Congressional Record: September 7, 2004 (Senate)
Page S8864-S8915


 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      Mr. McCAIN (for himself, Mr. Lieberman, Mr. Specter, Mr. Bayh, 
        Mr. Graham of South Carolina, Mr. Daschle, Mrs. Clinton, Mr. 
        Nelson of Florida, Mr. Corzine, and Ms. Mikulski):
  S. 2774. A bill to implement the recommendations of the National 
Commission on Terrorist Attacks Upon the United States, and for other 
purposes; read the first time.
  Mr. McCAIN. Mr. President, this week marks the third anniversary of 
that terrible day in 2001 when terrorists attacked America's commercial 
and governmental capitals. On that occasion, in the largest attack ever 
on American soil, 2,973 innocent individuals lost their lives. The 
victimization of America went beyond this astounding number, with 
physical injuries to many, damage to our Nation's economy, and 
psychological trauma among millions who witnessed these shocking 
events.
  While nothing we do can erase this pain, we can honor and pay tribute 
to those who have suffered by ensuring that terrorists never again 
attack our land. We have come a long way since 2001 in enhancing this 
country's ability to prevent and respond to terrorist attacks, but, as 
the 9/11 Commission said in its final report, we are not yet safe. 
Increasing our safety against terrorist attack requires new strategies, 
new ways of thinking, and new ways of organizing our government.
  Today I am pleased to be joined by Senators Lieberman, Specter, Bayh, 
Graham of South Carolina, Daschle, and Clinton in introducing 
legislation designed to implement the 9/11 Commission recommendations, 
which were issued just prior to the August recess. Governor Tom Kean 
and Representative Lee Hamilton have endorsed this bill, and assured us 
that it accurately reflects the Commission's intent.
  With the introduction of this bill, the Senate now has before it 
legislation that addresses each of the Commission's 41 recommendations, 
which together are designed to build unity of effort across the U.S. 
Government--all in an effort to prevent future terrorist attacks. The 
provisions of this bill outline the shape and objectives of a global 
counterterrorism strategy, and suggest a reconfiguration of our 
national security and homeland security apparatus within the U.S. 
Government. As anyone who reads the legislation will quickly see, it 
also cuts across jurisdictional lines with respect to the Senate 
committee prerogatives. There are portions of this bill that deal with 
intelligence, foreign affairs, defense, border security and commerce, 
transportation security, and more. In normal times, naysayers would 
caution that this fact alone could paralyze this body. But these are 
not normal times. International terrorism poses a real and present 
danger to the United States, and it is our responsibility as elected 
officials to take action on the Commission's recommendations.
  I would like to highlight some of the major aspects of the bill, and 
I know that the other sponsors also will provide details on the bill's 
structure.
  The largest section of this bill concerns the reorganization of our 
intelligence community. This legislation establishes a National 
Intelligence Authority to unify the efforts of the community, and this 
new entity would be headed by a National Intelligence Director, NID. 
The NID also would act as the principal intelligence advisor to the 
President, taking over this function from the Director of Central 
Intelligence. The NID would have direct budgetary authority and 
significant personnel authority over all of the intelligence agencies, 
except those that generate intelligence that falls under the purview of 
one department alone, such as tactical military intelligence. The NID 
would have influence over the budgets for these other entities that do 
provide this very specific intelligence. Assisting the NID would be 
four deputies, including a principal deputy, another that serves 
currently as the CIA Director and would handle foreign intelligence, a 
deputy that also serves as the Under Secretary of Defense for 
Intelligence, and a fourth that handles domestic intelligence.
  Also established in this bill is a National Counterterrorism Center 
to oversee all of the U.S. Government counterterrorism operations, 
including analysis, net assessments, and guidance for joint 
counterterrorism operations. The center would be headed by a deputy-
level official who can adjudicate policy disagreements among the 
agencies and, if need be, bump them up to the National Security Council 
for a decision. In addition to the National Counterterrorism Center, 
the bill authorizes the NID to establish ``National Intelligence 
Centers'' that will address particular geographic or functional areas. 
These centers will, like the NCTC, bring together the full range of 
reporting and analysis on particular topics so that no one with a need 
to know is cut out of the loop. There are also provisions designed to 
ensure that increased centralization of the intelligence community does 
not lead to a reduction in the range of analytical views available to 
policymakers.
  Finally in the intelligence title, the bill codifies the critical 
reforms that Director Mueller has begun at the FBI, including his 
efforts to improve the FBI's intelligence capabilities and develop a 
personnel cadre that specializes in national security issues.
  In its report, the 9/11 Commission found that the biggest impediment 
to ``connecting the dots'' among diverse sources of homeland security 
information is the widespread resistance to sharing. To address this 
problem, the Commission recommended that the President create a new 
``trusted information network'' modeled on a framework developed by a 
Markle Foundation task force. This bill directs the President to create 
an information network among all Federal departments and agencies with 
responsibilities for homeland security, among State and local 
authorities, and among relevant private sector entities. The 
legislation describes key attributes that should be incorporated into 
the network and sets forth an ambitious schedule for development and 
implementation.
  The Commission report stated that, ``Of all our recommendations, 
strengthening congressional oversight may be among the most difficult 
and important. So long as oversight is governed by current 
congressional rules and resolutions, we believe the American people 
will not get the security they want and need. The United States needs a 
strong, stable, and capable congressional committee structure to give 
America's national intelligence agencies oversight, support, and 
leadership.''

[[Page S8865]]

  The Commission offered several options for how Congress should be 
restructured to best provide for strong oversight over both 
intelligence and homeland security. With respect to intelligence, it 
recommended that Congress create either a joint committee modeled after 
the Joint Atomic Energy Committee or House and Senate Committees with 
combined authorizing and appropriating powers. With respect to homeland 
security, it recommended that Congress create a single, principal point 
of oversight and review, noting that DHS officials now appear before 88 
different committees and subcommittees.
  Late last month, the Senate leadership tasked a bipartisan working 
group with examining how best to implement these recommendations and 
asked it to report back to the leadership as soon as possible. In 
recognition of this ongoing review, our bill does not propose the 
committee structures we believe should be adopted, but instead includes 
a Sense of the Congress that both houses of the 108th Congress adopt 
all necessary rule changes so that the committee structures for the 
109th Congress are revised in accordance with one of the options 
recommended by the Commission.
  It is incumbent on each member to put aside jurisdictional power 
struggles and take action that is in the interest of securing our 
homeland. We should strive to never again read a report that calls 
Congressional oversight ``dysfunctional.'' We simply must heed the 
Commissions call to action and fundamentally overhaul Congressional 
oversight for intelligence and homeland security. As the Commission 
stated, ``tinkering with the existing structure is not sufficient.''
  As recommended by the Commission, we have included provisions to help 
ensure that an incoming President-elect can start putting together his 
national security team during a transition between administrations. Our 
legislation would establish procedures for expediting security 
clearances and Senate consideration of top national security 
appointees, as well as any necessary clearances for presidential 
transition team members. In addition, it directs the President to 
consolidate security clearance responsibilities in a single Federal 
agency, and to work with the new NID to set uniform standards for 
granting security clearances so that they are accepted by all Federal 
agencies.
  One lesson from the Commissions report is that no one set of 
strategies is sufficient to prevent future terrorist attacks. The 
United States must use all of the instruments at our disposal to 
counter the short and long-term threats posed by international 
terrorism. For this reason, we have devoted an entire title of the bill 
to the role of diplomacy, foreign aid, and the military. The 
legislation would renew the U.S. commitment to Pakistan's future, in 
light of the critical role that country plays in the war on terror, and 
authorizes a substantial increase in aid to Afghanistan. It addresses 
our relations with Saudi Arabia and suggests establishing an 
international contact group to develop a multilateral counterterrorism 
strategy. Other provisions in our bill will enhance America's ability 
to fight the war of ideas by promoting universal values of democracy, 
tolerance, and openness. It authorizes increased funding for U.S. 
broadcasts to Muslim countries and would ramp up the scale of education 
and exchange programs.
  This bill notes that the proliferation of weapons of mass destruction 
is a grave and gathering threat to this country, and suggests ways to 
strengthen our nonproliferation programs. And, since portrayals of 
mistreatment of captured terrorists hinders our ability to engage in 
the wider struggle against them, this legislation both reiterates 
standards for their humane treatment once captured, and calls on the 
U.S. Government to develop a common approach to detainee treatment, 
along with its coalition partners.
  One significant way to prevent future terrorist attacks on American 
soil is to stop terrorists from entering the country in the first 
place. This bill contains a number of provisions that would enhance the 
security of our borders, transportation systems and critical 
infrastructure. For example, our legislation requires the Secretary of 
Homeland Security to work with multiple government agencies to develop 
a unified strategy to intercept terrorists, find terrorist 
facilitators, and constrain terrorist mobility both domestically and 
internationally. In addition, to efficiently screen persons entering 
the United States, we must integrate the multiple terrorist screening 
systems already in place. This bill would require the Secretary of 
Homeland Security to develop a comprehensive screening system that 
brings together an integrated network of screening points, and to work 
to fully implement the entry and exit functions of the U.S. VISIT 
system at all ports of entry as quickly as possible.
  The Commission also pointed out what appears to be a gaping hole in 
our border security. I am referring to the ability of people who claim 
to be United States citizens to orally attest to their citizenship when 
passing from Canada or Mexico into the United States. Numerous reports, 
including a recent GAO study, point to our porous borders as potential 
terrorist entryways into this country. Our legislation would require 
everyone entering the U.S. to present a passport, at a minimum.
  Of course, travel documents only work insofar as they are authentic 
and can be authenticated by our officials. Our bill requires the 
Secretary of Homeland Security to establish uniform Federal standards 
for driver's licenses and birth certificates. It is long past time that 
we take action to protect these documents from being used to commit 
identity theft, terrorism, and other criminal acts.
  Although there has been considerable progress in tightening 
transportation security since September 11, the Commission made several 
recommendations to further improve the system. For example, the 
computer systems and protocols used to vet passengers before they board 
a plane are not substantially different than the systems that failed to 
prevent the 9/11 hijackers from boarding their flights. Therefore in 
this legislation we require the Transportation Security Administration 
to take over and improve the no-fly list process, and to improve the 
screening of air passengers for explosives and the screening of air 
cargo. In addition, we require DHS to set risk-based priorities for 
defending various transportation assets, and then figure out a plan and 
budget to get the job done.
  Mr. President, I am in full agreement with the Commission that we 
need to broadly address transportation security vulnerabilities. In 
fact, the Committee on Commerce, Science, and Transportation has 
already reported several legislative measures designed to improve the 
security of other transportation modes. A maritime security bill was 
signed into law in 2002, and we reported a subsequent maritime security 
measure earlier this year. We also reported, and the Senate has passed, 
a bus security bill, and our rail security legislation is pending on 
the Senate Calendar. These measures must be enacted before we adjourn.
  The Commission made a number of recommendations to further our 
national preparedness and emergency response efforts. Its report states 
that ``homeland security assistance should be based strictly on an 
assessment of risks and vulnerabilities,'' and implores that ``Congress 
should not use this money as a pork barrel.'' I heartily agree. In 
following this recommendation, the legislation directs the Secretary of 
Homeland Security to allocate assistance based on the threats, risks, 
and vulnerabilities facing a community, along with its population and 
other specific criteria. It also establishes an expert advisory panel 
to develop benchmarks for assessing the homeland security needs and 
capabilities of various communities, and rescinds the current formula 
for homeland security grants.
  The bill would also require certain broadcasters to vacate their 
television channels in a crisis so that their airwaves are available to 
first responders, and ensure that public safety organizations have 
access to this spectrum no later than January 1, 2007. In addition, it 
directs the Secretary of Homeland Security to work with other officials 
in developing effective communications capabilities, including back-up 
support. These steps are vital for closing the existing gaps in 
interoperability of emergency communications systems.

[[Page S8866]]

  The Commissioners pointed out that the private sector controls 85 
percent of the critical infrastructure in the Nation. Our bill directs 
the Secretary of Homeland Security to establish a program to promote 
private sector preparedness for terrorism and other emergencies. It 
also directs the Secretary to report to Congress regularly on the 
adequacy of the government's plans to protect our Nation's critical 
infrastructure.
  All of us who are concerned with threats to this Nation's security 
also wish to ensure that our efforts to protect Americans do not 
infringe on our civil liberties. After all, giving up the way of life 
we have fought so hard to defend is not an acceptable price for greater 
security. We must find a way to balance the two, and that is what this 
bill proposes to do. It creates a Privacy and Civil Liberties Board, as 
well as designated privacy and civil liberties officers within relevant 
Federal agencies, to analyze actions the enhanced security measures 
taken by our government and to ensure that civil liberties are 
appropriately considered as these policies are developed. The Board, 
which would reside within the Executive Office of the President, would 
advise the President and Federal agencies on the privacy and civil 
liberties implications of proposed and extant laws, as well as 
authority to oversee Federal agencies to ensure that civil liberties 
are being protected.
  In addition, the legislation requires certain agency heads to 
designate senior officers to serve as privacy and civil liberties 
resources and watchdogs. Among these officers' responsibilities is 
ensuring that their agency has a process in place to receive, 
investigate, and respond to complaints from people who report privacy 
or civil liberties violations.
  Having described the bill we are introducing today, I'd like to 
reiterate that it addresses each of the Commission's recommendations--
not more, not less. The sponsors all recognize that other legislative 
proposals will be offered that address the security of our Nation in 
the face of terrorist threats. In particular, I want to acknowledge the 
efforts by Senator Collins and Senator Lieberman, the Chairman and 
Ranking Member of the Senate Government Affairs Committee. That 
Committee has a key leadership role in this area, and it is one that I 
greatly respect. I know that they are working to report a bipartisan 
reform proposal to reform the Intelligence community in the days ahead 
and look forward to Senate debate on their proposal.
  The sponsors of today's legislation remain open to all proposals, and 
in fact, will have additional suggestions of our own. But the 
introduction of our legislation today ensures that the commendable work 
of the 9/11 Commission has a real opportunity to be debated, amended, 
and adopted. Despite the short and crowded legislative calendar, we 
urge the leadership to allow for debate on this and other proposals to 
address the 9/11 Commission's recommendations. Even in an election 
year, there is no higher priority than defending the American people 
against threats to their security.
  Mr. President, there has been much talk over recent months about the 
importance of firm resolve in the face of threats to America's security 
and its integrity. This legislation presents the Congress with an 
opportunity this year to exhibit some resolve of our own. While we will 
act in the shadow of the dark hours of September 11, we can show the 
American people--and the world--that this government is committed to 
facing down the worst threats that face us today. We can move forward--
yes, in an election year, yes, by actually finding agreement regardless 
of party or committee assignment--to better protect and preserve the 
security of this Nation. With the Senate's serious and thorough 
consideration of the Commission's recommendations, we will honor those 
who have been patient enough to afford us this opportunity to change.
  I will make two additional comments. One, we need to reform the 
institutions of government. This blueprint which outlines in 
legislative form the recommendations of the September 11 Commission are 
exactly that, a blueprint. I am confident that the Committee on 
Governmental Affairs, under the outstanding leadership of the Senator 
from Maine, Ms. Collins, working with Senator Lieberman, Senator 
Specter, and other members of the committee, will produce a legislative 
product of which everyone can be very proud. They have already begun a 
series of hearings, and I have complete confidence in their 
deliberations and their results.
  Let me also say that one of the most difficult aspects of reform will 
be reform of the institutions here and in the other body. There is no 
doubt that either one of the two committee recommendations--that there 
be a joint committee along the lines of the now defunct Joint Committee 
on Atomic Energy or two separate permanent committees. Those committees 
have to have budgetary authority. They must be able to appropriate. If 
not, those committees will be debating societies and they will not have 
the influence or power necessary or authority necessary to supervise 
America's intelligence operations.
  There are many other areas and many other ideas, including those of 
the White House and the executive branch that need to be taken into 
consideration. But I think this is a good start because if there is one 
thing all of us can agree on it is that the recommendations of the 9/11 
Commission have been embraced by virtually one and all, clearly, with 
some reservations because it is not a perfect document. But overall, 
the overwhelming majority of Americans expect that we should act on 
this blueprint as a blueprint, but, second of all, that we should act--
that we should act.
  There is no disagreement that our intelligence agencies and our 
ability to obtain the vital information that is necessary to maintain 
our national security and prevent another terrorist attack require us 
to act in an expeditious fashion.
  I understand the majority leader, in consultations with Senator 
Daschle, has laid out a schedule for the Governmental Affairs Committee 
to report out the last week in September. I think that is a very 
worthwhile cause.

  The PRESIDING OFFICER. The Senator from Connecticut.
  Mr. LIEBERMAN. Mr. President, it is good to see you after the recess. 
I thank my colleague and dear friend from Arizona, Senator McCain, for 
his comments. I support him in substance and in spirit, which is to say 
the urgency of Congress reacting to the report of the 9/11 Commission.
  It was shortly after September 11 that Senator McCain and I 
introduced legislation, with Senators Specter, Bayh, and others, 
creating the National Commission on Terrorist Attacks Upon the United 
States. We believed--and we know so many others agreed--that the Nation 
needed to know as clearly and definitively as possible what had 
happened, why it had happened, and what could be done to prevent such a 
heinous attack from ever happening again.
  In particular, most understandably and movingly, the families of the 
9/11 victims rightly demanded that we learn all we could from the 
tragedy that took their loved ones from them. In its 20-month 
existence, the Commission, headed by Governor Thomas Kean and 
Congressman Lee Hamilton, brought a laser focus to its task. The 
Commission insisted on talking to the people and seeing the documents 
that could help them understand and tell the full story. The result is 
not only a definitive account of what happened on September 11, but 
also a very thoughtful and compelling analysis of why it happened and 
where we must go from here. And I take it to be a sign of not only 
tribute to the Commission but of the public concern and interest in 
what the Commission had to say, that the published volume of its 
report, unlike any I have known of in a long time, remains a bestseller 
throughout our country.
  So today, Senator McCain, Senator Specter, Senator Bayh, and I join 
together again to introduce the 9/11 Commission Report Implementation 
Act of 2004. This legislation embraces and expresses in legislative 
language all 41 of the recommendations in the Commission's final 
report. Some of those, involving calls to restructure the intelligence 
community, have already been the focus of extensive debate. Others, 
such as the proposals to crack down on fraudulent identification 
documents or to build new bridges to the Muslim world, have gotten less 
discussion. But

[[Page S8867]]

they are all--each and every one of them--the product of the 
outstanding and diligent work of the Commission and therefore deserve, 
indeed command, our attention. We did not attempt to pick and choose 
which of the 41 recommendations should be considered or legislated, or 
to edit the Commission's policy conclusions. Indeed, there are one or 
two areas where I might take a different approach to the concerns the 
Commission has raised. But the Commission's recommendations should be 
our starting point. And I believe in many cases, probably most, they 
should be our ending point as well.
  Introducing this legislation is the fulfillment of the promise we 
made on the day the Commission issued its report: that we would express 
its proposals in legislation. At that time we had no idea whether 
anything would happen on the Commission report in August or September 
or October. It was that night that Senators Frist and Daschle, our 
bipartisan leadership, asked our Governmental Affairs Committee to 
assume responsibility for considering the Commission's report and 
making a set of proposals to the Senate no later than October 1.
  This proposal we now introduce today will go to the Governmental 
Affairs Committee, formally or informally, to inform the work it is 
doing. The Governmental Affairs Committee now has the ball and will 
report to Congress, and is on a schedule, I am pleased to say, to 
report in advance of the deadline set by Senators Frist and Daschle, in 
advance of October 1.
  So what does the Commission and therefore this legislation call for? 
The Commission's final report depicts a nation that was woefully 
unprepared for the attacks of September 11. As the Commission 
concludes: We need a new strategic vision to confront terrorism and a 
new unified effort to carry out that strategy. Such unity can only be 
achieved through a dramatic transformation of the status quo of our key 
organizations and policies. That is the first order of business.
  The Commission has described how, in the course of its investigation, 
it repeatedly asked this question: Who was in charge prior to September 
11, and who is in charge today? And it never received a satisfactory 
answer. In fact, Governor Kean and Congressman Hamilton testified to us 
before our Governmental Affairs Committee that they still cannot point 
to some one individual in charge of the American intelligence effort, 
its enormous human and technological assets, and, therefore, no one who 
is personally accountable.
  This is unacceptable. This legislation rightly creates a national 
intelligence director to serve as head of the intelligence community 
and principal adviser to the President for national intelligence 
matters. The director will have strong budget, resource, and personnel 
authority to shape priorities and break down the kinds of turf barriers 
and stovepipes that stood in the way of our Government pulling together 
in one place all the information we knew prior to September 11--
information that might well have prevented the attacks of September 11 
from occurring.
  These powers are far stronger than the current authorities exercised 
by the Director of Central Intelligence. This will create the 
capability and the accountability for someone to truly lead a unified 
intelligence effort that will, in turn, greatly benefit the specific 
fight against terrorism. This intelligence director will operate 
through a new agency, to be called the National Intelligence Authority. 
This is not a large new bureaucracy, but rather a command, control and 
coordination center to achieve a unified intelligence effort. Although 
the Commission originally called for this office to be created within 
the White House, numerous experts counseled against this and the 
Commissioners themselves now agree with that counsel. As a result, this 
legislation creates the National Intelligence Authority as an 
independent entity.
  To help guarantee the government-wide antiterrorism cooperation that 
did not exist pre-9/11, the legislation also creates a National 
Counterterrorism Center, patterned on the joint commands of the 
Department of Defense, drawing on expertise from throughout the 
intelligence community. This center will serve as an analytic fusion 
center on terrorism, and will also have responsibility to develop 
operational plans for counterterrorism initiatives, and then to track 
and monitor the operations' implementation. As such, the center will 
build on the promise of the new multi-agency Terrorist Threat 
Integration Center it would replace, but go beyond that model to create 
an even more robust center that combines analytical and operational 
capabilities.
  As recommended by the Commission, the legislation also provides for 
the creation by the National Intelligence Director of a number of 
national intelligence centers focused on either specific topics like 
weapons of mass destruction or specific geographic areas such as the 
Middle East. These centers will bring together the most experienced 
intelligence experts from across the intelligence community on a given 
issue or region, and can be created or eliminated as needed, giving us 
the flexibility to hone in on evolving priorities.
  I am pleased these intelligence reform proposals have already been 
the focus of numerous hearings, and these issues, as I have said, will 
be under active consideration in the Governmental Affairs Committee in 
the coming days.
  The work on this legislation and the work that the Governmental 
Affairs Committee is doing has proceeded distinctly, separately, but 
collaboratively, and work on each has informed and, I believe, 
strengthened the other.
  I hope--I know the cosponsors of this legislation share that hope--
the package we are introducing today will be of real help to the 
Governmental Affairs Committee as it frames the legislation it--we--
will report out to the Senate. I am confident the Senate can actually 
begin to consider it well before the end of September.
  The intense debate over the Commission's recommendations on 
intelligence reform may have obscured the sweeping proposals the 
Commission made in other areas--very strong and important proposals on 
border and transportation security, on information sharing, on national 
preparedness and congressional oversight.
  Those proposals are included in this legislation as well. As a 
result, we hope its introduction will jump-start debate and 
consideration of those other vital reforms.
  First, the Commission stressed we must do all we can to stop this 
problem at the source--that is, to alter the conditions and dynamics 
that give rise to terrorism in the first place. This legislation 
includes the recommendations to strengthen our efforts to fight 
international terrorism using such tools as diplomacy and foreign aid. 
For instance, the legislation would increase U.S. foreign assistance to 
Afghanistan and renew our commitment to Pakistan. It would enhance our 
outreach to the Muslim world through U.S. broadcasts to the region, 
educational exchange programs and a fund to boost educational 
opportunities for Muslim youth.
  This will be a long and difficult challenge, however, and we must 
assume international terrorism will be with us for years to come and 
prepare accordingly. In addition to the intelligence community reforms 
I have already mentioned, the Commission calls for a range of new 
programs and policies to combat terror.
  Information sharing is one such critical step. Terrorism has made the 
homeland part of the frontlines, but too many government officials 
still believe information related to terrorist threats must be 
carefully hoarded among a select group. Even colleagues within the 
intelligence community are often not trusted with vital information, 
much less officials outside the national security elites or in state 
and local government. We must break down these information barriers and 
engage a far broader community in the task of fighting terrorism. This 
will would create an urgently needed information sharing network to 
break down the information stovepipes that currently hamper our efforts 
to stay one step ahead of the terrorists. The network, which is modeled 
on a proposal by a task force of the Markle Foundation, would consist 
of policies and information technology designed to facilitate and 
promote sharing of terrorism information throughout the Federal 
government, with state and local agencies and, as appropriate, the 
private sector.

[[Page S8868]]

The President will be required to submit an implementation plan to 
Congress, including clear deadlines, assignment of responsibilities and 
budget requirements. The proposal includes safeguards for privacy and 
civil liberties.
  The bill includes critical provisions to restrict terrorist travel--
the strategies and methods by which terrorists can, and did, come to 
this country and position themselves for attacks. It would expand our 
efforts to collect and utilize intelligence regarding terrorist travel 
strategies and methods. The legislation also requires an integrated 
screening system to ensure adequate screening at the nation's entry 
points and to access transportation systems and critical 
infrastructure. Complementary provisions in the bill require stronger 
document requirements for all travelers, including citizens, to enter 
the United States; acceleration of the automated biometric entry and 
exit system known as U.S.-Visit; and improved security for 
identification documents such as driver licenses and birth 
certificates.
  In the area of transportation security, the 9/11 Commission warned 
against the government's heavy focus on passenger aviation to the near 
exclusion of other modes of transportation. As its Final Report states, 
``[o]ver 90 percent of the nation's $5.3 billion annual investment in 
the [Transportation Security Administration] goes to aviation--to fight 
the last war.'' Yet we are investing little in protecting the 14 
million Americans who use transit systems each weekday, or safeguarding 
our port systems that handle millions of shipping containers each year. 
What is lacking, the Commission states, is ``a forward-looking 
strategic plan systematically analyzing assets, risks, costs and 
benefits.'' Following its recommendations, this legislation calls for a 
comprehensive transportation security strategy to assess risks and set 
priorities across all modes of transportation. It also seeks to close 
ongoing gaps in aviation security by requiring the Transportation 
Security Administration, rather than the airlines, to screen passenger 
names against a consolidated terrorist watchlist. Additional aviation-
related measures include explosives screening for all passengers and 
their carry-on bags, accelerated research and deployment of explosives 
detection technologies, and measures to improve the security of cargo 
traveling on passenger aircraft.

  To help deter terrorist attacks and minimize the effect of any 
attacks that do occur, we must improve our preparedness capabilities 
and this legislation includes the Commission's recommended steps to do 
so. The bill would require that homeland security preparedness grants 
be distributed solely on the basis of criteria related to threat and 
risk, eliminating the per state minimum in current law. It would 
facilitate first responder communications by assigning certain radio 
spectrum to public safety agencies for their use--an important step 
toward solving the critical challenge of enabling first responders to 
talk to one another during an emergency. Fighting terrorism is a 
challenge for our entire national community and the Commission also 
stressed the importance of preparedness within the private sector. This 
legislation requires the Department of Homeland Security to promote a 
voluntary preparedness standard for the private sector. It also presses 
the Secretary of DHS to complete efforts to inventory the nation's 
critical infrastructure, assess the threats and vulnerabilities 
regarding these critical assets, and ensure there are measures to 
protect them.
  The Commission recognized that these new policies and programs will 
raise important issues regarding privacy and civil liberties and called 
for a new Privacy and Civil Liberties Oversight Board to ensure the 
protection of these liberties as laws and policies are developed and 
implemented to protect the nation from terrorism. This legislation 
creates such a board, which will consist of five individuals appointed 
by the President and confirmed by the Senate. In addition to advising 
the President and federal agencies, the board will have strong 
authority to conduct investigations and oversight of government actions 
in the war on terror.
  Finally, as we look to the changes the Commission has urged for 
executive branch structures and programs, we cannot neglect the 
Commission's call to reform our own structures and its indictment of 
the status quo of congressional oversight of intelligence. We have to 
clean and reshape not only the executive branch, but we have to clean 
out and reshape our own house.
  The Commission concluded that the Intelligence Committees of the 
House and Senate are not organized currently to provide the necessary 
leadership and oversight for intelligence and counterterrorism, and 
that jurisdiction over the Department of Homeland Security is also too 
broadly dispersed.
  The legislation we are introducing today incorporates the mandate of 
the Commission that each Chamber reform its rules to create a more 
powerful Intelligence Committee and to consolidate oversight of the 
Department of Homeland Security in a single committee in each Chamber.
  Clearly, we have our work cut out for us. But nothing is more 
important than to respond not just in a timely but in an urgent way to 
the recommendations of the 9/11 Commission, and to do so, as the 
Commission itself did, in a way that puts partisanship aside and our 
national security first. The group of us introducing this legislation--
Senators McCain, Specter, Bayh, and I--stand shoulder to shoulder 
across party lines to achieve a safer nation, to protect the American 
people at home.
  We are confident, as we go forward, that our colleagues on both sides 
of the aisle will join us. There will be differences of opinion. It 
would be shocking if there were not. Because the recommendations of the 
Commission represent bold change and dramatically alter the status quo, 
differences of opinion will naturally occur. They ought to occur. But I 
am confident in the end they will not be partisan. In the end, we will 
act and act quickly to implement much of the 9/11 Commission's report 
so that we can say to the American people, particularly those who lost 
loved ones on September 11, that we have taken action, done whatever we 
possibly could to prevent a terrorist attack such as the one that 
occurred on September 11, 2001, from ever happening again.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Pennsylvania.
  Mr. SPECTER. Mr. President, I am pleased to join my colleagues--
Senators McCain, Lieberman, and Bayh--in introducing this legislation 
today which codifies the recommendations of the 9/11 Commission. The 9/
11 Commission has accomplished a very important mission in stimulating 
the demand of the American people that action be taken to put all of 
our intelligence agencies under one command authority. Had this been 
done prior to 9/11, it is my judgment that 9/11 could have been 
prevented.
  There was the famous FBI report from Phoenix about the suspicious 
character who wanted to learn to fly an airplane but wasn't interested 
in learning to take off or land. There were the suspicious people in 
Kuala Lumpur who turned out to be two of the terrorists known by the 
CIA to be al-Qaida, but it was not told to the INS to keep them out of 
the country. There was the information on Zacarias Moussaoui and the 
work of the FBI field office in Minneapolis with the 13-page, single-
spaced report filed by Agent Coleen Rowley. Those factors and others 
gave clear-cut clues to what was happening or about to happen. Had they 
been pursued and investigated, the chances are good that 9/11 could 
have been prevented.
  The Commission, in focusing public attention on the absolute 
necessity to have one commander, has accomplished something which had 
not been accomplished up until the present time. I served on the 
Intelligence Committee back in 1987, when we had the investigation of 
the Iran Contra affair. At that time I introduced legislation for a 
national intelligence director looking more to oversight at that time. 
In 1996, when I was chairman of the Senate Intelligence Committee, I 
introduced legislation which would have provided budget and hiring 
authority under the CIA Director. Technically, the Director of the 
Central Intelligence Agency has for some time--I believe going back to 
1947--the overall direction of the intelligence community. But without 
budget authority and without hiring and firing, it has been virtually 
meaningless. But in 1996, I proposed that legislation.

[[Page S8869]]

  In 2002, we moved for the creation of an Office of Homeland Security. 
Senator Lieberman and I introduced, 30 days after 9/11, legislation to 
create the Department of Homeland Security. But there were various 
objections to it, and the issue was not taken up seriously until mid-
2002. There was a real effort made in that legislation to have all of 
the intelligence agencies under one command authority. The House of 
Representatives passed a bill in October and left town, which they do 
from time to time, leaving us with the option of either taking their 
bill or not having a bill until the following spring.
  At that time I had an amendment prepared to give the Secretary of 
Homeland Security the authority to direct all of the other intelligence 
agencies. As I have said on the record before, and it is worth 
repeating briefly, I had a conversation that afternoon with Secretary 
Ridge who urged me not to offer the amendment. I told him I thought it 
had to be done. And when I declined to accept his recommendations, I 
got a call from Vice President Cheney who urged the same course. When I 
again declined, I later talked to the President that afternoon and 
decided that I would await a later date to press for having that 
authority to direct. But this has been a gaping hole in 
the intelligence apparatus forever.

  The Scowcroft Commission filed a report, still in confidential form 
but widely reputed to create an individual in charge of the overall 
intelligence agency. So, finally, we are coming to the point where we 
are thinking very seriously about having one person in charge, a 
national director of intelligence, thanks to the focus of the 9/11 
Commission.
  The Government Affairs Committee on which I serve, with the 
leadership of Senator Collins, the chairman of the committee, and 
Senator Lieberman, the ranking member, did something very unusual. We 
returned in the first week of the recess on July 30 and held additional 
hearings. In reviewing the work of the 9/11 Commission at that time, I 
expressed for the record and would repeat now briefly the concerns I 
have about the so-called double hatting. The 9/11 Commission has 
recommended that the counterintelligence unit, for example, of the FBI 
stay under the direction of the Director of the FBI but report also to 
the national intelligence director so that the Director of the FBI 
counterintelligence unit would be so-called double hatted.
  Well, I do not think that can work under the very basic principle 
that no one can serve two masters.
  The same kind of concept is present on double hatting with the CIA 
Director for the Department of Defense intelligence agencies. During 
the course of the Governmental Affairs hearings, I asked Congressman 
Lee Hamilton, cochairman of the 9/11 Commission, about the possibility 
of creating the director with a 10-year term, modeled after the FBI 
Director, to be able to have someone who would outlast the tenure of 
Presidents. I think that is also a concept which ought to be 
incorporated.
  When the Governmental Affairs Committee was considering this issue 
and legislation, I prepared a draft bill which I submitted to the 
members of the Governmental Affairs Committee back on August 3 of this 
year.
  I think it would be useful to put it into the Record. I ask unanimous 
consent that the text of that draft proposal be printed in the 
Congressional Record following my statement.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See exhibit 1.)
  Mr. SPECTER. There are other proposals that have been made. The 
chairman of the Senate Intelligence Committee, Senator Roberts, has 
proposed legislation. So we have a great many ideas to choose from. As 
I sat at the Governmental Affairs hearing in early August, it was my 
hope that we would report out a bill early. I am pleased to say 
Chairman Collins has listed a markup for the week of September 20th, so 
that we should have a bill to present to the Senate early on. Then it 
is my hope we will act on this matter and act expeditiously. We have to 
get it right.
  These are complicated matters. We have been studying them for a very 
long time. We have been studying them, to my personal knowledge, going 
back to 1987 in legislation I introduced, and again in 1996, and with 
the very extensive consideration of the legislation on homeland 
security in 2002. So I think we are ready to move ahead and make the 
kinds of judgments that are tough decisions, but that is the pay grade 
around here. I think the time has come to act.
  It may not be a perfect bill. I have been in the Senate for 24 years 
now and I have not seen a perfect bill. The risks of inaction, in my 
view, are much greater than the risks of action. We know enough to make 
a sound judgment as to how to put the entire intelligence community 
under one umbrella.
  I see my colleague Senator Bayh on the floor. I yield the floor.

                               Exhibit 1

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Intelligence Reformation Act of 2004'' or ``9-11 Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purposes.
Sec. 3. Definitions.

                  TITLE I--DEPARTMENT OF INTELLIGENCE

                    Subtitle A--Executive Department

Sec. 101. Executive department.
Sec. 102. Director of Intelligence.

           Subtitle B--Office of the Director of Intelligence

Sec. 111. Office of the Director of Intelligence.
Sec. 112. Deputy Director of Intelligence.
Sec. 113. National Counterterrorism Center.
Sec. 114. Other national intelligence centers.
Sec. 115. Assistant Director of Intelligence for Research, Development, 
              and Procurement.
Sec. 116. Assistant Director of Intelligence for Civil Liberties and 
              Privacy.
Sec. 117. National Intelligence Council.
Sec. 118. General Counsel of the Department of Intelligence.
Sec. 119. Inspector General of the Department of Intelligence.
Sec. 120. Intelligence Comptroller.
Sec. 121. Chief Information Officer of the Department of Intelligence.
Sec. 122. Chief Financial Officer of the Department of Intelligence.
Sec. 123. Military status of Director of Intelligence and Deputy 
              Director of Intelligence.

         Subtitle C--Mission, Responsibilities, and Authorities

Sec. 131. Provision of national intelligence.
Sec. 132. Responsibilities of Director of Intelligence.
Sec. 133. Authorities of Director of Intelligence.

            TITLE II--ELEMENTS OF DEPARTMENT OF INTELLIGENCE

                Subtitle A--Central Intelligence Agency

Sec. 201. Central Intelligence Agency.
Sec. 202. Mission; power and authorities.

                  Subtitle B--National Security Agency

Sec. 211. National Security Agency.
Sec. 212. Mission; power and authorities.

          Subtitle C--National Geospatial-Intelligence Agency

Sec. 221. National Geospatial-Intelligence Agency.
Sec. 222. Mission; power and authorities.

               Subtitle D--National Reconnaissance Office

Sec. 231. National Reconnaissance Office.
Sec. 232. Mission; power and authorities.

                       Subtitle E--Other Offices

Sec. 241. Intelligence, counterterrorism, and counterintelligence 
              offices.
Sec. 242. Office of Civil Liberties and Privacy.

                 TITLE III--OTHER INTELLIGENCE MATTERS

 Subtitle A--Modifications and Improvements of Intelligence Authorities

Sec. 301. Sense of Congress on availability to public of certain 
              intelligence funding information.
Sec. 302. Coordination between Director of Intelligence and Secretary 
              of Defense in performance of specific functions 
              pertaining to National Foreign Intelligence Program.
Sec. 303. Role of Director of Intelligence in certain recommendations 
              to the President on appointments to intelligence 
              community.
Sec. 304. Collection tasking authority.
Sec. 305. Oversight of combat support agencies of the intelligence 
              community.
Sec. 306. Improvement of intelligence capabilities of the Federal 
              Bureau of Investigation.

     Subtitle B--Restatement of Authorities on National Geospatial-
                          Intelligence Agency

                            Part I--Missions

Sec. 311. Missions.
Sec. 312. Support for foreign countries on imagery intelligence and 
              geospatial information.

              Part II--Maps, Charts, and Geodetic Products

Sec. 321. Maps, charts, and books.

[[Page S8870]]

Sec. 322. Pilot charts.
Sec. 323. Sale of maps, charts, and navigational publications.
Sec. 324. Exchange of mapping, charting, and geodetic data with foreign 
              countries and international organizations.
Sec. 325. Public availability of maps, charts, and geodetic data.
Sec. 326. Civil actions barred.
Sec. 327. Treatment of certain operational files.

                     Part III--Personnel Management

Sec. 331. Management rights.
Sec. 332. Financial assistance to certain employees in acquisition of 
              critical skills.

                          Part IV--Definitions

Sec. 341. Definitions.

                      TITLE IV--TRANSITION MATTERS

  Subtitle A--Modification of Authorities on Elements of Intelligence 
                               Community

Sec. 401. Conforming modification of authorities on Central 
              Intelligence Agency.
Sec. 402. Other conforming modifications of law relating to missions, 
              responsibilities, and authorities of Director of 
              Intelligence and Director of Central Intelligence Agency.
Sec. 403. Conforming modification of authorities on certain Central 
              Intelligence Agency officers.
Sec. 404. Conforming modification of authorities on National Security 
              Agency.
Sec. 405. Inclusion of Department of Intelligence in intelligence 
              community.
Sec. 406. Repeal of superseded authorities on National Geospatial-
              Intelligence Agency.
Sec. 407. Other conforming amendment.

     Subtitle B--Other Transition Matters Relating to Intelligence

Sec. 411. Preservation of intelligence capabilities.
Sec. 412. General references to intelligence officials.

                    Subtitle C--Transfer of Elements

Sec. 421. Transfer of Terrorist Threat Integration Center.
Sec. 422. Transfer of Community Management Staff.
Sec. 423. Transfer of certain elements of Federal Bureau of 
              Investigation.

                   Subtitle D--Transfer of Functions

Sec. 431. Transfer of functions.
Sec. 432. Transitional authorities.
Sec. 433. Savings provisions.

                       Subtitle E--Other Matters

Sec. 441. Treatment of Department of Intelligence as executive 
              department.
Sec. 442. Executive Schedule matters.

     SEC. 2. FINDINGS; PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) Timely and accurate information about the activities, 
     capabilities, plans, and intentions of foreign powers, 
     organizations, and persons, and their agents, is essential to 
     the national security of the United States. All reasonable 
     and lawful means must be used to ensure that the United 
     States receives the best intelligence available.
       (2) The National Security Act of 1947 (50 U.S.C. 401 et 
     seq.) created a formal structure under an official who would 
     lead the Central Intelligence Agency and, in a separate role 
     as Director of Central Intelligence, the intelligence 
     community of the United States Government, and serve as the 
     principal adviser to the President on intelligence.
       (3) Executive Order 12333 (December 4, 1981; 46 F.R. 59941) 
     states that ``the United States intelligence effort shall 
     provide the President and the National Security Council with 
     the necessary information on which to base decisions 
     concerning the conduct and development of foreign, defense 
     and economic policy and the protection of United States 
     national interests from foreign security threats. All 
     departments and agencies shall cooperate fully to fulfill 
     this goal''.
       (4) The intelligence community of the United States is 
     supposed to function as a single corporate enterprise, 
     supporting those who manage the strategic interests of the 
     United States, whether political, economic, or military.
       (5) The United States has suffered through an escalating 
     cycle of intelligence failures, especially since the end of 
     the Cold War, while witnessing the onset of new and emerging 
     global threats such as terrorism and proliferation of weapons 
     of mass destruction.
       (6) The Director of Central Intelligence has no genuine 
     influence over elements of the intelligence community other 
     than the Central Intelligence Agency because, among other 
     things, the Director controls only a small portion of the 
     funds, personnel, and related assets of the intelligence 
     community. There is no structural mechanism to enforce the 
     mandate of Executive Order 12333 that all elements of the 
     intelligence community must fully cooperate with one another.
       (7) As such, the existing intelligence structure is 
     dysfunctional, and not organized to effectively respond to 
     new and emerging threats. In fact, the intelligence apparatus 
     of the United States has for decades grown more cumbersome 
     and unaccountable and may now properly be characterized as a 
     Cold War model in an era of terrorism.
       (8) The existing dysfunctional structure of the 
     intelligence community has severe consequences, as the 
     Director of Central Intelligence--or those ostensibly under 
     the Director's control--missed, ignored, or failed to connect 
     numerous warnings which could have averted the terrorist plot 
     of September 11, 2001. Similar errors may have caused the 
     Director to mislead the President on the nature of weapons of 
     mass destruction threats as the Administration weighed 
     military action against Iraq.
       (9) Despite the best efforts of the Administration of 
     President George W. Bush, Congress, and the American people, 
     much of the dysfunction in the intelligence community--
     including the lack of common terrorist watchlists and the 
     inability to detect and apprehend terrorists traveling in the 
     United States--has not been remedied in the three years since 
     the terrorist attacks of September 11, 2001.
       (10) The final report of the National Commission on 
     Terrorist Attacks Upon the United States, while making 
     certain recommendations on the restructuring of the 
     intelligence community to meet new and emerging terrorist 
     threats, leaves much discretion to Congress in determining 
     the scope and nature of the restructuring of the intelligence 
     community.
       (11) President George W. Bush on August 2, 2004, 
     specifically requested that Congress create a national 
     intelligence director in a ``free-standing entity similar to 
     a cabinet agency or an agency'' and ``who will have a great 
     deal of budget authority'' and will have ``the same 
     relationship to the White House and the President that the 
     Secretary of Defense would have, the Secretary of the 
     Department of Homeland Security, the Attorney General, [or] 
     the Secretary of the Treasury would have.'' The Executive 
     Orders issued on August 27, 2004, while properly focusing on 
     strengthened management of the intelligence community, 
     strengthening information sharing, and the creation of a 
     National Counterterrorism Center, also leaves a great deal of 
     discretion to Congress to codify these matters in law and 
     determine the scope and nature of the restructuring of the 
     intelligence community.
       (12) To effectively counter the grave threat of 
     transnational terrorism, Secretary of Defense Donald Rumsfeld 
     recently conceded, as he must, that ``strong, entrenched 
     agencies must be willing to give up some of their turf and 
     authority in exchange for a stronger, faster, more efficient, 
     government-wide effort''.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To provide for fundamental reform of the intelligence 
     community of the United States Government involving a robust 
     Department of Intelligence and Director of Intelligence with 
     control over the budgets, personnel, and related assets of 
     the intelligence community.
       (2) To compel the elements of the intelligence community to 
     work together to accomplish their common mission, much as the 
     Goldwater-Nichols Department of Defense Reorganization Act of 
     1986 (Public Law 99-433) fostered ``jointness'' among the 
     various Armed Forces, in conformance with the requirements of 
     law and Executive orders.
       (3) To facilitate the provision to the President and the 
     National Security Council of the necessary information on 
     which to base decisions concerning the development and 
     conduct of foreign policy, defense policy, and economic 
     policy, and the protection of United States national 
     interests from security threats, including threats related to 
     transnational terrorism.
       (4) To ensure that all means, consistent with United States 
     laws, Executive orders, and regulations and with full 
     consideration of the rights of United States persons, are 
     used to develop intelligence for the President and the 
     National Security Council.
       (5) To create a structure for the intelligence community 
     that will better serve the President in his duty under the 
     Constitution of the United States to protect the security of 
     the United States.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Department.--The term ``Department'' means the 
     Department of Intelligence.
       (2) Director.--The term ``Director'' means the Director of 
     Intelligence.
       (3) Intelligence.--The term ``intelligence'' includes 
     foreign intelligence and counterintelligence.
       (4) Foreign intelligence.--The term ``foreign 
     intelligence'' means information relating to the 
     capabilities, intentions, or activities of foreign 
     governments or elements thereof, foreign organizations, or 
     foreign persons, or international terrorist activities.
       (5) Counterintelligence.--The term ``counterintelligence'' 
     means information gathered, and activities conducted, to 
     protect against espionage, other intelligence activities, 
     sabotage, or assassinations conducted by or on behalf of 
     foreign governments or elements thereof, foreign 
     organizations, or foreign persons, or international terrorist 
     activities.
       (6) Intelligence community.--The term ``intelligence 
     community'' includes--
       (A) the Department, which shall include the Office of the 
     Director of Intelligence and such other offices as the 
     Director may designate or are prescribed by law;
       (B) the Central Intelligence Agency;
       (C) the National Security Agency;
       (D) the Defense Intelligence Agency;
       (E) the National Geospatial-Intelligence Agency;

[[Page S8871]]

       (F) the National Reconnaissance Office;
       (G) other offices within the Department of Defense for the 
     collection of specialized national intelligence through 
     reconnaissance programs;
       (H) the intelligence elements of the Army, Navy, Air Force, 
     and Marine Corps, the Federal Bureau of Investigation, the 
     Department of the Treasury, the Department of Energy, and the 
     Coast Guard;
       (I) the Bureau of Intelligence and Research of the 
     Department of State;
       (J) the elements of the Department of Homeland Security 
     concerned with the analyses of foreign intelligence 
     information; and
       (K) such other elements of any other department or agency 
     of the United States as may be designated by the President, 
     or designated jointly by the Director and the head of the 
     department or agency concerned, as an element of the 
     intelligence community.
       (7) National intelligence; intelligence related to the 
     national security.--The terms ``national intelligence'' and 
     ``intelligence related to the national security''--
       (A) refer to intelligence which pertains to the interests 
     of more than one department or agency of the Government; and
       (B) do not refer to counterintelligence or law enforcement 
     activities conducted by the Federal Bureau of Investigation 
     except to the extent provided for in procedures agreed to by 
     the Director and the Attorney General, or otherwise as 
     expressly provided for in this Act or otherwise provided by 
     law.
       (8) National foreign intelligence program.--The term 
     ``National Foreign Intelligence Program'' refers to all 
     programs, projects, and activities of the intelligence 
     community, as well as any other programs of the intelligence 
     community designated jointly by the Director and the head of 
     a department or agency of the United States Government or by 
     the President. Such term does not include programs, projects, 
     or activities of the military departments to acquire 
     intelligence solely for the planning and conduct of tactical 
     military operations by United States Armed Forces.
       (9) Congressional intelligence committees.--The term 
     ``congressional intelligence committees'' means--
       (A) the Select Committee on Intelligence of the Senate; and
       (B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (10) Terrorism information.--The term ``terrorism 
     information'' means any information, whether collected, 
     produced, or distributed by intelligence, law enforcement, 
     military, homeland security, or other United States 
     Government activities, relating to--
       (A) the existence, organization, capabilities, plans, 
     intentions, vulnerabilities, means of finance or material 
     support, or activities of foreign or international terrorist 
     groups or individuals, or of domestic groups or individuals 
     involved in transnational terrorism;
       (B) threats posed by such groups or individuals to the 
     United States, United States persons, or United States 
     interests, or to other nations or the persons or interests of 
     other nations;
       (C) communications of or by such groups or individuals; or
       (D) groups or individuals reasonably believed to be 
     assisting or associated with such groups or individuals.

                  TITLE I--DEPARTMENT OF INTELLIGENCE

                    Subtitle A--Executive Department

     SEC. 101. EXECUTIVE DEPARTMENT.

       (a) Executive Department.--The Department of Intelligence 
     is an executive department of the United States.
       (b) Composition.--The Department is composed of the 
     following:
       (1) The Office of the Director of Intelligence.
       (2) The elements specified in title II.
       (3) Such other offices, agencies, and activities as may be 
     established by law or by the President.
       (c) Seal.--The Director shall have a seal for the 
     Department. The design of the seal is subject to approval by 
     the President. Judicial notice shall be taken of the seal.

     SEC. 102. DIRECTOR OF INTELLIGENCE.

       (a) Director of Intelligence.--There is a Director of 
     Intelligence, who is the head of the Department of 
     Intelligence, appointed by the President, by and with the 
     advice and consent of the Senate.
       (b) Individuals Eligible for Nomination.--Any individual 
     nominated for appointment as Director shall have extensive 
     national security expertise.
       (c) Term of Office.--(1) The term of service of the 
     Director shall be 10 years.
       (2) Paragraph (1) shall apply with respect to any 
     individual appointed as Director after the date of the 
     enactment of this Act.
       (3) If the individual serving as the Director of Central 
     Intelligence on the date of the enactment of this Act is the 
     first person appointed as Director of Intelligence under this 
     section, the date of appointment of such individual as 
     Director of Intelligence shall be treated as the date of the 
     commencement of the term of service of the individual as 
     Director of Intelligence for purposes of this subsection.
       (d) Duties and Responsibilities.--The Director shall--
       (1) serve as head of the intelligence community in 
     accordance with the provisions of this Act, the National 
     Security Act of 1947 (50 U.S.C. 401 et seq.), and other 
     applicable provisions of law;
       (2) act as a principal adviser to the President for 
     intelligence related to the national security; and
       (3) determine the annual budget for intelligence and 
     intelligence-related activities of the United States 
     Government in accordance with section 133.

           Subtitle B--Office of the Director of Intelligence

     SEC. 111. OFFICE OF THE DIRECTOR OF INTELLIGENCE.

       (a) Office of Director of Intelligence.--There is within 
     the Department an Office of the Director of Intelligence.
       (b) Function.--The function of the Office of the Director 
     of Intelligence is to assist the Director in carrying out the 
     duties and responsibilities of the Director under this Act, 
     the National Security Act of 1947 (50 U.S.C. 401 et seq.), 
     and other applicable provisions of law and to carry out such 
     other duties as may be prescribed by law.
       (c) Composition.--The Office of the Director of 
     Intelligence is composed of the following:
       (1) The Deputy Director of Intelligence.
       (2) The National Counterterrorism Center.
       (3) Other national intelligence centers established under 
     section 114.
       (4) The Assistant Director of Intelligence for Research, 
     Development, and Procurement.
       (5) The Assistant Director of Intelligence for Civil 
     Liberties and Privacy.
       (6) The National Intelligence Council.
       (7) The General Counsel of the Department of Intelligence.
       (8) The Inspector General of the Department of 
     Intelligence.
       (9) The Intelligence Comptroller.
       (10) The Chief Information Officer of the Department of 
     Intelligence.
       (11) The Chief Financial Officer of the Department of 
     Intelligence.
       (12) Such other offices and officials as may be established 
     by law or the Director may establish or designate in the 
     Office.
       (d) Staff.--(1) To assist the Director in fulfilling the 
     responsibilities of the Director as head of the intelligence 
     community, the Director shall employ and utilize in the 
     Office of the Director of Intelligence a professional staff 
     having an expertise in matters relating to such 
     responsibilities, and may establish permanent positions and 
     appropriate rates of pay with respect to that staff.
       (2) The staff of the Office under paragraph (1) shall 
     include the elements of the Community Management Staff that 
     are transferred to the Office under title IV.
       (3) To the maximum extent practicable, the Director shall 
     utilize existing personnel, resources, and expertise in 
     organizing the staff of the Office under paragraph (1).

     SEC. 112. DEPUTY DIRECTOR OF INTELLIGENCE.

       (a) Deputy Director of Intelligence.--There is a Deputy 
     Director of Intelligence who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       (b) Individuals Eligible for Nomination.--Any individual 
     nominated for appointment as Deputy Director of Intelligence 
     shall have extensive national security expertise.
       (c) Duties and Responsibilities.--The Deputy Director of 
     Intelligence shall, subject to the direction of the Director, 
     be responsible for assisting the Director in carrying out the 
     responsibilities of the Director, including--
       (1) assisting the Director in the development and execution 
     of budgets under section 133, evaluating programs, and 
     exercising authority under section 133(f) with respect to 
     reprogramming and reallocation of funds and transfers of 
     personnel;
       (2) assisting the Director in the transition of elements of 
     the intelligence community to the Department under this Act;
       (3) assisting the Director in the development, 
     implementation, and management of a personnel system for 
     intelligence community personnel;
       (4) collecting data and preparing separate quarterly 
     reports on the obligation and expenditures of funds from the 
     elements of the intelligence community under the National 
     Foreign Intelligence Program;
       (5) assisting the Director in the establishment of the 
     National Counterterrorism Center and the national 
     intelligence centers;
       (6) assisting the Director in the management and 
     administration of the staff of the Office of the Director of 
     Intelligence;
       (7) assisting the Director in performing management 
     functions across the intelligence community, including the 
     management of personnel and resources;
       (8) assisting the Director in ensuring that the elements of 
     the intelligence community make better use of open source 
     intelligence analysis;
       (9) assisting the Director in directing the efficient and 
     effective tasking of national intelligence collection using 
     technical means and human sources;
       (10) assisting the Director with the establishment of 
     standards, requirements, and priorities for the analysis and 
     production of intelligence by all elements of the 
     intelligence community;
       (11) assisting the Director in overseeing the collection, 
     analysis, production, and dissemination of intelligence by 
     all elements of the intelligence community;
       (12) assisting the Director in monitoring the allocation of 
     resources for the collection, analysis, and production of 
     intelligence in order to identify any unnecessary duplication 
     in the collection, analysis and production of intelligence;
       (13) assisting the Director in directing the competitive 
     analysis of analytical products having national importance;

[[Page S8872]]

       (14) assisting the Director with the establishment of 
     priorities and requirements for daily tasking of collection, 
     analysis, and dissemination of information;
       (15) assisting the Director in conducting daily tasking of 
     collection, analysis, and dissemination of information;
       (16) assisting the Director in providing advisory guidance 
     on the tasking of collection, analysis, and dissemination of 
     information to elements of the departments and agencies of 
     the United States Government that collect intelligence and 
     are not within the National Foreign Intelligence Program;
       (17) assisting the Director with the establishment of 
     procedures and mechanisms to provide for real-time automated 
     tasking across multiple intelligence disciplines, such as 
     signals intelligence, measurement and signature intelligence, 
     human intelligence, imagery intelligence, and electronic 
     intelligence;
       (18) assisting the Director in assessing the performance of 
     the elements of the intelligence community with respect to 
     tasking requests and priorities; and
       (19) making recommendations to the Director regarding the 
     assignment within the Department of officers or employees of 
     the Central Intelligence Agency, the National Security 
     Agency, the National Geospatial-Intelligence Agency, the 
     National Reconnaissance Office, and other elements of the 
     Department to assist in the tasking of collection, analysis, 
     and dissemination of information to all elements of the 
     intelligence community under the National Foreign 
     Intelligence Program.
       (d) Power To Act as Director of Intelligence.--The Deputy 
     Director of Intelligence shall act for, and exercise the 
     powers of, the Director during the Director's absence or 
     disability or during a vacancy in the position of Director of 
     Intelligence.
       (e) Precedence in Office of Director of Intelligence.--The 
     Deputy Director of Intelligence takes precedence in the 
     Office of the Director of Intelligence immediately after the 
     Director.

     SEC. 113. NATIONAL COUNTERTERRORISM CENTER.

       (a) National Counterterrorism Center.--There is a National 
     Counterterrorism Center.
       (b) Missions.--(1) The missions of the National 
     Counterterrorism Center shall be as follows:
       (A) To serve as the primary organization within the United 
     States Government for analyzing and integrating all 
     intelligence possessed or acquired by the United States 
     Government pertaining to terrorism or counterterrorism (other 
     than purely domestic counterterrorism information) and, in 
     furtherance of such mission--
       (i) to receive, retain, and disseminate information from 
     any department, agency, or other element of the Federal 
     Government, any State or local government, or any other 
     source to the extent consistent with applicable law; and
       (ii) to respond to inquiries from any department, agency, 
     or other element of the Federal Government, or any State or 
     local government agency, that is discharging counterterrorism 
     responsibilities in order to assist such department, agency, 
     or element in discharging such responsibilities.
       (B) To conduct strategic planning for operations for 
     counterterrorism activities that integrate all instruments of 
     National power, including diplomacy, finance, military force, 
     intelligence, homeland security, and law enforcement.
       (C) Consistent with applicable law, to assign general 
     responsibilities for counterterrorism in support of strategic 
     plans under paragraph (2) to departments, agencies, and 
     elements of the United States Government having 
     counterterrorism responsibilities, and provide such 
     departments, agencies, and elements with access to 
     intelligence necessary to accomplish the responsibilities so 
     assigned, without undertaking the direction of such 
     operations.
       (D) To serve as the central and shared information 
     repository within the United States Government on terrorism 
     information.
       (E) To ensure that appropriate departments, agencies, and 
     elements of the United States Government have access to and 
     receive all-source intelligence support necessary to 
     executive their counterterrorism plans or perform 
     alternative, independent analysis.
       (F) To unify the strategic intelligence and planning of 
     operations against transnational terrorist threats across the 
     foreign-domestic divide.
       (G) To foster joint action among the department, agencies, 
     and elements of the United States Government involved in 
     counterterrorism.
       (H) To oversee the counterterrorism operations of the 
     United States Government.
       (I) To ensure that an accountable official has authority to 
     guide the Government-wide counterterrorism efforts of the 
     United States Government.
       (2) A department, agency, or element of the United States 
     Government that objects to the assignment of general 
     operational authority to such department, agency, or element 
     under paragraph (1)(C) shall notify the National Security 
     Council and the Homeland Security Council under title IX of 
     the Homeland Security Act of 2002 (6 U.S.C. 491 et seq.) of 
     such objection.
       (c) Administrator of National Counterterrorism Center.--(1) 
     There is an Administrator of the National Counterterrorism 
     Center, who shall be the head of the National 
     Counterterrorism Center, who shall be appointed from civilian 
     life by the President, by and with the advice and consent of 
     the Senate.
       (2) Any individual nominated for appointment as 
     Administrator of the National Counterterrorism Center shall 
     have significant expertise in matters relating to the 
     national security of the United States and matters relating 
     to terrorism that threatens the national security of the 
     United States.
       (d) Duties and Responsibilities of Administrator.--
     Notwithstanding any other provision of law, at the policy 
     direction of the President and the National Security Council, 
     the Administrator of the National Counterterrorism Center 
     shall, through the Director, be responsible for the following 
     insofar as it relates to counterterrorism:
       (1) Serving as the principal advisor to the President on 
     counterterrorism matters.
       (2) Directing the efficient and effective tasking of 
     national intelligence collection using technical means and 
     human sources.
       (3) Establishing standards and priorities relating to the 
     analysis and production of intelligence by the elements of 
     the intelligence community.
       (4) Directing the tasking of analysis and production of 
     intelligence by the elements of the intelligence community.
       (5) Directing competitive analysis of analytical products 
     having national importance.
       (6) Identifying intelligence requirements.
       (e) Authorities of Administrator.--In carrying out the 
     duties and responsibilities specified in subsection (d), the 
     Administrator of the National Counterterrorism Center shall--
       (1) monitor the implementation of counterterrorism 
     operations and coordinate the updating of plans for such 
     operations as needed;
       (2) oversee interagency task forces on counterterrorism 
     (including task forces of the Central Intelligence Agency, 
     the Federal Bureau of Investigation, and other departments, 
     agencies, and elements of the United States Government), and, 
     as the Administrator determines necessary, incorporate the 
     coordinating activities of such task forces into the Center;
       (3) incorporate into the Center any interagency planning of 
     operations on counterterrorism that is being conducted by the 
     staff of the National Security Council as of the date of the 
     enactment of this Act;
       (4) establish priorities and requirements for, and 
     coordinate the efficient and effective tasking of, national 
     intelligence collection on counterterrorism, whether inside 
     or outside the United States, using technical means and human 
     sources, including the establishment of mechanisms and 
     procedures to provide for automated tasking across multiple 
     intelligence disciplines in real time;
       (5) develop assessments comparing terrorist capabilities 
     and intentions with United States defenses against such 
     threats (commonly referred to as ``net-assessments'');
       (6) provide warnings of terrorist threats as directed by 
     the President;
       (7) incorporate, as necessary, the perspectives and needs 
     of State and local counterterrorism officials in implementing 
     the mission of the Center; and
       (8) access, as considered necessary by the Administrator 
     for the performance of the functions of the Center, 
     information to which the Administrator is granted access by 
     subsection (i).
       (f) Deputy Administrators of National Counterterrorism 
     Center.--(1) There is in the National Counterterrorism Center 
     a Deputy Administrator of the National Counterterrorism 
     Center for Intelligence who shall be appointed by the 
     Administrator of the National Counterterrorism Center.
       (2) There is in the National Counterterrorism Center a 
     Deputy Administrator of the National Counterterrorism Center 
     for Operations who shall be appointed by the Administrator of 
     the National Counterterrorism Center.
       (3) The Deputy Administrators shall have the 
     responsibilities set forth in subsection (g).
       (g) Duties and Responsibilities of Deputy Administrators.--
     (1) The Deputy Administrator of the National Counterterrorism 
     Center for Intelligence shall have responsibilities for 
     matters as follows:
       (A) Strategic analysis of terrorist threats.
       (B) The pooling of all-source intelligence (whether 
     domestic or foreign) about transnational terrorist 
     organizations with worldwide reach.
       (C) The development of assessment comparing terrorist 
     capabilities and intentions with United States defenses 
     against such threats (commonly referred to as ``net 
     assessments'').
       (D) The provision of warnings on terrorist threats.
       (E) The discharge of the tasking of national intelligence 
     under subsection (d) and (e).
       (F) The duties of the Terrorist Threat Integration Center 
     (TTIC) transferred to the Department under title IV.
       (2) The Deputy Administrator of the National 
     Counterterrorism Center for Operations shall have 
     responsibilities as follows:
       (A) Joint planning for the assignment of responsibilities 
     for operations to lead agencies.
       (B) The tracking of operations so assigned.
       (C) The overall coordination of operations of the 
     intelligence community.

[[Page S8873]]

       (h) Staff.--(1) To assist the Administrator of the National 
     Counterterrorism Center in fulfilling the responsibilities of 
     the Administrator under this section, the Administrator shall 
     employ and utilize in the Center a professional staff having 
     an expertise in matters relating to such responsibilities.
       (2) The head of any element of the intelligence community 
     may, upon the request of the Director, assign or detail to 
     the Center any officer or employee of such element to assist 
     the Administrator in carrying out the responsibilities of the 
     Administrator under this section.
       (i) Access to Terrorism Information.--The head of each 
     department, agency, or other element of the United States 
     Government that possesses or acquires terrorism information 
     shall--
       (1) give prompt access to such information to the 
     Administrator of the National Counterterrorism Center, unless 
     otherwise expressly prohibited by law or otherwise directed 
     by the President;
       (2) cooperate in, and facilitate the production of, reports 
     based on terrorism information with contents and formats that 
     permit dissemination of such information in a manner that 
     maximizes the utility of such information in protecting the 
     territory, people, and interests of the United States; and
       (3) if such department, agency, or other element conducts 
     diplomatic, financial, military, homeland security, 
     intelligence, or law enforcement activities relating to 
     counterterrorism, keep the Administrator fully and currently 
     informed of such activities, unless expressly prohibited by 
     law or otherwise directed by the President.

     SEC. 114. OTHER NATIONAL INTELLIGENCE CENTERS.

       (a) National Intelligence Centers.--(1) The Director shall 
     establish within the Department one or more centers (to be 
     known as ``national intelligence centers'') to address 
     intelligence priorities established by the National Security 
     Council.
       (2) Each national intelligence center shall be assigned an 
     area of intelligence responsibility, whether expressed in 
     terms of a geographic region (including the Middle East), in 
     terms of function (including counterterrorism, proliferation 
     of weapons of mass destruction, and international crime and 
     narcotics), or in other terms.
       (b) Requirements Relating to Establishment of Centers.--(1) 
     In establishing a national intelligence center, the Director 
     shall assign lead responsibility for such center to an 
     element of the intelligence community selected by the 
     Director for that purpose.
       (2) The Director shall determine the structure and size of 
     each national intelligence center.
       (3) The Director shall notify the congressional 
     intelligence committees of the establishment of a national 
     intelligence center not later than 60 days before the date of 
     the establishment of the center.
       (c) Mission of Centers.--(1) Each national intelligence 
     center shall provide joint all source intelligence analysis 
     and planning of intelligence operations in the area of 
     intelligence responsibility assigned the center by the 
     Director pursuant to intelligence priorities established by 
     the National Security Council.
       (2) As part of its intelligence analysis mission, a 
     national intelligence center shall--
       (A) undertake primary responsibility for strategic and 
     tactical intelligence analysis, fusing all-source 
     intelligence, whether foreign or domestic, on the area of 
     intelligence responsibility of the center;
       (B) develop intelligence net assessments;
       (C) provide threat warnings to the Director and to 
     appropriate departments, agencies, and elements of the United 
     States Government for further dissemination at the State and 
     local level; and
       (D) direct foreign and domestic intelligence collection and 
     analysis to address threats and to support implementation of 
     operations.
       (3) As part of its mission to plan intelligence operations, 
     a national intelligence center shall--
       (A) develop, based on policy objectives and priorities 
     established by the National Security Council, plans for 
     operations for intelligence collection for its area of 
     intelligence responsibility;
       (B) assign responsibilities for operations for intelligence 
     collection for its area of intelligence responsibility to the 
     elements of the intelligence community, which operations 
     shall be directed and conducted by the elements of the 
     intelligence community concerned; and
       (C) oversee implementation of such plans and operations, 
     and update such plans, as the administrator of the center 
     considers appropriate.
       (d) Supervision.--The administrator of each national 
     intelligence center shall report directly to the Director in 
     order to ensure adequate sharing of intelligence analysis and 
     adequate planning of intelligence operations in the area of 
     intelligence responsibility assigned to such center.
       (e) Staff of Centers.--(1) The head of an element of the 
     intelligence community shall, upon the request of the 
     administrator of a national intelligence center and with the 
     approval of the Director, assign or detail to the center any 
     personnel, including intelligence analysts and intelligence 
     operations specialists, of such element as the administrator 
     of the center considers appropriate to carry out the mission 
     of the center.
       (2) Personnel assigned or detailed to a national 
     intelligence center under paragraph (1) shall be under the 
     authority, direction, and control of the administrator of the 
     center on all matters for which the center has been assigned 
     responsibility and for all matters related to the 
     accomplishment of the mission of the center.
       (3) Performance evaluations of personnel assigned or 
     detailed to a national intelligence center under this 
     subsection shall be undertaken by the supervisors of such 
     personnel at the center.
       (4) The supervisors of the staff of a national center may, 
     with the approval of the Director, reward the staff of the 
     center for meritorious performance by the provision of such 
     performance awards as the Director shall prescribe.
       (5) The administrator of a national intelligence center may 
     recommend to the head of the element of the intelligence 
     community concerned the reassignment to such element of any 
     personnel of such element previously assigned or detailed to 
     the center.
       (f) Modification or Termination of Centers.--(1) The 
     Director may terminate a national intelligence center if the 
     Director determines that the center is no longer required to 
     meet an intelligence priority established by the National 
     Security Council.
       (2) The Director may from time to time recommend to the 
     National Security Council a modification of the mission or 
     responsibilities of a national intelligence center, and may, 
     with the approval of the National Security Council, modify 
     the mission or responsibilities of a national intelligence 
     center.
       (g) Support.--The element of the intelligence community 
     assigned lead responsibility for a national intelligence 
     center under subsection (b)(1) shall be responsible for the 
     provision of administrative support for the center, including 
     the provision of funds to the center necessary for the 
     administration of the center, until such time as the center 
     is included in the National Foreign Intelligence Program 
     Budget.

     SEC. 115. ASSISTANT DIRECTOR OF INTELLIGENCE FOR RESEARCH, 
                   DEVELOPMENT, AND PROCUREMENT.

       (a) Assistant Director of Intelligence for Research, 
     Development, and Procurement.--There is an Assistant Director 
     of Intelligence for Research, Development, and Procurement 
     who shall be appointed by the Director.
       (b) Direction.--The Assistant Director of Intelligence for 
     Research, Development, and Procurement shall report to the 
     Director regarding the activities of the Assistant Director.
       (c) Principal Responsibilities.--The Assistant Director of 
     Intelligence for Research, Development, and Procurement 
     shall--
       (1) manage and oversee the research and development 
     activities of the intelligence community with respect to the 
     intelligence and intelligence-related activities of the 
     United States Government;
       (2) ensure that research and development projects are 
     consistent with national intelligence requirements;
       (3) establish priorities among such projects in order to 
     address deficiencies in the collection, analysis, and 
     dissemination of national intelligence;
       (4) account for funding constraints in program development 
     and acquisition;
       (5) address system requirements from collection to final 
     dissemination (also known as ``end-to-end architecture''); 
     and
       (6) in consultation with the Director, the Chief 
     Information Officer of the Department of Intelligence, and 
     the Intelligence Comptroller, ensure that tactical military 
     intelligence systems, military systems, and national 
     intelligence systems are sufficiently interoperable.
       (e) Responsibility for Performance of Specific Function.--
     In carrying out responsibilities under this section, the 
     Assistant Director of Intelligence for Research, Development, 
     and Procurement shall ensure through the National 
     Reconnaissance Office the continued operation of an effective 
     unified organization for the research, development, and 
     acquisition of overhead reconnaissance systems necessary to 
     satisfy--
       (1) the requirements of all elements of the intelligence 
     community; and
       (2) the needs of the Department of Defense, including the 
     Chairman of the Joint Chiefs of Staff and the commanders of 
     the unified and specified commands.

     SEC. 116. ASSISTANT DIRECTOR OF INTELLIGENCE FOR CIVIL 
                   LIBERTIES AND PRIVACY.

       (a) Assistant Director of Intelligence for Civil Liberties 
     and Privacy.--There is an Assistant Director of Intelligence 
     for Civil Liberties and Privacy who shall be appointed by the 
     Director.
       (b) Direction.--The Assistant Director of Intelligence for 
     Civil Liberties and Privacy shall report to the Director 
     regarding the activities of the Assistant Director.
       (c) Duties and Responsibilities.--The Assistant Director of 
     Intelligence for Civil Liberties and Privacy shall--
       (1) serve as the head of the Office of Civil Liberties and 
     Privacy under section 242; and
       (2) in that capacity, have the duties and responsibilities 
     specified in that section.

     SEC. 117. NATIONAL INTELLIGENCE COUNCIL.

       (a) National Intelligence Council.--There is a National 
     Intelligence Council.
       (b) Composition.--(1) The National Intelligence Council 
     shall be composed of substantive experts on matters addressed 
     by the Council who shall be appointed by, report to, and 
     serve at the pleasure of the Director.
       (2) The Director shall prescribe appropriate security 
     requirements for service on the

[[Page S8874]]

     Council to ensure the protection of intelligence sources and 
     methods.
       (c) Duties and Responsibilities.--(1) The National 
     Intelligence Council shall--
       (A) produce national intelligence estimates for the United 
     States Government, including alternative views held by 
     elements of the intelligence community;
       (B) evaluate intelligence community-wide collection, 
     analysis, and production of intelligence and the requirements 
     and resources of the collection, analysis, and production of 
     such intelligence; and
       (C) otherwise assist the Director in carrying out the 
     responsibilities described in section 131.
       (2)(A) National intelligence estimates produced under 
     paragraph (1)(A) shall--
       (i) separately state, and distinguish between, the 
     intelligence underlying the estimate and the assumptions and 
     judgment of analysts with respect to that intelligence and 
     estimate;
       (ii) describe the quality and reliability of the 
     intelligence underlying the estimates; and
       (iii) present and explain alternative conclusions with 
     respect to the intelligence and estimates.
       (B) Before publication and distribution of a national 
     intelligence estimate, the estimate shall be certified by 
     both the Director and the Chairman of the Council as approved 
     for publication and distribution.
       (d) Access to Intelligence.--To the extent approved by the 
     President and recommended by the Director, the National 
     Intelligence Council shall have access to all intelligence 
     related to the national security that is necessary for its 
     duties and responsibilities under this section.
       (e) Contract Authority.--Subject to the direction and 
     control of the Director, the National Intelligence Council 
     may carry out its duties and responsibilities under this 
     section by contract, including contracts for substantive 
     experts necessary to assist the Council with particular 
     assessments under this section.
       (f) Staff.--The Director shall make available to the 
     National Intelligence Council such staff as may be necessary 
     to permit the Council to carry out its duties and 
     responsibilities under this section.
       (g) Availability to Policymakers.--The National 
     Intelligence Council shall be readily accessible to 
     policymaking officials of the United States.
       (h) Assistance of Intelligence Community.--The heads of the 
     elements of the intelligence community shall, as appropriate, 
     furnish such support to the National Intelligence Council, 
     including the preparation of intelligence analyses, as may be 
     required by the Director.

     SEC. 118. GENERAL COUNSEL OF THE DEPARTMENT OF INTELLIGENCE.

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

     SEC. 119. INSPECTOR GENERAL OF THE DEPARTMENT OF 
                   INTELLIGENCE.

       (a) Inspector General.--There is an Inspector General of 
     the Department of Intelligence who shall be appointed as 
     provided in section 3 of the Inspector General Act of 1978 (5 
     U.S.C. App. 3).
       (b) Supervision and Control; Removal.--(1) The Inspector 
     General of the Department of Intelligence shall report to and 
     be under the general supervision of the Director.
       (2) The Inspector General may be removed from office only 
     by the President. The President shall immediately communicate 
     in writing to the congressional intelligence committees the 
     reasons for the removal of any individual from the position 
     of Inspector General.
       (c) Duties and Responsibilities.--It shall be the duty and 
     responsibility of the Inspector General of the Department of 
     Intelligence--
       (1) to provide policy direction for, and to plan, conduct, 
     supervise, and coordinate independently, the inspections, 
     investigations, and audits relating to the programs and 
     operations of the Department and the intelligence community 
     to ensure they are conducted efficiently and in accordance 
     with applicable law and regulations;
       (2) to keep the Director fully and currently informed 
     concerning violations of law and regulations, violations of 
     civil liberties and privacy, and fraud and other serious 
     problems, abuses, and deficiencies that may occur in such 
     programs and operations, and to report the progress made in 
     implementing corrective action;
       (3) to take due regard for the protection of intelligence 
     sources and methods in the preparation of all reports issued 
     by the Inspector General, and, to the extent consistent with 
     the purpose and objective of such reports, take such measures 
     as may be appropriate to minimize the disclosure of 
     intelligence sources and methods described in such reports;
       (4) to prepare semiannual reports as provided in subsection 
     (d); and
       (5) to perform such other duties specified for inspectors 
     general in the Inspector General Act of 1978 as the Director 
     shall prescribe.
       (d) Powers and Authorities.--(1)(A) The Inspector General 
     of the Department of Intelligence shall have access to any 
     employee or any employee of a contractor of the Department or 
     any other element of the intelligence community whose 
     testimony is needed for the performance of the duties and 
     responsibilities of the Inspector General.
       (B) The Inspector General shall have direct access to all 
     records, reports, audits, reviews, documents, papers, 
     recommendations, or other materials which relate to the 
     programs and operations with respect to which the Inspector 
     General has responsibilities under this section.
       (C) The level of classification or compartmentation of 
     information shall not, in and of itself, provide a sufficient 
     rationale for denying the Inspector General access to any 
     materials under subparagraph (B).
       (2) The Inspector General is authorized to receive and 
     investigate complaints or information from any person 
     concerning the existence of an activity constituting a 
     violation of laws, rules, or regulations, or mismanagement, 
     gross waste of funds, abuse of authority, or a substantial 
     and specific danger to the public health and safety. Once 
     such complaint or information has been received from an 
     employee of the Department or any other element of the 
     intelligence community--
       (A) the Inspector General shall not disclose the identity 
     of the employee without the consent of the employee, unless 
     the Inspector General determines that such disclosure is 
     unavoidable during the course of the investigation or the 
     disclosure is made to an official of the Department of 
     Justice responsible for determining whether a prosecution 
     should be undertaken; and
       (B) no action constituting a reprisal, or threat of 
     reprisal, for making such complaint may be taken by any 
     employee of the Agency or any other element of the 
     intelligence community in a position to take such actions, 
     unless the complaint was made or the information was 
     disclosed with the knowledge that it was false or with 
     willful disregard for its truth or falsity.
       (3) The Inspector General shall have authority to 
     administer to or take from any person an oath, affirmation, 
     or affidavit, whenever necessary in the performance of the 
     Inspector General's duties, which oath, affirmation, or 
     affidavit when administered or taken by or before an employee 
     of the Office designated by the Inspector General shall have 
     the same force and effect as if administered or taken by or 
     before an officer having a seal.
       (4) The Inspector General shall have such additional powers 
     and authorities specified for inspectors general in the 
     Inspector General Act of 1978 as the Director shall 
     prescribe.
       (e) Semiannual Reports.--(1) Not later than April 30 and 
     October 31 each year, the Inspector General of the Department 
     of Intelligence shall submit to the Director a report on the 
     activities of the Inspector General under this section during 
     the six-month period ending March 31 and September 30 of such 
     year, respectively.
       (2) Each report shall include, for the period covered by 
     such report, the following:
       (A) The matters specified for semiannual reports of 
     inspectors general in section 5 of the Inspector General Act 
     of 1978.
       (B) An assessment of the effectiveness of all measures in 
     place in the Department for the protection of civil liberties 
     and privacy of United States persons.
       (3) Not later than 30 days after receipt of a report under 
     paragraph (1), the Director shall transmit to the 
     congressional intelligence committees a complete, unabridged 
     copy of such report together with such comments on such 
     report as the Director considers appropriate.
       (f) Cooperation With Other Inspectors General of 
     Intelligence Community.--Each inspector general of an element 
     of the intelligence community shall cooperate fully with the 
     Inspector General of the Department of Intelligence in the 
     performance of any duty or function by the Inspector General 
     of the Department of Intelligence under this section 
     regarding such element.
       (g) Construction of Duties Regarding Elements of 
     Intelligence Community.--The performance by the Inspector 
     General of the Department of Intelligence of any duty or 
     function regarding an element of the intelligence community 
     may not be construed to modify or affect the responsibility 
     of any other inspector general having responsibilities 
     regarding the element of the intelligence community.

     SEC. 120. INTELLIGENCE COMPTROLLER.

       (a) Intelligence Comptroller.--There is an Intelligence 
     Comptroller who shall be appointed by the Director.
       (b) Supervision.--The Intelligence Comptroller shall report 
     directly to the Director.
       (c) Duties.--The Intelligence Comptroller shall--
       (1) assist the Secretary of Defense in the preparation and 
     execution of the budget of the Department of Defense insofar 
     as such budget relates to the tactical intelligence programs;

[[Page S8875]]

       (2) assist the Deputy Director of Intelligence in the 
     preparation and execution of the budget of the intelligence 
     community under the National Foreign Intelligence Program;
       (3) provide unfettered access to the Director to financial 
     information under the National Foreign Intelligence Program; 
     and
       (4) provide information to the Deputy Director of 
     Intelligence necessary for reports under section 112(c)(4).
       (d) Staff.--The staff of the Intelligence Comptroller shall 
     consist of personnel of the intelligence community who are 
     assigned to the staff by the Director, in consultation with 
     the heads of the other elements of the intelligence 
     community.

     SEC. 121. CHIEF INFORMATION OFFICER OF THE DEPARTMENT OF 
                   INTELLIGENCE.

       (a) Chief Information Officer of Department of 
     Intelligence.--There is a Chief Information Officer of the 
     Department of Intelligence who shall be appointed by the 
     Director.
       (b) Eligibility for Appointment.--Any individual appointed 
     as Chief Information Officer of the Department of 
     Intelligence shall have extensive experience in the 
     management, operation, and maintenance of complex information 
     networks, including the use of advanced information 
     technology applications and products to promote the efficient 
     and secure exchange of information across such networks.
       (c) Duties and Responsibilities.--The Chief Information 
     Officer of the Department of Intelligence shall--
       (1) develop an integrated information technology network 
     that provides for the efficient and secure exchange of 
     intelligence information among the elements of the 
     intelligence community and, as directed by the President, 
     other departments, agencies, and elements of the United 
     States Government and of State and local governments;
       (2) develop an enterprise architecture for the intelligence 
     community and ensure that elements of the intelligence 
     community comply with such architecture;
       (3) ensure that the elements of the intelligence community 
     have direct and continuous electronic access to all 
     information (including unevaluated intelligence) necessary 
     for appropriately cleared analysts to conduct comprehensive 
     all-source analysis and for appropriately cleared 
     policymakers to perform their duties;
       (4) review and provide recommendations to the Director on 
     intelligence community budget requests for information 
     technology and national security systems;
       (5) ensure the interoperability of information technology 
     and national security systems throughout the intelligence 
     community;
       (6) promulgate and enforce standards on information 
     technology and national security systems that apply 
     throughout the intelligence community;
       (7) provide for the elimination of duplicate information 
     technology and national security systems within and between 
     the elements of the intelligence community; and
       (8) maintain a consolidated inventory of mission critical 
     and mission essential information systems for the 
     intelligence community, identify interfaces between such 
     systems and other information systems, and develop and 
     maintain contingency plans for responding to a disruption in 
     the operation of any of such systems.

     SEC. 122. CHIEF FINANCIAL OFFICER OF THE DEPARTMENT OF 
                   INTELLIGENCE.

       (a) Chief Financial Officer of Department of 
     Intelligence.--There is a Chief Financial Officer of the 
     Department of Intelligence who shall be appointed from 
     civilian life by the Director.
       (b) Supervision.--The Chief Financial Officer of the 
     Department of Intelligence shall report directly to the 
     Director.
       (c) Duties and Responsibilities.--The Chief Financial 
     Officer of the Department of Intelligence shall, in 
     consultation with the Intelligence Comptroller--
       (1) assist the Director and the Deputy Director of 
     Intelligence in the preparation and execution of the budget 
     of the elements of the intelligence community under the 
     National Foreign Intelligence Program;
       (2) assist the Secretary of Defense in the preparation and 
     execution of the budget of the Department of Defense insofar 
     as such budget relates to the elements of the intelligence 
     community within the Joint Military Intelligence Program and 
     the Tactical Intelligence and Related Activities Program; and
       (3) provide unfettered access to the Director to financial 
     information under the National Foreign Intelligence Program.
       (d) Staff.--The staff of the Chief Financial Officer of the 
     Department of Intelligence shall consist of personnel of the 
     elements of the intelligence community who are assigned to 
     the staff by the Director.

     SEC. 123. MILITARY STATUS OF DIRECTOR OF INTELLIGENCE AND 
                   DEPUTY DIRECTOR OF INTELLIGENCE.

       (a) In General.--(1) Not more than one of the individuals 
     serving in the positions specified in subsection (b) may be a 
     commissioned officer of the Armed Forces in active status.
       (2) It is the sense of Congress that at least one of the 
     individuals serving in a position specified in subsection (b) 
     should be a commissioned officer of the Armed Forces, whether 
     in active or retired status.
       (b) Covered Positions.--The positions referred to in this 
     subsection are the following:
       (1) The Director.
       (2) The Deputy Director of Intelligence.
       (c) Service of Commissioned Officers.--(1) A commissioned 
     officer of the Armed Forces, while serving in a position 
     specified in subsection (b)--
       (A) shall not be subject to supervision or control by the 
     Secretary of Defense or by any officer or employee of the 
     Department of Defense;
       (B) shall not exercise, by reason of the officer's status 
     as a commissioned officer, any supervision or control with 
     respect to any of the military or civilian personnel of the 
     Department of Defense, except as otherwise authorized by law; 
     and
       (C) shall not be counted against the numbers and 
     percentages of commissioned officers of the rank and grade of 
     such officer authorized for the military department of that 
     officer.
       (2) Except as provided in subparagraph (A) or (B) of 
     paragraph (1), the appointment of an officer of the Armed 
     Forces to a position specified in subsection (b) shall not 
     affect the status, position, rank, or grade of such officer 
     in the Armed Forces, or any emolument, perquisite, right, 
     privilege, or benefit incident to or arising out of such 
     status, position, rank, or grade.
       (3) A commissioned officer of the Armed Forces on active 
     duty who is appointed to a position specified in subsection 
     (b), while serving in such position and while remaining on 
     active duty, shall continue to receive military pay and 
     allowances and shall not receive the pay prescribed for such 
     position. Funds from which such pay and allowances are paid 
     shall be reimbursed from funds available to the Director.

         Subtitle C--Mission, Responsibilities, and Authorities

     SEC. 131. PROVISION OF NATIONAL INTELLIGENCE.

       (a) Provision of National Intelligence.--The Director shall 
     be responsible for providing national intelligence--
       (1) to the President;
       (2) to the heads of other departments and agencies of the 
     executive branch;
       (3) to the Chairman of the Joint Chiefs of Staff and senior 
     military commanders; and
       (4) upon request, to the Senate and House of 
     Representatives and the committees thereof.
       (b) Sense of Congress.--The national intelligence provided 
     under subsection (a) should be timely, objective, independent 
     of political considerations, and based upon all sources 
     available to the intelligence community.

     SEC. 132. RESPONSIBILITIES OF DIRECTOR OF INTELLIGENCE.

       (a) In General.--The Director shall, in consultation with 
     the heads of relevant entities and taking into consideration 
     the intelligence requirements established by the National 
     Security Council for purposes of national security and 
     foreign policy--
       (1) direct and manage the tasking of collection, analysis, 
     and dissemination of national intelligence by elements of the 
     intelligence community, including the establishment of 
     requirements and priorities of such tasking;
       (2) approve collection and analysis requirements, determine 
     collection and analysis priorities, and resolve conflicts in 
     collection and analysis priorities levied on national 
     collection and analysis assets, except as otherwise agreed 
     with the Secretary of Defense pursuant to the direction of 
     the President;
       (3) promote and evaluate the utility of national 
     intelligence to consumers within the United States 
     Government;
       (4) eliminate waste and unnecessary duplication within the 
     intelligence community;
       (5) establish requirements and priorities for foreign 
     intelligence information to be collected under the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et 
     seq.), and provide assistance to the Attorney General to 
     ensure that information derived from electronic surveillance 
     or physical searches under that Act is disseminated so it may 
     be used efficiently and effectively for foreign intelligence 
     purposes, except that the Director shall have no authority to 
     direct, manage, or undertake electronic surveillance or 
     physical search operations pursuant to that Act unless 
     otherwise authorized by statute or Executive order;
       (6) establish requirements and procedures for the 
     classification of information;
       (7) establish requirements and procedures for the 
     dissemination of classified information by elements of the 
     intelligence community;
       (8) establish intelligence reporting guidelines while 
     protecting intelligence sources and methods;
       (9) oversee and ensure compliance by each element of the 
     intelligence community with the statutes and Executive orders 
     of the United States, including laws related to the 
     protection of civil liberties and privacy of United States 
     persons;
       (10) protect intelligence sources and methods from 
     unauthorized disclosure as provided in subsection (b);
       (11) establish and implement policies and procedures 
     governing access to, and use of, specified data base 
     information by officers and employees of the elements of the 
     intelligence community and, as directed by the President 
     (after recommendations by the Attorney General), law 
     enforcement personnel of the United States Government;

[[Page S8876]]

       (12) develop, in consultation with the Secretary of 
     Defense, the Secretary of Homeland Security, and the heads of 
     other appropriate departments and agencies of the United 
     States Government, an integrated communications network that 
     provides interoperable communications capabilities among all 
     elements of the intelligence community and such other 
     entities and persons as the Director considers appropriate;
       (13) develop and implement, in consultation with the heads 
     of the other elements of the intelligence community, policies 
     and programs within the intelligence community for the 
     rotation of personnel among the elements of the intelligence 
     community in a manner that--
       (A) makes service in more than one element of the 
     intelligence community pursuant to such rotation a condition 
     of promotion to such positions within the intelligence 
     community as the Director shall specify;
       (B) ensures the effective management of intelligence 
     community personnel who are specially training in 
     intelligence community-wide matters; and
       (C) establishes standards for education and training that 
     will facilitate assignments to the national intelligence 
     centers under section 114;
       (14) consolidate and manage a common personnel security 
     system for the Department;
       (15) develop and implement, as necessary, a common 
     personnel system and common retirement and disability system 
     for the Department;
       (16) ensure that the composition of the personnel of the 
     intelligence community is sufficiently diverse for purposes 
     of the collection and analysis of intelligence by recruiting 
     and training for service in the intelligence community women, 
     minorities, and individuals with diverse ethnic, cultural, 
     and linguistic backgrounds;
       (17) appoint officers or employees of the Department of 
     Homeland Security, the Central Intelligence Agency, the 
     National Security Agency, the National Geospatial-
     Intelligence Agency, the National Reconnaissance Office, and 
     other elements of the Department of Intelligence to serve as 
     tasking directors to assist in the tasking of collection, 
     analysis, and dissemination of information for all elements 
     of the intelligence community under the National Foreign 
     Intelligence Program;
       (18) in accordance with the provisions of section 106 of 
     the National Security Act of 1947 (50 U.S.C. 403-6), make 
     recommendations to the President regarding the appointment of 
     certain heads of elements of the intelligence community;
       (19) develop such objectives and guidance for the 
     intelligence community as, in the judgment of the Director, 
     are necessary to ensure the timely and effective collection, 
     processing, analysis, and dissemination of intelligence, of 
     whatever nature and from whatever source derived, concerning 
     current and potential threats to the security of the United 
     States and its interests, and to ensure that the National 
     Foreign Intelligence Program is structured adequately to 
     achieve such objectives;
       (20) work with the elements of the intelligence community 
     to ensure that the intelligence collection activities of the 
     United States Government are integrated in--
       (A) collecting against enduring and emerging threats to the 
     national security of the United States;
       (B) maximizing the value of such intelligence collection to 
     the national security of the United States; and
       (C) ensuring that all collected data is available, to the 
     maximum extent practicable, for integration, analysis, and 
     dissemination to those who can act on, add value to, or 
     otherwise apply it to mission needs;
       (21) ensure that appropriate departments, agencies, and 
     elements of the United States Government have access to, and 
     receive, all-source intelligence support needed to perform 
     independent, alternative analysis;
       (22) establish policies, procedures, and mechanisms that 
     translate intelligence objectives and priorities approved by 
     the President into specific guidance for the intelligence 
     community;
       (23) receive access to all foreign intelligence, 
     counterintelligence, and national intelligence, including 
     intelligence derived from activities of any department, 
     agency, or element of the United States Government, and to 
     all other information that is related to the national 
     security or is otherwise required for the performance of the 
     duties of the Director, except in cases in which the access 
     of the Director to such information is expressly prohibited 
     by law, by the President, or by the Attorney General acting 
     at the direction of the President;
       (24) consistent with section 133, review, and approve or 
     disapprove, any proposal to--
       (A) reprogram funds within an appropriation for the 
     National Foreign Intelligence Program;
       (B) transfer funds from an appropriation for the National 
     Foreign Intelligence Program to an appropriation that is not 
     for the National Foreign Intelligence Program within the 
     intelligence community; or
       (C) transfer funds from an appropriation that is not for 
     the National Foreign Intelligence Program within the 
     intelligence community to an appropriation for the National 
     Foreign Intelligence Program;
       (25) ensure that any intelligence and operational systems 
     and architectures of the departments, agencies, and elements 
     of the United States Government are consistent with national 
     intelligence requirements set by the Director and all 
     applicable information sharing and security guidelines and 
     information privacy requirements;
       (26) in consultation with the Attorney General, set forth 
     common standards, through written requirements, procedures, 
     and guidelines, for the collection and sharing of information 
     collected abroad and in the United States by the elements of 
     the intelligence community, and with State and local 
     governments in consultation with the Secretary of Homeland 
     Security, while to the maximum extent practicable, protecting 
     the privacy and civil liberties of United States persons and 
     ensuring that relevant officers of the United States 
     Government are provided with clear, understandable, 
     consistent, effective, and lawful procedures and guidelines 
     for the collection, handling, distribution, and retention of 
     information;
       (27) require, at the outset of the intelligence collection 
     and analysis process, the creation of records and reporting, 
     for both raw and processed information, in such a manner that 
     sources and methods are protected so that the information can 
     be distributed at lower classification levels, and by 
     creating unclassified versions for distribution whenever 
     possible;
       (28) require information to be shared free of originator 
     controls, including controls requiring the consent of the 
     originating agency prior to the dissemination of the 
     information outside any other agency to which it has been 
     made available, and otherwise minimizing the applicability of 
     information compartmentalization systems to information while 
     holding personnel accountable for increased sharing of 
     intelligence related to the national security;
       (29) direct, supervise, and control all aspects of national 
     intelligence, including the programs, projects, and 
     activities of the national intelligence centers; and
       (30) perform such other functions as the President may 
     direct.
       (b) Protection of Intelligence Sources and Methods.--(1) In 
     order to protect intelligence sources and methods from 
     unauthorized disclosure and, consistent with that protection, 
     to maximize the dissemination of intelligence, the Director 
     shall establish and implement guidelines for the following 
     purposes:
       (A) The classification of information.
       (B) Access to and dissemination of intelligence, both in 
     final form and in the form when initially gathered.
       (C) The preparation of intelligence reports to ensure that, 
     to the maximum extent practicable, information contained in 
     such reports is also available in unclassified form.
       (2) The Director may not delegate a duty or authority under 
     this subsection.
       (c) Uniform Procedures for Sensitive Compartmented 
     Information.--The President, acting through the D