Congressional Record: October 10, 2001 (Senate)
Page S10423-S10427




   FEDERAL GOVERNMENT NEEDS STRUCTURAL REORGANIZATION OF THE FEDERAL
                               GOVERNMENT

  Mr. SPECTER. Mr. President, I have sought recognition to discuss the
pending emergency caused by the horrific terrorist attacks on September
11. There is a need for some structural reorganization of the Federal
Government in accordance with the recommendations of a number of
distinguished commissions which have studied these problems and in
accordance with our own findings, as we have worked through the matters
in the Senate Intelligence Committee and the Senate Judiciary
Committee. There is also the need for legislation to expand the powers
of law enforcement on terrorists.
  With respect to the newly created Office of Homeland Security, it is
my thought there needs to be a structure whereby the position is made a
Cabinet position. The Federal Government is fortunate to have secured
the services of former Governor Tom Ridge of Pennsylvania to take on
this responsibility. For the moment, the office has been created in the
executive branch by an Executive Order, and I believe former

[[Page S10424]]

Governor Ridge is correct when he says, even though other Government
officials may not necessarily listen to him if there are turf battles,
they certainly will listen to the President. That, I do believe, is
true, as former Governor Ridge has represented it.
  When we talk about homeland security and that function, we are
talking about something which needs to be institutionalized in order to
go beyond the term of any President, to go beyond the term of any
person who is in charge of that Department, and that, in accordance
with our structure of Government, requires legislative action, in my
judgment. This is something which we will have to work through with
President Bush, with former Governor Ridge, and with the executive
branch. However, I offer these thoughts as many Members of Congress are
now considering this issue and considering legislation.
  Representative Thornberry has already introduced legislation in the
House of Representatives. Senator Lieberman is working on similar
legislation. Senator Robert Graham of Florida is working on
legislation, as well. My staff and I have been in the process of
working on legislation which I am not yet prepared to introduce, but at
the conclusion of these remarks I will ask that draft copies of two
bills be printed in the Record.
  We have had a number of very distinguished commissions analyze these
problems. We have had the Hart-Rudman Commission analyze the problems
directed to a secure national homeland. That commission pointed out
that the keys to prevention are the following tools: 1. diplomacy; 2.
U.S. diplomatic, intelligence, and military presence overseas; 3.
vigilant systems of border security and surveillance. In order to
enhance the effectiveness of the third key, the Hart-Rudman Commission
recommended creating a national homeland security agency which would
consist of the Coast Guard, the Customs Service, the Border Patrol, and
FEMA, the Federal Emergency Management Agency. The legislation I am
submitting today, which is in draft form, would adopt the
recommendations of the Hart-Rudman Commission.
  There has been another distinguished commission, the Brown-Rudman
Commission, which has studied the issues of intelligence and has come
up with a method and a procedure for streamlining and restructuring the
intelligence community.
  One of the considerations is that in many Departments of the Federal
Government, there are smaller intelligence agencies, for example, in
the Departments of Treasury, State, Agriculture, and many other
Departments.
  At the present time, there is no effective way for dealing with all
of these various Departments. The recommendation of the Brown-Rudman
Commission was to consolidate and centralize, to give greater authority
and power to the Director of Central Intelligence. The Director is
charged not only with the operation of the Central Intelligence Agency,
but also with the oversight of all the intelligence functions in the
United States.
  Now, there has admittedly been some gaps and some failures--some
major gaps and some major failures--in these turf battles. During the
1995-1996 session of Congress, I had the privilege of serving as the
Chairman of the Senate Intelligence Committee. I served in that
position for 2 years, in addition to the 6 other years of service on
the Intelligence Committee. There is a term limit of eight years on the
Intelligence Committee. During the course of that work, I saw the turf
battles among the various agencies and became very deeply involved in
the issue of weapons of mass destruction, finding that there were
dozens of agencies dealing with that issue.
  In the Intelligence Authorization Act for Fiscal Year 1996, a
commission was created to study weapons of mass destruction. The
commission was chaired by former CIA Director John Deutch, and I served
as the Vice Chairman of that commission. During the course of the
commission work--work that was very similar to that of the Hart-Rudman
Commission, the Rumsfeld Commission, and the Brown-Rudman Commission--
we noted the difficulties accorded to all of these important
activities. It was the judgment of that commission that the structure
be given to the Vice President of the United States on the ground that
he or she--whoever the Vice President may be--would be the only
individual, except for the President, who could handle intelligence
coordination and the kinds of turf battles which are inevitable when
there are numerous intelligence agencies at the Departments of State,
Defense, Treasury, and Justice.
  So, it is my thought that we need to address the intelligence
function so that we have the appropriate coordination and so that we do
not have somebody on the FBI Watch List who enters the United States,
buys an airplane ticket, and later becomes a terrorist, such as those
that were part of the massive attack on September 11.
  The legislation which I suggest seeks to accomplish a structure for
homeland security and also revises the intelligence functions of the
U.S. Government.
  I ask unanimous consent to submit the text of a draft bill--and I
emphasize that it is a draft because we are working on this with quite
a number of Members--entitled "Homeland Defense Act of 2001." I ask
that this draft bill be printed in the Congressional Record at the
conclusion of these remarks. I further ask unanimous consent that the
text of a draft bill--and again, I emphasize draft because we are still
working on it entitled "Intelligence Reform Act of 2001" be printed
in the Congressional Record at the conclusion of these comments.
  There being no objection, the draft bills were ordered to be printed
in the Record, as follows:

                                 S. --

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. DEPARTMENT OF HOMELAND SECURITY.

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

     SEC. 3. SECRETARY OF HOMELAND SECURITY.

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

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

       The authorities, functions, personnel, and assets of the
     following entities are hereby transferred to the Department
     of Homeland Security:
       (1) The Federal Emergency Management Agency, the ten
     regional offices of which shall be maintained and
     strengthened by the Department.
       (2) The United States Customs Service, which shall be
     maintained as a distinct entity within the Department.
       (3) The Border Patrol of the Immigration and Naturalization
     Service, which shall be maintained as a distinct entity
     within the Department.
       (4) The elements of the Immigration and Naturalization
     Service (other than elements

[[Page S10425]]

     covered by paragraph (3)) responsible for enforcement
     functions.
       (5) The United States Coast Guard, which shall be
     maintained as a distinct entity within the Department.
       (6) The Critical Infrastructure Assurance Office and the
     Institute of Information Infrastructure Protection of the
     Department of Commerce.
       (7) The National Infrastructure Protection Center and the
     National Domestic Preparedness Office of the Federal Bureau
     of Investigation.

     SEC. 5. ESTABLISHMENT OF AGENCIES AND OFFICES.

       (a) Agencies.--The following agencies are hereby
     established within the Department of Homeland Security:
       (1) Agency for prevention.--The Agency for Prevention,
     which shall be responsible for the following:
       (A) Overseeing and coordinating all United States border
     security activities.
       (B) Developing border and maritime security policy for the
     United States.
       (C) Developing and implementing international standards for
     enhanced security in transportation nodes.
       (2) Agency for critical infrastructure protection.--The
     Agency for Critical Infrastructure Protection, which shall be
     responsible for the following:
       (A) Acting as the Critical Information Technology,
     Assurance, and Security Officer of the Department to
     coordinate efforts to address the vulnerability of the United
     States to electronic or physical attacks on critical
     infrastructure of the United States, including utilities,
     transportation nodes, and energy resources.
       (B) Overseeing the protection of such infrastructure and
     the physical assets and information networks that make up
     such infrastructure.
       (C) Ensuring the maintenance of a nucleus of cyber security
     experts within the United States Government.
       (D) Enhancing sharing of information regarding cyber
     security and physical security of the United States, tracking
     vulnerabilities and proposing improved risk management
     policies, and delineating the roles of various government
     agencies in preventing, defending, and recovering from
     attacks.
       (E) Coordinating with the Federal Communications Commission
     in helping to establish cyber security policy, standards, and
     enforcement mechanisms, and working closely with the
     Commission on cyber security issues with respect to
     international bodies.
       (F) Coordinating the activities of Information Sharing and
     Analysis Centers to share information on threats,
     vulnerabilities, individual incidents, and privacy issues
     regarding United States homeland security.
       (G) Assuming the responsibilities carried out by the
     Critical Infrastructure Assurance Office before the date of
     the enactment of this Act.
       (H) Assuming the responsibilities carried out by the
     National Infrastructure Protection Center before the date of
     the enactment of this Act.
       (I) Supporting and overseeing the management of the
     Institute for Information Infrastructure Protection.
       (3) Agency for emergency preparedness and response.--The
     Agency for Emergency Preparedness and Response, which shall
     be responsible for the following:
       (A) Carrying out all emergency preparedness and response
     activities carried out by the Federal Emergency Management
     Agency before the date of the enactment of this Act.
       (B) Assuming the responsibilities carried out by the
     National Domestic Preparedness Office before the date of the
     enactment of this Act.
       (C) Organizing and training local entities to respond to
     emergencies and providing State and local authorities with
     equipment for detection, protection, and decontamination in
     an emergency involving weapons of mass destruction.
       (D) Overseeing Federal, State, and local emergency
     preparedness training and exercise programs in keeping with
     current intelligence estimates and providing a single staff
     for Federal assistance for any emergency (including
     emergencies caused by flood, earthquake, hurricane, disease,
     or terrorist bomb).
       (E) Creating a National Crisis Action Center to act as the
     focal point for monitoring emergencies and for coordinating
     Federal support for State and local governments and the
     private sector in crises.
       (F) Establishing training and equipment standards,
     providing resource grants, and encouraging intelligence and
     information sharing among the Department of Defense, the
     Federal Bureau of Investigation, the Central Intelligence
     Agency, State emergency management officials, and local first
     responders.
       (G) Coordinating and integrating activities of the
     Department of Defense, the National Guard, and other Federal
     agencies into a Federal response plan.
       (H) Coordinating activities among private sector entities,
     including entities within the medical community, with respect
     to recovery, consequence management, and planning for
     continuity of services.
       (I) Developing and managing a single response system for
     national incidents in coordination with the Department of
     Justice, the Federal Bureau of Investigation, the Department
     of Health and Human Services, and the Centers for Disease
     Control.
       (J) Maintaining Federal asset databases and supporting up-
     to-date State and local databases.
       (b) Offices.--The following offices are hereby established
     within the Department:
       (1) Office of science and technology.--The Office of
     Science and Technology, which shall advise the Secretary
     regarding research and development efforts and priorities for
     the agencies established in subsection (a).
       (2) Office of national assessment.--The Office of National
     Assessment, which shall assess and analyze all intelligence
     relating to terrorist threats to the United States.

     SEC. 6. REPORTING REQUIREMENTS.

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

     SEC. 7. COORDINATION WITH OTHER ORGANIZATIONS.

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

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

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

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

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

     SEC. 10. EFFECTIVE DATE.

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


                                 S. --

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

     SECTION 1. SHORT TITLE.

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

                     TITLE I--INTELLIGENCE MATTERS

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

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

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

       (a) Abolishment of Current Positions and Establishment of
     New Positions.--Subsection (b) of section 102 of the National
     Security Act of 1947 (50 U.S.C. 403) is amended by striking
     paragraphs (1) and (2) and inserting the following new
     paragraphs:
       "(1) There is a Deputy Director of Central Intelligence
     for the Intelligence Community, who shall be appointed by the
     President, by and with the advice and consent of the Senate.

[[Page S10426]]

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

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

       Subsection (b) of section 103 of the National Security Act
     of 1947 (50 U.S.C. 403-3) is amended to read as follows:
       "(b) National Intelligence Council.--(1) There is within
     the Office of the Director of Central Intelligence the
     National Intelligence Council (in this section referred to as
     the `Council').
       "(2) The Council shall be composed of the following:
       "(A) The Director of Central Intelligence, who shall act
     as chair of the Council.
       "(B) The Director of the Federal Bureau of Investigation.
       "(C) The Deputy Director of Central Intelligence for the
     Intelligence Community.
       "(D) The Deputy Director of Central Intelligence for the
     Central Intelligence Agency.
       "(E) The Assistant Secretary of Defense for Command,
     Control, Communications, and Intelligence.
       "(3)(A) The staff of the Council shall consist of the
     following:
       "(i) Such staff of the National Intelligence Council as of
     the date of the enactment of the Intelligence Reform Act of
     2001 as the Director of the Central Intelligence shall assign
     to the Council.
       "(ii) The Community Management Staff.
       "(iii) Such other senior analysts within the intelligence
     community, and substantive experts from the public sector or
     private sector, as the Director shall appoint to the Council.
       "(B) The Director shall prescribe appropriate security
     requirements for staff appointed from the private sector as a
     condition of service on the Council, or as contractors of the
     Council or employees of such contractors, to ensure the
     protection of intelligence sources and methods while
     avoiding, wherever possible, unduly intrusive requirements
     which the Director considers unnecessary for this purpose.
       "(4) The Council shall have the following
     responsibilities:
       "(A) To develop a program to improve the human
     intelligence capabilities of the Government, and in
     particular the human intelligence capabilities with respect
     to terrorism, including operational guidelines for activities
     under the program.
       "(B) To develop a program to improve the collection and
     analysis by the Government of information on economic,
     science, and technology matters, including the use of open
     sources.
       "(C) To carry out such other duties relating to the
     intelligence and intelligence-related activities of the
     Government as the Director considers appropriate.
       "(5) The Director shall, on an annual basis, submit to
     Congress a report on the program under paragraph (4)(A). Each
     report shall include a description of activities under the
     program during the preceding year. Each report shall be in
     unclassified form, but may include a classified annex.".

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

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


    "appointment of officials responsible for intelligence-related
                               activities

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

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

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

                    TITLE II--PROLIFERATION MATTERS

     SEC. 201. COORDINATION FOR COMBATING PROLIFERATION.

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


            "national director for combatting proliferation

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

[[Page S10427]]

                 "council on combatting proliferation

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

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

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

       (a) Annual Report.--Beginning not later than 180 days after
     the date of the enactment of this Act, and annually
     thereafter, the President shall submit to Congress a
     consolidated report updating (since submission of the last
     report under this section or, in the case of the initial
     report, since the last relevant report to Congress) the
     nature of the threat of the proliferation of weapons of mass
     destruction and evaluating the progress achieved by the
     United States in responding to that threat.
       (b) Report Elements.--Each report under subsection (a)
     shall include the following:
       (1) An update on nuclear proliferation in South Asia,
     including United States efforts to conclude a regional
     agreement on nuclear nonproliferation.
       (2) An assessment of what actions are necessary to respond
     to violations committed by countries found not to be in full
     compliance with their binding proliferation-related
     commitments to the United States.
       (3) An update on the nuclear programs and related
     activities of any country for which a waiver of sections 669
     and 670 of the Foreign Assistance Act of 1961 is in effect.
       (4) An update on the efforts by countries and sub-national
     groups to acquire chemical and biological weapons, and a
     description of the use of such weapons, if applicable.
       (5) A description of any transfer by a foreign country of
     weapons of mass destruction or weapons of mass destruction-
     related material and technology.
       (6) An update on efforts by the United States to achieve
     several specific nuclear proliferation-related goals,
     including the entry by the United States into multilateral
     negotiations with other nuclear states to reduce the nuclear
     arsenals of all foreign countries.
       (7) An update on the acquisition by foreign countries of
     dual-use and other technology useful for the production of
     weapons of mass destruction.
       (8) A description of the threats posed to the United States
     and its allies by weapons of mass destruction, including
     ballistic and cruise missiles, and the proliferation of such
     weapons.
       (9) A description of the status of United States policy and
     actions with respect to arms control, nonproliferation, and
     disarmament.
       (10) A review of all activities of United States
     departments and agencies relating to preventing nuclear
     proliferation.
       (11) A requirement that the Department of Defense, the
     Department of State, the Department of Justice, the
     Department of Commerce, and the Department of Energy keep the
     congressional committees having oversight responsibilities
     for the respective department fully and currently informed
     about the nuclear proliferation-related activities of such
     department.
       (12) A description of the efforts to support international
     nonproliferation activities.
       (13) An update on counterproliferation activities and
     programs.
       (14) A description of the activities carried out in support
     of counterproliferation programs.
       (c) Repeals.--The following provisions of law are hereby
     repealed:
       (1) Section 620F(c) of the Foreign Assistance Act of 1961.
       (2) Section 51(c) of the Arms Control and Disarmament Act.
       (3) Section 735 of the International Security and
     Development Cooperation Act of 1981 (Public Law 97-113).
       (4) Section 308(a) of the Chemical and Biological Weapons
     Control and Warfare Elimination Act of 1991 (Public Law 102-
     182).
       (5) Section 1097(a) of the National Defense Authorization
     Act for Fiscal Years 1992 and 1993 (Public Law 102-190).
       (6) Section 1321(c) of the National Defense Authorization
     Act for Fiscal Year 1993 (Public Law 102-484).
       (7) Section 721(a) of the Combatting Proliferation of
     Weapons of Mass Destruction Act of 1996 (Public Law 104-293).
       (8) Section 284 of the National Defense Authorization Act
     For Fiscal Year 1998; Public Law 105-85).
       (9) Section 51(a) of the Arms Control and Disarmament Act.
       (10) Section 601(a) of the Nuclear Non-Proliferation Act of
     1978.
       (11) Section 602(c) of the Nuclear Non-Proliferation Act of
     1978 (Public Law 95-242).
       (12) Section 1505(e)(1) of the Weapons of Mass Destruction
     Act of 1992 (Public Law 102-484).
       (13) Section 1503 of the National Defense Authorization Act
     for Fiscal Year 1995 (Public Law 103-337).
       (14) Section 1603(d) of the National Defense Authorization
     Act For Fiscal Year 1994 (Public Law 103-160).

                        TITLE III--OTHER MATTERS

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

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

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