Index

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96-213

108TH CONGRESS

Rept 108-724

HOUSE OF REPRESENTATIVES

2d Session

Part 1

--9/11 RECOMMENDATIONS IMPLEMENTATION ACT

October 4, 2004- Ordered to be printed

Mr. HOEKSTRA, from the Permanent Select Committee on Intelligence, submitted the following

R E P O R T

together with

ADDITIONAL AND DISSENTING VIEWS

[To accompany H.R. 10]

[Including cost estimate of the Congressional Budget Office]

CONTENTS Page
Purpose 142
Summary 143
Committee Action: Background and Need for the Legislation
143
Hearings
147
Committee Consideration
148
Committee Views 148
Section-by-Section Analysis 151
Explanations of Amendments 163
Application of Law to the Legislative Branch 163
Statement of Unfunded Mandates 163
Rollcall Votes 163
Correspondence 168
Statement of Oversight Findings and Recommendations 172
New Budget Authority and Congressional Budget Office Cost Estimate 172
Performance Goals and Objectives 188
Statement of Constitutional Authority 188
Committee Cost Estimate 188
Additional and Dissenting Views 193, 197

SECTION 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.
Sec. 1023. Privacy and Civil Liberties Oversight Board.
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--Restructuring Relating to the Department of Homeland Security and Congressional Oversight
Sec. 5021. Responsibilities of Counternarcotics Office.
Sec. 5022. Use of counternarcotics enforcement activities in certain employee performance appraisals.
Sec. 5023. Sense of the House of Representatives on addressing homeland security for the American people.
Subtitle C--Improvements to Information Security
Sec. 5031. Amendments to Clinger-Cohen provisions to enhance agency planning for information security needs.
Subtitle D--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--Management Authority
Sec. 5061. Management authority.
Subtitle E--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 F--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 G--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.

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.

`NATIONAL INTELLIGENCE DIRECTOR

`RESPONSIBILITIES AND AUTHORITIES OF THE NATIONAL INTELLIGENCE DIRECTOR

`OFFICE OF THE NATIONAL INTELLIGENCE DIRECTOR

`CENTRAL INTELLIGENCE AGENCY

`DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY

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.

`NATIONAL COUNTERTERRORISM CENTER

`Sec. 119. National Counterterrorism Center.'.

SEC. 1022. CIVIL LIBERTIES PROTECTION OFFICER.

SEC. 1023. PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD.

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

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.

`Subtitle A--Science and Technology';

`Subtitle B--Foreign Languages Program

`PROGRAM ON ADVANCEMENT OF FOREIGN LANGUAGES CRITICAL TO THE INTELLIGENCE COMMUNITY

`EDUCATION PARTNERSHIPS

`VOLUNTARY SERVICES

`REGULATIONS

`DEFINITIONS

`Subtitle C--Additional Education Provisions

`ASSIGNMENT OF INTELLIGENCE COMMUNITY PERSONNEL AS LANGUAGE STUDENTS

`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.

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

`NATIONAL VIRTUAL TRANSLATION CENTER

`Sec. 120. 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.

`ADDITIONAL ANNUAL REPORTS FROM THE NATIONAL INTELLIGENCE DIRECTOR'.

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. 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

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

`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.

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

SECTION 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. 1038. False information and hoaxes

`1038. False information and hoaxes.'.

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. 2339D. 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.

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

`Sec. 832. 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.


--------------------------------
--------------------------------
`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.

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

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

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

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

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

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

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.

`(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

`(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.

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. 304 FORMULATION OF LONG-TERM STRATEGY FOR AFGHANISTAN.

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

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.

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

`SEC. 301. ASSISTANCE FOR COUNTERNARCOTICS EFFORTS.

`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.

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.

`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

`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.

SEC. 5004. MODIFICATION OF HOMELAND SECURITY ADVISORY SYSTEM.

`SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM.

`203. 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--Restructuring Relating to the Department of Homeland Security and Congressional Oversight

SEC. 5021. RESPONSIBILITIES OF COUNTERNARCOTICS OFFICE.

`SEC. 878. OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

SEC. 5022. USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN EMPLOYEE PERFORMANCE APPRAISALS.

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

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

SEC. 5023. SENSE OF THE HOUSE OF REPRESENTATIVES ON ADDRESSING HOMELAND SECURITY FOR THE AMERICAN PEOPLE.

Subtitle C--Improvements to Information Security

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

Subtitle D--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.

`TITLE III--INTELLIGENCE PERSONNEL FINANCIAL DISCLOSURE REQUIREMENTS

`SEC. 301. PERSONS REQUIRED TO FILE.

`SEC. 302. CONTENTS OF REPORTS.

`SEC. 303. FILING OF REPORTS.

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

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

`SEC. 306. REVIEW OF REPORTS.

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

`SEC. 308. AUTHORITY OF COMPTROLLER GENERAL.

`SEC. 309. DEFINITIONS.

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

`SEC. 311. ADMINISTRATION OF PROVISIONS.

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

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

SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE SERVICE.

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

`Sec. 3598. Federal Bureau of Investigation Reserve Service

`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.

CHAPTER 3--MANAGEMENT AUTHORITY

SEC. 5061. MANAGEMENT AUTHORITY.

Subtitle E--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 F--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 G--Other Matters

CHAPTER 1--PRIVACY MATTERS

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

`Sec. 553a. Privacy impact assessment in rulemaking

553a. Privacy impact assessment in rulemaking.'.

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.

PURPOSE

H.R. 10, the `9/11 Recommendations Implementation Act,' will help fulfill the constitutional responsibility of the Federal Government by improving the security of the United States by strengthening the organizations and authorities of the United States Intelligence Community. The `9/11 Recommendations Implementation Act' will provide for Intelligence Community and other government agency reform, improve terrorism prevention and prosecution, increase border security, and enhance international cooperation and coordination. The overall goals of this legislation are to prevent terrorist attacks against the United States and its interests and to better position our vital Intelligence Community to meet the global threats of the future. This is historic legislation the Committee believes should be supported in the bipartisan manner in which it is intended.

SUMMARY

Title I of this Act provides for Intelligence Community reform through the establishment of a strong National Intelligence Director with improved authority to manage and coordinate the Intelligence Community. The National Intelligence Director will serve as the head of the Intelligence Community and as the principal advisor on intelligence matters to the President. The NID's primary responsibility will be to coordinate the efforts of foreign and domestic intelligence functions. To accomplish these tasks effectively, the National Intelligence Director will have clear authority over Intelligence Community budgets, personnel, collection activities, all-source analysis, information classification, information sharing, and information management technologies and standards. To assist the National Intelligence Director in the fight against terror, a National Counterterrorism Center, responsible for analyzing and integrating all intelligence relating to terrorism and counterterrorism, will be established within the Office of the National Intelligence Director.

COMMITTEE ACTION

Background and Need for the Legislation

The current United States Intelligence Community was not created, and does not operate efficiently, as a single, tightly knit organization. The National Security Act of 1947, which established the Central Intelligence Agency (CIA), did not define an `Intelligence Community' or specify a unified management structure for coordinating the capabilities of the other intelligence agencies which existed at that time. As additional intelligence agencies came into existence during subsequent years, the Intelligence Community evolved into today's loose confederation of fourteen separate agencies and activities with distinctly different histories and missions with no clear leadership line of command. Despite a poorly defined community management structure, the United States has had some success operating these agencies as a unified team; however, overall, the limited management definition has created significant operational inefficiencies.

The Executive and Legislative branches of the Federal Government have long recognized the complexities and inherent inefficiencies in the Intelligence Community's organizational structure. Beginning in 1948, less than a year after the inception of the Central Intelligence Agency (CIA), and numerous times since, independent commissions, individual experts, and legislative initiatives examined the growth and evolving missions of the Intelligence Community. Proposals by these various reviews have sought to address the identified shortcomings in the Intelligence Community's structure, management, roles, and missions. Proposals have ranged in scope from basic organizational restructuring to the dissolution of the CIA. While many improvements have been implemented, including the establishment of congressional committees dedicated to oversight of intelligence issues in 1976 and 1977, the Intelligence Community entered the 1990's as a loose federation under the relatively weak authority of the Director of Central Intelligence (DCI).

The end of the Cold War, during the early 1990's, had a profound impact on the United States Intelligence Community. Overall, the Intelligence Community was significantly reduced in size and budget (nearly 30 percent by many estimates). Even as

priorities were shifted away from the Soviet Union and its Warsaw Pact allies, new transnational threats arose. Political, economic and technological priorities changed and the Intelligence Community was forced to operate against these new threats with limited resources and a large, unwieldy infrastructure that had evolved as an entity focused on a monolithic Soviet military threat. Emerging transnational threats like terrorism, international crime and proliferation of weapons of mass destruction placed new stress on the analytic, foreign language and information collection capabilities of the various agencies of the Intelligence Community. At the same time, the disparate personnel, training and collection priorities hampered the ability of these many agencies to effectively work together to affect change.

Among others, the Congress recognized those challenges and initiated several comprehensive studies dealing with Intelligence Community reform. Starting in 1992, a watershed year for change in U.S. intelligence, the congressional oversight committees proposed a sweeping reorganization of the Community. Reflecting the changed situation of the post-Cold War world, the two committees announced separate plans for an omnibus restructuring of the US Intelligence Community to serve as a counterpart to the Goldwater-Nichols Department of Defense Reorganization Act of 1986. Both proposals called for creation of a Director of National Intelligence with full budget, tasking and personnel authority over all Intelligence Community agencies. The proposals also recommended creating a separate Director of the CIA and two Deputy Directors for National Intelligence; consolidating Intelligence Community analytic efforts, creating a National Imagery Agency within the Department of Defense, and authorizing the Director of National Intelligence to task defense intelligence agencies. Although the legislation was not fully adopted, some provisions, including providing basic charters for Intelligence Community agencies and establishing in law the DCI's coordination responsibilities, were added to the `Intelligence Authorization Act of 1994.'

The 1994 change in congressional leadership spurred two major efforts to assess the reforms needed to help the Intelligence Community meet the challenges of the 21st century. One study, the Commission on the Roles and Capabilities of the US Intelligence Community, was directed by Congress in 1995 to determine if the existing US intelligence apparatus was still necessary, what requirements it would need to satisfy in the future, how it should be organized and what it would cost. The Report of the Commission, entitled `Preparing for the 21st Century: An Appraisal of U.S. Intelligence,' made a number of recommendations regarding the organization of the Intelligence Community. In addition to proposing structural changes to the National Security Council staff, the Commission recommended the establishment of two Deputy Directors of Central Intelligence (DCI)-one to manage the Intelligence Community and one for day-to-day management of the Central Intelligence Agency. Under the recommendations, the Intelligence Community DCI would be given enhanced powers to manage personnel and the budget. The Commission also proposed a realignment of the intelligence budget to eliminate the focus on organizational budgets by moving to an intelligence discipline (signal intelligence, imagery intelligence, etc.) budgeting format. Finally, the Commission urged improved information sharing between the law enforcement and intelligence communities.

Almost simultaneously with the Commission on the Roles and Capabilities of the US Intelligence Community, in 1995-1996, the House Permanent Select Committee on Intelligence undertook its own extensive review of intelligence issues-the `Intelligence Community in the 21st Century (IC21)' study. The overarching result of this study was the need for a more corporate, or joint, Intelligence Community. The vision was to develop a collection of agencies that viewed themselves as part of a larger, coherent process aimed at a single goal: the delivery of timely intelligence to policy makers at various levels. To achieve this vision, IC21 made several specific recommendations to improve Intelligence Community management including: granting the Director of Central Intelligence (DCI) greater authority in personnel appointments and Intelligence Community budget/personnel issues; establishing a Committee on Foreign Intelligence within the National Security Council; establishing two new Deputy Directors of the CIA and a Community Management Staff with Intelligence Community-wide authority over resources; and appointing a uniformed military officer with authority to manage defense intelligence programs. IC21 also made several recommendations to improve technical collection and human collection management, technology development and congressional oversight.

The results of the Commission on the Roles and Capabilities of the US Intelligence Community and the IC21 study spurred extensive congressional consideration of Intelligence Community issues. The `Intelligence Authorization Act of 1997' included, as its Title VIII, the `Intelligence Renewal and Reform Act of 1996'. The Act reorganized the community to include two new Deputy DCI positions, one to support the DCI and the other for Community Management issues, to include resource management. In addition, the legislation provided for three assistant DCIs--for Collection, for Analysis and Production, and for Administration. The Act enhanced the authority of the DCI by requiring that the DCI concur in the appointment of the Director of three major defense intelligence agencies (the National Security Agency, the National Reconnaissance Organization and the National Geospatial Agency) and that the DCI be consulted on the appointment of the heads of various other intelligence agencies. It also gave the DCI the authority to develop and present to the President an annual budget for the National Foreign Intelligence Program and to participate in the development of the military intelligence budgets. Finally, this legislation gave the DCI the authority to approve collection requirements and to determine the collection priorities for national intelligence systems.

Tragically, the September 11, 2001, terrorist attacks highlighted deficiencies, many identified in the various earlier studies, in the performance of the Intelligence Community. To fully identify the deficiencies and the possible corrective actions, two new studies, the congressional Joint Inquiry into the Terrorist Attacks of September 11, 2001, and the National Commission on Terrorist Attacks Upon the United States, were undertaken.

In February 2002, the House Permanent Select Committee on Intelligence and the Senate Select Committee on Intelligence authorized an investigation, to be conducted as a

joint inquiry, into the Intelligence Community's activities before and after the September 11, 2001, terrorist attacks against the United States. This bicameral investigation sought to identify what the Intelligence Community knew or should have known regarding those attacks prior to September 11th, the nature of any systemic problems that may have impeded the Community's ability to prevent those attacks, and recommendations for reform to improve the Community's ability to uncover and prevent similar attacks in the future.

The work of the Joint Inquiry confirmed that, although the Intelligence Community had some relevant information that was, in retrospect, significant regarding the September 11th attacks, the Community too often failed to focus on the information and to appreciate its collective significance in terms of a probable terrorist attack. The Inquiry's factual record identified not only the information that was misinterpreted or overlooked, but also a number of systemic weaknesses that contributed to the Community's inability to detect and prevent the attacks. These included a lack of sufficient focus on the potential for a dramatic domestic attack, a lack of a comprehensive counterterrorist strategy, insufficient analytic focus and quality, a reluctance to aggressively develop and implement new technical capabilities, and inadequate sharing of relevant counterterrorism information. To correct such deficiencies, the final report in December 2002 included nineteen recommendations for reform, including such things as the creation of a cabinet-level Director of National Intelligence and prompt consideration of whether the FBI, or a new agency, should perform the domestic intelligence functions of the U.S. Government.

Recognizing the need for a broader review of 9/11 beyond the Intelligence Community, Congress created the National Commission on Terrorist Attacks upon the United States, referred to as `The 9/11 Commission,' to `make a full and complete accounting of the circumstances surrounding the attacks, and the extent of the preparedness of the United States' for, and the immediate response to, the attacks' and to make `recommendation for corrective action measures that can be taken to prevent acts of terrorism.'

The 9/11 Commission completed its review in July 2004 and shortly thereafter issued its final report, entitled, `The 9/11 Commission Report: Final Report of the National Commission on Terrorist Attacks Upon the United States.' The 9/11 Commission issued 41 recommendations to help prevent future terrorist attacks. These recommendations fell into two broad categories: developing a global strategy to combat terrorism, and then reorganizing government to implement the strategy. The recommendation to reorganize the government further broke down into efforts to unify structures and missions to improve communication, coordination, and the flow of information to key focal points in government.

Following the release of the 9/11 Commission Report, the House of Representatives conducted 20 hearings, three of which were held by the House Permanent Select Committee on Intelligence regarding the Commission's recommendations. Based on these congressional hearings, H.R. 10, the `9/11 Recommendations Implementation Act,' was introduced on September 24, 2004. Faithfully responding to the recommendations of the 9/11 Commission, key aspects of this legislation include the creation of a National Intelligence Director (NID) with enhanced budget and management authorities. The NID is made responsible for strengthening the accuracy of intelligence analysis, and for ensuring the sufficiency and quality of human intelligence. The NID is made the principal authority to ensure intelligence information is shared more effectively among the agencies of the US Government. The bill also creates the National Counterterrorism Center (NCTC) to serve as the primary organization for analyzing and integrating all intelligence pertaining to terrorism and counterterrorism.

It is vital that Intelligence Community reform better align US resources and management authorities to effectively target both the terrorist threats of today as well as future threats to the nation's national security. The new perspective on national security is that intelligence is the first line of defense against an elusive and unstructured threat that uses asymmetric means to harm America. H.R. 10, as amended, recognizes this new perspective and provides the framework for better responding to these difficult threats.

Hearings

Since the beginning of the 107th Congress, the Permanent Select Committee on Intelligence has held 13 budget-related and numerous other hearings to address the state of health of the Intelligence Community, counter-terrorism efforts, and the Director of Central Intelligence's views and plans for the future of intelligence and the Intelligence Community.

The Joint Inquiry Committee, comprised of Members of the House Permanent Select Committee on Intelligence and the Senate Select Committee on Intelligence, held nine public hearings and thirteen closed sessions. In December 2002, both Intelligence Committees approved, by separate votes, the Final Report of the Joint Inquiry.

Following the release of the National Commission on Terrorist Attacks upon the United States Report (The 9/11 Commission) in July 2004, the House Permanent Select Committee held two open hearings and one closed hearing to review the Commission's findings and recommendations.

On August 4, 2004, the Committee held an open hearing. Testimony was received from ten witnesses: the Honorable Dr. John J. Hamre, Former Deputy Secretary of Defense; LTG William E. Odom (USA, Ret.), Former Director of National Security Agency; Mr. Michael O'Hanlon, Military Analyst, Brookings Institute; Dr. James J. Carafano, the Heritage Foundation; Mr. Timothy Edgar, American Civil Liberties Union; Ms. Jami A. Miscik, Deputy Director of Intelligence, CIA; Charles Allen, Assistant Director of Central Intelligence for Collection; Mark Lowenthal, Assistance Director of Central Intelligence, Analysis and Production; Ms. Maureen A. Baginski, Executive Assistant Director, Office

of Intelligence, FBI; and Ambassador J. Cofer Black, Coordinator, Office of the Coordinator for Counterterrorism, Department of State.

On August 11, 2003, the Committee held its second open hearing. Testimony was received from five witnesses: the Honorable Thomas Kean, Chairman of the 9-11 Commission; the Honorable Lee Hamilton, Vice Chair of the 9-11 Commission; the Honorable Newt Gingrich, Senior Fellow, American Enterprise Institute, Former Speaker of the House; the Honorable Larry D. Thompson, Senior Fellow, Brookings Institute, Former Deputy Attorney General; and the Honorable Edwin Meese III, Ronald Reagan Distinguished Fellow in Public Policy, the Heritage Foundation, Former Attorney General.

On August 18, 2004, the Committee held a closed hearing. Testimony was received from nine witnesses: the Honorable John E. McLaughlin, Director of Central Intelligence (Acting); the Honorable Steven Cambone, Undersecretary of Defense for Intelligence; Lt. Gen Michael V. Hayden (USAF), Director, National Security Agency; Vice Admiral Lowell E. Jacoby, Director, Defense Intelligence Agency; Mr. Peter Teets, Director, National Reconnaissance Office; Lt. Gen James R. Clapper, Jr. (USAF, Ret.), Director, National Geospatial-Intelligence Agency; Mr. John S. Pistole, Executive Assistant Director for Counterterrorism and Counterintelligence, FBI; and other Intelligence Community officials involved in counterterrorism efforts.

Committee consideration

On September 29, 2004, the Permanent Select Committee on Intelligence met in open session and ordered favorably reported the bill, H.R. 10, as amended, by roll call vote, a quorum being present. The Committee's consideration was limited to the provisions of the bill within the Committee's jurisdiction, namely Title I (Reform of the Intelligence Community) in its entirety; Title III (Border Security and Terrorist Travel), specifically Subtitle D (Terrorist Travel); and Title V (Government Restructuring), specifically Subtitle B (Government Reorganization Authority) and Subtitle F (Security Clearance Modernization).

COMMITTEE VIEWS

H.R. 10 reforms the Intelligence Community of the United States, improves the nation's ability to prevent and prosecute terrorism, enhances border security, international security cooperation and coordination, and other initiatives to protect the United States and its citizens.

The bill is historic. It contains what may prove to be the most sweeping reform of the United States Intelligence Community since the National Security Act of 1947. There have not been such truly substantive improvements to the overall management structure of the nation's Intelligence Community in 55 years. As a primary goal, the legislation creates a National Intelligence Director with dramatically enhanced authorities and capabilities to manage and coordinate the disparate efforts of all the various intelligence components and elements of the United States government. H.R. 10 makes a tremendous move forward in providing better intelligence to national policymakers and, just as importantly, to our military personnel engaged around the world.

The bill provisions are rooted in recommendations of many studies of the Intelligence Community dating back to 1992, and most directly address the recommendations offered by the National Commission on Terrorist Attacks Upon the United States, popularly known as the `9/11 Commission.' The Committee thoroughly reviewed the 9/11 Commission's findings and has faithfully attempted to provide the new National Intelligence Director (NID) with the authorities the Commission recommended in the wake of the terrorist attacks on the United States. The only notable exceptions are in the recommendation to declassify the national intelligence budget and where within the Executive branch the Office of the National Intelligence Director would reside.

The Committee critically reviewed the potential ramifications of declassifying the top line of the budget and, consistent with past votes in the House of Representatives, believes that the negative consequences of such a move outweigh any possible benefits. The Committee also determined that in order to keep intelligence support independent of policy development the Office of the NID should not be located within the Executive Office of the President. In virtually every other respect, however, the Committee has attempted to implement the legislative changes recommended by the Commission.

The Committee firmly believes that this legislation will empower the National Intelligence Director to make a significant improvement in the coordination and management the intelligence efforts of the federal government. It is not, however, under the false impression that, by themselves, these structural changes and enhanced authorities will ensure perfect knowledge about our enemies and their intentions in the future. Those that would do America harm are clever, they are very secretive, and the asymmetric threats that they can both imagine and implement require us to be many times better at defense than our enemies need be at offense. Intelligence support to our defense therefore can never be expected to be perfect. Nonetheless, the improvements in structure and authority provided in this bill will make significant improvements in the outcomes of our intelligence analysis, collection and dissemination.

Some will debate the specific meaning of individual words in the text of the bill. Rather than focusing on such semantic shadings where they may have little practical impact, however, the Committee believes that it is far more important to focus on the intent of the bill. The Committee intends to ensure the strongest, most empowered intelligence director possible. Along with other national security and law enforcement committees of the House, the Committee has crafted a very strong bill to provide the necessary authorities to the new Intelligence Director; fully consistent with the recommendations suggested by the 9/11 Commission and other reviews.

This legislation contains five major improvements to current law:

First and foremost, the Committee creates an empowered National Intelligence Director, who is the head of the Intelligence Community and the principal advisor to the President on all intelligence matters. Because this individual is intended to direct the overall Intelligence Community, this new position will be separated from that of the Director of the Central Intelligence Agency.

Second, the Committee provides the new National Intelligence Director with enhanced management authorities to coordinate and manage all aspects of intelligence operations as well as improved authorities over, and control of, intelligence budgets. These new authorities are unprecedented and strike a careful balance between the equities of the National Intelligence Director and the heads of the departments that contain the elements of the Intelligence Community.

Third, the Committee vests in the National Intelligence Director the responsibility and authority to dramatically improve information sharing of intelligence across the government. This includes the ability to implement an integrated information technology network and establish uniform security standards that can break down stovepipes and promote the fullest information sharing possible.

Fourth, the Committee makes the National Intelligence Director responsible for strengthening intelligence analysis across the Community, and for ensuring the sufficiency and quality of human intelligence and other intelligence capabilities. This responsibility will require the Director to focus more attention to a better balancing of all our national and tactical intelligence capabilities and, therefore, more attention to the proper application of fiscal resources across the Community. For that reason, the Committee has provided greater responsibility to the National intelligence Director to oversee the budgets of the Intelligence Community.

Finally, the Committee created a National Counterterrorism Center in the office of the National Intelligence Director. This center will be responsible for analyzing and integrating all intelligence pertaining to terrorism and counter-terrorism. It will also be responsible for strategic planning and integration of all instruments of national power to detect, deter and disrupt terrorist activities.

While providing for the improved ability of the National Intelligence Director to coordinate all aspects of the nation's intelligence capabilities, the Committee has also taken great care to ensure that the civil liberties of United States citizens are protected. This legislation, for example, creates a Civil Liberties Protection Officer, within the Office of the NID, and a Privacy and Civil Liberties Oversight Board within the Intelligence Community. The purpose of both is to ensure that the activities of the Intelligence Community do not violate the constitutionally guaranteed rights and privileges of U.S. citizens.

Finally, it bears emphasis that the legislation goes beyond the various commission recommendations to do more than simply improve intelligence structure. The Committee has, for example, included several provisions to dramatically improve Intelligence Community training and education, particularly in the areas of foreign language expertise and analyst proficiency.

H.R. 10 is real reform of the Intelligence Community. It makes fundamental changes that will improve the intelligence efforts and information sharing of the United States government. This is historic legislation that the Committee believes should be supported in a bipartisan manner.

SECTION-BY-SECTION ANALYSIS

The following is a section-by-section analysis of those sections of H.R. 10 considered by the House Permanent Select Committee on Intelligence:

SEC. 1 SHORT TITLE

This section identifies the legislation as the `9/11 Recommendations Implementation Act of 2004.'

Sec. 2. Table of contents

This section contains the table of contents for this Act.

TITLE I: REFORM OF THE INTELLIGENCE COMMUNITY

Sec. 1001. Short title

This section identifies this title 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

This section amends the National Security Act of 1947 by deleting existing sections 102 through 104 and replacing them with the following sections 102, 102A, 103, 103A, 104 and 104A.

This section amends Section 102 of the National Security Act of 1947 to create the presidentially-appointed, senate-confirmed position of National Intelligence Director (NID), a position that shall not be located within the Executive Office of the President. It establishes the duties of the National Intelligence Director, which include serving as head

of the Intelligence Community and the principal intelligence advisor to the President and other designated officials. The Director is also tasked to manage and oversee the execution of the National Intelligence Program (NIP). It prohibits the NID from simultaneously serving as the Director of the Central Intelligence Agency or as the head of any other element of the Intelligence Community.

This section also amends Section 102A of the National Security Act of 1947 to specify the authorities and responsibilities of the National Intelligence Director. The NID shall: have access, to the extent approved by the President, to all national intelligence and intelligence related to national security; develop and present the annual budget for the National Intelligence Program; participate in the development by the Secretary of Defense of the annual budgets for the JMIP and TIARA; facilitate the management and execution of NIP funds; monitor the implementation and execution of the NIP by the heads of Intelligence Community elements; have the authority, with the approval of the Director of OMB, to reprogram or transfer funds within the NIP in accordance with existing congressional notification procedures applicable to reprogramming; and have acquisition authority over all NIP procurements and contracts. Additionally, the NID has the authority to develop collection objectives, priorities and guidance for the Intelligence Community; determine and establish requirements priorities for, and manage and direct the tasking of, collection, analysis, production and dissemination national intelligence; approve requirements for collection and analysis; resolve conflicts in collection requirements and in tasking of national collection assets; and provide advisory tasking to intelligence elements not within the NIP. In addition, this section levies specific responsibilities on the NID to include: providing timely, objective, all-source national intelligence to military and civilian leaders in the Executive Branch; ensuring reinvigorating analysis through new all-source techniques, analytic competition and allowing room for diversity; protecting intelligence sources and methods; providing uniform measures for sensitive compartmented information; coordinating with the intelligence agencies or services of foreign governments, considering the views of other elements within the Intelligence Community; building a personnel system that encourages joint Intelligence Community assignments, assignments to the Office of the NID and personnel rotation between agencies; and ensuring maximum availability and access to intelligence information within the Intelligence Community.

This section also amends Section 103 of the National Security Act of 1947 to establish the Office of the National Intelligence Director to assist the NID in performing his duties. It establishes and specifies the responsibilities for the following positions: a presidentially-appointed, senate confirmed Deputy National Intelligence Director; Deputy National Intelligence Director for Operations; Deputy National Intelligence Director for Community Management and Resources, Associate National Intelligence Director for Military Support, Associate National Intelligence Director for Domestic Security, Associate National Intelligence Director for Diplomatic Affairs, a National Intelligence Council, and the General Counsel to the National Intelligence Director. This section encourages the appointment of a uniformed military officer or individual with significant military experience to either the National Intelligence Director or the Deputy National Intelligence Director positions; however it specifically prohibits both positions from being held, simultaneously, by a member of the military. This section also specifies the appointment of an Intelligence Community Information Technology Officer who will be responsible for ensuring the sharing of information between all elements of the Intelligence Community including assisting in the development of an integrated technology network and an enterprise architecture.

This section amends Section 104 of the National Security Act of 1947 to establish that the Central Intelligence Agency shall assist the Director of the Central Intelligence Agency (vice the Director of Central Intelligence) in carrying out the duties assigned to the Director of the Central Intelligence Agency in Section 104A(c).

This section amends the National Security Act of 1947 to create Section 104A which establishes that the Director of the Central Intelligence Agency shall be presidentially-appointed, with the advice and consent of the Senate. This section also outlines the duties and responsibilities of the Director of the Central Intelligence Agency to include collection of intelligence through human sources, overall direction and guidance for Intelligence Community-wide human source collection, and evaluation/dissemination of intelligence products. The Director of the CIA shall serve under the direction and control of the National Intelligence Director. This section also establishes the position and responsibilities of Deputy Director of the Central Intelligence Agency, who shall be appointed by the President. This section directs the Senate to dispose of the initial NID appointment within a period of 30 legislative days. If the Senate does not dispose of the nomination within the 30 day period, then Senate confirmation is not required and the nominated NID may take office upon effect of the administration oath of office.

7EC. 1012. REVISED DEFINITIONS OF NATIONAL INTELLIGENCE

This section defines `national intelligence' and `intelligence related to national security' to refer to all intelligence, regardless of source and including information collected both domestically and overseas, that involves threats to the United States, its people, property or interests; the development or use of weapons of mass destruction; or any other matter bearing on the United States national or homeland security.

Sec. 1013. Joint procedures for operational coordination between Department of Defense and Central Intelligence Agency

This section tasks the National Intelligence Director, in consultation with the Secretary of Defense and the Director of CIA, with establishing procedures and policies for operational coordination between the Department of Defense (DoD) and the CIA. The procedures must contain, at a minimum, methods by which the DoD and the CIA can improve communication and coordination in planning, executing and sustaining operations; senior level information exchanges upon the commencement of operational planning; and methods for the Secretary of Defense and the Director of the Central Intelligence Agency to ensure mutual knowledge of on-going operational missions.

Within 180 days of the enactment of this Act, the NID shall submit a report to the appropriate Congressional committees describing these new coordination procedures.

Sec. 1014 Role of National Intelligence Director in appointment of certain officials responsible for intelligence-related activities

This section amends Section 106 of the National Security Act of 1947 to enable the NID to recommend to the President individuals for appointment as the Deputy NID and the Director of the CIA. In addition, the NID must concur, with the SecDef, in the selection of a new head of the National Security Agency, National Reconnaissance Office, and the National Geospatial-Intelligence Agency. The NID shall be consulted on the selection of the heads of the Director of the Defense Intelligence Agency, Assistant Secretary of State for Intelligence and Research, Director of the Office of Intelligence of the Department of Energy, Director of the Office of Counterintelligence of the Department of Energy, Assistant Secretary for Intelligence and Analysis of the Department of the Treasury, Executive Assistant Director for Intelligence of the Federal Bureau of Investigation, Undersecretary of Homeland Security for Information Analysis and Infrastructure Protection, and the Deputy Assistant Commandant of the Coast Guard for Intelligence.

Sec. 1015. Initial appointment of the National Intelligence Director

This section stipulates that, upon enactment of this Act, the President may direct that the individual serving as Director of the CIA become the National Intelligence

Director. It also reconciles references in existing law and other materials to the Director of Central Intelligence and other officials to the new positions created elsewhere in the bill.

Sec. 1016. Executive schedule matters

This section establishes the executive schedule status of the National Intelligence

Director and his Deputy.

Subtitle B. National Counterterrorism Center and Civil Liberties Protections

Sec. 1021. National Counterterrorism Center

This section amends the National Security Act of 1947 to create Section 119 which establishes a National Counterterrorism Center (NCTC) within the Office of the National Intelligence Director in accordance with the central recommendation of the 9/11

Commission. The Director of the NCTC shall be appointed by the NID. The NCTC is to be the primary governmental organization tasked with analyzing and integrating all intelligence on matters of terrorism and counterterrorism, as well as conducting strategic operational planning for counterterrorist activities. The National Counterterrorism Center shall support operational responsibilities of agencies who are engaged in counterterrorism activities; however, the Director of the National Counterterrorism Center may not direct the execution of counterterrorism operations. This section establishes a Directorate of Intelligence and a Directorate of Strategic Planning within the National Counterterrorism

Center.

Sec. 1022. Civil Liberties Protection Officer

This section creates a Civil Liberties Protection Officer, appointed by the National

Intelligence Director, within the Office of the NID. The Civil Liberties Protection

Officer shall: ensure that protection of civil liberties is appropriately incorporated into the policies and procedures of the Intelligence Community; oversee compliance by the Office of the NID with all requirements under the Constitution; review and assess possible abuse complaints; ensure that new technologies sustain privacy protections; ensure that personal information is handled in full compliance with fair information practices; and conduct privacy impact assessments when necessary. The Civil Liberties Protection Officer may direct the Inspector General of the appropriate agency to conduct investigations or privacy assessments.

Sec. 1023. Privacy and Civil Liberties Oversight Board

THIS SECTION ESTABLISHES A PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD. THE

Board will be comprised of five individuals, including a Chairman, who shall be appointed by the President upon the recommendation of the NID. The Board will be responsible for ensuring that concerns with respect to civil liberties and privacy are appropriately considered in the development and implementation of laws, regulations and policies related to the efforts of the Intelligence Community. The Board will review the implementation of new and existing Intelligence Community legislation and policies, advise the NID and other heads of Federal executive agencies or departments on civil liberties issues, and review the intelligence information sharing practices of the Intelligence Community to determine whether they appropriately protect privacy and civil liberties issues. To carry out its mission, the Board may request that the NID secure all relevant documented information, including classified information consistent with applicable laws. In addition, the Board may interview personnel from any element of the Intelligence Community. The Board is responsible for preparing and submitting to the NID and the Congress an annual report detailing the major activities of the Board during the reporting period and any findings, conclusions or recommendations.

SUBTITLE C. JOINT INTELLIGENCE COMMUNITY COUNCIL

Sec. 1031. Joint Intelligence Community Council

This section establishes the Joint Intelligence Community Council which will provide advice to the National Intelligence Director as appropriate. The Joint

Intelligence Community Council shall consist of: National Intelligence Director, who will serve as chair; the Secretary of State; the Secretary of Treasury; the Secretary of Defense; the Attorney General; the Secretary of Energy; the Secretary of Homeland

Security; and such other executive branch officials as the President may designate.

Intelligence Community Council shall consist of: National Intelligence Director, who will serve as chair; the Secretary of State; the Secretary of Treasury; the Secretary of Defense; the Attorney General; the Secretary of Energy; the Secretary of Homeland Security; and such other executive branch officials 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

This section states that it is the sense of Congress that the human intelligence officers of the Intelligence Community have performed admirably in the face of great personal dangers. Furthermore, while human intelligence is vital to counter the current asymmetric threats to U.S national security, in the recent past, the resources devoted to human intelligence collection were not commensurate with the current threat. Therefore, there exists a continued need to place increased emphasis and resources on developing a robust, empowered and flexible human intelligence work force.

Sec. 1042. Improvement of human intelligence capacity

This section tasks the Director of National Intelligence to submit to Congress, not later than six months after the date of enactment of this bill, a plan to enhance the capacity and quality of human intelligence collection across the Intelligence Community. Given our longstanding concern, expressed in the findings and recommendations of various studies such as the 1996 Intelligence Community in the 21st Century study and the 2002 Joint Inquiry into the Intelligence Community Activities before and after the Terrorist Attacks of September 11, 2001, with human intelligence collection capabilities and capacities, the intent of this section is to develop a viable plan to accelerate improvements to our vital HUMINT collection.

SUBTITLE E: IMPROVEMENT OF EDUCATION FOR THE INTELLIGENCE COMMUNITY

Sec. 1051. Modification of obligated service requirements under National Security Education Program

This section amends Section 802 of the David L. Boren National Security Education Act of 1991 to expand the options under which recipients of National Security Education Program scholarships and fellowships are permitted to fulfill their Federal service obligation. Included among the repayment options are positions requiring language and regional expertise in the Department of Defense, any element of the Intelligence Community, the Department of Homeland Security, or the Department of State. If an appropriate position is not available in any of these agencies, service in another Federal department or agency is authorized. Each individual receiving a scholarship, grant or fellowship from NSEP is required to provide government service in a timely manner, but in no case later than two years after the completion by such individual.

Sec. 1052. Improvements to the National Flagship Language Initiative

This legislation authorizes the expansion of the National Flagship Language Initiative. This section increases the number of participating institutions that accept individuals already possessing language skills and improving those skills to a high proficiency, and authorizes an appropriation of $12,000,000 for fiscal year 2005 to support these activities. Flagship activities can include language and cultural immersion overseas. Individuals who receive advanced language training under this program are required to perform service utilizing their enhanced skills in an approved Federal agency.

Sec. 1053. Establishment of scholarship program for English language studies for heritage community citizens of the United States within the National Security Education Program

This section amends Section 802(a)(1) of the David L. Boren National Security Education Act of 1991 to establish a scholarship program for English language studies for members of the U.S. heritage communities who are interested in service to the nation, already possess fluency in a language critical to U.S. national security, but who are not proficient to a professional level in the English language.

This section also amends Section 812 of the David L. Boren National Security Education Act of 1991 to authorize an appropriation of $4,000,000 for fiscal year 2005 for the scholarship program established in Section 802(a)(1)(E) of that Act.

Sec. 1054. Sense of Congress with respect to language and education for the Intelligence Community; reports

This section states that it is the sense of Congress that the National Intelligence Director should establish a senior position responsible for foreign language and training, ensuring that the foreign language requirements of the Intelligence Community are met.

The section also identifies a number of related reports that the National Intelligence Director is to submit to the Congress not later than one year after the date of enactment.

Sec. 1055. Advancement of foreign languages critical to the Intelligence Community

This section amends Title X of the National Security Act of 1947 to include the following subtitles:

Subtitle A--Science and Technology

Subtitle B--Foreign Languages Program authorizes the National Intelligence Director and the Secretary of Defense to establish a program dedicated to the advancement of languages critical to the security of the United States. In furtherance of this program, the heads of elements in the Intelligence Community can establish partnerships with educational institutions, and can provide equipment, curriculum development, language instruction, career advice, and cash awards. In furtherance of this program, the volunteer services of current employees of the Federal Government or former civilian or military personnel can be drawn upon.

Subtitle C--Additional Education Provisions gives the National Intelligence Director the authority to provide language training to those individuals in the Intelligence Community whose positions require proficiency in a foreign language, and to provide reimbursement for the costs of that language training. Items qualifying for reimbursement would include, but not be limited to, reading materials, instructional tapes and CDs, evening instruction, and other reasonable costs an individual may incur maintaining language proficiency.

Sec. 1056. Pilot project for Civilian Linguist Reserve Corps

This section authorizes such sums as may be necessary for fiscal year 2005, 2006, and 2007 to the National Intelligence Director to support a pilot Civilian Linguist Reserve Corps. The Intelligence Authorization Act of FY 2003 required a report on the feasibility of a Civilian Linguist Reserve Corps, together with recommendations on how such a Corps would be structured and what critical languages would be provided. Pursuant to the findings and recommendations of the report mentioned above, a three year pilot program is authorized.

Sec. 1057. Codification of establishment of the National Virtual Translation Center

This section amends Title I of the National Security Act of 1947, as amended by section 1021(a), by adding a new Section 120 which authorizes the National Virtual Translation Center to utilize any U.S. Government certified secure facility to conduct its translation activities.

Sec. 1058. Report on recruitment and retention of qualified instructors of the Defense Language Institute

This section requires the Secretary of Defense to provide a report on options to increase the retention of qualified language instructors at the Foreign Language Center at the Defense Language Institute. Among the options to be considered is the provision of expedited permanent resident alien status for those qualified instructors who are not U.S. citizens.

SUBTITLE F. ADDITIONAL IMPROVEMENTS OF INTELLIGENCE ACTIVITIES

Sec. 1061. Permanent extension of Central Intelligence Agency Voluntary Separation Incentive Program

This section makes permanent the Central Intelligence Agency Program related to employee incentives for voluntary separation from service.

Sec. 1062. National Security Agency Emerging Technologies Panel

This section amends the National Security Agency Act of 1959 to establish a National Security Agency Technologies Panel. This standing panel will exist within the National Security Agency and appointments to the panel will be made by the Director of the National Security Agency. This panel will study, assess, and periodically advise the Director of the National Security Agency on research, development, and application of existing and emerging technologies to include encryption and other pertinent topics. The Federal Advisory Committee Act will not apply to the work of this 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

The section contains numerous conforming amendments that amend the National Security Act of 1947 to replace the term 'Director of Central Intelligence' with `National Intelligence Director' in those instances where authorities and responsibilities have been vested pursuant to this bill in the NID; to replace the term `Director of Central Intelligence' with `Director of the Central Intelligence Agency' in those instances where authorities and responsibilities have been vested pursuant to this bill in the Director of the CIA; and to vest responsibility in both the NID and the Director of the CIA in those instances where both the NID and the Director of the CIA have joint responsibilities pursuant to provisions of this bill.

Sec. 1072. Other conforming amendments

This section contains numerous conforming amendments that amend the National Security Act of 1947 in similar fashion as the conforming amendments in Section 1071, but with respect to the Deputy Director of Central Intelligence and the Deputy National Intelligence Director; and the Office of the Director of Central Intelligence and the Office of the National Intelligence.

Sec. 1073. Elements of Intelligence Community under National Security Act of 1947

This section amends the National Security Act of 1947 to expand the term `Intelligence Community'. The Intelligence Community will include the Office of the

National Intelligence Director and any other elements or departments designated by the President or jointly by the National Intelligence Director and the department or agency concerned.

Sec. 1074. Redesignation of National Foreign Intelligence Program as National Intelligence Program

This section amends the National Security Act of 1947 to change the `National Foreign Intelligence Program' (NFIP) to `National Intelligence Program' (NIP).

Sec. 1075. Repeal of superseded authorities

This section amends the National Security Act of 1947 to repeal the authority of the DCI to concur on the appointments of personnel to the following positions: Director of the National Security Agency, Director of the National Reconnaissance Office and Director of the National Geospatial-intelligence Agency. It also repeals the provisions requiring consultation with the DCI on other Intelligence Community appointments.

Sec. 1076. Clerical amendments to National Security Act of 1947

This section amends the National Security of 1947 to make technical corrections to the table of contents.

Sec. 1077. Conforming amendments relating to prohibiting dual service of the Director of the Central Intelligence Agency

This section amends the Central Intelligence Agency Act of 1949 to make technical amendments to clarify that `Director' means the `Director of the Central Intelligence Agency'.

Sec. 1078. Access to Inspector General protections

This section amends the Central Intelligence Agency Act of 1949 to allow the Inspector General of the Central Intelligence Agency the ability to initiate and conduct independent audits, inspections, investigations relating to the programs and operations of the Office of the National Intelligence Director.

Sec. 1079. General references

Any reference in law, regulation, or other records of the United States to the Director of Central Intelligence or Director of Central Intelligence Agency in the capacity as DCI shall be deemed to be a reference to the National Intelligence Director. Any reference in law, regulation or other records to the DCI or the Director of the CIA in the capacity as head of the CIA shall be deemed to be a reference to the Director of the Central Intelligence Agency. Any reference to the Community Management Staff in law, regulation, or other records of the United States shall be deemed a reference to the staff of the Office of the National Intelligence Director.

Sec. 1080. Application of other laws

This section amends Title 5, U.S.C. to allow the National Intelligence Director the ability to delete information in foreign gift disclosures if disclosing such information would adversely affect United States intelligence sources. The section also allows for an exemption from financial disclosures.

SUBTITLE H. TRANSFER, TERMINATION, TRANSITION AND OTHER PROVISIONS

Sec. 1091. Transfer of Community Management Staff

This section transfers the staff of the Community Management Staff in its entirety to the Office of the National Intelligence Director.

Sec. 1092. Transfer of Terrorist Threat Integration Center

This section transfers the Terrorist Threat Integration Center (TTIC) in its entirety to the National Counterterrorism Center.

Sec. 1093. Termination of positions of Assistant Directors of Central Intelligence

This section terminates the positions of Assistant Director of Central Intelligence for Collection, Assistant Director of Central Intelligence for Analysis and Production, and Assistant Director of Central Intelligence for Administration.

Sec. 1094. Implementation plans

This section requires the President to transmit a reorganization plan to the appropriate congressional committees. This plan should cover the transfer of personnel, assets, and obligations to the National Intelligence Director. In addition, any consolidation or streamlining should be outlined in this plan. Recommendations for additional legislative or administrative actions shall also be covered in this report. In addition, it is the sense of Congress that the permanent location for the Office of the National Intelligence Director should be at a location other than the George Bush Center for Intelligence in Langley, VA.

Sec. 1095. Transitional authorities

This section allows the head of any executive agency to provide services or detail personnel to the National Intelligence Director to support the transition.

Sec. 1096. Effective dates

This section establishes effective dates for specific actions within this Act. The NID must first appoint individuals to the Office of the National Intelligence Director within 60 days. Within 180 days, the President shall transmit the implementation plan to Congress. Not later than one year after the enactment of this Act, the NID shall prescribe the regulations, policies and guidelines required by this Act.

TITLE III. BORDER SECURITY AND TERRORIST TRAVEL

SUBTITLE D. TERRORIST TRAVEL

Sec. 3101. Information sharing and coordination

This section directs the Secretary of Homeland Security to establish a mechanism to ensure the appropriate coordination and dissemination of terrorist travel intelligence amongst the applicable agencies of the Department of Homeland Security, the Department of State, the National Counterterrorism Center and other appropriate Federal agencies.

Sec. 3102. Terrorist travel program

This section directs the Secretary of Homeland Security to establish a program to analyze information and intelligence on terrorist travel and to then disseminate that information to all U.S. ports of entry and to appropriate U.S. embassies and consulates. The Director of Homeland Security is also required to consult with the Director of National Counterterrorism on the establishment and implementation of a terrorist travel program.

Sec. 3103. Training program

This section directs the Secretary of Homeland Security to develop and implement an enhanced training program for border, immigration and consular officers to teach such officials how to detect and disrupt terrorist travel.

Sec. 3104. Technology acquisition and dissemination plan

This section directs the Secretary of Homeland Security, in consultation with the Secretary of State, to provide, within 180 days of enactment, a plan to acquire and deploy technologies to facilitate travel document authentication. The section directs that, to the maximum extent possible, that all new technologies should be compatible with current systems.

TITLE V. GOVERNMENT RESTRUCTURING

SUBTITLE B. GOVERNMENT REORGANIZATION AUTHORITY

Sec. 5021. Authorization of intelligence community reorganization plans

This section provides the authority for the Executive branch to submit reorganization plans for Intelligence Community agencies. The section limits the ability of the appropriate congressional oversight committees to provide more than an `up/down' vote on the entire reorganization plan.

SUBTITLE F. SECURITY CLEARANCE MODERNIZATION

Sec. 5071. Definitions

This section provides the definitions for the following terms: Director, agency, authorized investigative agency, authorized adjudicative agency, highly sensitive program, current investigation file, personnel security investigation, periodic reinvestigations and the appropriate committees of Congress.

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

The responsibilities and authority of the Deputy NID for Community Management and Resources vis-a.AE2-vis security clearance policy are laid out here. The duties include: (1) daily oversight of these issues government-wide; (2) the establishment of uniform investigative and adjudicative procedures, application questionnaires and requirements; (3) the power to designate authorized investigative and adjudicative agencies; (4) enforcing reciprocity; and (5) developing new resources, methods and tools.

Sec. 5073. Reciprocity of security clearance and access determinations

This section establishes in statute, for the first time, the mandatory reciprocal recognition of security clearances government-wide. To this end, it also explicitly prohibits 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 facilitates information sharing and reduces backlog by consolidating all information about cleared personnel and security clearance applicants

into a single, government-wide database accessible to all agencies. Second, the NID can enforce the use of this database, and thereby also enforce the reciprocal recognition of security clearances, by controlling each agency's authority to investigate and adjudicate clearances.

Sec. 5075. Use of available technology in clearance investigations

This section encourages the use of the latest technology in investigating, adjudicating, and maintaining security clearances. Specifically included is 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. It also allows the granting of interim clearances, before the investigation is complete, to personnel who are being investigated using the new technology. Investigative agencies are directed to establish procedures to conduct regular and ongoing verification of personnel with security clearances using the new database technology. Further, the Director of National Intelligence is allowed to discontinue periodic reinvestigations and replace them with regularly recurring verification if he/she deems that the national security of the United States will not be harmed by this replacement.

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

This section establishes 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 also establishes 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 addresses the specific recommendation of the 9/11 Report that security clearances be expedited for Presidential transition teams. It mandates an adjudication decision for personnel whose names are submitted by the President-elect by the date of the general election. In addition, each major party candidate for President shall provide, before the general election, requests for security clearance for prospective transition team members who will require access to classified information.

Sec. 5078. Reports

The NID shall submit annually a report to the appropriate Committees of Congress on agency progress towards meeting the performance goals laid out in Section 5076. The report shall also provide the NID recommendations for improvement and other appropriate matters.

EXPLANATION OF AMENDMENTS

The provisions of the amendment in the nature of a substitute are explained in this report.

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. Legislative branch employees are not prohibited from receiving benefits incurred by this legislation.

STATEMENT OF UNFUNDED MANDATES

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104-4) requires a statement of whether the provisions of the reported bill include unfunded mandates. This provides for reform of the Intelligence Community, improved terrorism prevention and prosecution, increased border security, and enhanced international cooperation and coordination. In compliance with this requirement, the Committee has received a letter from the Congressional Budget Office included herein.

ROLLCALL VOTES OF THE COMMITTEE

Chairman Hoekstra offered an amendment in the nature of a substitute to H.R. 10, as introduced. It specified the text of the provisions of H.R. 10 within the Committee's jurisdiction that were being considered, namely Title I (Reform of the Intelligence Community) in its entirety; Subtitle D (Terrorist Travel) of Title III (Border Security and Terrorist Travel); and Subtitle B (Government Reorganization Authority) and Subtitle F (Security Clearance Modernization) of Title V (Government Restructuring).

The amendment also made three substantive modifications to the provisions of H.R. being considered. First, Section 1011 (Reorganization and Improvement of Management of Intelligence Community), amending Sections 102-104 of the National Security Act of 1947, was further amended to specify that the members of the National 1Intelligence Council shall be appointed by, report to, and serve at the pleasure of the National Intelligence Director.

Second, Section 1011 was further amended to make explicit that the National Intelligence Council, and its staff, conduct their responsibilities in a manner that ensures that the needs of policymaking officials and other consumers of intelligence are met. The provision was further modified to make explicit that the National Intelligence Council shall be readily accessible to policymaking officials and other appropriate individuals not otherwise associated with the Intelligence Community.

Third, Section 3102 (Terrorist Travel Program) was modified to require the Secretary of Homeland Security to consult with the Director of National Counterterrorism Center, established by Section 1021 (National Counterterrorism Center).

The Committee adopted the amendment in the nature of a substitute by a voice vote.

Motion to Table the Appeal of the Ruling of the Chair

Ms. Harman offered a resolution stating that it was the sense of the Congress that the House should use the text of Collins-Lieberman, S. 2845, as unanimously reported by the Senate Committee on Governmental Affairs, as the text considered by the House in lieu of the text of H.R. 10, as amended. Chairman Hoekstra ruled the Harman resolution as non-germane. Ms. Harman appealed the ruling of the Chair. Mr. Blunt made a motion to table the appeal. The motion to table was approved by a rollcall vote of 11 ayes to 8 noes.

ROLLCALL NO. 1
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman    X              
Mr. Blunt                 X              
Mr. Gibbons               X              
Mr. LaHood                X              
Mr. Cunningham            X              
Mr. Burr                  X              
Mr. Everett               X              
Mr. Gallegly              X              
Mr. Collins               X              
Ms. Davis                 X              
Mr. Thornberry            X              
Ms. Harman                     X         
Mr. Hastings                             
Mr. Reyes                      X         
Mr. Boswell                    X         
Mr. Peterson                   X         
Mr. Cramer                     X         
Ms. Eshoo                      X         
Mr. Holt                       X         
Mr. Ruppersberger              X         
-----------------------------------------

Harman Amendment--Amendment No. 2

Ms. Harman offered an amendment to add a Privacy and Civil Liberties Oversight Board for the Intelligence Community. The amendment was adopted by a rollcall vote of 16 ayes to 3 noes.

ROLLCALL NO. 2
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman    X              
Mr. Blunt                 X              
Mr. Gibbons               X              
Mr. LaHood                     X         
Mr. Cunningham            X              
Mr. Burr                  X              
Mr. Everett               X              
Mr. Gallegly              X              
Mr. Collins                    X         
Ms. Davis                      X         
Mr. Thornberry            X              
Ms. Harman                X              
Mr. Hastings                             
Mr. Reyes                 X              
Mr. Boswell               X              
Mr. Peterson              X              
Mr. Cramer                X              
Ms. Eshoo                 X              
Mr. Holt                  X              
Mr. Ruppersberger         X              
-----------------------------------------

Harman Amendment--Amendment No. 4

Ms. Harman offered an amendment to substitute the provisions of S. 2845, the `National Intelligence Reform Act' for the provisions of H.R. 10 relating to the authorities of the National Intelligence Director to determine and present to the President the budget for the National Intelligence Program, to execute the funds appropriated for the Intelligence Community, and to reprogram funds within the various elements of the Intelligence Community, subject only to requirements imposed by the Director of the Office of Management and Budget and the Congress. The amendment was rejected by a rollcall vote of 8 ayes to 11 noes.

ROLLCALL NO. 3
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman         X         
Mr. Blunt                      X         
Mr. Gibbons                    X         
Mr. LaHood                X              
Mr. Cunningham                 X         
Mr. Burr                       X         
Mr. Everett                    X         
Mr. Gallegly                   X         
Mr. Collins                    X         
Ms. Davis                      X         
Mr. Thornberry                 X         
Ms. Harman                X              
Mr. Hastings                             
Mr. Reyes                 X              
Mr. Boswell               X              
Mr. Peterson              X              
Mr. Cramer                X              
Ms. Eshoo                 X              
Mr. Holt                  X              
Mr. Ruppersberger         X              
-----------------------------------------

Reyes Amendment--Amendment No. 5

Mr. Reyes offered an amendment to substitute the provisions of S. 2845, the `National Intelligence Reform Act', for the provisions of H.R. 10 relating to the authorities of the National Intelligence Director to recommend persons to be nominated by the President or to be appointed by the President or a Departmental Secretary to head an element of the Intelligence Community. The amendment was rejected by a roll call vote of 8 ayes to 11 noes.

ROLLCALL NO. 4
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman         X         
Mr. Blunt                      X         
Mr. Gibbons                    X         
Mr. LaHood                     X         
Mr. Cunningham                 X         
Mr. Burr                       X         
Mr. Everett                    X         
Mr. Gallegly                   X         
Mr. Collins                    X         
Ms. Davis                      X         
Mr. Thornberry                 X         
Ms. Harman                X              
Mr. Hastings                             
Mr. Reyes                 X              
Mr. Boswell               X              
Mr. Peterson              X              
Mr. Cramer                X              
Ms. Eshoo                 X              
Mr. Holt                  X              
Mr. Ruppersberger         X              
-----------------------------------------

Gibbons Amendment--Amendment No. 6

Mr. Gibbons offered an amendment to remove certain limitations on the authority of the National Intelligence Director to transfer money between the components of the National Intelligence Program, including a transfer of funds that would result in the termination of a program. The amendment was adopted by a vote of 12 ayes to 7 noes.

ROLLCALL NO. 5
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman         X         
Mr. Blunt                      X         
Mr. Gibbons               X              
Mr. LaHood                     X         
Mr. Cunningham                 X         
Mr. Burr                  X              
Mr. Everett                    X         
Mr. Gallegly              X              
Mr. Collins                    X         
Ms. Davis                 X              
Mr. Thornberry                 X         
Ms. Harman                X              
Mr. Hastings                             
Mr. Reyes                 X              
Mr. Boswell               X              
Mr. Peterson              X              
Mr. Cramer                X              
Ms. Eshoo                 X              
Mr. Holt                  X              
Mr. Ruppersberger         X              
-----------------------------------------

Eshoo Amendment--Amendment No. 7

Ms. Eshoo offered an amendment to require that National Intelligence Estimates contain certain characterizations regarding the intelligence used to formulate the estimate and certain underlying analytical assumptions. The amendment was rejected by a vote of 8 ayes to 11 noes.

ROLLCALL NO. 6
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman         X         
Mr. Blunt                      X         
Mr. Gibbons                    X         
Mr. LaHood                     X         
Mr. Cunningham                 X         
Mr. Burr                       X         
Mr. Everett                    X         
Mr. Gallegly                   X         
Mr. Collins                    X         
Ms. Davis                      X         
Mr. Thornberry                 X         
Ms. Harman                X              
Mr. Hastings                             
Mr. Reyes                 X              
Mr. Boswell               X              
Mr. Peterson              X              
Mr. Cramer                X              
Ms. Eshoo                 X              
Mr. Holt                  X              
Mr. Ruppersberger         X              
-----------------------------------------

Boswell Amendment--Amendment No. 8

Mr. Boswell offered an amendment to strike Section 1025 (Initial Appointment of the National Intelligence Director) authorizing the President to appoint the person who is serving as Director of Central Intelligence at the time of the enactment to the new position of National Intelligence Director without obtaining the advice and consent of the Senate. The amendment was rejected on a roll call vote of 8 ayes to 11 noes.

ROLLCALL NO. 7
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman         X         
Mr. Blunt                      X         
Mr. Gibbons                    X         
Mr. LaHood                     X         
Mr. Cunningham                 X         
Mr. Burr                       X         
Mr. Everett                    X         
Mr. Gallegly                   X         
Mr. Collins                    X         
Ms. Davis                      X         
Mr. Thornberry                 X         
Ms. Harman                X              
Mr. Hastings                             
Mr. Reyes                 X              
Mr. Boswell               X              
Mr. Peterson              X              
Mr. Cramer                X              
Ms. Eshoo                 X              
Mr. Holt                  X              
Mr. Ruppersberger         X              
-----------------------------------------

Motion to Report H.R. 10

On September 29, 2004, in open session, a quorum being present, the Permanent Select Committee on Intelligence ordered reported favorably to the House the amendment in the nature of a substitute, as amended, for the bill, H.R. 10, by a rollcall vote of 17 ayes to 2 noes.

ROLLCALL No. 8
-----------------------------------------
                       Ayes Nays Present 
-----------------------------------------
Mr. Hoekstra, Chairman    X              
Mr. Blunt                 X              
Mr. Gibbons               X              
Mr. LaHood                     X         
Mr. Cunningham            X              
Mr. Burr                  X              
Mr. Everett               X              
Mr. Gallegly              X              
Mr. Collins               X              
Ms. Davis                 X              
Mr. Thornberry            X              
Ms. Harman                X              
Mr. Hastings                             
Mr. Reyes                 X              
Mr. Boswell               X              
Mr. Peterson              X              
Mr. Cramer                X              
Ms. Eshoo                 X              
Mr. Holt                       X         
Mr. Ruppersberger         X              
-----------------------------------------

CORRESPONDENCE

Committee on Education and the Workforce,

House of Representatives,

Washington, DC, October 1, 2004.

Hon. PETER HOEKSTRA,
Chairman, Select Committee on Intelligence, Washington, DC.

DEAR CHAIRMAN HOEKSTRA: I am writing to confirm our mutual understanding with respect to consideration of H.R. 10, the `9/11 Recommendations Implementation Act,' which was referred to the Committee on Intelligence and in addition to the Committees on Armed Services, Education and the Workforce, Energy and Commerce, Financial Services, Government Reform, International Relations, the Judiciary, Rules, Science, Transportation and Infrastructure, Ways and Means, and Select Homeland Security. I understand the desire to have this legislation considered expeditiously by the House; hence, I do not intend to hold a hearing or markup on this legislation.

However, I do so only with the understanding that this procedural route should not be construed to prejudice the Committee on Education and the Workforce's jurisdictional interest and prerogatives on these provisions or any other similar legislation and will not be considered as precedent for consideration of matters of jurisdictional interest to my Committee in the future. Furthermore, should this provision or similar provisions be included by any Senate amendments thereto and considered in a conference with the Senate, I would expect Members of the Committee on Education and the Workforce be appointed as conferees on those provisions.

Finally, I would ask that you include a copy of our exchange of letters on this matter during House debate of the bill. If you have questions regarding this matter, please do not hesitate to call me. I thank you for your consideration.

Sincerely,

JOHN A. BOEHNER,

Chairman.

-

House of Representatives,

Permanent Select Committee on Intelligence,

Washington, DC, October 1, 2004.

Hon. JOHN BOEHNER,
Chairman, Select Committee on Education and Workforce, Washington, DC.

DEAR CHAIRMAN BOEHNER: Thank you for your letter of October 1, 2004, regarding H.R. 10 the 9/11 Recommendations Implementation Act. As you noted, elements of the bill as reported fall within the Rule X jurisdiction of the Committee on Education and Workforce. I will continue to work with you on these sections and will support the Commmittee on Education and Workforce's request to the Speaker for conferees on these provisions.

I appreciate your willingness to forgo consideration of the bill at a hearing or markup in the interests of expediting consideration of the bill.

I acknowledge that by agreeing to waive consideration of the bill, the Committee on Education and Workforce does not waive its jurisdiction over the bill or any of the matters under your jurisdiction. I will include a copy of your letter and this response in our Committee's report on H.R. 10 and the Congressional Record during consideration of the legislation on the House floor.

Thank you for your assistance in this matter.

Sincerely,

PETER HOEKSTRA,

Chairman.

-

House of Representatives,

Select Committee on Homeland Security,

Washington, DC, October 1, 2004.

Hon. PETER HOEKSTRA,
Chairman, House Permanent Select Committee on Intelligence, Washington, DC.

DEAR CHAIRMAN HOEKSTRA: In recognition of the importance of expediting passage of H.R. 10, the `9/11 Recommendations Implementation Act,' the Select Committee on Homeland Security hereby waives further consideration of the bill.

The Select Committee on Homeland Security takes this action with the understanding that its jurisdiction over the Department of Homeland Security and homeland security matters generally are in no way diminished or altered. In addition, the Select Committee reserves its authority to seek conferees on any provisions of the bill that are within its jurisdiction during any House-Senate conference that may be convened on this legislation. I would appreciate your including this letter in the Committee Report on the bill. Thank you for your consideration.

Sincerely,

Christopher Cox,

Chairman.

-

House of Representatives,

Permanent Select Committee on Intelligence,

Washington, DC, October 1, 2004.

Hon. CHRISTOPHER COX,
Chairman, Select Committee on Homeland Security, Washington, DC.

DEAR CHAIRMAN COX: Thank you for your letter of October 1, 2004, regarding H.R. 10, the 9/11 Recommendations Implementation Act. As you noted, elements of the bill as reported fall within the Rule X jurisdiction of the Select Committee on Homeland Security. I will continue to work with you on these sections and will support the Select Committee on Homeland Security's request to the Speaker for conferees on these provisions.

I appreciate your willingness to waive further consideration of the bill in the interests of expediting consideration of the bill.

I acknowledge that by agreeing to waive consideration of the bill, the Select Committee on Homeland Security does not waive its jurisdiction over the bill or any of the matters under your jurisdiction. I will include a copy of your letter and this response in our Committee's report on H.R. 10 and the Congressional Record during consideration of the legislation on the House floor.

Thank you for your assistance in this matter.

Sincerely,

Peter Hoekstra,

Chairman.

-

House of Representatives,

Committee on Ways and Means,

Washington, DC, September 28, 2004.

Hon. PETER HOEKSTRA,
Chairman, Permanent Select Committee on Intelligence, Washington, DC.

DEAR CHAIRMAN HOEKSTRA: I am writing concerning H.R. 10, the `9/11 Recommendations Implementation Act,' that was introduced on Friday, September 24, 2004. Several provisions of the bill fall within the jurisdiction of the Committee on Ways and Means.

The Committee on Ways and Means recommended the inclusion of the provisions in Sections 3071 through 3076 of H.R. 10, which enhance the integrity and privacy of Social Security numbers (SSNs) and serve to prevent identity fraud by terrorists and other criminals. These provisions are also part of H.R. 2971, the `Social Security Number Privacy and Identity Theft Prevention Act of 2004,' which was approved by the Committee on July 21, 2004. Because the Committee has already approved the language in these sections, no further action on the Committee's part is necessary.

In addition, Section 3052 of the bill would require State departments of motor vehicles (DMVs) to verify an individual's SSN or verify that the individual does not qualify for an SSN. Authority for State DMVs to require disclosure of SSNs is in the Social Security Act and would create administrative duties for the Social Security Administration (SSA). As a result, the provision falls within the jurisdiction of the Committee on Ways and Means.

Finally, Section 3064 of the bill requires the Commissioner of the SSA to consult with the Secretary of Health and Human Services to establish standardized birth and death registration systems. It also establishes new data sharing between the SSA and the Departments of Defense and State. These provisions fall within the jurisdiction of the Committee on Ways and Means because they would create additional administrative duties for the SSA.

However, the Committee will not take action on Sections 3052 and 3064 of the bill. This is being done with the understanding that it does not in any way prejudice the Committee with respect to the appointment of conferees or its jurisdictional prerogatives on this or similar legislation.

I would appreciate your response to this letter, confirming this understanding with respect to H.R. 10, and would ask that a copy of our exchange of letters on this matter be included in your committee report.

Best regards,

Bill Thomas,

Chairman.

-

House of Representatives,

Permanent Select Committee on Intelligence,

Washington, DC, October 1, 2004.

Hon. BILL THOMAS,
Chairman, Committee on Ways and Means, Washington, DC.

DEAR CHAIRMAN THOMAS: Thank you for your letter of October 1, 2004, regarding H.R. 10, the 9/11 Recommendations Implementation Act. As you noted, elements of the bill as reported fall within the Rule X jurisdiction of the Committee on Ways and Means. I will continue to work with you on these sections and will support the Committee on Ways and Means' request to the Speaker for conferees on these provisions.

I appreciate your willingness to forgo action on those sections of the bill that fall within your jurisdiction in the interests of expediting consideration of the bill.

I acknowledge that by agreeing to waive consideration of the bill, the Committee on Ways and Means does not waive its jurisdiction over the bill or any of the matters under your jurisdiction. I will include a copy of your letter and this response in our Committee's report on H.R. 10 and the Congressional Record during consideration of the legislation on the House floor.

Thank you for your assistance in this matter.

Sincerely,

Peter Hoekstra,

Chairman.

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, the Committee reports that the findings and recommendations of the Committee, based on oversight activities under clause 3(l) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report.

NEW BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII 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 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 the Congressional Budget Office:

U.S. Congress,

Congressional Budget Office,

Washington, DC, October 4, 2004.

Hon. PETER HOEKSTRA,
Chariman, Permanent Select Committee on Intelligence,
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 Recommendation Implementation Act.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Raymond J. Hall.

Sincerely,

Robert A. Sunshine

(For 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. 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 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 II would increase the number of agents performing border security and immigration functions, improve the security of identity documents such as drivers 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 $550 million in 2005 and $14.4 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 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. H.R. 10 contains no private-sector mandates as defined in UMRA.

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 I- BUDGETARY IMPACT OF H.R. 10, THE 9/11 RECOMMENDATIONS IMPLEMENTATION ACT, AS ORDERED REPORTED BY THE HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE
-----------------------------------------------------------------------------------------------------------------
                                                By fiscal year, in millions of dollars--                         
                                                                                    2005  2006  2007  2008  2009 
-----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION 1                                                                   
Estimated authorization level                                                      1,134 5,025 1,341 4,697 5,261 
Estimated outlays                                                                    533 4,289 2,093 3,265 4,263 
CHANGES IN DIRECT SPENDING 2                                                                                     
Estimated budget authority                                                             *     *     *     *     * 
Estimated outlays                                                                    -25   -12    19    10     5 
-----------------------------------------------------------------------------------------------------------------

Spending Subject to Appropriation

H.R. 10 contains provisions that would affect the intelligence community, terrorism 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 $14.4 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 PERMANENT SELECT COMMITTEE ON INTELLIGENCE
------------------------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars--                         
                                                                                                 2005  2006  2007  2008  2009 
------------------------------------------------------------------------------------------------------------------------------
Reform the intelligence community:                                                                                            
Estimated authorization level                                                                      40   235    75    90    70 
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 level                                                                     528 4,343   330     0     0 
Estimated outlays                                                                                 238 3,666   957   340     0 
Improve intelligence capabilities of the FBI:                                                                                 
Estimated authorization level                                                                       4     5     6     7     8 
Estimated outlays                                                                                   3     5     6     8     8 
Increase the number of border patrol and immigration agents:                                                                  
Estimated authorization level                                                                       0   174   526   981 1,451 
Estimated outlays                                                                                   0   165   509   958 1,427 
Grants to improve security of driver's licenses:                                                                              
Estimated authorization level                                                                      80    30    30    10    10 
Estimated outlays                                                                                  80    30    30    10    10 
New standards for issuance of birth and death certificates:                                                                   
Estimated authorization level                                                                     330    20    30    40    50 
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 level                                                                       0    33    62    93   125 
Estimated outlays                                                                                   0    27    54    84   115 
Reform international cooperation and coordination:                                                                            
Estimated authorization level                                                                      17    17    17     7     7 
Estimated outlays                                                                                   7    15    17    15     9 
First-responder grants:                                                                                                       
Estimated authorization level                                                                       0     0     0 3,314 3,381 
Estimated outlays                                                                                   0     0     0 1,491 2,350 
Counternarcotics office:                                                                                                      
Estimated authorization level                                                                       6     6     6     6     6 
Estimated outlays                                                                                   4     6     6     6     6 
Security clearance modernization:                                                                                             
Estimated authorization level                                                                      23    68   116   143   147 
Estimated outlays                                                                                  21    64   111   140   147 
Public safety communications interoperability:                                                                                
Estimated authorization level                                                                       6     6     6     6     6 
Estimated outlays                                                                                   5     6     6     6     6 
Total changes: 1                                                                                                              
Estimated authorization level                                                                   1,134 5,025 1,341 4,697 5,261 
Estimated outlays                                                                                 533 4,289 2,093 3,265 4,263 
------------------------------------------------------------------------------------------------------------------------------

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 Counterterorism 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 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 PERMANENT SELECT COMMITTEE ON INTELLIGENCE
----------------------------------------------------------------------------------------------------------------------
                                                         By fiscal year, in millions of dollars--                     
                                                                                             2005 2006 2007 2008 2009 
----------------------------------------------------------------------------------------------------------------------
Create the Office of the National Intelligence Director:                                                              
Estimated authorization level                                                                  15  210   50   80   60 
Estimated outlays                                                                              10   35   80  135  130 
Other program authorizations:                                                                                         
Estimated authorization level                                                                  25   25   25   10   10 
Estimated outlays                                                                              20   25   25   10   10 
Total changes:                                                                                                        
Estimated authorization level                                                                  40  235   75   90   70 
Estimated outlays                                                                              30   60  110  145  140 
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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 NID. 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 much lower 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 estimates, 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 relocated 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 preforming 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. Sections 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 the Department of Homeland Security. 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 DHS 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 birth certificates 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 the 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 authorizes the appropriation of $49 million for 2005, $88 million for 2006, and $137 million for 2007 for DHS to expand preinspection 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 in 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. The amounts 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 areas.

Section 4035 would establish within the Department of State and Office on Multilateral Negotiations. In our estimate for H.R. 4053, the United States International leadership 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 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 disasters. 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 grants 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 states and localities to prepare and respond to terrorism from the USA Patriot Act (Public Law 107-56). That law authorized the appropriation of such sums as necessary for first-responder grants through fiscal year 2007. This subtitle would supersede this authority 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-responder grants in 2008 and that 2009 funding levels for first-responder grants would continue at that level, adjusted for anticipated inflation.

Counternarcotics Office. Section 5021 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 could not exceed 500 individuals. Members of the 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 be insignificant--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.

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 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 PERMANENT SELECT COMMITTEE ON INTELLIGENCE 1 
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                           By fiscal year, in millions of dollars--                                              
                                                               2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 
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Estimated budget authority                                        *    *    *    *    *    *    *    *    *    * 
Estimated outlays                                               -25  -12   19   10    5    3    *    *    *    * 
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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 direct spending by $37 million in 2005 and 2006, but would increase net direct spending in later years and have no net 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 and residency. 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. 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 drivers' licenses or from including Social Security numbers (SSNs) in bar codes, magnetic strips, or similar devices. CBO has found few 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 such credentials.

Estimated impact on the private sector: The bill contains no private-sector mandates as defined in UMRA.

Previous CBO estimates: On October 4, 2004, CBO transmitted a cost estimate for H.R. 10 as ordered reported by the House Committee on Armed Services on September 29, 2004. The two versions of the bill are almost identical. The differences in the legislation do not affect the estimated costs of either bill. Thus, the two CBO estimates are identical.

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. H.R. 10 also 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: Timothy J. Gronniger. International Programs: Joseph C. Whitehill. General Government: Matthew Pickford.

Impact on State, Local, and Tribal Governments: Melissa Merrell.

Estimate approved by: Robert A. Sunshine, Assistant Director for Budget Analysis.

PERFORMANCE GOALS AND OBJECTIVES

H.R. 10, the `9/11 Recommendations Implementations Act', will help fulfill the Constitutional responsibility of the Federal Government by improving both the Security of the United States and the performance of the United States Intelligence Community. In accordance with Clause (3)(c) of House Rule XIII, the goals of H.R. 10 to provide for Intelligence Community and other government agency reform, improved terrorism prevention and prosecution, increased border security, and enhanced international cooperation and coordination. The overall goals of this legislation are to prevent terrorist attacks against the United States and her interests while better positioning our vital Intelligence Community to meet the global threats of the future. The Committee expects the Office of the National Intelligence Director, the agencies and departments within the Intelligence Community and other agencies and departments affected in H.R. 10 to implement the changes to the law in accordance with these stated goals.

STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House of Representatives, the Committee finds the authority for this legislation in article 1, section 8, of the Constitution.

COMMITTEE COST 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.

ADDITIONAL VIEWS OF REPRESENTATIVE RUSH HOLT

I voted against this bill because it does not come close to addressing many of the key issues raised by the 9/11 Commission in its final report, especially the issue of improving Congressional oversight of the intelligence community. Our constituents have asked Congress to reform the intelligence community because of an evident lack of coordination among agencies, a confirmed failure to communicate, and repeated instances of the use of questionable assumptions and faulty conclusions. H.R. 10 would create a weak director with no real authority to correct the problems.

With regard to this legislation's proposed budget and personnel authorities for the National Intelligence Director, I share the view expressed by 9/11 Commission chairman Tom Kean (Washington Post, October 1): `This is not an area where one can compromise,' he said. `If you're not going to create a strong national intelligence director, with powers both appointive and over the budget, don't do it.'

Overview

The House Permanent Select Committee on Intelligence markup of H.R. 10, the 9/11 Recommendations Implementation Act, was historic--the first public markup of intelligence legislation in at least ten years.

As the Chairman and Ranking Member indicated during the markup session, the Committee considered only the portions of H.R. 10 that pertained to intelligence reorganization--namely, Title I and discrete sections in Titles III and V that were within the jurisdiction of this Committee. 1

[Footnote] The Chairman and Ranking Member agreed that Members were not being asked to endorse portions of the bill in titles II through V outside of the Committee's expertise and jurisdiction.

[Footnote 1: Title 111, sections 3101, 3102, 3103, 3104. Title V, sections 5021, 5071, 5072, 5073, 5074, 5074, 5076, 5077, 5078.]

Align H.R. 10 with Collins-Lieberman

Our efforts in the markup were aimed at strengthening H.R. 10, making it more consistent with the 9/11 Commission's recommendations and with the bipartisan Collins-Lieberman bill (S. 2845) being debated in the U.S. Senate.

In my view, the Collins-Lieberman bill provides the best vehicle for strengthening the Intelligence Community. The 9/11 Commission and the 9/11 families have endorsed it, and it was reported unanimously out of the Senate Government Affairs Committee. The Administration also released a Statement of Administration Policy supporting the bill, with limited reservations.

A copy of the Statement was made part of the mark-up record upon a Unanimous Consent request by Ranking Member Harman.

The Collins-Lieberman bill establishes a National Intelligence Director with strong authorities over the Intelligence Community's budget and a decisive role in appointing the heads of all elements of the Intelligence Community. In this way, S. 2845 is consistent with the recommendations of the 9/11 Commission which were built, in part, on H.R. 4104, a bill all nine Democratic members of this Committee introduced on April 1, 2004. The creation of a strong National Intelligence Director with strong authorities over budgets and agency heads was also the number one recommendation of the bipartisan, bicameral Congressional Joint Inquiry into 9/11, on which many members of this Committee on both sides of the aisle served.

In my view, H.R. 10 is too weak. If the National Intelligence Director is going to have real power, he or she must have stronger budget and hiring authority than H.R. 10 proposes. The only way to get a dozen intelligence agencies to work together to defeat terrorism is to have a single director with real power.

The Collins-Lieberman bill also has the advantage of being a `clean' bill. It focuses exclusively on the 9/11 Commission's recommendations. In contrast, H.R. 10 is a 542-page bill loaded with provisions unrelated to the 9/11 Commission's recommendations. Some of these provisions are useful, but I disagree with many others. H.R. 10 makes changes to immigration laws that have nothing to do with the 9/11 Commission's recommendations, and are bad policy. The purpose of this legislation must be to make America safer--not to undermine civil liberties, expand authorities for domestic spying, or erode the rights of immigrant communities.

Finally, the Collins-Lieberman bill is 100% bipartisan. It is battle-tested, the product of two intense days of Committee mark-up where all amendments to weaken the bill were defeated on a bipartisan basis, and the bill was reported unanimously. Making America safer is not a Republican issue or a Democratic issue--it is an American issue. Terrorists are not going to check our party labels before they attack us.

Serious flaws with H.R. 10

The bill before the committee would also add other changes unjustified by the 9/11 Commission or by the committee's own findings. H.R. 10 fails to address the ongoing problems in the intelligence community with regard to information sharing. Congress must craft specific legislative language--not simply vague guidance to the executive branch--to create a mechanism for ensuring the sharing of information. I posed an amendment that would have done that by implementing the thoughtful, bipartisan solution incorporated in the Collins-Lieberman bill.

H.R. 10 also ignores the need for Congress to create an independent capability for judging the veracity of both finished assessments--be they NIE's or PDB's--and the sources that underpin those assessments. The executive branch's past failures in the area of `Red Teams' or `Team B's' has been well documented, including by the 9/11 Commission in its final report. Omitting this glaring necessity is simply irresponsible.

Bipartisan atmosphere a welcome change in Committee

The winds of bipartisanship are blowing once again through this Committee, and that is very good news. The Chairman and the Ranking Member worked together to find common ground on this legislation. Although the two sides do not agree on everything, we greatly appreciate the Chairman's willingness to consult in preparing for and in marking up H.R. 10.

With limited exceptions, H.R. 10 was not drafted in a bipartisan manner. It remains to be seen how bipartisan the rest of the process will be. It is critical that we have an open process that allows amendments to the bill to remove the extraneous provisions and to strengthen the National Intelligence Director's authorities in line with the Collins-Lieberman legislation.

Additional amendments offered

All of the following amendments offered were in the spirit of strengthening H.R. 10 and strengthening our capabilities against terrorists.

I was pleased that the Committee approved three amendments in a bipartisan fashion.

Ranking Member Harman's amendment to add an independent Privacy and Civil Liberties Oversight Board, similar to a provision of S. 2845, passed on a bipartisan vote of 16-3. The Board would ensure that concerns with respect to civil liberties and privacy are appropriately considered in the development and implementation of laws, regulations, and policies relegated to efforts of the Intelligence Community to protect the Nation against terrorism. The inclusion of a civil liberties board independent of the Executive branch is a critical element of responsible legislation to implement the recommendations of the 9/11 Commission. Security and civil liberties must be mutually reinforcing. The goal of this legislation is to make this country safer, not to undermine civil liberties or erode the rights of immigrant communities.

An amendment by Representative Gibbons to increase budget-reprogramming authority, modeled on the Intelligence Transformation Act (H.R. 4104), passed 12-7. I supported the Gibbons Amendment.

The Committee also accepted on a voice vote an amendment by Representatives Peterson and Boswell to strike a provision in Title V of H.R. 10 that would have allowed the President to ignore statutory direction and reorganize the Intelligence Community with only an up-or-down vote from Congress. Such a provision could conceivably be used to erase the reorganization of the Intelligence Community in Title I. It would also have undermined this Committee's oversight of Intelligence Community reorganization.

Additional amendments offered were designed to strengthen the bill and our capabilities against terrorists.

Ranking Member Harman and Representatives Boswell and Cramer introduced an amendment to strengthen the budget and personnel authorities of the National Intelligence Director, consistent with the Collins-Lieberman legislation and to declassify the `top-line' of the intelligence budget. Representatives Reyes and Ruppersberger offered an amendment to strengthen the National Intelligence Director's personnel appointment authorities. Representative Eshoo and I offered an amendment to strengthen the quality of analysis in National Intelligence Estimates. Representatives Boswell and Reyes offered an amendment to strike provisions undermining the Senate's confirmation powers regarding the National Intelligence Director.

Although these amendments were defeated on party-line votes, my colleagues and I will continue to push to make this legislation consistent with the Collins-Lieberman legislation and the 9/11 Commission's recommendations. We intend to offer these and other amendments on the House floor to cure deficiencies in the legislation. For example, the National Counter Terrorism Center provision must be improved. The bill ought to include specific direction on the development and operation of an Intelligence Community information sharing network. Instilling jointness in the Intelligence Community through mandatory personnel rotations should also be included.

Finally, Ranking Member Harman offered an amendment to express a Sense of the House that the Collins-Lieberman legislation replace H.R. 10 when the bill is considered on the floor. A point of order was raised, and the Chairman sustained the point of order. Upon appeal by Ranking Member Harman, a motion to table the appeal was agreed to on a party-line vote.

The goal is to improve intelligence against 21st century threats

We cannot take our eyes off the ultimate goals: strengthening the Intelligence Community; putting one person in charge with authority, responsibility, and accountability; and moving from a Cold War model to a more nimble, effective organization to meet and defeat 21st century threats.

In so doing, we honor the families of the 9/11 victims, who are the moral authority behind our work. Their silent witness--in our hearings and now as we move this legislation forward--is the most powerful reminder to do everything we can to prevent another 9/11. The legacy and memory of their loved ones demand nothing less.

We also thank and praise the men and women of the Intelligence Community. They work tirelessly in the shadows to keep all of us safer. Congress must do its part to provide stronger tools and stronger leadership to help them in the job of protecting America.

RUSH HOLT.

ADDITIONAL VIEWS

The House Permanent Select Committee on Intelligence markup of H.R. 10, the 9/11 Recommendations Implementation Act, was historic--the first public markup of intelligence legislation in at least ten years.

As the Chairman and Ranking Member indicated during the markup session, the Committee considered only the portions of H.R. 10 that pertained to intelligence reorganization--namely, Title I and discrete sections in Titles III and V that were within the jurisdiction of this Committee. 1

[Footnote] The Chairman and Ranking Member agreed that Members were not being asked to endorse portions of the bill in titles II through V outside of the Committee's expertise and jurisdiction.

[Footnote 1: Title III, sections 3101, 3102, 3103, 3104. Title V, sections 5021, 5071, 5072, 5073, 5074, 5076, 5077, 5078.]

Align H.R. 10 with Collins-Lieberman

Our efforts in the markup were aimed at strengthening H.R. 10, making it more consistent with the 9/11 Commission's recommendations and with the bipartisan Collins-Lieberman bill (S. 2845) being debated in the U.S. Senate.

In our view, the Collins-Lieberman bill provides the best vehicle for strengthening the Intelligence Community. The 9/11 Commission and the 9/11 families have endorsed it, and it was reported unanimously out of the Senate Government Affairs Committee. The Administration also released a Statement of Administration Policy supporting the bill, with limited reservations. A copy of the Statement was made part of the mark-up record upon a Unanimous Consent request by Ranking Member Harman.

The Collins-Lieberman bill establishes a National Intelligence Director with strong authorities over the Intelligence Community's budget and a decisive role in appointing the heads of elements of the Intelligence Community. In this way, S. 2845 is consistent with the recommendations of the 9/11 Commission which were built, in part, on H.R. 4104, a bill all nine Democratic members of this Committee introduced on April 1, 2004. The creation of a strong National Intelligence Director with strong authorities over budgets and agency heads was also the number one recommendation of the bipartisan, bicameral Congressional Joint Inquiry into 9/11, on which many members of this Committee on both sides of the aisle served.

In our view, H.R. 10 is too weak. If the National Intelligence Director is going to have real power, he or she must have stronger budget and hiring authority than H.R. 10 proposes. The only way to get a dozen intelligence agencies to work together to defeat terrorism is to have a single director with real power.

The Collins-Lieberman bill also has the advantage of being a `clean' bill. It focuses exclusively on the 9/11 Commission's recommendations. In contrast, H.R. 10 is a 542-page bill loaded with provisions unrelated to the 9/11 Commission's recommendations. Some of these provisions are useful, but we disagree with many others. H.R. 10 makes changes to immigration laws that have nothing to do with the 9/11 Commission's recommendations and are bad policy. The purpose of this legislation must be to make America safer--not to undermine civil liberties, expand authorities for domestic spying, or erode the rights of immigrant communities.

Finally, the Collins-Lieberman bill is 100% bipartisan. It is battle-tested, the product of two intense days of Committee mark-up where all amendments to weaken the bill were defeated on a bipartisan basis, and the bill was reported unanimously. Making America safer is not a Republican issue or a Democratic issue--it is an American issue. Terrorists are not going to check our party labels before they attack us.

Favorable vote--Move intelligence reform forward

We voted to report the bill from Committee because we feel it is urgent to move the process forward. It would be a disservice to the 9/11 families, to the spirit of the 9/11 Commission's recommendations, to our responsibilities as overseers of the Intelligence Community, and to the nation as a whole if we were to let intelligence reform die in this Committee. We made clear that we do not support H.R. 10 as drafted and were disappointed that some of our amendments to strengthen provisions of the bill in our Committee were defeated. There will be later opportunities to fix H.R. 10 on the House floor or in conference with the Senate.

The serious problems with the bill must be fixed before we will ultimately support passing it into law.

Bipartisan atmosphere a welcome change in the Committee

The winds of bipartisanship are blowing once again through this Committee, and that is very good news. The Chairman and the Ranking Member worked together to find common ground on this legislation. Although the two sides do not agree on everything, we greatly appreciate the Chairman's willingness to consult in preparing for and in marking up H.R. 10.

With limited exceptions, H.R. 10 was not drafted in a bipartisan manner. It remains to be seen how bipartisan the rest of the process will be. It is critical that we have an open process that allows amendments to the bill to remove the extraneous provisions and to strengthen the National Intelligence Director's authorities in line with the Collins-Lieberman legislation.

Amendments offered

The Amendments offered were in the spirit of strengthening H.R. 10 and strengthening our capabilities against terrorists.

We were pleased that the Committee approved three amendments in a bipartisan fashion.

Ranking Member Harman's amendment to add an independent Privacy and Civil Liberties Oversight Board, similar to a provision of S. 2845, passed on a bipartisan vote of 16-3. The Board would ensure that concerns with respect to civil liberties and privacy are appropriately considered in the development and implementation of laws, regulations, and policies related to efforts of the Intelligence Community to protect the Nation against terrorism. The inclusion of a

civil liberties board independent of the Executive branch is a critical element of responsible legislation to implement the recommendations of the 9/11 Commission. Security and civil liberties must be mutually reinforcing. The goal of this legislation is to make this country safer, not to undermine civil liberties or erode the rights of immigrant communities.

An amendment by Representative Gibbons to increase budget-reprogramming authority, modeled on the Intelligence Transformation Act (H.R. 4104), passed 12-7. We supported the Gibbons Amendment.

The Committee also accepted on a voice vote an amendment by Representatives Peterson and Boswell to strike a provision in Title V of H.R. 10 that would have allowed the President to ignore statutory direction and reorganize the Intelligence Community with only an up-or-down vote from Congress. Such a provision could conceivably be used to erase the reorganization of the Intelligence Community in Title 1. It would also have undermined this Committee's oversight of Intelligence Community reorganization.

We offered additional amendments designed to strengthen the bill and our capabilities against terrorists.

Ranking Member Harman and Representatives Boswell and Cramer introduced an amendment to strengthen the budget and personnel authorities of the National Intelligence Director, consistent with the Collins-Lieberman legislation and to declassify the `top-line' of the intelligence budget. Representatives Reyes and Ruppersberger offered an amendment to strengthen the National Intelligence Director's personnel appointment authorities. Representatives Eshoo and Holt offered an amendment to strengthen the quality of analysis in National Intelligence Estimates. Representatives Boswell and Reyes offered an amendment to strike provisions undermining the Senate's confirmation powers regarding the National Intelligence Director.

Although these amendments were defeated on party-line votes, we will continue to push to make this legislation consistent with the Collins-Lieberman legislation and the 9/11 Commission's recommendations. We intend to offer these and other amendments on the House floor to cure deficiencies in the legislation. For example, the National Counter Terrorism Center provision must be improved. The bill ought to include guidance on the development and operation of an Intelligence Community information sharing network. Instilling jointness in the Intelligence Community through mandatory personnel rotations should also be included.

Finally, Ranking Member Harman offered an amendment to express a Sense of the House that the Collins-Lieberman legislation replace H.R. 10 when the bill is considered on the floor. A point of order was raised, and the Chairman sustained the point of order. Upon appeal by Ranking Member Harman, a motion to table the appeal was agreed to on a party-line vote.

The goal is to improve intelligence against 21st century threats

We cannot take our eyes off the ultimate goals: strengthening the Intelligence Community; putting one person in charge with authority, responsibility, and accountability; and moving from a Cold War model to a more nimble, effective organization to meet and defeat 21St century threats.

In so doing, we honor the families of the 9/11 victims, who are the moral authority behind our work. Their silent witness--in our hearings and now as we move this legislation forward--is the most powerful reminder to do everything we can to prevent another 9/11. The legacy and memory of their loved ones demand nothing less.

We also thank and praise the men and women of the Intelligence Community. They work tirelessly in the shadows to keep all of us safer. Congress must do its part to provide stronger tools and stronger leadership to help them in the job of protecting America.
Jane Harman.
Silvestre Reyes.
Leonard L. Boswell.
Collin C. Peterson.
Bud Cramer.
Anna Eshoo.
C.A. Dutch Ruppersberger.

DISSENTING VIEWS

I wanted to stipulate for the record that a number of things have taken place long before the 9/11 Commission was appointed and long before the 9/11 Commission report was issued. Immediately following what took place in New York and Washington, the loss of 3,000 American lives, President Bush and his team and the Congress put together a homeland security agency and put together 22 agencies at a cost of $40 billion. We created a TSA agency at all major airports at $5.2 billion. These airports are now secure and people feel safe flying. We gave the airline industry $15 billion.

We enacted the PATRIOT Act, which now allows law enforcement agencies all over this country to communicate with one another and has allowed us and our law enforcement people to arrest people in Buffalo, New York and Portland, Orego, who are here for no other good other than to hurt America.

We contributed between 20 and $40 billion to the City of New York to clean up what needed to be done after 9/11 and to compensate the families. We authorize, and are recruiting, a thousand new CIA agencies and a thousand new FBI agents. And they are coming online. We created TTIC. We created the JTTF in every major city in this country, and the FBI has been reorganized under Director Mueller in a way that I think the main message is that terrorism is their number one agenda.

We invaded Afghanistan at a cost of $18 billion to the taxpayers, dismantled al Qaeda, and disrupted the al Qaeda network that attacked our country. We have invaded Iraq. And for the first time in the history of the country, there will be elections to elect their leaders in Iraq in January, and new leadership is in place.

The bottom line is, for the last 3 years, America has not been attacked. The President of the United States, President Bush and his team, and this Congress deserve some credit for that. That was well before anybody dreamed up a 9/11 Commission and well before there were any recommendations.

So the idea that somehow this President, or this Congress, has been sitting around on its hands wasting time waiting for something to happen is nonsense. We have gone after the terrorists, and we have taken the war on terror to the terrorists, and it has been effective. America has not been attacked for 3 years, and there are a lot of people in this town and other places working in dark places in the world that work for the CIA and the FBI THAT deserve the lion's share of the credit for that.

We have CIA agents embedded in the FBI and FBI agents embedded in the CIA. The Director of the FBI and the CIA talk every day. This bill that we are considering was cobbled together in the last few days by a few staff people that work for our leadership, presented to us, put on our desk last Friday with little or no input from any member of this committee, and it is a cobbled together bill. Now it may take some of the 9/11 recommendations, but to create another bureaucracy at the top of the Intelligence Community, another stovepipe makes no sense to me, particularly given the fact that there are a lot of things that have been accomplished since 9/11, a lot of good things, a lot of good communication and to create another bureaucracy and another stovepipe is not a good way to create public policy.

This is not a good bill. It is not a bipartisan bill. And I hope that everyone on this committee will look carefully at what we are doing here. This is a rush to judgment and a rush to try and create an atmosphere that Congress has done something 40 days before the election. I think this is not the right way to create public policy, and I hope that everybody on this committee will do what they can to read this bill to make sure that it makes sense for what we want to accomplish. We have accomplished a lot. Many deserve credit, and it wasn't done in 3 days or within 10 days after receiving recommendations from the 9/11 commission.

RAY LAHOOD.