[108th Congress Public Law 458]
[From the U.S. Government Printing Office]


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[DOCID: f:publ458.108]


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        INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004

[[Page 118 STAT. 3638]]

Public Law 108-458
108th Congress

                                 An Act


 
     To reform the intelligence community and the intelligence and 
intelligence-related activities of the United States Government, and for 
          other purposes. <<NOTE: Dec. 17, 2004 -  [S. 2845]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Intelligence 
Reform and Terrorism Prevention Act of 2004. 50 USC 401 note.>> 

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.

[[Page 118 STAT. 3639]]

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.

[[Page 118 STAT. 3640]]

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.

[[Page 118 STAT. 3641]]

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.

[[Page 118 STAT. 3642]]

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. 7113. Pilot program to provide grants to American-sponsored schools 
           in predominantly Muslim countries to provide scholarships.
Sec. 7114. International Youth Opportunity Fund.
Sec. 7115. The use of economic policies to combat terrorism.
Sec. 7116. Middle East partnership initiative.
Sec. 7117. Comprehensive coalition strategy for fighting terrorism.
Sec. 7118. Financing of terrorism.
Sec. 7119. Designation of foreign terrorist organizations.
Sec. 7120. Report to Congress.
Sec. 7121. Case-Zablocki Act requirements.
Sec. 7122. 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.

[[Page 118 STAT. 3643]]

                   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 <<NOTE: National Security Intelligence Reform Act of 
2004.>> OF THE INTELLIGENCE COMMUNITY

SEC. 1001. <<NOTE: 50 USC 401 note.>> 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:

[[Page 118 STAT. 3644]]

    ``Sec. 102. <<NOTE: President. Congress. 50 USC 403.>> (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.

    ``Sec. 102A. (a) <<NOTE: 50 USC 403-1.>> 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

[[Page 118 STAT. 3645]]

        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.

[[Page 118 STAT. 3646]]

    ``(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) <<NOTE: Reports. Deadlines.>> 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--

[[Page 118 STAT. 3647]]

                    ``(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. <<NOTE: Reports.>> 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. <<NOTE: Notification.>> 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) <<NOTE: Notice.>> 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

[[Page 118 STAT. 3648]]

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) <<NOTE: Notice.>> 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

[[Page 118 STAT. 3649]]

                    ``(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) <<NOTE: Policies.>> 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.

[[Page 118 STAT. 3650]]

    ``(6) <<NOTE: Requirements.>> 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) <<NOTE: Procedures.>> 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) <<NOTE: President.>> 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) <<NOTE: Deadline. Reports.>> 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) <<NOTE: Procedures.>> implement policies and 
        procedures--

[[Page 118 STAT. 3651]]

                    ``(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) <<NOTE: Guidelines.>> 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

[[Page 118 STAT. 3652]]

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) <<NOTE: Regulations.>> 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.

[[Page 118 STAT. 3653]]

    ``(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).

[[Page 118 STAT. 3654]]

    ``(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) <<NOTE: Reports.>> submit to Congress a 
                report on the results of such review and assessment.

    ``(2) <<NOTE: President.>> 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:

[[Page 118 STAT. 3655]]

            ``(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.

    ``Sec. 103. (a) <<NOTE: Establishment. 50 USC 403-3.>> 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

[[Page 118 STAT. 3656]]

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 <<NOTE: Effective date. ``deputy directors of 
national intelligence>> 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.

    ``Sec. 103A. (a) <<NOTE: President. Congress. 50 USC 403-
3a.>> 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)--

[[Page 118 STAT. 3657]]

            ``(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.

    ``Sec. 103B. (a) <<NOTE: Establishment. 50 USC 403-3b.>> 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) <<NOTE: Requirements.>> 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

[[Page 118 STAT. 3658]]

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.

    ``Sec. 103C. (a) <<NOTE: President. Congress. 50 USC 403-
3c.>> 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.

    ``Sec. 103D. (a) <<NOTE: Government organization. 50 USC 403-
3d.>> 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

[[Page 118 STAT. 3659]]

        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).

    ``Sec. 103E. (a) <<NOTE: Government organization. 50 USC 403-
3e.>> 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) <<NOTE: Government organization.>> 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.

[[Page 118 STAT. 3660]]

    ``(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.

    ``Sec. 103F. (a) <<NOTE: Government organization. 50 USC 403-
3f.>> 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.

    ``Sec. 104. (a) <<NOTE: 50 USC 403-4.>> 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).

    ``Sec. 104A. (a) <<NOTE: President. Congress. 50 USC 403-
4a.>> 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

[[Page 118 STAT. 3661]]

        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) <<NOTE: 50 USC 403-4b note.>> 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) <<NOTE: 50 USC 403-4b.>> 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;

[[Page 118 STAT. 3662]]

            (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 <<NOTE: 50 USC 403-1 note.>> 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

[[Page 118 STAT. 3663]]

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 <<NOTE: 50 USC 403-6.>> 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) <<NOTE: Applicability.>> 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

[[Page 118 STAT. 3664]]

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) <<NOTE: Applicability.>> 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) <<NOTE: Applicability.>> 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. <<NOTE: 6 USC 485.>> 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).

[[Page 118 STAT. 3665]]

            (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) <<NOTE: President.>> 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;

[[Page 118 STAT. 3666]]

                    (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) <<NOTE: Electronic directory.>> 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) <<NOTE: Deadline. President.>> 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) <<NOTE: President.>> 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.

[[Page 118 STAT. 3667]]

            (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) <<NOTE: Deadline. President. Notification.>> 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--

[[Page 118 STAT. 3668]]

                          (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

[[Page 118 STAT. 3669]]

                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;

[[Page 118 STAT. 3670]]

                    (G) the extent to which private sector data, 
                including information from owners and operators of 
                critical infrastructure, is incorporated in the ISE, and 
                the extent to which individuals and entities outside the 
                government are receiving information through the ISE;
                    (H) the measures taken by the Federal government to 
                ensure the accuracy of information in the ISE, in 
                particular the accuracy of information about 
                individuals;
                    (I) an assessment of the privacy and civil liberties 
                protections of the ISE, including actions taken in the 
                preceding year to implement or enforce privacy and civil 
                liberties protections; and
                    (J) an assessment of the security protections used 
                in the ISE.

    (i) Agency Responsibilities.--The head of each department or agency 
that possesses or uses intelligence or terrorism information, operates a 
system in the ISE, or otherwise participates (or expects to participate) 
in the ISE shall--
            (1) ensure full department or agency compliance with 
        information sharing policies, procedures, guidelines, rules, and 
        standards established under subsections (b) and (f);
            (2) ensure the provision of adequate resources for systems 
        and activities supporting operation of and participation in the 
        ISE;
            (3) ensure full department or agency cooperation in the 
        development of the ISE to implement governmentwide information 
        sharing; and
            (4) submit, at the request of the President or the program 
        manager, any reports on the implementation of the requirements 
        of the ISE within such department or agency.

    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2005 and 2006.
SEC. 1017. ALTERNATIVE <<NOTE: 50 USC 403-1 note.>> ANALYSIS OF 
                          INTELLIGENCE BY THE INTELLIGENCE 
                          COMMUNITY.

    (a) <<NOTE: Deadline. Establishment. Guidelines.>> 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 <<NOTE: 50 USC 403 note.>> 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:

[[Page 118 STAT. 3671]]

            (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 <<NOTE: 50 USC 403-1a.>> OF RESPONSIBILITIES 
                          RELATING TO ANALYTIC INTEGRITY.

    (a) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3672]]

        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 <<NOTE: 50 USC 403-1a note. Deadline.>> 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:

    ``Sec. 119. (a) <<NOTE: 50 USC 404o.>> Establishment of Center.--
There is within the Office of the Director of National Intelligence a 
National Counterterrorism Center.

    ``(b) <<NOTE: President. Congress.>> 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.

[[Page 118 STAT. 3673]]

    ``(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

[[Page 118 STAT. 3674]]

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

[[Page 118 STAT. 3675]]

of the disagreement by the Director of National Intelligence to the 
President.
    ``(i) <<NOTE: Establishment.>> 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) <<NOTE: Establishment.>> 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:

    ``Sec. 119A. (a) <<NOTE: Deadline. President. 50 USC 404o-
1.>> Establishment.--Not later than 18 months after the date of the 
enactment of the National Security Intelligence Reform Act of 2004, the 
President shall establish a National Counter Proliferation Center, 
taking into account all appropriate government tools to prevent and halt 
the proliferation of weapons of mass destruction, their delivery 
systems, and related materials and technologies.

    ``(b) Missions and Objectives.--In establishing the National Counter 
Proliferation Center, the President shall address the following missions 
and objectives to prevent and halt the proliferation of weapons of mass 
destruction, their delivery systems, and related materials and 
technologies:
            ``(1) Establishing a primary organization within the United 
        States Government for analyzing and integrating all intelligence 
        possessed or acquired by the United States pertaining to 
        proliferation.
            ``(2) Ensuring that appropriate agencies have full access to 
        and receive all-source intelligence support needed to execute 
        their counter proliferation plans or activities, and perform 
        independent, alternative analyses.
            ``(3) Establishing a central repository on known and 
        suspected proliferation activities, including the goals, 
        strategies, capabilities, networks, and any individuals, groups, 
        or entities engaged in proliferation.

[[Page 118 STAT. 3676]]

            ``(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) <<NOTE: President.>> 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:

    ``Sec. 119B. (a) <<NOTE: 50 USC 404o-2.>> 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

[[Page 118 STAT. 3677]]

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:

    ``Sec. 101A. (a) <<NOTE: 50 USC 402-1.>> Joint Intelligence 
Community Council.--There is a Joint Intelligence 
Community <<NOTE: Establishment.>> 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.

[[Page 118 STAT. 3678]]

            ``(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 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) <<NOTE: Procedures.>> 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 <<NOTE: 50 USC 403-1b.>> 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--

[[Page 118 STAT. 3679]]

            (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) <<NOTE: Deadline. Reports.>> 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. <<NOTE: Notification.>> 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 elements 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:

    ``Sec. 1002. <<NOTE: 50 USC 441g-1.>> 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:

    ``Sec. 1003. (a) <<NOTE: 50 USC 441g-2.>> 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

[[Page 118 STAT. 3680]]

        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

[[Page 118 STAT. 3681]]

        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

[[Page 118 STAT. 3682]]

        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,

[[Page 118 STAT. 3683]]

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) <<NOTE: 50 USC 403-1 note.>> 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. <<NOTE: 50 USC 403-1c.>> 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.

[[Page 118 STAT. 3684]]

    (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 <<NOTE: 5 USC 601 note.>> 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

[[Page 118 STAT. 3685]]

                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;

[[Page 118 STAT. 3686]]

                    (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) <<NOTE: Deadline. Notification.>> 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) <<NOTE: Reports.>> 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) <<NOTE: President.>> In general.--The Board 
                shall be composed of a chairman, a vice chairman, and 
                three additional members appointed by the President.
                    (B) <<NOTE: President. Congress.>> 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.

[[Page 118 STAT. 3687]]

                    (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 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

[[Page 118 STAT. 3688]]

        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.

[[Page 118 STAT. 3689]]

               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)).

[[Page 118 STAT. 3690]]

            (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)).
            (D) Section 1001(c) (50 U.S.C. 441g(c)), the first place it 
        appears.
            (E) Section 1001(d)(1)(B) (50 U.S.C. 441g(d)(1)(B)).
            (F) 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:

    (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'':

[[Page 118 STAT. 3691]]

            (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) <<NOTE: 50 USC 403-4 note.>> 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 <<NOTE: 18 USC app. 9.>> (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) <<NOTE: 50 USC 402a.>> 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 <<NOTE: 50 USC 403-3 
        note.>> (50 U.S.C. 404-3 note) is amended by striking 
        ``Director'' and inserting ``Director of National 
        Intelligence''.

[[Page 118 STAT. 3692]]

            (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

[[Page 118 STAT. 3693]]

(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.

[[Page 118 STAT. 3694]]

                    ``(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.

[[Page 118 STAT. 3695]]

``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:

    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

[[Page 118 STAT. 3696]]

            (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 <<NOTE: 5 USC app. 105.>> (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. <<NOTE: 50 USC 401 note.>> 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.

[[Page 118 STAT. 3697]]

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

SEC. 1091. TRANSFER <<NOTE: 50 USC 401 note.>> 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 <<NOTE: 50 USC 401 note.>> 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 <<NOTE: 50 USC 401 note.>> 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. <<NOTE: President. 50 USC 401 note.>> 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.

[[Page 118 STAT. 3698]]

            (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 <<NOTE: 50 USC 401 note.>> 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. <<NOTE: 50 USC 401 note.>> 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. <<NOTE: 50 USC 401 note.>> 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) <<NOTE: President.>> 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) <<NOTE: Regulations.>> Not later than one year after the date of 
the enactment of this Act, the Director of National Intelligence shall 
prescribe

[[Page 118 STAT. 3699]]

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:

[[Page 118 STAT. 3700]]

    ``(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. <<NOTE: 50 USC 401 note.>> SEVERABILITY.

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

                TITLE II--FEDERAL BUREAU OF INVESTIGATION

SEC. 2001. IMPROVEMENT <<NOTE: 28 USC 532 note.>> 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,

[[Page 118 STAT. 3701]]

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.

[[Page 118 STAT. 3702]]

            (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 <<NOTE: Government organization. 28 USC 532 
                          note.>> 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 <<NOTE: 28 USC 532 note.>> 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--

[[Page 118 STAT. 3703]]

            (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.

[[Page 118 STAT. 3704]]

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 <<NOTE: Applicability. Termination 
                          date.>> 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 <<NOTE: Deadline. Reports. 28 USC 509 
                          note.>> 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--

[[Page 118 STAT. 3705]]

            (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. <<NOTE: 50 USC 435b.>> 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''.

[[Page 118 STAT. 3706]]

            (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) <<NOTE: Deadline. President.>> 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);

[[Page 118 STAT. 3707]]

            (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) <<NOTE: Deadline. President.>> Performance of Security Clearance 
Investigations.--(1) Notwithstanding any other provision of law, not 
later than 180 days after the date of the enactment of this Act, the 
President shall, in consultation with the head of the entity selected 
pursuant to subsection (b), select a single agency of the executive 
branch to conduct, to the maximum extent practicable, security clearance 
investigations of employees and contractor personnel of the United 
States Government who require access to classified information and to 
provide and maintain all security clearances of such employees and 
contractor personnel. The head of the entity selected pursuant to 
subsection (b) may designate other agencies to conduct such 
investigations if the head of the entity selected pursuant to subsection 
(b) considers it appropriate for national security and efficiency 
purposes.

    (2) The agency selected under paragraph (1) shall--
            (A) take all necessary actions to carry out the requirements 
        of this section, including entering into a memorandum of 
        understanding with any agency carrying out responsibilities 
        relating to security clearances or security clearance 
        investigations before the date of the enactment of this Act;
            (B) as soon as practicable, integrate reporting of security 
        clearance applications, security clearance investigations, and 
        determinations of eligibility for security clearances, with the 
        database required by subsection (e); and
            (C) ensure that security clearance investigations are 
        conducted in accordance with uniform standards and requirements 
        established under subsection (b), including uniform security 
        questionnaires and financial disclosure requirements.

    (d) Reciprocity of Security Clearance and Access Determinations.--
(1) All security clearance background investigations and determinations 
completed by an authorized investigative agency or authorized 
adjudicative agency shall be accepted by all agencies.
    (2) All security clearance background investigations initiated by an 
authorized investigative agency shall be transferable to any other 
authorized investigative agency.
    (3)(A) An authorized investigative agency or authorized adjudicative 
agency may not establish additional investigative or adjudicative 
requirements (other than requirements for the conduct of a polygraph 
examination) that exceed requirements specified in Executive Orders 
establishing security requirements for access to classified information 
without the approval of the head of the entity selected pursuant to 
subsection (b).
    (B) Notwithstanding subparagraph (A), the head of the entity 
selected pursuant to subsection (b) may establish such additional 
requirements as the head of such entity considers necessary for national 
security purposes.
    (4) An authorized investigative agency or authorized adjudicative 
agency may not conduct an investigation for purposes of determining 
whether to grant a security clearance to an individual where a current 
investigation or clearance of equal level already

[[Page 118 STAT. 3708]]

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) <<NOTE: Procedures.>> 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) <<NOTE: Deadline. Establishment.>> 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;

[[Page 118 STAT. 3709]]

            (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) <<NOTE: Deadline. Reports.>> 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) <<NOTE: Deadlines.>> 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

[[Page 118 STAT. 3710]]

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).

[[Page 118 STAT. 3711]]

                    ``(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

[[Page 118 STAT. 3712]]

                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) <<NOTE: Deadline. Guidelines.>> Operational Criteria.--Not 
later than 90 days after the date of the submission of the National 
Strategy for Transportation Security under section 114(t)(4)(A), the 
Assistant Secretary of Homeland Security (Transportation Security 
Administration) shall issue operational criteria to protect airport 
infrastructure and operations against the threats identified in the 
plans prepared under section 114(t)(1) and shall approve best practices 
guidelines for airport assets.''.

                      Subtitle B--Aviation Security

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

    (a) Use of Biometric Identifier Technology.--Section 44903(h) of 
title 49, United States Code, is amended--
            (1) in paragraph (4)(E) by striking ``may provide for'' and 
        inserting ``shall issue, not later than March 31, 2005, guidance 
        for''; and
            (2) by adding at the end the following:
            ``(5) Use of biometric technology in airport access control 
        systems.--In issuing guidance under paragraph (4)(E), the 
        Assistant Secretary of Homeland Security (Transportation 
        Security Administration) in consultation with representatives of 
        the aviation industry, the biometric identifier industry,

[[Page 118 STAT. 3713]]

        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) <<NOTE: Deadline.>> 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) <<NOTE: Procedures.>> 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.

[[Page 118 STAT. 3714]]

                    ``(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) <<NOTE: Appropriation authorization.>> 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) <<NOTE: Appropriation authorization.>> 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:

[[Page 118 STAT. 3715]]

                    ``(C) <<NOTE: Deadlines.>> 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) <<NOTE: Procedures.>> 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) <<NOTE: Establishment.>> establis
                                h 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

[[Page 118 STAT. 3716]]

                                    ``(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) <<NOTE: Deadline.>> 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) <<NOTE: Applicability.>> 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

[[Page 118 STAT. 3717]]

                      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--
                    (A) by striking ``paragraph (5),'' in paragraph (4) 
                and inserting ``paragraphs (5) and (6),''; and
                    (B) by adding at the end the following:
            ``(6) Prescreening international passengers.--
                    ``(A) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3718]]

                      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) <<NOTE: Public information.>> 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) <<NOTE: Public information.>> 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

[[Page 118 STAT. 3719]]

        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) <<NOTE: Deadline.>> 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) <<NOTE: Appropriation authorization.>> 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

[[Page 118 STAT. 3720]]

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 <<NOTE: 49 USC 44925 note. Deadline.>> 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 <<NOTE: 49 USC 44935 note.>> 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) <<NOTE: Deadline. Reports.>> 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. <<NOTE: 49 USC 44917 note.>> 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

[[Page 118 STAT. 3721]]

        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 <<NOTE: 49 USC 44901 note.>>  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) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3722]]

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) <<NOTE: Deadline.>> 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) <<NOTE: 49 USC 44923 note.>> 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 <<NOTE: 49 USC 44901 note.>> 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

[[Page 118 STAT. 3723]]

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 <<NOTE: 49 USC 44703 note. Deadline.>> 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) <<NOTE: Deadline. Standards.>> 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) <<NOTE: Reports.>> 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

[[Page 118 STAT. 3724]]

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 <<NOTE: 49 USC 44913 note.>> 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. <<NOTE: Deadline.>> 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 <<NOTE: 22 USC 2751 note.>> 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

[[Page 118 STAT. 3725]]

                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

[[Page 118 STAT. 3726]]

        annually thereafter until December 31, 2008, the Federal 
        Aviation Administration shall transmit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report that contains a detailed 
        description of each airworthiness and safety certification 
        issued for a missile defense system for commercial aircraft.

    (c) Programs to Reduce MANPADS.--
            (1) In general.--The President is encouraged to pursue 
        strong programs to reduce the number of MANPADSs worldwide so 
        that fewer MANPADSs will be available for trade, proliferation, 
        and sale.
            (2) Reporting and briefing requirements.--Not later than 180 
        days after the date of enactment of this Act, the President 
        shall transmit to the appropriate congressional committees a 
        report that contains a detailed description of the status of the 
        programs being pursued under subsection (a). Annually thereafter 
        until the programs are no longer needed, the Secretary of State 
        shall brief the appropriate congressional committees on the 
        status of programs.
            (3) Funding.--There is authorized to be appropriated such 
        sums as may be necessary to carry out this section.

    (d) MANPADS Vulnerability Assessments Report.--
            (1) In general.--Not later than one year after the date of 
        enactment of this Act, the Secretary of Homeland Security shall 
        transmit to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report describing 
        the Department of Homeland Security's plans to secure airports 
        and the aircraft arriving and departing from airports against 
        MANPADSs attacks.
            (2) Matters to be addressed.--The Secretary's report shall 
        address, at a minimum, the following:
                    (A) The status of the Department's efforts to 
                conduct MANPADSs vulnerability assessments at United 
                States airports at which the Department is conducting 
                assessments.
                    (B) How intelligence is shared between the United 
                States intelligence agencies and Federal, State, and 
                local law enforcement to address the MANPADS threat and 
                potential ways to improve such intelligence sharing.
                    (C) Contingency plans that the Department has 
                developed in the event that it receives intelligence 
                indicating a high threat of a MANPADS attack on aircraft 
                at or near United States airports.
                    (D) The feasibility and effectiveness of 
                implementing public education and neighborhood watch 
                programs in areas surrounding United States airports in 
                cases in which intelligence reports indicate there is a 
                high risk of MANPADS attacks on aircraft.
                    (E) Any other issues that the Secretary deems 
                relevant.
            (3) Format.--The report required by this subsection may be 
        submitted in a classified format.

    (e) Definitions.--In this section, the following definitions apply:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--

[[Page 118 STAT. 3727]]

                    (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''.

[[Page 118 STAT. 3728]]

                     Subtitle C--Air Cargo Security

SEC. 4051. PILOT <<NOTE: 49 USC 44901 note.>> PROGRAM TO EVALUATE 
                          USE OF BLAST RESISTANT CARGO AND BAGGAGE 
                          CONTAINERS.

    (a) <<NOTE: Deadline.>> 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 sum 
shall remain available until expended.

SEC. 4052. <<NOTE: 49 USC 44901 note.>> 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) <<NOTE: Appropriation authorization.>> 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;

[[Page 118 STAT. 3729]]

            (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) <<NOTE: Procedures.>> 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 <<NOTE: Deadline.>> 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 <<NOTE: 46 USC 70101 note.>> 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

[[Page 118 STAT. 3730]]

                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) <<NOTE: Regulations.>> 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) <<NOTE: Guidelines. Procedures.>> 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''.

[[Page 118 STAT. 3731]]

    (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. <<NOTE: 49 USC 44901 note.>> 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.

[[Page 118 STAT. 3732]]

            (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. <<NOTE: 49 USC 114 note.>> 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. <<NOTE: 8 USC 1712 note.>> 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. <<NOTE: 8 USC 1712 note.>> 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

[[Page 118 STAT. 3733]]

            (2) includes ongoing communication among such agencies.

SEC. 5103. <<NOTE: 8 USC 1712 note.>> 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. <<NOTE: 8 USC 1712 note.>> 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. <<NOTE: 8 USC 1712 note.>> 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. <<NOTE: 8 USC 1701 note.>> BORDER SURVEILLANCE.

    (a) <<NOTE: Deadline.>> 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;

[[Page 118 STAT. 3734]]

                    (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 <<NOTE: Effective date.>> 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 <<NOTE: Effective date.>> 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) <<NOTE: Effective date.>> 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

[[Page 118 STAT. 3735]]

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,

[[Page 118 STAT. 3736]]

                except such nationals who possess nationalities of 
                countries that are not designated as state sponsors of 
                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. <<NOTE: 8 USC 1202 note.>> 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) <<NOTE: 8 USC 1155 note.>> 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.

[[Page 118 STAT. 3737]]

                     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) <<NOTE: Deadline.>> 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:

[[Page 118 STAT. 3738]]

            (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

[[Page 118 STAT. 3739]]

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.

[[Page 118 STAT. 3740]]

      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) <<NOTE: 8 USC 1182 note.>> 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:

[[Page 118 STAT. 3741]]

                    ``(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

[[Page 118 STAT. 3742]]

            ``(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) <<NOTE: 50 USC 1801 note.>> 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.

[[Page 118 STAT. 3743]]

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) <<NOTE: 50 USC 1801 note.>> 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. <<NOTE: 50 USC 1871 note.>> 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.

[[Page 118 STAT. 3744]]

                       ``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

[[Page 118 STAT. 3745]]

            (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 <<NOTE: International Money Laundering Abatement and 
 Financial Antiterrorism Technical Corrections Act of 2004. 31 USC 5301 
   note.>> 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 <<NOTE: 115 Stat. 
296.>> 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 <<NOTE: 31 USC 5311 note.>> 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 <<NOTE: 31 USC 5311 
note.>> is amended by striking ``Anti-Terrorist Financing Act'' and 
inserting ``Financial Antiterrorism Act''.

    (e) The heading for section 311 of Public Law 107-56 <<NOTE: 31 USC 
5311 note.>> is amended by striking ``or international transactions'' 
and inserting ``international transactions, or types of accounts''.

    (f) Section 314 of Public Law 107-56 <<NOTE: 31 USC 5311 note.>> 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)--

[[Page 118 STAT. 3746]]

                    (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 <<NOTE: 31 USC 5312.>> is 
amended by striking ``5312(2)'' and inserting ``5312(a)(2)''.

    (h) Section 325 of Public Law 107-56 <<NOTE: 31 USC 5318.>> 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 <<NOTE: 12 USC 1842 note, 1828 note.>> are each amended by striking 
``2001'' and all that follows and inserting a period.

    (j) Section 356(c)(4) of Public Law 107-56 <<NOTE: 31 USC 5311 
note.>> 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 <<NOTE: 12 USC 1953.>> 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 <<NOTE: 22 USC 262p-4r.>> 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 <<NOTE: 31 USC 310 
note.>> is amended by striking ``subchapter II or III'' and inserting 
``subchapter II''.

    (n) Section 365 of Public Law 107-56 is amended--
            (1) <<NOTE: 31 USC 5301.>> by redesignating the second of 
        the 2 subsections designated as subsection (c) (relating to a 
        clerical amendment) as subsection (d); and
            (2) <<NOTE: 31 USC 5331 note.>> 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

[[Page 118 STAT. 3747]]

            (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. <<NOTE: 12 USC 1828 note.>> 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

[[Page 118 STAT. 3748]]

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) <<NOTE: Regulations.>> In general.--Subject to 
        paragraphs (3) and (4), the Secretary shall prescribe 
        regulations requiring such financial

[[Page 118 STAT. 3749]]

        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

[[Page 118 STAT. 3750]]

                the Bank Secrecy Act Advisory Group established by the 
                Secretary, and any other group considered by the 
                Secretary to be relevant.
            ``(5) Regulations.--
                    ``(A) <<NOTE: Deadline.>> 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) <<NOTE: Certification.>> 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

[[Page 118 STAT. 3751]]

                    (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) <<NOTE: Applicability.>> 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

[[Page 118 STAT. 3752]]

                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) <<NOTE: Notice.>> 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

[[Page 118 STAT. 3753]]

                                the affairs of any insured depository 
                                institution for a period of up to 5 
                                years.
                          ``(ii) Civil monetary penalty.--The Federal 
                      banking agency may, in an administrative 
                      proceeding or civil action in an appropriate 
                      United States district court, impose on such 
                      person a civil monetary penalty of not more than 
                      $250,000. Any administrative proceeding under this 
                      clause shall be conducted in accordance with 
                      section 8(i). In lieu of an action by the Federal 
                      banking agency under this clause, the Attorney 
                      General of the United States may bring a civil 
                      action under this clause in the appropriate United 
                      States district court.
                    ``(B) Scope of prohibition order.--Any person 
                subject to an order issued under subparagraph (A)(i) 
                shall be subject to paragraphs (6) and (7) of section 
                8(e) in the same manner and to the same extent as a 
                person subject to an order issued under such section.
                    ``(C) Definitions.--Solely for purposes of this 
                paragraph, the `appropriate Federal banking agency' for 
                a company that is not a depository institution or 
                depository institution holding company shall be the 
                Federal banking agency on whose behalf the person 
                described in paragraph (1) performed the functions 
                described in paragraph (1)(B).''.

    (c) Postemployment Restriction for Certain Credit Union Examiners.--
Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended 
by adding at the end the following:
    ``(w) One-Year Restrictions on Federal Examiners of Insured Credit 
Unions.--
            ``(1) <<NOTE: Applicability.>> 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

[[Page 118 STAT. 3754]]

                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) <<NOTE: Notice.>> 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) <<NOTE: 12 USC 1786 note.>> 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.

[[Page 118 STAT. 3755]]

             Subtitle E--Criminal History Background Checks

SEC. 6401. PROTECT ACT.

    Public Law 108-21 is amended--
            (1) in section 108(a)(2)(A) <<NOTE: 42 USC 5119a note.>> 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 <<NOTE: Private Security Officer Employment 
                          Authorization Act of 2004. 28 USC 534 
                          note.>> 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

[[Page 118 STAT. 3756]]

                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

[[Page 118 STAT. 3757]]

                          (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) <<NOTE: Notification.>> 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) <<NOTE: Deadline.>> 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--

[[Page 118 STAT. 3758]]

                          (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) <<NOTE: Deadline. Reports.>> 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.

[[Page 118 STAT. 3759]]

    (d) <<NOTE: Procedures.>> 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

[[Page 118 STAT. 3760]]

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 <<NOTE: 18 USC app.>> 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)''.

[[Page 118 STAT. 3761]]

Subtitle G--Providing <<NOTE: Material Support to Terrorism Prohibition 
    Enhancement Act of 2004. 18 USC 2331 note.>> 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

[[Page 118 STAT. 3762]]

        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

[[Page 118 STAT. 3763]]

        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.

[[Page 118 STAT. 3764]]

    ``(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) <<NOTE: 18 USC 2332b note.>> 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, <<NOTE: 18 USC 2339C.>> 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, <<NOTE: 18 USC 2339C.>> 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 <<NOTE: Stop Terrorist and Military Hoaxes Act of 
2004.>> Terrorist and Military Hoaxes Act of 2004

SEC. 6701. <<NOTE: 18 USC 1 note.>> 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:

[[Page 118 STAT. 3765]]

``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.

[[Page 118 STAT. 3766]]

            ``(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) <<NOTE: Deadline. 28 USC 994 note.>> 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 <<NOTE: Weapons of Mass Destruction Prohibition 
     Improvement Act of 2004. 18 USC 1 note.>> 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;

[[Page 118 STAT. 3767]]

                    ``(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) <<NOTE: Effective date. 18 USC 175b note.>> 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,

[[Page 118 STAT. 3768]]

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

[[Page 118 STAT. 3769]]

            (3) in section 2332b(g)(5)(B)(i), by inserting after 
        ``nuclear materials),'' the following: ``832 (relating to 
        participation in nuclear and weapons of mass destruction threats 
        to the United States)''.

    Subtitle J--Prevention <<NOTE: Prevention of Terrorist Access to 
Destructive Weapons Act of 2004. 18 USC 1 note.>> 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. <<NOTE: 18 USC 175c note.>> 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

[[Page 118 STAT. 3770]]

(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.--

[[Page 118 STAT. 3771]]

            ``(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

[[Page 118 STAT. 3772]]

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) 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 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.

[[Page 118 STAT. 3773]]

            ``(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.''.

[[Page 118 STAT. 3774]]

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);''.

[[Page 118 STAT. 3775]]

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 <<NOTE: Pretrial Detention of Terrorists Act of 
2004.>> Detention of Terrorists

SEC. 6951. <<NOTE: 18 USC 3141 note.>> 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 <<NOTE: 9/11 Commission Implementation Act of 
2004.>> OF 9/11 COMMISSION RECOMMENDATIONS

SEC. 7001. <<NOTE: 6 USC 101 note.>> 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. <<NOTE: 22 USC 2656 note.>> 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.

[[Page 118 STAT. 3776]]

            (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) <<NOTE: 22 USC 2656f note.>> 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

[[Page 118 STAT. 3777]]

        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) <<NOTE: 50 USC app. 2405 note.>> 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) <<NOTE: President. 50 USC app. 2405 
        note.>> 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

[[Page 118 STAT. 3778]]

                          ``(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 7120(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) <<NOTE: 22 USC 2656f note.>> 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.

[[Page 118 STAT. 3779]]

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 <<NOTE: 115 Stat. 403.>> 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), <<NOTE: 115 Stat. 404.>> by striking 
        ``and 2004,'' and inserting ``2004, 2005, and 2006''; and
            (3) in section 6, <<NOTE: 115 Stat. 405.>> by striking 
        ``2004'' and inserting ``2006''.

[[Page 118 STAT. 3780]]

SEC. 7104. <<NOTE: Afghanistan Freedom Support Act Amendments of 
            2004. 22 USC 7501 note. 22 USC 7511 note.>> 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

[[Page 118 STAT. 3781]]

                personnel of those agencies in Afghanistan as necessary 
                to support the increased assistance.

    (c) Coordinator for Assistance.--
            (1) <<NOTE: 22 USC 7514 note.>> 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) <<NOTE: Deadlines.>> 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.--

[[Page 118 STAT. 3782]]

                    (A) <<NOTE: 22 USC 7513 note.>> 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) <<NOTE: 22 USC 7511 note.>> 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. <<NOTE: 22 USC 7555.>> FORMULATION OF LONG-TERM STRATEGY FOR 
            AFGHANISTAN.

    ``(a) Strategy.--
            ``(1) <<NOTE: Deadline. President.>> 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.

[[Page 118 STAT. 3783]]

            ``(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) <<NOTE: President.>> 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) <<NOTE: 22 USC 7513 note.>> 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

[[Page 118 STAT. 3784]]

                      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--

[[Page 118 STAT. 3785]]

                          ``(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

[[Page 118 STAT. 3786]]

                          ``(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) <<NOTE: 22 USC 7536 note.>> 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) <<NOTE: President.>> 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

[[Page 118 STAT. 3787]]

                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 <<NOTE: 22 
                USC 7537, 7538.>> as sections 208 and 209, respectively; 
                and
                    (B) by inserting after section 206 the following:

``SEC. 207. <<NOTE: 22 USC 7536a.>> 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

[[Page 118 STAT. 3788]]

        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.

[[Page 118 STAT. 3789]]

            (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-

[[Page 118 STAT. 3790]]

        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 <<NOTE: 22 USC 1431 note.>> 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;

[[Page 118 STAT. 3791]]

                    (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

[[Page 118 STAT. 3792]]

                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. <<NOTE: 22 USC 2732.>> 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

[[Page 118 STAT. 3793]]

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) <<NOTE: 22 USC 2651a note.>> 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. <<NOTE: 22 USC 3922b.>> 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

[[Page 118 STAT. 3794]]

        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

[[Page 118 STAT. 3795]]

                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) <<NOTE: 22 USC 4029.>> 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

[[Page 118 STAT. 3796]]

                      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 <<NOTE: 22 USC 2451 note.>> 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

[[Page 118 STAT. 3797]]

to carry out programs under this section, unless otherwise authorized by 
Congress.
SEC. 7113. PILOT <<NOTE: 22 USC 2452 note.>> 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

[[Page 118 STAT. 3798]]

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. 7114. INTERNATIONAL <<NOTE: 22 USC 2228.>> 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. 7115. 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.

[[Page 118 STAT. 3799]]

            (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. 7116. 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. 7117. COMPREHENSIVE <<NOTE: 22 USC 2656 note.>> 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.

[[Page 118 STAT. 3800]]

    (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) <<NOTE: President. Establishment.>> 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. 7118. 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--

[[Page 118 STAT. 3801]]

            (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. 7119. 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) <<NOTE: Deadline.>> 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).

[[Page 118 STAT. 3802]]

                                    ``(III) <<NOTE: Federal Register, 
                                publication.>> 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) <<NOTE: Federal Register, 
                      publication.>> 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) <<NOTE: Effective date. Federal Register, 
        publication. Applicability.>> 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)--

[[Page 118 STAT. 3803]]

                    (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) <<NOTE: Applicability. 8 USC 1189 note.>> 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. 7120. REPORT TO CONGRESS.

    (a) <<NOTE: President.>> 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;

[[Page 118 STAT. 3804]]

                    (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;

[[Page 118 STAT. 3805]]

                    (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

[[Page 118 STAT. 3806]]

                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 7114(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.

[[Page 118 STAT. 3807]]

                    (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. 7121. 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) <<NOTE: Public information. Deadline.>> 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) <<NOTE: Reports.>> 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.''.

[[Page 118 STAT. 3808]]

    (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 <<NOTE: 1 USC 112b 
note.>> 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. 7122. <<NOTE: 1 USC 112a note.>> 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) <<NOTE: 8 USC 1776 note.>> 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

[[Page 118 STAT. 3809]]

        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) <<NOTE: 50 USC 404o note. Deadline. Reports.>> 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, and trends, and the terrorist travel 
                facilitators, document forgers, human smugglers, travel 
                agencies, and corrupt border and transportation 
                officials who assist terrorists;
                    (C) the training and training materials required by 
                consular, border, and immigration officials to 
                effectively detect and disrupt terrorist travel 
                described under subsection (c)(3);
                    (D) the new technology and procedures required and 
                actions to be taken to integrate existing 
                counterterrorist travel document and mobility 
                intelligence into border security processes, including 
                consular, port of entry, border patrol, maritime, 
                immigration benefits, and related law enforcement 
                activities;

[[Page 118 STAT. 3810]]

                    (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) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3811]]

        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) <<NOTE: 8 USC 1776.>> 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.

[[Page 118 STAT. 3812]]

            (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

[[Page 118 STAT. 3813]]

        each of the fiscal years 2005 through 2009 to carry out the 
        provisions of this subsection.

    (e) <<NOTE: 50 USC 403-1 note.>> 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 <<NOTE: 8 USC 1777.>> 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) <<NOTE: Reports.>> 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.

[[Page 118 STAT. 3814]]

    (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) <<NOTE: Deadline.>> In general.--Not later than 
                July 31, 2005, the Secretary of State, in coordination 
                with the Secretary of Homeland Security, shall identify 
                the diplomatic and consular posts at which visas are 
                issued that experience the greatest frequency of 
                presentation of fraudulent documents by visa applicants. 
                The Secretary of State shall assign or designate at each 
                such post at least 1 full-time anti-fraud specialist 
                employed by the Department of State to assist the 
                consular officers at each such post in the detection of 
                such fraud.
                    (B) Exceptions.--The Secretary of State is not 
                required to assign or designate a specialist under 
                subparagraph (A) at a diplomatic or consular post if an 
                employee of the Department of Homeland Security, who has 
                sufficient training and experience in the detection of 
                fraudulent documents, is assigned on a full-time basis 
                to such post under section 428 of the Homeland Security 
                Act of 2002 (6 U.S.C. 236).
SEC. 7204. INTERNATIONAL <<NOTE: 22 USC 2656 note.>> 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,

[[Page 118 STAT. 3815]]

        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--

[[Page 118 STAT. 3816]]

                                    (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) <<NOTE: President.>> 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) <<NOTE: Certification.>> 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.

[[Page 118 STAT. 3817]]

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: <<NOTE: Deadline.>> ``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 <<NOTE: Deadline.>> 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 <<NOTE: 8 USC 1365b.>> 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.

[[Page 118 STAT. 3818]]

    (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

[[Page 118 STAT. 3819]]

                      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) <<NOTE: Deadline.>> Integration of data system.--Not 
        later than 2 years after the date of enactment of this Act, the 
        Secretary shall fully integrate all databases and data systems 
        that process or contain information on aliens, which are 
        maintained by--
                    (A) the Department of Homeland Security, at--
                          (i) the United States Immigration and Customs 
                      Enforcement;
                          (ii) the United States Customs and Border 
                      Protection; and
                          (iii) the United States Citizenship and 
                      Immigration Services;
                    (B) the Department of Justice, at the Executive 
                Office for Immigration Review; and
                    (C) the Department of State, at the Bureau of 
                Consular Affairs.
            (2) Interoperable component.--The fully integrated data 
        system under paragraph (1) shall be an interoperable component 
        of the entry and exit data system.
            (3) <<NOTE: Deadline.>> 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.--

[[Page 118 STAT. 3820]]

                    (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) <<NOTE: President. Establishment.>> 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

[[Page 118 STAT. 3821]]

                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--

[[Page 118 STAT. 3822]]

            (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;

[[Page 118 STAT. 3823]]

                          (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. <<NOTE: 8 USC 1185 note.>> 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)). <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3824]]

            (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) <<NOTE: 8 USC 1225a note.>> 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

[[Page 118 STAT. 3825]]

        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) <<NOTE: Deadline. Establishment.>> 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 <<NOTE: 5 USC 301 note.>> 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

[[Page 118 STAT. 3826]]

                record, of an original certificate of birth issued by 
                such agency or custodian of record.

    (b) Standards for Acceptance by Federal Agencies.--
            (1) <<NOTE: Effective date.>> 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) <<NOTE: Deadline. Regulations.>> 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.

[[Page 118 STAT. 3827]]

            (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) <<NOTE: Effective date.>> 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 <<NOTE: 49 USC 30301 note.>> 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.

[[Page 118 STAT. 3828]]

            (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) <<NOTE: Deadline. Regulations.>> 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;

[[Page 118 STAT. 3829]]

                          (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.

[[Page 118 STAT. 3830]]

                    (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) <<NOTE: Effective date.>> 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. <<NOTE: 42 USC 405 note.>> SOCIAL SECURITY CARDS AND NUMBERS.

    (a) <<NOTE: Deadlines.>> 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

[[Page 118 STAT. 3831]]

                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) <<NOTE: Establishment.>> 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 <<NOTE: Deadline.>> 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.--

[[Page 118 STAT. 3832]]

                    (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) <<NOTE: 42 USC 405 note.>> 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. <<NOTE: 6 USC 123.>> 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;

[[Page 118 STAT. 3833]]

                    (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) <<NOTE: Deadline.>> 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 <<NOTE: 22 USC 4807.>> 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;

[[Page 118 STAT. 3834]]

                    (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

[[Page 118 STAT. 3835]]

                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. <<NOTE: 8 USC 1202 note.>> EFFECTIVE DATE.

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

SEC. 7220. <<NOTE: 49 USC 44901 note.>> 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.--

[[Page 118 STAT. 3836]]

            (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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3837]]

                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, not shall it be in order to move to reconsider 
                the vote by which the motion is agreed to or disagreed 
                to.
                    (B) Debate.--Debate in the House of Representatives 
                on an implementing bill or approval resolution shall be 
                limited to not more than 4 hours, which shall be divided 
                equally between those favoring and those opposing the 
                resolution. A motion to further limit debate shall not 
                be debatable. It shall not be in order to move to 
                recommit an approval resolution or to move to reconsider 
                the vote by which an approval resolution is 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, nor shall it be in 
                order

[[Page 118 STAT. 3838]]

                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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3839]]

            (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

[[Page 118 STAT. 3840]]

        measures taken to fully and aggressively implement the Incident 
        Command System and unified command procedures.
SEC. 7302. NATIONAL <<NOTE: 42 USC 5196 note.>> 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

[[Page 118 STAT. 3841]]

                    (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

[[Page 118 STAT. 3842]]

                      and localities, including the Emergency Management 
                      Assistance Compact.
            (4) Rights described.--Other than as described in this 
        section, the rights and responsibilities of the parties to a 
        mutual aid agreement entered into under this section shall be as 
        described in the mutual aid agreement.

    (c) District of Columbia.--
            (1) In general.--The District of Columbia may purchase 
        liability and indemnification insurance or become self insured 
        against claims arising under a mutual aid agreement authorized 
        under this section.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        paragraph (1).

    (d) Liability and Actions at Law.--
            (1) In general.--Any responding party or its officers or 
        employees rendering aid or failing to render aid to the District 
        of Columbia, the Federal Government, the State of Maryland, the 
        Commonwealth of Virginia, or a locality, under a mutual aid 
        agreement authorized under this section, and any party or its 
        officers or employees engaged in training activities with 
        another party under such a mutual aid agreement, shall be liable 
        on account of any act or omission of its officers or employees 
        while so engaged or on account of the maintenance or use of any 
        related equipment, facilities, or supplies, but only to the 
        extent permitted under the laws and procedures of the State of 
        the party rendering aid.
            (2) Actions.--Any action brought against a party or its 
        officers or employees on account of an act or omission in the 
        rendering of aid to the District of Columbia, the Federal 
        Government, the State of Maryland, the Commonwealth of Virginia, 
        or a locality, or failure to render such aid or on account of 
        the maintenance or use of any related equipment, facilities, or 
        supplies may be brought only under the laws and procedures of 
        the State of the party rendering aid and only in the Federal or 
        State courts located therein. Actions against the United States 
        under this section may be brought only in Federal courts.
            (3) Immunities.--This section shall not abrogate any other 
        immunities from liability that any party has under any other 
        Federal or State law.

    (e) Workers Compensation.--
            (1) Compensation.--Each party shall provide for the payment 
        of compensation and death benefits to injured members of the 
        emergency forces of that party and representatives of deceased 
        members of such forces if such members sustain injuries or are 
        killed while rendering aid to the District of Columbia, the 
        Federal Government, the State of Maryland, the Commonwealth of 
        Virginia, or a locality, under a mutual aid agreement, or 
        engaged in training activities under a mutual aid agreement, in 
        the same manner and on the same terms as if the injury or death 
        were sustained within their own jurisdiction.
            (2) Other state law.--No party shall be liable under the law 
        of any State other than its own for providing for the payment of 
        compensation and death benefits to injured

[[Page 118 STAT. 3843]]

        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 <<NOTE: 6 USC 194.>> 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

[[Page 118 STAT. 3844]]

                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) <<NOTE: Deadline. President. Canada. Mexico.>> 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. <<NOTE: 6 USC 321.>> 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

[[Page 118 STAT. 3845]]

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) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3846]]

                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.--

[[Page 118 STAT. 3847]]

            (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 <<NOTE: 6 USC 194 note.>> MODEL STRATEGIC PLAN 
                          PILOT PROJECTS.

    (a) <<NOTE: Deadline.>> 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

[[Page 118 STAT. 3848]]

            (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--

[[Page 118 STAT. 3849]]

                    (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. <<NOTE: 6 USC 194 note.>> 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.

[[Page 118 STAT. 3850]]

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 coordination 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.

[[Page 118 STAT. 3851]]

    (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. <<NOTE: 6 USC 112 note.>> 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) <<NOTE: Establishment. President. Congress.>> Office.--There 
is established in the Department an Office of Counternarcotics 
Enforcement, which shall be headed by a Director appointed by the 
President, by and with the advice and consent of the Senate.

    ``(b) Assignment of Personnel.--
            ``(1) In general.--The Secretary shall assign permanent 
        staff to the Office, consistent with effective management of 
        Department resources.

[[Page 118 STAT. 3852]]

            ``(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;

[[Page 118 STAT. 3853]]

                    ``(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) <<NOTE: Deadline.>> 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.

[[Page 118 STAT. 3854]]

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. <<NOTE: 6 USC 413.>> 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

[[Page 118 STAT. 3855]]

        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

[[Page 118 STAT. 3856]]

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:

[[Page 118 STAT. 3857]]

                          ``(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) <<NOTE: President.>> 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) <<NOTE: 50 USC 435b note.>> 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

[[Page 118 STAT. 3858]]

        information shall be completed, to the fullest extent 
        practicable, by the day after the date of the general election.

    (d) <<NOTE: 3 USC 102 note.>> 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 <<NOTE: 31 USC 5311 note.>> 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

[[Page 118 STAT. 3859]]

        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. <<NOTE: 31 USC 5311 note.>> 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

[[Page 118 STAT. 3860]]

        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 <<NOTE: 31 USC 5311 note.>> 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''.

[[Page 118 STAT. 3861]]

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 <<NOTE: Emergency Securities Response Act of 
                          2004. 15 USC 78a note.>> 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.--

[[Page 118 STAT. 3862]]

            (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

[[Page 118 STAT. 3863]]

        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

[[Page 118 STAT. 3864]]

                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 <<NOTE: 50 USC 403-1 note.>> 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

[[Page 118 STAT. 3865]]

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 <<NOTE: 6 USC 343 note.>> 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.

[[Page 118 STAT. 3866]]

                          ``(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.''.

[[Page 118 STAT. 3867]]

 Subtitle C--Homeland <<NOTE: Homeland Security Civil Rights and Civil 
   Liberties Protection Act of 2004. 6 USC 101 note.>> 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.''.

[[Page 118 STAT. 3868]]

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;

[[Page 118 STAT. 3869]]

            (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 <<NOTE: 6 USC 112 note.>> 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. <<NOTE: 28 USC 531 note.>> 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.

[[Page 118 STAT. 3870]]

    (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) <<NOTE: Deadline. Reports.>> 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) <<NOTE: 5 USC 1101 note.>> 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) <<NOTE: Deadline.>> 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.

[[Page 118 STAT. 3871]]

    (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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline. Reports.>> 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.

[[Page 118 STAT. 3872]]

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.''.

    Approved December 17, 2004.

LEGISLATIVE HISTORY--S. 2845 (H.R. 10):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 108-724, Pt. 1 (Permanent Select Comm. on 
Intelligence), Pt. 2 (Comm. on Armed Services), Pt. 3 (Comm. on 
Financial Services), Pt. 4 (Comm. on Government Reform), and Pt. 5 
(Comm. on the Judiciary) all accompanying H.R. 10, and 
108-796 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 150 (2004):
            Sept. 27-30, Oct. 1, 4-6, considered and passed Senate.
            Oct. 16, considered and passed House pursuant to H. Res. 
                827.
            Dec. 7, House agreed to conference report.
            Dec. 8, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):
            Dec. 17, Presidential remarks and statement.

                                  <all>