[House Report 108-796]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-796

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



 
        INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004

                                _______
                                

                December 7, 2004.--Ordered to be printed

                                _______
                                

Mr. Hoekstra, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany S. 2845]

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the 
``Intelligence Reform and Terrorism Prevention Act of 2004''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

              TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

Sec. 1001. Short title.

     Subtitle A--Establishment of Director of National Intelligence

Sec. 1011. Reorganization and improvement of management of intelligence 
          community.
Sec. 1012. Revised definition of national intelligence.
Sec. 1013. Joint procedures for operational coordination between 
          Department of Defense and Central Intelligence Agency.
Sec. 1014. Role of Director of National Intelligence in appointment of 
          certain officials responsible for intelligence-related 
          activities.
Sec. 1015. Executive Schedule matters.
Sec. 1016. Information sharing.
Sec. 1017. Alternative analysis of intelligence by the intelligence 
          community.
Sec. 1018. Presidential guidelines on implementation and preservation of 
          authorities.
Sec. 1019. Assignment of responsibilities relating to analytic 
          integrity.
Sec. 1020. Safeguard of objectivity in intelligence analysis.

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

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

            Subtitle C--Joint Intelligence Community Council

Sec. 1031. Joint Intelligence Community Council.

   Subtitle D--Improvement of Education for the Intelligence Community

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

     Subtitle E--Additional Improvements of Intelligence Activities

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

                 Subtitle F--Privacy and Civil Liberties

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

               Subtitle G--Conforming and Other Amendments

Sec. 1071. Conforming amendments relating to roles of Director of 
          National Intelligence and Director of the Central Intelligence 
          Agency.
Sec. 1072. Other conforming amendments.
Sec. 1073. Elements of intelligence community under National Security 
          Act of 1947.
Sec. 1074. Redesignation of National Foreign Intelligence Program as 
          National Intelligence Program.
Sec. 1075. Repeal of superseded authority.
Sec. 1076. Clerical amendments to National Security Act of 1947.
Sec. 1077. Conforming amendments relating to prohibiting dual service of 
          the Director of the Central Intelligence Agency.
Sec. 1078. Authority to establish inspector general for the Office of 
          the Director of National Intelligence.
Sec. 1079. Ethics matters.
Sec. 1080. Construction of authority of Director of National 
          Intelligence to acquire and manage property and services.
Sec. 1081. General references.

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

Sec. 1091. Transfer of Community Management Staff.
Sec. 1092. Transfer of Terrorist Threat Integration Center.
Sec. 1093. Termination of positions of Assistant Directors of Central 
          Intelligence.
Sec. 1094. Implementation plan.
Sec. 1095. Director of National Intelligence report on implementation of 
          intelligence community reform.
Sec. 1096. Transitional authorities.
Sec. 1097. Effective dates.

                        Subtitle I--Other Matters

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

                TITLE II--FEDERAL BUREAU OF INVESTIGATION

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

                     TITLE III--SECURITY CLEARANCES

Sec. 3001. Security clearances.

                    TITLE IV--TRANSPORTATION SECURITY

        Subtitle A--National Strategy for Transportation Security

Sec. 4001. National Strategy for Transportation Security.

                      Subtitle B--Aviation Security

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

                     Subtitle C--Air Cargo Security

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

                      Subtitle D--Maritime Security

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

                     Subtitle E--General Provisions

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

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

 Subtitle A--Advanced Technology Northern Border Security Pilot Program

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

             Subtitle B--Border and Immigration Enforcement

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

                      Subtitle C--Visa Requirements

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

                     Subtitle D--Immigration Reform

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

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

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

                     TITLE VI--TERRORISM PREVENTION

      Subtitle A--Individual Terrorists as Agents of Foreign Powers

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

          Subtitle B--Money Laundering and Terrorist Financing

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

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

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

                Subtitle D--Additional Enforcement Tools

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

             Subtitle E--Criminal History Background Checks

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

               Subtitle F--Grand Jury Information Sharing

Sec. 6501. Grand jury information sharing.

           Subtitle G--Providing Material Support to Terrorism

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

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

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

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

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

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

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

              Subtitle K--Pretrial Detention of Terrorists

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

      TITLE VII--IMPLEMENTATION OF 9/11 COMMISSION RECOMMENDATIONS

Sec. 7001. Short title.

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

Sec. 7101. Findings.
Sec. 7102. Terrorist sanctuaries.
Sec. 7103. United States commitment to the future of Pakistan.
Sec. 7104. Assistance for Afghanistan.
Sec. 7105. The relationship between the United States and Saudi Arabia.
Sec. 7106. Efforts to combat Islamist terrorism.
Sec. 7107. United States policy toward dictatorships.
Sec. 7108. Promotion of free media and other American values.
Sec. 7109. Public diplomacy responsibilities of the Department of State.
Sec. 7110. Public diplomacy training.
Sec. 7111. Promoting democracy and human rights at international 
          organizations.
Sec. 7112. Expansion of United States scholarship and exchange programs 
          in the Islamic world.
Sec. 7112. Pilot program to provide grants to American-sponsored schools 
          in predominantly Muslim countries to provide scholarships.
Sec. 7113. International Youth Opportunity Fund.
Sec. 7114. The use of economic policies to combat terrorism.
Sec. 7115. Middle East partnership initiative.
Sec. 7116. Comprehensive coalition strategy for fighting terrorism.
Sec. 7117. Financing of terrorism.
Sec. 7118. Designation of foreign terrorist organizations.
Sec. 7119. Report to Congress.
Sec. 7120. Case-Zablocki Act requirements.
Sec. 7121. Effective date.

          Subtitle B--Terrorist Travel and Effective Screening

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

                    Subtitle C--National Preparedness

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

                      Subtitle D--Homeland Security

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

                   Subtitle E--Public Safety Spectrum

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

                   Subtitle F--Presidential Transition

Sec. 7601. Presidential transition.

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

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

              Subtitle H--Emergency Financial Preparedness

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

                        TITLE VIII--OTHER MATTERS

                    Subtitle A--Intelligence Matters

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

           Subtitle B--Department of Homeland Security Matters

Sec. 8201. Homeland security geospatial information.

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

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

                        Subtitle D--Other Matters

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

             TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

SEC. 1001. SHORT TITLE.

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

     Subtitle A--Establishment of Director of National Intelligence

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

    (a) In General.--Title I of the National Security Act of 
1947 (50 U.S.C. 402 et seq.) is amended by striking sections 
102 through 104 and inserting the following new sections:

                  ``DIRECTOR OF NATIONAL INTELLIGENCE

    ``Sec. 102. (a) Director of National Intelligence.--(1) 
There is a Director of National Intelligence who shall be 
appointed by the President, by and with the advice and consent 
of the Senate. Any individual nominated for appointment as 
Director of National Intelligence shall have extensive national 
security expertise.
    ``(2) The Director of National Intelligence shall not be 
located within the Executive Office of the President.
    ``(b) Principal Responsibility.--Subject to the authority, 
direction, and control of the President, the Director of 
National Intelligence shall--
            ``(1) serve as head of the intelligence community;
            ``(2) act as the principal adviser to the 
        President, to the National Security Council, and the 
        Homeland Security Council for intelligence matters 
        related to the national security; and
            ``(3) consistent with section 1018 of the National 
        Security Intelligence Reform Act of 2004, oversee and 
        direct the implementation of the National Intelligence 
        Program.
    ``(c) Prohibition on Dual Service.--The individual serving 
in the position of Director of National Intelligence shall not, 
while so serving, also serve as the Director of the Central 
Intelligence Agency or as the head of any other element of the 
intelligence community.

    ``RESPONSIBILITIES AND AUTHORITIES OF THE DIRECTOR OF NATIONAL 
                              INTELLIGENCE

    ``Sec. 102A. (a) Provision of Intelligence.--(1) The 
Director of National Intelligence shall be responsible for 
ensuring that national intelligence is provided--
            ``(A) to the President;
            ``(B) to the heads of departments and agencies of 
        the executive branch;
            ``(C) to the Chairman of the Joint Chiefs of Staff 
        and senior military commanders;
            ``(D) to the Senate and House of Representatives 
        and the committees thereof; and
            ``(E) to such other persons as the Director of 
        National Intelligence determines to be appropriate.
    ``(2) Such national intelligence should be timely, 
objective, independent of political considerations, and based 
upon all sources available to the intelligence community and 
other appropriate entities.
    ``(b) Access to Intelligence.--Unless otherwise directed by 
the President, the Director of National Intelligence shall have 
access to all national intelligence and intelligence related to 
the national security which is collected by any Federal 
department, agency, or other entity, except as otherwise 
provided by law or, as appropriate, under guidelines agreed 
upon by the Attorney General and the Director of National 
Intelligence.
    ``(c) Budget Authorities.--(1) With respect to budget 
requests and appropriations for the National Intelligence 
Program, the Director of National Intelligence shall--
            ``(A) based on intelligence priorities set by the 
        President, provide to the heads of departments 
        containing agencies or organizations within the 
        intelligence community, and to the heads of such 
        agencies and organizations, guidance for developing the 
        National Intelligence Program budget pertaining to such 
        agencies and organizations;
            ``(B) based on budget proposals provided to the 
        Director of National Intelligence by the heads of 
        agencies and organizations within the intelligence 
        community and the heads of their respective departments 
        and, as appropriate, after obtaining the advice of the 
        Joint Intelligence Community Council, develop and 
        determine an annual consolidated National Intelligence 
        Program budget; and
            ``(C) present such consolidated National 
        Intelligence Program budget, together with any comments 
        from the heads of departments containing agencies or 
        organizations within the intelligence community, to the 
        President for approval.
    ``(2) In addition to the information provided under 
paragraph (1)(B), the heads of agencies and organizations 
within the intelligence community shall provide the Director of 
National Intelligence such other information as the Director 
shall request for the purpose of determining the annual 
consolidated National Intelligence Program budget under that 
paragraph.
    ``(3)(A) The Director of National Intelligence shall 
participate in the development by the Secretary of Defense of 
the annual budgets for the Joint Military Intelligence Program 
and for Tactical Intelligence and Related Activities.
    ``(B) The Director of National Intelligence shall provide 
guidance for the development of the annual budget for each 
element of the intelligence community that is not within the 
National Intelligence Program.
    ``(4) The Director of National Intelligence shall ensure 
the effective execution of the annual budget for intelligence 
and intelligence-related activities.
    ``(5)(A) The Director of National Intelligence shall be 
responsible for managing appropriations for the National 
Intelligence Program by directing the allotment or allocation 
of such appropriations through the heads of the departments 
containing agencies or organizations within the intelligence 
community and the Director of the Central Intelligence Agency, 
with prior notice (including the provision of appropriate 
supporting information) to the head of the department 
containing an agency or organization receiving any such 
allocation or allotment or the Director of the Central 
Intelligence Agency.
    ``(B) Notwithstanding any other provision of law, pursuant 
to relevant appropriations Acts for the National Intelligence 
Program, the Director of the Office of Management and Budget 
shall exercise the authority of the Director of the Office of 
Management and Budget to apportion funds, at the exclusive 
direction of the Director of National Intelligence, for 
allocation to the elements of the intelligence community 
through the relevant host executive departments and the Central 
Intelligence Agency. Department comptrollers or appropriate 
budget execution officers shall allot, allocate, reprogram, or 
transfer funds appropriated for the National Intelligence 
Program in an expeditious manner.
    ``(C) The Director of National Intelligence shall monitor 
the implementation and execution of the National Intelligence 
Program by the heads of the elements of the intelligence 
community that manage programs and activities that are part of 
the National Intelligence Program, which may include audits and 
evaluations.
    ``(6) Apportionment and allotment of funds under this 
subsection shall be subject to chapter 13 and section 1517 of 
title 31, United States Code, and the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.).
    ``(7)(A) The Director of National Intelligence shall 
provide a semi-annual report, beginning April 1, 2005, and 
ending April 1, 2007, to the President and the Congress 
regarding implementation of this section.
    ``(B) The Director of National Intelligence shall report to 
the President and the Congress not later than 15 days after 
learning of any instance in which a departmental comptroller 
acts in a manner inconsistent with the law (including permanent 
statutes, authorization Acts, and appropriations Acts), or the 
direction of the Director of National Intelligence, in carrying 
out the National Intelligence Program.
    ``(d) Role of Director of National Intelligence in Transfer 
and Reprogramming of Funds.--(1)(A) No funds made available 
under the National Intelligence Program may be transferred or 
reprogrammed without the prior approval of the Director of 
National Intelligence, except in accordance with procedures 
prescribed by the Director of National Intelligence.
    ``(B) The Secretary of Defense shall consult with the 
Director of National Intelligence before transferring or 
reprogramming funds made available under the Joint Military 
Intelligence Program.
    ``(2) Subject to the succeeding provisions of this 
subsection, the Director of National Intelligence may transfer 
or reprogram funds appropriated for a program within the 
National Intelligence Program to another such program.
    ``(3) The Director of National Intelligence may only 
transfer or reprogram funds referred to in subparagraph (A)--
            ``(A) with the approval of the Director of the 
        Office of Management and Budget; and
            ``(B) after consultation with the heads of 
        departments containing agencies or organizations within 
        the intelligence community to the extent such agencies 
        or organizations are affected, and, in the case of the 
        Central Intelligence Agency, after consultation with 
        the Director of the Central Intelligence Agency.
    ``(4) The amounts available for transfer or reprogramming 
in the National Intelligence Program in any given fiscal year, 
and the terms and conditions governing such transfers and 
reprogrammings, are subject to the provisions of annual 
appropriations Acts and this subsection.
    ``(5)(A) A transfer or reprogramming of funds or personnel 
may be made under this subsection only if--
            ``(i) the funds are being transferred to an 
        activity that is a higher priority intelligence 
        activity;
            ``(ii) the transfer or reprogramming supports an 
        emergent need, improves program effectiveness, or 
        increases efficiency;
            ``(iii) the transfer or reprogramming does not 
        involve a transfer or reprogramming of funds to a 
        Reserve for Contingencies of the Director of National 
        Intelligence or the Reserve for Contingencies of the 
        Central Intelligence Agency;
            ``(iv) the transfer or reprogramming results in a 
        cumulative transfer or reprogramming of funds out of 
        any department or agency, as appropriate, funded in the 
        National Intelligence Program in a single fiscal year--
                    ``(I) that is less than $150,000,000, and
                    ``(II) that is less than 5 percent of 
                amounts available to a department or agency 
                under the National Intelligence Program; and
            ``(v) the transfer or reprogramming does not 
        terminate an acquisition program.
    ``(B) A transfer or reprogramming may be made without 
regard to a limitation set forth in clause (iv) or (v) of 
subparagraph (A) if the transfer has the concurrence of the 
head of the department involved or the Director of the Central 
Intelligence Agency (in the case of the Central Intelligence 
Agency). The authority to provide such concurrence may only be 
delegated by the head of the department or agency involved to 
the deputy of such officer.
    ``(6) Funds transferred or reprogrammed under this 
subsection shall remain available for the same period as the 
appropriations account to which transferred or reprogrammed.
    ``(7) Any transfer or reprogramming of funds under this 
subsection shall be carried out in accordance with existing 
procedures applicable to reprogramming notifications for the 
appropriate congressional committees. Any proposed transfer or 
reprogramming for which notice is given to the appropriate 
congressional committees shall be accompanied by a report 
explaining the nature of the proposed transfer or reprogramming 
and how it satisfies the requirements of this subsection. In 
addition, the congressional intelligence committees shall be 
promptly notified of any transfer or reprogramming of funds 
made pursuant to this subsection in any case in which the 
transfer or reprogramming would not have otherwise required 
reprogramming notification under procedures in effect as of the 
date of the enactment of this subsection.
    ``(e) Transfer of Personnel.--(1)(A) In addition to any 
other authorities available under law for such purposes, in the 
first twelve months after establishment of a new national 
intelligence center, the Director of National Intelligence, 
with the approval of the Director of the Office of Management 
and Budget and in consultation with the congressional 
committees of jurisdiction referred to in subparagraph (B), may 
transfer not more than 100 personnel authorized for elements of 
the intelligence community to such center.
    ``(B) The Director of National Intelligence shall promptly 
provide notice of any transfer of personnel made pursuant to 
this paragraph to--
            ``(i) the congressional intelligence committees;
            ``(ii) the Committees on Appropriations of the 
        Senate and the House of Representatives;
            ``(iii) in the case of the transfer of personnel to 
        or from the Department of Defense, the Committees on 
        Armed Services of the Senate and the House of 
        Representatives; and
            ``(iv) in the case of the transfer of personnel to 
        or from the Department of Justice, to the Committees on 
        the Judiciary of the Senate and the House of 
        Representatives.
    ``(C) The Director shall include in any notice under 
subparagraph (B) an explanation of the nature of the transfer 
and how it satisfies the requirements of this subsection.
    ``(2)(A) The Director of National Intelligence, with the 
approval of the Director of the Office of Management and Budget 
and in accordance with procedures to be developed by the 
Director of National Intelligence and the heads of the 
departments and agencies concerned, may transfer personnel 
authorized for an element of the intelligence community to 
another such element for a period of not more than 2 years.
    ``(B) A transfer of personnel may be made under this 
paragraph only if--
            ``(i) the personnel are being transferred to an 
        activity that is a higher priority intelligence 
        activity; and
            ``(ii) the transfer supports an emergent need, 
        improves program effectiveness, or increases 
        efficiency.
    ``(C) The Director of National Intelligence shall promptly 
provide notice of any transfer of personnel made pursuant to 
this paragraph to--
            ``(i) the congressional intelligence committees;
            ``(ii) in the case of the transfer of personnel to 
        or from the Department of Defense, the Committees on 
        Armed Services of the Senate and the House of 
        Representatives; and
            ``(iii) in the case of the transfer of personnel to 
        or from the Department of Justice, to the Committees on 
        the Judiciary of the Senate and the House of 
        Representatives.
    ``(D) The Director shall include in any notice under 
subparagraph (C) an explanation of the nature of the transfer 
and how it satisfies the requirements of this paragraph.
    ``(3) It is the sense of Congress that--
            ``(A) the nature of the national security threats 
        facing the United States will continue to challenge the 
        intelligence community to respond rapidly and flexibly 
        to bring analytic resources to bear against emerging 
        and unforeseen requirements;
            ``(B) both the Office of the Director of National 
        Intelligence and any analytic centers determined to be 
        necessary should be fully and properly supported with 
        appropriate levels of personnel resources and that the 
        President's yearly budget requests adequately support 
        those needs; and
            ``(C) the President should utilize all legal and 
        administrative discretion to ensure that the Director 
        of National Intelligence and all other elements of the 
        intelligence community have the necessary resources and 
        procedures to respond promptly and effectively to 
        emerging and unforeseen national security challenges.
    ``(f) Tasking and Other Authorities.--(1)(A) The Director 
of National Intelligence shall--
            ``(i) establish objectives, priorities, and 
        guidance for the intelligence community to ensure 
        timely and effective collection, processing, analysis, 
        and dissemination (including access by users to 
        collected data consistent with applicable law and, as 
        appropriate, the guidelines referred to in subsection 
        (b) and analytic products generated by or within the 
        intelligence community) of national intelligence;
            ``(ii) determine requirements and priorities for, 
        and manage and direct the tasking of, collection, 
        analysis, production, and dissemination of national 
        intelligence by elements of the intelligence community, 
        including--
                    ``(I) approving requirements (including 
                those requirements responding to needs provided 
                by consumers) for collection and analysis; and
                    ``(II) resolving conflicts in collection 
                requirements and in the tasking of national 
                collection assets of the elements of the 
                intelligence community; and
            ``(iii) provide advisory tasking to intelligence 
        elements of those agencies and departments not within 
        the National Intelligence Program.
    ``(B) The authority of the Director of National 
Intelligence under subparagraph (A) shall not apply--
            ``(i) insofar as the President so directs;
            ``(ii) with respect to clause (ii) of subparagraph 
        (A), insofar as the Secretary of Defense exercises 
        tasking authority under plans or arrangements agreed 
        upon by the Secretary of Defense and the Director of 
        National Intelligence; or
            ``(iii) to the direct dissemination of information 
        to State government and local government officials and 
        private sector entities pursuant to sections 201 and 
        892 of the Homeland Security Act of 2002 (6 U.S.C. 121, 
        482).
    ``(2) The Director of National Intelligence shall oversee 
the National Counterterrorism Center and may establish such 
other national intelligence centers as the Director determines 
necessary.
    ``(3)(A) The Director of National Intelligence shall 
prescribe, in consultation with the heads of other agencies or 
elements of the intelligence community, and the heads of their 
respective departments, personnel policies and programs 
applicable to the intelligence community that--
            ``(i) encourage and facilitate assignments and 
        details of personnel to national intelligence centers, 
        and between elements of the intelligence community;
            ``(ii) set standards for education, training, and 
        career development of personnel of the intelligence 
        community;
            ``(iii) encourage and facilitate the recruitment 
        and retention by the intelligence community of highly 
        qualified individuals for the effective conduct of 
        intelligence activities;
            ``(iv) ensure that the personnel of the 
        intelligence community are sufficiently diverse for 
        purposes of the collection and analysis of intelligence 
        through the recruitment and training of women, 
        minorities, and individuals with diverse ethnic, 
        cultural, and linguistic backgrounds;
            ``(v) make service in more than one element of the 
        intelligence community a condition of promotion to such 
        positions within the intelligence community as the 
        Director shall specify; and
            ``(vi) ensure the effective management of 
        intelligence community personnel who are responsible 
        for intelligence community-wide matters.
    ``(B) Policies prescribed under subparagraph (A) shall not 
be inconsistent with the personnel policies otherwise 
applicable to members of the uniformed services.
    ``(4) The Director of National Intelligence shall ensure 
compliance with the Constitution and laws of the United States 
by the Central Intelligence Agency and shall ensure such 
compliance by other elements of the intelligence community 
through the host executive departments that manage the programs 
and activities that are part of the National Intelligence 
Program.
    ``(5) The Director of National Intelligence shall ensure 
the elimination of waste and unnecessary duplication within the 
intelligence community.
    ``(6) The Director of National Intelligence shall establish 
requirements and priorities for foreign intelligence 
information to be collected under the Foreign Intelligence 
Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), and provide 
assistance to the Attorney General to ensure that information 
derived from electronic surveillance or physical searches under 
that Act is disseminated so it may be used efficiently and 
effectively for national intelligence purposes, except that the 
Director shall have no authority to direct or undertake 
electronic surveillance or physical search operations pursuant 
to that Act unless authorized by statute or Executive order.
    ``(7) The Director of National Intelligence shall perform 
such other functions as the President may direct.
    ``(8) Nothing in this title shall be construed as affecting 
the role of the Department of Justice or the Attorney General 
under the Foreign Intelligence Surveillance Act of 1978.
    ``(g) Intelligence Information Sharing.--(1) The Director 
of National Intelligence shall have principal authority to 
ensure maximum availability of and access to intelligence 
information within the intelligence community consistent with 
national security requirements. The Director of National 
Intelligence shall--
            ``(A) establish uniform security standards and 
        procedures;
            ``(B) establish common information technology 
        standards, protocols, and interfaces;
            ``(C) ensure development of information technology 
        systems that include multi-level security and 
        intelligence integration capabilities;
            ``(D) establish policies and procedures to resolve 
        conflicts between the need to share intelligence 
        information and the need to protect intelligence 
        sources and methods;
            ``(E) develop an enterprise architecture for the 
        intelligence community and ensure that elements of the 
        intelligence community comply with such architecture; 
        and
            ``(F) have procurement approval authority over all 
        enterprise architecture-related information technology 
        items funded in the National Intelligence Program.
    ``(2) The President shall ensure that the Director of 
National Intelligence has all necessary support and authorities 
to fully and effectively implement paragraph (1).
    ``(3) Except as otherwise directed by the President or with 
the specific written agreement of the head of the department or 
agency in question, a Federal agency or official shall not be 
considered to have met any obligation to provide any 
information, report, assessment, or other material (including 
unevaluated intelligence information) to that department or 
agency solely by virtue of having provided that information, 
report, assessment, or other material to the Director of 
National Intelligence or the National Counterterrorism Center.
    ``(4) Not later than February 1 of each year, the Director 
of National Intelligence shall submit to the President and to 
the Congress an annual report that identifies any statute, 
regulation, policy, or practice that the Director believes 
impedes the ability of the Director to fully and effectively 
implement paragraph (1).
    ``(h) Analysis.--To ensure the most accurate analysis of 
intelligence is derived from all sources to support national 
security needs, the Director of National Intelligence shall--
            ``(1) implement policies and procedures--
                    ``(A) to encourage sound analytic methods 
                and tradecraft throughout the elements of the 
                intelligence community;
                    ``(B) to ensure that analysis is based upon 
                all sources available; and
                    ``(C) to ensure that the elements of the 
                intelligence community regularly conduct 
                competitive analysis of analytic products, 
                whether such products are produced by or 
                disseminated to such elements;
            ``(2) ensure that resource allocation for 
        intelligence analysis is appropriately proportional to 
        resource allocation for intelligence collection systems 
        and operations in order to maximize analysis of all 
        collected data;
            ``(3) ensure that differences in analytic judgment 
        are fully considered and brought to the attention of 
        policymakers; and
            ``(4) ensure that sufficient relationships are 
        established between intelligence collectors and 
        analysts to facilitate greater understanding of the 
        needs of analysts.
    ``(i) Protection of Intelligence Sources and Methods.--(1) 
The Director of National Intelligence shall protect 
intelligence sources and methods from unauthorized disclosure.
    ``(2) Consistent with paragraph (1), in order to maximize 
the dissemination of intelligence, the Director of National 
Intelligence shall establish and implement guidelines for the 
intelligence community for the following purposes:
            ``(A) Classification of information under 
        applicable law, Executive orders, or other Presidential 
        directives.
            ``(B) Access to and dissemination of intelligence, 
        both in final form and in the form when initially 
        gathered.
            ``(C) Preparation of intelligence products in such 
        a way that source information is removed to allow for 
        dissemination at the lowest level of classification 
        possible or in unclassified form to the extent 
        practicable.
    ``(3) The Director may only delegate a duty or authority 
given the Director under this subsection to the Principal 
Deputy Director of National Intelligence.
    ``(j) Uniform Procedures for Sensitive Compartmented 
Information.--The Director of National Intelligence, subject to 
the direction of the President, shall--
            ``(1) establish uniform standards and procedures 
        for the grant of access to sensitive compartmented 
        information to any officer or employee of any agency or 
        department of the United States and to employees of 
        contractors of those agencies or departments;
            ``(2) ensure the consistent implementation of those 
        standards and procedures throughout such agencies and 
        departments;
            ``(3) ensure that security clearances granted by 
        individual elements of the intelligence community are 
        recognized by all elements of the intelligence 
        community, and under contracts entered into by those 
        agencies; and
            ``(4) ensure that the process for investigation and 
        adjudication of an application for access to sensitive 
        compartmented information is performed in the most 
        expeditious manner possible consistent with applicable 
        standards for national security.
    ``(k) Coordination With Foreign Governments.--Under the 
direction of the President and in a manner consistent with 
section 207 of the Foreign Service Act of 1980 (22 U.S.C. 
3927), the Director of National Intelligence shall oversee the 
coordination of the relationships between elements of the 
intelligence community and the intelligence or security 
services of foreign governments or international organizations 
on all matters involving intelligence related to the national 
security or involving intelligence acquired through clandestine 
means.
    ``(l) Enhanced Personnel Management.--(1)(A) The Director 
of National Intelligence shall, under regulations prescribed by 
the Director, provide incentives for personnel of elements of 
the intelligence community to serve--
            ``(i) on the staff of the Director of National 
        Intelligence;
            ``(ii) on the staff of the national intelligence 
        centers;
            ``(iii) on the staff of the National 
        Counterterrorism Center; and
            ``(iv) in other positions in support of the 
        intelligence community management functions of the 
        Director.
    ``(B) Incentives under subparagraph (A) may include 
financial incentives, bonuses, and such other awards and 
incentives as the Director considers appropriate.
    ``(2)(A) Notwithstanding any other provision of law, the 
personnel of an element of the intelligence community who are 
assigned or detailed under paragraph (1)(A) to service under 
the Director of National Intelligence shall be promoted at 
rates equivalent to or better than personnel of such element 
who are not so assigned or detailed.
    ``(B) The Director may prescribe regulations to carry out 
this section.
    ``(3)(A) The Director of National Intelligence shall 
prescribe mechanisms to facilitate the rotation of personnel of 
the intelligence community through various elements of the 
intelligence community in the course of their careers in order 
to facilitate the widest possible understanding by such 
personnel of the variety of intelligence requirements, methods, 
users, and capabilities.
    ``(B) The mechanisms prescribed under subparagraph (A) may 
include the following:
            ``(i) The establishment of special occupational 
        categories involving service, over the course of a 
        career, in more than one element of the intelligence 
        community.
            ``(ii) The provision of rewards for service in 
        positions undertaking analysis and planning of 
        operations involving two or more elements of the 
        intelligence community.
            ``(iii) The establishment of requirements for 
        education, training, service, and evaluation for 
        service involving more than one element of the 
        intelligence community.
    ``(C) It is the sense of Congress that the mechanisms 
prescribed under this subsection should, to the extent 
practical, seek to duplicate for civilian personnel within the 
intelligence community the joint officer management policies 
established by chapter 38 of title 10, United States Code, and 
the other amendments made by title IV of the Goldwater-Nichols 
Department of Defense Reorganization Act of 1986 (Public Law 
99-433).
    ``(4)(A) Except as provided in subparagraph (B) and 
subparagraph (D), this subsection shall not apply with respect 
to personnel of the elements of the intelligence community who 
are members of the uniformed services.
    ``(B) Mechanisms that establish requirements for education 
and training pursuant to paragraph (3)(B)(iii) may apply with 
respect to members of the uniformed services who are assigned 
to an element of the intelligence community funded through the 
National Intelligence Program, but such mechanisms shall not be 
inconsistent with personnel policies and education and training 
requirements otherwise applicable to members of the uniformed 
services.
    ``(C) The personnel policies and programs developed and 
implemented under this subsection with respect to law 
enforcement officers (as that term is defined in section 
5541(3) of title 5, United States Code) shall not affect the 
ability of law enforcement entities to conduct operations or, 
through the applicable chain of command, to control the 
activities of such law enforcement officers.
    ``(D) Assignment to the Office of the Director of National 
Intelligence of commissioned officers of the Armed Forces shall 
be considered a joint-duty assignment for purposes of the joint 
officer management policies prescribed by chapter 38 of title 
10, United States Code, and other provisions of that title.
    ``(m) Additional Authority With Respect to Personnel.--(1) 
In addition to the authorities under subsection (f)(3), the 
Director of National Intelligence may exercise with respect to 
the personnel of the Office of the Director of National 
Intelligence any authority of the Director of the Central 
Intelligence Agency with respect to the personnel of the 
Central Intelligence Agency under the Central Intelligence 
Agency Act of 1949 (50 U.S.C. 403a et seq.), and other 
applicable provisions of law, as of the date of the enactment 
of this subsection to the same extent, and subject to the same 
conditions and limitations, that the Director of the Central 
Intelligence Agency may exercise such authority with respect to 
personnel of the Central Intelligence Agency.
    ``(2) Employees and applicants for employment of the Office 
of the Director of National Intelligence shall have the same 
rights and protections under the Office of the Director of 
National Intelligence as employees of the Central Intelligence 
Agency have under the Central Intelligence Agency Act of 1949, 
and other applicable provisions of law, as of the date of the 
enactment of this subsection.
    ``(n) Acquisition Authorities.--(1) In carrying out the 
responsibilities and authorities under this section, the 
Director of National Intelligence may exercise the acquisition 
and appropriations authorities referred to in the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) other 
than the authorities referred to in section 8(b) of that Act 
(50 U.S.C. 403j(b)).
    ``(2) For the purpose of the exercise of any authority 
referred to in paragraph (1), a reference to the head of an 
agency shall be deemed to be a reference to the Director of 
National Intelligence or the Principal Deputy Director of 
National Intelligence.
    ``(3)(A) Any determination or decision to be made under an 
authority referred to in paragraph (1) by the head of an agency 
may be made with respect to individual purchases and contracts 
or with respect to classes of purchases or contracts, and shall 
be final.
    ``(B) Except as provided in subparagraph (C), the Director 
of National Intelligence or the Principal Deputy Director of 
National Intelligence may, in such official's discretion, 
delegate to any officer or other official of the Office of the 
Director of National Intelligence any authority to make a 
determination or decision as the head of the agency under an 
authority referred to in paragraph (1).
    ``(C) The limitations and conditions set forth in section 
3(d) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
403c(d)) shall apply to the exercise by the Director of 
National Intelligence of an authority referred to in paragraph 
(1).
    ``(D) Each determination or decision required by an 
authority referred to in the second sentence of section 3(d) of 
the Central Intelligence Agency Act of 1949 shall be based upon 
written findings made by the official making such determination 
or decision, which findings shall be final and shall be 
available within the Office of the Director of National 
Intelligence for a period of at least six years following the 
date of such determination or decision.
    ``(o) Consideration of Views of Elements of Intelligence 
Community.--In carrying out the duties and responsibilities 
under this section, the Director of National Intelligence shall 
take into account the views of a head of a department 
containing an element of the intelligence community and of the 
Director of the Central Intelligence Agency.
    ``(p) Responsibility of Director of National Intelligence 
Regarding National Intelligence Program Budget Concerning the 
Department of Defense.--Subject to the direction of the 
President, the Director of National Intelligence shall, after 
consultation with the Secretary of Defense, ensure that the 
National Intelligence Program budgets for the elements of the 
intelligence community that are within the Department of 
Defense are adequate to satisfy the national intelligence needs 
of the Department of Defense, including the needs of the 
Chairman of the Joint Chiefs of Staff and the commanders of the 
unified and specified commands, and wherever such elements are 
performing Government-wide functions, the needs of other 
Federal departments and agencies.
    ``(q) Acquisitions of Major Systems.--(1) For each 
intelligence program within the National Intelligence Program 
for the acquisition of a major system, the Director of National 
Intelligence shall--
            ``(A) require the development and implementation of 
        a program management plan that includes cost, schedule, 
        and performance goals and program milestone criteria, 
        except that with respect to Department of Defense 
        programs the Director shall consult with the Secretary 
        of Defense;
            ``(B) serve as exclusive milestone decision 
        authority, except that with respect to Department of 
        Defense programs the Director shall serve as milestone 
        decision authority jointly with the Secretary of 
        Defense or the designee of the Secretary; and
            ``(C) periodically--
                    ``(i) review and assess the progress made 
                toward the achievement of the goals and 
                milestones established in such plan; and
                    ``(ii) submit to Congress a report on the 
                results of such review and assessment.
    ``(2) If the Director of National Intelligence and the 
Secretary of Defense are unable to reach an agreement on a 
milestone decision under paragraph (1)(B), the President shall 
resolve the conflict.
    ``(3) Nothing in this subsection may be construed to limit 
the authority of the Director of National Intelligence to 
delegate to any other official any authority to perform the 
responsibilities of the Director under this subsection.
    ``(4) In this subsection:
            ``(A) The term `intelligence program', with respect 
        to the acquisition of a major system, means a program 
        that--
                    ``(i) is carried out to acquire such major 
                system for an element of the intelligence 
                community; and
                    ``(ii) is funded in whole out of amounts 
                available for the National Intelligence 
                Program.
            ``(B) The term `major system' has the meaning given 
        such term in section 4(9) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 403(9)).
    ``(r) Performance of Common Services.--The Director of 
National Intelligence shall, in consultation with the heads of 
departments and agencies of the United States Government 
containing elements within the intelligence community and with 
the Director of the Central Intelligence Agency, coordinate the 
performance by the elements of the intelligence community 
within the National Intelligence Program of such services as 
are of common concern to the intelligence community, which 
services the Director of National Intelligence determines can 
be more efficiently accomplished in a consolidated manner.

           ``OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE

    ``Sec. 103. (a) Office of Director of National 
Intelligence.--There is an Office of the Director of National 
Intelligence.
    ``(b) Function.--The function of the Office of the Director 
of National Intelligence is to assist the Director of National 
Intelligence in carrying out the duties and responsibilities of 
the Director under this Act, the National Security Act of 1947 
(50 U.S.C. 401 et seq.), and other applicable provisions of 
law, and to carry out such other duties as may be prescribed by 
the President or by law.
    ``(c) Composition.--The Office of the Director of National 
Intelligence is composed of the following:
            ``(1) The Director of National Intelligence.
            ``(2) The Principal Deputy Director of National 
        Intelligence.
            ``(3) Any Deputy Director of National Intelligence 
        appointed under section 103A.
            ``(4) The National Intelligence Council.
            ``(5) The General Counsel.
            ``(6) The Civil Liberties Protection Officer.
            ``(7) The Director of Science and Technology.
            ``(8) The National Counterintelligence Executive 
        (including the Office of the National 
        Counterintelligence Executive).
            ``(9) Such other offices and officials as may be 
        established by law or the Director may establish or 
        designate in the Office, including national 
        intelligence centers.
    ``(d) Staff.--(1) To assist the Director of National 
Intelligence in fulfilling the duties and responsibilities of 
the Director, the Director shall employ and utilize in the 
Office of the Director of National Intelligence a professional 
staff having an expertise in matters relating to such duties 
and responsibilities, and may establish permanent positions and 
appropriate rates of pay with respect to that staff.
    ``(2) The staff of the Office of the Director of National 
Intelligence under paragraph (1) shall include the staff of the 
Office of the Deputy Director of Central Intelligence for 
Community Management that is transferred to the Office of the 
Director of National Intelligence under section 1091 of the 
National Security Intelligence Reform Act of 2004.
    ``(e) Limitation on Co-Location With Other Elements of 
Intelligence Community.--Commencing as of October 1, 2008, the 
Office of the Director of National Intelligence may not be co-
located with any other element of the intelligence community.

              ``DEPUTY DIRECTORS OF NATIONAL INTELLIGENCE

    ``Sec. 103A. (a) Principal Deputy Director of National 
Intelligence.--(1) There is a Principal Deputy Director of 
National Intelligence who shall be appointed by the President, 
by and with the advice and consent of the Senate.
    ``(2) In the event of a vacancy in the position of 
Principal Deputy Director of National Intelligence, the 
Director of National Intelligence shall recommend to the 
President an individual for appointment as Principal Deputy 
Director of National Intelligence.
    ``(3) Any individual nominated for appointment as Principal 
Deputy Director of National Intelligence shall have extensive 
national security experience and management expertise.
    ``(4) The individual serving as Principal Deputy Director 
of National Intelligence shall not, while so serving, serve in 
any capacity in any other element of the intelligence 
community.
    ``(5) The Principal Deputy Director of National 
Intelligence shall assist the Director of National Intelligence 
in carrying out the duties and responsibilities of the 
Director.
    ``(6) The Principal Deputy Director of National 
Intelligence shall act for, and exercise the powers of, the 
Director of National Intelligence during the absence or 
disability of the Director of National Intelligence or during a 
vacancy in the position of Director of National Intelligence.
    ``(b) Deputy Directors of National Intelligence.--(1) There 
may be not more than four Deputy Directors of National 
Intelligence who shall be appointed by the Director of National 
Intelligence.
    ``(2) Each Deputy Director of National Intelligence 
appointed under this subsection shall have such duties, 
responsibilities, and authorities as the Director of National 
Intelligence may assign or are specified by law.
    ``(c) Military Status of Director of National Intelligence 
and Principal Deputy Director of National Intelligence.--(1) 
Not more than one of the individuals serving in the positions 
specified in paragraph (2) may be a commissioned officer of the 
Armed Forces in active status.
    ``(2) The positions referred to in this paragraph are the 
following:
            ``(A) The Director of National Intelligence.
            ``(B) The Principal Deputy Director of National 
        Intelligence.
    ``(3) It is the sense of Congress that, under ordinary 
circumstances, it is desirable that one of the individuals 
serving in the positions specified in paragraph (2)--
            ``(A) be a commissioned officer of the Armed 
        Forces, in active status; or
            ``(B) have, by training or experience, an 
        appreciation of military intelligence activities and 
        requirements.
    ``(4) A commissioned officer of the Armed Forces, while 
serving in a position specified in paragraph (2)--
            ``(A) shall not be subject to supervision or 
        control by the Secretary of Defense or by any officer 
        or employee of the Department of Defense;
            ``(B) shall not exercise, by reason of the 
        officer's status as a commissioned officer, any 
        supervision or control with respect to any of the 
        military or civilian personnel of the Department of 
        Defense except as otherwise authorized by law; and
            ``(C) shall not be counted against the numbers and 
        percentages of commissioned officers of the rank and 
        grade of such officer authorized for the military 
        department of that officer.
    ``(5) Except as provided in subparagraph (A) or (B) of 
paragraph (4), the appointment of an officer of the Armed 
Forces to a position specified in paragraph (2) shall not 
affect the status, position, rank, or grade of such officer in 
the Armed Forces, or any emolument, perquisite, right, 
privilege, or benefit incident to or arising out of such 
status, position, rank, or grade.
    ``(6) A commissioned officer of the Armed Forces on active 
duty who is appointed to a position specified in paragraph (2), 
while serving in such position and while remaining on active 
duty, shall continue to receive military pay and allowances and 
shall not receive the pay prescribed for such position. Funds 
from which such pay and allowances are paid shall be reimbursed 
from funds available to the Director of National Intelligence.

                    ``NATIONAL INTELLIGENCE COUNCIL

    ``Sec. 103B. (a) National Intelligence Council.--There is a 
National Intelligence Council.
    ``(b) Composition.--(1) The National Intelligence Council 
shall be composed of senior analysts within the intelligence 
community and substantive experts from the public and private 
sector, who shall be appointed by, report to, and serve at the 
pleasure of, the Director of National Intelligence.
    ``(2) The Director shall prescribe appropriate security 
requirements for personnel appointed from the private sector as 
a condition of service on the Council, or as contractors of the 
Council or employees of such contractors, to ensure the 
protection of intelligence sources and methods while avoiding, 
wherever possible, unduly intrusive requirements which the 
Director considers to be unnecessary for this purpose.
    ``(c) Duties and Responsibilities.--(1) The National 
Intelligence Council shall--
            ``(A) produce national intelligence estimates for 
        the United States Government, including alternative 
        views held by elements of the intelligence community 
        and other information as specified in paragraph (2);
            ``(B) evaluate community-wide collection and 
        production of intelligence by the intelligence 
        community and the requirements and resources of such 
        collection and production; and
            ``(C) otherwise assist the Director of National 
        Intelligence in carrying out the responsibilities of 
        the Director under section 102A.
    ``(2) The Director of National Intelligence shall ensure 
that the Council satisfies the needs of policymakers and other 
consumers of intelligence.
    ``(d) Service as Senior Intelligence Advisers.--Within 
their respective areas of expertise and under the direction of 
the Director of National Intelligence, the members of the 
National Intelligence Council shall constitute the senior 
intelligence advisers of the intelligence community for 
purposes of representing the views of the intelligence 
community within the United States Government.
    ``(e) Authority To Contract.--Subject to the direction and 
control of the Director of National Intelligence, the National 
Intelligence Council may carry out its responsibilities under 
this section by contract, including contracts for substantive 
experts necessary to assist the Council with particular 
assessments under this section.
    ``(f) Staff.--The Director of National Intelligence shall 
make available to the National Intelligence Council such staff 
as may be necessary to permit the Council to carry out its 
responsibilities under this section.
    ``(g) Availability of Council and Staff.--(1) The Director 
of National Intelligence shall take appropriate measures to 
ensure that the National Intelligence Council and its staff 
satisfy the needs of policymaking officials and other consumers 
of intelligence.
    ``(2) The Council shall be readily accessible to 
policymaking officials and other appropriate individuals not 
otherwise associated with the intelligence community.
    ``(h) Support.--The heads of the elements of the 
intelligence community shall, as appropriate, furnish such 
support to the National Intelligence Council, including the 
preparation of intelligence analyses, as may be required by the 
Director of National Intelligence.
    ``(i) National Intelligence Council Product.--For purposes 
of this section, the term `National Intelligence Council 
product' includes a National Intelligence Estimate and any 
other intelligence community assessment that sets forth the 
judgment of the intelligence community as a whole on a matter 
covered by such product.

                           ``GENERAL COUNSEL

    ``Sec. 103C. (a) General Counsel.--There is a General 
Counsel of the Office of the Director of National Intelligence 
who shall be appointed by the President, by and with the advice 
and consent of the Senate.
    ``(b) Prohibition on Dual Service as General Counsel of 
Another Agency.--The individual serving in the position of 
General Counsel may not, while so serving, also serve as the 
General Counsel of any other department, agency, or element of 
the United States Government.
    ``(c) Scope of Position.--The General Counsel is the chief 
legal officer of the Office of the Director of National 
Intelligence.
    ``(d) Functions.--The General Counsel shall perform such 
functions as the Director of National Intelligence may 
prescribe.

                  ``CIVIL LIBERTIES PROTECTION OFFICER

    ``Sec. 103D. (a) Civil Liberties Protection Officer.--(1) 
Within the Office of the Director of National Intelligence, 
there is a Civil Liberties Protection Officer who shall be 
appointed by the Director of National Intelligence.
    ``(2) The Civil Liberties Protection Officer shall report 
directly to the Director of National Intelligence.
    ``(b) Duties.--The Civil Liberties Protection Officer 
shall--
            ``(1) ensure that the protection of civil liberties 
        and privacy is appropriately incorporated in the 
        policies and procedures developed for and implemented 
        by the Office of the Director of National Intelligence 
        and the elements of the intelligence community within 
        the National Intelligence Program;
            ``(2) oversee compliance by the Office and the 
        Director of National Intelligence with requirements 
        under the Constitution and all laws, regulations, 
        Executive orders, and implementing guidelines relating 
        to civil liberties and privacy;
            ``(3) review and assess complaints and other 
        information indicating possible abuses of civil 
        liberties and privacy in the administration of the 
        programs and operations of the Office and the Director 
        of National Intelligence and, as appropriate, 
        investigate any such complaint or information;
            ``(4) ensure that the use of technologies sustain, 
        and do not erode, privacy protections relating to the 
        use, collection, and disclosure of personal 
        information;
            ``(5) ensure that personal information contained in 
        a system of records subject to section 552a of title 5, 
        United States Code (popularly referred to as the 
        `Privacy Act'), is handled in full compliance with fair 
        information practices as set out in that section;
            ``(6) conduct privacy impact assessments when 
        appropriate or as required by law; and
            ``(7) perform such other duties as may be 
        prescribed by the Director of National Intelligence or 
        specified by law.
    ``(c) Use of Agency Inspectors General.--When appropriate, 
the Civil Liberties Protection Officer may refer complaints to 
the Office of Inspector General having responsibility for the 
affected element of the department or agency of the 
intelligence community to conduct an investigation under 
paragraph (3) of subsection (b).

                  ``DIRECTOR OF SCIENCE AND TECHNOLOGY

    ``Sec. 103E. (a) Director of Science and Technology.--There 
is a Director of Science and Technology within the Office of 
the Director of National Intelligence who shall be appointed by 
the Director of National Intelligence.
    ``(b) Requirement Relating to Appointment.--An individual 
appointed as Director of Science and Technology shall have a 
professional background and experience appropriate for the 
duties of the Director of Science and Technology.
    ``(c) Duties.--The Director of Science and Technology 
shall--
            ``(1) act as the chief representative of the 
        Director of National Intelligence for science and 
        technology;
            ``(2) chair the Director of National Intelligence 
        Science and Technology Committee under subsection (d);
            ``(3) assist the Director in formulating a long-
        term strategy for scientific advances in the field of 
        intelligence;
            ``(4) assist the Director on the science and 
        technology elements of the budget of the Office of the 
        Director of National Intelligence; and
            ``(5) perform other such duties as may be 
        prescribed by the Director of National Intelligence or 
        specified by law.
    ``(d) Director of National Intelligence Science and 
Technology Committee.--(1) There is within the Office of the 
Director of Science and Technology a Director of National 
Intelligence Science and Technology Committee.
    ``(2) The Committee shall be composed of the principal 
science officers of the National Intelligence Program.
    ``(3) The Committee shall--
            ``(A) coordinate advances in research and 
        development related to intelligence; and
            ``(B) perform such other functions as the Director 
        of Science and Technology shall prescribe.

                ``NATIONAL COUNTERINTELLIGENCE EXECUTIVE

    ``Sec. 103F. (a) National Counterintelligence Executive.--
The National Counterintelligence Executive under section 902 of 
the Counterintelligence Enhancement Act of 2002 (title IX of 
Public Law 107-306; 50 U.S.C. 402b et seq.) is a component of 
the Office of the Director of National Intelligence.
    ``(b) Duties.--The National Counterintelligence Executive 
shall perform the duties provided in the Counterintelligence 
Enhancement Act of 2002 and such other duties as may be 
prescribed by the Director of National Intelligence or 
specified by law.

                     ``CENTRAL INTELLIGENCE AGENCY

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

             ``DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY

    ``Sec. 104A. (a) Director of Central Intelligence Agency.--
There is a Director of the Central Intelligence Agency who 
shall be appointed by the President, by and with the advice and 
consent of the Senate.
    ``(b) Supervision.--The Director of the Central 
Intelligence Agency shall report to the Director of National 
Intelligence regarding the activities of the Central 
Intelligence Agency.
    ``(c) Duties.--The Director of the Central Intelligence 
Agency shall--
            ``(1) serve as the head of the Central Intelligence 
        Agency; and
            ``(2) carry out the responsibilities specified in 
        subsection (d).
    ``(d) Responsibilities.--The Director of the Central 
Intelligence Agency shall--
            ``(1) collect intelligence through human sources 
        and by other appropriate means, except that the 
        Director of the Central Intelligence Agency shall have 
        no police, subpoena, or law enforcement powers or 
        internal security functions;
            ``(2) correlate and evaluate intelligence related 
        to the national security and provide appropriate 
        dissemination of such intelligence;
            ``(3) provide overall direction for and 
        coordination of the collection of national intelligence 
        outside the United States through human sources by 
        elements of the intelligence community authorized to 
        undertake such collection and, in coordination with 
        other departments, agencies, or elements of the United 
        States Government which are authorized to undertake 
        such collection, ensure that the most effective use is 
        made of resources and that appropriate account is taken 
        of the risks to the United States and those involved in 
        such collection; and
            ``(4) perform such other functions and duties 
        related to intelligence affecting the national security 
        as the President or the Director of National 
        Intelligence may direct.
    ``(e) Termination of Employment of CIA Employees.--(1) 
Notwithstanding the provisions of any other law, the Director 
of the Central Intelligence Agency may, in the discretion of 
the Director, terminate the employment of any officer or 
employee of the Central Intelligence Agency whenever the 
Director deems the termination of employment of such officer or 
employee necessary or advisable in the interests of the United 
States.
    ``(2) Any termination of employment of an officer or 
employee under paragraph (1) shall not affect the right of the 
officer or employee to seek or accept employment in any other 
department, agency, or element of the United States Government 
if declared eligible for such employment by the Office of 
Personnel Management.
    ``(f) Coordination With Foreign Governments.--Under the 
direction of the Director of National Intelligence and in a 
manner consistent with section 207 of the Foreign Service Act 
of 1980 (22 U.S.C. 3927), the Director of the Central 
Intelligence Agency shall coordinate the relationships between 
elements of the intelligence community and the intelligence or 
security services of foreign governments or international 
organizations on all matters involving intelligence related to 
the national security or involving intelligence acquired 
through clandestine means.''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the human intelligence officers of the 
        intelligence community have performed admirably and 
        honorably in the face of great personal dangers;
            (2) during an extended period of unprecedented 
        investment and improvements in technical collection 
        means, the human intelligence capabilities of the 
        United States have not received the necessary and 
        commensurate priorities;
            (3) human intelligence is becoming an increasingly 
        important capability to provide information on the 
        asymmetric threats to the national security of the 
        United States;
            (4) the continued development and improvement of a 
        robust and empowered and flexible human intelligence 
        work force is critical to identifying, understanding, 
        and countering the plans and intentions of the 
        adversaries of the United States; and
            (5) an increased emphasis on, and resources applied 
        to, enhancing the depth and breadth of human 
        intelligence capabilities of the United States 
        intelligence community must be among the top priorities 
        of the Director of National Intelligence.
    (c) Transformation of Central Intelligence Agency.--The 
Director of the Central Intelligence Agency shall, in 
accordance with standards developed by the Director in 
consultation with the Director of National Intelligence--
            (1) enhance the analytic, human intelligence, and 
        other capabilities of the Central Intelligence Agency;
            (2) develop and maintain an effective language 
        program within the Agency;
            (3) emphasize the hiring of personnel of diverse 
        backgrounds for purposes of improving the capabilities 
        of the Agency;
            (4) establish and maintain effective relationships 
        between human intelligence and signals intelligence 
        within the Agency at the operational level; and
            (5) achieve a more effective balance within the 
        Agency with respect to unilateral operations and 
        liaison operations.
    (d) Report.--(1) Not later than 180 days after the date of 
the enactment of this Act, the Director of the Central 
Intelligence Agency shall submit to the Director of National 
Intelligence and the congressional intelligence committees a 
report setting forth the following:
            (A) A strategy for improving the conduct of 
        analysis (including strategic analysis) by the Central 
        Intelligence Agency, and the progress of the Agency in 
        implementing that strategy.
            (B) A strategy for improving the human intelligence 
        and other capabilities of the Agency, and the progress 
        of the Agency in implementing that strategy.
    (2)(A) The information in the report under paragraph (1) on 
the strategy referred to in paragraph (1)(B) shall--
            (i) identify the number and types of personnel 
        required to implement that strategy;
            (ii) include a plan for the recruitment, training, 
        equipping, and deployment of such personnel; and
            (iii) set forth an estimate of the costs of such 
        activities.
    (B) If as of the date of the report under paragraph (1), a 
proper balance does not exist between unilateral operations and 
liaison operations, such report shall set forth the steps to be 
taken to achieve such balance.

SEC. 1012. REVISED DEFINITION OF NATIONAL INTELLIGENCE.

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

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

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

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

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

SEC. 1015. EXECUTIVE SCHEDULE MATTERS.

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

SEC. 1016. INFORMATION SHARING.

    (a) Definitions.--In this section:
            (1) Information sharing council.--The term 
        ``Information Sharing Council'' means the Information 
        Systems Council established by Executive Order 13356, 
        or any successor body designated by the President, and 
        referred to under subsection (g).
            (2) Information sharing environment; ise.--The 
        terms ``information sharing environment'' and ``ISE'' 
        mean an approach that facilitates the sharing of 
        terrorism information, which approach may include any 
        methods determined necessary and appropriate for 
        carrying out this section.
            (3) Program manager.--The term ``program manager'' 
        means the program manager designated under subsection 
        (f).
            (4) Terrorism information.--The term ``terrorism 
        information'' means all information, whether collected, 
        produced, or distributed by intelligence, law 
        enforcement, military, homeland security, or other 
        activities relating to--
                    (A) the existence, organization, 
                capabilities, plans, intentions, 
                vulnerabilities, means of finance or material 
                support, or activities of foreign or 
                international terrorist groups or individuals, 
                or of domestic groups or individuals involved 
                in transnational terrorism;
                    (B) threats posed by such groups or 
                individuals to the United States, United States 
                persons, or United States interests, or to 
                those of other nations;
                    (C) communications of or by such groups or 
                individuals; or
                    (D) groups or individuals reasonably 
                believed to be assisting or associated with 
                such groups or individuals.
    (b) Information Sharing Environment.--
            (1) Establishment.--The President shall--
                    (A) create an information sharing 
                environment for the sharing of terrorism 
                information in a manner consistent with 
                national security and with applicable legal 
                standards relating to privacy and civil 
                liberties;
                    (B) designate the organizational and 
                management structures that will be used to 
                operate and manage the ISE; and
                    (C) determine and enforce the policies, 
                directives, and rules that will govern the 
                content and usage of the ISE.
            (2) Attributes.--The President shall, through the 
        structures described in subparagraphs (B) and (C) of 
        paragraph (1), ensure that the ISE provides and 
        facilitates the means for sharing terrorism information 
        among all appropriate Federal, State, local, and tribal 
        entities, and the private sector through the use of 
        policy guidelines and technologies. The President 
        shall, to the greatest extent practicable, ensure that 
        the ISE provides the functional equivalent of, or 
        otherwise supports, a decentralized, distributed, and 
        coordinated environment that--
                    (A) connects existing systems, where 
                appropriate, provides no single points of 
                failure, and allows users to share information 
                among agencies, between levels of government, 
                and, as appropriate, with the private sector;
                    (B) ensures direct and continuous online 
                electronic access to information;
                    (C) facilitates the availability of 
                information in a form and manner that 
                facilitates its use in analysis, investigations 
                and operations;
                    (D) builds upon existing systems 
                capabilities currently in use across the 
                Government;
                    (E) employs an information access 
                management approach that controls access to 
                data rather than just systems and networks, 
                without sacrificing security;
                    (F) facilitates the sharing of information 
                at and across all levels of security;
                    (G) provides directory services, or the 
                functional equivalent, for locating people and 
                information;
                    (H) incorporates protections for 
                individuals' privacy and civil liberties; and
                    (I) incorporates strong mechanisms to 
                enhance accountability and facilitate 
                oversight, including audits, authentication, 
                and access controls.
    (c) Preliminary Report.--Not later than 180 days after the 
date of the enactment of this Act, the program manager shall, 
in consultation with the Information Sharing Council--
            (1) submit to the President and Congress a 
        description of the technological, legal, and policy 
        issues presented by the creation of the ISE, and the 
        way in which these issues will be addressed;
            (2) establish an initial capability to provide 
        electronic directory services, or the functional 
        equivalent, to assist in locating in the Federal 
        Government intelligence and terrorism information and 
        people with relevant knowledge about intelligence and 
        terrorism information; and
            (3) conduct a review of relevant current Federal 
        agency capabilities, databases, and systems for sharing 
        information.
    (d) Guidelines and Requirements.--As soon as possible, but 
in no event later than 270 days after the date of the enactment 
of this Act, the President shall--
            (1) leverage all ongoing efforts consistent with 
        establishing the ISE and issue guidelines for 
        acquiring, accessing, sharing, and using information, 
        including guidelines to ensure that information is 
        provided in its most shareable form, such as by using 
        tearlines to separate out data from the sources and 
        methods by which the data are obtained;
            (2) in consultation with the Privacy and Civil 
        Liberties Oversight Board established under section 
        1061, issue guidelines that--
                    (A) protect privacy and civil liberties in 
                the development and use of the ISE; and
                    (B) shall be made public, unless 
                nondisclosure is clearly necessary to protect 
                national security; and
            (3) require the heads of Federal departments and 
        agencies to promote a culture of information sharing 
        by--
                    (A) reducing disincentives to information 
                sharing, including over-classification of 
                information and unnecessary requirements for 
                originator approval, consistent with applicable 
                laws and regulations; and
                    (B) providing affirmative incentives for 
                information sharing.
    (e) Implementation Plan Report.--Not later than one year 
after the date of the enactment of this Act, the President 
shall, with the assistance of the program manager, submit to 
Congress a report containing an implementation plan for the 
ISE. The report shall include the following:
            (1) A description of the functions, capabilities, 
        resources, and conceptual design of the ISE, including 
        standards.
            (2) A description of the impact on enterprise 
        architectures of participating agencies.
            (3) A budget estimate that identifies the 
        incremental costs associated with designing, testing, 
        integrating, deploying, and operating the ISE.
            (4) A project plan for designing, testing, 
        integrating, deploying, and operating the ISE.
            (5) The policies and directives referred to in 
        subsection (b)(1)(C), as well as the metrics and 
        enforcement mechanisms that will be utilized.
            (6) Objective, systemwide performance measures to 
        enable the assessment of progress toward achieving the 
        full implementation of the ISE.
            (7) A description of the training requirements 
        needed to ensure that the ISE will be adequately 
        implemented and properly utilized.
            (8) A description of the means by which privacy and 
        civil liberties will be protected in the design and 
        operation of the ISE.
            (9) The recommendations of the program manager, in 
        consultation with the Information Sharing Council, 
        regarding whether, and under what conditions, the ISE 
        should be expanded to include other intelligence 
        information.
            (10) A delineation of the roles of the Federal 
        departments and agencies that will participate in the 
        ISE, including an identification of the agencies that 
        will deliver the infrastructure needed to operate and 
        manage the ISE (as distinct from individual department 
        or agency components that are part of the ISE), with 
        such delineation of roles to be consistent with--
                    (A) the authority of the Director of 
                National Intelligence under this title, and the 
                amendments made by this title, to set standards 
                for information sharing throughout the 
                intelligence community; and
                    (B) the authority of the Secretary of 
                Homeland Security and the Attorney General, and 
                the role of the Department of Homeland Security 
                and the Attorney General, in coordinating with 
                State, local, and tribal officials and the 
                private sector.
            (11) The recommendations of the program manager, in 
        consultation with the Information Sharing Council, for 
        a future management structure for the ISE, including 
        whether the position of program manager should continue 
        to remain in existence.
    (f) Program Manager.--
            (1) Designation.--Not later than 120 days after the 
        date of the enactment of this Act, with notification to 
        Congress, the President shall designate an individual 
        as the program manager responsible for information 
        sharing across the Federal Government. The individual 
        designated as the program manager shall serve as 
        program manager during the two-year period beginning on 
        the date of designation under this paragraph unless 
        sooner removed from service and replaced by the 
        President (at the President's sole discretion). The 
        program manager shall have and exercise governmentwide 
        authority.
            (2) Duties and responsibilities.--
                    (A) In general.--The program manager shall, 
                in consultation with the Information Sharing 
                Council--
                            (i) plan for and oversee the 
                        implementation of, and manage, the ISE;
                            (ii) assist in the development of 
                        policies, procedures, guidelines, 
                        rules, and standards as appropriate to 
                        foster the development and proper 
                        operation of the ISE; and
                            (iii) assist, monitor, and assess 
                        the implementation of the ISE by 
                        Federal departments and agencies to 
                        ensure adequate progress, technological 
                        consistency and policy compliance; and 
                        regularly report the findings to 
                        Congress.
                    (B) Content of policies, procedures, 
                guidelines, rules, and standards.--The 
                policies, procedures, guidelines, rules, and 
                standards under subparagraph (A)(ii) shall--
                            (i) take into account the varying 
                        missions and security requirements of 
                        agencies participating in the ISE;
                            (ii) address development, 
                        implementation, and oversight of 
                        technical standards and requirements;
                            (iii) take into account ongoing and 
                        planned efforts that support 
                        development, implementation and 
                        management of the ISE;
                            (iv) address and facilitate 
                        information sharing between and among 
                        departments and agencies of the 
                        intelligence community, the Department 
                        of Defense, the homeland security 
                        community and the law enforcement 
                        community;
                            (v) address and facilitate 
                        information sharing between Federal 
                        departments and agencies and State, 
                        tribal, and local governments;
                            (vi) address and facilitate, as 
                        appropriate, information sharing 
                        between Federal departments and 
                        agencies and the private sector;
                            (vii) address and facilitate, as 
                        appropriate, information sharing 
                        between Federal departments and 
                        agencies with foreign partners and 
                        allies; and
                            (viii) ensure the protection of 
                        privacy and civil liberties.
    (g) Information Sharing Council.--
            (1) Establishment.--There is established an 
        Information Sharing Council that shall assist the 
        President and the program manager in their duties under 
        this section. The Information Sharing Council shall 
        serve during the two-year period beginning on the date 
        of the initial designation of the program manager by 
        the President under subsection (f)(1), unless sooner 
        removed from service and replaced by the President (at 
        the sole discretion of the President) with a successor 
        body.
            (2) Specific duties.--In assisting the President 
        and the program manager in their duties under this 
        section, the Information Sharing Council shall--
                    (A) advise the President and the program 
                manager in developing policies, procedures, 
                guidelines, roles, and standards necessary to 
                establish, implement, and maintain the ISE;
                    (B) work to ensure coordination among the 
                Federal departments and agencies participating 
                in the ISE in the establishment, 
                implementation, and maintenance of the ISE;
                    (C) identify and, as appropriate, recommend 
                the consolidation and elimination of current 
                programs, systems, and processes used by 
                Federal departments and agencies to share 
                information, and recommend, as appropriate, the 
                redirection of existing resources to support 
                the ISE;
                    (D) identify gaps, if any, between existing 
                technologies, programs and systems used by 
                Federal departments and agencies to share 
                information and the parameters of the proposed 
                information sharing environment;
                    (E) recommend solutions to address any gaps 
                identified under subparagraph (D);
                    (F) recommend means by which the ISE can be 
                extended to allow interchange of information 
                between Federal departments and agencies and 
                appropriate authorities of State and local 
                governments; and
                    (G) recommend whether or not, and by which 
                means, the ISE should be expanded so as to 
                allow future expansion encompassing other 
                relevant categories of information.
            (3) Consultation.--In performing its duties, the 
        Information Sharing Council shall consider input from 
        persons and entities outside the Federal Government 
        having significant experience and expertise in policy, 
        technical matters, and operational matters relating to 
        the ISE.
            (4) Inapplicability of federal advisory committee 
        act.--The Information Sharing Council shall not be 
        subject to the requirements of the Federal Advisory 
        Committee Act (5 U.S.C. App.).
    (h) Performance Management Reports.--
            (1) In general.--Not later than two years after the 
        date of the enactment of this Act, and annually 
        thereafter, the President shall submit to Congress a 
        report on the state of the ISE and of information 
        sharing across the Federal Government.
            (2) Content.--Each report under this subsection 
        shall include--
                    (A) a progress report on the extent to 
                which the ISE has been implemented, including 
                how the ISE has fared on the performance 
                measures and whether the performance goals set 
                in the preceding year have been met;
                    (B) objective system-wide performance goals 
                for the following year;
                    (C) an accounting of how much was spent on 
                the ISE in the preceding year;
                    (D) actions taken to ensure that 
                procurement of and investments in systems and 
                technology are consistent with the 
                implementation plan for the ISE;
                    (E) the extent to which all terrorism watch 
                lists are available for combined searching in 
                real time through the ISE and whether there are 
                consistent standards for placing individuals 
                on, and removing individuals from, the watch 
                lists, including the availability of processes 
                for correcting errors;
                    (F) the extent to which State, tribal, and 
                local officials are participating in the ISE;
                    (G) the extent to which private sector 
                data, including information from owners and 
                operators of critical infrastructure, is 
                incorporated in the ISE, and the extent towhich 
individuals and entities outside the government are receiving 
information through the ISE;
                    (H) the measures taken by the Federal 
                government to ensure the accuracy of 
                information in the ISE, in particular the 
                accuracy of information about individuals;
                    (I) an assessment of the privacy and civil 
                liberties protections of the ISE, including 
                actions taken in the preceding year to 
                implement or enforce privacy and civil 
                liberties protections; and
                    (J) an assessment of the security 
                protections used in the ISE.
    (i) Agency Responsibilities.--The head of each department 
or agency that possesses or uses intelligence or terrorism 
information, operates a system in the ISE, or otherwise 
participates (or expects to participate) in the ISE shall--
            (1) ensure full department or agency compliance 
        with information sharing policies, procedures, 
        guidelines, rules, and standards established under 
        subsections (b) and (f);
            (2) ensure the provision of adequate resources for 
        systems and activities supporting operation of and 
        participation in the ISE;
            (3) ensure full department or agency cooperation in 
        the development of the ISE to implement governmentwide 
        information sharing; and
            (4) submit, at the request of the President or the 
        program manager, any reports on the implementation of 
        the requirements of the ISE within such department or 
        agency.
    (j) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $20,000,000 for 
each of fiscal years 2005 and 2006.

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

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

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

    The President shall issue guidelines to ensure the 
effective implementation and execution within the executive 
branch of the authorities granted to the Director of National 
Intelligence by this title and the amendments made by this 
title, in a manner that respects and does not abrogate the 
statutory responsibilities of the heads of the departments of 
the United States Government concerning such departments, 
including, but not limited to:
            (1) the authority of the Director of the Office of 
        Management and Budget; and
            (2) the authority of the principal officers of the 
        executive departments as heads of their respective 
        departments, including, but not limited to, under--
                    (A) section 199 of the Revised Statutes (22 
                U.S.C. 2651);
                    (B) title II of the Department of Energy 
                Organization Act (42 U.S.C. 7131 et seq.);
                    (C) the State Department Basic Authorities 
                Act of 1956;
                    (D) section 102(a) of the Homeland Security 
                Act of 2002 (6 U.S.C. 112(a)); and
                    (E) sections 301 of title 5, 113(b) and 
                162(b) of title 10, 503 of title 28, and 301(b) 
                of title 31, United States Code.

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

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

SEC. 1020. SAFEGUARD OF OBJECTIVITY IN INTELLIGENCE ANALYSIS.

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

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

SEC. 1021. NATIONAL COUNTERTERRORISM CENTER.

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

                   ``NATIONAL COUNTERTERRORISM CENTER

    ``Sec. 119. (a) Establishment of Center.--There is within 
the Office of the Director of National Intelligence a National 
Counterterrorism Center.
    ``(b) Director of National Counterterrorism Center.--(1) 
There is a Director of the National Counterterrorism Center, 
who shall be the head of the National Counterterrorism Center, 
and who shall be appointed by the President, by and with the 
advice and consent of the Senate.
    ``(2) The Director of the National Counterterrorism Center 
may not simultaneously serve in any other capacity in the 
executive branch.
    ``(c) Reporting.--(1) The Director of the National 
Counterterrorism Center shall report to the Director of 
National Intelligence with respect to matters described in 
paragraph (2) and the President with respect to matters 
described in paragraph (3).
            ``(2) The matters described in this paragraph are 
        as follows:
                    ``(A) The budget and programs of the 
                National Counterterrorism Center.
                    ``(B) The activities of the Directorate of 
                Intelligence of the National Counterterrorism 
                Center under subsection (h).
                    ``(C) The conduct of intelligence 
                operations implemented by other elements of the 
                intelligence community; and
            ``(3) The matters described in this paragraph are 
        the planning and progress of joint counterterrorism 
        operations (other than intelligence operations).
    ``(d) Primary Missions.--The primary missions of the 
National Counterterrorism Center shall be as follows:
            ``(1) To serve as the primary organization in the 
        United States Government for analyzing and integrating 
        all intelligence possessed or acquired by the United 
        States Government pertaining to terrorism and 
        counterterrorism, excepting intelligence pertaining 
        exclusively to domestic terrorists and domestic 
        counterterrorism.
            ``(2) To conduct strategic operational planning for 
        counterterrorism activities, integrating all 
        instruments of national power, including diplomatic, 
        financial, military, intelligence, homeland security, 
        and law enforcement activities within and among 
        agencies.
            ``(3) To assign roles and responsibilities as part 
        of its strategic operational planning duties to lead 
        Departments or agencies, as appropriate, for 
        counterterrorism activities that are consistent with 
        applicable law and that support counterterrorism 
        strategic operational plans, but shall not direct the 
        execution of any resulting operations.
            ``(4) To ensure that agencies, as appropriate, have 
        access to and receive all-source intelligence support 
        needed to execute their counterterrorism plans or 
        perform independent, alternative analysis.
            ``(5) To ensure that such agencies have access to 
        and receive intelligence needed to accomplish their 
        assigned activities.
            ``(6) To serve as the central and shared knowledge 
        bank on known and suspected terrorists and 
        international terror groups, as well as their goals, 
        strategies, capabilities, and networks of contacts and 
        support.
    ``(e) Domestic Counterterrorism Intelligence.--(1) The 
Center may, consistent with applicable law, the direction of 
the President, and the guidelines referred to in section 
102A(b), receive intelligence pertaining exclusively to 
domestic counterterrorism from any Federal, State, or local 
government or other source necessary to fulfill its 
responsibilities and retain and disseminate such intelligence.
    ``(2) Any agency authorized to conduct counterterrorism 
activities may request information from the Center to assist it 
in its responsibilities, consistent with applicable law and the 
guidelines referred to in section 102A(b).
    ``(f) Duties and Responsibilities of Director.--(1) The 
Director of the National Counterterrorism Center shall--
            ``(A) serve as the principal adviser to the 
        Director of National Intelligence on intelligence 
        operations relating to counterterrorism;
            ``(B) provide strategic operational plans for the 
        civilian and military counterterrorism efforts of the 
        United States Government and for the effective 
        integration of counterterrorism intelligence and 
        operations across agency boundaries, both inside and 
        outside the United States;
            ``(C) advise the Director of National Intelligence 
        on the extent to which the counterterrorism program 
        recommendations and budget proposals of the 
        departments, agencies, and elements of the United 
        States Government conform to the priorities established 
        by the President;
            ``(D) disseminate terrorism information, including 
        current terrorism threat analysis, to the President, 
        the Vice President, the Secretaries of State, Defense, 
        and Homeland Security, the Attorney General, the 
        Director of the Central Intelligence Agency, and other 
        officials of the executive branch as appropriate, and 
        to the appropriate committees of Congress;
            ``(E) support the Department of Justice and the 
        Department of Homeland Security, and other appropriate 
        agencies, in fulfillment of their responsibilities to 
        disseminate terrorism information, consistent with 
        applicable law, guidelines referred to in section 
        102A(b), Executive orders and other Presidential 
        guidance, to State and local government officials, and 
        other entities, and coordinate dissemination of 
        terrorism information to foreign governments as 
        approved by the Director of National Intelligence;
            ``(F) develop a strategy for combining terrorist 
        travel intelligence operations and law enforcement 
        planning and operations into a cohesive effort to 
        intercept terrorists, find terrorist travel 
        facilitators, and constrain terrorist mobility;
            ``(G) have primary responsibility within the United 
        States Government for conducting net assessments of 
        terrorist threats;
            ``(H) consistent with priorities approved by the 
        President, assist the Director of National Intelligence 
        in establishing requirements for the intelligence 
        community for the collection of terrorism information; 
        and
            ``(I) perform such other duties as the Director of 
        National Intelligence may prescribe or are prescribed 
        by law.
    ``(2) Nothing in paragraph (1)(G) shall limit the authority 
of the departments and agencies of the United States to conduct 
net assessments.
    ``(g) Limitation.--The Director of the National 
Counterterrorism Center may not direct the execution of 
counterterrorism operations.
    ``(h) Resolution of Disputes.--The Director of National 
Intelligence shall resolve disagreements between the National 
Counterterrorism Center and the head of a department, agency, 
or element of the United States Government on designations, 
assignments, plans, or responsibilities under this section. The 
head of such a department, agency, or element may appeal the 
resolution of the disagreement by the Director of National 
Intelligence to the President.
    ``(i) Directorate of Intelligence.--The Director of the 
National Counterterrorism Center shall establish and maintain 
within the National Counterterrorism Center a Directorate of 
Intelligence which shall have primary responsibility within the 
United States Government for analysis of terrorism and 
terrorist organizations (except for purely domestic terrorism 
and domestic terrorist organizations) from all sources of 
intelligence, whether collected inside or outside the United 
States.
    ``(j) Directorate of Strategic Operational Planning.--(1) 
The Director of the National Counterterrorism Center shall 
establish and maintain within the National Counterterrorism 
Center a Directorate of Strategic Operational Planning which 
shall provide strategic operational plans for counterterrorism 
operations conducted by the United States Government.
    ``(2) Strategic operational planning shall include the 
mission, objectives to be achieved, tasks to be performed, 
interagency coordination of operational activities, and the 
assignment of roles and responsibilities.
    ``(3) The Director of the National Counterterrorism Center 
shall monitor the implementation of strategic operational 
plans, and shall obtain information from each element of the 
intelligence community, and from each other department, agency, 
or element of the United States Government relevant for 
monitoring the progress of such entity in implementing such 
plans.

SEC. 1022. NATIONAL COUNTER PROLIFERATION CENTER.

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

                ``NATIONAL COUNTER PROLIFERATION CENTER

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

SEC. 1023. NATIONAL INTELLIGENCE CENTERS.

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

                    ``NATIONAL INTELLIGENCE CENTERS

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

            Subtitle C--Joint Intelligence Community Council

SEC. 1031. JOINT INTELLIGENCE COMMUNITY COUNCIL.

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

                 ``JOINT INTELLIGENCE COMMUNITY COUNCIL

    ``Sec. 101A. (a) Joint Intelligence Community Council.--
There is a Joint Intelligence Community Council.
    ``(b) Membership.--The Joint Intelligence Community Council 
shall consist of the following:
            ``(1) The Director of National Intelligence, who 
        shall chair the Council.
            ``(2) The Secretary of State.
            ``(3) The Secretary of the Treasury.
            ``(4) The Secretary of Defense.
            ``(5) The Attorney General.
            ``(6) The Secretary of Energy.
            ``(7) The Secretary of Homeland Security.
            ``(8) Such other officers of the United States 
        Government as the President may designate from time to 
        time.
    ``(c) Functions.--The Joint Intelligence Community Council 
shall assist the Director of National Intelligence to in 
developing and implementing a joint, unified national 
intelligence effort to protect national security by--
            ``(1) advising the Director on establishing 
        requirements, developing budgets, financial management, 
        and monitoring and evaluating the performance of the 
        intelligence community, and on such other matters as 
        the Director may request; and
            ``(2) ensuring the timely execution of programs, 
        policies, and directives established or developed by 
        the Director.
    ``(d) Meetings.--The Director of National Intelligence 
shall convene regular meetings of the Joint Intelligence 
Community Council.
    ``(e) Advice and Opinions of Members Other Than Chairman.--
(1) A member of the Joint Intelligence Community Council (other 
than the Chairman) may submit to the Chairman advice or an 
opinion in disagreement with, or advice or an opinion in 
addition to, the advice presented by the Director of National 
Intelligence to the President or the National Security Council, 
in the role of the Chairman as Chairman of the Joint 
Intelligence Community Council. If a member submits such advice 
or opinion, the Chairman shall present the advice or opinion of 
such member at the same time the Chairman presents the advice 
of the Chairman to the President or the National Security 
Council, as the case may be.
    ``(2) The Chairman shall establish procedures to ensure 
that the presentation of the advice of the Chairman to the 
President or the National Security Council is not unduly 
delayed by reason of the submission of the individual advice or 
opinion of another member of the Council.
    ``(f) Recommendations to Congress.--Any member of the Joint 
Intelligence Community Council may make such recommendations to 
Congress relating to the intelligence community as such member 
considers appropriate.''.

  Subtitle D--Improvement of Education for the Intelligence Community

SEC. 1041. ADDITIONAL EDUCATION AND TRAINING REQUIREMENTS.

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

SEC. 1042. CROSS-DISCIPLINARY EDUCATION AND TRAINING.

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

       ``FRAMEWORK FOR CROSS-DISCIPLINARY EDUCATION AND TRAINING

    ``Sec. 1002. The Director of National Intelligence shall 
establish an integrated framework that brings together the 
educational components of the intelligence community in order 
to promote a more effective and productive intelligence 
community through cross-disciplinary education and joint 
training.''.

SEC. 1043. INTELLIGENCE COMMUNITY SCHOLARSHIP PROGRAM.

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

              ``INTELLIGENCE COMMUNITY SCHOLARSHIP PROGRAM

    ``Sec. 1003. (a) Establishment.--
            ``(1) In general.--The Director of National 
        Intelligence, in consultation with the head of each 
        agency of the intelligence community, shall establish a 
        scholarship program (to be known as the `Intelligence 
        Community Scholarship Program') to award scholarships 
        to individuals that is designed to recruit and prepare 
        students for civilian careers in the intelligence 
        community to meet the critical needs of the 
        intelligence community agencies.
            ``(2) Selection of recipients.--
                    ``(A) Merit and agency needs.--Individuals 
                shall be selected to receive scholarships under 
                this section through a competitive process 
                primarily on the basis of academic merit and 
                the needs of the agency.
                    ``(B) Demonstrated commitment.--Individuals 
                selected under this section shall have a 
                demonstrated commitment to the field of study 
                for which the scholarship is awarded.
            ``(3) Contractual agreements.--To carry out the 
        Program the head of each agency shall enter into 
        contractual agreements with individuals selected under 
        paragraph (2) under which the individuals agree to 
        serve as full-time employees of the agency, for the 
        period described in subsection (g)(1), in positions 
        needed by the agency and for which the individuals are 
        qualified, in exchange for receiving a scholarship.
    ``(b) Eligibility.--In order to be eligible to participate 
in the Program, an individual shall--
            ``(1) be enrolled or accepted for enrollment as a 
        full-time student at an institution of higher education 
        and be pursuing or intend to pursue undergraduate or 
        graduate education in an academic field or discipline 
        described in the list made available under subsection 
        (d);
            ``(2) be a United States citizen; and
            ``(3) at the time of the initial scholarship award, 
        not be an employee (as defined under section 2105 of 
        title 5, United States Code).
    ``(c) Application.-- An individual seeking a scholarship 
under this section shall submit an application to the Director 
of National Intelligence at such time, in such manner, and 
containing such information, agreements, or assurances as the 
Director may require.
    ``(d) Programs and Fields of Study.--The Director of 
National Intelligence shall--
            ``(1) make publicly available a list of academic 
        programs and fields of study for which scholarships 
        under the Program may be used; and
            ``(2) update the list as necessary.
    ``(e) Scholarships.--
            ``(1) In general.--The Director of National 
        Intelligence may provide a scholarship under the 
        Program for an academic year if the individual applying 
        for the scholarship has submitted to the Director, as 
        part of the application required under subsection (c), 
        a proposed academic program leading to a degree in a 
        program or field of study on the list made available 
        under subsection (d).
            ``(2) Limitation on years.--An individual may not 
        receive a scholarship under this section for more than 
        4 academic years, unless the Director of National 
        Intelligence grants a waiver.
            ``(3) Student responsibilities.--Scholarship 
        recipients shall maintain satisfactory academic 
        progress.
            ``(4) Amount.--The dollar amount of a scholarship 
        under this section for an academic year shall be 
        determined under regulations issued by the Director of 
        National Intelligence, but shall in no case exceed the 
        cost of tuition, fees, and other authorized expenses as 
        established by the Director.
            ``(5) Use of scholarships.--A scholarship provided 
        under this section may be expended for tuition, fees, 
        and other authorized expenses as established by the 
        Director of National Intelligence by regulation.
            ``(6) Payment to institution of higher education.--
        The Director of National Intelligence may enter into a 
        contractual agreement with an institution of higher 
        education under which the amounts provided for a 
        scholarship under this section for tuition, fees, and 
        other authorized expenses are paid directly to the 
        institution with respect to which the scholarship is 
        provided.
    ``(f) Special Consideration for Current Employees.--
            ``(1) Set aside of scholarships.--Notwithstanding 
        paragraphs (1) and (3) of subsection (b), 10 percent of 
        the scholarships awarded under this section shall be 
        set aside for individuals who are employees of agencies 
        on the date of enactment of this section to enhance the 
        education of such employees in areas of critical needs 
        of agencies.
            ``(2) Full- or part-time education.--Employees who 
        are awarded scholarships under paragraph (1) shall be 
        permitted to pursue undergraduate or graduate education 
        under the scholarship on a full-time or part-time 
        basis.
    ``(g) Employee Service.--
            ``(1) Period of service.--Except as provided in 
        subsection (i)(2), the period of service for which an 
        individual shall be obligated to serve as an employee 
        of the agency is 24 months for each academic year for 
        which a scholarship under this section is provided. 
        Under no circumstances shall the total period of 
        obligated service be more than 8 years.
            ``(2) Beginning of service.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), obligated service under 
                paragraph (1) shall begin not later than 60 
                days after the individual obtains the 
                educational degree for which the scholarship 
                was provided.
                    ``(B) Deferral.--In accordance with 
                regulations established by the Director of 
                National Intelligence, the Director or designee 
                may defer the obligation of an individual to 
                provide a period of service under paragraph (1) 
                if the Director or designee determines that 
                such a deferral is appropriate.
    ``(h) Repayment.--
            ``(1) In general.--Scholarship recipients who fail 
        to maintain a high level of academic standing, as 
        defined by the Director of National Intelligence, who 
        are dismissed from their educational institutions for 
        disciplinary reasons, or who voluntarily terminate 
        academic training before graduation from the 
        educational program for which the scholarship was 
        awarded, shall be in breach of their contractual 
        agreement and, in lieu of any service obligation 
        arising under such agreement, shall be liable to the 
        United States for repayment within 1 year after the 
        date of default of all scholarship funds paid to them 
        and to the institution of higher education on their 
        behalf under the agreement, except as provided in 
        subsection (i)(2). The repayment period may be extended 
        by the Director when determined to be necessary, as 
        established by regulation.
            ``(2) Liability.--Scholarship recipients who, for 
        any reason, fail to begin or complete their service 
        obligation after completion of academic training, or 
        fail to comply with the terms and conditions of 
        deferment established by the Director of National 
        Intelligence under subsection (i)(2)(B), shall be in 
        breach of their contractual agreement. When recipients 
        breach their agreements for the reasons stated in the 
        preceding sentence, the recipient shall be liable to 
        the United States for an amount equal to--
                    ``(A) the total amount of scholarships 
                received by such individual under this section; 
                and
                    ``(B) the interest on the amounts of such 
                awards which would be payable if at the time 
                the awards were received they were loans 
                bearing interest at the maximum legal 
                prevailing rate, as determined by the Treasurer 
                of the United States, multiplied by 3.
    ``(i) Cancellation, Waiver, or Suspension of Obligation.--
            ``(1) Cancellation.--Any obligation of an 
        individual incurred under the Program (or a contractual 
        agreement thereunder) for service or payment shall be 
        canceled upon the death of the individual.
            ``(2) Waiver or suspension.--The Director of 
        National Intelligence shall prescribe regulations to 
        provide for the partial or total waiver or suspension 
        of any obligation of service or payment incurred by an 
        individual under the Program (or a contractual 
        agreement thereunder) whenever compliance by the 
        individual is impossible or would involve extreme 
        hardship to the individual, or if enforcement of such 
        obligation with respect to the individual would be 
        contrary to the best interests of the Government.
    ``(j) Regulations.--The Director of National Intelligence 
shall prescribe regulations necessary to carry out this 
section.
    ``(k) Definitions.--In this section:
            ``(1) Agency.--The term `agency' means each element 
        of the intelligence community as determined by the 
        Director of National Intelligence.
            ``(2) Institution of higher education.--The term 
        `institution of higher education' has the meaning given 
        that term under section 101 of the Higher Education Act 
        of 1965 (20 U.S.C. 1001).
            ``(3) Program.--The term `Program' means the 
        Intelligence Community Scholarship Program established 
        under subsection (a).''.

     Subtitle E--Additional Improvements of Intelligence Activities

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

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

SEC. 1052. OPEN-SOURCE INTELLIGENCE.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the Director of National Intelligence should 
        establish an intelligence center for the purpose of 
        coordinating the collection, analysis, production, and 
        dissemination of open source intelligence to elements 
        of the intelligence community;
            (2) open source intelligence is a valuable source 
        that must be integrated into the intelligence cycle to 
        ensure that United States policymakers are fully and 
        completely informed; and
            (3) the intelligence center should ensure that each 
        element of the intelligence community uses open source 
        intelligence consistent with the mission of such 
        element.
    (b) Requirement for Efficient Use by Intelligence Community 
of Open-source Intelligence.--The Director of National 
Intelligence shall ensure that the intelligence community makes 
efficient and effective use of open-source information and 
analysis.
    (c) Report.--Not later than June 30, 2005, the Director of 
National Intelligence shall submit to the congressional 
intelligence committees a report containing the decision of the 
Director as to whether an open source intelligence center will 
be established. If the Director decides not to establish an 
open source intelligence center, such report shall also contain 
a description of how the intelligence community will use open 
source intelligence and effectively integrate open source 
intelligence into the national intelligence cycle.
    (d) Congressional Intelligence Committees Defined.--In this 
section, the term ``congressional intelligence committees'' 
means--
            (1) the Select Committee on Intelligence of the 
        Senate; and
            (2) the Permanent Select Committee on Intelligence 
        of the House of Representatives.

SEC. 1053. NATIONAL INTELLIGENCE RESERVE CORPS.

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

                Subtitle F--Privacy and Civil Liberties

SEC. 1061. PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) In conducting the war on terrorism, the Federal 
        Government may need additional powers and may need to 
        enhance the use of its existing powers.
            (2) This potential shift of power and authority to 
        the Federal Government calls for an enhanced system of 
        checks and balances to protect the precious liberties 
        that are vital to our way of life.
    (b) Establishment of Board.--There is established within 
the Executive Office of the President a Privacy and Civil 
Liberties Oversight Board (referred to in this section as the 
``Board'').
    (c) Functions.--
            (1) Advice and counsel on development and 
        implementation of policy.--For the purpose of providing 
        advice to the President or to the head of any 
        department or agency of the executive branch, the Board 
        shall--
                    (A) review proposed regulations and 
                executive branch policies related to efforts to 
                protect the Nation from terrorism, including 
                the development and adoption of information 
                sharing guidelines under subsections (d) and 
                (f) of section 1016;
                    (B) review the implementation of laws, 
                regulations, and executive branch policies 
                related to efforts to protect the Nation from 
                terrorism, including the implementation of 
                information sharing guidelines under 
                subsections (d) and (f) of section 1016;
                    (C) advise the President and the head of 
                any department or agency of the executive 
                branch to ensure that privacy and civil 
                liberties are appropriately considered in the 
                development and implementation of such 
                regulations and executive branch policies; and
                    (D) in providing advice on proposals to 
                retain or enhance a particular governmental 
                power, consider whether the department, agency, 
                or element of the executive branch concerned 
                has explained--
                            (i) that there is adequate 
                        supervision of the use by the executive 
                        branch of the power to ensure 
                        protection of privacy and civil 
                        liberties;
                            (ii) that there are adequate 
                        guidelines and oversight to properly 
                        confine the use of the power; and
                            (iii) that the need for the power, 
                        including the risk presented to the 
                        national security if the Federal 
                        Government does not take certain 
                        actions, is balanced with the need to 
                        protect privacy and civil liberties.
            (2) Oversight.--The Board shall continually 
        review--
                    (A) regulations, executive branch policies, 
                and procedures (including the implementation of 
                such regulations, policies, and procedures), 
                related laws pertaining to efforts to protect 
                the Nation from terrorism, and other actions by 
                the executive branch related to efforts to 
                protect the Nation from terrorism to ensure 
                that privacy and civil liberties are protected; 
                and
                    (B) the information sharing practices of 
                the departments, agencies, and elements of the 
                executive branch to determine whether or not 
                such practices appropriately protect privacy 
                and civil liberties and adhere to the 
                information sharing guidelines under 
                subsections (d) and (f) of section 1016 and to 
                other applicable laws, regulations, and 
                executive branch policies regarding the 
                protection of privacy and civil liberties.
            (3) Scope.--The Board shall ensure that concerns 
        with respect to privacy and civil liberties are 
        appropriately considered in the implementation of laws, 
        regulations, and executive branch policies related to 
        efforts to protect the Nation against terrorism.
            (4) Reports to congress.--Not less frequently than 
        annually, the Board shall prepare a report to Congress, 
        unclassified to the greatest extent possible (with a 
        classified annex, if necessary), on the Board's major 
        activities during the preceding period.
    (d) Access to Information.--
            (1) Authorization.--If determined by the Board to 
        be necessary to carry out its responsibilities under 
        this section, the Board is authorized, to the extent 
        permitted by law, to--
                    (A) have access from any department or 
                agency of the executive branch, or any Federal 
                officer or employee of any such department or 
                agency, to all relevant records, reports, 
                audits, reviews, documents, papers, 
                recommendations, or other relevant material, 
                including classified information consistent 
                with applicable law;
                    (B) interview or take statements from 
                officers of any department or agency of the 
                executive branch;
                    (C) request information or assistance from 
                any State, tribal, or local government; and
                    (D)(i) request that persons (other than 
                departments, agencies, and elements of the 
                executive branch) produce for the Board 
                relevant information, documents, reports, 
                answers, records, accounts, papers, and other 
                documentary and testimonial evidence; and
                    (ii) if the person to whom such a request 
                is directed does not comply with the request 
                within 45 days of receipt of such request, 
                notify the Attorney General of such person's 
                failure to comply with such request, which 
                notice shall include all relevant information.
            (2) Production of information and evidence.--
                    (A) Explanation of noncompliance.--Upon 
                receiving notification under paragraph 
                (1)(D)(ii) regarding a request, the Attorney 
                General shall provide an opportunity for the 
                person subject to the request to explain the 
                reasons for not complying with the request.
                    (B) Action by attorney general.--Upon 
                receiving notification under paragraph 
                (1)(D)(ii) regarding a request, the Attorney 
                General shall review the request and may take 
                such steps as appropriate to ensure compliance 
                with the request for the information, 
                documents, reports, answers, records, accounts, 
                papers, and other documentary and testimonial 
                evidence covered by the request.
            (3) Agency cooperation.--Whenever information or 
        assistance requested under subparagraph (A) or (B) of 
        paragraph (1) is, in the judgment of the Board, 
        unreasonably refused or not provided, the Board shall 
        report the circumstances to the head of the department 
        or agency concerned without delay. If the requested 
        information or assistance may be provided to the Board 
        in accordance with applicable law, the head of the 
        department or agency concerned shall ensure compliance 
        with such request.
            (4) Exceptions for national security.--
                    (A) In general.--If the National 
                Intelligence Director, in consultation with the 
                Attorney General, determines that it is 
                necessary to withhold information requested 
                under paragraph (3) to protect the national 
                security interests of the United States, the 
                head of the department or agency concerned 
                shall not furnish such information to the 
                Board.
                    (B) Certain information.--If the Attorney 
                General determines that it is necessary to 
                withhold information requested under paragraph 
                (3) from disclosure to protect sensitive law 
                enforcement or counterterrorism information or 
                ongoing operations, the head of the department 
                or agency concerned shall not furnish such 
                information to the Board.
    (e) Membership.--
            (1) Members.--
                    (A) In general.--The Board shall be 
                composed of a chairman, a vice chairman, and 
                three additional members appointed by the 
                President.
                    (B) Chairman and vice chairman.--The 
                chairman and vice chairman shall each be 
                appointed by the President, by and with the 
                advice and consent of the Senate.
                    (C) Appointment requirements.--Any 
                individual appointed to the Board shall be 
                appointed from among trustworthy and 
                distinguished citizens outside the Federal 
                Government who are qualified on the basis of 
                achievement, experience, and independence.
                    (D) Full-time service of chairman.--The 
                chairman may serve on a full-time basis.
                    (E) Service at pleasure of president.--The 
                chairman, vice chairman, and other members of 
                the Board shall each serve at the pleasure of 
                the President.
            (2) Incompatible office.--An individual appointed 
        to the Board may not, while serving on the Board, be an 
        elected official, officer, or employee of the Federal 
        Government, other than in the capacity as a member of 
        the Board.
            (3) Quorum and meetings.--The Board shall meet upon 
        the call of the chairman or a majority of its members. 
        Three members of the Board shall constitute a quorum.
    (f) Compensation and Travel Expenses.--
            (1) Compensation.--
                    (A) Chairman on full-time basis.--If the 
                chairman serves on a full-time basis, the rate 
                of pay for the chairman shall be the annual 
                rate of basic pay in effect for a position at 
                level III of the Executive Schedule under 
                section 5314 of title 5, United States Code.
                    (B) Chairman and vice chairman on part-time 
                basis.--The chairman, if serving on a part-time 
                basis, and the vice chairman shall be 
                compensated at a rate equal to the daily 
                equivalent of the annual rate of basic pay in 
                effect for a position at level III of the 
                Executive Schedule under section 5314 of title 
                5, United States Code, for each day during 
                which the such official is engaged in the 
                actual performance of the duties of the Board.
                    (C) Members.--Each member of the Board 
                shall be compensated at a rate equal to the 
                daily equivalent of the annual rate of basic 
                pay in effect for a position at level IV of the 
                Executive Schedule under section 5315 of title 
                5, United States Code, for each day during 
                which that member is engaged in the actual 
                performance of the duties of the Board.
            (2) Travel expenses.--Members of the Board shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for persons employed 
        intermittently by the Federal Government under section 
        5703(b) of title 5, United States Code, while away from 
        their homes or regular places of business in the 
        performance of services for the Board.
    (g) Staff.--
            (1) Appointment and compensation.--The chairman, in 
        accordance with rules agreed upon by the Board, shall 
        appoint and fix the compensation of an executive 
        director and such other personnel as may be necessary 
        to enable the Board to carry out its functions, without 
        regard to the provisions of title 5, United States 
        Code, governing appointments in the competitive 
        service, and without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of such 
        title relating to classification and General Schedule 
        pay rates, except that no rate of pay fixed under this 
        subsection may exceed the equivalent of that payable 
        for a position at level V of the Executive Schedule 
        under section 5316 of title 5, United States Code.
            (2) Detailees.--Federal employees may be detailed 
        to the Board without reimbursement from the Board, and 
        such detailee shall retain the rights, status, and 
        privileges of the detailee's regular employment without 
        interruption.
            (3) Consultant services.--The Board may procure the 
        temporary or intermittent services of experts and 
        consultants in accordance with section 3109 of title 5, 
        United States Code, at rates that do not exceed the 
        daily rate paid a person occupying a position at level 
        IV of the Executive Schedule under section 5315 of such 
        title.
    (h) Security Clearances.--The appropriate departments and 
agencies of the executive branch shall cooperate with the Board 
to expeditiously provide Board members and staff with 
appropriate security clearances to the extent possible under 
applicable procedures and requirements. Promptly upon 
commencing its work, the Board shall adopt, after consultation 
with the Secretary of Defense, the Attorney General, and the 
National Intelligence Director, rules and procedures of the 
Board for physical, communications, computer, document, 
personnel, and other security in relation to the work of the 
Board.
    (i) Applicability of Certain Laws.--
            (1) Federal advisory committee act.--The Federal 
        Advisory Committee Act (5 U.S.C. App.) shall not apply 
        with respect to the Board and its activities.
            (2) Freedom of information act.--For purposes of 
        the Freedom of Information Act, the Board shall be 
        treated as an agency (as that term is defined in 
        section 551(1) of title 5, United States Code).
    (j) Construction.--Except as otherwise provided in this 
section, nothing in this section shall be construed to require 
any consultation with the Board by any department or agency of 
the executive branch or any Federal officer or employee, or any 
waiting period that must be observed by any department or 
agency of the executive branch or any Federal officer or 
employee, before developing, proposing, or implementing any 
legislation, law, regulation, policy, or guideline related to 
efforts to protect the Nation from terrorism.
    (k) Presidential Responsibility.--The Board shall perform 
its functions within the executive branch and under the general 
supervision of the President.
    (l) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section.

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

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

              Subtitle G--Conforming and Other Amendments

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

    (a) National Security Act of 1947.--(1) The National 
Security Act of 1947 (50 U.S.C. 401 et seq.) is amended by 
striking ``Director of Central Intelligence'' each place it 
appears in the following provisions and inserting ``Director of 
National Intelligence'':
            (A) Section 101(h)(2)(A) (50 U.S.C. 402(h)(2)(A)).
            (B) Section 101(h)(5) (50 U.S.C. 402(h)(5)).
            (C) Section 101(i)(2)(A) (50 U.S.C. 402(i)(2)(A)).
            (D) Section 101(j) (50 U.S.C. 402(j)).
            (E) Section 105(a) (50 U.S.C. 403-5(a)).
            (F) Section 105(b)(6)(A) (50 U.S.C. 403-
        5(b)(6)(A)).
            (G) Section 105B(a)(1) (50 U.S.C. 403-5b(a)(1)).
            (H) Section 105B(b) (50 U.S.C. 403-5b(b)), the 
        first place it appears.
            (I) Section 110(b) (50 U.S.C. 404e(b)).
            (J) Section 110(c) (50 U.S.C. 404e(c)).
            (K) Section 112(a)(1) (50 U.S.C. 404g(a)(1)).
            (L) Section 112(d)(1) (50 U.S.C. 404g(d)(1)).
            (M) Section 113(b)(2)(A) (50 U.S.C. 404h(b)(2)(A)).
            (N) Section 114(a)(1) (50 U.S.C. 404i(a)(1)).
            (O) Section 114(b)(1) (50 U.S.C. 404i(b)(1)).
            (P) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).
            (Q) Section 115(b) (50 U.S.C. 404j(b)).
            (R) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).
            (S) Section 116(a) (50 U.S.C. 404k(a)).
            (T) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).
            (U) Section 303(a) (50 U.S.C. 405(a)), both places 
        it appears.
            (V) Section 501(d) (50 U.S.C. 413(d)).
            (W) Section 502(a) (50 U.S.C. 413a(a)).
            (X) Section 502(c) (50 U.S.C. 413a(c)).
            (Y) Section 503(b) (50 U.S.C. 413b(b)).
            (Z) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).
            (AA) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
            (BB) Section 506A(a)(1) (50 U.S.C. 415a-1(a)(1)).
            (CC) Section 603(a) (50 U.S.C. 423(a)).
            (DD) Section 702(a)(1) (50 U.S.C. 432(a)(1)).
            (EE) Section 702(a)(6)(B)(viii) (50 U.S.C. 
        432(a)(6)(B)(viii)).
            (FF) Section 702(b)(1) (50 U.S.C. 432(b)(1)), both 
        places it appears.
            (GG) Section 703(a)(1) (50 U.S.C. 432a(a)(1)).
            (HH) Section 703(a)(6)(B)(viii) (50 U.S.C. 
        432a(a)(6)(B)(viii)).
            (II) Section 703(b)(1) (50 U.S.C. 432a(b)(1)), both 
        places it appears.
            (JJ) Section 704(a)(1) (50 U.S.C. 432b(a)(1)).
            (KK) Section 704(f)(2)(H) (50 U.S.C. 
        432b(f)(2)(H)).
            (LL) Section 704(g)(1)) (50 U.S.C. 432b(g)(1)), 
        both places it appears.
            (MM) Section 1001(a) (50 U.S.C. 441g(a)).
            (NN) Section 1102(a)(1) (50 U.S.C. 442a(a)(1)).
            (OO) Section 1102(b)(1) (50 U.S.C. 442a(b)(1)).
            (PP) Section 1102(c)(1) (50 U.S.C. 442a(c)(1)).
            (QQ) Section 1102(d) (50 U.S.C. 442a(d)).
    (2) That Act is further amended by striking ``of Central 
Intelligence'' each place it appears in the following 
provisions:
            (A) Section 105(a)(2) (50 U.S.C. 403-5(a)(2)).
            (B) Section 105B(a)(2) (50 U.S.C. 403-5b(a)(2)).
            (C) Section 105B(b) (50 U.S.C. 403-5b(b)), the 
        second place it appears.
    (3) That Act is further amended by striking ``Director'' 
each place it appears in the following provisions and inserting 
``Director of National Intelligence'':
    (A) Section 114(c) (50 U.S.C. 404i(c)).
    (B) Section 116(b) (50 U.S.C. 404k(b)).
    (C) Section 1001(b) (50 U.S.C. 441g(b)).
    (C) Section 1001(c) (50 U.S.C. 441g(c)), the first place it 
appears.
    (D) Section 1001(d)(1)(B) (50 U.S.C. 441g(d)(1)(B)).
    (E) Section 1001(e) (50 U.S.C. 441g(e)), the first place it 
appears.
    (4) Section 114A of that Act (50 U.S.C. 404i-1) is amended 
by striking ``Director of Central Intelligence'' and inserting 
``Director of National Intelligence, the Director of the 
Central Intelligence Agency''
    (5) Section 504(a)(2) of that Act (50 U.S.C. 414(a)(2)) is 
amended by striking ``Director of Central Intelligence'' and 
inserting ``Director of the Central Intelligence Agency''.
    (6) Section 701 of that Act (50 U.S.C. 431) is amended--
            (A) in subsection (a), by striking ``Operational 
        files of the Central Intelligence Agency may be 
        exempted by the Director of Central Intelligence'' and 
        inserting ``The Director of the Central Intelligence 
        Agency, with the coordination of the Director of 
        National Intelligence, may exempt operational files of 
        the Central Intelligence Agency''; and
            (B) in subsection (g)(1), by striking ``Director of 
        Central Intelligence'' and inserting ``Director of the 
        Central Intelligence Agency and the Director of 
        National Intelligence''.
    (7) The heading for section 114 of that Act (50 U.S.C. 
404i) is amended to read as follows:

       ``ADDITIONAL ANNUAL REPORTS FROM THE DIRECTOR OF NATIONAL 
                            INTELLIGENCE''.

    (b) Central Intelligence Agency Act of 1949.--(1) The 
Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
seq.) is amended by striking ``Director of Central 
Intelligence'' each place it appears in the following 
provisions and inserting ``Director of National Intelligence'':
            (A) Section 6 (50 U.S.C. 403g).
            (B) Section 17(f) (50 U.S.C. 403q(f)), both places 
        it appears.
    (2) That Act is further amended by striking ``of Central 
Intelligence'' in each of the following provisions:
    (A) Section 2 (50 U.S.C. 403b).
    (B) Section 16(c)(1)(B) (50 U.S.C. 403p(c)(1)(B)).
    (C) Section 17(d)(1) (50 U.S.C. 403q(d)(1)).
    (D) Section 20(c) (50 U.S.C. 403t(c)).
    (3) That Act is further amended by striking ``Director of 
Central Intelligence'' each place it appears in the following 
provisions and inserting ``Director of the Central Intelligence 
Agency'':
            (A) Section 14(b) (50 U.S.C. 403n(b)).
            (B) Section 16(b)(2) (50 U.S.C. 403p(b)(2)).
            (C) Section 16(b)(3) (50 U.S.C. 403p(b)(3)), both 
        places it appears.
            (D) Section 21(g)(1) (50 U.S.C. 403u(g)(1)).
            (E) Section 21(g)(2) (50 U.S.C. 403u(g)(2)).
    (c) Central Intelligence Agency Retirement Act.--Section 
101 of the Central Intelligence Agency Retirement Act (50 
U.S.C. 2001) is amended by striking paragraph (2) and inserting 
the following new paragraph (2):
            ``(2) Director.--The term `Director' means the 
        Director of the Central Intelligence Agency.''.
    (d) CIA Voluntary Separation Pay Act.--Subsection (a)(1) of 
section 2 of the Central Intelligence Agency Voluntary 
Separation Pay Act (50 U.S.C. 2001 note) is amended to read as 
follows:
            ``(1) the term `Director' means the Director of the 
        Central Intelligence Agency;''.
    (e) Foreign Intelligence Surveillance Act of 1978.--(1) The 
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 
et seq.) is amended by striking ``Director of Central 
Intelligence'' each place it appears and inserting ``Director 
of National Intelligence''.
    (f) Classified Information Procedures Act.--Section 9(a) of 
the Classified Information Procedures Act (5 U.S.C. App.) is 
amended by striking ``Director of Central Intelligence'' and 
inserting ``Director of National Intelligence''.
    (g) Intelligence Authorization Acts.--
            (1) Public law 103-359.--Section 811(c)(6)(C) of 
        the Counterintelligence and Security Enhancements Act 
        of 1994 (title VIII of Public Law 103-359) is amended 
        by striking ``Director of Central Intelligence'' and 
        inserting ``Director of National Intelligence''.
            (2) Public law 107-306.--(A) The Intelligence 
        Authorization Act for Fiscal Year 2003 (Public Law 107-
        306) is amended by striking ``Director of Central 
        Intelligence, acting as the head of the intelligence 
        community,'' each place it appears in the following 
        provisions and inserting ``Director of National 
        Intelligence'':
                    (i) Section 313(a) (50 U.S.C. 404n(a)).
                    (ii) Section 343(a)(1) (50 U.S.C. 404n-
                2(a)(1))
            (B) That Act is further amended by striking 
        ``Director of Central Intelligence'' each place it 
        appears in the following provisions and inserting 
        ``Director of National Intelligence'':
                    (i) Section 904(e)(4) (50 U.S.C. 
                402c(e)(4)).
                    (ii) Section 904(e)(5) (50 U.S.C. 
                402c(e)(5)).
                    (iii) Section 904(h) (50 U.S.C. 402c(h)), 
                each place it appears.
                    (iv) Section 904(m) (50 U.S.C. 402c(m)).
            (C) Section 341 of that Act (50 U.S.C. 404n-1) is 
        amended by striking ``Director of Central Intelligence, 
        acting as the head of the intelligence community, shall 
        establish in the Central Intelligence Agency'' and 
        inserting ``Director of National Intelligence shall 
        establish within the Central Intelligence Agency''.
            (D) Section 352(b) of that Act (50 U.S.C. 404-3 
        note) is amended by striking ``Director'' and inserting 
        ``Director of National Intelligence''.
            (3) Public law 108-177.--(A) The Intelligence 
        Authorization Act for Fiscal Year 2004 (Public Law 108-
        177) is amended by striking ``Director of Central 
        Intelligence'' each place it appears in the following 
        provisions and inserting ``Director of National 
        Intelligence'':
                    (i) Section 317(a) (50 U.S.C. 403-3 note).
                    (ii) Section 317(h)(1).
                    (iii) Section 318(a) (50 U.S.C. 441g note).
                    (iv) Section 319(b) (50 U.S.C. 403 note).
                    (v) Section 341(b) (28 U.S.C. 519 note).
                    (vi) Section 357(a) (50 U.S.C. 403 note).
                    (vii) Section 504(a) (117 Stat. 2634), both 
                places it appears.
            (B) Section 319(f)(2) of that Act (50 U.S.C. 403 
        note) is amended by striking ``Director'' the first 
        place it appears and inserting ``Director of National 
        Intelligence''.
            (C) Section 404 of that Act (18 U.S.C. 4124 note) 
        is amended by striking ``Director of Central 
        Intelligence'' and inserting ``Director of the Central 
        Intelligence Agency''.

SEC. 1072. OTHER CONFORMING AMENDMENTS

    (a) National Security Act of 1947.--(1) Section 101(j) of 
the National Security Act of 1947 (50 U.S.C. 402(j)) is amended 
by striking ``Deputy Director of Central Intelligence'' and 
inserting ``Principal Deputy Director of National 
Intelligence''.
    (2) Section 105(a) of that Act (50 U.S.C. 403-5(a)) is 
amended by striking ``The Secretary'' in the matter preceding 
paragraph (1) and inserting ``Consistent with sections 102 and 
102A, the Secretary''.
    (3) Section 105(b) of that Act (50 U.S.C. 403-5(b)) is 
amended by striking ``103 and 104'' in the matter preceding 
paragraph (1) and inserting ``102 and 102A''.
    (4) Section 112(d)(1) of that Act (50 U.S.C. 404g(d)(1)) is 
amended by striking ``section 103(c)(6) of this Act'' and 
inserting ``section 102A(i) of this Act''.
    (5) Section 116(b) of that Act (50 U.S.C. 404k(b)) is 
amended by striking ``to the Deputy Director of Central 
Intelligence, or with respect to employees of the Central 
Intelligence Agency, the Director may delegate such authority 
to the Deputy Director for Operations'' and inserting ``to the 
Principal Deputy Director of National Intelligence, or with 
respect to employees of the Central Intelligence Agency, to the 
Director of the Central Intelligence Agency''.
    (6) Section 506A(b)(1) of that Act (50 U.S.C. 415a-1(b)(1)) 
is amended by striking ``Office of the Deputy Director of 
Central Intelligence'' and inserting ``Office of the Director 
of National Intelligence''.
    (7) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is 
amended by striking ``Office of the Director of Central 
Intelligence'' and inserting ``Office of the Director of 
National Intelligence''.
    (8) Section 1001(b) of that Act (50 U.S.C. 441g(b)) is 
amended by striking ``Assistant Director of Central 
Intelligence for Administration'' and inserting ``Office of the 
Director of National Intelligence''.
    (b) Central Intelligence Act of 1949.--Section 6 of the 
Central Intelligence Agency Act of 1949 (50 U.S.C. 403g) is 
amended by striking ``section 103(c)(7) of the National 
Security Act of 1947 (50 U.S.C. 403-3(c)(7))'' and inserting 
``section 102A(i) of the National Security Act of 1947''.
    (c) Central Intelligence Agency Retirement Act.--Section 
201(c) of the Central Intelligence Agency Retirement Act (50 
U.S.C. 2011(c)) is amended by striking ``paragraph (6) of 
section 103(c) of the National Security Act of 1947 (50 U.S.C. 
403-3(c)) that the Director of Central Intelligence'' and 
inserting ``section 102A(i) of the National Security Act of 
1947 (50 U.S.C. 403-3(c)(1)) that the Director of National 
Intelligence''.
    (d) Intelligence Authorization Acts.--
            (1) Public law 107-306.--(A) Section 343(c) of the 
        Intelligence Authorization Act for Fiscal Year 2003 
        (Public Law 107-306; 50 U.S.C. 404n-2(c)) is amended by 
        striking ``section 103(c)(6) of the National Security 
        Act of 1947 (50 U.S.C. 403-3((c)(6))'' and inserting 
        ``section 102A(i) of the National Security Act of 1947 
        (50 U.S.C. 403-3(c)(1))''.
            (B)(i) Section 902 of that Act (also known as the 
        Counterintelligence Enhancements Act of 2002) (50 
        U.S.C. 402b) is amended by striking ``President'' each 
        place it appears and inserting ``Director of National 
        Intelligence''.
            (ii) Section 902(a)(2) of that Act is amended by 
        striking ``Director of Central Intelligence'' and 
        inserting ``Director of the Central Intelligence 
        Agency''.
            (C) Section 904 of that Act (50 U.S.C. 402c) is 
        amended--
                    (i) in subsection (c), by striking ``Office 
                of the Director of Central Intelligence'' and 
                inserting ``Office of the Director of National 
                Intelligence''; and
                    (ii) in subsection (l), by striking 
                ``Office of the Director of Central 
                Intelligence'' and inserting ``Office of the 
                Director of National Intelligence''.
            (2) Public law 108-177.--(A) Section 317 of the 
        Intelligence Authorization Act for Fiscal Year 2004 
        (Public Law 108-177; 50 U.S.C. 403-3 note) is amended--
                    (i) in subsection (g), by striking 
                ``Assistant Director of Central Intelligence 
                for Analysis and Production'' and inserting 
                ``Deputy Director of National Intelligence''; 
                and
                    (ii) in subsection (h)(2)(C), by striking 
                ``Assistant Director'' and inserting ``Deputy 
                Director of National Intelligence''.
            (B) Section 318(e) of that Act (50 U.S.C. 441g 
        note) is amended by striking ``Assistant Director of 
        Central Intelligence for Analysis and Production'' and 
        inserting ``Deputy Director of National Intelligence''.

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

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

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

    (a) Redesignation.--Paragraph (6) of section 3 of the 
National Security Act of 1947 (50 U.S.C. 401a) is amended by 
striking ``Foreign''.
    (b) Conforming Amendments.--(1)(A) Section 506 of the 
National Security Act of 1947 (50 U.S.C. 415a) is amended--
            (i) in subsection (a), by striking ``National 
        Foreign Intelligence Program'' and inserting ``National 
        Intelligence Program''; and
            (ii) in the section heading, by striking 
        ``foreign''.
    (B) Section 105 of that Act (50 U.S.C. 403-5) is amended--
            (i) in paragraphs (2) and (3) of subsection (a), by 
        striking ``National Foreign Intelligence Program'' and 
        inserting ``National Intelligence Program''; and
            (ii) in the section heading, by striking 
        ``foreign''.
    (2) Section 17(f) of the Central Intelligence Agency Act of 
1949 (50 U.S.C. 403q(f)) is amended by striking ``National 
Foreign Intelligence Program'' and inserting ``National 
Intelligence Program''.

SEC. 1075. REPEAL OF SUPERSEDED AUTHORITY.

    Section 111 of the National Security Act of 1947 (50 U.S.C. 
404f) is repealed.

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

    The table of contents in the first section of the National 
Security Act of 1947 is amended--
            (1) by striking the items relating to sections 102 
        through 105 and inserting the following new items:

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

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

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

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

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

            (5) by striking the item relating to section 506 
        and inserting the following new item:

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

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

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

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

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

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

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

    ``AUTHORITY TO ESTABLISH INSPECTOR GENERAL OF THE OFFICE OF THE 
                   DIRECTOR OF NATIONAL INTELLIGENCE

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

SEC. 1079. ETHICS MATTERS.

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

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

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

SEC. 1081. GENERAL REFERENCES.

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

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

SEC. 1091. TRANSFER OF COMMUNITY MANAGEMENT STAFF.

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

SEC. 1092. TRANSFER OF TERRORIST THREAT INTEGRATION CENTER.

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

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

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

SEC. 1094. IMPLEMENTATION PLAN.

    The President shall transmit to Congress a plan for the 
implementation of this title and the amendments made by this 
title. The plan shall address, at a minimum, the following:
            (1) The transfer of personnel, assets, and 
        obligations to the Director of National Intelligence 
        pursuant to this title.
            (2) Any consolidation, reorganization, or 
        streamlining of activities transferred to the Director 
        of National Intelligence pursuant to this title.
            (3) The establishment of offices within the Office 
        of the Director of National Intelligence to implement 
        the duties and responsibilities of the Director of 
        National Intelligence as described in this title.
            (4) Specification of any proposed disposition of 
        property, facilities, contracts, records, and other 
        assets and obligations to be transferred to the 
        Director of National Intelligence.
            (5) Recommendations for additional legislative or 
        administrative action as the President considers 
        appropriate.

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

    (a) Report.--Not later than one year after the effective 
date of this Act, the Director of National Intelligence shall 
submit to the congressional intelligence committees a report on 
the progress made in the implementation of this title, 
including the amendments made by this title. The report shall 
include a comprehensive description of the progress made, and 
may include such recommendations for additional legislative or 
administrative action as the Director considers appropriate.
    (b) Congressional Intelligence Committees Defined.--In this 
section, the term ``congressional intelligence committees'' 
means--
            (1) the Select Committee on Intelligence of the 
        Senate; and
            (2) the Permanent Select Committee on Intelligence 
        of the House of Representatives.

SEC. 1096. TRANSITIONAL AUTHORITIES.

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

SEC. 1097. EFFECTIVE DATES.

    (a) In General.--Except as otherwise expressly provided in 
this Act, this title and the amendments made by this title 
shall take effect not later than six months after the date of 
the enactment of this Act.
    (b) Specific Effective Dates.--(1)(A) Not later than 60 
days after the date of the appointment of the first Director of 
National Intelligence, the Director of National Intelligence 
shall first appoint individuals to positions within the Office 
of the Director of National Intelligence.
    (B) Subparagraph (A) shall not apply with respect to the 
Principal Deputy Director of National Intelligence.
    (2) Not later than 180 days after the effective date of 
this Act, the President shall transmit to Congress the 
implementation plan required by section 1094.
    (3) Not later than one year after the date of the enactment 
of this Act, the Director of National Intelligence shall 
prescribe regulations, policies, procedures, standards, and 
guidelines required under section 102A of the National Security 
Act of 1947, as amended by section 1011(a) of this Act.

                       Subtitle I--Other Matters

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

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

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

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

SEC. 1103. SEVERABILITY.

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

               TITLE II--FEDERAL BUREAU OF INVESTIGATION

SEC. 2001. IMPROVEMENT OF INTELLIGENCE CAPABILITIES OF THE FEDERAL 
                    BUREAU OF INVESTIGATION.

    (a) Findings.--Congress makes the following findings:
            (1) The National Commission on Terrorist Attacks 
        Upon the United States in its final report stated that, 
        under Director Robert Mueller, the Federal Bureau of 
        Investigation has made significant progress in 
        improving its intelligence capabilities.
            (2) In the report, the members of the Commission 
        also urged that the Federal Bureau of Investigation 
        fully institutionalize the shift of the Bureau to a 
        preventive counterterrorism posture.
    (b) Improvement of Intelligence Capabilities.--The Director 
of the Federal Bureau of Investigation shall continue efforts 
to improve the intelligence capabilities of the Federal Bureau 
of Investigation and to develop and maintain within the Bureau 
a national intelligence workforce.
    (c) National Intelligence Workforce.--(1) In developing and 
maintaining a national intelligence workforce under subsection 
(b), the Director of the Federal Bureau of Investigation shall, 
develop and maintain a specialized and integrated national 
intelligence workforce consisting of agents, analysts, 
linguists, and surveillance specialists who are recruited, 
trained, and rewarded in a manner which ensures the existence 
within the Federal Bureau of Investigation an institutional 
culture with substantial expertise in, and commitment to, the 
intelligence mission of the Bureau.
    (2) Each agent employed by the Bureau after the date of the 
enactment of this Act shall receive basic training in both 
criminal justice matters and national intelligence matters.
    (3) Each agent employed by the Bureau after the date of the 
enactment of this Act shall, to the maximum extent practicable, 
be given the opportunity to undergo, during such agent's early 
service with the Bureau, meaningful assignments in criminal 
justice matters and in national intelligence matters.
    (4) The Director shall--
            (A) establish career positions in national 
        intelligence matters for agents, analysts, and related 
        personnel of the Bureau; and
            (B) in furtherance of the requirement under 
        subparagraph (A) and to the maximum extent practicable, 
        afford agents, analysts, and related personnel of the 
        Bureau the opportunity to work in the career specialty 
        selected by such agents, analysts, and related 
        personnel over their entire career with the Bureau.
    (5) The Director shall carry out a program to enhance the 
capacity of the Bureau to recruit and retain individuals with 
backgrounds in intelligence, international relations, language, 
technology, and other skills relevant to the intelligence 
mission of the Bureau.
    (6) The Director shall, to the maximum extent practicable, 
afford the analysts of the Bureau training and career 
opportunities commensurate with the training and career 
opportunities afforded analysts in other elements of the 
intelligence community.
    (7) Commencing as soon as practicable after the date of the 
enactment of this Act, each direct supervisor of a Field 
Intelligence Group, and each Bureau Operational Manager at the 
Section Chief and Assistant Special Agent in Charge (ASAC) 
level and above, shall be a certified intelligence officer.
    (8) The Director shall, to the maximum extent practicable, 
ensure that the successful discharge of advanced training 
courses, and of one or more assignments to another element of 
the intelligence community, is a precondition to advancement to 
higher level intelligence assignments within the Bureau.
    (d) Field Office Matters.--(1) In improving the 
intelligence capabilities of the Federal Bureau of 
Investigation under subsection (b), the Director of the Federal 
Bureau of Investigation shall ensure that each Field 
Intelligence Group reports directly to a field office senior 
manager responsible for intelligence matters.
    (2) The Director shall provide for such expansion of the 
secure facilities in the field offices of the Bureau as is 
necessary to ensure the discharge by the field offices of the 
intelligence mission of the Bureau.
    (3) The Director shall require that each Field Intelligence 
Group manager ensures the integration of analysts, agents, 
linguists, and surveillance personnel in the field.
    (e) Discharge of Improvements.--(1) The Director of the 
Federal Bureau of Investigation shall carry out subsections (b) 
through (d) through the head of the Directorate of Intelligence 
of the Federal Bureau of Investigation.
    (2) The Director of the Federal Bureau of Investigation 
shall carry out subsections (b) through (d) under the joint 
guidance of the Attorney General and the National Intelligence 
Director in a manner consistent with section 112(e).
    (f) Budget Matters.--The Director of the Federal Bureau of 
Investigation shall, establish a budget structure of the 
Federal Bureau of Investigation to reflect the four principal 
missions of the Bureau as follows:
            (1) Intelligence.
            (2) Counterterrorism and counterintelligence.
            (3) Criminal Enterprises/Federal Crimes.
            (4) Criminal justice services.
    (g) Reports.--(1) Not later than 180 days after the date of 
the enactment of this Act, the Director of the Federal Bureau 
of Investigation shall submit to Congress a report on the 
progress made as of the date of such report in carrying out the 
requirements of this section.
    (2) The Director shall include in each annual program 
review of the Federal Bureau of Investigation that is submitted 
to Congress a report on the progress made by each field office 
of the Bureau during the period covered by such review in 
addressing Bureau and national program priorities.
    (3) Not later than 180 days after the date of the enactment 
of this Act, and every 12 months thereafter, the Director shall 
submit to Congress a report assessing the qualifications, 
status, and roles of analysts at Bureau headquarters and in the 
field offices of the Bureau.
    (4) Not later than 180 days after the date of the enactment 
of this Act, and every 12 months thereafter, the Director shall 
submit to Congress a report on the progress of the Bureau in 
implementing information-sharing principles.

SEC. 2002. DIRECTORATE OF INTELLIGENCE OF THE FEDERAL BUREAU OF 
                    INVESTIGATION.

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

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

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

SEC. 2004. FEDERAL BUREAU OF INVESTIGATION RESERVE SERVICE.

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

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

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

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

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

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

SEC. 2005. FEDERAL BUREAU OF INVESTIGATION MANDATORY SEPARATION AGE.

    (a) Civil Service Retirement System.--Section 8335(b) of 
title 5, United States Code, is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; 
        and
            (2) by adding at the end the following:
            ``(2) In the case of employees of the Federal 
        Bureau of Investigation, the second sentence of 
        paragraph (1) shall be applied by substituting `65 
        years of age' for `60 years of age'. The Federal Bureau 
        of Investigation may not grant more than 50 exemptions 
        in any fiscal year in accordance with the preceding 
        sentence, and the authority to grant such exemptions 
        shall cease to be available after September 30, 
        2007.''.
    (b) Federal Employees' Retirement System.--Section 8425(b) 
of title 5, United States Code, is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; 
        and
            (2) by adding at the end the following:
            ``(2) In the case of employees of the Federal 
        Bureau of Investigation, the second sentence of 
        paragraph (1) shall be applied by substituting `65 
        years of age' for `60 years of age'. The Federal Bureau 
        of Investigation may not grant more than 50 exemptions 
        in any fiscal year in accordance with the preceding 
        sentence, and the authority to grant such exemptions 
        shall cease to be available after September 30, 
        2007.''.

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

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

                     TITLE III--SECURITY CLEARANCES

SEC. 3001. SECURITY CLEARANCES.

    (a) Definitions.--In this section:
            (1) The term ``agency'' means--
                    (A) an executive agency (as that term is 
                defined in section 105 of title 5, United 
                States Code);
                    (B) a military department (as that term is 
                defined in section 102 of title 5, United 
                States Code); and
                    (C) an element of the intelligence 
                community.
            (2) The term ``authorized investigative agency'' 
        means an agency designated by the head of the agency 
        selected pursuant to subsection (b) to conduct a 
        counterintelligence investigation or investigation of 
        persons who are proposed for access to classified 
        information to ascertain whether such persons satisfy 
        the criteria for obtaining and retaining access to such 
        information.
            (3) The term ``authorized adjudicative agency'' 
        means an agency authorized by law, regulation, or 
        direction of the Director of National Intelligence to 
        determine eligibility for access to classified 
        information in accordance with Executive Order 12968.
            (4) The term ``highly sensitive program'' means--
                    (A) a government program designated as a 
                Special Access Program (as that term is defined 
                in section 4.1(h) of Executive Order 12958 or 
                any successor Executive order); or
                    (B) a government program that applies 
                restrictions required for--
                            (i) restricted data (as that term 
                        is defined in section 11 y. of the 
                        Atomic Energy Act of 1954 (42 U.S.C. 
                        2014(y)); or
                            (ii) other information commonly 
                        referred to as ``sensitive 
                        compartmented information''.
            (5) The term ``current investigation file'' means, 
        with respect to a security clearance, a file on an 
        investigation or adjudication that has been conducted 
        during--
                    (A) the 5-year period beginning on the date 
                the security clearance was granted, in the case 
                of a Top Secret Clearance, or the date access 
                was granted to a highly sensitive program;
                    (B) the 10-year period beginning on the 
                date the security clearance was granted in the 
                case of a Secret Clearance; and
                    (C) the 15-year period beginning on the 
                date the security clearance was granted in the 
                case of a Confidential Clearance.
            (6) The term ``personnel security investigation'' 
        means any investigation required for the purpose of 
        determining the eligibility of any military, civilian, 
        or government contractor personnel to access classified 
        information.
            (7) The term ``periodic reinvestigations'' means 
        investigations conducted for the purpose of updating a 
        previously completed background investigation--
                    (A) every 5 years in the case of a top 
                secret clearance or access to a highly 
                sensitive program;
                    (B) every 10 years in the case of a secret 
                clearance; or
                    (C) every 15 years in the case of a 
                Confidential Clearance.
            (8) The term ``appropriate committees of Congress'' 
        means--
                    (A) the Permanent Select Committee on 
                Intelligence and the Committees on Armed 
                Services, Homeland Security, Government Reform, 
                and the Judiciary of the House of 
                Representatives; and
                    (B) the Select Committee on Intelligence 
                and the Committees on Armed Services, Homeland 
                Security and Governmental Affairs, and the 
                Judiciary of the Senate.
    (b) Selection of Entity.--Not later than 90 days after the 
date of the enactment of this Act, the President shall select a 
single department, agency, or element of the executive branch 
to be responsible for--
            (1) directing day-to-day oversight of 
        investigations and adjudications for personnel security 
        clearances, including for highly sensitive programs, 
        throughout the United States Government;
            (2) developing and implementing uniform and 
        consistent policies and procedures to ensure the 
        effective, efficient, and timely completion of security 
        clearances and determinations for access to highly 
        sensitive programs, including the standardization of 
        security questionnaires, financial disclosure 
        requirements for security clearance applicants, and 
        polygraph policies and procedures;
            (3) serving as the final authority to designate an 
        authorized investigative agency or authorized 
        adjudicative agency;
            (4) ensuring reciprocal recognition of access to 
        classified information among the agencies of the United 
        States Government, including acting as the final 
        authority to arbitrate and resolve disputes involving 
        the reciprocity of security clearances and access to 
        highly sensitive programs pursuant to subsection (d);
            (5) ensuring, to the maximum extent practicable, 
        that sufficient resources are available in each agency 
        to achieve clearance and investigative program goals; 
        and
            (6) reviewing and coordinating the development of 
        tools and techniques for enhancing the conduct of 
        investigations and granting of clearances.
    (c) Performance of Security Clearance Investigations.--(1) 
Notwithstanding any other provision of law, not later than 180 
days after the date of the enactment of this Act, the President 
shall, in consultation with the head of the entity selected 
pursuant to subsection (b), select a single agency of the 
executive branch to conduct, to the maximum extent practicable, 
security clearance investigations of employees and contractor 
personnel of the United States Government who require access to 
classified information and to provide and maintain all security 
clearances of such employees and contractor personnel. The head 
of the entity selected pursuant to subsection (b) may designate 
other agencies to conduct such investigations if the head of 
the entity selected pursuant to subsection (b) considers it 
appropriate for national security and efficiency purposes.
    (2) The agency selected under paragraph (1) shall--
            (A) take all necessary actions to carry out the 
        requirements of this section, including entering into a 
        memorandum of understanding with any agency carrying 
        out responsibilities relating to security clearances or 
        security clearance investigations before the date of 
        the enactment of this Act;
            (B) as soon as practicable, integrate reporting of 
        security clearance applications, security clearance 
        investigations, and determinations of eligibility for 
        security clearances, with the database required by 
        subsection (e); and
            (C) ensure that security clearance investigations 
        are conducted in accordance with uniform standards and 
        requirements established under subsection (b), 
        including uniform security questionnaires and financial 
        disclosure requirements.
    (d) Reciprocity of Security Clearance and Access 
Determinations.--(1) All security clearance background 
investigations and determinations completed by an authorized 
investigative agency or authorized adjudicative agency shall be 
accepted by all agencies.
    (2) All security clearance background investigations 
initiated by an authorized investigative agency shall be 
transferable to any other authorized investigative agency.
    (3)(A) An authorized investigative agency or authorized 
adjudicative agency may not establish additional investigative 
or adjudicative requirements (other than requirements for the 
conduct of apolygraph examination) that exceed requirements 
specified in Executive Orders establishing security requirements for 
access to classified information without the approval of the head of 
the entity selected pursuant to subsection (b).
    (B) Notwithstanding subparagraph (A), the head of the 
entity selected pursuant to subsection (b) may establish such 
additional requirements as the head of such entity considers 
necessary for national security purposes.
    (4) An authorized investigative agency or authorized 
adjudicative agency may not conduct an investigation for 
purposes of determining whether to grant a security clearance 
to an individual where a current investigation or clearance of 
equal level already exists or has been granted by another 
authorized adjudicative agency.
    (5) The head of the entity selected pursuant to subsection 
(b) may disallow the reciprocal recognition of an individual 
security clearance by an agency under this section on a case-
by-case basis if the head of the entity selected pursuant to 
subsection (b) determines that such action is necessary for 
national security purposes.
    (6) The head of the entity selected pursuant to subsection 
(b) shall establish a review procedure by which agencies can 
seek review of actions required under this section.
    (e) Database on Security Clearances.--(1) Not later than 12 
months after the date of the enactment of this Act, the 
Director of the Office of Personnel Management shall, in 
cooperation with the heads of the entities selected pursuant to 
subsections (b) and (c), establish and commence operating and 
maintaining an integrated, secure, database into which 
appropriate data relevant to the granting, denial, or 
revocation of a security clearance or access pertaining to 
military, civilian, or government contractor personnel shall be 
entered from all authorized investigative and adjudicative 
agencies.
    (2) The database under this subsection shall function to 
integrate information from existing Federal clearance tracking 
systems from other authorized investigative and adjudicative 
agencies into a single consolidated database.
    (3) Each authorized investigative or adjudicative agency 
shall check the database under this subsection to determine 
whether an individual the agency has identified as requiring a 
security clearance has already been granted or denied a 
security clearance, or has had a security clearance revoked, by 
any other authorized investigative or adjudicative agency.
    (4) The head of the entity selected pursuant to subsection 
(b) shall evaluate the extent to which an agency is submitting 
information to, and requesting information from, the database 
under this subsection as part of a determination of whether to 
certify the agency as an authorized investigative agency or 
authorized adjudicative agency.
    (5) The head of the entity selected pursuant to subsection 
(b) may authorize an agency to withhold information about 
certain individuals from the database under this subsection if 
the head of the entity considers it necessary for national 
security purposes.
    (f) Evaluation of Use of Available Technology in Clearance 
Investigations and Adjudications.--(1) The head of the entity 
selected pursuant to subsection (b) shall evaluate the use of 
available information technology and databases to expedite 
investigative and adjudicative processes for all and to verify 
standard information submitted as part of an application for a 
security clearance.
    (2) The evaluation shall assess the application of the 
technologies described in paragraph (1) for--
            (A) granting interim clearances to applicants at 
        the secret, top secret, and special access program 
        levels before the completion of the appropriate full 
        investigation;
            (B) expediting investigations and adjudications of 
        security clearances, including verification of 
        information submitted by the applicant;
            (C) ongoing verification of suitability of 
        personnel with security clearances in effect for 
        continued access to classified information;
            (D) use of such technologies to augment periodic 
        reinvestigations;
            (E) assessing the impact of the use of such 
        technologies on the rights of applicants to verify, 
        correct, or challenge information obtained through such 
        technologies; and
            (F) such other purposes as the head of the entity 
        selected pursuant to subsection (b) considers 
        appropriate.
    (3) An individual subject to verification utilizing the 
technology described in paragraph (1) shall be notified of such 
verification, shall provide consent to such use, and shall have 
access to data being verified in order to correct errors or 
challenge information the individual believes is incorrect.
    (4) Not later than one year after the date of the enactment 
of this Act, the head of the entity selected pursuant to 
subsection (b) shall submit to the President and the 
appropriate committees of Congress a report on the results of 
the evaluation, including recommendations on the use of 
technologies described in paragraph (1).
    (g) Reduction in Length of Personnel Security Clearance 
Process.--(1) The head of the entity selected pursuant to 
subsection (b) shall, within 90 days of selection under that 
subsection, develop, in consultation with the appropriate 
committees of Congress and each authorized adjudicative agency, 
a plan to reduce the length of the personnel security clearance 
process.
    (2)(A) To the extent practical the plan under paragraph (1) 
shall require that each authorized adjudicative agency make a 
determination on at least 90 percent of all applications for a 
personnel security clearance within an average of 60 days after 
the date of receipt of the completed application for a security 
clearance by an authorized investigative agency. Such 60-day 
average period shall include--
            (i) a period of not longer than 40 days to complete 
        the investigative phase of the clearance review; and
            (ii) a period of not longer than 20 days to 
        complete the adjudicative phase of the clearance 
        review.
    (B) Determinations on clearances not made within 60 days 
shall be made without delay.
    (3)(A) The plan under paragraph (1) shall take effect 5 
years after the date of the enactment of this Act.
    (B) During the period beginning on a date not later than 2 
years after the date after the enactment of this Act and ending 
on the date on which the plan under paragraph (1) takes effect, 
each authorized adjudicative agency shall make a determination 
on at least 80 percent of all applications for a personnel 
security clearance pursuant to this section within an average 
of 120 days after the date of receipt of the application for a 
security clearance by an authorized investigative agency. Such 
120-day average period shall include--
            (i) a period of not longer than 90 days to complete 
        the investigative phase of the clearance review; and
            (ii) a period of not longer than 30 days to 
        complete the adjudicative phase of the clearance 
        review.
    (h) Reports.--(1) Not later than February 15, 2006, and 
annually thereafter through 2011, the head of the entity 
selected pursuant to subsection (b) shall submit to the 
appropriate committees of Congress a report on the progress 
made during the preceding year toward meeting the requirements 
of this section.
    (2) Each report shall include, for the period covered by 
such report--
            (A) the periods of time required by the authorized 
        investigative agencies and authorized adjudicative 
        agencies for conducting investigations, adjudicating 
        cases, and granting clearances, from date of submission 
        to ultimate disposition and notification to the subject 
        and the subject's employer;
            (B) a discussion of any impediments to the smooth 
        and timely functioning of the requirements of this 
        section; and
            (C) such other information or recommendations as 
        the head of the entity selected pursuant to subsection 
        (b) considers appropriate.
    (i) Authorization of Appropriations.--There is authorized 
to be appropriated such sums as may be necessary for fiscal 
year 2005 and each fiscal year thereafter for the 
implementation, maintenance, and operation of the database 
required by subsection (e).

                   TITLE IV--TRANSPORTATION SECURITY

       Subtitle A--National Strategy for Transportation Security

SEC. 4001. NATIONAL STRATEGY FOR TRANSPORTATION SECURITY.

    (a) In General.--Section 114 of title 49, United States 
Code, is amended by adding at the end the following:
    ``(t) Transportation Security Strategic Planning.--
            ``(1) In general.--The Secretary of Homeland 
        Security shall develop, prepare, implement, and update, 
        as needed--
                    ``(A) a National Strategy for 
                Transportation Security; and
                    ``(B) transportation modal security plans.
            ``(2) Role of secretary of transportation.--The 
        Secretary of Homeland Security shall work jointly with 
        the Secretary of Transportation in developing, 
        revising, and updating the documents required by 
        paragraph (1).
            ``(3) Contents of national strategy for 
        transportation security.--The National Strategy for 
        Transportation Security shall include the following:
                    ``(A) An identification and evaluation of 
                the transportation assets in the United States 
                that, in the interests of national security and 
                commerce, must be protected from attack or 
                disruption by terrorist or other hostile 
                forces, including modal security plans for 
                aviation, bridge and tunnel, commuter rail and 
                ferry, highway, maritime, pipeline, rail, mass 
                transit, over-the-road bus, and other public 
                transportation infrastructure assets that could 
                be at risk of such an attack or disruption.
                    ``(B) The development of risk-based 
                priorities across all transportation modes and 
                realistic deadlines for addressing security 
                needs associated with those assets referred to 
                in subparagraph (A).
                    ``(C) The most appropriate, practical, and 
                cost-effective means of defending those assets 
                against threats to their security.
                    ``(D) A forward-looking strategic plan that 
                sets forth the agreed upon roles and missions 
                of Federal, state, regional, and local 
                authorities and establishes mechanisms for 
                encouraging private sector cooperation and 
                participation in the implementation of such 
                plan.
                    ``(E) A comprehensive delineation of 
                response and recovery responsibilities and 
                issues regarding threatened and executed acts 
                of terrorism within the United States.
                    ``(F) A prioritization of research and 
                development objectives that support 
                transportation security needs, giving a higher 
                priority to research and development directed 
                toward protecting vital transportation assets.
            ``(4) Submissions of plans to congress.--
                    ``(A) Initial strategy.--The Secretary of 
                Homeland Security shall submit the National 
                Strategy for Transportation Security, including 
                the transportation modal security plans, 
                developed under this subsection to the 
                appropriate congressional committees not later 
                than April 1, 2005.
                    ``(B) Subsequent versions.--After December 
                31, 2005, the Secretary of Homeland Security 
                shall submit the National Strategy for 
                Transportation Security, including the 
                transportation modal security plans and any 
                revisions to the National Strategy for 
                Transportation Security and the transportation 
                modal security plans, to appropriate 
                congressional committees not less frequently 
                than April 1 of each even-numbered year.
                    ``(C) Periodic progress report.--
                            ``(i) Requirement for report.--Each 
                        year, in conjunction with the 
                        submission of the budget to Congress 
                        under section 1105(a) of title 31, 
                        United States Code, the Secretary of 
                        Homeland Security shall submit to the 
                        appropriate congressional committees an 
                        assessment of the progress made on 
                        implementing the National Strategy for 
                        Transportation Security.
                            ``(ii) Content.--Each progress 
                        report under this subparagraph shall 
                        include, at a minimum, recommendations 
                        for improving and implementing the 
                        National Strategy for Transportation 
                        Security and the transportation modal 
                        security plans that the Secretary, in 
                        consultation with the Secretary of 
                        Transportation, considers appropriate.
                    ``(D) Classified material.--Any part of the 
                National Strategy for Transportation Security 
                or the transportation modal security plans that 
                involve information that is properly classified 
                under criteria established by Executive order 
                shall be submitted to the appropriate 
                congressional committees separately in a 
                classified format.
                    ``(E) Appropriate congressional committees 
                defined.--In this subsection, the term 
                ``appropriate congressional committees'' means 
                the Committee on Transportation and 
                Infrastructure and the Select Committee on 
                Homeland Security of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation and the Committee 
                on Homeland Security and Governmental Affairs 
                of the Senate.
            ``(5) Priority Status.--
                    ``(A) In general.--The National Strategy 
                for Transportation Security shall be the 
                governing document for Federal transportation 
                security efforts.
                    ``(B) Other plans and reports.--The 
                National Strategy for Transportation Security 
                shall include, as an integral part or as an 
                appendix--
                            ``(i) the current National Maritime 
                        Transportation Security Plan under 
                        section 70103 of title 46;
                            ``(ii) the report required by 
                        section 44938 of this title;
                            ``(iii) transportation modal 
                        security plans required under this 
                        section; and
                            ``(iv) any other transportation 
                        security plan or report that the 
                        Secretary of Homeland Security 
                        determines appropriate for 
                        inclusion.''.
    (b) Aviation Security Planning; Operational Criteria.--
Section 44904 of title 49, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection 
        (e); and
            (2) by inserting after subsection (b) the 
        following:
    ``(c) Modal Security Plan for Aviation.--In addition to the 
requirements set forth in subparagraphs (B) through (F) of 
section 114(t)(3), the modal security plan for aviation 
prepared under section 114(t) shall--
            ``(1) establish a damage mitigation and recovery 
        plan for the aviation system in the event of a 
        terrorist attack; and
            ``(2) include a threat matrix document that 
        outlines each threat to the United States civil 
        aviation system and the corresponding layers of 
        security in place to address such threat.
    ``(d) Operational Criteria.--Not later than 90 days after 
the date of the submission of the National Strategy for 
TransportationSecurity under section 114(t)(4)(A), the 
Assistant Secretary of Homeland Security (Transportation Security 
Administration) shall issue operational criteria to protect airport 
infrastructure and operations against the threats identified in the 
plans prepared under section 114(t)(1) and shall approve best practices 
guidelines for airport assets.''.

                     Subtitle B--Aviation Security

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

    (a) Use of Biometric Identifier Technology.--Section 
44903(h) of title 49, United States Code, is amended--
            (1) in paragraph (4)(E) by striking ``may provide 
        for'' and inserting ``shall issue, not later than March 
        31, 2005, guidance for''; and
            (2) by adding at the end the following:
            ``(5) Use of biometric technology in airport access 
        control systems.--In issuing guidance under paragraph 
        (4)(E), the Assistant Secretary of Homeland Security 
        (Transportation Security Administration) in 
        consultation with representatives of the aviation 
        industry, the biometric identifier industry, and the 
        National Institute of Standards and Technology, shall 
        establish, at a minimum--
                    ``(A) comprehensive technical and 
                operational system requirements and performance 
                standards for the use of biometric identifier 
                technology in airport access control systems 
                (including airport perimeter access control 
                systems) to ensure that the biometric 
                identifier systems are effective, reliable, and 
                secure;
                    ``(B) a list of products and vendors that 
                meet the requirements and standards set forth 
                in subparagraph (A);
                    ``(C) procedures for implementing biometric 
                identifier systems--
                            ``(i) to ensure that individuals do 
                        not use an assumed identity to enroll 
                        in a biometric identifier system; and
                            ``(ii) to resolve failures to 
                        enroll, false matches, and false non-
                        matches; and
                    ``(D) best practices for incorporating 
                biometric identifier technology into airport 
                access control systems in the most effective 
                manner, including a process to best utilize 
                existing airport access control systems, 
                facilities, and equipment and existing data 
                networks connecting airports.
            ``(6) Use of biometric technology for law 
        enforcement officer travel.--
                    ``(A) In general.--Not later than 120 days 
                after the date of enactment of this paragraph, 
                the Assistant Secretary, in consultation with 
                the Attorney General, shall--
                            ``(i) establish a law enforcement 
                        officer travel credential that 
                        incorporates biometric identifier 
                        technology and is uniform across all 
                        Federal, State, local, tribal, and 
                        territorial government law enforcement 
                        agencies;
                            ``(ii) establish a process by which 
                        the travel credential will be used to 
                        verify the identity of a Federal, 
                        State, local, tribal, or territorial 
                        law enforcement officer seeking to 
                        carry a weapon on board an aircraft, 
                        without unnecessarily disclosing to the 
                        public that the individual is a law 
                        enforcement officer;
                            ``(iii) establish procedures--
                                    ``(I) to ensure that only 
                                Federal, State, local, tribal, 
                                and territorial government law 
                                enforcement officers are issued 
                                a law enforcement travel 
                                credential;
                                    ``(II) to resolve failures 
                                to enroll, false matches, and 
                                false non-matches relating to 
                                use of the law enforcement 
                                travel credential; and
                                    ``(III) to invalidate any 
                                law enforcement travel 
                                credential that is lost, 
                                stolen, or no longer authorized 
                                for use;
                            ``(iv) begin issuance of the travel 
                        credential to each Federal, State, 
                        local, tribal, or territorial 
                        government law enforcement officer 
                        authorized by the Assistant Secretary 
                        to carry a weapon on board an aircraft; 
                        and
                            ``(v) take such other actions with 
                        respect to the travel credential as the 
                        Assistant Secretary considers 
                        appropriate.
                    ``(B) Funding.--There is authorized to be 
                appropriated such sums as may be necessary to 
                carry out this paragraph.
            ``(7) Definitions.--In this subsection, the 
        following definitions apply:
                    ``(A) Biometric identifier information.--
                The term `biometric identifier information' 
                means the distinct physical or behavioral 
                characteristics of an individual that are used 
                for unique identification, or verification of 
                the identity, of an individual.
                    ``(B) Biometric identifier.--The term 
                `biometric identifier' means a technology that 
                enables the automated identification, or 
                verification of the identity, of an individual 
                based on biometric information.
                    ``(C) Failure to enroll.--The term `failure 
                to enroll' means the inability of an individual 
                to enroll in a biometric identifier system due 
                to an insufficiently distinctive biometric 
                sample, the lack of a body part necessary to 
                provide the biometric sample, a system design 
                that makes it difficult to provide consistent 
                biometric identifier information, or other 
                factors.
                    ``(D) False match.--The term `false match' 
                means the incorrect matching of one 
                individual's biometric identifier information 
                to another individual's biometric identifier 
                information by a biometric identifier system.
                    ``(E) False non-match.--The term `false 
                non-match' means the rejection of a valid 
                identity by a biometric identifier system.
                    ``(F) Secure area of an airport.--The term 
                `secure area of an airport' means the sterile 
                area and the Secure Identification Display Area 
                of an airport (as such terms are defined in 
                section 1540.5 of title 49, Code of Federal 
                Regulations, or any successor regulation to 
                such section).''.
    (b) Aviation Security Research and Development.--There is 
authorized to be appropriated to the Secretary of Homeland 
Security for the use of the Transportation Security 
Administration $20,000,000, in addition to any amounts 
otherwise authorized by law, for research and development of 
advanced biometric technology applications to aviation 
security, including mass identification technology.
    (c) Sense of Congress on Transfer of Technology.--It is the 
sense of Congress that the national intelligence community and 
the Department of Homeland Security should share information on 
and technological advancements to biometric systems, biometric 
technology, and biometric identifier systems obtained through 
research and development programs conducted by various Federal 
agencies.
    (d) Biometric Center of Excellence.--There is authorized to 
be appropriated $1,000,000, in addition to any amounts 
otherwise authorized by law, for the establishment of a 
competitive center of excellence that will develop and expedite 
the Federal Government's use of biometric identifiers.

SEC. 4012. ADVANCED AIRLINE PASSENGER PRESCREENING.

    (a) In General.--
            (1) Domestic flights.--Section 44903(j)(2) of title 
        49, United States Code, is amended by adding at the end 
        the following:
                    ``(C) Advanced airline passenger 
                prescreening.--
                            ``(i) Commencement of testing.--Not 
                        later than January 1, 2005, the 
                        Assistant Secretary of Homeland 
                        Security (Transportation Security 
                        Administration), or the designee of the 
                        Assistant Secretary, shall commence 
                        testing of an advanced passenger 
                        prescreening system that will allow the 
                        Department of Homeland Security to 
                        assume the performance of comparing 
                        passenger information, as defined by 
                        the Assistant Secretary, to the 
                        automatic selectee and no fly lists, 
                        utilizing all appropriate records in 
                        the consolidated and integrated 
                        terrorist watchlist maintained by the 
                        Federal Government.
                            ``(ii) Assumption of function.--Not 
                        later than 180 days after completion of 
                        testing under clause (i), the Assistant 
                        Secretary, or the designee of the 
                        Assistant Secretary, shall begin to 
                        assume the performance of the passenger 
                        prescreening function of comparing 
                        passenger information to the automatic 
                        selectee and no fly lists and utilize 
                        all appropriate records in the 
                        consolidated and integrated terrorist 
                        watchlist maintained by the Federal 
                        Government in performing that function.
                            ``(iii) Requirements.--In assuming 
                        performance of the function under 
                        clause (ii), the Assistant Secretary 
                        shall--
                                    ``(I) establish a procedure 
                                to enable airline passengers, 
                                who are delayed or prohibited 
                                from boarding a flight because 
                                the advanced passenger 
                                prescreening system determined 
                                that they might pose a security 
                                threat, to appeal such 
                                determination and correct 
                                information contained in the 
                                system;
                                    ``(II) ensure that Federal 
                                Government databases that will 
                                be used to establish the 
                                identity of a passenger under 
                                the system will not produce a 
                                large number of false 
                                positives;
                                    ``(III) establish an 
                                internal oversight board to 
                                oversee and monitor the manner 
                                in which the system is being 
                                implemented;
                                    ``(IV) establish sufficient 
                                operational safeguards to 
                                reduce the opportunities for 
                                abuse;
                                    ``(V) implement substantial 
                                security measures to protect 
                                the system from unauthorized 
                                access;
                                    ``(VI) adopt policies 
                                establishing effective 
                                oversight of the use and 
                                operation of the system; and
                                    ``(VII) ensure that there 
                                are no specific privacy 
                                concerns with the technological 
                                architecture of the system.
                            ``(iv) Passenger information.--Not 
                        later than 180 days after the 
                        completion of the testing of the 
                        advanced passenger prescreening system, 
                        the Assistant Secretary, by order or 
                        interim final rule--
                                    ``(I) shall require air 
                                carriers to supply to the 
                                Assistant Secretary the 
                                passenger information needed to 
                                begin implementing the advanced 
                                passenger prescreening system; 
                                and
                                    ``(II) shall require 
                                entities that provide systems 
                                and services to air carriers in 
                                the operation of air carrier 
                                reservations systems to provide 
                                to air carriers passenger 
                                information in possession of 
                                such entities, but only to the 
                                extent necessary to comply with 
                                subclause (I).
                    ``(D) Screening of employees against 
                watchlist.--The Assistant Secretary of Homeland 
                Security (Transportation Security 
                Administration), in coordination with the 
                Secretary of Transportation and the 
                Administrator of the Federal Aviation 
                Administration, shall ensure that individuals 
                are screened against all appropriate records in 
                the consolidated and integrated terrorist 
                watchlist maintained by the Federal Government 
                before--
                            ``(i) being certificated by the 
                        Federal Aviation Administration;
                            ``(ii) being granted unescorted 
                        access to the secure area of an 
                        airport; or
                            ``(iii) being granted unescorted 
                        access to the air operations area (as 
                        defined in section 1540.5 of title 49, 
                        Code of Federal Regulations, or any 
                        successor regulation to such section) 
                        of an airport.
                    ``(E) Aircraft charter customer and lessee 
                prescreening.--
                            ``(i) In general.--Not later than 
                        90 days after the date on which the 
                        Assistant Secretary assumes the 
                        performance of the advanced passenger 
                        prescreening function under 
                        subparagraph (C)(ii), the Assistant 
                        Secretary shall establish a process by 
                        which operators of aircraft to be used 
                        in charter air transportation with a 
                        maximum takeoff weight greater than 
                        12,500 pounds and lessors of aircraft 
                        with a maximum takeoff weight greater 
                        than 12,500 pounds may--
                                    ``(I) request the 
                                Department of Homeland Security 
                                to use the advanced passenger 
                                prescreening system to compare 
                                information about any 
                                individual seeking to charter 
                                an aircraft with a maximum 
                                takeoff weight greater than 
                                12,500 pounds, any passenger 
                                proposed to be transported 
                                aboard such aircraft, and any 
                                individual seeking to lease an 
                                aircraft with a maximum takeoff 
                                weight greater than 12,500 
                                pounds to the automatic 
                                selectee and no fly lists, 
                                utilizing all appropriate 
                                records in the consolidated and 
                                integrated terrorist watchlist 
                                maintained by the Federal 
                                Government; and
                                    ``(II) refuse to charter or 
                                lease an aircraft with a 
                                maximum takeoff weight greater 
                                than 12,500 pounds to or 
                                transport aboard such aircraft 
                                any persons identified on such 
                                watch list.
                            ``(ii) Requirements.--The 
                        requirements of subparagraph (C)(iii) 
                        shall apply to this subparagraph.
                            ``(iii) No fly and automatic 
                        selectee lists.--The Secretary of 
                        Homeland Security, in consultation with 
                        the Terrorist Screening Center, shall 
                        design and review, as necessary, 
                        guidelines, policies, and operating 
                        procedures for the collection, removal, 
                        and updating of data maintained, or to 
                        be maintained, in the no fly and 
                        automatic selectee lists.
                    ``(F) Applicability.--Section 607 of the 
                Vision 100--Century of Aviation Reauthorization 
                Act (49 U.S.C. 44903 note; 117 Stat. 2568) 
                shall not apply to the advanced passenger 
                prescreening system established under 
                subparagraph (C).
                    ``(G) Appeal procedures.--
                            ``(i) In general.--The Assistant 
                        Secretary shall establish a timely and 
                        fair process for individuals identified 
                        as a threat under one or more of 
                        subparagraphs (C), (D), and (E) to 
                        appeal to the Transportation Security 
                        Administration the determination and 
                        correct any erroneous information.
                            ``(ii) Records.--The process shall 
                        include the establishment of a method 
                        by which the Assistant Secretary will 
                        be able to maintain a record of air 
                        passengers and other individuals who 
                        have been misidentified and have 
                        corrected erroneous information. To 
                        prevent repeated delays of 
                        misidentified passengers and other 
                        individuals, the Transportation 
                        Security Administration record shall 
                        contain information determined by the 
                        Assistant Secretary to authenticate the 
                        identity of such a passenger or 
                        individual.
                    ``(H) Definition.--In this paragraph, the 
                term `secure area of an airport' means the 
                sterile area and the Secure Identification 
                Display Area of an airport (as such terms are 
                defined in section 1540.5 of title 49, Code of 
                Federal Regulations, or any successor 
                regulation to such section).''.
            (2) International flights.--Section 44909(c) of 
        title 49, United States Code, is amended--
                            (i) by striking ``paragraph (5),'' 
                        in paragraph (4) and inserting 
                        ``paragraphs (5) and (6),''; and
                            (ii) by adding at the end the 
                        following:
            ``(6) Prescreening international passengers.--
                    ``(A) In general.--Not later than 60 days 
                after date of enactment of this paragraph, the 
                Secretary of Homeland Security, or the designee 
                of the Secretary, shall issue a notice of 
                proposed rulemaking that will allow the 
                Department of Homeland Security to compare 
                passenger information for any international 
                flight to or from the United States against the 
                consolidated and integrated terrorist watchlist 
                maintained by the Federal Government before 
                departure of the flight.
                    ``(B) Appeal procedures.--
                            ``(i) In general.--The Secretary of 
                        Homeland Security shall establish a 
                        timely and fair process for individuals 
                        identified as a threat under 
                        subparagraph (A) to appeal to the 
                        Department of Homeland Security the 
                        determination and correct any erroneous 
                        information.
                            ``(ii) Records.--The process shall 
                        include the establishment of a method 
                        by which the Secretary will be able to 
                        maintain a record of air passengers and 
                        other individuals who have been 
                        misidentified and have corrected 
                        erroneous information. To prevent 
                        repeated delays of misidentified 
                        passengers and other individuals, the 
                        Department of Homeland Security record 
                        shall contain information determined by 
                        the Secretary to authenticate the 
                        identity of such a passenger or 
                        individual.''.
    (b) Report on Effects on Privacy and Civil Liberties.--
            (1) Requirement for report.--Not later than 180 
        days after the date of the enactment of this Act, the 
        Security Privacy Officer of the Department of Homeland 
        Security shall submit a report assessing the impact of 
        the automatic selectee and no fly lists on privacy and 
        civil liberties to the Committee on the Judiciary, the 
        Committee on Homeland Security and Governmental 
        Affairs, and the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on the 
        Judiciary, the Committee on Government Reform, the 
        Committee on Transportation and Infrastructure, and the 
        Select Committee on Homeland Security of the House of 
        Representatives.
            (2) Content.--The report submitted under paragraph 
        (1) shall include--
                    (A) any recommendations for practices, 
                procedures, regulations, or legislation that 
                the Security Privacy Officer considers 
                necessary to minimize adverse effects of 
                automatic selectee and no fly lists on privacy, 
                discrimination, due process, and other civil 
                liberties;
                    (B) a discussion of the implications of 
                applying those lists to other modes of 
                transportation; and
                    (C) the effect that implementation of the 
                recommendations would have on the effectiveness 
                of the use of such lists to protect the United 
                States against terrorist attacks.
            (3) Form.--To the greatest extent consistent with 
        the protection of law enforcement-sensitive information 
        and classified information, and the administration of 
        applicable law, the report shall be submitted in 
        unclassified form and shall be available to the public. 
        The report may contain a classified annex if necessary.
    (c) Report on Criteria for Consolidated Terrorist Watch 
List.--
            (1) In general.--Within 180 days after the date of 
        enactment of this Act, the Director of National 
        Intelligence, in consultation with the Secretary of 
        Homeland Security, the Secretary of State, and the 
        Attorney General, shall submit to Congress a report on 
        the Terrorist Screening Center consolidated screening 
        watch list.
            (2) Contents.--The report shall include--
                    (A) the criteria for placing the name of an 
                individual on the watch list;
                    (B) the minimum standards for reliability 
                and accuracy of identifying information;
                    (C) the degree of information certainty and 
                the range of threat levels that are to be 
                identified for an individual; and
                    (D) the range of applicable consequences 
                that are to apply to an individual, if located.
            (3) Form.--To the greatest extent consistent with 
        the protection of law enforcement-sensitive information 
        and classified information and the administration of 
        applicable law, the report shall be submitted in 
        unclassified form and shall be available to the public. 
        The report may contain a classified annex if necessary.

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

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

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

    ``(a) Weapons and Explosives.--The Secretary of Homeland 
Security shall give a high priority to developing, testing, 
improving, and deploying, at airport screening checkpoints, 
equipment that detects nonmetallic, chemical, biological, and 
radiological weapons, and explosives, in all forms, on 
individuals and in their personal property. The Secretary shall 
ensure that the equipment alone, or as part of an integrated 
system, can detect under realistic operating conditions the 
types of weapons and explosives that terrorists would likely 
try to smuggle aboard an air carrier aircraft.
    ``(b) Strategic Plan for Deployment and Use of Explosive 
Detection Equipment at Airport Screening Checkpoints.--
            ``(1) In general.--Not later than 90 days after the 
        date of enactment of this section, the Assistant 
        Secretary of Homeland Security (Transportation Security 
        Administration) shall submit to the appropriate 
        congressional committees a strategic plan to promote 
        the optimal utilization and deployment of explosive 
        detection equipment at airports to screen individuals 
        and their personal property. Such equipment includes 
        walk-through explosive detection portals, document 
        scanners, shoe scanners, and backscatter x-ray 
        scanners. The plan may be submitted in a classified 
        format.
            ``(2) Content.--The strategic plan shall include, 
        at minimum--
                    ``(A) a description of current efforts to 
                detect explosives in all forms on individuals 
                and in their personal property;
                    ``(B) a description of the operational 
                applications of explosive detection equipment 
                at airport screening checkpoints;
                    ``(C) a deployment schedule and a 
                description of the quantities of equipment 
                needed to implement the plan;
                    ``(D) a description of funding needs to 
                implement the plan, including a financing plan 
                that provides for leveraging of non-Federal 
                funding;
                    ``(E) a description of the measures taken 
                and anticipated to be taken in carrying out 
                subsection (d); and
                    ``(F) a description of any recommended 
                legislative actions.
    ``(c) Portal Detection Systems.--There is authorized to be 
appropriated to the Secretary of Homeland Security for the use 
of the Transportation Security Administration $250,000,000, in 
addition to any amounts otherwise authorized by law, for 
research, development, and installation of detection systems 
and other devices for the detection of biological, chemical, 
radiological, and explosive materials.
    ``(d) Interim Action.--Until measures are implemented that 
enable the screening of all passengers for explosives, the 
Assistant Secretary shall provide, by such means as the 
Assistant Secretary considers appropriate, explosives detection 
screening for all passengers identified for additional 
screening and their personal property that will be carried 
aboard a passenger aircraft operated by an air carrier or 
foreign air carrier in air transportation or intrastate air 
transportation.''.
    (b) Conforming Amendment.--The analysis for chapter 449 of 
title 49, United States Code, is amended by inserting after the 
item relating to section 44924 the following:

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

SEC. 4014. ADVANCED AIRPORT CHECKPOINT SCREENING DEVICES.

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

SEC. 4015. IMPROVEMENT OF SCREENER JOB PERFORMANCE.

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

SEC. 4016. FEDERAL AIR MARSHALS.

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

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

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

SEC. 4018. FOREIGN AIR MARSHAL TRAINING.

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

SEC. 4019. IN-LINE CHECKED BAGGAGE SCREENING.

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

SEC. 4020. CHECKED BAGGAGE SCREENING AREA MONITORING.

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

SEC. 4021. WIRELESS COMMUNICATION.

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

SEC. 4022. IMPROVED PILOT LICENSES.

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

SEC. 4023. AVIATION SECURITY STAFFING.

    (a) Aviation Security Staffing.--Not later than 90 days 
after the date of enactment of this Act, the Assistant 
Secretary of Homeland Security (Transportation Security 
Administration) shall develop and submit to the appropriate 
congressional committees standards for determining the aviation 
security staffing for all airports at which screening is 
required under section 44901 of title 49, United States Code, 
necessary to--
            (1) provide necessary levels of aviation security; 
        and
            (2) ensure that the average aviation security-
        related delay experienced by airline passengers is 
        minimized.
    (b) GAO Analysis.--As soon as practicable after the date on 
which the Assistant Secretary has developed standards under 
subsection (a), the Comptroller General shall conduct an 
expedited analysis of, and submit a report to the appropriate 
congressional committees on, the standards for effectiveness, 
administrability, ease of compliance, and consistency with the 
requirements of existing law.
    (c) Integration of Federal Airport Workforce and Aviation 
Security.--The Secretary of Homeland Security shall conduct a 
study of the feasibility of combining operations of Federal 
employees involved in screening at commercial airports and 
aviation security-related functions under the authority of the 
Department of Homeland Security in order to coordinate 
security-related activities, increase the efficiency and 
effectiveness of those activities, and increase commercial air 
transportation security.

SEC. 4024. IMPROVED EXPLOSIVE DETECTION SYSTEMS.

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

SEC. 4025. PROHIBITED ITEMS LIST.

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

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

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

SEC. 4027. TECHNICAL CORRECTIONS.

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

SEC. 4028. REPORT ON SECONDARY FLIGHT DECK BARRIERS.

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

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

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

                     Subtitle C--Air Cargo Security

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

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

SEC. 4052. AIR CARGO SECURITY.

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

SEC. 4053. AIR CARGO SECURITY REGULATIONS.

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

SEC. 4054. REPORT ON INTERNATIONAL AIR CARGO THREATS.

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

                     Subtitle D--Maritime Security

SEC. 4071. WATCH LISTS FOR PASSENGERS ABOARD VESSELS.

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

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

    (a) National Maritime Transportation Security Plan.--
Section 70103(a)(1) of title 46, United States Code, is amended 
by striking ``The Secretary'' and inserting ``Not later than 
April 1, 2005, the Secretary''.
    (b) Facility and Vessel Vulnerability Assessments.--Section 
70102(b)(1) of title 46, United States Code, is amended by 
striking ``, the Secretary'' and inserting ``and by not later 
than December 31, 2004, the Secretary''.
    (c) Strategic Plan Reports.--Not later than 90 days after 
the date of the enactment of this Act, the Secretary of the 
department in which the Coast Guard is operating shall submit 
to the Committee on Commerce, Science, and Transportation of 
the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives--
            (1) a comprehensive program management plan that 
        identifies specific tasks to be completed, and 
        deadlines for completion, for the transportation 
        security card program under section 70105 of title 46, 
        United States Code, that incorporates best practices 
        for communicating, coordinating, and collaborating with 
        the relevant stakeholders to resolve relevant issues, 
        such as background checks;
            (2) a report on the status of negotiations under 
        section 103(a) of the Maritime Transportation Security 
        Act of 2002 (46 U.S.C. 70111);
            (3) the report required by section 107(b) of the 
        Maritime Transportation Security Act of 2002 (33 U.S.C. 
        1226 note); and
            (4) a report on the status of the development of 
        the system and standards required by section 111 of the 
        Maritime Transportation Security Act of 2002 (46 U.S.C. 
        70116 note).
    (d) Other Reports.--Not later than 90 days after the date 
of the enactment of this Act--
            (1) the Secretary of Homeland Security shall submit 
        to the appropriate congressional committees--
                    (A) a report on the establishment of the 
                National Maritime Security Advisory Committee 
                under section 70112 of title 46, United States 
                Code; and
                    (B) a report on the status of the program 
                required by section 70116 of title 46, United 
                States Code, to evaluate and certify secure 
                systems of international intermodal 
                transportation;
            (2) the Secretary of Transportation shall submit to 
        the appropriate congressional committees the annual 
        report required by section 905 of the International 
        Maritime and Port Security Act (46 U.S.C. App. 1802) 
        that includes information that should have been 
        included in the last preceding annual report that was 
        due under that section; and
            (3) the Commandant of the United States Coast Guard 
        shall submit to the appropriate congressional 
        committees the report required by section 110(b) of the 
        Maritime Transportation Security Act of 2002 (46 U.S.C. 
        70101 note).

                     Subtitle E--General Provisions

SEC. 4081. DEFINITIONS.

    In this title (other than in sections 4001 and 4026), the 
following definitions apply:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the 
        Committee on Commerce, Science, and Transportation of 
        the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives.
            (2) Aviation definitions.--The terms ``air 
        carrier'', ``air transportation'', ``aircraft'', 
        ``airport'', ``cargo'', ``foreign air carrier'', and 
        ``intrastate air transportation'' have the meanings 
        given such terms in section 40102 of title 49, United 
        States Code.
            (3) Secure area of an airport.--The term ``secure 
        area of an airport'' means the sterile area and the 
        Secure Identification Display Area of an airport (as 
        such terms are defined in section 1540.5 of title 49, 
        Code of Federal Regulations, or any successor 
        regulations).

SEC. 4082. EFFECTIVE DATE.

    This title shall take effect on the date of enactment of 
this Act.

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

 Subtitle A--Advanced Technology Northern Border Security Pilot Program

SEC. 5101. ESTABLISHMENT.

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

SEC. 5102. PROGRAM REQUIREMENTS.

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

SEC. 5103. ADMINISTRATIVE PROVISIONS.

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

SEC. 5104. REPORT.

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

SEC. 5105. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated such sums as may be 
necessary to carry out the pilot program under this subtitle.

             Subtitle B--Border and Immigration Enforcement

SEC. 5201. BORDER SURVEILLANCE.

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

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

    In each of the fiscal years 2006 through 2010, the 
Secretary of Homeland Security shall, subject to the 
availability of appropriations for such purpose, increase by 
not less than 2,000 the number of positions for full-time 
active-duty border patrol agents within the Department of 
Homeland Security above the number of such positions for which 
funds were allotted for the preceding fiscal year. In each of 
the fiscal years 2006 through 2010, in addition to the border 
patrol agents assigned along the northern border of the United 
States during the previous fiscal year, the Secretary shall 
assign a number of border patrol agents equal to not less than 
20 percent of the net increase in border patrol agents during 
each such fiscal year.

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

    In each of fiscal years 2006 through 2010, the Secretary of 
Homeland Security shall, subject to the availability of 
appropriations for such purpose, increase by not less than 800 
the number of positions for full-time active duty investigators 
within the Department of Homeland Security investigating 
violations of immigration laws (as defined in section 
101(a)(17) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(17)) above the number of such positions for which funds 
were made available during the preceding fiscal year.

SEC. 5204. INCREASE IN DETENTION BED SPACE.

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

                     Subtitle C--Visa Requirements

SEC. 5301. IN PERSON INTERVIEWS OF VISA APPLICANTS.

    (a) Requirement for Interviews.--Section 222 of the 
Immigration and Nationality Act (8 U.S.C. 1202) is amended by 
adding at the end the following new subsection:
    ``(h) Notwithstanding any other provision of this Act, the 
Secretary of State shall require every alien applying for a 
nonimmigrant visa--
            ``(1) who is at least 14 years of age and not more 
        than 79 years of age to submit to an in person 
        interview with a consular officer unless the 
        requirement for such interview is waived--
                    ``(A) by a consular official and such alien 
                is--
                            ``(i) within that class of 
                        nonimmigrants enumerated in 
                        subparagraph (A) or (G) of section 
                        101(a)(15);
                            ``(ii) within the NATO visa 
                        category;
                            ``(iii) within that class of 
                        nonimmigrants enumerated in section 
                        101(a)(15)(C)(iii) (referred to as the 
                        `C-3 visa' category); or
                            ``(iv) granted a diplomatic or 
                        official visa on a diplomatic or 
                        official passport or on the equivalent 
                        thereof;
                    ``(B) by a consular official and such alien 
                is applying for a visa--
                            ``(i) not more than 12 months after 
                        the date on which such alien's prior 
                        visa expired;
                            ``(ii) for the visa classification 
                        for which such prior visa was issued;
                            ``(iii) from the consular post 
                        located in the country of such alien's 
                        usual residence, unless otherwise 
                        prescribed in regulations that require 
                        an applicant to apply for a visa in the 
                        country of which such applicant is a 
                        national; and
                            ``(iv) the consular officer has no 
                        indication that such alien has not 
                        complied with the immigration laws and 
                        regulations of the United States; or
                    ``(C) by the Secretary of State if the 
                Secretary determines that such waiver is--
                            ``(i) in the national interest of 
                        the United States; or
                            ``(ii) necessary as a result of 
                        unusual or emergent circumstances; and
            ``(2) notwithstanding paragraph (1), to submit to 
        an in person interview with a consular officer if such 
        alien--
                    ``(A) is not a national or resident of the 
                country in which such alien is applying for a 
                visa;
                    ``(B) was previously refused a visa, unless 
                such refusal was overcome or a waiver of 
                ineligibility has been obtained;
                    ``(C) is listed in the Consular Lookout and 
                Support System (or successor system at the 
                Department of State);
                    ``(D) is a national of a country officially 
                designated by the Secretary of State as a state 
                sponsor of terrorism, except such nationals who 
                possess nationalities of countries that are not 
                designated as state sponsors or terrorism;
                    ``(E) requires a security advisory opinion 
                or other Department of State clearance, unless 
                such alien is--
                            ``(i) within that class of 
                        nonimmigrants enumerated in 
                        subparagraph (A) or (G) of section 
                        101(a)(15);
                            ``(ii) within the NATO visa 
                        category;
                            ``(iii) within that class of 
                        nonimmigrants enumerated in section 
                        101(a)(15)(C)(iii) (referred to as the 
                        `C-3 visa' category); or
                            ``(iv) an alien who qualifies for a 
                        diplomatic or official visa, or its 
                        equivalent; or
                    ``(F) is identified as a member of a group 
                or sector that the Secretary of State 
                determines--
                            ``(i) poses a substantial risk of 
                        submitting inaccurate information in 
                        order to obtain a visa;
                            ``(ii) has historically had visa 
                        applications denied at a rate that is 
                        higher than the average rate of such 
                        denials; or
                            ``(iii) poses a security threat to 
                        the United States.''.

SEC. 5302. VISA APPLICATION REQUIREMENTS.

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

SEC. 5303. EFFECTIVE DATE.

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

SEC. 5304. REVOCATION OF VISAS AND OTHER TRAVEL DOCUMENTATION.

    (a) Limitation on Review.--Section 221(i) of the 
Immigration and Nationality Act (8 U.S.C. 1201(i)) is amended 
by adding at the end the following: ``There shall be no means 
of judicial review (including review pursuant to section 2241 
of title 28, United States Code, or any other habeas corpus 
provision, and sections 1361 and 1651 of such title) of a 
revocation under this subsection, except in the context of a 
removal proceeding if such revocation provides the sole ground 
for removal under section 237(a)(1)(B).''.
    (b) Classes of Deportable Aliens.--Section 237(a)(1)(B) of 
the Immigration and Nationality Act (8 U.S.C. 1227(a)(1)(B)) is 
amended by striking ``United States is'' and inserting the 
following: ``United States, or whose nonimmigrant visa (or 
other documentation authorizing admission into the United 
States as a nonimmigrant) has been revoked under section 
221(i), is''.
    (c) Revocation of Petitions.--Section 205 of the 
Immigration and Nationality Act (8 U.S.C. 1155) is amended--
            (1) by striking ``Attorney General'' and inserting 
        ``Secretary of Homeland Security''; and
            (2) by striking the final two sentences.
    (d) Effective Date.--The amendments made by this section 
shall take effect on the date of enactment of this Act and 
shall apply to revocations under sections 205 and 221(i) of the 
Immigration and Nationality Act (8 U.S.C. 1155, 1201(i)) made 
before, on, or after such date.

                     Subtitle D--Immigration Reform

SEC. 5401. BRINGING IN AND HARBORING CERTAIN ALIENS.

    (a) Criminal Penalties.--Section 274(a) of the Immigration 
and Nationality Act (8 U.S.C. 1324(a)) is amended by adding at 
the end the following:
    ``(4) In the case of a person who has brought aliens into 
the United States in violation of this subsection, the sentence 
otherwise provided for may be increased by up to 10 years if--
            ``(A) the offense was part of an ongoing commercial 
        organization or enterprise;
            ``(B) aliens were transported in groups of 10 or 
        more; and
            ``(C)(i) aliens were transported in a manner that 
        endangered their lives; or
            ``(ii) the aliens presented a life-threatening 
        health risk to people in the United States.''.
    (b) Outreach Program.--Section 274 of the Immigration and 
Nationality Act (8 U.S.C. 1324), as amended by subsection (a), 
is further amended by adding at the end the following:
    ``(e) Outreach Program.--The Secretary of Homeland 
Security, in consultation with the Attorney General and the 
Secretary of State, as appropriate, shall develop and implement 
an outreach program to educate the public in the United States 
and abroad about the penalties for bringing in and harboring 
aliens in violation of this section.''.

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

    Section 237(a)(4) of the Immigration and Nationality Act (8 
U.S.C. 1227(a)(4)) is amended by adding at the end the 
following:
                    ``(E) Recipient of military-type 
                training.--
                            ``(i) In general.--Any alien who 
                        has received military-type training 
                        from or on behalf of any organization 
                        that, at the time the training was 
                        received, was a terrorist organization 
                        (as defined in subclause (I) or (II) of 
                        section 212(a)(3)(B)(vi)), is 
                        deportable.
                            ``(ii) Definition.--As used in this 
                        subparagraph, the term `military-type 
                        training' includes training in means or 
                        methods that can cause death or serious 
                        bodily injury, destroy or damage 
                        property, or disrupt services to 
                        critical infrastructure, or training on 
                        the use, storage, production, or 
                        assembly of any explosive, firearm, or 
                        other weapon, including any weapon of 
                        mass destruction (as defined in section 
                        2332a(c)(2) of title 18, United States 
                        Code).''.

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

    (a) Study.--Commencing not later than 30 days after the 
date of the enactment of this Act, the Comptroller General of 
the United States shall conduct a study to evaluate the extent 
to which weaknesses in the United States asylum system and 
withholding of removal system have been or could be exploited 
by aliens connected to, charged in connection with, or tied to 
terrorist activity.
    (b) Elements.--The study under subsection (a) shall 
address, but not be limited to, the following:
            (1) The number of aliens connected to, tied to, 
        charged in connection with, or who claim to have been 
        accused of or charged in connection with terrorist 
        activity who have applied for, been granted, or been 
        denied asylum.
            (2) The number of aliens connected to, tied to, 
        charged in connection with, or who claim to have been 
        accused of or charged in connection with terrorist 
        activity who have applied for, been granted, or been 
        denied release from detention.
            (3) The number of aliens connected to, tied to, 
        charged in connection with, or who claim to have been 
        accused of or charged in connection with terrorist 
        activity who have been denied asylum but who remain at 
        large in the United States.
            (4) The effect of the confidentiality provisions of 
        section 208.6 of title 8, Code of Federal Regulations, 
        on the ability of the United States Government to 
        establish that an alien is connected to or tied to 
        terrorist activity, such that the alien is barred from 
        asylum or withholding of removal, is removable from the 
        United States, or both.
            (5) The effect that precedential decisions, if any, 
        holding that the extrajudicial punishment of an 
        individual connected to terrorism, or guerrilla or 
        militant activity abroad, or threats of such 
        punishment, constitute persecution on account of 
        political opinion as defined in section 101(a)(42) of 
        the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(42)), have had on the ability of the United 
        States Government to remove aliens whom the United 
        States Government believes are connected to or have 
        ties to terrorism,
            (6) The extent to which court precedents have 
        affected the ability of the United States Government to 
        determine or prove that an alien the United States 
        Government believes to be connected to or tied to 
        terrorism is in fact so connected or tied, including--
                    (A) so-called ``imputed political 
                opinion'';
                    (B) judicial review, reversal, or both of 
                the credibility determinations of immigration 
                judges; and
                    (C) the need to use classified information 
                in removal proceedings against aliens suspected 
                of connections or ties to terrorism.
            (7) The likelihood that an alien connected to or 
        with ties to terrorism has been granted asylum or 
        withholding of removal.
            (8) The likelihood that an alien connected to or 
        with ties to terrorism has used the United States 
        asylum system to enter or remain in the United States 
        in order to plan, conspire, or carry out, or attempt to 
        plan, conspire, or carry out, an act of terrorism.
    (c) Consideration and Assessment.--Solely for purposes of 
conducting the study under subsection (a), the Comptroller 
General shall consider the possibility, and assess the 
likelihood, that an alien whom the United States Government 
accuses or has accused of having a connection to or ties to 
terrorism is in fact connected to or tied to terrorism, 
notwithstanding any administrative or judicial determination to 
the contrary.
    (d) Scope.--In conducting the study under subsection (a), 
the Comptroller General shall seek information from the 
Department of Homeland Security, the Federal Bureau of 
Investigation, the Central Intelligence Agency, the Department 
of Justice, foreign governments, experts in the field of alien 
terrorists, and any other appropriate source.
    (e) Privacy.--
            (1) In general.--Notwithstanding section 208.6 of 
        title 8, Code of Federal Regulations, the Comptroller 
        General shall, for purposes of the study under 
        subsection (a), have access to the applications and 
        administrative and judicial records of alien applicants 
        for asylum and withholding of removal. Except for 
        purposes of preparing the reports under subsection (f), 
        such information shall not be further disclosed or 
        disseminated, nor shall the names or personal 
        identifying information of any applicant be released.
            (2) Security of records.--The Comptroller General 
        shall ensure that records received pursuant to this 
        section are appropriately secured to prevent their 
        inadvertent disclosure.
    (f) Report to Congress.--
            (1) In general.--Not later than 270 days after the 
        date of the enactment of this Act, the Comptroller 
        General shall submit to the appropriate committees of 
        Congress and the Secretary of Homeland Security a 
        report on the findings and recommendations of the 
        Comptroller General under the study under subsection 
        (a).
            (2) Elements.--The report under paragraph (1) shall 
        include the following:
                    (A) The assessment of the Comptroller 
                General on each matter specified in subsection 
                (b).
                    (B) Any recommendations of the Comptroller 
                General for such administrative action on any 
                matter specified in subsection (a) as the 
                Comptroller General considers necessary to 
                better protect the national security of the 
                United States.
                    (C) Any recommendations of the Comptroller 
                General for such legislative action on any 
                matter specified in subsection (a) as the 
                Comptroller General considers necessary to 
                better protect the national security of the 
                United States.
            (3) Form.--If necessary, the Comptroller General 
        may submit a classified and unclassified version of the 
        report under paragraph (1).
    (g) Appropriate Committees of Congress Defined.--In this 
section, the term ``appropriate committees of Congress'' 
means--
            (1) the Committee on Homeland Security and 
        Governmental Affairs, the Committee on the Judiciary, 
        and the Select Committee on Intelligence of the Senate; 
        and
            (2) the Committee on the Judiciary and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.

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

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

    (a) Inadmissibility.--Section 212(a)(3)(E) of the 
Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(E)) is 
amended--
            (1) in clause (ii), by striking ``has engaged in 
        conduct that is defined as genocide for purposes of the 
        International Convention on the Prevention and 
        Punishment of Genocide is inadmissible'' and inserting 
        ``ordered, incited, assisted, or otherwise participated 
        in conduct outside the United States that would, if 
        committed in the United States or by a United States 
        national, be genocide, as defined in section 1091(a) of 
        title 18, United States Code, is inadmissible'';
            (2) by adding at the end the following:
                            ``(iii) Commission of acts of 
                        torture or extrajudicial killings.--Any 
                        alien who, outside the United States, 
                        has committed, ordered, incited, 
                        assisted, or otherwise participated in 
                        the commission of--
                                    ``(I) any act of torture, 
                                as defined in section 2340 of 
                                title 18, United States Code; 
                                or
                                    ``(II) under color of law 
                                of any foreign nation, any 
                                extrajudicial killing, as 
                                defined in section 3(a) of the 
                                Torture Victim Protection Act 
                                of 1991 (28 U.S.C. 1350 note),
                        is inadmissible.''; and
            (3) in the subparagraph heading, by striking 
        ``Participants in nazi persecution or genocide'' and 
        inserting ``Participants in nazi persecution, genocide, 
        or the commission of any act of torture or 
        extrajudicial killing''.
    (b) Deportability.--Section 237(a)(4)(D) of such Act (8 
U.S.C. 1227(a)(4)(D)) is amended--
            (1) by striking ``clause (i) or (ii)'' and 
        inserting ``clause (i), (ii), or (iii)''; and
            (2) in the subparagraph heading, by striking 
        ``Assisted in nazi persecution or engaged in genocide'' 
        and inserting ``Participated in nazi persecution, 
        genocide, or the commission of any act of torture or 
        extrajudicial killing''.
    (c) Effective Date.--The amendments made by this section 
shall apply to offenses committed before, on, or after the date 
of enactment of this Act.

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

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

SEC. 5503. WAIVER OF INADMISSIBILITY.

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

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

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

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

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

SEC. 5506. REPORT ON IMPLEMENTATION.

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

                     TITLE VI--TERRORISM PREVENTION

     Subtitle A--Individual Terrorists as Agents of Foreign Powers

SEC. 6001. INDIVIDUAL TERRORISTS AS AGENTS OF FOREIGN POWERS.

    (a) In General.--Section 101(b)(1) of the Foreign 
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801(b)(1)) is 
amended by adding at the end the following new subparagraph:
                    ``(C) engages in international terrorism or 
                activities in preparation therefore; or''.
    (b) Sunset.--The amendment made by subsection (a) shall be 
subject to the sunset provision in section 224 of Public Law 
107-56 (115 Stat. 295), including the exception provided in 
subsection (b) of such section 224.

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

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

                   ``TITLE VI--REPORTING REQUIREMENT

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

    ``(a) Report.--On a semiannual basis, the Attorney General 
shall submit to the Permanent Select Committee on Intelligence 
of the House of Representatives, the Select Committee on 
Intelligence of the Senate, and the committees on the Judiciary 
of the House of Representatives and the Senate, in a manner 
consistent with the protection of the national security, a 
report setting forth with respect to the preceding 6-month 
period--
            ``(1) the aggregate number of persons targeted for 
        orders issued under this Act, including a breakdown of 
        those targeted for--
                    ``(A) electronic surveillance under section 
                105;
                    ``(B) physical searches under section 304;
                    ``(C) pen registers under section 402; and
                    ``(D) access to records under section 501;
            ``(2) the number of individuals covered by an order 
        issued pursuant to section 101(b)(1)(C);
            ``(3) the number of times that the Attorney General 
        has authorized that information obtained under this Act 
        may be used in a criminal proceeding or any information 
        derived therefrom may be used in a criminal proceeding;
            ``(4) a summary of significant legal 
        interpretations of this Act involving matters before 
        the Foreign Intelligence Surveillance Court or the 
        Foreign Intelligence Surveillance Court of Review, 
        including interpretations presented in applications or 
        pleadings filed with the Foreign Intelligence 
        Surveillance Court or the Foreign Intelligence 
        Surveillance Court of Review by the Department of 
        Justice; and
            ``(5) copies of all decisions (not including 
        orders) or opinions of the Foreign Intelligence 
        Surveillance Court or Foreign Intelligence Surveillance 
        Court of Review that include significant construction 
        or interpretation of the provisions of this Act.
    ``(b) Frequency.--The first report under this section shall 
be submitted not later than 6 months after the date of 
enactment of this section. Subsequent reports under this 
section shall be submitted semi-annually thereafter.''.
    (b) Clerical Amendment.--The table of contents for the 
Foreign Intelligence Act of 1978 (50 U.S.C. 1801 et seq.) is 
amended by striking the items relating to title VI and 
inserting the following new items:

                    ``TITLE VI--REPORTING REQUIREMENT

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

                       ``TITLE VII--EFFECTIVE DATE

``Sec. 701. Effective date.''.

          Subtitle B--Money Laundering and Terrorist Financing

SEC. 6101. ADDITIONAL AUTHORIZATION FOR FINCEN.

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

SEC. 6102. MONEY LAUNDERING AND FINANCIAL CRIMES STRATEGY 
                    REAUTHORIZATION.

    (a) Program.--Section 5341(a)(2) of title 31, United States 
Code, is amended--
            (1) by striking ``February 1'' and inserting 
        ``August 1''; and
            (2) by striking ``and 2003,'' and inserting ``2003, 
        2005, and 2007,''.
    (b) Reauthorization of Appropriations.--Section 5355 of 
title 31, United States Code, is amended by adding at the end 
the following:

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

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

SEC. 6201. SHORT TITLE.

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

SEC. 6202. TECHNICAL CORRECTIONS TO PUBLIC LAW 107-56.

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

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

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

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

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

SEC. 6203. TECHNICAL CORRECTIONS TO OTHER PROVISIONS OF LAW.

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

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

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

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

    (j) Section 18(w)(3) of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(w)(3)) is amended by inserting a comma after 
``agent of such institution''.
    (k) Section 21(a)(2) of the Federal Deposit Insurance Act 
(12 U.S.C. 1829b(a)(2)) is amended by striking ``recognizes 
that'' and inserting ``recognizing that''.
    (l) Section 626(e) of the Fair Credit Reporting Act (15 
U.S.C. 1681v(e)) is amended by striking ``governmental agency'' 
and inserting ``government agency''.

SEC. 6204. REPEAL OF REVIEW.

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

SEC. 6205. EFFECTIVE DATE.

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

                Subtitle D--Additional Enforcement Tools

SEC. 6301. BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING.

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

SEC. 6302. REPORTING OF CERTAIN CROSS-BORDER TRANSMITTAL OF FUNDS.

    Section 5318 of title 31, United States Code, is amended by 
adding at the end the following new subsection:
    ``(n) Reporting of Certain Cross-Border Transmittals of 
Funds.--
            ``(1) In general.--Subject to paragraphs (3) and 
        (4), the Secretary shall prescribe regulations 
        requiring such financial institutions as the Secretary 
        determines to be appropriate to report to the Financial 
        Crimes Enforcement Network certain cross-border 
        electronic transmittals of funds, if the Secretary 
        determines that reporting of such transmittals is 
        reasonably necessary to conduct the efforts of the 
        Secretary against money laundering and terrorist 
        financing.
            ``(2) Limitation on reporting requirements.--
        Information required to be reported by the regulations 
        prescribed under paragraph (1) shall not exceed the 
        information required to be retained by the reporting 
        financial institution pursuant to section 21 of the 
        Federal Deposit Insurance Act and the regulations 
        promulgated thereunder, unless--
                    ``(A) the Board of Governors of the Federal 
                Reserve System and the Secretary jointly 
                determine that a particular item or items of 
                information are not currently required to be 
                retained under such section or such 
                regulations; and
                    ``(B) the Secretary determines, after 
                consultation with the Board of Governors of the 
                Federal Reserve System, that the reporting of 
                such information is reasonably necessary to 
                conduct the efforts of the Secretary to 
                identify cross-border money laundering and 
                terrorist financing.
            ``(3) Form and manner of reports.--In prescribing 
        the regulations required under paragraph (1), the 
        Secretary shall, subject to paragraph (2), determine 
        the appropriate form, manner, content, and frequency of 
        filing of the required reports.
            ``(4) Feasibility report.--
                    ``(A) In general.--Before prescribing the 
                regulations required under paragraph (1), and 
                as soon as is practicable after the date of 
                enactment of the National Intelligence Reform 
                Act of 2004, the Secretary shall submit a 
                report to the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the 
                Committee on Financial Services of the House of 
                Representatives that--
                            ``(i) identifies the information in 
                        cross-border electronic transmittals of 
                        funds that may be found in particular 
                        cases to be reasonably necessary to 
                        conduct the efforts of the Secretary to 
                        identify money laundering and terrorist 
                        financing, and outlines the criteria to 
                        be used by the Secretary to select the 
                        situations in which reporting under 
                        this subsection may be required;
                            ``(ii) outlines the appropriate 
                        form, manner, content, and frequency of 
                        filing of the reports that may be 
                        required under such regulations;
                            ``(iii) identifies the technology 
                        necessary for the Financial Crimes 
                        Enforcement Network to receive, keep, 
                        exploit, protect the security of, and 
                        disseminate information from reports of 
                        cross-border electronic transmittals of 
                        funds to law enforcement and other 
                        entities engaged in efforts against 
                        money laundering and terrorist 
                        financing; and
                            ``(iv) discusses the information 
                        security protections required by the 
                        exercise of the Secretary's authority 
                        under this subsection.
                    ``(B) Consultation.--In reporting the 
                feasibility report under subparagraph (A), the 
                Secretary may consult with the Bank Secrecy Act 
                Advisory Group established by the Secretary, 
                and any other group considered by the Secretary 
                to be relevant.
            ``(5) Regulations.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the regulations required by paragraph (1) 
                shall be prescribed in final form by the 
                Secretary, in consultation with the Board of 
                Governors of the Federal Reserve System, before 
                the end of the 3-year period beginning on the 
                date of enactment of the National Intelligence 
                Reform Act of 2004.
                    ``(B) Technological feasibility.--No 
                regulations shall be prescribed under this 
                subsection before the Secretary certifies to 
                the Congress that the Financial Crimes 
                Enforcement Network has the technological 
                systems in place to effectively and efficiently 
                receive, keep, exploit, protect the security 
                of, and disseminate information from reports of 
                cross-border electronic transmittals of funds 
                to law enforcement and other entities engaged 
                in efforts against money laundering and 
                terrorist financing.''.

SEC. 6303. TERRORISM FINANCING.

    (a) Report on Terrorist Financing.--
            (1) In general.--Not later than 270 days after the 
        date of enactment of this Act, the President, acting 
        through the Secretary of the Treasury, shall submit to 
        Congress a report evaluating the current state of 
        United States efforts to curtail the international 
        financing of terrorism.
            (2) Contents.--The report required by paragraph (1) 
        shall evaluate and make recommendations on--
                    (A) the effectiveness and efficiency of 
                current United States governmental efforts and 
                methods to detect, track, disrupt, and stop 
                terrorist financing;
                    (B) the relationship between terrorist 
                financing and money laundering, including how 
                the laundering of proceeds related to illegal 
                narcotics or foreign political corruption may 
                contribute to terrorism or terrorist financing;
                    (C) the nature, effectiveness, and 
                efficiency of current efforts to coordinate 
                intelligence and agency operations within the 
                United States Government to detect, track, 
                disrupt, and stop terrorist financing, 
                including identifying who, if anyone, has 
                primary responsibility for developing 
                priorities, assigning tasks to agencies, and 
                monitoring the implementation of policy and 
                operations;
                    (D) the effectiveness and efficiency of 
                efforts to protect the critical infrastructure 
                of the United States financial system, and ways 
                to improve the effectiveness of financial 
                institutions;
                    (E) ways to improve multilateral and 
                international governmental cooperation on 
                terrorist financing, including the adequacy of 
                agency coordination within the United States 
                related to participating in international 
                cooperative efforts and implementing 
                international treaties and compacts; and
                    (F) ways to improve the setting of 
                priorities and coordination of United States 
                efforts to detect, track, disrupt, and stop 
                terrorist financing, including recommendations 
                for changes in executive branch organization or 
                procedures, legislative reforms, additional 
                resources, or use of appropriated funds.
    (b) Postemployment Restriction for Certain Bank and Thrift 
Examiners.--Section 10 of the Federal Deposit Insurance Act (12 
U.S.C. 1820) is amended by adding at the end the following:
    ``(k) One-Year Restrictions on Federal Examiners of 
Financial Institutions.--
            ``(1) In general.--In addition to other applicable 
        restrictions set forth in title 18, United States Code, 
        the penalties set forth in paragraph (6) of this 
        subsection shall apply to any person who--
                    ``(A) was an officer or employee (including 
                any special Government employee) of a Federal 
                banking agency or a Federal reserve bank;
                    ``(B) served 2 or more months during the 
                final 12 months of his or her employment with 
                such agency or entity as the senior examiner 
                (or a functionally equivalent position) of a 
                depository institution or depository 
                institution holding company with continuing, 
                broad responsibility for the examination (or 
                inspection) of that depository institution or 
                depository institution holding company on 
                behalf of the relevant agency or Federal 
                reserve bank; and
                    ``(C) within 1 year after the termination 
                date of his or her service or employment with 
                such agency or entity, knowingly accepts 
                compensation as an employee, officer, director, 
                or consultant from--
                            ``(i) such depository institution, 
                        any depository institution holding 
                        company that controls such depository 
                        institution, or any other company that 
                        controls such depository institution; 
                        or
                            ``(ii) such depository institution 
                        holding company or any depository 
                        institution that is controlled by such 
                        depository institution holding company.
            ``(2) Definitions.--For purposes of this 
        subsection--
                    ``(A) the term `depository institution' 
                includes an uninsured branch or agency of a 
                foreign bank, if such branch or agency is 
                located in any State; and
                    ``(B) the term `depository institution 
                holding company' includes any foreign bank or 
                company described in section 8(a) of the 
                International Banking Act of 1978.
            ``(3) Rules of construction.--For purposes of this 
        subsection, a foreign bank shall be deemed to control 
        any branch or agency of the foreign bank, and a person 
        shall be deemed to act as a consultant for a depository 
        institution, depository institution holding company, or 
        other company, only if such person directly works on 
        matters for, or on behalf of, such depository 
        institution, depository institution holding company, or 
        other company.
            ``(4) Regulations.--
                    ``(A) In general.--Each Federal banking 
                agency shall prescribe rules or regulations to 
                administer and carry out this subsection, 
                including rules, regulations, or guidelines to 
                define the scope of persons referred to in 
                paragraph (1)(B).
                    ``(B) Consultation required.--The Federal 
                banking agencies shall consult with each other 
                for the purpose of assuring that the rules and 
                regulations issued by the agencies under 
                subparagraph (A) are, to the extent possible, 
                consistent, comparable, and practicable, taking 
                into account any differences in the supervisory 
                programs utilized by the agencies for the 
                supervision of depository institutions and 
                depository institution holding companies.
            ``(5) Waiver.--
                    ``(A) Agency authority.--A Federal banking 
                agency may grant a waiver, on a case by case 
                basis, of the restriction imposed by this 
                subsection to any officer or employee 
                (including any special Government employee) of 
                that agency, and the Board of Governors of the 
                Federal Reserve System may grant a waiver of 
                the restriction imposed by this subsection to 
                any officer or employee of a Federal reserve 
                bank, if the head of such agency certifies in 
                writing that granting the waiver would not 
                affect the integrity of the supervisory program 
                of the relevant Federal banking agency.
                    ``(B) Definition.--For purposes of this 
                paragraph, the head of an agency is--
                            ``(i) the Comptroller of the 
                        Currency, in the case of the Office of 
                        the Comptroller of the Currency;
                            ``(ii) the Chairman of the Board of 
                        Governors of the Federal Reserve 
                        System, in the case of the Board of 
                        Governors of the Federal Reserve 
                        System;
                            ``(iii) the Chairperson of the 
                        Board of Directors, in the case of the 
                        Corporation; and
                            ``(iv) the Director of the Office 
                        of Thrift Supervision, in the case of 
                        the Office of Thrift Supervision.
            ``(6) Penalties.--
                    ``(A) In general.--In addition to any other 
                administrative, civil, or criminal remedy or 
                penalty that may otherwise apply, whenever a 
                Federal banking agency determines that a person 
                subject to paragraph (1) has become associated, 
                in the manner described in paragraph (1)(C), 
                with a depository institution, depository 
                institution holding company, or other company 
                for which such agency serves as the appropriate 
                Federal banking agency, the agency shall impose 
                upon such person one or more of the following 
                penalties:
                            ``(i) Industry-wide prohibition 
                        order.--The Federal banking agency 
                        shall serve a written notice or order 
                        in accordance with and subject to the 
                        provisions of section 8(e)(4) for 
                        written notices or orders under 
                        paragraph (1) or (2) of section 8(e), 
                        upon such person of the intention of 
                        the agency--
                                    ``(I) to remove such person 
                                from office or to prohibit such 
                                person from further 
                                participation in the conduct of 
                                the affairs of the depository 
                                institution, depository 
                                institution holding company, or 
                                other company for a period of 
                                up to 5 years; and
                                    ``(II) to prohibit any 
                                further participation by such 
                                person, in any manner, in the 
                                conduct of the affairs of any 
                                insured depository institution 
                                for a period of up to 5 years.
                            ``(ii) Civil monetary penalty.--The 
                        Federal banking agency may, in an 
                        administrative proceeding or civil 
                        action in anappropriate United States 
district court, impose on such person a civil monetary penalty of not 
more than $250,000. Any administrative proceeding under this clause 
shall be conducted in accordance with section 8(i). In lieu of an 
action by the Federal banking agency under this clause, the Attorney 
General of the United States may bring a civil action under this clause 
in the appropriate United States district court.
                    ``(B) Scope of prohibition order.--Any 
                person subject to an order issued under 
                subparagraph (A)(i) shall be subject to 
                paragraphs (6) and (7) of section 8(e) in the 
                same manner and to the same extent as a person 
                subject to an order issued under such section.
                    ``(C) Definitions.--Solely for purposes of 
                this paragraph, the `appropriate Federal 
                banking agency' for a company that is not a 
                depository institution or depository 
                institution holding company shall be the 
                Federal banking agency on whose behalf the 
                person described in paragraph (1) performed the 
                functions described in paragraph (1)(B).''.
    (c) Postemployment Restriction for Certain Credit Union 
Examiners.--Section 206 of the Federal Credit Union Act (12 
U.S.C. 1786) is amended by adding at the end the following:
    ``(w) One-Year Restrictions on Federal Examiners of Insured 
Credit Unions.--
            ``(1) In general.--In addition to other applicable 
        restrictions set forth in title 18, United States Code, 
        the penalties set forth in paragraph (5) of this 
        subsection shall apply to any person who--
                    ``(A) was an officer or employee (including 
                any special Government employee) of the 
                Administration;
                    ``(B) served 2 or more months during the 
                final 12 months of his or her employment with 
                the Administration as the senior examiner (or a 
                functionally equivalent position) of an insured 
                credit union with continuing, broad 
                responsibility for the examination (or 
                inspection) of that insured credit union on 
                behalf of the Administration; and
                    ``(C) within 1 year after the termination 
                date of his or her service or employment with 
                the Administration, knowingly accepts 
                compensation as an employee, officer, director, 
                or consultant from such insured credit union.
            ``(2) Rule of construction.--For purposes of this 
        subsection, a person shall be deemed to act as a 
        consultant for an insured credit union only if such 
        person directly works on matters for, or on behalf of, 
        such insured credit union.
            ``(3) Regulations.--
                    ``(A) In general.--The Board shall 
                prescribe rules or regulations to administer 
                and carry out this subsection, including rules, 
                regulations, or guidelines to define the scope 
                of persons referred to in paragraph (1)(B).
                    ``(B) Consultation.--In prescribing rules 
                or regulations under this paragraph, the Board 
                shall, to the extent it deems necessary, 
                consult with the Federal banking agencies (as 
                defined in section 3 of the Federal Deposit 
                Insurance Act) on regulations issued by such 
                agencies in carrying out section 10(k) of the 
                Federal Deposit Insurance Act.
            ``(4) Waiver.--The Board may grant a waiver, on a 
        case by case basis, of the restriction imposed by this 
        subsection to any officer or employee (including any 
        special Government employee) of the Administration if 
        the Chairman certifies in writing that granting the 
        waiver would not affect the integrity of the 
        supervisory program of the Administration.
            ``(5) Penalties.--
                    ``(A) In general.--In addition to any other 
                administrative, civil, or criminal remedy or 
                penalty that may otherwise apply, whenever the 
                Board determines that a person subject to 
                paragraph (1) has become associated, in the 
                manner described in paragraph (1)(C), with an 
                insured credit union, the Board shall impose 
                upon such person one or more of the following 
                penalties:
                            ``(i) Industry-wide prohibition 
                        order.--The Board shall serve a written 
                        notice or order in accordance with and 
                        subject to the provisions of subsection 
                        (g)(4) for written notices or orders 
                        under paragraph (1) or (2) of 
                        subsection (g), upon such person of the 
                        intention of the Board--
                                    ``(I) to remove such person 
                                from office or to prohibit such 
                                person from further 
                                participation in the conduct of 
                                the affairs of the insured 
                                credit union for a period of up 
                                to 5 years; and
                                    ``(II) to prohibit any 
                                further participation by such 
                                person, in any manner, in the 
                                conduct of the affairs of any 
                                insured credit union for a 
                                period of up to 5 years.
                            ``(ii) Civil monetary penalty.--The 
                        Board may, in an administrative 
                        proceeding or civil action in an 
                        appropriate United States district 
                        court, impose on such person a civil 
                        monetary penalty of not more than 
                        $250,000. Any administrative proceeding 
                        under this clause shall be conducted in 
                        accordance with subsection (k). In lieu 
                        of an action by the Board under this 
                        clause, the Attorney General of the 
                        United States may bring a civil action 
                        under this clause in the appropriate 
                        United States district court.
                    ``(B) Scope of prohibition order.--Any 
                person subject to an order issued under this 
                subparagraph (A)(i) shall be subject to 
                paragraphs (5) and (7) of subsection (g) in the 
                same manner and to the same extent as a person 
                subject to an order issued under subsection 
                (g).''.
    (d) Effective Date.--Notwithstanding any other effective 
date established pursuant to this Act, subsection (a) shall 
become effective on the date of enactment of this Act, and the 
amendments made by subsections (b) and (c) shall become 
effective at the end of the 12-month period beginning on the 
date of enactment of this Act, whether or not final regulations 
are issued in accordance with the amendments made by this 
section as of that date of enactment.

             Subtitle E--Criminal History Background Checks

SEC. 6401. PROTECT ACT.

    Public Law 108-21 is amended--
            (1) in section 108(a)(2)(A) by striking ``an 18 
        month'' and inserting ``a 30-month''; and
            (2) in section 108(a)(3)(A) by striking ``an 18-
        month'' and inserting ``a 30-month''.

SEC. 6402. REVIEWS OF CRIMINAL RECORDS OF APPLICANTS FOR PRIVATE 
                    SECURITY OFFICER EMPLOYMENT.

    (a) Short Title.--This section may be cited as the 
``Private Security Officer Employment Authorization Act of 
2004''.
    (b) Findings.--Congress finds that--
            (1) employment of private security officers in the 
        United States is growing rapidly;
            (2) private security officers function as an 
        adjunct to, but not a replacement for, public law 
        enforcement by helping to reduce and prevent crime;
            (3) such private security officers protect 
        individuals, property, and proprietary information, and 
        provide protection to such diverse operations as banks, 
        hospitals, research and development centers, 
        manufacturing facilities, defense and aerospace 
        contractors, high technology businesses, nuclear power 
        plants, chemical companies, oil and gas refineries, 
        airports, communication facilities and operations, 
        office complexes, schools, residential properties, 
        apartment complexes, gated communities, and others;
            (4) sworn law enforcement officers provide 
        significant services to the citizens of the United 
        States in its public areas, and are supplemented by 
        private security officers;
            (5) the threat of additional terrorist attacks 
        requires cooperation between public and private sectors 
        and demands professional, reliable, and responsible 
        security officers for the protection of people, 
        facilities, and institutions;
            (6) the trend in the Nation toward growth in such 
        security services has accelerated rapidly;
            (7) such growth makes available more public sector 
        law enforcement officers to combat serious and violent 
        crimes, including terrorism;
            (8) the American public deserves the employment of 
        qualified, well-trained private security personnel as 
        an adjunct to sworn law enforcement officers; and
            (9) private security officers and applicants for 
        private security officer positions should be thoroughly 
        screened and trained.
    (c) Definitions.--In this section:
            (1) Employee.--The term ``employee'' includes both 
        a current employee and an applicant for employment as a 
        private security officer.
            (2) Authorized employer.--The term ``authorized 
        employer'' means any person that--
                    (A) employs private security officers; and
                    (B) is authorized by regulations 
                promulgated by the Attorney General to request 
                a criminal history record information search of 
                an employee through a State identification 
                bureau pursuant to this section.
            (3) Private security officer.--The term ``private 
        security officer''--
                    (A) means an individual other than an 
                employee of a Federal, State, or local 
                government, whose primary duty is to perform 
                security services, full or part time, for 
                consideration, whether armed or unarmed and in 
                uniform or plain clothes (except for services 
                excluded from coverage under this Act if the 
                Attorney General determines by regulation that 
                such exclusion would serve the public 
                interest); but
                    (B) does not include--
                            (i) employees whose duties are 
                        primarily internal audit or credit 
                        functions;
                            (ii) employees of electronic 
                        security system companies acting as 
                        technicians or monitors; or
                            (iii) employees whose duties 
                        primarily involve the secure movement 
                        of prisoners.
            (4) Security services.--The term ``security 
        services'' means acts to protect people or property as 
        defined by regulations promulgated by the Attorney 
        General.
            (5) State identification bureau.--The term ``State 
        identification bureau'' means the State entity 
        designated by the Attorney General for the submission 
        and receipt of criminal history record information.
    (d) Criminal History Record Information Search.--
            (1) In general.--
                    (A) Submission of fingerprints.--An 
                authorized employer may submit to the State 
                identification bureau of a participating State, 
                fingerprints or other means of positive 
                identification, as determined by the Attorney 
                General, of an employee of such employer for 
                purposes of a criminal history record 
                information search pursuant to this Act.
                    (B) Employee rights.--
                            (i) Permission.--An authorized 
                        employer shall obtain written consent 
                        from an employee to submit to the State 
                        identification bureau of the 
                        participating State the request to 
                        search the criminal history record 
                        information of the employee under this 
                        Act.
                            (ii) Access.--An authorized 
                        employer shall provide to the employee 
                        confidential access to any information 
                        relating to the employee received by 
                        the authorized employer pursuant to 
                        this Act.
                    (C) Providing information to the state 
                identification bureau.--Upon receipt of a 
                request for a criminal history record 
                information search from an authorized employer 
                pursuant to this Act, submitted through the 
                State identification bureau of a participating 
                State, the Attorney General shall--
                            (i) search the appropriate records 
                        of the Criminal Justice Information 
                        Services Division of the Federal Bureau 
                        of Investigation; and
                            (ii) promptly provide any resulting 
                        identification and criminal history 
                        record information to the submitting 
                        State identification bureau requesting 
                        the information.
                    (D) Use of information.--
                            (i) In general.--Upon receipt of 
                        the criminal history record information 
                        from the Attorney General by the State 
                        identification bureau, the information 
                        shall be used only as provided in 
                        clause (ii).
                            (ii) Terms.--In the case of--
                                    (I) a participating State 
                                that has no State standards for 
                                qualification to be a private 
                                security officer, the State 
                                shall notify an authorized 
                                employer as to the fact of 
                                whether an employee has been--
                                            (aa) convicted of a 
                                        felony, an offense 
                                        involving dishonesty or 
                                        a false statement if 
                                        the conviction occurred 
                                        during the previous 10 
                                        years, or an offense 
                                        involving the use or 
                                        attempted use of 
                                        physical force against 
                                        the person of another 
                                        if the conviction 
                                        occurred during the 
                                        previous 10 years; or
                                            (bb) charged with a 
                                        criminal felony for 
                                        which there has been no 
                                        resolution during the 
                                        preceding 365 days; or
                                    (II) a participating State 
                                that has State standards for 
                                qualification to be a private 
                                security officer, the State 
                                shall use the information 
                                received pursuant to this Act 
                                in applying the State standards 
                                and shall only notify the 
                                employer of the results of the 
                                application of the State 
                                standards.
                    (E) Frequency of requests.--An authorized 
                employer may request a criminal history record 
                information search for an employee only once 
                every 12 months of continuous employment by 
                that employee unless the authorized employer 
                has good cause to submit additional requests.
            (2) Regulations.--Not later than 180 days after the 
        date of enactment of this Act, the Attorney General 
        shall issue such final or interim final regulations as 
        may be necessary to carry out this Act, including--
                    (A) measures relating to the security, 
                confidentiality, accuracy, use, submission, 
                dissemination, destruction of information and 
                audits, and record keeping;
                    (B) standards for qualification as an 
                authorized employer; and
                    (C) the imposition of reasonable fees 
                necessary for conducting the background checks.
            (3) Criminal penalties for use of information.--
        Whoever knowingly and intentionally uses any 
        information obtained pursuant to this Act other than 
        for the purpose of determining the suitability of an 
        individual for employment as a private security officer 
        shall be fined under title 18, United States Code, or 
        imprisoned for not more than 2 years, or both.
            (4) User fees.--
                    (A) In general.--The Director of the 
                Federal Bureau of Investigation may--
                            (i) collect fees to process 
                        background checks provided for by this 
                        Act; and
                            (ii) establish such fees at a level 
                        to include an additional amount to 
                        defray expenses for the automation of 
                        fingerprint identification and criminal 
                        justice information services and 
                        associated costs.
                    (B) Limitations.--Any fee collected under 
                this subsection--
                            (i) shall, consistent with Public 
                        Law 101-515 and Public Law 104-99, be 
                        credited to the appropriation to be 
                        used for salaries and other expenses 
                        incurred through providing the services 
                        described in such Public Laws and in 
                        subparagraph (A);
                            (ii) shall be available for 
                        expenditure only to pay the costs of 
                        such activities and services; and
                            (iii) shall remain available until 
                        expended.
                    (C) State costs.--Nothing in this Act shall 
                be construed as restricting the right of a 
                State to assess a reasonable fee on an 
                authorized employer for the costs to the State 
                of administering this Act.
            (5) State opt out.--A State may decline to 
        participate in the background check system authorized 
        by this Act by enacting a law or issuing an order by 
        the Governor (if consistent with State law) providing 
        that the State is declining to participate pursuant to 
        this subsection.

SEC. 6403. CRIMINAL HISTORY BACKGROUND CHECKS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Attorney General shall report to the 
Judiciary Committee of the Senate and the Judiciary Committee 
of the House of Representatives regarding all statutory 
requirements for criminal history record checks that are 
required to be conducted by the Department of Justice or any of 
its components.
    (b) Definitions.--As used in this section--
            (1) the terms ``criminal history information'' and 
        ``criminal history records'' include--
                    (A) an identifying description of the 
                individual to whom the information or records 
                pertain;
                    (B) notations of arrests, detentions, 
                indictments, or other formal criminal charges 
                pertaining to such individual; and
                    (C) any disposition to a notation described 
                in subparagraph (B), including acquittal, 
                sentencing, correctional supervision, or 
                release; and
            (2) the term ``IAFIS'' means the Integrated 
        Automated Fingerprint Identification System of the 
        Federal Bureau of Allocation, which serves as the 
        national depository for fingerprint, biometric, and 
        criminal history information, through which 
        fingerprints are processed electronically.
    (c) Identification of Information.--The Attorney General 
shall identify--
            (1) the number of criminal history record checks 
        requested, including the type of information requested;
            (2) the usage of different terms and definitions 
        regarding criminal history information; and
            (3) the variation in fees charged for such 
        information and who pays such fees.
    (d) Recommendations.--The Attorney General shall make 
recommendations to Congress for improving, standardizing, and 
consolidating the existing statutory authorization, programs, 
and procedures for the conduct of criminal history record 
checks for non-criminal justice purposes. In making these 
recommendations to Congress, the Attorney General shall 
consider--
            (1) the effectiveness and efficiency of utilizing 
        commercially available databases as a supplement to 
        IAFIS criminal history information checks;
            (2) any security concerns created by the existence 
        of these commercially available databases concerning 
        their ability to provide sensitive information that is 
        not readily available about law enforcement or 
        intelligence officials, including their identity, 
        residence, and financial status;
            (3) the effectiveness of utilizing State databases;
            (4) any feasibility studies by the Department of 
        Justice of the resources and structure of the Federal 
        Bureau of Investigation to establish a system to 
        provide criminal history information;
            (5) privacy rights and other employee protections, 
        including--
                    (A) employee consent;
                    (B) access to the records used if 
                employment was denied;
                    (C) the disposition of the fingerprint 
                submissions after the records are searched;
                    (D) an appeal mechanism; and
                    (E) penalties for misuse of the 
                information;
            (6) the scope and means of processing background 
        checks for private employers utilizing data maintained 
        by the Federal Bureau of Investigation that the 
        Attorney General should be allowed to authorize in 
        cases where the authority for such checks is not 
        available at the State level;
            (7) any restrictions that should be placed on the 
        ability of an employer to charge an employee or 
        prospective employee for the cost associated with the 
        background check;
            (8) which requirements should apply to the handling 
        of incomplete records;
            (9) the circumstances under which the criminal 
        history information should be disseminated to the 
        employer;
            (10) the type of restrictions that should be 
        prescribed for the handling of criminal history 
        information by an employer;
            (11) the range of Federal and State fees that might 
        apply to such background check requests;
            (12) any requirements that should be imposed 
        concerning the time for responding to such background 
        check requests;
            (13) any infrastructure that may need to be 
        developed to support the processing of such checks, 
        including--
                    (A) the means by which information is 
                collected and submitted in support of the 
                checks; and
                    (B) the system capacity needed to process 
                such checks at the Federal and State level;
            (14) the role that States should play; and
            (15) any other factors that the Attorney General 
        determines to be relevant to the subject of the report.
    (e) Consultation.--In developing the report under this 
section, the Attorney General shall consult with 
representatives of State criminal history record repositories, 
the National Crime Prevention and Privacy Compact Council, 
appropriate representatives of private industry, and 
representatives of labor, as determined appropriate by the 
Attorney General.

               Subtitle F--Grand Jury Information Sharing

SEC. 6501. GRAND JURY INFORMATION SHARING.

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

          Subtitle G--Providing Material Support to Terrorism

SEC. 6601. SHORT TITLE.

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

SEC. 6602. RECEIVING MILITARY-TYPE TRAINING FROM A FOREIGN TERRORIST 
                    ORGANIZATION.

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

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

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

SEC. 6603. ADDITIONS TO OFFENSE OF PROVIDING MATERIAL SUPPORT TO 
                    TERRORISM.

    (a) In General.--Chapter 113B of title 18, United States 
Code, is amended--
            (1) in section 2332b(g)(5)(B)(i)--
                    (A) by inserting ``1361 (relating to 
                government property or contracts),'' before 
                ``1362''; and
                    (B) by inserting ``2156 (relating to 
                national defense material, premises, or 
                utilities),'' before ``2280''; and
            (2) in section 2339A--
                    (A) by striking ``or'' before ``section 
                46502''; and
                    (B) by inserting ``or any offense listed in 
                section 2332b(g)(5)(B) (except for sections 
                2339A and 2339B)'' after ``section 60123(b) of 
                title 49,''.
    (b) Definitions.--Section 2339A(b) of title 18, United 
States Code, is amended to read as follows:
    ``(b) Definitions.--As used in this section--
            ``(1) the term `material support or resources' 
        means any property, tangible or intangible, or service, 
        including currency or monetary instruments or financial 
        securities, financial services, lodging, training, 
        expert advice or assistance, safehouses, false 
        documentation or identification, communications 
        equipment, facilities, weapons, lethal substances, 
        explosives, personnel (1 or more individuals who may be 
        or include oneself), and transportation, except 
        medicine or religious materials;
            ``(2) the term `training' means instruction or 
        teaching designed to impart a specific skill, as 
        opposed to general knowledge; and
            ``(3) the term `expert advice or assistance' means 
        advice or assistance derived from scientific, technical 
        or other specialized knowledge.''.
    (c) Addition to Offense of Providing Material Support to 
Terrorist Organizations.--Section 2339B(a)(1) of title 18, 
United States Code, is amended--
            (1) by striking ``, within the United States or 
        subject to the jurisdiction of the United States,''; 
        and
            (2) by adding at the end the following: ``To 
        violate this paragraph, a person must have knowledge 
        that the organization is a designated terrorist 
        organization (as defined in subsection (g)(6)), that 
        the organization has engaged or engages in terrorist 
        activity (as defined in section 212(a)(3)(B) of the 
        Immigration and Nationality Act), or that the 
        organization has engaged or engages in terrorism (as 
        defined in section 140(d)(2) of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989).''.
    (d) Federal Authority.--Section 2339B(d) of title 18 is 
amended by striking ``There'' and inserting the following:
            ``(1) In general.--There is jurisdiction over an 
        offense under subsection (a) if--
                    ``(A) an offender is a national of the 
                United States (as defined in section 101(a)(22) 
                of the Immigration and Nationality Act (8 
                U.S.C. 1101(a)(22))) or an alien lawfully 
                admitted for permanent residence in the United 
                States (as defined in section 101(a)(20) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(20)));
                    ``(B) an offender is a stateless person 
                whose habitual residence is in the United 
                States;
                    ``(C) after the conduct required for the 
                offense occurs an offender is brought into or 
                found in the United States, even if the conduct 
                required for the offense occurs outside the 
                United States;
                    ``(D) the offense occurs in whole or in 
                part within the United States;
                    ``(E) the offense occurs in or affects 
                interstate or foreign commerce; or
                    ``(F) an offender aids or abets any person 
                over whom jurisdiction exists under this 
                paragraph in committing an offense under 
                subsection (a) or conspires with any person 
                over whom jurisdiction exists under this 
                paragraph to commit an offense under subsection 
                (a).''.
            ``(2) Extraterritorial jurisdiction.--There''.
    (e) Definition.--Section 2339B(g)(4) of title 18, United 
States Code, is amended to read as follows:
            ``(4) the term `material support or resources' has 
        the same meaning given that term in section 2339A 
        (including the definitions of `training' and `expert 
        advice or assistance' in that section);''.
    (f) Additional Provisions.--Section 2339B of title 18, 
United States Code, is amended by adding at the end the 
following:
    ``(h) Provision of Personnel.--No person may be prosecuted 
under this section in connection with the term `personnel' 
unless that person has knowingly provided, attempted to 
provide, or conspired to provide a foreign terrorist 
organization with 1 or more individuals (who may be or include 
himself) to work under that terrorist organization's direction 
or control or to organize, manage, supervise, or otherwise 
direct the operation of that organization. Individuals who act 
entirely independently of the foreign terrorist organization to 
advance its goals or objectives shall not be considered to be 
working under the foreign terrorist organization's direction 
and control.
    ``(i) Rule of Construction.--Nothing in this section shall 
be construed or applied so as to abridge the exercise of rights 
guaranteed under the First Amendment to the Constitution of the 
United States.
    ``(j) Exception.--No person may be prosecuted under this 
section in connection with the term `personnel', `training', or 
`expert advice or assistance' if the provision of that material 
support or resources to a foreign terrorist organization was 
approved by the Secretary of State with the concurrence of the 
Attorney General. The Secretary of State may not approve the 
provision of any material support that may be used to carry out 
terrorist activity (as defined in section 212(a)(3)(B)(iii) of 
the Immigration and Nationality Act).''.
    (g) Sunset Provision.--
            (1) In general.--Except as provided in paragraph 
        (2), this section and the amendments made by this 
        section shall cease to be effective on December 31, 
        2006.
            (2) Exception.--This section and the amendments 
        made by this section shall continue in effect with 
        respect to any particular offense that--
                    (A) is prohibited by this section or 
                amendments made by this section; and
                    (B) began or occurred before December 31, 
                2006.

SEC. 6604. FINANCING OF TERRORISM.

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

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

SEC. 6701. SHORT TITLE.

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

SEC. 6702. HOAXES AND RECOVERY COSTS.

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

``Sec. 1038. False information and hoaxes

    ``(a) Criminal Violation.--
            ``(1) In general.--Whoever engages in any conduct 
        with intent to convey false or misleading information 
        under circumstances where such information may 
        reasonably be believed and where such information 
        indicates that an activity has taken, is taking, or 
        will take place that would constitute a violation of 
        chapter 2, 10, 11B, 39, 40, 44, 111, or 113B of this 
        title, section 236 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2284), or section 46502, the second sentence of 
        section 46504, section 46505 (b)(3) or (c), section 
        46506 if homicide or attempted homicide is involved, or 
        section 60123(b) of title 49, shall--
                    ``(A) be fined under this title or 
                imprisoned not more than 5 years, or both;
                    ``(B) if serious bodily injury results, be 
                fined under this title or imprisoned not more 
                than 20 years, or both; and
                    ``(C) if death results, be fined under this 
                title or imprisoned for any number of years up 
                to life, or both.
            ``(2) Armed forces.--Any person who makes a false 
        statement, with intent to convey false or misleading 
        information, about the death, injury, capture, or 
        disappearance of a member of the Armed Forces of the 
        United States during a war or armed conflict in which 
        the United States is engaged--
                    ``(A) shall be fined under this title, 
                imprisoned not more than 5 years, or both;
                    ``(B) if serious bodily injury results, 
                shall be fined under this title, imprisoned not 
                more than 20 years, or both; and
                    ``(C) if death results, shall be fined 
                under this title, imprisoned for any number of 
                years or for life, or both.
    ``(b) Civil Action.--Whoever engages in any conduct with 
intent to convey false or misleading information under 
circumstances where such information may reasonably be believed 
and where such information indicates that an activity has 
taken, is taking, or will take place that would constitute a 
violation of chapter 2, 10, 11B, 39, 40, 44, 111, or 113B of 
this title, section 236 of the Atomic Energy Act of 1954 (42 
U.S.C. 2284), or section 46502, the second sentence of section 
46504, section 46505 (b)(3) or (c), section 46506 if homicide 
or attempted homicide is involved, or section 60123(b) of title 
49 is liable in a civil action to any party incurring expenses 
incident to any emergency or investigative response to that 
conduct, for those expenses.
    ``(c) Reimbursement.--
            ``(1) In general.--The court, in imposing a 
        sentence on a defendant who has been convicted of an 
        offense under subsection (a), shall order the defendant 
        to reimburse any state or local government, or private 
        not-for-profit organization that provides fire or 
        rescue service incurring expenses incident to any 
        emergency or investigative response to that conduct, 
        for those expenses.
            ``(2) Liability.--A person ordered to make 
        reimbursement under this subsection shall be jointly 
        and severally liable for such expenses with each other 
        person, if any, who is ordered to make reimbursement 
        under this subsection for the same expenses.
            ``(3) Civil judgment.--An order of reimbursement 
        under this subsection shall, for the purposes of 
        enforcement, be treated as a civil judgment.
    ``(d) Activities of Law Enforcement.--This section does not 
prohibit any lawfully authorized investigative, protective, or 
intelligence activity of a law enforcement agency of the United 
States, a State, or political subdivision of a State, or of an 
intelligence agency of the United States.''.
    (b) Clerical Amendment.--The table of sections as the 
beginning of chapter 47 of title 18, United States Code, is 
amended by adding after the item for section 1037 the 
following:

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

SEC. 6703. OBSTRUCTION OF JUSTICE AND FALSE STATEMENTS IN TERRORISM 
                    CASES.

    (a) Enhanced Penalty.--Section 1001(a) and the third 
undesignated paragraph of section 1505 of title 18, United 
States Code, are amended by striking ``be fined under this 
title or imprisoned not more than 5 years, or both'' and 
inserting ``be fined under this title, imprisoned not more than 
5 years or, if the offense involves international or domestic 
terrorism (as defined in section 2331), imprisoned not more 
than 8 years, or both''.
    (b) Sentencing Guidelines.--Not later than 30 days of the 
enactment of this section, the United States Sentencing 
Commission shall amend the Sentencing Guidelines to provide for 
an increased offense level for an offense under sections 
1001(a) and 1505 of title 18, United States Code, if the 
offense involves international or domestic terrorism, as 
defined in section 2331 of such title.

SEC. 6704. CLARIFICATION OF DEFINITION.

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

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

SEC. 6801. SHORT TITLE.

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

SEC. 6802. WEAPONS OF MASS DESTRUCTION.

    (a) Expansion of Jurisdictional Bases and Scope.--Section 
2332a of title 18, United States Code, is amended--
            (1) so that paragraph (2) of subsection (a) reads 
        as follows:
            ``(2) against any person or property within the 
        United States, and
                    ``(A) the mail or any facility of 
                interstate or foreign commerce is used in 
                furtherance of the offense;
                    ``(B) such property is used in interstate 
                or foreign commerce or in an activity that 
                affects interstate or foreign commerce;
                    ``(C) any perpetrator travels in or causes 
                another to travel in interstate or foreign 
                commerce in furtherance of the offense; or
                    ``(D) the offense, or the results of the 
                offense, affect interstate or foreign commerce, 
                or, in the case of a threat, attempt, or 
                conspiracy, would have affected interstate or 
                foreign commerce;'';
            (2) in paragraph (3) of subsection (a), by striking 
        the comma at the end and inserting ``; or'';
            (3) in subsection (a), by adding the following at 
        the end:
            ``(4) against any property within the United States 
        that is owned, leased, or used by a foreign 
        government,'';
            (4) at the end of subsection (c)(1), by striking 
        ``and'';
            (5) in subsection (c)(2), by striking the period at 
        the end and inserting ``; and''; and
            (6) in subsection (c), by adding at the end the 
        following:
            ``(3) the term `property' includes all real and 
        personal property.''.
    (b) Restoration of the Coverage of Chemical Weapons.--
Section 2332a of title 18, United States Code, as amended by 
subsection (a), is further amended--
            (1) in the section heading, by striking 
        ``certain'';
            (2) in subsection (a), by striking ``(other than a 
        chemical weapon as that term is defined in section 
        229F)''; and
            (3) in subsection (b), by striking ``(other than a 
        chemical weapon (as that term is defined in section 
        229F))''.
    (c) Expansion of Categories of Restricted Persons Subject 
to Prohibitions Relating to Select Agents.--Section 175b(d)(2) 
of title 18, United States Code, is amended--
            (1) in subparagraph (G) by--
                    (A) inserting ``(i)'' after ``(G)'';
                    (B) inserting ``, or (ii) acts for or on 
                behalf of, or operates subject to the direction 
                or control of, a government or official of a 
                country described in this subparagraph'' after 
                ``terrorism''; and
                    (C) striking ``or'' after the semicolon.
            (2) in subparagraph (H) by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following new 
        subparagraph:
                    ``(I) is a member of, acts for or on behalf 
                of, or operates subject to the direction or 
                control of, a terrorist organization as defined 
                in section 212(a)(3)(B)(vi) of the Immigration 
                and Nationality Act (8 U.S.C. 
                1182(a)(3)(B)(vi)).''.
    (d) Conforming Amendment to Regulations.--
            (1) Section 175b(a)(1) of title 18, United States 
        Code, is amended by striking ``as a select agent in 
        Appendix A'' and all that follows and inserting the 
        following: ``as a non-overlap or overlap select 
        biological agent or toxin in sections 73.4 and 73.5 of 
        title 42, Code of Federal Regulations, pursuant to 
        section 351A of the Public Health Service Act, and is 
        not excluded under sections 73.4 and 73.5 or exempted 
        under section 73.6 of title 42, Code of Federal 
        Regulations.''.
            (2) The amendment made by paragraph (1) shall take 
        effect at the same time that sections 73.4, 73.5, and 
        73.6 of title 42, Code of Federal Regulations, become 
        effective.
    (e) Enhancing Prosecution of Weapons of Mass Destruction 
Offenses.--Section 1961(1)(B) of title 18, United States Code, 
is amended by adding at the end the following: ``sections 175-
178 (relating to biological weapons), sections 229-229F 
(relating to chemical weapons), section 831 (relating to 
nuclear materials),''.

SEC. 6803. PARTICIPATION IN NUCLEAR AND WEAPONS OF MASS DESTRUCTION 
                    THREATS TO THE UNITED STATES.

    (a) Section 57(b) of the Atomic Energy Act of 1954 (42 
U.S.C. 2077(b)) is amended by striking ``in the production of 
any special nuclear material'' and inserting ``or participate 
in the development or production of any special nuclear 
material''.
    (b) Section 92 of the Atomic Energy Act of 1954 (42 U.S.C. 
2122) is amended--
            (1) by inserting ``, inside or outside of the 
        United States,'' after ``for any person''; and
            (2) by inserting ``participate in the development 
        of,'' after ``interstate or foreign commerce,''.
    (c) Title 18, United States Code, is amended--
            (1) in the table of sections at the beginning of 
        chapter 39, by inserting after the item relating to 
        section 831 the following:

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

            (2) by inserting after section 831 the following:

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

    ``(a) Whoever, within the United States or subject to the 
jurisdiction of the United States, willfully participates in or 
knowingly provides material support or resources (as defined in 
section 2339A) to a nuclear weapons program or other weapons of 
mass destruction program of a foreign terrorist power, or 
attempts or conspires to do so, shall be imprisoned for not 
more than 20 years.
    ``(b) There is extraterritorial Federal jurisdiction over 
an offense under this section.
    ``(c) Whoever without lawful authority develops, possesses, 
or attempts or conspires to develop or possess a radiological 
weapon, or threatens to use or uses a radiological weapon 
against any person within the United States, or a national of 
the United States while such national is outside of the United 
States or against any property that is owned, leased, funded, 
or used by the United States, whether that property is within 
or outside of the United States, shall be imprisoned for any 
term of years or for life.
    ``(d) As used in this section--
            ``(1) `nuclear weapons program' means a program or 
        plan for the development, acquisition, or production of 
        any nuclear weapon or weapons;
            ``(2) `weapons of mass destruction program' means a 
        program or plan for the development, acquisition, or 
        production of any weapon or weapons of mass destruction 
        (as defined in section 2332a(c));
            ``(3) `foreign terrorist power' means a terrorist 
        organization designated under section 219 of the 
        Immigration and Nationality Act, or a state sponsor of 
        terrorism designated under section 6(j) of the Export 
        Administration Act of 1979 or section 620A of the 
        Foreign Assistance Act of 1961; and
            ``(4) `nuclear weapon' means any weapon that 
        contains or uses nuclear material as defined in section 
        831(f)(1).''; and
            (3) in section 2332b(g)(5)(B)(i), by inserting 
        after ``nuclear materials),'' the following: ``832 
        (relating to participation innuclear and weapons of 
mass destruction threats to the United States)''.

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

SEC. 6901. SHORT TITLE.

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

SEC. 6902. FINDINGS AND PURPOSE.

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

SEC. 6903. MISSILE SYSTEMS DESIGNED TO DESTROY AIRCRAFT.

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

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

    ``(a) Unlawful Conduct.--
            ``(1) In general.--Except as provided in paragraph 
        (3), it shall be unlawful for any person to knowingly 
        produce, construct, otherwise acquire, transfer 
        directly or indirectly, receive, possess, import, 
        export, or use, or possess and threaten to use--
                    ``(A) an explosive or incendiary rocket or 
                missile that is guided by any system designed 
                to enable the rocket or missile to--
                            ``(i) seek or proceed toward energy 
                        radiated or reflected from an aircraft 
                        or toward an image locating an 
                        aircraft; or
                            ``(ii) otherwise direct or guide 
                        the rocket or missile to an aircraft;
                    ``(B) any device designed or intended to 
                launch or guide a rocket or missile described 
                in subparagraph (A); or
                    ``(C) any part or combination of parts 
                designed or redesigned for use in assembling or 
                fabricating a rocket, missile, or device 
                described in subparagraph (A) or (B).
            ``(2) Nonweapon.--Paragraph (1)(A) does not apply 
        to any device that is neither designed nor redesigned 
        for use as a weapon.
            ``(3) Excluded conduct.--This subsection does not 
        apply with respect to--
                    ``(A) conduct by or under the authority of 
                the United States or any department or agency 
                thereof or of a State or any department or 
                agency thereof; or
                    ``(B) conduct pursuant to the terms of a 
                contract with the United States or any 
                department or agency thereof or with a State or 
                any department or agency thereof.
    ``(b) Jurisdiction.--Conduct prohibited by subsection (a) 
is within the jurisdiction of the United States if--
            ``(1) the offense occurs in or affects interstate 
        or foreign commerce;
            ``(2) the offense occurs outside of the United 
        States and is committed by a national of the United 
        States;
            ``(3) the offense is committed against a national 
        of the United States while the national is outside the 
        United States;
            ``(4) the offense is committed against any property 
        that is owned, leased, or used by the United States or 
        by any department or agency of the United States, 
        whether the property is within or outside the United 
        States; or
            ``(5) an offender aids or abets any person over 
        whom jurisdiction exists under this subsection in 
        committing an offense under this section or conspires 
        with any person over whom jurisdiction exists under 
        this subsection to commit an offense under this 
        section.
    ``(c) Criminal Penalties.--
            ``(1) In general.--Any person who violates, or 
        attempts or conspires to violate, subsection (a) shall 
        be fined not more than $2,000,000 and shall be 
        sentenced to a term of imprisonment not less than 25 
        years or to imprisonment for life.
            ``(2) Other circumstances.--Any person who, in the 
        course of a violation of subsection (a), uses, attempts 
        or conspires to use, or possesses and threatens to use, 
        any item or items described in subsection (a), shall be 
        fined not more than$2,000,000 and imprisoned for not 
less than 30 years or imprisoned for life.
            ``(3) Special circumstances.--If the death of 
        another results from a person's violation of subsection 
        (a), the person shall be fined not more than $2,000,000 
        and punished by imprisonment for life.
    ``(d) Definition.--As used in this section, the term 
`aircraft' has the definition set forth in section 40102(a)(6) 
of title 49, United States Code.''.

SEC. 6904. ATOMIC WEAPONS.

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

SEC. 6905. RADIOLOGICAL DISPERSAL DEVICES.

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

``Sec. 2332h. Radiological dispersal devices

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

SEC. 6906. VARIOLA VIRUS.

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

``Sec. 175c. Variola virus

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

SEC. 6907. INTERCEPTION OF COMMUNICATIONS.

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

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

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

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

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

SEC. 6910. EXPORT LICENSING PROCESS.

    Section 38(g)(1)(A) of the Arms Export Control Act (22 
U.S.C. 2778) is amended--
            (1) by striking ``or'' before ``(xi)''; and
            (2) by inserting after clause (xi) the following: 
        ``or (xii) section 3, 4, 5, and 6 of the Prevention of 
        Terrorist Access to Destructive Weapons Act of 2004, 
        relating to missile systems designed to destroy 
        aircraft (18 U.S.C. 2332g), prohibitions governing 
        atomic weapons (42 U.S.C. 2122), radiological dispersal 
        devices (18 U.S.C. 2332h), and variola virus (18 U.S.C. 
        175b);''.

SEC. 6911. CLERICAL AMENDMENTS.

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

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

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

``175c. Variola virus.''.

              Subtitle K--Pretrial Detention of Terrorists

SEC. 6951. SHORT TITLE.

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

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

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

      TITLE VII--IMPLEMENTATION OF 9/11 COMMISSION RECOMMENDATIONS

SEC. 7001. SHORT TITLE.

    This title may be cited as the ``9/11 Commission 
Implementation Act of 2004''.

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

SEC. 7101. FINDINGS.

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

SEC. 7102. TERRORIST SANCTUARIES.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) Complex terrorist operations require locations 
        that provide such operations sanctuary from 
        interference by Government or law enforcement 
        personnel.
            (2) A terrorist sanctuary existed in Afghanistan 
        before September 11, 2001.
            (3) The terrorist sanctuary in Afghanistan provided 
        direct and indirect value to members of al Qaeda who 
        participated in the terrorist attacks on the United 
        States on September 11, 2001, and in other terrorist 
        operations.
            (4) Terrorist organizations have fled to some of 
        the least governed and most lawless places in the world 
        to find sanctuary.
            (5) During the 21st century, terrorists are often 
        focusing on remote regions and failing states as 
        locations to seek sanctuary.
    (b) Sense of Congress on United States Policy on Terrorist 
Sanctuaries.--It is the sense of Congress that it should be the 
policy of the United States--
            (1) to identify foreign countries that are being 
        used as terrorist sanctuaries;
            (2) to assess current United States resources and 
        tools being used to assist foreign governments to 
        eliminate such sanctuaries;
            (3) to develop and implement a coordinated strategy 
        to prevent terrorists from using such foreign countries 
        as sanctuaries; and
            (4) to work in bilateral and multilateral fora to 
        elicit the cooperation needed to identify and address 
        terrorist sanctuaries that may exist today, but, so 
        far, remain unknown to governments.
    (c) Amendments to Existing Law To Include Terrorist 
Sanctuaries.--
            (1) In general.--Section 6(j) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405(j)) is 
        amended--
                    (A) by redesignating paragraph (5) as 
                paragraph (6); and
                    (B) by inserting after paragraph (4) the 
                following:
            ``(5)(A) As used in paragraph (1), the term 
        `repeatedly provided support for acts of international 
        terrorism' shall include the recurring use of any part 
        of the territory of the country as a sanctuary for 
        terrorists or terrorist organizations.
            ``(B) In this paragraph--
                    ``(i) the term `territory of a country' 
                means the land, waters, and airspace of the 
                country; and
                    ``(ii) the term `sanctuary' means an area 
                in the territory of a country--
                            ``(I) that is used by a terrorist 
                        or terrorist organization--
                                    ``(aa) to carry out 
                                terrorist activities, including 
                                training, financing, and 
                                recruitment; or
                                    ``(bb) as a transit point; 
                                and
                            ``(II) the government of which 
                        expressly consents to, or with 
                        knowledge, allows, tolerates, or 
                        disregards such use of its 
                        territory.''.
            (2) Rule of construction.--Nothing in this 
        subsection or the amendments made by this subsection 
        shall be construed as affecting any determination made 
        by the Secretary of State pursuant to section 6(j) of 
        the Export Administration Act of 1979 with respect to a 
        country prior to the date of enactment of this Act.
            (3) Implementation.--The President shall implement 
        the amendments made by paragraph (1) by exercising the 
        authorities of the President under the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
    (d) Amendments to Global Patterns of Terrorism Report.--
            (1) In general.--Section 140(a)(1) of the Foreign 
        Relations Authorization Act, Fiscal Years 1988 and 1989 
        (22 U.S.C. 2656f(a)(1)) is amended--
                    (A) by striking ``(1)'' and inserting 
                ``(1)(A)'';
                    (B) by redesignating subparagraphs (A) 
                through (C) as clauses (i) through (iii), 
                respectively;
                    (C) in subparagraph (A)(iii) (as 
                redesignated), by adding ``and'' at the end; 
                and
                    (D) by adding at the end the following:
                    ``(B) detailed assessments with respect to 
                each foreign country whose territory is being 
                used as a sanctuary for terrorists or terrorist 
                organizations;''.
            (2) Contents.--Section 140(b) of such Act (22 
        U.S.C. 2656f(b)) is amended--
                    (A) in paragraph (1)--
                            (i) in the matter preceding 
                        subparagraph (A), by striking 
                        ``subsection (a)(1)'' and inserting 
                        ``subsection (a)(1)(A)''; and
                            (ii) by striking ``and'' at the 
                        end;
                    (B) by redesignating paragraph (2) as 
                paragraph (3);
                    (C) by inserting after paragraph (1) the 
                following:
            ``(2) with respect to subsection (a)(1)(B)--
                    ``(A) the extent of knowledge by the 
                government of the country with respect to 
                terrorist activities in the territory of the 
                country; and
                    ``(B) the actions by the country--
                            ``(i) to eliminate each terrorist 
                        sanctuary in the territory of the 
                        country;
                            ``(ii) to cooperate with United 
                        States antiterrorism efforts; and
                            ``(iii) to prevent the 
                        proliferation of and trafficking in 
                        weapons of mass destruction in and 
                        through the territory of the 
                        country;'';
                    (D) in paragraph (3), as redesignated, by 
                striking the period at the end and inserting a 
                semicolon; and
                    (E) by inserting after paragraph (3) the 
                following:
            ``(4) a strategy for addressing, and where possible 
        eliminating, terrorist sanctuaries that shall include--
                    ``(A) a description of terrorist 
                sanctuaries, together with an assessment of the 
                priorities of addressing and eliminating such 
                sanctuaries;
                    ``(B) an outline of strategies for 
                disrupting or eliminating the security provided 
                to terrorists by such sanctuaries;
                    ``(C) a description of efforts by the 
                United States to work with other countries in 
                bilateral and multilateral fora to address or 
                eliminate terrorist sanctuaries and disrupt or 
                eliminate the security provided to terrorists 
                by such sanctuaries; and
                    ``(D) a description of long-term goals and 
                actions designed to reduce the conditions that 
                allow the formation of terrorist sanctuaries; 
                and
            ``(5) an update of the information contained in the 
        report required to be transmitted to Congress under 
        7119(b) of the

        9/11 Commission Implementation Act of 2004.''.
            (3) Definitions.--Section 140(d) of the Foreign 
        Relations Authorization Act, Fiscal Years 1988 and 1989 
        (22 U.S.C. 2656f(d)) is amended--
                    (A) in paragraph (2), by striking ``and'' 
                at the end;
                    (B) in paragraph (3), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following:
            ``(4) the terms `territory' and `territory of the 
        country' mean the land, waters, and airspace of the 
        country; and
            ``(5) the terms `terrorist sanctuary' and 
        `sanctuary' mean an area in the territory of the 
        country--
                    ``(A) that is used by a terrorist or 
                terrorist organization--
                            ``(i) to carry out terrorist 
                        activities, including training, 
                        fundraising, financing, and 
                        recruitment; or
                            ``(ii) as a transit point; and
                    ``(B) the government of which expressly 
                consents to, or with knowledge, allows, 
                tolerates, or disregards such use of its 
                territory and is not subject to a determination 
                under--
                            ``(i) section 6(j)(1)(A) of the 
                        Export Administration Act of 1979 (50 
                        U.S.C. App. 2405(j)(1)(A));
                            ``(ii) section 620A(a) of the 
                        Foreign Assistance Act of 1961 (22 
                        U.S.C. 2371(a)); or
                            ``(iii) section 40(d) of the Arms 
                        Export Control Act (22 U.S.C. 
                        2780(d)).''.
            (4) Effective date.--The amendments made by this 
        subsection apply with respect to the report required to 
        be transmitted under section 140 of the Foreign 
        Relations Authorization Act, Fiscal Years 1988 and 1989 
        (22 U.S.C. 2656f), by April 30, 2006, and by April 30 
        of each subsequent year.

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

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) The Government of Pakistan has a critical role 
        to perform in the struggle against terrorism.
            (2) Due to its location, topography, social 
        conditions, and other factors, Pakistan can be 
        attractive to extremists seeking refuge or 
        opportunities to recruit or train, or a place from 
        which to operate against Coalition Forces in 
        Afghanistan.
            (3) A stable Pakistan, with a moderate, responsible 
        government that serves as a voice of tolerance in the 
        Muslim world, is critical to stability in the region.
    (b) Sense of Congress.--It is the sense of Congress that 
the United States should--
            (1) help to ensure a promising, stable, and secure 
        future for Pakistan over the long term;
            (2) provide a comprehensive program of assistance 
        to encourage and enable Pakistan--
                    (A) to continue and improve upon its 
                commitment to combating extremists;
                    (B) to seek to resolve any outstanding 
                difficulties with its neighbors and other 
                countries in its region;
                    (C) to continue to make efforts to fully 
                control its territory and borders;
                    (D) to progress toward becoming a more 
                effective and participatory democracy;
                    (E) to participate more vigorously in the 
                global marketplace and to continue to modernize 
                its economy;
                    (F) to take all necessary steps to halt the 
                spread of weapons of mass destruction;
                    (G) to improve and expand access to 
                education for all citizens; and
                    (H) to increase the number and level of 
                exchanges between the Pakistani people and the 
                American people; and
            (3) continue to provide assistance to Pakistan at 
        not less than the overall levels requested by the 
        President for fiscal year 2005.
    (c) Extension of Pakistan Waivers.--The Act entitled ``An 
Act to authorize the President to exercise waivers of foreign 
assistance restrictions with respect to Pakistan through 
September 30, 2003, and for other purposes'', approved October 
27, 2001 (Public Law 107-57; 115 Stat. 403), as amended by 
section 2213 of the Emergency Supplemental Appropriations Act 
for Defense and for the Reconstruction of Iraq and Afghanistan, 
2004 (Public Law 108-106; 117 Stat. 1232), is further amended--
            (1) in section 1(b)--
                    (A) in the heading, by striking ``Fiscal 
                Year 2004'' and inserting ``Fiscal Years 2005 
                and 2006''; and
                    (B) in paragraph (1), by striking ``2004'' 
                and inserting ``2005 or 2006'';
            (2) in section 3(2), by striking ``and 2004,'' and 
        inserting ``2004, 2005, and 2006''; and
            (3) in section 6, by striking ``2004'' and 
        inserting ``2006''.

SEC. 7104. ASSISTANCE FOR AFGHANISTAN.

    (a) Short Title.--This section may be cited as the 
``Afghanistan Freedom Support Act Amendments of 2004''.
    (b) Coordination of assistance.--
            (1) Findings.--Consistent with the report of the 
        National Commission on Terrorist Attacks Upon the 
        United States, Congress makes the following findings:
                    (A) The United States and its allies in the 
                international community have made progress in 
                promoting economic and political reform within 
                Afghanistan, including the establishment of a 
                central government with a democratic 
                constitution, a new currency, and a new army, 
                the increase of personal freedom, and the 
                elevation of the standard of living of many 
                Afghans.
                    (B) A number of significant obstacles must 
                be overcome if Afghanistan is to become a 
                secure and prosperous democracy, and such a 
                transition depends in particular upon--
                            (i) improving security throughout 
                        the country;
                            (ii) disarming and demobilizing 
                        militias;
                            (iii) curtailing the rule of the 
                        warlords;
                            (iv) promoting equitable economic 
                        development;
                            (v) protecting the human rights of 
                        the people of Afghanistan;
                            (vi) continuing to hold elections 
                        for public officials; and
                            (vii) ending the cultivation, 
                        production, and trafficking of 
                        narcotics.
                    (C) The United States and the international 
                community must make a long-term commitment to 
                addressing the unstable security situation in 
                Afghanistan and the burgeoning narcotics trade, 
                endemic poverty, and other serious problems in 
                Afghanistan in order to prevent that country 
                from relapsing into a sanctuary for 
                international terrorism.
            (2) Sense of congress.--It is the sense of Congress 
        that the United States Government should take, with 
        respect to Afghanistan, the following actions:
                    (A) Work with other nations to obtain long-
                term security, political, and financial 
                commitments and fulfillment of pledges to the 
                Government of Afghanistan to accomplish the 
                objectives of the Afghanistan Freedom Support 
                Act of 2002 (22 U.S.C. 7501 et seq.), 
                especially to ensure a secure, democratic, and 
                prosperous Afghanistan that respects the rights 
                of its citizens and is free of international 
                terrorist organizations.
                    (B) Use the voice and vote of the United 
                States in relevant international organizations, 
                including the North Atlantic Treaty 
                Organization and the United Nations Security 
                Council, to strengthen international 
                commitments to assist the Government of 
                Afghanistan in enhancing security, building 
                national police and military forces, increasing 
                counter-narcotics efforts, and expanding 
                infrastructure and public services throughout 
                the country.
                    (C) Take appropriate steps to increase the 
                assistance provided under programs of the 
                Department of State and the United States 
                Agency for International Development throughout 
                Afghanistan and to increase the number of 
                personnel of those agencies in Afghanistan as 
                necessary to support the increased assistance.
    (c) Coordinator for Assistance.--
            (1) Findings.--Congress makes the following 
        findings:
                    (A) The Final Report of the National 
                Commission on Terrorist Attacks Upon the United 
                States criticized the provision of United 
                States assistance to Afghanistan for being too 
                inflexible.
                    (B) The Afghanistan Freedom Support Act of 
                2002 (22 U.S.C. 7501 et seq.) contains 
                provisions that provide for flexibility in the 
                provision of assistance for Afghanistan and are 
                not subject to the requirements of typical 
                foreign assistance programs and provide for the 
                designation of a coordinator to oversee United 
                States assistance for Afghanistan.
            (2) Designation of coordinator.--Section 104(a) of 
        the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
        7514(a)) is amended in the matter preceding paragraph 
        (1) by striking ``is strongly urged to'' and inserting 
        ``shall''.
    (d) Assistance Plan; International Coordination.--Section 
104 of the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
7514) is amended by adding at the end the following:
    ``(c) Assistance Plan.--
            ``(1) Submission to congress.--The coordinator 
        designated under subsection (a) shall annually submit 
        the Afghanistan assistance plan of the Administration 
        to--
                    ``(A) the Committee on Foreign Relations of 
                the Senate;
                    ``(B) the Committee on International 
                Relations of the House of Representatives;
                    ``(C) the Committee on Appropriations of 
                the Senate; and
                    ``(D) the Committee on Appropriations of 
                the House of Representatives.
            ``(2) Contents.--The assistance plan submitted 
        under paragraph (1) shall describe--
                    ``(A) how the plan relates to the strategy 
                provided pursuant to section 304; and
                    ``(B) how the plan builds upon United 
                States assistance provided to Afghanistan since 
                2001.
    ``(d) Coordination With International Community.--
            ``(1) In general.--The coordinator designated under 
        subsection (a) shall work with the international 
        community and the Government of Afghanistan to ensure 
        that assistance to Afghanistan is implemented in a 
        coherent, consistent, and efficient manner to prevent 
        duplication and waste.
            ``(2) International financial institutions.--The 
        coordinator designated under subsection (a), under the 
        direction of the Secretary of State, shall work through 
        the Secretary of the Treasury and the United States 
        Executive Directors at the international financial 
        institutions (as defined in section 1701(c)(2) of the 
        International Financial Institutions Act (22 U.S.C. 
        262r(c)(2))) to coordinate United States assistance for 
        Afghanistan with international financial institutions.
    (e) General Provisions Relating to the Afghanistan Freedom 
Support Act of 2002.--
            (1) Assistance to promote economic, political and 
        social development.--
                    (A) Declaration of policy.--Congress 
                reaffirms the authorities contained in title I 
                of the Afghanistan Freedom Support Act of 2002 
                (22 U.S.C. 7501 et seq.), relating to economic 
                and democratic development assistance for 
                Afghanistan.
                    (B) Provision of assistance.--Section 
                103(a) of such Act (22 U.S.C. 7513(a)) is 
                amended in the matter preceding paragraph (1) 
                by striking ``section 512 of Public Law 107-115 
                or any other similar'' and inserting ``any 
                other''.
            (2) Declarations of general policy.--Congress makes 
        the following declarations:
                    (A) The United States reaffirms the support 
                that it and other countries expressed for the 
                report entitled ``Securing Afghanistan's 
                Future'' in their Berlin Declaration of April 
                2004. The United States should help enable the 
                growth needed to create an economically 
                sustainable Afghanistan capable of the poverty 
                reduction and social development foreseen in 
                the report.
                    (B) The United States supports the 
                parliamentary elections to be held in 
                Afghanistan by April 2005 and will help ensure 
                that such elections are not undermined, 
                including by warlords or narcotics traffickers.
                    (C) The United States continues to urge 
                North Atlantic Treaty Organization members and 
                other friendly countries to make much greater 
                military contributions toward securing the 
                peace in Afghanistan.
            (3) Form of reports.--Section 304 of the 
        Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
        7554) is amended--
                    (A) by striking ``The Secretary'' and 
                inserting the following:
    ``(a) In General.--The Secretary'';
                    (B) by striking ``The first report'' and 
                inserting the following:
    ``(b) Deadline For Submission.--The first report''; and
                    (C) by adding at the end the following:
    ``(c) Form of Reports.--Any report or other matter that is 
required to be submitted to Congress (including a committee of 
Congress) by this Act may contain a classified annex.''.
            (4) Long-term strategy.--
                    (A) Strategy.--Title III of the Afghanistan 
                Freedom Support Act of 2002 (22 U.S.C. 7551 et 
                seq.) is amended by adding at the end the 
                following:

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

    ``(a) Strategy.--
            ``(1) In general.--Not later than 180 days after 
        the date of enactment of this section, the President 
        shall formulate a 5-year strategy for Afghanistan and 
        submit such strategy to--
                    ``(A) the Committee on Foreign Relations of 
                the Senate;
                    ``(B) the Committee on International 
                Relations of the House of Representatives;
                    ``(C) the Committee on Appropriations of 
                the Senate; and
                    ``(D) the Committee on Appropriations of 
                the House of Representatives.
            ``(2) Contents.--The strategy formulated under 
        paragraph (1) shall include specific and measurable 
        goals for addressing the long-term development and 
        security needs of Afghanistan, including sectors such 
        as agriculture and irrigation, parliamentary and 
        democratic development, the judicial system and rule of 
        law, human rights, education, health, 
        telecommunications, electricity, women's rights, 
        counternarcotics, police, border security, anti-
        corruption, and other law-enforcement activities, as 
        well as the anticipated costs and time frames 
        associated with achieving those goals.
    ``(b) Monitoring.--
            ``(1) Annual report.--The President shall transmit 
        on an annual basis through 2010 a report describing the 
        progress made toward the implementation of the strategy 
        required by subsection (a) and any changes to the 
        strategy since the date of the submission of the last 
        report to--
                    ``(A) the Committee on Foreign Relations of 
                the Senate;
                    ``(B) the Committee on International 
                Relations of the House of Representatives;
                    ``(C) the Committee on Appropriations of 
                the Senate; and
                    ``(D) the Committee on Appropriations of 
                the House of Representatives.''.
                    (B) Clerical amendment.--The table of 
                contents for such Act (22 U.S.C. 7501 note) is 
                amended by adding after the item relating to 
                section 303 the following new item:

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

    (f) Education, the Rule of Law, and Related Issues.--
            (1) Declaration of policy.--Congress declares that, 
        although Afghanistan has adopted a new constitution and 
        made progress on primary education, the United States 
        must invest in a concerted effort in Afghanistan to 
        improve the rule of law, good governance, and effective 
        policing, to accelerate work on secondary and 
        university education systems, and to establish new 
        initiatives to increase the capacity of civil society.
            (2) Amendment.--Section 103(a)(5) of the 
        Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
        7513(a)(5)) is amended to read as follows:
            ``(5) Education, the rule of law, and related 
        issues.--
                    ``(A) Education.--To assist in the 
                development of the capacity of the Government 
                of Afghanistan to provide education to the 
                people of Afghanistan, including assistance 
                such as--
                            ``(i) support for an educated 
                        citizenry through improved access to 
                        basic education, with particular 
                        emphasis on basic education for 
                        children, especially orphans;
                            ``(ii) programs to enable the 
                        Government of Afghanistan to recruit 
                        and train teachers, with special focus 
                        on the recruitment and training of 
                        female teachers;
                            ``(iii) programs to enable the 
                        Government of Afghanistan to develop 
                        school curricula that incorporate 
                        relevant information such as landmine 
                        awareness, food security and 
                        agricultural education, civic 
                        education, and human rights education, 
                        including education relating to 
                        religious freedom;
                            ``(iv) programs to construct, 
                        renovate, or rebuild, and to equip and 
                        provide teacher training, for primary 
                        schools, secondary schools, and 
                        universities; and
                            ``(v) programs to increase 
                        educational exchanges and partnerships 
                        between the United States and 
                        Afghanistan.
                    ``(B) Rule of law.--To assist in the 
                development of the rule of law and good 
                governance and reduced corruption in 
                Afghanistan, including assistance such as--
                            ``(i) support for the activities of 
                        the Government of Afghanistan to 
                        implement its constitution, to develop 
                        modern legal codes and court rules, to 
                        provide for the creation of legal 
                        assistance programs, and other 
                        initiatives to promote the rule of law 
                        in Afghanistan;
                            ``(ii) support for improvements in 
                        the capacity and physical 
                        infrastructure of the justice system in 
                        Afghanistan, such as for professional 
                        training (including for women) to 
                        improve the administration of justice, 
                        for programs to enhance prosecutorial 
                        and judicial capabilities and to 
                        protect participants in judicial cases, 
                        for improvements in the instruction of 
                        law enforcement personnel (including 
                        human rights training), and for the 
                        promotion of civilian police roles that 
                        support democracy;
                            ``(iii) support for rehabilitation 
                        and rebuilding of courthouses and 
                        detention facilities;
                            ``(iv) support for the effective 
                        administration of justice at the 
                        national, regional, and local levels, 
                        including programs to improve penal 
                        institutions and the rehabilitation of 
                        prisoners, and to establish a 
                        responsible and community-based police 
                        force;
                            ``(v) support to increase the 
                        transparency, accountability, and 
                        participatory nature of governmental 
                        institutions, including programs 
                        designed to combat corruption and other 
                        programs for the promotion of good 
                        governance, such as the development of 
                        regulations relating to financial 
                        disclosure for public officials, 
                        political parties, and candidates for 
                        public office, and transparent 
                        budgeting processes and financial 
                        management systems;
                            ``(vi) support for establishment of 
                        a central bank and central budgeting 
                        authority;
                            ``(vii) support for international 
                        organizations that provide civil 
                        advisers to the Government of 
                        Afghanistan; and
                            ``(viii) support for Afghan and 
                        international efforts to investigate 
                        human rights atrocities committed in 
                        Afghanistan by the Taliban regime, 
                        opponents of such regime, and terrorist 
                        groups operating in Afghanistan, 
                        including the collection of forensic 
                        evidence relating to such atrocities.
                    ``(C) Civil society and democracy.--To 
                support the development of democratic 
                institutions in Afghanistan, including 
                assistance for--
                            ``(i) international monitoring and 
                        observing of, and the promotion of, 
                        free and fair elections;
                            ``(ii) strengthening democratic 
                        political parties;
                            ``(iii) international exchanges and 
                        professional training for members or 
                        officials of government, political, and 
                        civic or other nongovernmental 
                        entities;
                            ``(iv) national, regional, and 
                        local elections and political party 
                        development;
                            ``(v) an independent media;
                            ``(vi) programs that support the 
                        expanded participation of women and 
                        members of all ethnic groups in 
                        government at national, regional, and 
                        local levels; and
                            ``(vii) programs to strengthen 
                        civil society organizations that 
                        promote human rights, including 
                        religious freedom, freedom of 
                        expression, and freedom of association, 
                        and support human rights monitoring.
                    ``(D) Protection of sites.--To provide for 
                the protection of Afghanistan's culture, 
                history, and national identity, including the 
                rehabilitation of Afghanistan's museums and 
                sites of cultural significance.''.
            (3) Conforming amendment.--Section 103(a)(4) of the 
        Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
        7513(a)(4)) is amended--
                    (A) in subparagraph (K), by striking 
                ``and'' at the end;
                    (B) in subparagraph (L), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(M) assistance in identifying and 
                surveying key road and rail routes that are 
                essential for economic renewal in Afghanistan 
                and the region and support for the 
                establishment of a customs service and training 
                for customs officers.''.
    (g) Monitoring of Assistance for Afghanistan.--Section 103 
of the Afghanistan Freedom Support Act of 2002 (22 U.S.C. 
7513), is amended by adding at the end the following:
    ``(d) Monitoring of Assistance for Afghanistan.--
            ``(1) Report.--
                    ``(A) In general.--The Secretary of State, 
                in consultation with the Administrator for the 
                United States Agency for International 
                Development, shall submit to the Committee on 
                Foreign Relations of the Senate and the 
                Committee on International Relations of the 
                House of Representatives a report on the 
                obligations of United States assistance for 
                Afghanistan from all United States Government 
                departments and agencies.
                    ``(B) Contents.--Each such report shall set 
                forth, for the preceding annual period and 
                cumulatively, a description of--
                            ``(i) the activities and the 
                        purposes for which funds were 
                        obligated;
                            ``(ii) the source of the funds 
                        stated specifically by fiscal year, 
                        agency, and program;
                            ``(iii) the participation of each 
                        United States Government department or 
                        agency; and
                            ``(iv) such other information as 
                        the Secretary considers appropriate to 
                        fully inform Congress on such matters.
                    ``(C) Additional requirements.--The first 
                report submitted under this paragraph shall 
                include a cumulative account of information 
                described in subparagraph (B) from all prior 
                periods beginning with fiscal year 2001. The 
                first report under this paragraph shall be 
                submitted not later than March 15, 2005. 
                Subsequent reports shall be submitted every 12 
                months thereafter and may be included in the 
                report required under section 206(c)(2).
            ``(2) Submission of information for report.--The 
        head of each United States Government agency referred 
        to in paragraph (1) shall provide on a timely basis to 
        the Secretary of State such information as the 
        Secretary may reasonably require to allow the Secretary 
        to prepare and submit the report required under 
        paragraph (1).''.
    (h) United States Policy To Support Disarmament of Private 
Militias and Expansion of International Peacekeeping and 
Security Operations in Afghanistan.--
            (1) United states policy relating to disarmament of 
        private militias.--
                    (A) In general.--It shall be the policy of 
                the United States to take immediate steps to 
                provide active support for the disarmament, 
                demobilization, and reintegration of armed 
                soldiers, particularly child soldiers, in 
                Afghanistan, in close consultation with the 
                President of Afghanistan.
                    (B) Report.--The report required under 
                section 206(c)(2) of the Afghanistan Freedom 
                Support Act of 2002(22 U.S.C. 7536(c)(2)) shall 
include a description of the progress to implement paragraph (1).
            (2) International peacekeeping and security 
        operations.--Section 206 of such Act (22 U.S.C. 7536) 
        is amended by adding at the end the following:
    ``(e) United States Policy Relating To International 
Peacekeeping and Security Operations.--It shall be the policy 
of the United States to make every effort to support the 
expansion of international peacekeeping and security operations 
in Afghanistan in order to--
            ``(1) increase the area in which security is 
        provided and undertake vital tasks related to promoting 
        security, such as disarming warlords, militias, and 
        irregulars, and disrupting opium production; and
            ``(2) safeguard highways in order to allow the free 
        flow of commerce and to allow material assistance to 
        the people of Afghanistan, and aid personnel in 
        Afghanistan, to move more freely.''.
    (i) Efforts To Expand International Peacekeeping and 
Security Operations in Afghanistan.--Section 206(d)(1) of the 
Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7536(d)(1)) 
is amended to read as follows:
            ``(1) Efforts to expand international peacekeeping 
        and security operations in afghanistan.--
                    ``(A) Efforts.--The President shall 
                encourage, and, as authorized by law, enable 
                other countries to actively participate in 
                expanded international peacekeeping and 
                security operations in Afghanistan, especially 
                through the provision of military personnel for 
                extended periods of time.
                    ``(B) Reports.--The President shall prepare 
                and transmit a report on the efforts carried 
                out pursuant to subparagraph (A) to the 
                Committee on Foreign Relations of the Senate 
                and the Committee on International Relations of 
                the House of Representatives. The first report 
                under this subparagraph shall be transmitted 
                not later than 60 days after the date of the 
                enactment of the Afghanistan Freedom Support 
                Act Amendments of 2004 and subsequent reports 
                shall be transmitted every 6 months thereafter 
                and may be included in the report required by 
                subsection (c)(2).''.
    (j) Provisions Relating to Counternarcotics Efforts in 
Afghanistan.--
            (1) Authorization of assistance.--Section 
        103(a)(3)(A) of the Afghanistan Freedom Support Act of 
        2002 (22 U.S.C. 7513(a)(3)(A)) is amended--
                    (A) in clause (i), by striking ``establish 
                crop substitution programs,'' and inserting 
                ``promote alternatives to poppy cultivation, 
                including the introduction of high value crops 
                that are suitable for export and the provision 
                of appropriate technical assistance and credit 
                mechanisms for farmers,'';
                    (B) in clause (ii), by inserting before the 
                semicolon at the end the following: ``, and to 
                create special counternarcotics courts, 
                prosecutors, and places of incarceration'';
                    (C) in clause (iii), by inserting before 
                the semicolon at the end the following: ``, in 
                particular, notwithstanding section 660 of the 
                Foreign Assistance Act of 1961 (22 U.S.C. 
                2420), by providing non-lethal equipment, 
                training (including training in internationally 
                recognized standards of human rights, the rule 
                of law, anti-corruption, and the promotion of 
                civilian police roles that support democracy), 
                and payments, during fiscal years 2005 through 
                2008, for salaries for special counternarcotics 
                police and supporting units'';
                    (D) in clause (iv), by striking ``and'' at 
                the end;
                    (E) in clause (v), by striking the period 
                at the end and inserting ``; and''; and
                    (F) by adding after clause (v) the 
                following:
                            ``(vi) assist the Afghan National 
                        Army with respect to any of the 
                        activities under this paragraph.''.
            (2) Sense of congress and report.--Title II of the 
        Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7531 
        et seq.) is amended--
                    (A) by redesignating sections 207 and 208 
                as sections 208 and 209, respectively; and
                    (B) by inserting after section 206 the 
                following:

``SEC. 207. SENSE OF CONGRESS AND REPORT REGARDING COUNTER-DRUG EFFORTS 
                    IN AFGHANISTAN.

    ``(a) Sense of Congress.--It is the sense of Congress 
that--
            ``(1) the President should make the substantial 
        reduction of illegal drug production and trafficking in 
        Afghanistan a priority in the Global War on Terrorism;
            ``(2) the Secretary of Defense, in coordination 
        with the Secretary of State and the heads of other 
        appropriate Federal agencies, should expand cooperation 
        with the Government of Afghanistan and international 
        organizations involved in counter-drug activities to 
        assist in providing a secure environment for counter-
        drug personnel in Afghanistan; and
            ``(3) the United States, in conjunction with the 
        Government of Afghanistan and coalition partners, 
        should undertake additional efforts to reduce illegal 
        drug trafficking and related activities that provide 
        financial support for terrorist organizations in 
        Afghanistan and neighboring countries.
    ``(b) Report Required.--(1) The Secretary of Defense and 
the Secretary of State shall jointly prepare a report that 
describes--
            ``(A) the progress made toward substantially 
        reducing poppy cultivation and heroin production 
        capabilities in Afghanistan; and
            ``(B) the extent to which profits from illegal drug 
        activity in Afghanistan are used to financially support 
        terrorist organizations and groups seeking to undermine 
        the Government of Afghanistan.
    ``(2) The report required by this subsection shall be 
submitted to Congress not later than 120 days after the date of 
the enactment of the 9/11 Recommendations Implementation 
Act.''.
            (3) Clerical amendment.--The table of contents for 
        such Act (22 U.S.C. 7501 note) is amended by striking 
        the items relating to sections 207 and 208 and 
        inserting the following:

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

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

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

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) Despite a long history of friendly relations 
        with the United States, there have been problems in 
        cooperation between the United States and Saudi Arabia.
            (2) The Government of Saudi Arabia has not always 
        responded promptly or fully to United States requests 
        for assistance in the global war on Islamist terrorism.
            (3) The Government of Saudi Arabia has not done all 
        it can to prevent financial or other support from being 
        provided to, or reaching, extremist organizations in 
        Saudi Arabia or other countries.
            (4) Counterterrorism cooperation between the 
        Governments of the United States and Saudi Arabia has 
        improved significantly since the terrorist bombing 
        attacks in Riyadh, Saudi Arabia, on May 12, 2003, and 
        the Government of Saudi Arabia is now pursuing al Qaeda 
        and other terror groups operating inside Saudi Arabia.
            (5) The United States must enhance its cooperation 
        and strong relationship with Saudi Arabia based upon a 
        shared and public commitment to political and economic 
        reform, greater tolerance and respect for religious and 
        cultural diversity and joint efforts to prevent funding 
        for and support of extremist organizations in Saudi 
        Arabia and elsewhere.
    (b) Sense of Congress.--It is the sense of Congress that 
there should be a more robust dialogue between the people and 
Government of the United States and the people and Government 
of Saudi Arabia in order to improve the relationship between 
the United States and Saudi Arabia.

SEC. 7106. EFFORTS TO COMBAT ISLAMIST TERRORISM.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) While support for the United States has 
        plummeted in the Islamic world, many negative views are 
        uninformed, at best, and, at worst, are informed by 
        coarse stereotypes and caricatures.
            (2) Local newspapers in countries with 
        predominantly Muslim populations and influential 
        broadcasters who reach Muslim audiences through 
        satellite television often reinforce the idea that the 
        people and Government of the United States are anti-
        Muslim.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Government of the United States should 
        offer an example of moral leadership in the world that 
        includes a commitment to treat all people humanely, 
        abide by the rule of law, and be generous to the people 
        and governments of other countries;
            (2) the United States should cooperate with 
        governments of countries with predominantly Muslim 
        populations to foster agreement on respect for human 
        dignity and opportunity, and to offer a vision of a 
        better future that includes stressing life over death, 
        individual educational and economic opportunity, 
        widespread political participation, contempt for 
        violence, respect for the rule of law, openness in 
        discussing differences, and tolerance for opposing 
        points of view;
            (3) the United States should encourage reform, 
        freedom, democracy, and opportunity for Muslims; and
            (4) the United States should work to defeat 
        extremism in all its form, especially in nations with 
        predominantly Muslim populations by providing 
        assistance to governments, non-governmental 
        organizations, and individuals who promote 
        modernization.

SEC. 7107. UNITED STATES POLICY TOWARD DICTATORSHIPS.

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

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

    (a) Promotion of United States Values Through Broadcast 
Media.--
            (1) Findings.--Consistent with the report of the 
        National Commission on Terrorist Attacks Upon the 
        United States, Congress makes the following findings:
                    (A) Although the United States has 
                demonstrated and promoted its values in 
                defending Muslims against tyrants and criminals 
                in Somalia, Bosnia, Kosovo, Afghanistan, and 
                Iraq, this message is neither convincingly 
                presented nor widely understood.
                    (B) If the United States does not act to 
                vigorously define its message in countries with 
                predominantly Muslim populations, the image of 
                the United States will be defined by Islamic 
                extremists who seek to demonize the United 
                States.
                    (C) Recognizing that many Muslim audiences 
                rely on satellite television and radio, the 
                United States Government has launched promising 
                initiatives in television and radio 
                broadcasting to the Islamic world, including 
                Iran and Afghanistan.
            (2) Sense of congress.--It is the sense of Congress 
        that--
                    (A) the United States must do more to 
                defend and promote its values and ideals to the 
                broadest possible audience in countries with 
                predominantly Muslim populations;
                    (B) United States efforts to defend and 
                promote these values and ideals are beginning 
                to ensure that accurate expressions of these 
                values reach large Muslim audiences and should 
                be robustly supported;
                    (C) the United States Government could and 
                should do more to engage Muslim audiences in 
                the struggle of ideas; and
                    (D) the United States Government should 
                more intensively employ existing broadcast 
                media in the Islamic world as part of this 
                engagement.
    (b) Enhancing Free and Independent Media.--
            (1) Findings.--Congress makes the following 
        findings:
                    (A) Freedom of speech and freedom of the 
                press are fundamental human rights.
                    (B) The United States has a national 
                interest in promoting these freedoms by 
                supporting free media abroad, which is 
                essential to the development of free and 
                democratic societies consistent with our own.
                    (C) Free media is undermined, endangered, 
                or nonexistent in many repressive and 
                transitional societies around the world, 
                including in Eurasia, Africa, and the Middle 
                East.
                    (D) Individuals lacking access to a 
                plurality of free media are vulnerable to 
                misinformation and propaganda and are 
                potentially more likely to adopt anti-United 
                States views.
                    (E) Foreign governments have a 
                responsibility to actively and publicly 
                discourage and rebut unprofessional and 
                unethical media while respecting journalistic 
                integrity and editorial independence.
            (2) Statement of policy.--It shall be the policy of 
        the United States, acting through the Secretary of 
        State, to--
                    (A) ensure that the promotion of freedom of 
                the press and freedom of media worldwide is a 
                priority of United States foreign policy and an 
                integral component of United States public 
                diplomacy;
                    (B) respect the journalistic integrity and 
                editorial independence of free media worldwide; 
                and
                    (C) ensure that widely accepted standards 
                for professional and ethical journalistic and 
                editorial practices are employed when assessing 
                international media.
    (c) Establishment of Media Network.--
            (1) Grants for establishment of network.--The 
        Secretary of State shall, utilizing amounts authorized 
        to be appropriated by subsection (e)(2), make grants to 
        the National Endowment for Democracy (NED) under the 
        National Endowment for Democracy Act (22 U.S.C. 4411 et 
        seq.) for utilization by the Endowment to provide 
        funding to a private sector group to establish and 
        manage a free and independent media network as 
        specified in paragraph (2).
            (2) Media network.--The media network established 
        using funds under paragraph (1) shall provide an 
        effective forum to convene a broad range of 
        individuals, organizations, and governmental 
        participants involved in journalistic activities and 
        the development of free and independent media in order 
        to--
                    (A) fund a clearinghouse to collect and 
                share information concerning international 
                media development and training;
                    (B) improve research in the field of media 
                assistance and program evaluation to better 
                inform decisions regarding funding and program 
                design for government and private donors;
                    (C) explore the most appropriate use of 
                existing means to more effectively encourage 
                the involvement of the private sector in the 
                field of media assistance; and
                    (D) identify effective methods for the 
                development of a free and independent media in 
                societies in transition.
    (d) Authorizations of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated for each of fiscal years 2005 and 2006, 
        unless otherwise authorized by Congress, such sums as 
        may be necessary to carry out United States Government 
        broadcasting activities consistent with this section 
        under the United States Information and Educational 
        Exchange Act of 1948 (22 U.S.C. 1431 et seq.), the 
        United States International Broadcasting Act of 1994 
        (22 U.S.C. 6201 et seq.), and the Foreign Affairs 
        Reform and Restructuring Act of 1998 (22 U.S.C. 6501 et 
        seq.), and to carry out other activities under this 
        section consistent with the purposes of such Acts, 
        unless otherwise authorized by Congress.
            (2) Grants for media network.--In addition to the 
        amounts authorized to be appropriated under paragraph 
        (1), there are authorized to be appropriated for each 
        of fiscal years 2005 and 2006, unless otherwise 
        authorized by Congress, such sums as may be necessary 
        for grants under subsection (c)(1) for the 
        establishment of the media network described in 
        subsection (c)(2).

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

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

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

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

SEC. 7110. PUBLIC DIPLOMACY TRAINING.

    (a) Statement of Policy.--The following should be the 
policy of the United States:
            (1) The Foreign Service should recruit individuals 
        with expertise and professional experience in public 
        diplomacy.
            (2) United States chiefs of mission should have a 
        prominent role in the formulation of public diplomacy 
        strategies for the countries and regions to which they 
        are assigned and should be accountable for the 
        operation and success of public diplomacy efforts at 
        their posts.
            (3) Initial and subsequent training of Foreign 
        Service officers should be enhanced to include 
        information and training on public diplomacy and the 
        tools and technology of mass communication.
    (b) Personnel.--
            (1) Qualifications.--In the recruitment, training, 
        and assignment of members of the Foreign Service, the 
        Secretary of State--
                    (A) should emphasize the importance of 
                public diplomacy and applicable skills and 
                techniques;
                    (B) should consider the priority 
                recruitment into the Foreign Service, including 
                at middle-level entry, of individuals with 
                expertise and professional experience in public 
                diplomacy, mass communications, or journalism; 
                and
                    (C) shall give special consideration to 
                individuals with language facility and 
                experience in particular countries and regions.
            (2) Languages of special interest.--The Secretary 
        of State shall seek to increase the number of Foreign 
        Service officers proficient in languages spoken in 
        countries with predominantly Muslim populations. Such 
        increase should be accomplished through the recruitment 
        of new officers and incentives for officers in service.
    (c) Public Diplomacy Suggested for Promotion in Foreign 
Service.--Section 603(b) of the Foreign Service Act of 1980 (22 
U.S.C. 4003(b)) is amended by adding at the end the following: 
``The precepts for selection boards shall include, whether the 
member of the Service or the member of the Senior Foreign 
Service, as the case may be, has demonstrated--
            (1) a willingness and ability to explain United 
        States policies in person and through the media when 
        occupying positions for which such willingness and 
        ability is, to any degree, an element of the member's 
        duties, or
            (2) other experience in public diplomacy.

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

    (a) Support and Expansion of Democracy Caucus.--
            (1) In general.--The President, acting through the 
        Secretary of State and the relevant United States 
        chiefs of mission, should--
                    (A) continue to strongly support and seek 
                to expand the work of the democracy caucus at 
                the United Nations General Assembly and the 
                United Nations Human Rights Commission; and
                    (B) seek to establish a democracy caucus at 
                the United Nations Conference on Disarmament 
                and at other broad-based international 
                organizations.
            (2) Purposes of the caucus.--A democracy caucus at 
        an international organization should--
                    (A) forge common positions, including, as 
                appropriate, at the ministerial level, on 
                matters of concern before the organization and 
                work within and across regional lines to 
                promote agreed positions;
                    (B) work to revise an increasingly outmoded 
                system of membership selection, regional 
                voting, and decisionmaking; and
                    (C) establish a rotational leadership 
                agreement to provide member countries an 
                opportunity, for a set period of time, to serve 
                as the designated president of the caucus, 
                responsible for serving as its voice in each 
                organization.
    (b) Leadership and Membership of International 
Organizations.--The President, acting through the Secretary of 
State, the relevant United States chiefs of mission, and, where 
appropriate, the Secretary of the Treasury, should use the 
voice, vote, and influence of the United States to--
            (1) where appropriate, reform the criteria for 
        leadership and, in appropriate cases, for membership, 
        at all United Nations bodies and at other international 
        organizations and multilateral institutions to which 
        the United States is a member so as to exclude 
        countries that violate the principles of the specific 
        organization;
            (2) make it a policy of the United Nations and 
        other international organizations and multilateral 
        institutions of which the United States is a member 
        that a member country may not stand in nomination for 
        membership or in nomination or in rotation for a 
        significant leadership position in such bodies if the 
        member country is subject to sanctions imposed by the 
        United Nations Security Council; and
            (3) work to ensure that no member country stand in 
        nomination for membership, or in nomination or in 
        rotation for a significant leadership position in such 
        organizations, or for membership on the United Nations 
        Security Council, if the government of the member 
        country has been determined by the Secretary of State 
        to have repeatedly provided support for acts of 
        international terrorism.
    (c) Increased Training in Multilateral Diplomacy.--
            (1) Statement of policy.--It shall be the policy of 
        the United States that training courses should be 
        established for Foreign Service Officers and civil 
        service employees of the State Department, including 
        appropriate chiefs of mission, on the conduct of 
        multilateral diplomacy, including the conduct of 
        negotiations at international organizations and 
        multilateral institutions, negotiating skills that are 
        required at multilateral settings, coalition-building 
        techniques, and lessons learned from previous United 
        States multilateral negotiations.
            (2) Personnel.--
                    (A) In general.--The Secretary shall ensure 
                that the training described in paragraph (1) is 
                provided at various stages of the career of 
                members of the Service.
                    (B) Actions of the Secretary.--The 
                Secretary shall ensure that--
                            (i) officers of the Service receive 
                        training on the conduct of diplomacy at 
                        international organizations and other 
                        multilateral institutions and at broad-
                        based multilateral negotiations of 
                        international instruments as part of 
                        their training upon entry into the 
                        Service; and
                            (ii) officers of the Service, 
                        including chiefs of mission, who are 
                        assigned to United States missions 
                        representing the United States to 
                        international organizations and other 
                        multilateral institutions or who are 
                        assigned in Washington, D.C., to 
                        positions that have as their primary 
                        responsibility formulation of policy 
                        toward such organizations and 
                        institutions or toward participation in 
                        broad-based multilateral negotiations 
                        of international instruments, receive 
                        specialized training in the areas 
                        described in paragraph (1) prior to 
                        beginning of service for such 
                        assignment or, if receiving such 
                        training at that time is not practical, 
                        within the first year of beginning such 
                        assignment.
            (3) Training for civil service employees.--The 
        Secretary shall ensure that employees of the Department 
        of State who are members of the civil service and who 
        are assigned to positions described in paragraph (2) 
        receive training described in paragraph (1) prior to 
        the beginning of service for such assignment or, if 
        receiving such training at such time is not practical, 
        within the first year of beginning such assignment.

SEC. 7112. EXPANSION OF UNITED STATES SCHOLARSHIP AND EXCHANGE PROGRAMS 
                    IN THE ISLAMIC WORLD.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) Exchange, scholarship, and library programs are 
        effective ways for the United States Government to 
        promote internationally the values and ideals of the 
        United States.
            (2) Exchange, scholarship, and library programs can 
        expose young people from other countries to United 
        States values and offer them knowledge and hope.
    (b) Declaration of Policy.--Consistent with the report of 
the National Commission on Terrorist Attacks Upon the United 
States, Congress declares that--
            (1) the United States should commit to a long-term 
        and sustainable investment in promoting engagement with 
        people of all levels of society in countries with 
        predominantly Muslim populations, particularly with 
        youth and those who influence youth;
            (2) such an investment should make use of the 
        talents and resources in the private sector and should 
        include programs to increase the number of people who 
        can be exposed to the United States and its fundamental 
        ideas and values in order to dispel misconceptions; and
            (3) such programs should include youth exchange 
        programs, young ambassadors programs, international 
        visitor programs, academic and cultural exchange 
        programs, American Corner programs, library programs, 
        journalist exchange programs, sister city programs, and 
        other programs related to people-to-people diplomacy.
    (c) Sense of Congress.--It is the sense of Congress that 
the United States should significantly increase its investment 
in the people-to-people programs described in subsection (b).
    (d) Authority To Expand Educational and Cultural 
Exchanges.--The President is authorized to substantially expand 
the exchange, scholarship, and library programs of the United 
States, especially such programs that benefit people in the 
Muslim world.
    (e) Availability of Funds.--Of the amounts authorized to be 
appropriated in each of the fiscal years 2005 and 2006 for 
educational and cultural exchange programs, there shall be 
available to the Secretary of State such sums as may be 
necessary to carry out programs under this section, unless 
otherwise authorized by Congress.

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

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

SEC. 7113. INTERNATIONAL YOUTH OPPORTUNITY FUND.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) Education that teaches tolerance, the dignity 
        and value of each individual, and respect for different 
        beliefs is a key element in any global strategy to 
        eliminate terrorism.
            (2) Education in the Middle East about the world 
        outside that region is weak.
            (3) The United Nations has rightly equated literacy 
        with freedom.
            (4) The international community is moving toward 
        setting a concrete goal of reducing by half the 
        illiteracy rate in the Middle East by 2010, through the 
        implementation of education programs targeting women 
        and girls and programs for adult literacy, and by other 
        means.
            (5) To be effective, efforts to improve education 
        in the Middle East must also include--
                    (A) support for the provision of basic 
                education tools, such as textbooks that 
                translate more of the world's knowledge into 
                local languages and local libraries to house 
                such materials; and
                    (B) more vocational education in trades and 
                business skills.
            (6) The Middle East can benefit from some of the 
        same programs to bridge the digital divide that already 
        have been developed for other regions of the world.
    (b) International Youth Opportunity Fund.--
            (1) Establishment.--The Secretary of State is 
        authorized to establish through an existing 
        international organization, such as the United Nations 
        Educational, Science and Cultural Organization (UNESCO) 
        or other similar body, an International Youth 
        Opportunity Fund to provide financial assistance for 
        the improvement of public education in the Middle East 
        and other countries of strategic interest with 
        predominantly Muslim populations.
            (2) International participation.--The Secretary 
        should seek the cooperation of the international 
        community in establishing and generously supporting the 
        Fund.

SEC. 7114. THE USE OF ECONOMIC POLICIES TO COMBAT TERRORISM.

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

SEC. 7115. MIDDLE EAST PARTNERSHIP INITIATIVE.

    (a) Authorization of Appropriations.--There are authorized 
to be appropriated for each of fiscal years 2005 and 2006, 
(unless otherwise authorized by Congress) such sums as may be 
necessary for the Middle East Partnership Initiative.
    (b) Sense of Congress.--It is the sense of Congress that, 
given the importance of the rule of law and economic reform to 
development in the Middle East, a significant portion of the 
funds authorized to be appropriated under subsection (a) should 
be made available to promote the rule of law in the Middle 
East.

SEC. 7116. COMPREHENSIVE COALITION STRATEGY FOR FIGHTING TERRORISM.

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

SEC. 7117. FINANCING OF TERRORISM.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) The death or capture of several important 
        financial facilitators has decreased the amount of 
        money available to al Qaeda, and has made it more 
        difficult for al Qaeda to raise and move money.
            (2) The capture of al Qaeda financial facilitators 
        has provided a windfall of intelligence that can be 
        used to continue the cycle of disruption.
            (3) The United States Government has rightly 
        recognized that information about terrorist money helps 
        in understanding terror networks, searching them out, 
        and disrupting their operations.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) a critical weapon in the effort to stop 
        terrorist financing should be the targeting of 
        terrorist financial facilitators by intelligence and 
        law enforcement agencies; and
            (2) efforts to track terrorist financing must be 
        paramount in United States counterterrorism efforts.

SEC. 7118. DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.

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

SEC. 7119. REPORT TO CONGRESS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the President shall submit to Congress a 
report on the activities of the Government of the United States 
to carry out the provisions of this subtitle.
    (b) Contents.--The report required under this section shall 
include the following:
            (1) Terrorist sanctuaries.--A description of the 
        strategy of the United States to address and, where 
        possible, eliminate terrorist sanctuaries, including--
                    (A) a description of the terrorist 
                sanctuaries that exist;
                    (B) an outline of strategies, tactics, and 
                tools for disrupting or eliminating the 
                security provided to terrorists by such 
                sanctuaries;
                    (C) a description of efforts by the United 
                States Government to work with other countries 
                in bilateral and multilateral fora to elicit 
                the cooperation needed to identify and address 
                terrorist sanctuaries that may exist unknown to 
                governments; and
                    (D) a description of long-term goals and 
                actions designed to reduce the conditions that 
                allow the formation of terrorist sanctuaries, 
                such as supporting and strengthening host 
                governments, reducing poverty, increasing 
                economic development, strengthening civil 
                society, securing borders, strengthening 
                internal security forces, and disrupting 
                logistics and communications networks of 
                terrorist groups.
            (2) Support for pakistan.--A description of a 
        United States strategy to engage with Pakistan and to 
        support it over the long term, including--
                    (A) recommendations on the composition and 
                levels of assistance required in future years, 
                with special consideration of the proper 
                balance between security assistance and other 
                forms of assistance;
                    (B) a description of the composition and 
                levels of assistance, other than security 
                assistance, at present and in the recent past, 
                structured to permit a comparison of current 
                and past practice with that recommended for the 
                future;
                    (C) measures that could be taken to ensure 
                that all forms of foreign assistance to 
                Pakistan have the greatest possible long-term 
                positive impact on the welfare of the Pakistani 
                people and on the ability of Pakistan to 
                cooperate in global efforts against terror; and
                    (D) measures that could be taken to 
                alleviate difficulties, misunderstandings, and 
                complications in the relationship between the 
                United States and Pakistan.
            (3) Collaboration with saudi arabia.--A description 
        of the strategy of the United States for expanding 
        collaboration with the Government of Saudi Arabia on 
        subjects of mutual interest and of importance, 
        including a description of--
                    (A) steps that could usefully be taken to 
                institutionalize and make more transparent 
                government to government relationships between 
                the United States and Saudi Arabia, including 
                the utility of undertaking periodic, formal, 
                and visible high-level dialogues between 
                government officials of both countries to 
                address challenges in the relationship between 
                the 2 governments and to identify areas and 
                mechanisms for cooperation;
                    (B) intelligence and security cooperation 
                between the United States and Saudi Arabia in 
                the fight against Islamist terrorism;
                    (C) ways to increase the contribution of 
                Saudi Arabia to the stability of the Middle 
                East and the Islamic world, particularly to the 
                Middle East peace process, by eliminating 
                support from or within Saudi Arabia for 
                extremist groups or tendencies;
                    (D) political and economic reform in Saudi 
                Arabia and throughout the Islamic world;
                    (E) ways to promote greater tolerance and 
                respect for cultural and religious diversity in 
                Saudi Arabia and throughout the Islamic world; 
                and
                    (F) ways to assist the Government of Saudi 
                Arabia in reversing the impact of any 
                financial, moral, intellectual, or other 
                support provided in the past from Saudi sources 
                to extremist groups in Saudi Arabia and other 
                countries, and to prevent this support from 
                continuing in the future.
            (4) Struggle of ideas in the islamic world.--A 
        description of a cohesive, long-term strategy of the 
        United States to help win the struggle of ideas in the 
        Islamic world, including the following:
                    (A) A description of specific goals related 
                to winning this struggle of ideas.
                    (B) A description of the range of tools 
                available to the United States Government to 
                accomplish such goals and the manner in which 
                such tools will be employed.
                    (C) A list of benchmarks for measuring 
                success and a plan for linking resources to the 
                accomplishment of such goals.
                    (D) A description of any additional 
                resources that may be necessary to help win 
                this struggle of ideas.
                    (E) Any recommendations for the creation 
                of, and United States participation in, 
                international institutions for the promotion of 
                democracy and economic diversification in the 
                Islamic world, and intraregional trade in the 
                Middle East.
                    (F) An estimate of the level of United 
                States financial assistance that would be 
                sufficient to convince United States allies and 
                people in the Islamic world that engaging in 
                the struggle of ideas in the Islamic world is a 
                top priority of the United States and that the 
                United States intends to make a substantial and 
                sustained commitment toward winning this 
                struggle.
            (5) Outreach through broadcast media.--A 
        description of a cohesive, long-term strategy of the 
        United States to expand its outreach to foreign Muslim 
        audiences through broadcast media, including the 
        following:
                    (A) The initiatives of the Broadcasting 
                Board of Governors with respect to outreach to 
                foreign Muslim audiences.
                    (B) An outline of recommended actions that 
                the United States Government should take to 
                more regularly and comprehensively present a 
                United States point of view through indigenous 
                broadcast media in countries with predominantly 
                Muslim populations, including increasing 
                appearances by United States Government 
                officials, experts, and citizens.
                    (C) An assessment of the major themes of 
                biased or false media coverage of the United 
                States in foreign countries and the actions 
                taken to address this type of media coverage.
                    (D) An assessment of potential incentives 
                for, and costs associated with, encouraging 
                United States broadcasters to dub or subtitle 
                into Arabic and other relevant languages their 
                news and public affairs programs broadcast in 
                the Muslim world in order to present those 
                programs to a much broader Muslim audience than 
                is currently reached.
                    (E) Any recommendations the President may 
                have for additional funding and legislation 
                necessary to achieve the objectives of the 
                strategy.
            (6) Visas for participants in united states 
        programs.--A description of--
                    (A) any recommendations for expediting the 
                issuance of visas to individuals who are 
                entering the United States for the purpose of 
                participating in a scholarship, exchange, or 
                visitor program described in section 7111(b) 
                without compromising the security of the United 
                States; and
                    (B) a proposed schedule for implementing 
                any recommendations described in subparagraph 
                (A).
            (7) Basic education in muslim countries.--A 
        description of a strategy, that was developed after 
        consultation with nongovernmental organizations and 
        individuals involved in education assistance programs 
        in developing countries, to promote free universal 
        basic education in the countries of the Middle East and 
        in other countries with predominantly Muslim 
        populations designated by the President. The strategy 
        shall include the following elements:
                    (A) A description of the manner in which 
                the resources of the United States and the 
                international community shall be used to help 
                achieve free universal basic education in such 
                countries, including--
                            (i) efforts of the United States to 
                        coordinate an international effort;
                            (ii) activities of the United 
                        States to leverage contributions from 
                        members of the Group of Eight or other 
                        donors; and
                            (iii) assistance provided by the 
                        United States to leverage contributions 
                        from the private sector and civil 
                        society organizations.
                    (B) A description of the efforts of the 
                United States to coordinate with other donors 
                to reduce duplication and waste at the global 
                and country levels and to ensure efficient 
                coordination among all relevant departments and 
                agencies of the Government of the United 
                States.
                    (C) A description of the strategy of the 
                United States to assist efforts to overcome 
                challenges to achieving free universal basic 
                education in such countries, including 
                strategies to target hard to reach populations 
                to promote education.
                    (D) A listing of countries that the 
                President determines might be eligible for 
                assistance under the International Youth 
                Opportunity Fund described in section 7113(b) 
                and related programs.
                    (E) A description of the efforts of the 
                United States to encourage countries in the 
                Middle East and other countries with 
                predominantly Muslim populations designated by 
                the President to develop and implement a 
                national education plan.
                    (F) A description of activities that could 
                be carried out as part of the International 
                Youth Opportunity Fund to help close the 
                digital divide and expand vocational and 
                business skills in such countries.
                    (G) An estimate of the funds needed to 
                achieve free universal basic education by 2015 
                in each country described in subparagraph (D), 
                and an estimate of the amount that has been 
                expended by the United States and by each such 
                country during the previous fiscal year.
                    (H) A description of the United States 
                strategy for garnering programmatic and 
                financial support from countries in the Middle 
                East and other countries with predominantly 
                Muslim populations designated by the President, 
                international organizations, and other 
                countries that share the objectives of the 
                International Youth Opportunity Fund.
            (8) Economic reform.--A description of the efforts 
        of the United States Government to encourage 
        development and promote economic reform in countries 
        that have a predominantly Muslim population, including 
        a description of--
                    (A) efforts to integrate countries with 
                predominantly Muslim populations into the 
                global trading system; and
                    (B) actions that the United States 
                Government, acting alone and in partnership 
                with governments in the Middle East, can take 
                to promote intraregional trade and the rule of 
                law in the region.
    (c) Form of Report.--Any report or other matter that is 
required to be submitted to Congress (including a committee of 
Congress) under this section may contain a classified annex.

SEC. 7120. CASE-ZABLOCKI ACT REQUIREMENTS.

    (a) Availability of Treaties and International 
Agreements.--Section 112a of title 1, United States Code, is 
amended by adding at the end the following:
    ``(d) The Secretary of State shall make publicly available 
through the Internet website of the Department of State each 
treaty or international agreement proposed to be published in 
the compilation entitled `United States Treaties and Other 
International Agreements' not later than 180 days after the 
date on which the treaty or agreement enters into force.''.
    (b) Transmission to Congress.--Section 112b(a) of title 1, 
United States Code, is amended by striking ``Committee on 
Foreign Affairs'' and inserting ``Committee on International 
Relations''.
    (c) Report.--Section 112b of title 1, United States Code, 
is amended--
            (1) by redesignating subsections (d) and (e) as 
        subsections (e) and (f), respectively; and
            (2) by inserting after subsection (c) the 
        following:
    ``(d)(1) The Secretary of State shall annually submit to 
Congress a report that contains an index of all international 
agreements, listed by country, date, title, and summary of each 
such agreement (including a description of the duration of 
activities under the agreement and the agreement itself), that 
the United States--
            ``(A) has signed, proclaimed, or with reference to 
        which any other final formality has been executed, or 
        that has been extended or otherwise modified, during 
        the preceding calendar year; and
            ``(B) has not been published, or is not proposed to 
        be published, in the compilation entitled `United 
        States Treaties and Other International Agreements'.
    ``(2) The report described in paragraph (1) may be 
submitted in classified form.''.
    (d) Determination of International Agreement.--Subsection 
(e) of section 112b of title 1, United States Code, as 
redesignated, is amended--
            (1) by striking ``(e) The Secretary of State'' and 
        inserting the following:
    ``(e)(1) Subject to paragraph (2), the Secretary of 
State''; and
            (2) by adding at the end the following:
    ``(2)(A) An arrangement shall constitute an international 
agreement within the meaning of this section (other than 
subsection (c)) irrespective of the duration of activities 
under the arrangement or the arrangement itself.
    ``(B) Arrangements that constitute an international 
agreement within the meaning of this section (other than 
subsection (c)) include the following:
            ``(i) A bilateral or multilateral counterterrorism 
        agreement.
            ``(ii) A bilateral agreement with a country that is 
        subject to a determination under section 6(j)(1)(A) of 
        the Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j)(1)(A)), section 620A(a) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2371(a)), or section 
        40(d) of the Arms Export Control Act (22 U.S.C. 
        2780(d)).''.
    (e) Enforcement of Requirements.--Section 139(b) of the 
Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 
is amended to read as follows:
    ``(b) Effective Date.--Subsection (a) shall take effect 60 
days after the date of enactment of the 911 Commission 
Implementation Act of 2004 and shall apply during fiscal years 
2005, 2006, and 2007.''.

SEC. 7121. EFFECTIVE DATE.

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

          Subtitle B--Terrorist Travel and Effective Screening

SEC. 7201. COUNTERTERRORIST TRAVEL INTELLIGENCE.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) Travel documents are as important to terrorists 
        as weapons since terrorists must travel clandestinely 
        to meet, train, plan, case targets, and gain access to 
        attack sites.
            (2) International travel is dangerous for 
        terrorists because they must surface to pass through 
        regulated channels, present themselves to border 
        security officials, or attempt to circumvent inspection 
        points.
            (3) Terrorists use evasive, but detectable, methods 
        to travel, such as altered and counterfeit passports 
        and visas, specific travel methods and routes, liaisons 
        with corrupt government officials, human smuggling 
        networks, supportive travel agencies, and immigration 
        and identity fraud.
            (4) Before September 11, 2001, no Federal agency 
        systematically analyzed terrorist travel strategies. If 
        an agency had done so, the agency could have discovered 
        the ways in which the terrorist predecessors to al 
        Qaeda had been systematically, but detectably, 
        exploiting weaknesses in our border security since the 
        early 1990s.
            (5) Many of the hijackers were potentially 
        vulnerable to interception by border authorities. 
        Analyzing their characteristic travel documents and 
        travel patterns could have allowed authorities to 
        intercept some of the hijackers and a more effective 
        use of information available in government databases 
        could have identified some of the hijackers.
            (6) The routine operations of our immigration laws 
        and the aspects of those laws not specifically aimed at 
        protecting against terrorism inevitably shaped al 
        Qaeda's planning and opportunities.
            (7) New insights into terrorist travel gained since 
        September 11, 2001, have not been adequately integrated 
        into the front lines of border security.
            (8) The small classified terrorist travel 
        intelligence collection and analysis program currently 
        in place has produced useful results and should be 
        expanded.
    (b) Strategy.--
            (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Director of the 
        National Counterterrorism Center shall submit to 
        Congress unclassified and classified versions of a 
        strategy for combining terrorist travel intelligence, 
        operations, and law enforcement into a cohesive effort 
        to intercept terrorists, find terrorist travel 
        facilitators, and constrain terrorist mobility 
        domestically and internationally. The report to 
        Congress should include a description of the actions 
        taken to implement the strategy and an assessment 
        regarding vulnerabilities within the United States and 
        foreign travel systems that may be exploited by 
        international terrorists, human smugglers and 
        traffickers, and their facilitators.
            (2) Coordination.--The strategy shall be developed 
        in coordination with all relevant Federal agencies.
            (3) Contents.--The strategy may address--
                    (A) a program for collecting, analyzing, 
                disseminating, and utilizing information and 
                intelligence regarding terrorist travel tactics 
                and methods, and outline which Federal 
                intelligence, diplomatic, and law enforcement 
                agencies will be held accountable for 
                implementing each element of the strategy;
                    (B) the intelligence and law enforcement 
                collection, analysis, operations, and reporting 
                required to identify and disrupt terrorist 
                travel tactics, practices, patterns, andtrends, 
and the terrorist travel facilitators, document forgers, human 
smugglers, travel agencies, and corrupt border and transportation 
officials who assist terrorists;
                    (C) the training and training materials 
                required by consular, border, and immigration 
                officials to effectively detect and disrupt 
                terrorist travel described under subsection 
                (c)(3);
                    (D) the new technology and procedures 
                required and actions to be taken to integrate 
                existing counterterrorist travel document and 
                mobility intelligence into border security 
                processes, including consular, port of entry, 
                border patrol, maritime, immigration benefits, 
                and related law enforcement activities;
                    (E) the actions required to integrate 
                current terrorist mobility intelligence into 
                military force protection measures;
                    (F) the additional assistance to be given 
                to the interagency Human Smuggling and 
                Trafficking Center for purposes of combatting 
                terrorist travel, including further developing 
                and expanding enforcement and operational 
                capabilities that address terrorist travel;
                    (G) the actions to be taken to aid in the 
                sharing of information between the frontline 
                border agencies of the Department of Homeland 
                Security, the Department of State, and 
                classified and unclassified sources of 
                counterterrorist travel intelligence and 
                information elsewhere in the Federal 
                Government, including the Human Smuggling and 
                Trafficking Center;
                    (H) the development and implementation of 
                procedures to enable the National 
                Counterterrorism Center, or its designee, to 
                timely receive terrorist travel intelligence 
                and documentation obtained at consulates and 
                ports of entry, and by law enforcement officers 
                and military personnel;
                    (I) the use of foreign and technical 
                assistance to advance border security measures 
                and law enforcement operations against 
                terrorist travel facilitators;
                    (J) the feasibility of developing a program 
                to provide each consular, port of entry, and 
                immigration benefits office with a 
                counterterrorist travel expert trained and 
                authorized to use the relevant authentication 
                technologies and cleared to access all 
                appropriate immigration, law enforcement, and 
                intelligence databases;
                    (K) the feasibility of digitally 
                transmitting suspect passport information to a 
                central cadre of specialists, either as an 
                interim measure until such time as experts 
                described under subparagraph (J) are available 
                at consular, port of entry, and immigration 
                benefits offices, or otherwise;
                    (L) the development of a mechanism to 
                ensure the coordination and dissemination of 
                terrorist travel intelligence and operational 
                information among the Department of Homeland 
                Security, the Department of State, the National 
                Counterterrorism Center, and other appropriate 
                agencies;
                    (M) granting consular officers and 
                immigration adjudicators, as appropriate, the 
                security clearances necessary to access law 
                enforcement sensitive and intelligence 
                databases; and
                    (N) how to integrate travel document 
                screening for terrorism indicators into border 
                screening, and how to integrate the 
                intelligence community into a robust travel 
                document screening process to intercept 
                terrorists.
    (c) Frontline Counterterrorist Travel Technology and 
Training.--
            (1) Technology acquisition and dissemination 
        plan.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Homeland 
        Security, in conjunction with the Secretary of State, 
        shall submit to Congress a plan describing how the 
        Department of Homeland Security and the Department of 
        State can acquire and deploy, to the maximum extent 
        feasible, to all consulates, ports of entry, and 
        immigration benefits offices, technologies that 
        facilitate document authentication and the detection of 
        potential terrorist indicators on travel documents. To 
        the extent possible, technologies acquired and deployed 
        under this plan shall be compatible with systems used 
        by the Department of Homeland Security to detect 
        fraudulent documents and identify genuine documents.
            (2) Contents of plan.--The plan submitted under 
        paragraph (1) shall--
                    (A) outline the timetable needed to acquire 
                and deploy the authentication technologies;
                    (B) identify the resources required to--
                            (i) fully disseminate these 
                        technologies; and
                            (ii) train personnel on use of 
                        these technologies; and
                    (C) address the feasibility of using these 
                technologies to screen every passport or other 
                documentation described in section 7209(b) 
                submitted for identification purposes to a 
                United States consular, border, or immigration 
                official.
    (d) Training Program.--
            (1) Review, evaluation, and revision of existing 
        training programs.--The Secretary of Homeland Security 
        shall--
                    (A) review and evaluate the training 
                regarding travel and identity documents, and 
                techniques, patterns, and trends associated 
                with terrorist travel that is provided to 
                personnel of the Department of Homeland 
                Security;
                    (B) in coordination with the Secretary of 
                State, review and evaluate the training 
                described in subparagraph (A) that is provided 
                to relevant personnel of the Department of 
                State; and
                    (C) in coordination with the Secretary of 
                State, develop and implement an initial 
                training and periodic retraining program--
                            (i) to teach border, immigration, 
                        and consular officials (who inspect or 
                        review travel or identity documents as 
                        part of their official duties) how to 
                        effectively detect, intercept, and 
                        disrupt terrorist travel; and
                            (ii) to ensure that the officials 
                        described in clause (i) regularly 
                        receive the most current information on 
                        such matters and are periodically 
                        retrained on the matters described in 
                        paragraph (2).
            (2) Required topics of revised programs.--The 
        training program developed under paragraph (1)(C) shall 
        include training in--
                    (A) methods for identifying fraudulent and 
                genuine travel documents;
                    (B) methods for detecting terrorist 
                indicators on travel documents and other 
                relevant identity documents;
                    (C) recognition of travel patterns, 
                tactics, and behaviors exhibited by terrorists;
                    (D) effective utilization of information 
                contained in databases and data systems 
                available to the Department of Homeland 
                Security; and
                    (E) other topics determined to be 
                appropriate by the Secretary of Homeland 
                Security, in consultation with the Secretary of 
                State or the Director of National Intelligence.
            (3) Implementation.--
                    (A) Department of homeland security.--
                            (i) In general.--The Secretary of 
                        Homeland Security shall provide all 
                        border and immigration officials who 
                        inspect or review travel or identity 
                        documents as part of their official 
                        duties with the training described in 
                        paragraph (1)(C).
                            (ii) Report to congress.--Not later 
                        than 12 months after the date of 
                        enactment of this Act, and annually 
                        thereafter for a period of 3 years, the 
                        Secretary of Homeland Security shall 
                        submit a report to Congress that--
                                    (I) describes the number of 
                                border and immigration 
                                officials who inspect or review 
                                identity documents as part of 
                                their official duties, and the 
                                proportion of whom have 
                                received the revised training 
                                program described in paragraph 
                                (1)(C)(i);
                                    (II) explains the reasons, 
                                if any, for not completing the 
                                requisite training described in 
                                paragraph (1)(C)(i);
                                    (III) provides a timetable 
                                for completion of the training 
                                described in paragraph 
                                (1)(C)(i) for those who have 
                                not received such training; and
                                    (IV) describes the status 
                                of periodic retraining of 
                                appropriate personnel described 
                                in paragraph (1)(C)(ii).
                    (B) Department of state.--
                            (i) In general.--The Secretary of 
                        State shall provide all consular 
                        officers who inspect or review travel 
                        or identity documents as part of their 
                        official duties with the training 
                        described in paragraph (1)(C).
                            (ii) Report to congress.--Not later 
                        than 12 months after the date of 
                        enactment of this Act, and annually 
                        thereafter for a period of 3 years, the 
                        Secretary of State shall submit a 
                        report to Congress that--
                                    (I) describes the number of 
                                consular officers who inspect 
                                or review travel or identity 
                                documents as part of their 
                                official duties, and the 
                                proportion of whom have 
                                received the revised training 
                                program described in paragraph 
                                (1)(C)(i);
                                    (II) explains the reasons, 
                                if any, for not completing the 
                                requisite training described in 
                                paragraph (1)(C)(i);
                                    (III) provides a timetable 
                                for completion of the training 
                                described in paragraph 
                                (1)(C)(i) for those who have 
                                not received such training; and
                                    (IV) describes the status 
                                of periodic retraining of 
                                appropriate personnel described 
                                in paragraph (1)(C)(ii).
            (4) Assistance to others.--The Secretary of 
        Homeland Security may assist States, Indian tribes, 
        local governments, and private organizations to 
        establish training programs related to terrorist travel 
        intelligence.
            (5) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as may be 
        necessary for each of the fiscal years 2005 through 
        2009 to carry out the provisions of this subsection.
    (e) Enhancing Classified Counterterrorist Travel Efforts.--
            (1) In general.--The Director of National 
        Intelligence shall significantly increase resources and 
        personnel to the small classified program that collects 
        and analyzes intelligence on terrorist travel.
            (2) Authorization of appropriations.--There are 
        authorized to be appropriated for each of the fiscal 
        years 2005 through 2009 such sums as may be necessary 
        to carry out this subsection.

SEC. 7202. ESTABLISHMENT OF HUMAN SMUGGLING AND TRAFFICKING CENTER.

    (a) Establishment.--There is established a Human Smuggling 
and Trafficking Center (referred to in this section as the 
``Center'').
    (b) Operation.--The Secretary of State, the Secretary of 
Homeland Security, and the Attorney General shall operate the 
Center in accordance with the Memorandum of Understanding 
entitled, ``Human Smuggling and Trafficking Center (HSTC), 
Charter''.
    (c) Functions.--In addition to such other responsibilities 
as the President may assign, the Center shall--
            (1) serve as the focal point for interagency 
        efforts to address terrorist travel;
            (2) serve as a clearinghouse with respect to all 
        relevant information from all Federal Government 
        agencies in support of the United States strategy to 
        prevent separate, but related, issues of clandestine 
        terrorist travel and facilitation of migrant smuggling 
        and trafficking of persons;
            (3) ensure cooperation among all relevant policy, 
        law enforcement, diplomatic, and intelligence agencies 
        of the Federal Government to improve effectiveness and 
        to convert all information available to the Federal 
        Government relating to clandestine terrorist travel and 
        facilitation, migrant smuggling, and trafficking of 
        persons into tactical, operational, and strategic 
        intelligence that can be used to combat such illegal 
        activities; and
            (4) prepare and submit to Congress, on an annual 
        basis, a strategic assessment regarding vulnerabilities 
        in the United States and foreign travel system that may 
        be exploited by international terrorists, human 
        smugglers and traffickers, and their facilitators.
    (d) Report.--Not later than 180 days after the date of 
enactment of this Act, the President shall transmit to Congress 
a report regarding the implementation of this section, 
including a description of the staffing and resource needs of 
the Center.
    (e) Relationship to the NCTC.--As part of its mission to 
combat terrorist travel, the Center shall work to support the 
efforts of the National Counterterrorism Center.

SEC. 7203. RESPONSIBILITIES AND FUNCTIONS OF CONSULAR OFFICERS.

    (a) Increased Number of Consular Officers.--The Secretary 
of State, in each of fiscal years 2006 through 2009, may 
increase by 150 the number of positions for consular officers 
above the number of such positions for which funds were 
allotted for the preceding fiscal year.
    (b) Limitation on Use of Foreign Nationals for Visa 
Screening.--
            (1) Immigrant visas.--Section 222(b) of the 
        Immigration and Nationality Act (8 U.S.C. 1202(b)) is 
        amended by adding at the end the following: ``All 
        immigrant visa applications shall be reviewed and 
        adjudicated by a consular officer.''.
            (2) Nonimmigrant visas.--Section 222(d) of the 
        Immigration and Nationality Act (8 U.S.C. 1202(d)) is 
        amended by adding at the end the following: ``All 
        nonimmigrant visa applications shall be reviewed and 
        adjudicated by a consular officer.''.
    (c) Training for Consular Officers in Detection of 
Fraudulent Documents.--Section 305(a) of the Enhanced Border 
Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1734(a)) 
is amended by adding at the end the following: ``In accordance 
with section 7201(d) of the 9/11 Commission Implementation Act 
of 2004, and as part of the consular training provided to such 
officers by the Secretary of State, such officers shall also 
receive training in detecting fraudulent documents and general 
document forensics and shall be required as part of such 
training to work with immigration officers conducting 
inspections of applicants for admission into the United States 
at ports of entry.''.
    (d) Assignment of Anti-Fraud Specialists.--
            (1) Survey regarding document fraud.--The Secretary 
        of State, in coordination with the Secretary of 
        Homeland Security, shall conduct a survey of each 
        diplomatic and consular post at which visas are issued 
        to assess the extent to which fraudulent documents are 
        presented by visa applicants to consular officers at 
        such posts.
            (2) Requirement for specialist.--
                    (A) In general.--Not later than July 31, 
                2005, the Secretary of State, in coordination 
                with the Secretary of Homeland Security, shall 
                identify the diplomatic and consular posts at 
                which visas are issued that experience the 
                greatest frequency of presentation of 
                fraudulent documents by visa applicants. The 
                Secretary of State shall assign ordesignate at 
each such post at least 1 full-time anti-fraud specialist employed by 
the Department of State to assist the consular officers at each such 
post in the detection of such fraud.
                    (B) Exceptions.--The Secretary of State is 
                not required to assign or designate a 
                specialist under subparagraph (A) at a 
                diplomatic or consular post if an employee of 
                the Department of Homeland Security, who has 
                sufficient training and experience in the 
                detection of fraudulent documents, is assigned 
                on a full-time basis to such post under section 
                428 of the Homeland Security Act of 2002 (6 
                U.S.C. 236).

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

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

SEC. 7205. INTERNATIONAL STANDARDS FOR TRANSLITERATION OF NAMES INTO 
                    THE ROMAN ALPHABET FOR INTERNATIONAL TRAVEL 
                    DOCUMENTS AND NAME-BASED WATCHLIST SYSTEMS.

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

SEC. 7206. IMMIGRATION SECURITY INITIATIVE.

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

SEC. 7207. CERTIFICATION REGARDING TECHNOLOGY FOR VISA WAIVER 
                    PARTICIPANTS.

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

SEC. 7208. BIOMETRIC ENTRY AND EXIT DATA SYSTEM.

    (a) Finding.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress finds that completing a biometric entry and exit data 
system as expeditiously as possible is an essential investment 
in efforts to protect the United States by preventing the entry 
of terrorists.
    (b) Definition.--In this section, the term ``entry and exit 
data system'' means the entry and exit system required by 
applicable sections of--
            (1) the Illegal Immigration Reform and Immigrant 
        Responsibility Act of 1996 (Public Law 104-208);
            (2) the Immigration and Naturalization Service Data 
        Management Improvement Act of 2000 (Public Law 106-
        205);
            (3) the Visa Waiver Permanent Program Act (Public 
        Law 106-396);
            (4) the Enhanced Border Security and Visa Entry 
        Reform Act of 2002 (Public Law 107-173); and
            (5) the Uniting and Strengthening America by 
        Providing Appropriate Tools Required to Intercept and 
        Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 
        (Public Law 107-56).
    (c) Plan and Report.--
            (1) Development of plan.--The Secretary of Homeland 
        Security shall develop a plan to accelerate the full 
        implementation of an automated biometric entry and exit 
        data system.
            (2) Report.--Not later than 180 days after the date 
        of enactment of this Act, the Secretary shall submit a 
        report to Congress on the plan developed under 
        paragraph (1), which shall contain--
                    (A) a description of the current 
                functionality of the entry and exit data 
                system, including--
                            (i) a listing of ports of entry and 
                        other Department of Homeland Security 
                        and Department of State locations with 
                        biometric entry data systems in use and 
                        whether such screening systems are 
                        located at primary or secondary 
                        inspection areas;
                            (ii) a listing of ports of entry 
                        and other Department of Homeland 
                        Security and Department of State 
                        locations with biometric exit data 
                        systems in use;
                            (iii) a listing of databases and 
                        data systems with which the entry and 
                        exit data system are interoperable;
                            (iv) a description of--
                                    (I) identified deficiencies 
                                concerning the accuracy or 
                                integrity of the information 
                                contained in the entry and exit 
                                data system;
                                    (II) identified 
                                deficiencies concerning 
                                technology associated with 
                                processing individuals through 
                                the system; and
                                    (III) programs or policies 
                                planned or implemented to 
                                correct problems identified in 
                                subclause (I) or (II); and
                            (v) an assessment of the 
                        effectiveness of the entry and exit 
                        data system in fulfilling its intended 
                        purposes, including preventing 
                        terrorists from entering the United 
                        States;
                    (B) a description of factors relevant to 
                the accelerated implementation of the biometric 
                entry and exit data system, including--
                            (i) the earliest date on which the 
                        Secretary estimates that full 
                        implementation of the biometric entry 
                        and exit data system can be completed;
                            (ii) the actions the Secretary will 
                        take to accelerate the full 
                        implementation of the biometric entry 
                        and exit data system at all ports of 
                        entry through which all aliens must 
                        pass that are legally required to do 
                        so; and
                            (iii) the resources and authorities 
                        required to enable the Secretary to 
                        meet the implementation date described 
                        in clause (i);
                    (C) a description of any improvements 
                needed in the information technology employed 
                for the biometric entry and exit data system;
                    (D) a description of plans for improved or 
                added interoperability with any other databases 
                or data systems; and
                    (E) a description of the manner in which 
                the Department of Homeland Security's US-VISIT 
                program--
                            (i) meets the goals of a 
                        comprehensive entry and exit screening 
                        system, including both entry and exit 
                        biometric; and
                            (ii) fulfills the statutory 
                        obligations under subsection (b).
    (d) Collection of Biometric Exit Data.--The entry and exit 
data system shall include a requirement for the collection of 
biometric exit data for all categories of individuals who are 
required to provide biometric entry data, regardless of the 
port of entry where such categories of individuals entered the 
United States.
    (e) Integration and Interoperability.--
            (1) Integration of data system.--Not later than 2 
        years after the date of enactment of this Act, the 
        Secretary shall fullyintegrate all databases and data 
systems that process or contain information on aliens, which are 
maintained by--
                    (A) the Department of Homeland Security, 
                at--
                            (i) the United States Immigration 
                        and Customs Enforcement;
                            (ii) the United States Customs and 
                        Border Protection; and
                            (iii) the United States Citizenship 
                        and Immigration Services;
                    (B) the Department of Justice, at the 
                Executive Office for Immigration Review; and
                    (C) the Department of State, at the Bureau 
                of Consular Affairs.
            (2) Interoperable component.--The fully integrated 
        data system under paragraph (1) shall be an 
        interoperable component of the entry and exit data 
        system.
            (3) Interoperable data system.--Not later than 2 
        years after the date of enactment of this Act, the 
        Secretary shall fully implement an interoperable 
        electronic data system, as required by section 202 of 
        the Enhanced Border Security and Visa Entry Reform Act 
        (8 U.S.C. 1722) to provide current and immediate access 
        to information in the databases of Federal law 
        enforcement agencies and the intelligence community 
        that is relevant to determine--
                    (A) whether to issue a visa; or
                    (B) the admissibility or deportability of 
                an alien.
    (f) Maintaining Accuracy and Integrity of Entry and Exit 
Data System.--
            (1) Policies and procedures.--
                    (A) Establishment.--The Secretary of 
                Homeland Security shall establish rules, 
                guidelines, policies, and operating and 
                auditing procedures for collecting, removing, 
                and updating data maintained in, and adding 
                information to, the entry and exit data system 
                that ensure the accuracy and integrity of the 
                data.
                    (B) Training.--The Secretary shall develop 
                training on the rules, guidelines, policies, 
                and procedures established under subparagraph 
                (A), and on immigration law and procedure. All 
                personnel authorized to access information 
                maintained in the databases and data system 
                shall receive such training.
            (2) Data collected from foreign nationals.--The 
        Secretary of Homeland Security, the Secretary of State, 
        and the Attorney General, after consultation with 
        directors of the relevant intelligence agencies, shall 
        standardize the information and data collected from 
        foreign nationals, and the procedures utilized to 
        collect such data, to ensure that the information is 
        consistent and valuable to officials accessing that 
        data across multiple agencies.
            (3) Data maintenance procedures.--Heads of agencies 
        that have databases or data systems linked to the entry 
        and exit data system shall establish rules, guidelines, 
        policies, and operating and auditing procedures for 
        collecting, removing, and updating data maintained in, 
        and adding information to, such databases or data 
        systems that ensure the accuracy and integrity of the 
        data and for limiting access to the information in the 
        databases or data systems to authorized personnel.
            (4) Requirements.--The rules, guidelines, policies, 
        and procedures established under this subsection 
        shall--
                    (A) incorporate a simple and timely method 
                for--
                            (i) correcting errors in a timely 
                        and effective manner;
                            (ii) determining which government 
                        officer provided data so that the 
                        accuracy of the data can be 
                        ascertained; and
                            (iii) clarifying information known 
                        to cause false hits or 
                        misidentification errors;
                    (B) include procedures for individuals to--
                            (i) seek corrections of data 
                        contained in the databases or data 
                        systems; and
                            (ii) appeal decisions concerning 
                        data contained in the databases or data 
                        systems;
                    (C) strictly limit the agency personnel 
                authorized to enter data into the system;
                    (D) identify classes of information to be 
                designated as temporary or permanent entries, 
                with corresponding expiration dates for 
                temporary entries; and
                    (E) identify classes of prejudicial 
                information requiring additional authority of 
                supervisory personnel before entry.
            (5) Centralizing and streamlining correction 
        process.--
                    (A) In general.--The President, or agency 
                director designated by the President, shall 
                establish a clearinghouse bureau in the 
                Department of Homeland Security, to centralize 
                and streamline the process through which 
                members of the public can seek corrections to 
                erroneous or inaccurate information contained 
                in agency databases, which is related to 
                immigration status, or which otherwise impedes 
                lawful admission to the United States.
                    (B) Time schedules.--The process described 
                in subparagraph (A) shall include specific time 
                schedules for reviewing data correction 
                requests, rendering decisions on such requests, 
                and implementing appropriate corrective action 
                in a timely manner.
    (g) Integrated Biometric Entry-Exit Screening System.--The 
biometric entry and exit data system shall facilitate efficient 
immigration benefits processing by--
            (1) ensuring that the system's tracking 
        capabilities encompass data related to all immigration 
        benefits processing, including--
                    (A) visa applications with the Department 
                of State;
                    (B) immigration related filings with the 
                Department of Labor;
                    (C) cases pending before the Executive 
                Office for Immigration Review; and
                    (D) matters pending or under investigation 
                before the Department of Homeland Security;
            (2) utilizing a biometric based identity number 
        tied to an applicant's biometric algorithm established 
        under the entry and exit data system to track all 
        immigration related matters concerning the applicant;
            (3) providing that--
                    (A) all information about an applicant's 
                immigration related history, including entry 
                and exit history, can be queried through 
                electronic means; and
                    (B) database access and usage guidelines 
                include stringent safeguards to prevent misuse 
                of data;
            (4) providing real-time updates to the information 
        described in paragraph (3)(A), including pertinent data 
        from all agencies referred to in paragraph (1); and
            (5) providing continuing education in 
        counterterrorism techniques, tools, and methods for all 
        Federal personnel employed in the evaluation of 
        immigration documents and immigration-related policy.
    (h) Entry-Exit System Goals.--The Department of Homeland 
Security shall operate the biometric entry and exit system so 
that it--
            (1) serves as a vital counterterrorism tool;
            (2) screens travelers efficiently and in a 
        welcoming manner;
            (3) provides inspectors and related personnel with 
        adequate real-time information;
            (4) ensures flexibility of training and security 
        protocols to most effectively comply with security 
        mandates;
            (5) integrates relevant databases and plans for 
        database modifications to address volume increase and 
        database usage; and
            (6) improves database search capacities by 
        utilizing language algorithms to detect alternate 
        names.
    (i) Dedicated Specialists and Front Line Personnel 
Training.--In implementing the provisions of subsections (g) 
and (h), the Department of Homeland Security and the Department 
of State shall--
            (1) develop cross-training programs that focus on 
        the scope and procedures of the entry and exit data 
        system;
            (2) provide extensive community outreach and 
        education on the entry and exit data system's 
        procedures;
            (3) provide clear and consistent eligibility 
        guidelines for applicants in low-risk traveler 
        programs; and
            (4) establish ongoing training modules on 
        immigration law to improve adjudications at our ports 
        of entry, consulates, and embassies.
    (j) Compliance Status Reports.--Not later than 1 year after 
the date of enactment of this Act, the Secretary of Homeland 
Security, the Secretary of State, the Attorney General, and the 
head of any other department or agency subject to the 
requirements of this section, shall issue individual status 
reports and a joint status report detailing the compliance of 
the department or agency with each requirement under this 
section.
    (k) Expediting Registered Travelers Across International 
Borders.--
            (1) Findings.--Consistent with the report of the 
        National Commission on Terrorist Attacks Upon the 
        United States, Congress makes the following findings:
                    (A) Expediting the travel of previously 
                screened and known travelers across the borders 
                of the United States should be a high priority.
                    (B) The process of expediting known 
                travelers across the borders of the United 
                States can permit inspectors to better focus on 
                identifying terrorists attempting to enter the 
                United States.
            (2) Definition.--In this subsection, the term 
        ``registered traveler program'' means any program 
        designed to expedite the travel of previously screened 
        and known travelers across the borders of the United 
        States.
            (3) Registered travel program.--
                    (A) In general.--As soon as is practicable, 
                the Secretary shall develop and implement a 
                registered traveler program to expedite the 
                processing of registered travelers who enter 
                and exit the United States.
                    (B) Participation.--The registered traveler 
                program shall include as many participants as 
                practicable by--
                            (i) minimizing the cost of 
                        enrollment;
                            (ii) making program enrollment 
                        convenient and easily accessible; and
                            (iii) providing applicants with 
                        clear and consistent eligibility 
                        guidelines.
                    (C) Integration.--The registered traveler 
                program shall be integrated into the automated 
                biometric entry and exit data system described 
                in this section.
                    (D) Review and evaluation.--In developing 
                the registered traveler program, the Secretary 
                shall--
                            (i) review existing programs or 
                        pilot projects designed to expedite the 
                        travel of registered travelers across 
                        the borders of the United States;
                            (ii) evaluate the effectiveness of 
                        the programs described in clause (i), 
                        the costs associated with such 
                        programs, and the costs to travelers to 
                        join such programs;
                            (iii) increase research and 
                        development efforts to accelerate the 
                        development and implementation of a 
                        single registered traveler program; and
                            (iv) review the feasibility of 
                        allowing participants to enroll in the 
                        registered traveler program at consular 
                        offices.
            (4) Report.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall submit to 
        Congress a report describing the Department's progress 
        on the development and implementation of the registered 
        traveler program.
    (l) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary, for each of the fiscal 
years 2005 through 2009, such sums as may be necessary to carry 
out the provisions of this section.

SEC. 7209. TRAVEL DOCUMENTS.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) Existing procedures allow many individuals to 
        enter the United States by showing minimal 
        identification or without showing any identification.
            (2) The planning for the terrorist attacks of 
        September 11, 2001, demonstrates that terrorists study 
        and exploit United States vulnerabilities.
            (3) Additional safeguards are needed to ensure that 
        terrorists cannot enter the United States.
    (b) Passports.--
            (1) Development of plan.--The Secretary of Homeland 
        Security, in consultation with the Secretary of State, 
        shall develop and implement a plan as expeditiously as 
        possible to require a passport or other document, or 
        combination of documents, deemed by the Secretary of 
        Homeland Security to be sufficient to denote identity 
        and citizenship, for all travel into the United States 
        by United States citizens and by categories of 
        individuals for whom documentation requirements have 
        previously been waived under section 212(d)(4)(B) of 
        the Immigration and Nationality Act (8 U.S.C. 
        1182(d)(4)(B)). This plan shall be implemented not 
        later than January 1, 2008, and shall seek to expedite 
        the travel of frequent travelers, including those who 
        reside in border communities, and in doing so, shall 
        make readily available a registered traveler program 
        (as described in section 7208(k)).
            (2) Requirement to produce documentation.--The plan 
        developed under paragraph (1) shall require all United 
        States citizens, and categories of individuals for whom 
        documentation requirements have previously been waived 
        under section 212(d)(4)(B) of such Act, to carry and 
        produce the documentation described in paragraph (1) 
        when traveling from foreign countries into the United 
        States.
    (c) Technical and Conforming Amendments.--After the 
complete implementation of the plan described in subsection 
(b)--
            (1) neither the Secretary of State nor the 
        Secretary of Homeland Security may exercise discretion 
        under section 212(d)(4)(B) of such Act to waive 
        documentary requirements for travel into the United 
        States; and
            (2) the President may not exercise discretion under 
        section 215(b) of such Act (8 U.S.C. 1185(b)) to waive 
        documentary requirements for United States citizens 
        departing from or entering, or attempting to depart 
        from or enter, the United States except--
                    (A) where the Secretary of Homeland 
                Security determines that the alternative 
                documentation that is the basis for the waiver 
                of the documentary requirement is sufficient to 
                denote identity and citizenship;
                    (B) in the case of an unforeseen emergency 
                in individual cases; or
                    (C) in the case of humanitarian or national 
                interest reasons in individual cases.
    (d) Transit Without Visa Program.--The Secretary of State 
shall not use any authorities granted under section 
212(d)(4)(C) of such Act until the Secretary, in conjunction 
with the Secretary of Homeland Security, completely implements 
a security plan to fully ensure secure transit passage areas to 
prevent aliens proceeding in immediate and continuous transit 
through the United States from illegally entering the United 
States.

SEC. 7210. EXCHANGE OF TERRORIST INFORMATION AND INCREASED 
                    PREINSPECTION AT FOREIGN AIRPORTS.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) The exchange of terrorist information with 
        other countries, consistent with privacy requirements, 
        along with listings of lost and stolen passports, will 
        have immediate security benefits.
            (2) The further away from the borders of the United 
        States that screening occurs, the more security 
        benefits the United States will gain.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Federal Government should exchange 
        terrorist information with trusted allies;
            (2) the Federal Government should move toward real-
        time verification of passports with issuing 
        authorities;
            (3) where practicable, the Federal Government 
        should conduct screening before a passenger departs on 
        a flight destined for the United States;
            (4) the Federal Government should work with other 
        countries to ensure effective inspection regimes at all 
        airports;
            (5) the Federal Government should work with other 
        countries to improve passport standards and provide 
        foreign assistance to countries that need help making 
        the transition to the global standard for 
        identification; and
            (6) the Department of Homeland Security, in 
        coordination with the Department of State and other 
        Federal agencies, should implement the initiatives 
        called for in this subsection.
    (c) Report Regarding the Exchange of Terrorist 
Information.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary of State 
        and the Secretary of Homeland Security, working with 
        other Federal agencies, shall submit to the appropriate 
        committees of Congress a report on Federal efforts to 
        collaborate with allies of the United States in the 
        exchange of terrorist information.
            (2) Contents.--The report shall outline--
                    (A) strategies for increasing such 
                collaboration and cooperation;
                    (B) progress made in screening passengers 
                before their departure to the United States; 
                and
                    (C) efforts to work with other countries to 
                accomplish the goals described under this 
                section.
    (d) Preinspection at Foreign Airports.--
            (1) In general.--Section 235A(a)(4) of the 
        Immigration and Nationality Act (8 U.S.C. 1225a(a)(4)) 
        is amended to read as follows:
            ``(4) Subject to paragraph (5), not later than 
        January 1, 2008, the Secretary of Homeland Security, in 
        consultation with the Secretary of State, shall 
        establish preinspection stations in at least 25 
        additional foreign airports, which the Secretary of 
        Homeland Security, in consultation with the Secretary 
        of State, determines, based on the data compiled under 
        paragraph (3) and such other information as may be 
        available, would most effectively facilitate the travel 
        of admissible aliens and reduce the number of 
        inadmissible aliens, especially aliens who are 
        potential terrorists, who arrive from abroad by air at 
        points of entry within the United States. Such 
        preinspection stations shall be in addition to those 
        established before September 30, 1996, or pursuant to 
        paragraph (1).''.
            (2) Report.--Not later than June 30, 2006, the 
        Secretary of Homeland Security and the Secretary of 
        State shall submit a report on the progress being made 
        in implementing the amendment made by paragraph (1) 
        to--
                    (A) the Committee on the Judiciary of the 
                Senate;
                    (B) the Committee on the Judiciary of the 
                House of Representatives;
                    (C) the Committee on Foreign Relations of 
                the Senate;
                    (D) the Committee on International 
                Relations of the House of Representatives;
                    (E) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    (F) the Select Committee on Homeland 
                Security of the House of Representatives (or 
                any successor committee).

SEC. 7211. MINIMUM STANDARDS FOR BIRTH CERTIFICATES.

    (a) Definition.--In this section, the term ``birth 
certificate'' means a certificate of birth--
            (1) for an individual (regardless of where born)--
                    (A) who is a citizen or national of the 
                United States at birth; and
                    (B) whose birth is registered in the United 
                States; and
            (2) that--
                    (A) is issued by a Federal, State, or local 
                government agency or authorized custodian of 
                record and produced from birth records 
                maintained by such agency or custodian of 
                record; or
                    (B) is an authenticated copy, issued by a 
                Federal, State, or local government agency or 
                authorized custodian of record, of an original 
                certificate of birth issued by such agency or 
                custodian of record.
    (b) Standards for Acceptance by Federal Agencies.--
            (1) In general.--Beginning 2 years after the 
        promulgation of minimum standards under paragraph (3), 
        no Federal agency may accept a birth certificate for 
        any official purpose unless the certificate conforms to 
        such standards.
            (2) State certification.--
                    (A) In general.--Each State shall certify 
                to the Secretary of Health and Human Services 
                that the State is in compliance with the 
                requirements of this section.
                    (B) Frequency.--Certifications under 
                subparagraph (A) shall be made at such 
                intervals and in such a manner as the Secretary 
                of Health and Human Services, with the 
                concurrence of the Secretary of Homeland 
                Security and the Commissioner of Social 
                Security, may prescribe by regulation.
                    (C) Compliance.--Each State shall ensure 
                that units of local government and other 
                authorized custodians of records in the State 
                comply with this section.
                    (D) Audits.--The Secretary of Health and 
                Human Services may conduct periodic audits of 
                each State's compliance with the requirements 
                of this section.
            (3) Minimum standards.--Not later than 1 year after 
        the date of enactment of this Act, the Secretary of 
        Health and Human Services shall by regulation establish 
        minimum standards for birth certificates for use by 
        Federal agencies for official purposes that--
                    (A) at a minimum, shall require 
                certification of the birth certificate by the 
                State or local government custodian of record 
                that issued the certificate, and shall require 
                the use of safety paper or an alternative, 
                equally secure medium, the seal of the issuing 
                custodian of record, and other features 
                designed to prevent tampering, counterfeiting, 
                or otherwise duplicating the birth certificate 
                for fraudulent purposes;
                    (B) shall establish requirements for proof 
                and verification of identity as a condition of 
                issuance of a birth certificate, with 
                additional security measures for the issuance 
                of a birth certificate for a person who is not 
                the applicant;
                    (C) shall establish standards for the 
                processing of birth certificate applications to 
                prevent fraud;
                    (D) may not require a single design to 
                which birth certificates issued by all States 
                must conform; and
                    (E) shall accommodate the differences 
                between the States in the manner and form in 
                which birth records are stored and birth 
                certificates are produced from such records.
            (4) Consultation with government agencies.--In 
        promulgating the standards required under paragraph 
        (3), the Secretary of Health and Human Services shall 
        consult with--
                    (A) the Secretary of Homeland Security;
                    (B) the Commissioner of Social Security;
                    (C) State vital statistics offices; and
                    (D) other appropriate Federal agencies.
            (5) Extension of effective date.--The Secretary of 
        Health and Human Services may extend the date specified 
        under paragraph (1) for up to 2 years for birth 
        certificates issued by a State if the Secretary 
        determines that the State made reasonable efforts to 
        comply with the date under paragraph (1) but was unable 
        to do so.
    (c) Grants to States.--
            (1) Assistance in meeting federal standards.--
                    (A) In general.--Beginning on the date a 
                final regulation is promulgated under 
                subsection (b)(3), the Secretary of Health and 
                Human Services shall award grants to States to 
                assist them in conforming to the minimum 
                standards for birth certificates set forth in 
                the regulation.
                    (B) Allocation of grants.--The Secretary 
                shall award grants to States under this 
                paragraph based on the proportion that the 
                estimated average annual number of birth 
                certificates issued by a State applying for a 
                grant bears to the estimated average annual 
                number of birth certificates issued by all 
                States.
                    (C) Minimum allocation.--Notwithstanding 
                subparagraph (B), each State shall receive not 
                less than 0.5 percent of the grant funds made 
                available under this paragraph.
            (2) Assistance in matching birth and death 
        records.--
                    (A) In general.--The Secretary of Health 
                and Human Services, in coordination with the 
                Commissioner of Social Security and other 
                appropriate Federal agencies, shall award 
                grants to States, under criteria established by 
                the Secretary, to assist States in--
                            (i) computerizing their birth and 
                        death records;
                            (ii) developing the capability to 
                        match birth and death records within 
                        each State and among the States; and
                            (iii) noting the fact of death on 
                        the birth certificates of deceased 
                        persons.
                    (B) Allocation of grants.--The Secretary 
                shall award grants to qualifying States under 
                this paragraph based on the proportion that the 
                estimated annual average number of birth and 
                death records created by a State applying for a 
                grant bears to the estimated annual average 
                number of birth and death records originated by 
                all States.
                    (C) Minimum allocation.--Notwithstanding 
                subparagraph (B), each State shall receive not 
                less than 0.5 percent of the grant funds made 
                available under this paragraph.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for each of the fiscal 
years 2005 through 2009 such sums as may be necessary to carry 
out this section.
    (e) Technical and Conforming Amendment.--Section 656 of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 
1996 (5 U.S.C. 301 note) is repealed.

SEC. 7212. DRIVER'S LICENSES AND PERSONAL IDENTIFICATION CARDS.

    (a) Definitions.--In this section:
            (1) Driver's license.--The term ``driver's 
        license'' means a motor vehicle operator's license as 
        defined in section 30301(5) of title 49, United States 
        Code.
            (2) Personal identification card.--The term 
        ``personal identification card'' means an 
        identification document (as defined in section 
        1028(d)(3) of title 18, United States Code) issued by a 
        State.
    (b) Standards for Acceptance by Federal Agencies.--
            (1) In general.--
                    (A) Limitation on acceptance.--No Federal 
                agency may accept, for any official purpose, a 
                driver's license or personal identification 
                card newly issued by a State more than 2 years 
                after the promulgation of the minimum standards 
                under paragraph (2) unless the driver's license 
                or personal identification card conforms to 
                such minimum standards.
                    (B) Date for conformance.--The Secretary of 
                Transportation, in consultation with the 
                Secretary of Homeland Security, shall establish 
                a date after which no driver's license or 
                personal identification card shall be accepted 
                by a Federal agency for any official purpose 
                unless such driver's license or personal 
                identification card conforms to the minimum 
                standards established under paragraph (2). The 
                date shall be as early as the Secretary 
                determines it is practicable for the States to 
                comply with such date with reasonable efforts.
                    (C) State certification.--
                            (i) In general.--Each State shall 
                        certify to the Secretary of 
                        Transportation that the State is in 
                        compliance with the requirements of 
                        this section.
                            (ii) Frequency.--Certifications 
                        under clause (i) shall be made at such 
                        intervals and in such a manner as the 
                        Secretary of Transportation, with the 
                        concurrence of the Secretary of 
                        Homeland Security, may prescribe by 
                        regulation.
                            (iii) Audits.--The Secretary of 
                        Transportation may conduct periodic 
                        audits of each State's compliance with 
                        the requirements of this section.
            (2) Minimum standards.--Not later than 18 months 
        after the date of enactment of this Act, the Secretary 
        of Transportation, in consultation with the Secretary 
        of Homeland Security, shall by regulation, establish 
        minimum standards for driver's licenses or personal 
        identification cards issued by a State for use by 
        Federal agencies for identification purposes that shall 
        include--
                    (A) standards for documentation required as 
                proof of identity of an applicant for a 
                driver's license or personal identification 
                card;
                    (B) standards for the verifiability of 
                documents used to obtain a driver's license or 
                personal identification card;
                    (C) standards for the processing of 
                applications for driver's licenses and personal 
                identification cards to prevent fraud;
                    (D) standards for information to be 
                included on each driver's license or personal 
                identification card, including--
                            (i) the person's full legal name;
                            (ii) the person's date of birth;
                            (iii) the person's gender;
                            (iv) the person's driver's license 
                        or personal identification card number;
                            (v) a digital photograph of the 
                        person;
                            (vi) the person's address of 
                        principal residence; and
                            (vii) the person's signature;
                    (E) standards for common machine-readable 
                identity information to be included on each 
                driver's license or personal identification 
                card, including defined minimum data elements;
                    (F) security standards to ensure that 
                driver's licenses and personal identification 
                cards are--
                            (i) resistant to tampering, 
                        alteration, or counterfeiting; and
                            (ii) capable of accommodating and 
                        ensuring the security of a digital 
                        photograph or other unique identifier; 
                        and
                    (G) a requirement that a State confiscate a 
                driver's license or personal identification 
                card if any component or security feature of 
                the license or identification card is 
                compromised.
            (3) Content of regulations.--The regulations 
        required by paragraph (2)--
                    (A) shall facilitate communication between 
                the chief driver licensing official of a State, 
                an appropriate official of a Federal agency and 
                other relevant officials, to verify the 
                authenticity of documents, as appropriate, 
                issued by such Federal agency or entity and 
                presented to prove the identity of an 
                individual;
                    (B) may not infringe on a State's power to 
                set criteria concerning what categories of 
                individuals are eligible to obtain a driver's 
                license or personal identification card from 
                that State;
                    (C) may not require a State to comply with 
                any such regulation that conflicts with or 
                otherwise interferes with the full enforcement 
                of State criteria concerning the categories of 
                individuals that are eligible to obtain a 
                driver's license or personal identification 
                card from that State;
                    (D) may not require a single design to 
                which driver's licenses or personal 
                identification cards issued by all States must 
                conform; and
                    (E) shall include procedures and 
                requirements to protect the privacy rights of 
                individuals who apply for and hold driver's 
                licenses and personal identification cards.
            (4) Negotiated rulemaking.--
                    (A) In general.--Before publishing the 
                proposed regulations required by paragraph (2) 
                to carry out this title, the Secretary of 
                Transportation shall establish a negotiated 
                rulemaking process pursuant to subchapter IV of 
                chapter 5 of title 5, United States Code (5 
                U.S.C. 561 et seq.).
                    (B) Representation on negotiated rulemaking 
                committee.--Any negotiated rulemaking committee 
                established by the Secretary of Transportation 
                pursuant to subparagraph (A) shall include 
                representatives from--
                            (i) among State offices that issue 
                        driver's licenses or personal 
                        identification cards;
                            (ii) among State elected officials;
                            (iii) the Department of Homeland 
                        Security; and
                            (iv) among interested parties.
                    (C) Time requirement.--The process 
                described in subparagraph (A) shall be 
                conducted in a timely manner to ensure that--
                            (i) any recommendation for a 
                        proposed rule or report is provided to 
                        the Secretary of Transportation not 
                        later than 9 months after the date of 
                        enactment of this Act and shall include 
                        an assessment of the benefits and costs 
                        of the recommendation; and
                            (ii) a final rule is promulgated 
                        not later than 18 months after the date 
                        of enactment of this Act.
    (c) Grants to States.--
            (1) Assistance in meeting federal standards.--
        Beginning on the date a final regulation is promulgated 
        under subsection (b)(2), the Secretary of 
        Transportation shall award grants to States to assist 
        them in conforming to the minimum standards for 
        driver's licenses and personal identification cards set 
        forth in the regulation.
            (2) Allocation of grants.--The Secretary of 
        Transportation shall award grants to States under this 
        subsection based on the proportion that the estimated 
        average annual number of driver's licenses and personal 
        identification cards issued by a State applying for a 
        grant bears to the average annual number of such 
        documents issued by all States.
            (3) Minimum allocation.--Notwithstanding paragraph 
        (2), each State shall receive not less than 0.5 percent 
        of the grant funds made available under this 
        subsection.
    (d) Extension of Effective Date.--The Secretary of 
Transportation may extend the date specified under subsection 
(b)(1)(A) for up to 2 years for driver's licenses issued by a 
State if the Secretary determines that the State made 
reasonable efforts to comply with the date under such 
subsection but was unable to do so.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Transportation for each 
of the fiscal years 2005 through 2009, such sums as may be 
necessary to carry out this section.

SEC. 7213. SOCIAL SECURITY CARDS AND NUMBERS.

    (a) Security Enhancements.--The Commissioner of Social 
Security shall--
            (1) not later than 1 year after the date of 
        enactment of this Act--
                    (A) restrict the issuance of multiple 
                replacement social security cards to any 
                individual to 3 per year and 10 for the life of 
                the individual, except that the Commissioner 
                may allow for reasonable exceptions from the 
                limits under this paragraph on a case-by-case 
                basis in compelling circumstances;
                    (B) establish minimum standards for the 
                verification of documents or records submitted 
                by an individual to establish eligibility for 
                an original or replacement social security 
                card, other than for purposes of enumeration at 
                birth; and
                    (C) require independent verification of any 
                birth record submitted by an individual to 
                establish eligibility for a social security 
                account number, other than for purposes of 
                enumeration at birth, except that the 
                Commissioner may allow for reasonable 
                exceptions from the requirement for independent 
                verification under this subparagraph on a case 
                by case basis in compelling circumstances; and
            (2) notwithstanding section 205(r) of the Social 
        Security Act (42 U.S.C. 405(r)) and any agreement 
        entered into thereunder, not later than 18 months after 
        the date of enactment of this Act with respect to death 
        indicators and not later than 36 months after the date 
        of enactment of this Act with respect to fraud 
        indicators, add death and fraud indicators to the 
        social security number verification systems for 
        employers, State agencies issuing driver's licenses and 
        identity cards, and other verification routines that 
        the Commissioner determines to be appropriate.
    (b) Interagency Security Task Force.--The Commissioner of 
Social Security, in consultation with the Secretary of Homeland 
Security, shall form an interagency task force for the purpose 
of further improving the security of social security cards and 
numbers. Not later than 18 months after the date of enactment 
of this Act, the task force shall establish, and the 
Commissioner shall provide for the implementation of, security 
requirements, including--
            (1) standards for safeguarding social security 
        cards from counterfeiting, tampering, alteration, and 
        theft;
            (2) requirements for verifying documents submitted 
        for the issuance of replacement cards; and
            (3) actions to increase enforcement against the 
        fraudulent use or issuance of social security numbers 
        and cards.
    (c) Enumeration at Birth.--
            (1) Improvement of application process.--As soon as 
        practicable after the date of enactment of this Act, 
        the Commissioner of Social Security shall undertake to 
        make improvements to the enumeration at birth program 
        for the issuance of social security account numbers to 
        newborns. Such improvements shall be designed to 
        prevent--
                    (A) the assignment of social security 
                account numbers to unnamed children;
                    (B) the issuance of more than 1 social 
                security account number to the same child; and
                    (C) other opportunities for fraudulently 
                obtaining a social security account number.
            (2) Report to congress.--Not later than 1 year 
        after the date of enactment of this Act, the 
        Commissioner shall transmit to each House of Congress a 
        report specifying in detail the extent to which the 
        improvements required under paragraph (1) have been 
        made.
    (d) Study Regarding Process for Enumeration at Birth.--
            (1) In general.--As soon as practicable after the 
        date of enactment of this Act, the Commissioner of 
        Social Security shall conduct a study to determine the 
        most efficient options for ensuring the integrity of 
        the process for enumeration at birth. This study shall 
        include an examination of available methods for 
        reconciling hospital birth records with birth 
        registrations submitted to agencies of States and 
        political subdivisions thereof and with information 
        provided to the Commissioner as part of the process for 
        enumeration at birth.
            (2) Report.--
                    (A) In general.--Not later than 18 months 
                after the date of enactment of this Act, the 
                Commissioner shall submit a report to the 
                Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of 
                the Senate regarding the results of the study 
                conducted under paragraph (1).
                    (B) Contents.--The report submitted under 
                subparagraph (A) shall contain such 
                recommendations for legislative changes as the 
                Commissioner considers necessary to implement 
                needed improvements in the process for 
                enumeration at birth.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Commissioner of Social Security for 
each of the fiscal years 2005 through 2009, such sums as may be 
necessary to carry out this section.

SEC. 7214. PROHIBITION OF THE DISPLAY OF SOCIAL SECURITY ACCOUNT 
                    NUMBERS ON DRIVER'S LICENSES OR MOTOR VEHICLE 
                    REGISTRATIONS.

    (a) In General.--Section 205(c)(2)(C)(vi) of the Social 
Security Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
            (1) by inserting ``(I)'' after ``(vi)''; and
            (2) by adding at the end the following new 
        subclause:
    ``(II) Any State or political subdivision thereof (and any 
person acting as an agent of such an agency or 
instrumentality), in the administration of any driver's license 
or motor vehicle registration law within its jurisdiction, may 
not display a social security account number issued by the 
Commissioner of Social Security (or any derivative of such 
number) on any driver's license, motor vehicle registration, or 
personal identification card (as defined in section 7212(a)(2) 
of the 9/11 Commission Implementation Act of 2004), or include, 
on any such license, registration, or personal identification 
card, a magnetic strip, bar code, or other means of 
communication which conveys such number (or derivative 
thereof).''.
    (b) Effective Date.--The amendment made by subsection 
(a)(2) shall apply with respect to licenses, registrations, and 
identification cards issued or reissued 1 year after the date 
of enactment of this Act.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Commissioner of Social Security for 
each of the fiscal years 2005 through 2009, such sums as may be 
necessary to carry out this section.

SEC. 7215. TERRORIST TRAVEL PROGRAM.

    The Secretary of Homeland Security, in consultation with 
the Director of the National Counterterrorism Center, and 
consistent with the strategy developed under section 7201, 
shall establish a program to oversee the implementation of the 
Department's responsibilities with respect to terrorist travel, 
including the analysis, coordination, and dissemination of 
terrorist travel intelligence and operational information--
            (1) among appropriate subdivisions of the 
        Department of Homeland Security, including--
                    (A) the Bureau of Customs and Border 
                Protection;
                    (B) United States Immigration and Customs 
                Enforcement;
                    (C) United States Citizenship and 
                Immigration Services;
                    (D) the Transportation Security 
                Administration; and
                    (E) any other subdivision, as determined by 
                the Secretary; and
            (2) between the Department of Homeland Security and 
        other appropriate Federal agencies.

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

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

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

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

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

    (a) Establishment.--There is established, within the Bureau 
of Diplomatic Security of the Department of State, the Visa and 
Passport Security Program (in this section referred to as the 
``Program'').
    (b) Preparation of Strategic Plan.--
            (1) In general.--The Assistant Secretary for 
        Diplomatic Security, in coordination with the 
        appropriate officials of the Bureau of Consular 
        Affairs, the coordinator for counterterrorism, the 
        National Counterterrorism Center, and the Department of 
        Homeland Security, and consistent with the strategy 
        mandated by section 7201, shall ensure the preparation 
        of a strategic plan to target and disrupt individuals 
        and organizations, within the United States and in 
        foreign countries, that are involved in the fraudulent 
        production, distribution, use, or other similar 
        activity--
                    (A) of a United States visa or United 
                States passport;
                    (B) of documents intended to help 
                fraudulently procure a United States visa or 
                United States passport, or other documents 
                intended to gain unlawful entry into the United 
                States; or
                    (C) of passports and visas issued by 
                foreign countries intended to gain unlawful 
                entry into the United States.
            (2) Emphasis.--The strategic plan shall--
                    (A) focus particular emphasis on 
                individuals and organizations that may have 
                links to domestic terrorist organizations or 
                foreign terrorist organizations (as such term 
                is defined in section 219 of the Immigration 
                and Nationality Act (8 U.S.C. 1189));
                    (B) require the development of a strategic 
                training course under the Antiterrorism 
                Assistance Training (ATA) program of the 
                Department of State (or any successor or 
                related program) under chapter 8 of part II of 
                the Foreign Assistance Act of 1961 (22 U.S.C. 
                2349aa et seq.) (or other relevant provisions 
                of law) to train participants in the 
                identification of fraudulent documents and the 
                forensic detection of such documents which may 
                be used to obtain unlawful entry into the 
                United States; and
                    (C) determine the benefits and costs of 
                providing technical assistance to foreign 
                governments to ensure the security of 
                passports, visas, and related documents and to 
                investigate, arrest, and prosecute individuals 
                who facilitate travel by the creation of false 
                passports and visas, documents to obtain such 
                passports and visas, and other types of travel 
                documents.
    (c) Program.--
            (1) Individual in charge.--
                    (A) Designation.--The Assistant Secretary 
                for Diplomatic Security shall designate an 
                individual to be in charge of the Program.
                    (B) Qualification.--The individual 
                designated under subparagraph (A) shall have 
                expertise and experience in the investigation 
                and prosecution of visa and passport fraud.
            (2) Program components.--The Program shall include 
        the following:
                    (A) Analysis of methods.--Analyze, in 
                coordination with other appropriate government 
                agencies, methods used by terrorists to travel 
                internationally, particularly the use of false 
                or altered travel documents to illegally enter 
                foreign countries and the United States, and 
                consult with the Bureau of Consular Affairs and 
                the Secretary of Homeland Security on 
                recommended changes to the visa issuance 
                process that could combat such methods, 
                including the introduction of new technologies 
                into such process.
                    (B) Identification of individuals and 
                documents.--Identify, in cooperation with the 
                Human Trafficking and Smuggling Center, 
                individuals who facilitate travel by the 
                creation of false passports and visas, 
                documents used to obtain such passports and 
                visas, and other types of travel documents, and 
                ensure that the appropriate agency is notified 
                for further investigation and prosecution or, 
                in the case of such individuals abroad for 
                which no further investigation or prosecution 
                is initiated, ensure that all appropriate 
                information is shared with foreign governments 
                in order to facilitate investigation, arrest, 
                and prosecution of such individuals.
                    (C) Identification of foreign countries 
                needing assistance.--Identify foreign countries 
                that need technical assistance, such as law 
                reform, administrative reform, prosecutorial 
                training, or assistance to police and other 
                investigative services, to ensure passport, 
                visa, and related document security and to 
                investigate, arrest, and prosecute individuals 
                who facilitate travel by the creation of false 
                passports and visas, documents used to obtain 
                such passports and visas, and other types of 
                travel documents.
                    (D) Inspection of applications.--Randomly 
                inspect visa and passport applications for 
                accuracy, efficiency, and fraud, especially at 
                high terrorist threat posts, in order to 
                prevent a recurrence of the issuance of visas 
                to those who submit incomplete, fraudulent, or 
                otherwise irregular or incomplete applications.
    (d) Report.--Not later than 90 days after the date on which 
the strategy required under section 7201 is submitted to 
Congress, the Assistant Secretary for Diplomatic Security shall 
submit to Congress a report containing--
            (1) a description of the strategic plan prepared 
        under subsection (b); and
            (2) an evaluation of the feasibility of 
        establishing civil service positions in field offices 
        of the Bureau of Diplomatic Security to investigate 
        visa and passport fraud, including an evaluation of 
        whether to allow diplomatic security agents to convert 
        to civil service officers to fill such positions.

SEC. 7219. EFFECTIVE DATE.

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

SEC. 7220. IDENTIFICATION STANDARDS.

    (a) Proposed Standards.--
            (1) In general.--The Secretary of Homeland 
        Security--
                    (A) shall propose minimum standards for 
                identification documents required of domestic 
                commercial airline passengers for boarding an 
                aircraft; and
                    (B) may, from time to time, propose minimum 
                standards amending or replacing standards 
                previously proposed and transmitted to Congress 
                and approved under this section.
            (2) Submission to congress.--Not later than 6 
        months after the date of enactment of this Act, the 
        Secretary shall submit the standards under paragraph 
        (1)(A) to the Senate and the House of Representatives 
        on the same day while each House is in session.
            (3) Effective date.--Any proposed standards 
        submitted to Congress under this subsection shall take 
        effect when an approval resolution is passed by the 
        House and the Senate under the procedures described in 
        subsection (b) and becomes law.
    (b) Congressional Approval Procedures.--
            (1) Rulemaking power.--This subsection is enacted 
        by Congress--
                    (A) as an exercise of the rulemaking power 
                of the Senate and the House of Representatives, 
                respectively, and as such they are deemed a 
                part of the rules of each House, respectively, 
                but applicable only with respect to the 
                procedure to be followed in that House in the 
                case of such approval resolutions; and it 
                supersedes other rules only to the extent that 
                they are inconsistent therewith; and
                    (B) with full recognition of the 
                constitutional right of either House to change 
                the rules (so far as relating to the procedure 
                of that House) at any time, in the same manner 
                and to the same extent as in the case of any 
                other rule of that House.
            (2) Approval resolution.--For the purpose of this 
        subsection, the term ``approval resolution'' means a 
        joint resolution of Congress, the matter after the 
        resolving clause of which is as follows: ``That the 
        Congress approves the proposed standards issued under 
        section 7220 of the 9/11 Commission Implementation Act 
        of 2004, transmitted by the President to the Congress 
        on ______'', the blank space being filled in with the 
        appropriate date.
            (3) Introduction.--Not later than the first day of 
        session following the day on which proposed standards 
        are transmitted to the House of Representatives and the 
        Senate under subsection (a), an approval resolution--
                    (A) shall be introduced (by request) in the 
                House by the Majority Leader of the House of 
                Representatives, for himself or herself and the 
                minority leader of the House of 
                Representatives, or by Members of the House of 
                Representatives designated by the Majority 
                Leader and Minority Leader of the House; and
                    (B) shall be introduced (by request) in the 
                Senate by the Majority Leader of the Senate, 
                for himself or herself and the Minority Leader 
                of the Senate, or by Members of the Senate 
                designated by the Majority Leader and Minority 
                Leader of the Senate.
            (4) Prohibitions.--
                    (A) Amendments.--No amendment to an 
                approval resolution shall be in order in either 
                the House of Representatives or the Senate.
                    (B) Motions to suspend.--No motion to 
                suspend the application of this paragraph shall 
                be in order in either House, nor shall it be in 
                order in either House for the Presiding Officer 
                to entertain a request to suspend the 
                application of this paragraph by unanimous 
                consent.
            (5) Referral.--
                    (A) In general.--An approval resolution 
                shall be referred to the committees of the 
                House of Representatives and of the Senate with 
                jurisdiction. Each committee shall make its 
                recommendations to the House of Representatives 
                or the Senate, as the case may be, within 45 
                days after its introduction. Except as provided 
                in subparagraph (B), if a committee to which an 
                approval resolution has been referred has not 
                reported it at the close of the 45th day after 
                its introduction, such committee shall be 
                automatically discharged from further 
                consideration of the resolution and it shall be 
                placed on the appropriate calendar.
                    (B) Final passage.--A vote on final passage 
                of the resolution shall be taken in each House 
                on or before the close of the 15th day after 
                the resolution is reported by the committee or 
                committees of that House to which it was 
                referred, or after such committee or committees 
                have been discharged from further consideration 
                of the resolution.
                    (C) Computation of days.--For purposes of 
                this paragraph, in computing a number of days 
                in either House, there shall be excluded any 
                day on which that House is not in session.
            (6) Coordination with action of other house.--If 
        prior to the passage by one House of an approval 
        resolution of that House, that House receives the same 
        approval resolution from the other House, then the 
        procedure in that House shall be the same as if no 
        approval resolution has been received from the other 
        House, but the vote on final passage shall be on the 
        approval resolution of the other House.
            (7) Floor consideration in the house of 
        representatives.--
                    (A) Motion to proceed.--A motion in the 
                House of Representatives to proceed to the 
                consideration of an approval resolution shall 
                be highly privileged and not debatable. An 
                amendment to the motion shall not be in order, 
                nor shall it be in order to move to reconsider 
                the vote by which the motion is agreed to or 
                disagreed to.
                    (B) Debate.--Debate in the House of 
                Representatives on an implementing bill or 
                approval resolution shall be limited to not 
                more than 4 hours, which shall be divided 
                equally between those favoring and those 
                opposing the resolution. A motion to further 
                limit debate shall not be debatable. It shall 
                not be in order to move to recommit an approval 
                resolution or to move to reconsider the vote by 
                which an approval resolution is agreed to or 
                disagreed to.
                    (C) Motion to postpone.--Motions to 
                postpone made in the House of Representatives 
                with respect to the consideration of an 
                approval resolution and motions to proceed to 
                the consideration of other business shall be 
                decided without debate.
                    (D) Appeals.--All appeals from the 
                decisions of the Chair relating to the 
                application of the Rules of the House of 
                Representatives to the procedure relating to an 
                approval resolution shall be decided without 
                debate.
                    (E) Rules of the house of 
                representatives.--Except to the extent 
                specifically provided in subparagraphs (A) 
                through (D), consideration of an approval 
                resolution shall be governed by the Rules of 
                the House of Representatives applicable to 
                other resolutions in similar circumstances.
            (8) Floor consideration in the Senate.--
                    (A) Motion to proceed.--A motion in the 
                Senate to proceed to the consideration of an 
                approval resolution shall be privileged and not 
                debatable. An amendment to the motion shall not 
                be in order, not shall it be in order to move 
                to reconsider the vote by which the motion is 
                agreed to or disagreed to.
                    (B) Debate on resolution.--Debate in the 
                Senate on an approval resolution, and appeals 
                in connection therewith, shall be limited to 
                not more than 10 hours, which shall be equally 
                divided between, and controlled by, the 
                Majority Leader and the Minority Leader, or 
                their designees.
                    (C) Debate on motions and appeals.--Debate 
                in the Senate on any debatable motion or appeal 
                in connection with an approval resolution shall 
                be limited to not more than 1 hour, which shall 
                be equally divided between, and controlled by, 
                the mover and the manager of the resolution, 
                except that in the event the manager of the 
                resolution is in favor of any such motion or 
                appeal, the time in opposition thereto, shall 
                be controlled by the Minority Leader or 
                designee. Such leaders, or either of them, may, 
                from time under their control on the passage of 
                an approval resolution, allot additional time 
                to any Senator during the consideration of any 
                debatable motion or appeal.
                    (D) Limit on debate.--A motion in the 
                Senate to further limit debate is not 
                debatable. A motion to recommit an approval 
                resolution is not in order.
    (c) Default Standards.--
            (1) In general.--If the standards proposed under 
        subsection (a)(1)(A) are not approved pursuant to the 
        procedures described in subsection (b), then not later 
        than 1 year after rejection by a vote of either House 
        of Congress, domestic commercial airline passengers 
        seeking to board an aircraft shall present, for 
        identification purposes--
                    (A) a valid, unexpired passport;
                    (B) domestically issued documents that the 
                Secretary of Homeland Security designates as 
                reliable for identification purposes;
                    (C) any document issued by the Attorney 
                General or the Secretary of Homeland Security 
                under the authority of 1 of the immigration 
                laws (as defined under section 101(a)(17) of 
                the Immigration and Nationality Act (8 U.S.C. 
                1101(a)(17)); or
                    (D) a document issued by the country of 
                nationality of any alien not required to 
                possess a passport for admission to the United 
                States that the Secretary designates as 
                reliable for identifications purposes
            (2) Exception.--The documentary requirements 
        described in paragraph (1)--
                    (A) shall not apply to individuals below 
                the age of 17, or such other age as determined 
                by the Secretary of Homeland Security;
                    (B) may be waived by the Secretary of 
                Homeland Security in the case of an unforeseen 
                medical emergency.
    (d) Recommendation to Congress.--Not later than 1 year 
after the date of enactment of this Act, the Secretary of 
Homeland Security shall recommend to Congress--
            (1) categories of Federal facilities that the 
        Secretary determines to be at risk for terrorist attack 
        and requiring minimum identification standards for 
        access to such facilities; and
            (2) appropriate minimum identification standards to 
        gain access to those facilities.

                   Subtitle C--National Preparedness

SEC. 7301. THE INCIDENT COMMAND SYSTEM.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) The attacks on September 11, 2001, demonstrated 
        that even the most robust emergency response 
        capabilities can be overwhelmed if an attack is large 
        enough.
            (2) Teamwork, collaboration, and cooperation at an 
        incident site are critical to a successful response to 
        a terrorist attack.
            (3) Key decisionmakers who are represented at the 
        incident command level help to ensure an effective 
        response, the efficient use of resources, and responder 
        safety.
            (4) The incident command system also enables 
        emergency managers and first responders to manage, 
        generate, receive, evaluate, share, and use 
        information.
            (5) Regular joint training at all levels is 
        essential to ensuring close coordination during an 
        actual incident.
            (6) In Homeland Security Presidential Directive 5, 
        the President directed the Secretary of Homeland 
        Security to develop an incident command system, to be 
        known as the National Incident Management System 
        (NIMS), and directed all Federal agencies to make the 
        adoption of NIMS a condition for the receipt of Federal 
        emergency preparedness assistance by States, 
        territories, tribes, and local governments beginning in 
        fiscal year 2005.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States needs to implement the 
        recommendations of the National Commission on Terrorist 
        Attacks Upon the United States by adopting a unified 
        incident command system and significantly enhancing 
        communications connectivity between and among all 
        levels of government agencies, emergency response 
        providers (as defined in section 2 of the Homeland 
        Security Act of 2002 (6 U.S.C. 101), and other 
        organizations with emergency response capabilities;
            (2) the unified incident command system should 
        enable emergency managers and first responders to 
        manage, generate, receive, evaluate, share, and use 
        information in the event of a terrorist attack or a 
        significant national disaster;
            (3) emergency response agencies nationwide should 
        adopt the Incident Command System known as NIMS;
            (4) when multiple agencies or multiple 
        jurisdictions are involved, they should follow a 
        unified command system based on NIMS;
            (5) the regular use of, and training in, NIMS by 
        States and, to the extent practicable, territories, 
        tribes, and local governments, should be a condition 
        for receiving Federal preparedness assistance; and
            (6) the Secretary of Homeland Security should 
        require, as a further condition of receiving homeland 
        security preparedness funds from the Office of State 
        and Local Government Coordination and Preparedness, 
        that grant applicants document measures taken to fully 
        and aggressively implement the Incident Command System 
        and unified command procedures.

SEC. 7302. NATIONAL CAPITAL REGION MUTUAL AID.

    (a) Definitions.--In this section:
            (1) Authorized representative of the federal 
        government.--The term ``authorized representative of 
        the Federal Government'' means any individual or 
        individuals designated by the President with respect to 
        the executive branch, the Chief Justice with respect to 
        the Federal judiciary, or the President of the Senate 
        and Speaker of the House of Representatives with 
        respect to Congress, or their designees, to request 
        assistance under a mutual aid agreement for an 
        emergency or public service event.
            (2) Chief operating officer.--The term ``chief 
        operating officer'' means the official designated by 
        law to declare an emergency in and for the locality of 
        that chief operating officer.
            (3) Emergency.--The term ``emergency'' means a 
        major disaster or emergency declared by the President, 
        or a state of emergency declared by the mayor of the 
        District of Columbia, the Governor of the State of 
        Maryland or the Commonwealth of Virginia, or the 
        declaration of a local emergency by the chief operating 
        officer of a locality, or their designees, that 
        triggers mutual aid under the terms of a mutual aid 
        agreement.
            (4) Employee.--The term ``employee'' means the 
        employees of the party, including its agents or 
        authorized volunteers, who are committed in a mutual 
        aid agreement to prepare for or who respond to an 
        emergency or public service event.
            (5) Locality.--The term ``locality'' means a 
        county, city, or town within the State of Maryland or 
        the Commonwealth of Virginia and within the National 
        Capital Region.
            (6) Mutual aid agreement.--The term ``mutual aid 
        agreement'' means an agreement, authorized under 
        subsection (b), for the provision of police, fire, 
        rescue and other public safety and health or medical 
        services to any party to the agreement during a public 
        service event, an emergency, or pre-planned training 
        event.
            (7) National capital region or region.--The term 
        ``National Capital Region'' or ``Region'' means the 
        area defined under section 2674(f)(2) of title 10, 
        United States Code, and those counties with a border 
        abutting that area and any municipalities therein.
            (8) Party.--The term ``party'' means the State of 
        Maryland, the Commonwealth of Virginia, the District of 
        Columbia, and any of the localities duly executing a 
        Mutual Aid Agreement under this section.
            (9) Public service event.--The term ``public 
        service event''--
                    (A) means any undeclared emergency, 
                incident or situation in preparation for or 
                response to which the mayor of the District of 
                Columbia, an authorized representative of the 
                Federal Government, the Governor of the State 
                of Maryland, the Governor of the Commonwealth 
                of Virginia, or the chief operating officer of 
                a locality in the National Capital Region, or 
                their designees, requests or provides 
                assistance under a Mutual Aid Agreement within 
                the National Capital Region; and
                    (B) includes Presidential inaugurations, 
                public gatherings, demonstrations and protests, 
                and law enforcement, fire, rescue, emergency 
                health and medical services, transportation, 
                communications, public works and engineering, 
                mass care, and other support that require human 
                resources, equipment, facilities or services 
                supplemental to or greater than the requesting 
                jurisdiction can provide.
            (10) State.--The term ``State'' means the State of 
        Maryland, the Commonwealth of Virginia, and the 
        District of Columbia.
            (11) Training.--The term ``training'' means 
        emergency and public service event-related exercises, 
        testing, or other activities using equipment and 
        personnel to simulate performance of any aspect of the 
        giving or receiving of aid by National Capital Region 
        jurisdictions during emergencies or public service 
        events, such actions occurring outside actual emergency 
        or public service event periods.
    (b) Mutual Aid Authorized.--
            (1) In general.--The mayor of the District of 
        Columbia, any authorized representative of the Federal 
        Government, the Governor of the State of Maryland, the 
        Governor of the Commonwealth of Virginia, or the chief 
        operating officer of a locality, or their designees, 
        acting within his or her jurisdictional purview, may, 
        in accordance with State law, enter into, request or 
        provide assistance under mutual aid agreements with 
        localities, the Washington Metropolitan Area Transit 
        Authority, the Metropolitan Washington Airports 
        Authority, and any other governmental agency or 
        authority for--
                    (A) law enforcement, fire, rescue, 
                emergency health and medical services, 
                transportation, communications, public works 
                and engineering, mass care, and resource 
                support in an emergency or public service 
                event;
                    (B) preparing for, mitigating, managing, 
                responding to or recovering from any emergency 
                or public service event; and
                    (C) training for any of the activities 
                described under subparagraphs (A) and (B).
            (2) Facilitating localities.--The State of Maryland 
        and the Commonwealth of Virginia are encouraged to 
        facilitate the ability of localities to enter into 
        interstate mutual aid agreements in the National 
        Capital Region under this section.
            (3) Application and effect.--This section--
                    (A) does not apply to law enforcement 
                security operations at special events of 
                national significance under section 3056(e) of 
                title 18, United States Code, or other law 
                enforcement functions of the United States 
                Secret Service;
                    (B) does not diminish any authorities, 
                express or implied, of Federal agencies to 
                enter into mutual aid agreements in furtherance 
                of their Federal missions; and
                    (C) does not--
                            (i) preclude any party from 
                        entering into supplementary Mutual Aid 
                        Agreements with fewer than all the 
                        parties, or with another party; or
                            (ii) affect any other agreement in 
                        effect before the date of enactment of 
                        this Act among the States and 
                        localities, including the Emergency 
                        Management Assistance Compact.
            (4) Rights described.--Other than as described in 
        this section, the rights and responsibilities of the 
        parties to a mutual aid agreement entered into under 
        this section shall be as described in the mutual aid 
        agreement.
    (c) District of Columbia.--
            (1) In general.--The District of Columbia may 
        purchase liability and indemnification insurance or 
        become self insured against claims arising under a 
        mutual aid agreement authorized under this section.
            (2) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as may be 
        necessary to carry out paragraph (1).
    (d) Liability and Actions at Law.--
            (1) In general.--Any responding party or its 
        officers or employees rendering aid or failing to 
        render aid to the District of Columbia, the Federal 
        Government, the State of Maryland, the Commonwealth of 
        Virginia, or a locality, under a mutual aid agreement 
        authorized under this section, and any party or its 
        officers or employees engaged in training activities 
        with another party under such a mutual aid agreement, 
        shall be liable on account of any act or omission of 
        its officers or employees while so engaged or on 
        account of the maintenance or use of any related 
        equipment, facilities, or supplies, but only to the 
        extent permitted under the laws and procedures of the 
        State of the party rendering aid.
            (2) Actions.--Any action brought against a party or 
        its officers or employees on account of an act or 
        omission in the rendering of aid to the District of 
        Columbia, the Federal Government, the State of 
        Maryland, the Commonwealth of Virginia, ora locality, 
or failure to render such aid or on account of the maintenance or use 
of any related equipment, facilities, or supplies may be brought only 
under the laws and procedures of the State of the party rendering aid 
and only in the Federal or State courts located therein. Actions 
against the United States under this section may be brought only in 
Federal courts.
            (3) Immunities.--This section shall not abrogate 
        any other immunities from liability that any party has 
        under any other Federal or State law.
    (e) Workers Compensation.--
            (1) Compensation.--Each party shall provide for the 
        payment of compensation and death benefits to injured 
        members of the emergency forces of that party and 
        representatives of deceased members of such forces if 
        such members sustain injuries or are killed while 
        rendering aid to the District of Columbia, the Federal 
        Government, the State of Maryland, the Commonwealth of 
        Virginia, or a locality, under a mutual aid agreement, 
        or engaged in training activities under a mutual aid 
        agreement, in the same manner and on the same terms as 
        if the injury or death were sustained within their own 
        jurisdiction.
            (2) Other state law.--No party shall be liable 
        under the law of any State other than its own for 
        providing for the payment of compensation and death 
        benefits to injured members of the emergency forces of 
        that party and representatives of deceased members of 
        such forces if such members sustain injuries or are 
        killed while rendering aid to the District of Columbia, 
        the Federal Government, the State of Maryland, the 
        Commonwealth of Virginia, or a locality, under a mutual 
        aid agreement or engaged in training activities under a 
        mutual aid agreement.
    (f) Licenses and Permits.--If any person holds a license, 
certificate, or other permit issued by any responding party 
evidencing the meeting of qualifications for professional, 
mechanical, or other skills and assistance is requested by a 
receiving jurisdiction, such person will be deemed licensed, 
certified, or permitted by the receiving jurisdiction to render 
aid involving such skill to meet a public service event, 
emergency or training for any such events.

SEC. 7303. ENHANCEMENT OF PUBLIC SAFETY COMMUNICATIONS 
                    INTEROPERABILITY.

    (a) Coordination of Public Safety Interoperable 
Communications Programs.--
            (1) Program.--The Secretary of Homeland Security, 
        in consultation with the Secretary of Commerce and the 
        Chairman of the Federal Communications Commission, 
        shall establish a program to enhance public safety 
        interoperable communications at all levels of 
        government. Such program shall--
                    (A) establish a comprehensive national 
                approach to achieving public safety 
                interoperable communications;
                    (B) coordinate with other Federal agencies 
                in carrying out subparagraph (A);
                    (C) develop, in consultation with other 
                appropriate Federal agencies and State and 
                local authorities, appropriate minimum 
                capabilities for communications 
                interoperability for Federal, State, and local 
                public safety agencies;
                    (D) accelerate, in consultation with other 
                Federal agencies, including the National 
                Institute of Standards and Technology, the 
                private sector, and nationally recognized 
                standards organizations as appropriate, the 
                development of national voluntary consensus 
                standards for public safety interoperable 
                communications, recognizing--
                            (i) the value, life cycle, and 
                        technical capabilities of existing 
                        communications infrastructure;
                            (ii) the need for cross-border 
                        interoperability between States and 
                        nations;
                            (iii) the unique needs of small, 
                        rural communities; and
                            (iv) the interoperability needs for 
                        daily operations and catastrophic 
                        events;
                    (E) encourage the development and 
                implementation of flexible and open 
                architectures incorporating, where possible, 
                technologies that currently are commercially 
                available, with appropriate levels of security, 
                for short-term and long-term solutions to 
                public safety communications interoperability;
                    (F) assist other Federal agencies in 
                identifying priorities for research, 
                development, and testing and evaluation with 
                regard to public safety interoperable 
                communications;
                    (G) identify priorities within the 
                Department of Homeland Security for research, 
                development, and testing and evaluation with 
                regard to public safety interoperable 
                communications;
                    (H) establish coordinated guidance for 
                Federal grant programs for public safety 
                interoperable communications;
                    (I) provide technical assistance to State 
                and local public safety agencies regarding 
                planning, acquisition strategies, 
                interoperability architectures, training, and 
                other functions necessary to achieve public 
                safety communications interoperability;
                    (J) develop and disseminate best practices 
                to improve public safety communications 
                interoperability; and
                    (K) develop appropriate performance 
                measures and milestones to systematically 
                measure the Nation's progress toward achieving 
                public safety communications interoperability, 
                including the development of national voluntary 
                consensus standards.
            (2) Office for interoperability and 
        compatibility.--
                    (A) Establishment of office.--The Secretary 
                may establish an Office for Interoperability 
                and Compatibility within the Directorate of 
                Science and Technology to carry out this 
                subsection.
                    (B) Functions.--If the Secretary 
                establishes such office, the Secretary shall, 
                through such office--
                            (i) carry out Department of 
                        Homeland Security responsibilities and 
                        authorities relating to the SAFECOM 
                        Program; and
                            (ii) carry out section 510 of the 
                        Homeland Security Act of 2002, as added 
                        by subsection (d).
            (3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry 
        out this subsection--
                    (A) $22,105,000 for fiscal year 2005;
                    (B) $22,768,000 for fiscal year 2006;
                    (C) $23,451,000 for fiscal year 2007;
                    (D) $24,155,000 for fiscal year 2008; and
                    (E) $24,879,000 for fiscal year 2009.
    (b) Report.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall report to the 
Congress on Department of Homeland Security plans for 
accelerating the development of national voluntary consensus 
standards for public safety interoperable communications, a 
schedule of milestones for such development, and achievements 
of such development.
    (c) International Interoperability.--Not later than 18 
months after the date of enactment of this Act, the President 
shall establish a mechanism for coordinating cross-border 
interoperability issues between--
            (1) the United States and Canada; and
            (2) the United States and Mexico.
    (d) High Risk Area Communications Capabilities.--Title V of 
the Homeland Security Act of 2002 (6 U.S.C. 311 et seq.) is 
amended by adding at the end the following:

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

    ``(a) In General.--The Secretary, in consultation with the 
Federal Communications Commission and the Secretary of Defense, 
and with appropriate governors, mayors, and other State and 
local government officials, shall provide technical guidance, 
training, and other assistance, as appropriate, to support the 
rapid establishment of consistent, secure, and effective 
interoperable communications capabilities in the event of an 
emergency in urban and other areas determined by the Secretary 
to be at consistently high levels of risk from terrorist 
attack.
    ``(b) Minimum Capabilities.--The interoperable 
communications capabilities established under subsection (a) 
shall ensure the ability of all levels of government agencies, 
emergency response providers (as defined in section 2 of the 
Homeland Security Act of 2002 (6 U.S.C. 101)), and other 
organizations with emergency response capabilities--
            ``(1) to communicate with each other in the event 
        of an emergency; and
            ``(2) to have appropriate and timely access to the 
        Information Sharing Environment described in section 
        1016 of the National Security Intelligence Reform Act 
        of 2004.''.
    (e) Multiyear Interoperability Grants.--
            (1) Multiyear commitments.--In awarding grants to 
        any State, region, local government, or Indian tribe 
        for the purposes of enhancing interoperable 
        communications capabilities for emergency response 
        providers, the Secretary may commit to obligate Federal 
        assistance beyond the current fiscal year, subject to 
        the limitations and restrictions in this subsection.
            (2) Restrictions.--
                    (A) Time limit.--No multiyear 
                interoperability commitment may exceed 3 years 
                in duration.
                    (B) Amount of committed funds.--The total 
                amount of assistance the Secretary has 
                committed to obligate for any future fiscal 
                year under paragraph (1) may not exceed 
                $150,000,000.
            (3) Letters of intent.--
                    (A) Issuance.--Pursuant to paragraph (1), 
                the Secretary may issue a letter of intent to 
                an applicant committing to obligate from future 
                budget authority an amount, not more than the 
                Federal Government's share of the project's 
                cost, for an interoperability communications 
                project (including interest costs and costs of 
                formulating the project).
                    (B) Schedule.--A letter of intent under 
                this paragraph shall establish a schedule under 
                which the Secretary will reimburse the 
                applicant for the Federal Government's share of 
                the project's costs, as amounts become 
                available, if the applicant, after the 
                Secretary issues the letter, carries out the 
                project before receiving amounts under a grant 
                issued by the Secretary.
                    (C) Notice to secretary.--An applicant that 
                is issued a letter of intent under this 
                subsection shall notify the Secretary of the 
                applicant's intent to carry out a project 
                pursuant to the letter before the project 
                begins.
                    (D) Notice to congress.--The Secretary 
                shall transmit a written notification to the 
                Congress no later than 3 days before the 
                issuance of a letter of intent under this 
                section.
                    (E) Limitations.--A letter of intent issued 
                under this section is not an obligation of the 
                Government under section 1501 of title 31, 
                United States Code, and is not deemed to be an 
                administrative commitment for financing. An 
                obligation or administrative commitment may be 
                made only as amounts are provided in 
                authorization and appropriations laws.
                    (F) Statutory construction.--Nothing in 
                this subsection shall be construed--
                            (i) to prohibit the obligation of 
                        amounts pursuant to a letter of intent 
                        under this subsection in the same 
                        fiscal year as the letter of intent is 
                        issued; or
                            (ii) to apply to, or replace, 
                        Federal assistance intended for 
                        interoperable communications that is 
                        not provided pursuant to a commitment 
                        under this subsection.
    (f) Interoperable Communications Plans.--Any applicant 
requesting funding assistance from the Secretary for 
interoperable communications for emergency response providers 
shall submit an Interoperable Communications Plan to the 
Secretary for approval. Such a plan shall--
            (1) describe the current state of communications 
        interoperability in the applicable jurisdictions among 
        Federal, State, and local emergency response providers 
        and other relevant private resources;
            (2) describe the available and planned use of 
        public safety frequency spectrum and resources for 
        interoperable communications within such jurisdictions;
            (3) describe how the planned use of spectrum and 
        resources for interoperable communications is 
        compatible with surrounding capabilities and 
        interoperable communications plans of Federal, State, 
        and local governmental entities, military 
        installations, foreign governments, critical 
        infrastructure, and other relevant entities;
            (4) include a 5-year plan for the dedication of 
        Federal, State, and local government and private 
        resources to achieve a consistent, secure, and 
        effective interoperable communications system, 
        including planning, system design and engineering, 
        testing and technology development, procurement and 
        installation, training, and operations and maintenance; 
        and
            (5) describe how such 5-year plan meets or exceeds 
        any applicable standards and grant requirements 
        established by the Secretary.
    (g) Definitions.--In this section:
            (1) Interoperable communications.--The term 
        ``interoperable communications'' means the ability of 
        emergency response providers and relevant Federal, 
        State, and local government agencies to communicate 
        with each other as necessary, through a dedicated 
        public safety network utilizing information technology 
        systems and radio communications systems, and to 
        exchange voice, data, or video with one another on 
        demand, in real time, as necessary.
            (2) Emergency response providers.--The term 
        ``emergency response providers'' has the meaning that 
        term has under section 2 of the Homeland Security Act 
        of 2002 (6 U.S.C. 101).
    (h) Clarification of Responsibility for Interoperable 
Communications.--
            (1) Under secretary for emergency preparedness and 
        response.--Section 502(7) of the Homeland Security Act 
        of 2002 (6 U.S.C. 312(7)) is amended--
                    (A) by striking ``developing comprehensive 
                programs for developing interoperative 
                communications technology, and''; and
                    (B) by striking ``such'' and inserting 
                ``interoperable communications''.
            (2) Office for domestic preparedness.--Section 
        430(c) of such Act (6 U.S.C. 238(c)) is amended--
                    (A) in paragraph (7) by striking ``and'' 
                after the semicolon;
                    (B) in paragraph (8) by striking the period 
                and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(9) helping to ensure the acquisition of 
        interoperable communication technology by State and 
        local governments and emergency response providers.''.
    (i) Sense of Congress Regarding Interoperable 
Communications.--
            (1) Finding.--The Congress finds that--
                    (A) many first responders working in the 
                same jurisdiction or in different jurisdictions 
                cannot effectively and efficiently communicate 
                with one another; and
                    (B) their inability to do so threatens the 
                public's safety and may result in unnecessary 
                loss of lives and property.
            (2) Sense of congress.--It is the sense of Congress 
        that interoperable emergency communications systems and 
        radios should continue to be deployed as soon as 
        practicable for use by the first responder community, 
        and that upgraded and new digital communications 
        systems and new digital radios must meet prevailing 
        national, voluntary consensus standards for 
        interoperability.

SEC. 7304. REGIONAL MODEL STRATEGIC PLAN PILOT PROJECTS.

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

SEC. 7305. PRIVATE SECTOR PREPAREDNESS.

    (a) Findings.--Consistent with the report of the National 
Commission on Terrorist Attacks Upon the United States, 
Congress makes the following findings:
            (1) Private sector organizations own 85 percent of 
        the Nation's critical infrastructure and employ the 
        vast majority of the Nation's workers.
            (2) Preparedness in the private sector and public 
        sector for rescue, restart and recovery of operations 
        should include, as appropriate--
                    (A) a plan for evacuation;
                    (B) adequate communications capabilities; 
                and
                    (C) a plan for continuity of operations.
            (3) The American National Standards Institute 
        recommends a voluntary national preparedness standard 
        for the private sector based on the existing American 
        National Standard on Disaster/Emergency Management and 
        Business Continuity Programs (NFPA 1600), with 
        appropriate modifications. This standard establishes a 
        common set of criteria and terminology for 
        preparedness, disaster management, emergency 
        management, and business continuity programs.
            (4) The mandate of the Department of Homeland 
        Security extends to working with the private sector, as 
        well as government entities.
    (b) Sense of Congress on Private Sector Preparedness.--It 
is the sense of Congress that the Secretary of Homeland 
Security should promote, where appropriate, the adoption of 
voluntary national preparedness standards such as the private 
sector preparedness standard developed by the American National 
Standards Institute and based on the National Fire Protection 
Association 1600 Standard on Disaster/Emergency Management and 
Business Continuity Programs.

SEC. 7306. CRITICAL INFRASTRUCTURE AND READINESS ASSESSMENTS.

    (a) Findings.--Congress makes the following findings:
            (1) Under section 201 of the Homeland Security Act 
        of 2002 (6 U.S.C 121), the Department of Homeland 
        Security, through the Under Secretary for Information 
        Analysis and Infrastructure Protection, has the 
        responsibility--
                    (A) to carry out comprehensive assessments 
                of the vulnerabilities of the key resources and 
                critical infrastructure of the United States, 
                including the performance of risk assessments 
                to determine the risks posed by particular 
                types of terrorist attacks within the United 
                States;
                    (B) to identify priorities for protective 
                and supportive measures; and
                    (C) to develop a comprehensive national 
                plan for securing the key resources and 
                critical infrastructure of the United States.
            (2) Under Homeland Security Presidential Directive 
        7, issued on December 17, 2003, the Secretary of 
        Homeland Security was given 1 year to develop a 
        comprehensive plan to identify, prioritize, and 
        coordinate the protection of critical infrastructure 
        and key resources.
            (3) The report of the National Commission on 
        Terrorist Attacks Upon the United States recommended 
        that the Secretary of Homeland Security should--
                    (A) identify those elements of the United 
                States' transportation, energy, communications, 
                financial, and other institutions that need to 
                be protected;
                    (B) develop plans to protect that 
                infrastructure; and
                    (C) exercise mechanisms to enhance 
                preparedness.
    (b) Reports on Risk Assessment and Readiness.--Not later 
than 180 days after the date of enactment of this Act, and in 
conjunction with the reporting requirements of Public Law 108-
330, the Secretary of Homeland Security shall submit a report 
to Congress on--
            (1) the Department of Homeland Security's progress 
        in completing vulnerability and risk assessments of the 
        Nation's critical infrastructure;
            (2) the adequacy of the Government's plans to 
        protect such infrastructure; and
            (3) the readiness of the Government to respond to 
        threats against the United States.

SEC. 7307. NORTHERN COMMAND AND DEFENSE OF THE UNITED STATES HOMELAND.

    It is the sense of Congress that the Secretary of Defense 
should regularly assess the adequacy of the plans and 
strategies of the United States Northern Command with a view to 
ensuring that the United States Northern Command is prepared to 
respond effectively to all military and paramilitary threats 
within the United States, should it be called upon to do so by 
the President.

SEC. 7308. EFFECTIVE DATE.

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

                     Subtitle D--Homeland Security

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

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

SEC. 7402. COORDINATION OF INDUSTRY EFFORTS.

    Section 102(f) of the Homeland Security Act of 2002 (Public 
Law 107-296; 6 U.S.C. 112(f)) is amended--
            (1) in paragraph (6), by striking ``and'' at the 
        end;
            (2) in paragraph (7), by striking the period at the 
        end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(8) coordinating industry efforts, with respect 
        to functions of the Department of Homeland Security, to 
        identify private sector resources and capabilities that 
        could be effective in supplementing Federal, State, and 
        local government agency efforts to prevent or respond 
        to a terrorist attack;
            ``(9) coordinating with the Directorate of Border 
        and Transportation Security and the Assistant Secretary 
        for Trade Development of the Department of Commerce on 
        issues related to the travel and tourism industries; 
        and
            ``(10) consulting with the Office of State and 
        Local Government Coordination and Preparedness on all 
        matters of concern to the private sector, including the 
        tourism industry.''.

SEC. 7403. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION SYSTEM.

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

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

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

SEC. 7405. REQUIRED COORDINATION.

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

SEC. 7406. EMERGENCY PREPAREDNESS COMPACTS.

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

SEC. 7407. RESPONSIBILITIES OF COUNTERNARCOTICS OFFICE.

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

``SEC. 878. OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

    ``(a) Office.--There is established in the Department an 
Office of Counternarcotics Enforcement, which shall be headed 
by a Director appointed by the President, by and with the 
advice and consent of the Senate.
    ``(b) Assignment of Personnel.--
            ``(1) In general.--The Secretary shall assign 
        permanent staff to the Office, consistent with 
        effective management of Department resources.
            ``(2) Liaisons.--The Secretary shall designate 
        senior employees from each appropriate subdivision of 
        the Department that has significant counternarcotics 
        responsibilities to act as a liaison between that 
        subdivision and the Office of Counternarcotics 
        Enforcement.
    ``(c) Limitation on Concurrent Employment.--Except as 
provided in subsection (d), the Director of the Office of 
Counternarcotics Enforcement shall not be employed by, assigned 
to, or serve as the head of, any other branch of the Federal 
Government, any State or local government, or any subdivision 
of the Department other than the Office of Counternarcotics 
Enforcement.
    ``(d) Eligibility To Serve as the United States 
Interdiction Coordinator.--The Director of the Office of 
Counternarcotics Enforcement may be appointed as the United 
States Interdiction Coordinator by the Director of the Office 
of National Drug Control Policy, and shall be the only person 
at the Department eligible to be so appointed.
    ``(e) Responsibilities.--The Secretary shall direct the 
Director of the Office of Counternarcotics Enforcement--
            ``(1) to coordinate policy and operations within 
        the Department, between the Department and other 
        Federal departments and agencies, and between the 
        Department and State and local agencies with respect to 
        stopping the entry of illegal drugs into the United 
        States;
            ``(2) to ensure the adequacy of resources within 
        the Department for stopping the entry of illegal drugs 
        into the United States;
            ``(3) to recommend the appropriate financial and 
        personnel resources necessary to help the Department 
        better fulfill its responsibility to stop the entry of 
        illegal drugs into the United States;
            ``(4) within the Joint Terrorism Task Force 
        construct to track and sever connections between 
        illegal drug trafficking and terrorism; and
            ``(5) to be a representative of the Department on 
        all task forces, committees, or other entities whose 
        purpose is to coordinate the counternarcotics 
        enforcement activities of the Department and other 
        Federal, State or local agencies.
    ``(f) Savings Clause.--Nothing in this section shall be 
construed to authorize direct control of the operations 
conducted by the Directorate of Border and Transportation 
Security, the Coast Guard, or joint terrorism task forces.
    ``(g) Reports to Congress.--
            ``(1) Annual budget review.--The Director of the 
        Office of Counternarcotics Enforcement shall, not later 
        than 30 days after the submission by the President to 
        Congress of any request for expenditures for the 
        Department, submit to the Committees on Appropriations 
        and the authorizing committees of jurisdiction of the 
        House of Representatives and the Senate a review and 
        evaluation of such request. The review and evaluation 
        shall--
                    ``(A) identify any request or subpart of 
                any request that affects or may affect the 
                counternarcotics activities of the Department 
                or any of its subdivisions, or that affects the 
                ability of the Department or any subdivision of 
                the Department to meet its responsibility to 
                stop the entry of illegal drugs into the United 
                States;
                    ``(B) describe with particularity how such 
                requested funds would be or could be expended 
                in furtherance of counternarcotics activities; 
                and
                    ``(C) compare such requests with requests 
                for expenditures and amounts appropriated by 
                Congress in the previous fiscal year.
            ``(2) Evaluation of counternarcotics activities.--
        The Director of the Office of Counternarcotics 
        Enforcement shall, not later than February 1 of each 
        year, submit to the Committees on Appropriations and 
        the authorizing committees of jurisdiction of the House 
        of Representatives and the Senate a review and 
        evaluation of the counternarcotics activities of the 
        Department for the previous fiscal year. The review and 
        evaluation shall--
                    ``(A) describe the counternarcotics 
                activities of the Department and each 
                subdivision of the Department (whether 
                individually or in cooperation with other 
                subdivisions of the Department, or in 
                cooperation with other branches of the Federal 
                Government or with State or local agencies), 
                including the methods, procedures, and systems 
                (including computer systems) for collecting, 
                analyzing, sharing, and disseminating 
                information concerning narcotics activity 
                within the Department and between the 
                Department and other Federal, State, and local 
                agencies;
                    ``(B) describe the results of those 
                activities, using quantifiable data whenever 
                possible;
                    ``(C) state whether those activities were 
                sufficient to meet the responsibility of the 
                Department to stop the entry of illegal drugs 
                into the United States, including a description 
                of the performance measures of effectiveness 
                that were used in making that determination; 
                and
                    ``(D) recommend, where appropriate, changes 
                to those activities to improve the performance 
                of the Department in meeting its responsibility 
                to stop the entry of illegal drugs into the 
                United States.
            ``(3) Classified or law enforcement sensitive 
        information.--Any content of a review and evaluation 
        described in the reports required in this subsection 
        that involves information classified under criteria 
        established by an Executive order, or whose public 
        disclosure, as determined by the Secretary, would be 
        detrimental to the law enforcement or national security 
        activities of the Department or any other Federal, 
        State, or local agency, shall be presented to Congress 
        separately from the rest of the review and 
        evaluation.''.
    (b) Conforming Amendments.--Section 103(a) of the Homeland 
Security Act of 2002 (6 U.S.C. 113(a)) is amended--
            (1) by redesignating paragraphs (8) and (9) as 
        paragraphs (9) and (10), respectively; and
            (2) by inserting after paragraph (7) the following:
            ``(8) A Director of the Office of Counternarcotics 
        Enforcement.''.
    (c) Authorization of Appropriations.--Of the amounts 
appropriated for the Department of Homeland Security for 
Departmental management and operations for fiscal year 2005, 
there is authorized up to $6,000,000 to carry out section 878 
of the Department of Homeland Security Act of 2002.

SEC. 7408. USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN 
                    EMPLOYEE PERFORMANCE APPRAISALS.

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

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

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

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

                   Subtitle E--Public Safety Spectrum

SEC. 7501. DIGITAL TELEVISION CONVERSION DEADLINE.

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

SEC. 7502. STUDIES ON TELECOMMUNICATIONS CAPABILITIES AND REQUIREMENTS.

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

                  Subtitle F--Presidential Transition

SEC. 7601. PRESIDENTIAL TRANSITION.

    (a) Services Provided President-Elect.--Section 3 of the 
Presidential Transition Act of 1963 (3 U.S.C. 102 note) is 
amended--
            (1) by adding after subsection (a)(8)(A)(iv) the 
        following:
                            ``(v) Activities under this 
                        paragraph shall include the preparation 
                        of a detailed classified, compartmented 
                        summary by the relevant outgoing 
                        executive branch officials of specific 
                        operational threats to national 
                        security; major military or covert 
                        operations; and pending decisions on 
                        possible uses of military force. This 
                        summary shall be provided to the 
                        President-elect as soon as possible 
                        after the date of the general elections 
                        held to determine the electors of 
                        President and Vice President under 
                        section 1 or 2 of title 3, United 
                        States Code.'';
            (2) by redesignating subsection (f) as subsection 
        (g); and
            (3) by adding after subsection (e) the following:
    ``(f)(1) The President-elect should submit to the Federal 
Bureau of Investigation or other appropriate agency and then, 
upon taking effect and designation, to the agency designated by 
the President under section 115(b) of the National Intelligence 
Reform Act of 2004, the names of candidates for high level 
national security positions through the level of undersecretary 
of cabinet departments as soon as possible after the date of 
the general elections held to determine the electors of 
President and Vice President under section 1 or 2 of title 3, 
United States Code.
    ``(2) The responsible agency or agencies shall undertake 
and complete as expeditiously as possible the background 
investigations necessary to provide appropriate security 
clearances to the individuals who are candidates described 
under paragraph (1) before the date of the inauguration of the 
President-elect as President and the inauguration of the Vice-
President-elect as Vice President.''.
    (b) Sense of the Senate Regarding Expedited Consideration 
of National Security Nominees.--It is the sense of the Senate 
that--
            (1) the President-elect should submit the 
        nominations of candidates for high-level national 
        security positions, through the level of undersecretary 
        of cabinet departments, to the Senate by the date of 
        the inauguration of the President-elect as President; 
        and
            (2) for all such national security nominees 
        received by the date of inauguration, the Senate 
        committees to which these nominations are referred 
        should, to the fullest extent possible, complete their 
        consideration of these nominations, and, if such 
        nominations are reported by the committees, the full 
        Senate should vote to confirm or reject these 
        nominations, within 30 days of their submission.
    (c) Security Clearances for Transition Team Members.--
            (1) Definition.--In this section, the term ``major 
        party'' shall have the meaning given under section 
        9002(6) of the Internal Revenue Code of 1986.
            (2) In general.--Each major party candidate for 
        President may submit, before the date of the general 
        election, requests for security clearances for 
        prospective transition team members who will have a 
        need for access to classified information to carry out 
        their responsibilities as members of the President-
        elect's transition team.
            (3) Completion date.--Necessary background 
        investigations and eligibility determinations to permit 
        appropriate prospective transition team members to have 
        access to classified information shall be completed, to 
        the fullest extent practicable, by the day after the 
        date of the general election.
    (d) Effective Date.--Notwithstanding section 351, this 
section and the amendments made by this section shall take 
effect on the date of enactment of this Act.

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

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

    (a) Findings.--Congress makes the following findings:
            (1) The global war on terrorism and cutting off 
        terrorist financing is a policy priority for the United 
        States and its partners, working bilaterally and 
        multilaterally through the United Nations, the United 
        Nations Security Council and its committees, such as 
        the 1267 and 1373 Committees, the Financial Action Task 
        Force (FATF), and various international financial 
        institutions, including the International Monetary Fund 
        (IMF), the International Bank for Reconstruction and 
        Development (IBRD), and the regional multilateral 
        development banks, and other multilateral fora.
            (2) The international financial community has 
        become engaged in the global fight against terrorist 
        financing. The Financial Action Task Force has focused 
        on the new threat posed by terrorist financing to the 
        international financial system, resulting in the 
        establishment of the FATF's Eight Special 
        Recommendations on Terrorist Financing as the 
        international standard on combating terrorist 
        financing. The Group of Seven and the Group of Twenty 
        Finance Ministers are developing action plans to curb 
        the financing of terror. In addition, other economic 
        and regional fora, such as the Asia-Pacific Economic 
        Cooperation (APEC) Forum, and the Western Hemisphere 
        Financial Ministers, have been used to marshal 
        political will and actions in support of combating the 
        financing of terrorism (CFT) standards.
            (3) FATF's Forty Recommendations on Money 
        Laundering and the Eight Special Recommendations on 
        Terrorist Financing are the recognized global standards 
        for fighting money laundering and terrorist financing. 
        The FATF has engaged in an assessment process for 
        jurisdictions based on their compliance with these 
        standards.
            (4) In March 2004, the IMF and IBRD Boards agreed 
        to make permanent a pilot program of collaboration with 
        the FATF to assess global compliance with the FATF 
        Forty Recommendations on Money Laundering and the Eight 
        Special Recommendations on Terrorist Financing. As a 
        result, anti-money laundering (AML) and combating the 
        financing of terrorism (CFT) assessments are now a 
        regular part of their Financial Sector Assessment 
        Program (FSAP) and Offshore Financial Center 
        assessments, which provide for a comprehensive analysis 
        of the strength of a jurisdiction's financial system. 
        These reviews assess potential systemic 
        vulnerabilities, consider sectoral development needs 
        and priorities, and review the state of implementation 
        of and compliance with key financial codes and 
        regulatory standards, among them the AML and CFT 
        standards.
            (5) To date, 70 FSAPs have been conducted, with 
        over 24 of those incorporating AML and CFT assessments. 
        The international financial institutions (IFIs), the 
        FATF, and the FATF-style regional bodies together are 
        expected to assess AML and CFT regimes in up to 40 
        countries or jurisdictions per year. This will help 
        countries and jurisdictions identify deficiencies in 
        their AML and CFT regimes and help focus technical 
        assistance efforts.
            (6) Technical assistance programs from the United 
        States and other nations, coordinated with the 
        Department of State and other departments and agencies, 
        are playing an important role in helping countries and 
        jurisdictions address shortcomings in their AML and CFT 
        regimes and bringing their regimes into conformity with 
        international standards. Training is coordinated within 
        the United States Government, which leverages 
        multilateral organizations and bodies and international 
        financial institutions to internationalize the 
        conveyance of technical assistance.
            (7) In fulfilling its duties in advancing 
        incorporation of AML and CFT standards into the IFIs as 
        part of the IFIs' work on protecting the integrity of 
        the international monetary system, the Department of 
        the Treasury, under the guidance of the Secretary of 
        the Treasury, has effectively brought together all of 
        the key United States Government agencies. In 
        particular, United States Government agencies continue 
        to work together to foster broad support for this 
        important undertaking in various multilateral fora, and 
        United States Government agencies recognize the need 
        for close coordination and communication within our own 
        Government.
    (b) Sense of Congress Regarding Success in Multilateral 
Organizations.--It is the sense of Congress that the Secretary 
of the Treasury should continue to promote the dissemination of 
international AML and CFT standards, and to press for full 
implementation of the FATF 40 + 8 Recommendations by all 
countries in order to curb financial risks and hinder terrorist 
financing around the globe. The efforts of the Secretary in 
this regard should include, where necessary or appropriate, 
multilateral action against countries whose counter-money 
laundering regimes and efforts against the financing of 
terrorism fall below recognized international standards.

SEC. 7702. DEFINITIONS.

    In this subtitle--
            (1) the term ``international financial 
        institutions'' has the same meaning as in section 
        1701(c)(2) of the International Financial Institutions 
        Act;
            (2) the term ``Financial Action Task Force'' means 
        the international policy-making and standard-setting 
        body dedicated to combating money laundering and 
        terrorist financing that was created by the Group of 
        Seven in 1989; and
            (3) the terms ``Interagency Paper on Sound 
        Practices to Strengthen the Resilience of the U.S. 
        Financial System'' and ``Interagency Paper'' mean the 
        interagency paper prepared by the Board of Governors of 
        the Federal Reserve System, the Comptroller of the 
        Currency, and the Securities and Exchange Commission 
        that was announced in the Federal Register on April 8, 
        2003.

SEC. 7703. EXPANDED REPORTING AND TESTIMONY REQUIREMENTS FOR THE 
                    SECRETARY OF THE TREASURY.

    (a) Reporting Requirements.--Section 1503(a) of the 
International Financial Institutions Act (22 U.S.C. 262o-2(a)) 
is amended by adding at the end the following:
            ``(15) Work with the International Monetary Fund 
        to--
                    ``(A) foster strong global anti-money 
                laundering (AML) and combat the financing of 
                terrorism (CFT) regimes;
                    ``(B) ensure that country performance under 
                the Financial Action Task Force anti-money 
                laundering and counterterrorist financing 
                standards is effectively and comprehensively 
                monitored;
                    ``(C) ensure note is taken of AML and CFT 
                issues in Article IV reports, International 
                Monetary Fund programs, and other regular 
                reviews of country progress;
                    ``(D) ensure that effective AML and CFT 
                regimes are considered to be indispensable 
                elements of sound financial systems; and
                    ``(E) emphasize the importance of sound AML 
                and CFT regimes to global growth and 
                development.''.
    (b) Testimony.--Section 1705(b) of the International 
Financial Institutions Act (22 U.S.C. 262r-4(b)) is amended--
            (1) in paragraph (2), by striking ``and'' at the 
        end;
            (2) in paragraph (3), by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) the status of implementation of international 
        anti-money laundering and counterterrorist financing 
        standards by the International Monetary Fund, the 
        multilateral development banks, and other multilateral 
        financial policymaking bodies.''.

SEC. 7704. COORDINATION OF UNITED STATES GOVERNMENT EFFORTS.

    The Secretary of the Treasury, or the designee of the 
Secretary, as the lead United States Government official to the 
Financial Action Task Force (FATF), shall continue to convene 
the interagency United States Government FATF working group. 
This group, which includes representatives from all relevant 
Federal agencies, shall meet at least once a year to advise the 
Secretary on policies to be pursued by the United States 
regarding the development of common international AML and CFT 
standards, to assess the adequacy and implementation of such 
standards, and to recommend to the Secretary improved or new 
standards, as necessary.

              Subtitle H--Emergency Financial Preparedness

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

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

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

    (a) Findings.--Congress finds that the Secretary of the 
Treasury--
            (1) has successfully communicated and coordinated 
        with the private-sector financial services industry 
        about financial infrastructure preparedness and 
        response issues;
            (2) has successfully reached out to State and local 
        governments and regional public-private partnerships, 
        such as ChicagoFIRST, that protect employees and 
        critical infrastructure by enhancing communication and 
        coordinating plans for disaster preparedness and 
        business continuity; and
            (3) has set an example for the Department of 
        Homeland Security and other Federal agency partners, 
        whose active participation is vital to the overall 
        success of the activities described in paragraphs (1) 
        and (2).
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of the Treasury, in consultation with the 
Secretary of Homeland Security, other Federal agency partners, 
and private-sector financial organization partners, should--
            (1) furnish sufficient personnel and technological 
        and financial resources to educate consumers and 
        employees of the financial services industry about 
        domestic counterterrorist financing activities, 
        particularly about--
                    (A) how the public and private sector 
                organizations involved in such activities can 
                combat terrorism while protecting and 
                preserving the lives and civil liberties of 
                consumers and employees of the financial 
                services industry; and
                    (B) how the consumers and employees of the 
                financial services industry can assist the 
                public and private sector organizations 
                involved in such activities; and
            (2) submit annual reports to Congress on efforts to 
        accomplish subparagraphs (A) and (B) of paragraph (1).
    (c) Report on Public-Private Partnerships.--Before the end 
of the 6-month period beginning on the date of enactment of 
this Act, the Secretary of the Treasury shall submit a report 
to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing--
            (1) information on the efforts that the Department 
        of the Treasury has made to encourage the formation of 
        public-private partnerships to protect critical 
        financial infrastructure and the type of support that 
        the Department has provided to such partnerships; and
            (2) recommendations for administrative or 
        legislative action regarding such partnerships, as the 
        Secretary may determine to be appropriate.

SEC. 7803. EMERGENCY SECURITIES RESPONSE ACT OF 2004.

    (a) Short Title.--This section may be cited as the 
``Emergency Securities Response Act of 2004''.
    (b) Extension of Emergency Order Authority of the 
Securities and Exchange Commission.--
            (1) Extension of authority.--Section 12(k)(2) of 
        the Securities Exchange Act of 1934 (15 U.S.C. 
        78l(k)(2)) is amended to read as follows:
            ``(2) Emergency orders.--
                    ``(A) In general.--The Commission, in an 
                emergency, may by order summarily take such 
                action to alter, supplement, suspend, or impose 
                requirements or restrictions with respect to 
                any matter or action subject to regulation by 
                the Commission or a self-regulatory 
                organization under the securities laws, as the 
                Commission determines is necessary in the 
                public interest and for the protection of 
                investors--
                            ``(i) to maintain or restore fair 
                        and orderly securities markets (other 
                        than markets in exempted securities);
                            ``(ii) to ensure prompt, accurate, 
                        and safe clearance and settlement of 
                        transactions in securities (other than 
                        exempted securities); or
                            ``(iii) to reduce, eliminate, or 
                        prevent the substantial disruption by 
                        the emergency of--
                                    ``(I) securities markets 
                                (other than markets in exempted 
                                securities), investment 
                                companies, or any other 
                                significant portion or segment 
                                of such markets; or
                                    ``(II) the transmission or 
                                processing of securities 
                                transactions (other than 
                                transactions in exempted 
                                securities).
                    ``(B) Effective period.--An order of the 
                Commission under this paragraph shall continue 
                in effect for the period specified by the 
                Commission, and may be extended. Except as 
                provided in subparagraph (C), an order of the 
                Commission under this paragraph may not 
                continue in effect for more than 10 business 
                days, including extensions.
                    ``(C) Extension.--An order of the 
                Commission under this paragraph may be extended 
                to continue in effect for more than 10 business 
                days if, at the time of the extension, the 
                Commission finds that the emergency still 
                exists and determines that the continuation of 
                the order beyond 10 business days is necessary 
                in the public interest and for the protection 
                of investors to attain an objective described 
                in clause (i), (ii), or (iii) of subparagraph 
                (A). In no event shall an order of the 
                Commission under this paragraph continue in 
                effect for more than 30 calendar days.
                    ``(D) Security futures.--If the actions 
                described in subparagraph (A) involve a 
                security futures product, the Commission shall 
                consult with and consider the views of the 
                Commodity Futures Trading Commission.
                    ``(E) Exemption.--In exercising its 
                authority under this paragraph, the Commission 
                shall not be required to comply with the 
                provisions of--
                            ``(i) section 19(c); or
                            ``(ii) section 553 of title 5, 
                        United States Code.''.
    (c) Consultation; Definition of Emergency.--Section 
12(k)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 
78l(k)(6)) is amended to read as follows:
            ``(6) Consultation.--Prior to taking any action 
        described in paragraph (1)(B), the Commission shall 
        consult with and consider the views of the Secretary of 
        the Treasury, the Board of Governors of the Federal 
        Reserve System, and the Commodity Futures Trading 
        Commission, unless such consultation is impracticable 
        in light of the emergency.
            ``(7) Definitions.--For purposes of this 
        subsection--
                    ``(A) the term `emergency' means--
                            ``(i) a major market disturbance 
                        characterized by or constituting--
                                    ``(I) sudden and excessive 
                                fluctuations of securities 
                                prices generally, or a 
                                substantial threat thereof, 
                                that threaten fair and orderly 
                                markets; or
                                    ``(II) a substantial 
                                disruption of the safe or 
                                efficient operation of the 
                                national system for clearance 
                                and settlement of transactions 
                                in securities, or a substantial 
                                threat thereof; or
                            ``(ii) a major disturbance that 
                        substantially disrupts, or threatens to 
                        substantially disrupt--
                                    ``(I) the functioning of 
                                securities markets, investment 
                                companies, or any other 
                                significant portion or segment 
                                of the securities markets; or
                                    ``(II) the transmission or 
                                processing of securities 
                                transactions; and
                    ``(B) notwithstanding section 3(a)(47), the 
                term `securities laws' does not include the 
                Public Utility Holding Company Act of 1935.''.
    (d) Parallel Authority of the Secretary of the Treasury 
With Respect to Government Securities.--Section 15C of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-5) is amended by 
adding at the end the following:
    ``(h) Emergency Authority.--The Secretary may, by order, 
take any action with respect to a matter or action subject to 
regulation by the Secretary under this section, or the rules of 
the Secretary under this section, involving a government 
security or a market therein (or significant portion or segment 
of that market), that the Commission may take under section 
12(k)(2) with respect to transactions in securities (other than 
exempted securities) or a market therein (or significant 
portion or segment of that market).''.
    (e) Joint Report on Implementation of Financial System 
Resilience Recommendations.--
            (1) Report required.--Not later than April 30, 
        2006, the Board of Governors of the Federal Reserve 
        System, the Comptroller of the Currency, and the 
        Securities and Exchange Commission shall prepare and 
        submit to the Committee on Financial Services of the 
        House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate a joint report 
        on the efforts of the private sector to implement the 
        Interagency Paper on Sound Practices to Strengthen the 
        Resilience of the U.S. Financial System.
            (2) Contents of report.--The report required by 
        paragraph (1) shall--
                    (A) examine the efforts to date of private 
                sector financial services firms covered by the 
                Interagency Paper to implement enhanced 
                business continuity plans;
                    (B) examine the extent to which the 
                implementation of such business continuity 
                plans has been done in a geographically 
                dispersed manner, including an analysis of the 
                extent to which such firms have located their 
                main and backup facilities in separate 
                electrical networks, in different watersheds, 
                in independent transportation systems, and 
                using separate telecommunications centers, and 
                the cost and technological implications of 
                further dispersal;
                    (C) examine the need to cover a larger 
                range of private sector financial services 
                firms that play significant roles in critical 
                financial markets than those covered by the 
                Interagency Paper; and
                    (D) recommend legislative and regulatory 
                changes that will--
                            (i) expedite the effective 
                        implementation of the Interagency Paper 
                        by all covered financial services 
                        entities; and
                            (ii) optimize the effective 
                        implementation of business continuity 
                        planning by the financial services 
                        industry.
            (3) Confidentiality.--Any information provided to 
        the Board of Governors of the Federal Reserve System, 
        the Comptroller of the Currency, or the Securities and 
        Exchange Commission for the purposes of the preparation 
        and submission of the report required by paragraph (1) 
        shall be treated as privileged and confidential. For 
        purposes of section 552 of title 5, United States Code, 
        this subsection shall be considered a statute described 
        in subsection (b)(3)(B) of that section 552.
            (4) Definition.--As used in this subsection, the 
        terms ``Interagency Paper on Sound Practices to 
        Strengthen the Resilience of the U.S. Financial 
        System'' and ``Interagency Paper'' mean the interagency 
        paper prepared by the Board of Governors of the Federal 
        Reserve System, the Comptroller of the Currency, and 
        the Securities and Exchange Commission that was 
        announced in the Federal Register on April 8, 2003.

SEC. 7804. PRIVATE SECTOR PREPAREDNESS.

    It is the sense of Congress that the insurance industry and 
credit-rating agencies, where relevant, should carefully 
consider a company's compliance with standards for private 
sector disaster and emergency preparedness in assessing 
insurability and creditworthiness, to ensure that private 
sector investment in disaster and emergency preparedness is 
appropriately encouraged.

                       TITLE VIII--OTHER MATTERS

                    Subtitle A--Intelligence Matters

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

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

          Subtitle B--Department of Homeland Security Matters

SEC. 8201. HOMELAND SECURITY GEOSPATIAL INFORMATION.

    (a) Findings.--Congress makes the following findings:
            (1) Geospatial technologies and geospatial data 
        improve government capabilities to detect, plan for, 
        prepare for, and respond to disasters in order to save 
        lives and protect property.
            (2) Geospatial data improves the ability of 
        information technology applications and systems to 
        enhance public security in a cost-effective manner.
            (3) Geospatial information preparedness in the 
        United States, and specifically in the Department of 
        Homeland Security, is insufficient because of--
                    (A) inadequate geospatial data 
                compatibility;
                    (B) insufficient geospatial data sharing; 
                and
                    (C) technology interoperability barriers.
    (b) Homeland Security Geospatial Information.--Section 703 
of the Homeland Security Act of 2002 (6 U.S.C. 343) is 
amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Chief Information''; and
            (2) by adding at the end the following:
    ``(b) Geospatial Information Functions.--
            ``(1) Definitions.--As used in this subsection:
                    ``(A) Geospatial information.--The term 
                `geospatial information' means graphical or 
                digital data depicting natural or manmade 
                physical features, phenomena, or boundaries of 
                the earth and any information related thereto, 
                including surveys, maps, charts, remote sensing 
                data, and images.
                    ``(B) Geospatial technology.--The term 
                `geospatial technology' means any technology 
                utilized by analysts, specialists, surveyors, 
                photogrammetrists, hydrographers, geodesists, 
                cartographers, architects, or engineers for the 
                collection, storage, retrieval, or 
                dissemination of geospatial information, 
                including--
                            ``(i) global satellite surveillance 
                        systems;
                            ``(ii) global position systems;
                            ``(iii) geographic information 
                        systems;
                            ``(iv) mapping equipment;
                            ``(v) geocoding technology; and
                            ``(vi) remote sensing devices.
            ``(2) Office of geospatial management.--
                    ``(A) Establishment.--The Office of 
                Geospatial Management is established within the 
                Office of the Chief Information Officer.
                    ``(B) Geospatial information officer.--
                            ``(i) Appointment.--The Office of 
                        Geospatial Management shall be 
                        administered by the Geospatial 
                        Information Officer, who shall be 
                        appointed by the Secretary and serve 
                        under the direction of the Chief 
                        Information Officer.
                            ``(ii) Functions.--The Geospatial 
                        Information Officer shall assist the 
                        Chief Information Officer in carrying 
                        out all functions under this section 
                        and in coordinating the geospatial 
                        information needs of the Department.
                    ``(C) Coordination of geospatial 
                information.--The Chief Information Officer 
                shall establish and carry out a program to 
                provide for the efficient use of geospatial 
                information, which shall include--
                            ``(i) providing such geospatial 
                        information as may be necessary to 
                        implement the critical infrastructure 
                        protection programs;
                            ``(ii) providing leadership and 
                        coordination in meeting the geospatial 
                        information requirements of those 
                        responsible for planning, prevention, 
                        mitigation, assessment and response to 
                        emergencies, critical infrastructure 
                        protection, and other functions of the 
                        Department; and
                            ``(iii) coordinating with users of 
                        geospatial information within the 
                        Department to assure interoperability 
                        and prevent unnecessary duplication.
                    ``(D) Responsibilities.--In carrying out 
                this subsection, the responsibilities of the 
                Chief Information Officer shall include--
                            ``(i) coordinating the geospatial 
                        information needs and activities of the 
                        Department;
                            ``(ii) implementing standards, as 
                        adopted by the Director of the Office 
                        of Management and Budget under the 
                        processes established under section 216 
                        of the E-Government Act of 2002 (44 
                        U.S.C. 3501 note), to facilitate the 
                        interoperability of geospatial 
                        information pertaining to homeland 
                        security among all users of such 
                        information within--
                                    ``(I) the Department;
                                    ``(II) State and local 
                                government; and
                                    ``(III) the private sector;
                            ``(iii) coordinating with the 
                        Federal Geographic Data Committee and 
                        carrying out the responsibilities of 
                        the Department pursuant to Office of 
                        Management and Budget Circular A-16 and 
                        Executive Order 12906; and
                            ``(iv) making recommendations to 
                        the Secretary and the Executive 
                        Director of the Office for State and 
                        Local Government Coordination and 
                        Preparedness on awarding grants to--
                                    ``(I) fund the creation of 
                                geospatial data; and
                                    ``(II) execute information 
                                sharing agreements regarding 
                                geospatial data with State, 
                                local, and tribal governments.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as may be 
        necessary to carry out this subsection for each fiscal 
        year.''.

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

SEC. 8301. SHORT TITLE.

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

SEC. 8302. MISSION OF DEPARTMENT OF HOMELAND SECURITY.

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

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

    Section 705(a) of the Homeland Security Act of 2002 (6 
U.S.C. 345(a)) is amended--
            (1) by amending the matter preceding paragraph (1) 
        to read as follows:
    ``(a) In General.--The Officer for Civil Rights and Civil 
Liberties, who shall report directly to the Secretary, shall--
'';
            (2) by amending paragraph (1) to read as follows:
            ``(1) review and assess information concerning 
        abuses of civil rights, civil liberties, and profiling 
        on the basis of race, ethnicity, or religion, by 
        employees and officials of the Department;'';
            (3) in paragraph (2), by striking the period at the 
        end and inserting a semicolon; and
            (4) by adding at the end the following:
            ``(3) assist the Secretary, directorates, and 
        offices of the Department to develop, implement, and 
        periodically review Department policies and procedures 
        to ensure that the protection of civil rights and civil 
        liberties is appropriately incorporated into Department 
        programs and activities;
            ``(4) oversee compliance with constitutional, 
        statutory, regulatory, policy, and other requirements 
        relating to the civil rights and civil liberties of 
        individuals affected by the programs and activities of 
        the Department;
            ``(5) coordinate with the Privacy Officer to ensure 
        that--
                    ``(A) programs, policies, and procedures 
                involving civil rights, civil liberties, and 
                privacy considerations are addressed in an 
                integrated and comprehensive manner; and
                    ``(B) Congress receives appropriate reports 
                regarding such programs, policies, and 
                procedures; and
            ``(6) investigate complaints and information 
        indicating possible abuses of civil rights or civil 
        liberties, unless the Inspector General of the 
        Department determines that any such complaint or 
        information should be investigated by the Inspector 
        General.''.

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

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

SEC. 8305. PRIVACY OFFICER.

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

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

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

                       Subtitle D--Other Matters

SEC. 8401. AMENDMENTS TO CLINGER-COHEN ACT PROVISIONS TO ENHANCE AGENCY 
                    PLANNING FOR INFORMATION SECURITY NEEDS.

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

SEC. 8402. ENTERPRISE ARCHITECTURE.

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

SEC. 8403. FINANCIAL DISCLOSURE AND RECORDS.

    (a) Study.--Not later than 90 days after the date of 
enactment of this Act, the Office of Government Ethics shall 
submit to Congress a report--
            (1) evaluating the financial disclosure process for 
        employees of the executive branch of Government; and
            (2) making recommendations for improving that 
        process.
    (b) Transmittal of Record Relating to Presidentially 
Appointed Positions to Presidential Candidates.--
            (1) Definition.--In this section, the term ``major 
        party'' has the meaning given that term under section 
        9002(6) of the Internal Revenue Code of 1986.
            (2) Transmittal.--
                    (A) In general.--Not later than 15 days 
                after the date on which a major party nominates 
                a candidate for President, the Office of 
                Personnel Management shall transmit an 
                electronic record to that candidate on 
                Presidentially appointed positions.
                    (B) Other candidates.--After making 
                transmittals under subparagraph (A), the Office 
                of Personnel Management may transmit an 
                electronic record on Presidentially appointed 
                positions to any other candidate for President.
            (3) Content.--The record transmitted under this 
        subsection shall provide--
                    (A) all positions which are appointed by 
                the President, including the title and 
                description of the duties of each position;
                    (B) the name of each person holding a 
                position described under subparagraph (A);
                    (C) any vacancy in the positions described 
                under subparagraph (A), and the period of time 
                any such position has been vacant;
                    (D) the date on which an appointment made 
                after the applicable Presidential election for 
                any position described under subparagraph (A) 
                is necessary to ensure effective operation of 
                the Government; and
                    (E) any other information that the Office 
                of Personnel Management determines is useful in 
                making appointments.
    (c) Reduction of Positions Requiring Appointment With 
Senate Confirmation.--
            (1) Definition.--In this subsection, the term 
        ``agency'' means an Executive agency as defined under 
        section 105 of title 5, United States Code.
            (2) Reduction plan.--
                    (A) In general.--Not later than 180 days 
                after the date of enactment of this Act, the 
                head of each agency shall submit a Presidential 
                appointment reduction plan to--
                            (i) the President;
                            (ii) the Committee on Homeland 
                        Security and Governmental Affairs of 
                        the Senate; and
                            (iii) the Committee on Government 
                        Reform of the House of Representatives.
                    (B) Content.--The plan under this paragraph 
                shall provide for the reduction of--
                            (i) the number of positions within 
                        that agency that require an appointment 
                        by the President, by and with the 
                        advice and consent of the Senate; and
                            (ii) the number of levels of such 
                        positions within that agency.
    (d) Office of Government Ethics Review of Conflict of 
Interest Law.--
            (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Director of the 
        Office of Government Ethics, in consultation with the 
        Attorney General of the United States, shall conduct a 
        comprehensive review of conflict of interest laws 
        relating to executive branch employment and submit a 
        report to--
                    (A) the President;
                    (B) the Committees on Homeland Security and 
                Governmental Affairs and the Judiciary of the 
                Senate;
                    (C) the Committees on Government Reform and 
                the Judiciary of the House of Representatives.
            (2) Contents.--The report under this subsection 
        shall examine sections 203, 205, 207, and 208 of title 
        18, United States Code.

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

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

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

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

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

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

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

                                  
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