House Report 108-724 - 9/11 RECOMMENDATIONS IMPLEMENTATION ACT

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

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

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

9/11 RECOMMENDATIONS IMPLEMENTATION ACT

_______

October 5, 2004.--Ordered to be printed

_______

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

R E P O R T

together with

MINORITY VIEWS

[To accompany H.R. 10]

[Including cost estimate of the Congressional Budget Office]

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

CONTENTS

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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

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

TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

Sec. 1001. Short title.

Subtitle A--Establishment of National Intelligence Director

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

Subtitle B--National Counterterrorism Center and Civil Liberties
Protections

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

Subtitle C--Joint Intelligence Community Council

Sec. 1031. Joint Intelligence Community Council.

Subtitle D--Improvement of Human Intelligence (HUMINT)

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

Subtitle E--Improvement of Education for the Intelligence Community

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

Subtitle F--Additional Improvements of Intelligence Activities

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

Subtitle G--Conforming and Other Amendments

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

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

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

TITLE II--TERRORISM PREVENTION AND PROSECUTION

Subtitle A--Individual Terrorists as Agents of Foreign Powers

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

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

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

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

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

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

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

Subtitle E--Money Laundering and Terrorist Financing

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

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

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

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

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

Subchapter B--Additional enforcement tools

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

Subtitle F--Criminal History Background Checks

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

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

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

Subtitle H--Other Matters

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

TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

Subtitle A--Immigration Reform in the National Interest

Chapter 1--General Provisions

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

Chapter 2--Deportation of Terrorists and Supporters of Terrorism

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

Subtitle B--Identity Management Security

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

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

Chapter 2--Improved Security for Birth Certificates

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

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

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

Subtitle C--Targeting Terrorist Travel

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

Subtitle D--Terrorist Travel

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

Subtitle E--Maritime Security Requirements

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

TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

Subtitle A--Attack Terrorists and Their Organizations

Chapter 1--Provisions Relating to Terrorist Sanctuaries

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

Chapter 2--Other Provisions

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

Subtitle B--Prevent the Continued Growth of Terrorism

Chapter 1--United States Public Diplomacy

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

Chapter 2--United States Multilateral Diplomacy

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

Chapter 3--Other Provisions

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

Subtitle C--Reform of Designation of Foreign Terrorist Organizations

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

Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

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

Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

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

Subtitle F--Oversight Provisions

Sec. 4091. Case-Zablocki Act requirements.

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

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

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

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

TITLE V--GOVERNMENT RESTRUCTURING

Subtitle A--Faster and Smarter Funding for First Responders

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

Subtitle B--Government Reorganization Authority

Sec. 5021. Authorization of intelligence community reorganization
plans.

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

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

Subtitle D--Improvements to Information Security

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

Subtitle E--Personnel Management Improvements

Chapter 1--Appointments Process Reform

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

Chapter 2--Federal Bureau of Investigation Revitalization

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

Chapter 3--Reporting Requirement

Sec. 5061. Reporting requirement.

Subtitle F--Security Clearance Modernization

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

Subtitle G--Emergency Financial Preparedness

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

Subtitle H--Other Matters

Chapter 1--Privacy Matters

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

Chapter 2--Mutual Aid and Litigation Management

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

Chapter 3--Miscellaneous Matters

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

TITLE I--REFORM OF THE INTELLIGENCE COMMUNITY

SEC. 1001. SHORT TITLE.

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

Subtitle A--Establishment of National Intelligence Director

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

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

SEC. 1012. REVISED DEFINITION OF NATIONAL INTELLIGENCE.

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

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

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

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

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

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

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

SEC. 1016. EXECUTIVE SCHEDULE MATTERS.

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

Subtitle B--National Counterterrorism Center and Civil Liberties
Protections

SEC. 1021. NATIONAL COUNTERTERRORISM CENTER.

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

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

SEC. 1022. CIVIL LIBERTIES PROTECTION OFFICER.

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

Subtitle C--Joint Intelligence Community Council

SEC. 1031. JOINT INTELLIGENCE COMMUNITY COUNCIL.

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

Subtitle D--Improvement of Human Intelligence (HUMINT)

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

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

SEC. 1042. IMPROVEMENT OF HUMAN INTELLIGENCE CAPACITY.

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

Subtitle E--Improvement of Education for the Intelligence Community

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

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

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

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

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

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

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

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

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

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

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

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

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

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

``Subtitle B--Foreign Languages Program

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

``Subtitle C--Additional Education Provisions

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

``Subtitle A--Science and Technology

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

``Subtitle B--Foreign Languages Program

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

``Subtitle C--Additional Education Provisions

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

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

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

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

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

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

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

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

Subtitle F--Additional Improvements of Intelligence Activities

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

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

SEC. 1062. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES PANEL.

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

Subtitle G--Conforming and Other Amendments

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

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

SEC. 1072. OTHER CONFORMING AMENDMENTS.

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

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

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

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

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

SEC. 1075. REPEAL OF SUPERSEDED AUTHORITIES.

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

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

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

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

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

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

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

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

SEC. 1078. ACCESS TO INSPECTOR GENERAL PROTECTIONS.

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

SEC. 1079. GENERAL REFERENCES.

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

SEC. 1080. APPLICATION OF OTHER LAWS.

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

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

SEC. 1091. TRANSFER OF COMMUNITY MANAGEMENT STAFF.

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

SEC. 1092. TRANSFER OF TERRORIST THREAT INTEGRATION CENTER.

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

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

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

SEC. 1094. IMPLEMENTATION PLAN.

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

SEC. 1095. TRANSITIONAL AUTHORITIES.

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

SEC. 1096. EFFECTIVE DATES.

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

TITLE II--TERRORISM PREVENTION AND PROSECUTION

Subtitle A--Individual Terrorists as Agents of Foreign Powers

SECTION 2001. INDIVIDUAL TERRORISTS AS AGENTS OF FOREIGN POWERS.

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

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

SEC. 2021. SHORT TITLE.

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

SEC. 2022. HOAXES AND RECOVERY COSTS.

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

``Sec. 1038. False information and hoaxes

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

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

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

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

SEC. 2024. CLARIFICATION OF DEFINITION.

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

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

SEC. 2041. SHORT TITLE.

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

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

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

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

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

SEC. 2043. PROVIDING MATERIAL SUPPORT TO TERRORISM.

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

SEC. 2044. FINANCING OF TERRORISM.

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

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

SEC. 2051. SHORT TITLE.

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

SEC. 2052. WEAPONS OF MASS DESTRUCTION.

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

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

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

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

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

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

Subtitle E--Money Laundering and Terrorist Financing

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

SEC. 2101. ADDITIONAL AUTHORIZATION FOR FINCEN.

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

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

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

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

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

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

SEC. 2111. SHORT TITLE.

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 2114. REPEAL OF REVIEW.

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

SEC. 2115. EFFECTIVE DATE.

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

Subchapter B--Additional Enforcement Tools

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

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

SEC. 2122. CONDUCT IN AID OF COUNTERFEITING.

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

Subtitle F--Criminal History Background Checks

SEC. 2141. SHORT TITLE.

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

SEC. 2142. CRIMINAL HISTORY INFORMATION CHECKS.

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

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

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

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

SEC. 2172. TRANSPORTATION SECURITY STRATEGIC PLANNING.

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

SEC. 2173. NEXT GENERATION AIRLINE PASSENGER PRESCREENING.

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

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

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

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

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

SEC. 2176. AIR CARGO SCREENING TECHNOLOGY.

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

SEC. 2177. AIRPORT CHECKPOINT SCREENING EXPLOSIVE DETECTION.

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

SEC. 2178. NEXT GENERATION SECURITY CHECKPOINT.

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

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

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

SEC. 2180. FEDERAL AIR MARSHAL ANONYMITY.

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

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

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

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

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

SEC. 2183. REGISTERED TRAVELER PROGRAM.

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

SEC. 2184. WIRELESS COMMUNICATION.

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

SEC. 2185. SECONDARY FLIGHT DECK BARRIERS.

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

SEC. 2186. EXTENSION.

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

SEC. 2187. PERIMETER SECURITY.

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

SEC. 2188. DEFINITIONS.

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

Subtitle H--Other Matters

SEC. 2191. GRAND JURY INFORMATION SHARING.

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

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

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

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

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

TITLE III--BORDER SECURITY AND TERRORIST TRAVEL

Subtitle A--Immigration Reform in the National Interest

CHAPTER 1--GENERAL PROVISIONS

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

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

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

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

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

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

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

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

SEC. 3005. ALIEN IDENTIFICATION STANDARDS.

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

SEC. 3006. EXPEDITED REMOVAL.

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

SEC. 3007. PREVENTING TERRORISTS FROM OBTAINING ASYLUM.

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

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

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

SEC. 3009. JUDICIAL REVIEW OF ORDERS OF REMOVAL.

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

CHAPTER 2--DEPORTATION OF TERRORISTS AND SUPPORTERS OF TERRORISM

SEC. 3031. EXPANDED INAPPLICABILITY OF RESTRICTION ON REMOVAL.

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

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

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

SEC. 3033. ADDITIONAL REMOVAL AUTHORITIES.

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

Subtitle B--Identity Management Security

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

SEC. 3051. DEFINITIONS.

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

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

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

SEC. 3053. LINKING OF DATABASES.

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

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

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

SEC. 3055. GRANTS TO STATES.

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

SEC. 3056. AUTHORITY.

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

CHAPTER 2--IMPROVED SECURITY FOR BIRTH CERTIFICATES

SEC. 3061. DEFINITIONS.

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

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

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

SEC. 3063. MINIMUM STANDARDS FOR FEDERAL RECOGNITION.

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

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

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

SEC. 3065. ELECTRONIC VERIFICATION OF VITAL EVENTS.

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

SEC. 3066. GRANTS TO STATES.

SEC. 3067. AUTHORITY.

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

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

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

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

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

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

SEC. 3073. ENUMERATION AT BIRTH.

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

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

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

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

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

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

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

Subtitle C--Targeting Terrorist Travel

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

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

SEC. 3082. EXPANDED PREINSPECTION AT FOREIGN AIRPORTS.

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

SEC. 3083. IMMIGRATION SECURITY INITIATIVE.

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

SEC. 3084. RESPONSIBILITIES AND FUNCTIONS OF CONSULAR OFFICERS.

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

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

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

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

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

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

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

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

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

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

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

SEC. 3090. BIOMETRIC ENTRY AND EXIT DATA SYSTEM.

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

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

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

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

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

Subtitle D--Terrorist Travel

SEC. 3101. INFORMATION SHARING AND COORDINATION.

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

SEC. 3102. TERRORIST TRAVEL PROGRAM.

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

SEC. 3103. TRAINING PROGRAM.

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

SEC. 3104. TECHNOLOGY ACQUISITION AND DISSEMINATION PLAN.

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

Subtitle E--Maritime Security Requirements

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

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

TITLE IV--INTERNATIONAL COOPERATION AND COORDINATION

Subtitle A--Attack Terrorists and Their Organizations

CHAPTER 1--PROVISIONS RELATING TO TERRORIST SANCTUARIES

SEC. 4001. UNITED STATES POLICY ON TERRORIST SANCTUARIES.

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

SEC. 4002. REPORTS ON TERRORIST SANCTUARIES.

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

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

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

CHAPTER 2--OTHER PROVISIONS

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

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

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

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

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

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

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

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

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

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

Subtitle B--Prevent the Continued Growth of Terrorism

CHAPTER 1--UNITED STATES PUBLIC DIPLOMACY

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

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

SEC. 4022. PUBLIC DIPLOMACY TRAINING.

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

SEC. 4023. PROMOTING DIRECT EXCHANGES WITH MUSLIM COUNTRIES.

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

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

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

CHAPTER 2--UNITED STATES MULTILATERAL DIPLOMACY

SEC. 4031. PURPOSE.

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

SEC. 4032. SUPPORT AND EXPANSION OF DEMOCRACY CAUCUS.

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

SEC. 4033. LEADERSHIP AND MEMBERSHIP OF INTERNATIONAL ORGANIZATIONS.

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

SEC. 4034. INCREASED TRAINING IN MULTILATERAL DIPLOMACY.

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

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

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

CHAPTER 3--OTHER PROVISIONS

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

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

SEC. 4042. ENHANCING FREE AND INDEPENDENT MEDIA.

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

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

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

SEC. 4044. REPORT ON BROADCAST OUTREACH STRATEGY.

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

SEC. 4045. OFFICE RELOCATION.

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

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

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

Subtitle C--Reform of Designation of Foreign Terrorist Organizations

SEC. 4051. DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS.

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

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

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

Subtitle D--Afghanistan Freedom Support Act Amendments of 2004

SEC. 4061. SHORT TITLE.

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

SEC. 4062. COORDINATION OF ASSISTANCE FOR AFGHANISTAN.

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

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

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

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

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

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

SEC. 4064. RULE OF LAW AND RELATED ISSUES.

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

SEC. 4065. MONITORING OF ASSISTANCE.

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

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

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

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

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

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

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

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

``SEC. 301. ASSISTANCE FOR COUNTERNARCOTICS EFFORTS.

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

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

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

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

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

SEC. 4070. REPEAL.

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

Subtitle E--Provisions Relating to Saudi Arabia and Pakistan

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

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

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

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

SEC. 4083. EXTENSION OF PAKISTAN WAIVERS.

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

Subtitle F--Oversight Provisions

SEC. 4091. CASE-ZABLOCKI ACT REQUIREMENTS.

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

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

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

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

SEC. 4102. FEDERAL AIR MARSHAL TRAINING.

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

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

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

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

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

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

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

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

SEC. 4113. INTERNATIONAL TERRORIST FINANCE COORDINATING COUNCIL.

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

SEC. 4114. DEFINITIONS.

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

TITLE V--GOVERNMENT RESTRUCTURING

Subtitle A--Faster and Smarter Funding for First Responders

SEC. 5001. SHORT TITLE.

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

SEC. 5002. FINDINGS.

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

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

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

``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

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

``TITLE XVIII--FUNDING FOR FIRST RESPONDERS

``SEC. 1801. DEFINITIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 5004. MODIFICATION OF HOMELAND SECURITY ADVISORY SYSTEM.

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

``SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

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

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

SEC. 5005. COORDINATION OF INDUSTRY EFFORTS.

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

SEC. 5006. SUPERSEDED PROVISION.

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

SEC. 5007. SENSE OF CONGRESS REGARDING INTEROPERABLE COMMUNICATIONS.

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

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

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

SEC. 5009. STUDY REGARDING NATIONWIDE EMERGENCY NOTIFICATION SYSTEM.

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

SEC. 5010. REQUIRED COORDINATION.

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

Subtitle B--Government Reorganization Authority

SEC. 5021. AUTHORIZATION OF INTELLIGENCE COMMUNITY REORGANIZATION
PLANS.

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

``Sec. 905. Limitation on authority.

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

``Sec. 913. Application of chapter

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

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

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

SEC. 5025. RESPONSIBILITIES OF COUNTERNARCOTICS OFFICE.

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

``SEC. 878. OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

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

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

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

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

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

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

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

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

Subtitle D--Improvements to Information Securityn Security

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

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

Subtitle E--Personnel Management Improvements

CHAPTER 1--APPOINTMENTS PROCESS REFORM

SEC. 5041. APPOINTMENTS TO NATIONAL SECURITY POSITIONS.

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

SEC. 5042. PRESIDENTIAL INAUGURAL TRANSITIONS.

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

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

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

``TITLE III--INTELLIGENCE PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS

``SEC. 301. PERSONS REQUIRED TO FILE.

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

``SEC. 302. CONTENTS OF REPORTS.

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

``SEC. 303. FILING OF REPORTS.

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

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

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

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

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

``SEC. 306. REVIEW OF REPORTS.

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

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

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

``SEC. 308. AUTHORITY OF COMPTROLLER GENERAL.

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

``SEC. 309. DEFINITIONS.

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

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

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

``SEC. 311. ADMINISTRATION OF PROVISIONS.

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

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

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

SEC. 5045. EFFECTIVE DATES.

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

CHAPTER 2--FEDERAL BUREAU OF INVESTIGATION REVITALIZATION

SEC. 5051. MANDATORY SEPARATION AGE.

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

SEC. 5052. RETENTION AND RELOCATION BONUSES.

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

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

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

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

SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE SERVICE.

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

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

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

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

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

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

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

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

CHAPTER 3--REPORTING REQUIREMENT

SEC. 5061. REPORTING REQUIREMENT.

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

Subtitle F--Security Clearance Modernization

SEC. 5071. DEFINITIONS.

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

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

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

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

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

SEC. 5074. ESTABLISHMENT OF NATIONAL DATABASE .

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

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

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

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

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

SEC. 5077. SECURITY CLEARANCES FOR PRESIDENTIAL TRANSITION.

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

SEC. 5078. REPORTS.

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

Subtitle G--Emergency Financial Preparedness

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

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

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

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

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

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

Subtitle H--Other Matters

Chapter 1--Privacy Matters

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

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

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

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

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

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

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

CHAPTER 2--MUTUAL AID AND LITIGATION MANAGEMENT

SEC. 5101. SHORT TITLE.

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

SEC. 5102. MUTUAL AID AUTHORIZED.

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

SEC. 5103. LITIGATION MANAGEMENT AGREEMENTS.

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

SEC. 5104. ADDITIONAL PROVISIONS.

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

SEC. 5105. DEFINITIONS.

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

Chapter 3--Miscellaneous Matters

SEC. 5131. ENHANCEMENT OF PUBLIC SAFETY COMMUNICATIONS
INTEROPERABILITY.

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

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

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

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

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

SEC. 5134. INFORMATION SHARING.

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

COMMITTEE STATEMENT AND VIEWS

Purpose and summary

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

Background and need for legislation

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

Legislative history

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

SECTION-BY-SECTION

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

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

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

Sec. 1016. Executive schedule matters

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

Sec. 1052. Improvements to the National Flagship Language Initiative

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

Sec. 1056. Pilot project for Civilian Linguist Reserve Corps

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

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

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

Sec. 1062. National Security Agency Emerging Technologies Panel

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

Sec. 1080. Application of other laws

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

Sec. 2121. Bureau of Engraving and Printing security printing

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

Sec. 3051. Definitions

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

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

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

Sec. 3053. Linking of databases

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

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

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

Sec. 3055. Grants to States

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

Sec. 3056. Authority

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

Sec. 3061. Definitions

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

Sec. 3062. Applicability of minimum standards to local governments

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

Sec. 3063. Minimum standards for Federal recognition

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

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

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

Sec. 3065. Electronic verification of vital events

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

Sec. 3066. Grants to States

Sec. 3067. Authority

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

Sec. 5003. Faster and smarter funding for first responders

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

Sec. 5021. Authorization of intelligence community reorganization plans

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

Sec. 5025. Responsibilities of Counternarcotics Office

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

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

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

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

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

Sec. 5041. Appointments to national security positions

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

Sec. 5042. Presidential inaugural transitions

This section would the statute governing presidential
transitions.

Sec. 5043. Public financial disclosure for the intelligence community

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

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

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

Sec. 5045. Effective dates

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

Sec. 5051. Mandatory separation age

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

Sec. 5052. Retention and relocation bonuses

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

Sec. 5053. Federal Bureau of Investigation Reserve Service

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

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

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

Sec. 5061. Reporting requirement

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

Sec. 5071. Definitions

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

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

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

Sec. 5073. Reciprocity of security clearance and access determinations

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

Sec. 5074. Establishment of national database

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

Sec. 5075. Use of available technology in clearance investigations

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

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

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

Sec. 5077. Security clearances for presidential transition

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

Sec. 5078. Reports

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

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

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

Sec. 5134. Information sharing

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

EXPLANATION OF AMENDMENTS

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

COMMITTEE CONSIDERATION

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

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

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

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF THE COMMITTEE

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

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

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

CONSTITUTIONAL AUTHORITY STATEMENT

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

UNFUNDED MANDATE STATEMENT

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

COMMITTEE ESTIMATE

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

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

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

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

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

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

TABLE 1.--BUDGETARY IMPACT OF H.R. 10, THE 9/11 RECOMMENDATIONS
IMPLEMENTATION ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON
GOVERNMENT REFORM
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2005 2006 2007 2008 2009
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION \1\

Estimated Authorization Level... 1,184 5,076 1,393 4,750 5,315
Estimated Outlays............... 558 4,339 2,145 3,319 4,317

CHANGES IN DIRECT SPENDING \2\

Estimated Budget Authority...... * * * * *
Estimated Outlays............... -25 -12 19 10 5
------------------------------------------------------------------------
\1\ These amounts do not include the costs of section 2192 because CBO
cannot estimate such costs at this time. The amounts also exclude the
costs associated with establishing a reserve service within the
Federal Bureau of Investigation. Any such costs would be insignificant
in most years, and CBO has no basis for predicting when a national
emergency would occur.
\2\ These amounts do not include the costs of section 1061 because the
data needed to prepare an estimate are classified.

Note.--* = between zero and -$500,000.

Spending subject to appropriation

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

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

Note.--FBI = Federal Bureau of Investigation.

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

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

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

Direct spending

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

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

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

Intergovernmental mandates with significant costs

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

Mandates with no significant costs

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

MINORITY VIEWS

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

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

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

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

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