternationalLeadership Act of 2004, as ordered reported by the House 
Committee on International Relations on March 31, 2004, CBO estimated 
that establishing and operating an Office on Multilateral Negotiations 
would cost $2 million a year.
     Sections 4011 and 4012 would require the Secretary 
of State to fill vacancies on the Arms Control and 
Nonproliferation Advisory Board and to provide resources to 
procure the services of experts and consultants. Based on the 
cost of other advisory boards, CBO estimates that implementing 
these sections would cost less than $200,000,000 a year.
    First-Responder Grants. Subtitle A of title V would 
authorize funding for grants to state and local governments for 
staff and equipment to respond to acts of terrorism and natural 
disaster. It would authorize the Secretary of the Department of 
Homeland Security to change the criteria used to distribute 
funding for four existing first-responder grant programs--the 
State Homeland Security, the Urban Area Security Initiative, 
the Law Enforcement Terrorism Prevention, and the Citizen Corps 
grant programs. Assuming appropriation of the necessary funds, 
CBO estimates that implementing this subtitle would cost $3.8 
billion over the 2008-2009 period.
    Almost $10 billion has been appropriated for first 
responder grants since fiscal year 2003, including about $3 
billion in fiscal year 2004. The Office of Domestic 
Preparedness (within DHS (derives its primary authority to 
distribute grants to state and localities to prepare and 
respond to terrorism from the USA Patriot Act (Public Law 107-
56). That law authorized the appropriations of such sums as 
necessary for first-responder grants in the Patriot Act and 
continue the authorization to appropriate such sums as 
necessary after 2007.
    For this estimate, CBO assumes that the amount in CBO's 
baseline--$3.3 billion--would be appropriated for first-
responders grants in 2008 and that 2009 funding levels for 
first-responder grants would continue that level, adjusted for 
anticipated inflation.
    Counternarcotics Office. Section 5025 would authorize the 
appropriation of $6 million in fiscal year 2005 to strengthen 
the authority of the Counternarcotics Officer at DHS. Under the 
bill, the Office of Counternarcotics Enforcement would be 
responsible for coordinating policies and federal operations 
aimed at preventing the entry of illegal drugs into the United 
States. DHS currently has a Counternarcotics Officer within the 
Chief of Staff's office. According to that office, the 
Counternarcotics Office is working with limited authority to 
coordinate the agency's anti-drug effort. Assuming the 
appropriation of the necessary amounts to continue this effort 
over the next five years. CBO estimates that implementing this 
provision would cost $28 million over the 2005-2009 period.
    FBI Reserve Service. Section 5053 would allow the FBI to 
establish a reserve service consisting of former employees of 
the FBI who would be eligible for temporary reemployment during 
a period of national emergency. Under the bill, the total 
number of personnel in this reserve service would receive 
reimbursement for transportation and per diem expenses when 
participating in any training, and members who are retired 
federal employees would be allowed to collect both pay and 
retirement benefits during their period of reemployment. CBO 
cannot predict when a national emergency might occur, so no 
costs are included in this estimate for activating the proposed 
FBI Reserve Service. In most years CBO expects that the cost 
associated with the reserve service would being significant--
mostly covering limited training time, per diem, and 
transportation expenses. In an emergency, if all members of the 
reserve corps were reemployed for six months, the costs would 
total about $25 million.
    Security Clearance Modernization. Beginning five years 
after enactment of this bill, section 5076 would require the 
Office of Personnel Management (OPM) to achieve a 60-day 
turnaround period for all security clearances requested by 
federal agencies. Currently, OPM anticipates that by the fall 
of 2005 the typical turnaround period for security clearances 
will be approximately 120 days. Based on information from OPM, 
CBO expects that approximately 1,700 new investigators would 
have to be hired over the next three years to meet the 60-day 
standard. With an average annual cost of about $80,000 per 
investigator, and assuming the appropriation of the necessary 
amounts, CBO estimates that this provision would cost $483 
million over the 2005-2009 period.
    Interoperability of Public Safety Communications. Section 
5131 would establish a program within DHS to provide assistance 
and training to enhance the interoperability of public safety 
communication among federal, state, and local governments in 
high-risk jurisdictions. DHS currently conducts activities to 
enhance communications; however, according to that office, it 
is working with limited funds and legal authority. Based on 
information from DHS, CBO estimates that implementing this 
section would cost $29 million over the 2005-2009 period.
    Information-Sharing Network. Section 5134 would direct the 
President to establish a ``trusted information network'' to 
promote sharing of intelligence and homeland security 
information among all relevant federal departments, state and 
local authorities, and relevant private-sector entities. That 
section also would create an executive council chaired by the 
Director of the Office of Management and Budget to implement 
and manage the network and create an advisory board to advise 
the President and the executive council on policy, technical, 
and management issues related to the design and operation of 
the network. Finally, the section would authorize the 
appropriation of $50 million in fiscal year 2005 and such sums 
as may be necessary for each subsequent year for this effort. 
For this estimate, absent an understanding of the information 
networks in place today within the intelligence community, the 
requirements for establishing such an information-sharing 
network, and the timelines needed to do so, CBO has projected 
the $50 million authorized for 2005 over the 2006-2009 period 
with annual adjustments for anticipated inflation. Thus, CBO 
estimates that implementing this section would cost about $235 
million over the 2005-2009 period. (The Department of Defense 
recently completed the purchase of equipment for upgrading its 
intelligence network to improve the sharing of national 
security intelligence, surveillance and reconnaissance, and 
command and control information sharing at a cost of nearly $1 
billion.)

Direct spending

    The bill contains provisions that would decrease direct 
spending (see Table 4). CBO estimates that enacting those 
provisions would decrease direct spending by about $25 million 
in 2005, $4 million over the 2005-2009 period, and $2 million 
over the 2005-2014 period. The estimate of direct spending of 
direct spending does not include spending associated with 
extending the authority of the CIA to offer incentive payments 
to employees who voluntarily retire or resign because the data 
needed to prepare such an estimate are classified.

   TABLE 4.--CHANGES IN DIRECT SPENDING UNDER H.R. 10 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON GOVERNMENT
                                                    REFORM\1\
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                   2005    2006    2007    2008    2009    2010    2011    2012    2013    2014
----------------------------------------------------------------------------------------------------------------
Estimated Budget Authority......       *       *       *       *       *       *       *       *       *       *
Estimated Outlays...............     -25     -12      19      10       5       3       *       *       *       *
----------------------------------------------------------------------------------------------------------------
Note.--* = Between zero and -$500,000.
\1\ These amounts do not include the costs of section 1061 because the data needed to prepare an estimate are
  classified.
 

    Authority to Offer Incentive Payments to Employees of the 
CIA Who Voluntarily Resign or Retire. Section 1061 would extend 
indefinitely the authority of the CIA to offer incentive 
payments to employees who voluntarily retire or resign. Under 
current law, this authority would expire on September 30, 2005. 
This section also would eliminate the requirement that the CIA 
make a deposit to the Civil Service Retirement and Disability 
Fund equal to 15 percent of final pay for each employee who 
accepts an incentive payment. Extending authority to offer 
incentive payments to these employees could increase outlays 
from the Civil Service Retirement System in the near term, 
although those amounts would be offset by reduced retirement 
payments in later years. CBO cannot provide an estimate of the 
direct spending effects because the data needed for such an 
estimate are classified.
    Aviation Security. Section 2177 would establish a fund 
within DHS to enhance efforts to detect explosives at security 
checkpoints in airports. The bill would authorize the 
collection and spending of $30 million a year of fees from 
airline passengers in 2005 and 2006.
    The cost of the new program would be offset by fee 
collections authorized under the bill. TSA already collects a 
$2.50 fee from airline passengers each time they board an 
aircraft (with a maximum of $5.00 per one-way trip). Under 
current law, such fees may be collected only to the extent 
provided for in advance in appropriations acts, and income from 
those fees is recorded as an offset to appropriated spending. 
H.R. 10 would require TSA to collect up to $30 million a year 
from passengers without appropriation action. Under H.R. 10, we 
estimate that the agency would collect that amount each year. 
Because H.R. 10 would cause such fees to be used to finance the 
activities related to explosives detection at airport 
checkpoints, such fees would not be available to reduce the 
costs of other TSA spending. In other words, the collections 
under H.R. 10 would lead to a reduction in the amount of fees 
recorded as offsets to appropriated spending--essentially 
changing some discretionary offsetting collections into 
mandatory offsetting receipts.
    Based on historical spending patterns for similar 
activities, CBO estimates that fees collected under this 
provision would exceed the amounts actually spent for 
explosives detection for the next few years. Hence, we estimate 
that enacting section 2177 would reduce net directspending by 
$37 million in 2005 and 2006, but would increase net direct spending in 
later years and have no impact on the budget over the 2005-2014 period.
    Increased Fines for New Federal Crimes. Several sections in 
title II would establish new federal crimes for offenses 
relating to the commission of terrorist acts. Because those 
prosecuted and convicted under the bill could be subject to 
fines, the federal government might collect additional fines if 
the legislation is enacted. Criminal fines are deposited as 
receipts in the Crime Victims Fund and later spent. CBO expects 
any additional revenues and direct spending under the bill 
would be negligible because of the small number of cases 
involved.
    Authority to Waive Separation Age Requirement for FBI 
Agents. Section 5051 would provide the FBI with the ability to 
allow agents to remain at the agency beyond the age of 60. 
Under current law, FBI agents are required to retire at age 57, 
although the agency's director may waive that requirement until 
the agent turns 60. This section would allow the director to 
waive the mandatory retirement requirement until age 65. This 
authority would last through the end of 2009, at which time the 
waiver authority would revert to current law. Information 
provided by the FBI indicates that the agency issues waivers to 
between 25 and 75 employees annually. By expanding the current 
waiver authority, CBO expects the bill would cause some FBI 
employees to retire later than they otherwise would have. We 
anticipate this would cause retirement annuities to fall in the 
near term, and to increase after the expanded waiver authority 
expires in 2009. CBO estimates this section would reduce direct 
spending for retirement benefits by less than $500,000 in 2005 
and by a total of $2 million over the 2005-2014 period.
    Estimated impact on state, local, and tribal governments: 
H.R. 10 contains several intergovernmental mandates as defined 
in UMRA. The major mandates would require state, local, and 
tribal governments to significantly change the way they process 
and issue driver's licenses, identification cards, and birth 
and death certificates. The costs to state, local, and tribal 
governments would depend on federal regulations that are yet to 
be developed. However, based on information from state 
agencies, CBO estimates that, in aggregate, the 
intergovernmental mandates in the bill would impose costs on 
state, local, and tribal governments totaling more than $600 
million over fiscal years 2005 through 2009. CBO estimates that 
the costs in at least one of those years would exceed the 
threshold established in UMRA ($60 million in 2004, adjusted 
annually for inflation). The bill would authorize 
appropriations for grants to states to cover such costs.

Intergovernmental mandates with significant costs

    Driver's Licenses. H.R. 10 would effectively require state 
agencies that issue driver's licenses to comply with new 
standards for producing, verifying, and ensuring the security 
of driver's licenses and identification cards. Those provisions 
would be effective three years after the bill's enactment. CBO 
considers these standards to be mandates because any driver's 
licenses issued after that time would be invalid for federal 
identification purposes unless they met those requirements.
    Based on information from AAMVA and other groups 
representing state and local governments, CBO expects that 
states would face significant additional costs to administer 
the new system. Specifically, state licensing agencies would be 
required to verify, with the issuing agency, each document 
presented as proof of identification, residency, and 
citizenship status. Agencies such as the Social Security 
Administration currently charge a fee for each verification, 
and assuming that other agencies would charge similar fees, 
states would incur ongoing costs as well as one-time costs to 
upgrade computer systems to meet those requirements. States 
also would face significant costs to upgrade computer systems 
to digitize and store electronic copies of all source documents 
and to create and maintain the Driver's License Agreement, an 
interstate database to share driver information. Finally, 
certain states that do not currently require background checks 
for certain employees would face additional costs to complete 
those checks.
    CBO assumes that states would begin to establish procedures 
for complying with these standards in 2005, the year following 
the bill's enactment; we estimate that they would incur 
additional costs totaling $80 million during that first year 
and another $80 million over fiscal years 2006 through 2009.
    Issuance and Verification of Vital Statistics Information. 
H.R. 10 also would impose several intergovernmental mandates 
with significant costs on state, local, and tribal agencies 
that issue birth and death certificates. Those agencies would 
effectively be required to print birth certificates on safety 
paper, to establish a central database of vital information, 
and to ensure that certain employees have security clearances. 
Those provisions also would be effective three years after the 
bill's enactment. Certificates issued after that date would be 
invalid for certain purposes unless they met those 
requirements. We estimate that state, local, and tribal 
governments would face additional costs to comply with those 
requirements totaling more than $70 million in 2005, and almost 
$400 million over fiscal years 2006 through 2009. Most of those 
costs would be for upgrading computer software and hardware, 
and for staff time to convert existing paper records into 
electronic records. These are mostly one-time costs that would 
be incurred over the five-year period.

Mandates with no significant costs

    The bill also contains several other inter-governmental 
mandates, but CBO expects that they would probably not impose 
significant additional costs on state, local, or tribal 
governments. Specifically, the bill would:
     Require state licensing agencies to include 
minimum features on all driver's license and identification 
cards, including full legal name, date of birth, gender, 
driver's license or identification number, photo, legal 
address, physical security features, and machine-readable 
technology. According to AAMVA, all states currently include 
these minimum features on licenses.
     Require state agencies to meet minimum standards 
before issuing driver's licenses, including documenting the 
individual's name, date of birth, address, and proof of Social 
Security number (SSNs). While states currently set their own 
standards for such information, all states currently require at 
least this minimum documentation.
     Require states to maintain a database of driver 
information; require states to implement training classes for 
employees to identify fraudulent documents; and require 
documents and supplies to be securely stored. According to 
state officials, all states currently comply with those 
requirements.
     Require offices that maintain vital information to 
comply with requirements for securing their buildings. Based on 
information from representatives of state offices of vital 
statistics, CBO believes that most offices already would be in 
compliance, assuming that the Secretary of the Department of 
Homeland Security would establish minimum security requirements 
in any event.
     Require that state and local governments limit 
access to birth and death certificates. Fourteen states 
currently allow public access to those records, but CBO 
estimates that they would incur no additional costs to limit 
access.
     Prohibit states from accepting any foreign 
document, other than an official passport, for identification 
purposes for the issuance of driver's licenses. Currently, at 
least 10 states accept identification cards issued by foreign 
governments, such as the ``matricula consular'' issued by 
Mexico. This prohibition would preempt state authority.
     Require states to resolve any discrepancies that 
arise from verifying Social Security numbers, though the 
language is unclear as to what specific actions would be 
required. Currently, at least two states prohibit their 
employees from enforcing immigration laws, and many of those 
discrepancies may be related to immigration. This requirement 
might preempt those state laws.
     Prohibit states from displaying Social Security 
numbers on driver's licenses or from including Social Security 
numbers in bar codes, magnetic strips, or similar devices. CBO 
has found new instances where states used SSNs as identifiers 
on licenses or coded SSNs in some other manner on the license.
     Require all law enforcement officers who are 
armed, including state and local personnel, to have a 
standardized credential when traveling on aircraft. CBO assumes 
TSA would establish and issue each credentials.
    Estimated impact on the private sector: CBO has not 
completed an analysis of the bill's impact on the private 
sector. That analysis will be provided later in a separate 
report.
    Previous CBO estimates: On October 4, 2004, CBO transmitted 
cost estimates for H.R. 10, as ordered reported by the House 
Committee on Armed Services and the Permanent Select Committee 
on Intelligence. On October 5, 2004, CBO transmitted a cost 
estimate for H.R. 10 as reported by the House Committee on 
Financial Services. The versions of the legislation approved by 
those three committees are similar, and the cost estimates are 
identical. The House Government Reform version contains an 
authorization of appropriations for an information-sharing 
network that was not addressed by the other versions of the 
bill.
    On September 24, 2004, CBO transmitted a cost estimate for 
S. 2840, the National Intelligence Reform Act of 2004, as 
reported by the Senate Committee on Governmental Affairs. Both 
bills would create a new Office of the National Intelligence 
Director and reform certain aspects of the intelligence 
community. In addition, H.R. 10 would reform terrorism 
prevention and prosecution, border security, and international 
cooperation and coordination activities--areas not addressed by 
S. 2840. Differences in the estimated costs reflect differences 
between the two bills.
    Estimate prepared by: Federal Costs: Intelligence Programs: 
Raymond J. Hall; Homeland Security: Megan Carroll and Julie 
Middleton; Justice: Mark Grabowicz; Vital Records; J. Timothy 
Gronniger; International Programs: Joseph C. Whitehall; General 
Government: Matthew Pickford. Impact on State, Local, and 
Tribal Governments: Melissa Merrell.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                             MINORITY VIEWS

    On July 22, 2004, the National Commission on Terrorist 
Attacks Upon the United States (the Commission) issued its 
final report with unanimous recommendations. As the report 
states:

          Ten Commissioners--five Republicans and five 
        Democrats chosen by elected leaders from our nation's 
        capital at a time of great partisan division--have come 
        together to present this report without dissent. We 
        have come together with a unity of purpose because our 
        nation demands it.

    On August 3, 2004, the Government Reform Committee held a 
hearing with two Commissioners, former Navy Secretary John 
Lehman, a Republican, and former Senator Bob Kerrey, a 
Democrat. They urged members to follow the Commission's example 
and work together to implement all of the Commission's 
unanimous recommendations.
    The legislative effort in the Senate has been bipartisan. 
Senator Lieberman has worked, and continues to work, with both 
Senator Collins and Senator McCain to produce bipartisan 
legislation embodying the recommendations of the Commission. 
This legislation has passed out of committee and is being 
considered by the full Senate as these views are being written.
    On the House side, some members are clearly trying to cross 
the aisle to forge a bipartisan consensus about how to combat 
terrorism and make our nation safer. In particular, Reps. 
Maloney and Shays have introduced legislation that follows the 
carefully crafted Senate approach. We believe the Committee, 
and indeed the House, should have used this legislation as its 
starting point.
    Instead, we considered H.R. 10, legislation drafted by the 
Republican leadership.
    As introduced, H.R. 10 is deeply flawed. Rep. Jim Turner, 
the ranking member of the Select Committee on Homeland 
Security, released a ``Report Card on H.R. 10,'' which compares 
H.R. 10 to the Commission's recommendations and the Senate 
legislation. There are 41 ``bold faced'' recommendations in the 
Commission's report. Rep. Turner's analysis finds that H.R. 10 
fully implements only 11 of these recommendations. In contrast, 
16 recommendations are not addressed at all, and 14 are only 
partially implemented. Rep. Turner's comparison is attached to 
these minority views.
    At the same time, H.R. 10 includes controversial ``poison 
pills,'' like the new provisions that expand the Patriot Act. 
It also includes provisions allowing foreign nationals to be 
shipped to countries known to engage in torture, contrary to 
the nation's commitments under international law and the 
painful lessons of Abu Ghraib. In total, there are more than 40 
provisions in H.R. 10 that go beyond the Commission's 
recommendations.
    The missing components are not minor oversights. H.R. 10 
does not give the National Intelligence Director the full 
authority recommended by the Commission. It does not take the 
actions recommended by the Commission to prevent the 
proliferation of nuclear weapons. It falls short on border 
security, aviation security, and emergency response.
    At the Committee's hearing in August, former Navy Secretary 
John Lehman stated:

          It's time for an entirely new system of providing our 
        nation's leaders, and the congressional leaders with 
        the intelligence they need to make wise policy and 
        decisions. Our recommendations are not a Chinese menu. 
        They are a whole system. If all of the important 
        elements are not adopted, it makes it very difficult 
        for the others to succeed.

    The Commission's recommendations are a cohesive package. 
Picking and choosing among them effectively destroys the fabric 
that binds them together. Yet that is exactly what H.R. 10 
does.
    At the Committee's markup, several Democratic members 
attempted to correct some of these omissions by offering 
amendments to implement key Commission recommendations, such 
as: (1) choosing a single federal agency to conduct security 
clearance investigations; (2) establishing a civil liberties 
protection board; and (3) enhancing congressional oversight 
through the appointment of an Inspector General, a Chief 
Financial Officer, and similar officials, within the office of 
the National Intelligence Director.
    All of these proposed amendments were drawn from the 
Commission's report. They were drafted utilizing language 
contained in the bipartisan Senate legislation, and they 
mirrored language in the bipartisan House bills. Yet all of 
these amendments failed on virtually party-line votes.
    Democratic members of the Committee also attempted to 
improve the bill by stripping provisions that were extraneous 
to the Commission's recommendations. For example, language in 
the bill greatly diminishes congressional oversight by granting 
the executive branch wide authority to reorganize components of 
the intelligence community. Other language in the bill 
undermines long-standing financial disclosure requirements by 
exempting intelligence appointees from disclosing whether they 
have assets worth over $50 million, $25 million, or even $5 
million.
    None of these provisions was based on recommendations of 
the Commission. In addition, there is no similar language in 
the bipartisan Senate or House bills. Including such 
controversial and extraneous provisions not only endangers 
final passage of a House bill, but will needlessly complicate 
efforts by the House and Senate to come to final agreement in 
the conference committee. For these reasons, Democratic members 
offered amendments to strike these extraneous and unsupported 
provisions. These amendments failed on party-line votes.
    There were a few areas where the Committee was able to 
improve the bill on a bipartisan basis. For example, in 
negotiations prior to the mark-up, the Committee removed one 
extraneous provision that would have stripped collective 
bargaining rights from employees in the name of``homeland 
security.'' At the mark-up, the majority agreed to a Democratic 
amendment to establish a more efficient information sharing network to 
correct past failures to ``connect the dots'' among federal agencies. 
Unfortunately, this agreement was adopted only after the majority 
insisted on removing language that would have established a civil 
liberties board to monitor the use of this new information sharing 
network, as the Commission recommended.
    As this bill moves to the House floor, Democratic members 
are committed to working in a bipartisan manner to ensure that 
all of the Commission's recommendations are fully implemented, 
and that all extraneous provisions added by the House 
Republican leadership are removed. This goal is expressly 
endorsed by the Commission and is necessary to protect the 
nation and to make the legislation worthy of the sacrifices of 
the families and victims of the tragic events of September 11.
                                   Henry A. Waxman.
                                   Major R. Owens.
                                   Paul E. Kanjorski.
                                   Elijah E. Cummings.
                                   Danny K. Davis.
                                   Wm. Lacy Clay.
                                   Stephen F. Lynch.
                                   C.A. Dutch Ruppersberger.
                                   Tom Lantos.
                                   Edolphus Towns.
                                   Carolyn B. Maloney.
                                   Dennis J. Kucinich.
                                   John F. Tierney.
                                   Diane E. Watson.
                                   Linda T. Sanchez.
                                   Eleanor Holmes Norton.
                                   Jim Cooper.
                                   Bernard Sanders.
                                   Betty McCollum.
                                   Chris Van Hollen.

                                  
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