"The 9-11 Memorial Intelligence Reform Act"

S 1520 IS
108th CONGRESS
1st Session
S. 1520
To amend the National Security Act of 1947 to reorganize and improve the leadership of the intelligence community of the United States, to provide for the enhancement of the counterterrorism activities of the United States Government, and for other purposes.
IN THE SENATE OF THE UNITED STATES
July 31 (legislative day, JULY 21), 2003

Mr. GRAHAM of Florida (for himself, Mrs. FEINSTEIN, and Mr. ROCKEFELLER) introduced the following bill; which was read twice and referred to the Select Committee on Intelligence

A BILL
To amend the National Security Act of 1947 to reorganize and improve the leadership of the intelligence community of the United States, to provide for the enhancement of the counterterrorism activities of the United States Government, and for other purposes.
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 `9-11 Memorial Intelligence Reform Act'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Reorganization and improvement of management of intelligence community under Director of National Intelligence.

Sec. 3. Priorities on intelligence and counterterrorism activities for the intelligence community.

Sec. 4. Comprehensive strategy on combatting terrorism.

Sec. 5. Inclusion of National Intelligence Officer for Terrorism on National Intelligence Council.

Sec. 6. Enhancement of counterterrorism capabilities of the Federal Bureau of Investigation.

Sec. 7. Reform of domestic intelligence programs and activities.

Sec. 8. Enhancement of utilization of foreign intelligence surveillance authorities by the intelligence community.

Sec. 9. Plan on enhancement of signals intelligence.

Sec. 10. Personnel initiatives for the intelligence community.

Sec. 11. Budgeting and funding of intelligence and counterterrorism activities.

Sec. 12. Report on revisions to bilateral and multilateral agreements to strengthen counterterrorism efforts.

Sec. 13. Study and recommendations on improvement of congressional oversight of the intelligence community.

Sec. 14. Treatment and classification of intelligence information.

Sec. 15. Enhancement of accountability of the intelligence community for the performance of intelligence activities.

Sec. 16. Elimination or reduction in barriers to collection and sharing of intelligence for counterterrorism purposes.

Sec. 17. National Terrorist Watchlist Center.

Sec. 18. Enhancement of efforts to identify support or involvement of foreign governments in terrorist activities.

SEC. 2. REORGANIZATION AND IMPROVEMENT OF MANAGEMENT OF INTELLIGENCE COMMUNITY UNDER DIRECTOR OF NATIONAL INTELLIGENCE.

(a) REORGANIZATION AND IMPROVEMENT OF MANAGEMENT OF INTELLIGENCE COMMUNITY-

(1) IN GENERAL- Title I of the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by striking sections 102 through 104 and inserting the following new sections:

`OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE

`SEC. 102. (a) OFFICE OF DIRECTOR OF NATIONAL INTELLIGENCE- (1) There is an Office of the Director of National Intelligence. The function of the Office is to assist the Director of National Intelligence in carrying out the duties and responsibilities of the Director under this Act and to carry out such other duties as may be prescribed by law.

`(2) The Office of the Director of National Intelligence is composed of the following:

`(A) The Director of National Intelligence.

`(B) The Deputy Director of National Intelligence.

`(C) The Deputy Director of National Intelligence for Community Management.

`(D) The National Intelligence Council.

`(E) The Assistant Director of National Intelligence for Collection.

`(F) The Assistant Director of National Intelligence for Analysis and Production.

`(G) The Assistant Director of National Intelligence for Administration.

`(H) The General Counsel to the Director of National Intelligence.

`(I) The Inspector General of the Intelligence Community.

`(J) The Office of the National Counterintelligence Executive.

`(K) Such other offices and officials as may be established by law or the Director of National Intelligence may establish or designate in the Office.

`(3) 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 National 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.

`(b) DIRECTOR OF NATIONAL INTELLIGENCE- (1) There is a Director of National Intelligence who shall be appointed by the President, by and with the advice and consent of the Senate.

`(2) Any individual nominated for appointment as Director of National Intelligence shall have extensive national security expertise.

`(3) The Director of National Intelligence shall--

`(A) serve as head of the United States intelligence community; and

`(B) act as the principal adviser to the President for intelligence matters related to the national security.

`(c) DEPUTY DIRECTOR OF NATIONAL INTELLIGENCE- (1) There is a Deputy Director of National Intelligence who shall be appointed by the President, by and with the advice and consent of the Senate.

`(2) Any individual nominated for appointment as Deputy Director of National Intelligence shall have extensive national security expertise.

`(3) The Deputy Director of National Intelligence shall assist the Director of National Intelligence in carrying out the Director's responsibilities under this Act.

`(4) The Deputy Director of National Intelligence shall act for, and exercise the powers of, the Director of National Intelligence during the Director's absence or disability or during a vacancy in the position of the Director of National Intelligence.

`(5) The Deputy Director of National Intelligence takes precedence in the Office of the Director of National Intelligence immediately after the Director of National Intelligence.

`(d) DEPUTY DIRECTOR OF NATIONAL INTELLIGENCE FOR COMMUNITY MANAGEMENT- (1) There is a Deputy Director of National Intelligence for Community Management who shall be appointed by the President, by and with the advice and consent of the Senate.

`(2) Any individual nominated for appointment as Deputy Director of National Intelligence for Community

Management shall have extensive national security expertise.
`(3) The Deputy Director of National Intelligence for Community Management shall, subject to the direction of the Director of National Intelligence, be responsible for the following:

`(A) Directing the operations of the Community Management Staff.

`(B) Through the Assistant Director of National Intelligence for Collection, ensuring the efficient and effective collection of national intelligence using technical means and human sources.

`(C) Through the Assistant Director of National Intelligence for Analysis and Production, conducting oversight of the analysis and production of intelligence by elements of the intelligence community.

`(D) Through the Assistant Director of National Intelligence for Administration, performing community-wide management functions of the intelligence community, including the management of personnel and resources.

`(4) The Deputy Director of National Intelligence for Community Management takes precedence in the Office of the Director of National Intelligence immediately after the Deputy Director of National Intelligence.

`(e) MILITARY STATUS OF DIRECTOR AND DEPUTY DIRECTORS- (1) Not more than one of the individuals serving in the positions specified in paragraph (2) may be a commissioned officer of the Armed Forces, whether in active or retired status.

`(2) The positions referred to in this paragraph are the following:

`(A) The Director of National Intelligence.

`(B) The Deputy Director of National Intelligence.

`(C) The Deputy Director of National Intelligence for Community Management.

`(3) It is the sense of Congress that, under ordinary circumstances, it is desirable that one of the individuals serving in the positions specified in paragraph (2)--

`(A) be a commissioned officer of the Armed Forces, whether in active or retired status; or

`(B) have, by training or experience, an appreciation of military intelligence activities and requirements.

`(4) A commissioned officer of the Armed Forces, while serving in a position specified in paragraph (2)--

`(A) shall not be subject to supervision or control by the Secretary of Defense or by any officer or employee of the Department of Defense;

`(B) shall not exercise, by reason of the officer's status as a commissioned officer, any supervision or control with respect to any of the military or civilian personnel of the Department of Defense except as otherwise authorized by law; and

`(C) shall not be counted against the numbers and percentages of commissioned officers of the rank and grade of such officer authorized for the military department of that officer.

`(5) Except as provided in subparagraph (A) or (B) of paragraph (4), the appointment of an officer of the Armed Forces to a position specified in paragraph (2) shall not affect the status, position, rank, or grade of such officer in the Armed Forces, or any emolument, perquisite, right, privilege, or benefit incident to or arising out of such status, position, rank, or grade.

`(6) A commissioned officer of the Armed Forces on active duty who is appointed to a position specified in paragraph (2), while serving in such position and while remaining on active duty, shall continue to receive military pay and allowances and shall not receive the pay prescribed for such position. Funds from which such pay and allowances are paid shall be reimbursed from funds available to the Director of National Intelligence.

`(f) NATIONAL INTELLIGENCE COUNCIL- (1) There is a National Intelligence Council.

`(2)(A) The Council shall be composed of senior analysts within the intelligence community and substantive experts from the public and private sector, who shall be appointed by, report to, and serve at the pleasure of the Director of National Intelligence.

`(B) The Director shall prescribe appropriate security requirements for personnel appointed from the private sector as a condition of service on the Council, or as contractors of the Council or employees of such contractors, to ensure the protection of intelligence sources and methods while avoiding, wherever possible, unduly intrusive requirements which the Director considers to be unnecessary for this purpose.

`(3) The Council shall--

`(A) produce national intelligence estimates for the Government, including, whenever the Council considers appropriate, alternative views held by elements of the intelligence community;

`(B) evaluate community-wide collection and production of intelligence by the intelligence community and the requirements and resources of such collection and production; and

`(C) otherwise assist the Director in carrying out the responsibilities described in section 103(a).

`(4) Within their respective areas of expertise and under the direction of the Director, the members of the Council shall constitute the senior intelligence advisers of the intelligence community for purposes of representing the views of the intelligence community within the Government.

`(5) Subject to the direction and control of the Director, the Council may carry out its responsibilities under this subsection by contract, including contracts for substantive experts necessary to assist the Council with particular assessments under this subsection.

`(6) The Director shall make available to the Council such staff as may be necessary to permit the Council to carry out its responsibilities under this subsection, and shall take appropriate measures to ensure that the Council and its staff satisfy the needs of policymaking officials and other consumers of intelligence.

`(7) The Council shall be readily accessible to policymaking officials and other appropriate individuals not otherwise associated with the intelligence community.

`(8) The heads of elements within the intelligence community shall, as appropriate, furnish such support to the Council, including the preparation of intelligence analyses, as may be required by the Director.

`(g) ASSISTANT DIRECTOR OF NATIONAL INTELLIGENCE FOR COLLECTION- (1) There is an Assistant Director of National Intelligence for Collection who shall be appointed by the President, by and with the advice and consent of the Senate.

`(2) The Assistant Director for Collection shall assist the Director of National Intelligence in carrying out the Director's collection responsibilities in order to ensure the efficient and effective collection of national intelligence.

`(h) ASSISTANT DIRECTOR OF NATIONAL INTELLIGENCE FOR ANALYSIS AND PRODUCTION- (1) There is an Assistant Director of National Intelligence for Analysis and Production who shall be appointed by the President, by and with the advice and consent of the Senate.

`(2) The Assistant Director for Analysis and Production shall--

`(A) oversee the analysis and production of intelligence by the elements of the intelligence community;

`(B) establish standards and priorities relating to the analysis and production of intelligence by such elements;

`(C) monitor the allocation of resources for the analysis and production of intelligence in order to identify unnecessary duplication in the analysis and production of intelligence;

`(D) direct competitive analysis of analytical products having National importance;

`(E) identify intelligence to be collected for purposes of the Assistant Director of National Intelligence for Collection; and

`(F) provide such additional analysis and production of intelligence as the President and the National Security Council may require.

`(i) ASSISTANT DIRECTOR OF NATIONAL INTELLIGENCE FOR ADMINISTRATION- (1) There is an Assistant Director of National Intelligence for Administration who shall be appointed by the President, by and with the advice and consent of the Senate.

`(2) The Assistant Director for Administration shall manage such activities relating to the administration of the intelligence community as the Director of National Intelligence shall require.

`(j) GENERAL COUNSEL TO DIRECTOR OF NATIONAL INTELLIGENCE- (1) There is a General Counsel to the Director of National Intelligence who shall be appointed from civilian life by the President, by and with the advice and consent of the Senate.

`(2) The individual serving in the position of General Counsel to the Director of National Intelligence may not, while so serving, also serve as the General Counsel of the Central Intelligence Agency.

`(3) The General Counsel to the Director of National Intelligence is the chief legal officer for the Director of National Intelligence.

`(4) The General Counsel to the Director of National Intelligence shall perform such functions as the Director of National Intelligence may prescribe.

`(k) INSPECTOR GENERAL OF INTELLIGENCE COMMUNITY- (1) There shall be an Inspector General of the Intelligence Community who is appointed as provided in section 3 of the Inspector General Act of 1978 (5 U.S.C. App. 3).

`(2) The Inspector General of the Intelligence Community shall report to and be under the general supervision of the Director of National Intelligence.

`(3) The Inspector General of the Intelligence Community shall, with respect to the intelligence community as a whole and each element of the intelligence community, perform such duties, have such responsibilities, and exercise such powers specified in the Inspector General Act of 1978 as the Director of National Intelligence shall prescribe.

`(4) Each inspector general of an element of the intelligence community shall cooperate fully with the Inspector General of the Intelligence Community in the performance of any duty or function by the Inspector General of the Intelligence Community under this subsection regarding such element.

`(5) The performance by the Inspector General of the Intelligence Community 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.

`RESPONSIBILITIES OF DIRECTOR OF NATIONAL INTELLIGENCE

`SEC. 103. (a) PROVISION OF INTELLIGENCE- (1) Under the direction of the National Security Council, the Director of National Intelligence shall be responsible for providing national intelligence--

`(A) to the President;

`(B) to the heads of departments and agencies of the executive branch;

`(C) to the Chairman of the Joint Chiefs of Staff and senior military commanders; and

`(D) where appropriate, to the Senate and House of Representatives and the committees thereof.

`(2) Such national intelligence should be timely, objective, independent of political considerations, and based upon all sources available to the intelligence community.

`(b) RESPONSIBILITIES OF DIRECTOR OF NATIONAL INTELLIGENCE- The Director of National Intelligence shall--

`(1) develop an annual budget for intelligence and intelligence-related activities of the United States by--

`(A) developing and presenting to the President an annual budget for the National Foreign Intelligence Program, including review, approval, and modification of the execution of intelligence community budgets, and personnel and resource allocation in furtherance of such annual budget;

`(B) participating in the development by the Secretary of Defense of the annual budgets for the Joint Military Intelligence Program and

the Tactical Intelligence and Related Activities Program; and
`(C) managing and overseeing the execution and, if necessary, the modification of the annual budget for the National Foreign Intelligence Program, including directing the transfer of funds or personnel between elements of the intelligence community;

`(D) setting, monitoring, and enforcing consistent policy for the intelligence community;

`(E) reviewing, approving, modifying, and exercising primary management and oversight of the research and development efforts of the intelligence community;

`(F) reviewing, approving, and coordinating relationships between elements of the intelligence community and foreign intelligence, law enforcement, and security services;

`(G) insuring that the elements of the intelligence community comply fully with policies, guidance, and authorities applicable to the intelligence community on management, administration, and law;

`(2) establish the requirements and priorities to govern the collection of national intelligence by elements of the intelligence community;

`(3) approve, establish, and enforce collection processing, and dissemination requirements, determine collection priorities, and resolve conflicts in collection priorities levied on national collection assets, except as otherwise agreed with the Secretary of Defense pursuant to the direction of the President;

`(4) promote and evaluate the utility of national intelligence to consumers within the Government;

`(5) eliminate waste and unnecessary duplication within the intelligence community;

`(6) 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;

`(7) protect intelligence sources and methods from unauthorized disclosure; and

`(8) perform such other functions as the President or the National Security Council may direct.

`AUTHORITIES OF DIRECTOR OF NATIONAL INTELLIGENCE

`SEC. 103A. (a) ACCESS TO INTELLIGENCE- To the extent recommended by the National Security Council and approved by the President, the Director of National Intelligence shall have access to all intelligence related to the national security which is collected by any department, agency, or other entity of the United States.

`(b) APPROVAL OF BUDGETS- The Director of National Intelligence shall supervise the elements of the intelligence community in the preparation of their annual budgets, and shall approve such budgets before their incorporation in the National Foreign Intelligence Program.

`(c) REPROGRAMMING- (1) No funds made available under the National Foreign Intelligence Program may be reprogrammed by any element of the intelligence community without the prior approval of the Director of National Intelligence except in accordance with procedures issued by the Director.

`(2) The Secretary of Defense shall consult with the Director before reprogramming funds made available under the Joint Military Intelligence Program.

`(d) TRANSFER OF FUNDS OR PERSONNEL WITHIN NATIONAL FOREIGN INTELLIGENCE PROGRAM- (1)(A) In addition to any other authorities available under law for such purposes, the Director of National Intelligence may, with the approval of the Director of the Office of Management and Budget, transfer funds appropriated for a program within the National Foreign Intelligence Program to another such program and, in accordance with procedures to be developed by the Director, may transfer personnel authorized for an element of the intelligence community to another such element for periods up to a year.

`(B) The Director may only delegate a duty or authority given the Director under this subsection to the Deputy Director of National Intelligence for Community Management.

`(2) A transfer of funds or personnel may be made under this subsection only if--

`(A) the funds or personnel are being transferred to an activity that is a higher priority intelligence activity;

`(B) the need for funds or personnel for such activity is based on unforeseen requirements; and

`(C) the transfer does not involve a transfer of funds to the Reserve for Contingencies of the Central Intelligence Agency.

`(3) Funds transferred under this subsection shall remain available for the same period as the appropriations account to which transferred.

`(4)(A) Any transfer of funds under this subsection shall be carried out in accordance with existing procedures applicable to reprogramming notifications for the appropriate congressional committees.

`(B) Any proposed transfer for which notice is given to the appropriate congressional committees shall be accompanied by a report explaining the nature of the proposed transfer and how it satisfies the requirements of this subsection. In addition, the congressional intelligence committees shall be promptly notified of any transfer of funds made pursuant to this subsection in any case in which the transfer would not have otherwise required reprogramming notification under procedures in effect as of October 24, 1992.

`(5) The Director shall promptly submit to the congressional intelligence committees and, in the case of the transfer of personnel to or from the Department of Defense, the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives, a report on any transfer of personnel made pursuant to this subsection. The Director shall include in any such report an explanation of the nature of the transfer and how it satisfies the requirements of this subsection.

`(e) COORDINATION WITH FOREIGN GOVERNMENTS- Under the direction of the National Security Council and in a manner consistent with section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927), the Director of National Intelligence shall coordinate the relationships between elements of the intelligence community and the intelligence or security services of foreign governments on all matters involving intelligence related to the national security or involving intelligence acquired through clandestine means.

`(f) USE OF PERSONNEL- The Director of National Intelligence shall, in coordination with the heads of departments and agencies with elements in the intelligence community, institute policies and programs within the intelligence community--

`(1) to provide for the rotation of personnel between the elements of the intelligence community, where appropriate, and to make such rotated service

a factor to be considered for promotion to senior positions; and
`(2) to consolidate, wherever possible, personnel, administrative, and security programs to reduce the overall costs of these activities within the intelligence community.

`(g) STANDARDS AND QUALIFICATIONS FOR PERFORMANCE OF INTELLIGENCE ACTIVITIES- The Director of National Intelligence shall, in consultation with the heads of effected agencies, develop standards and qualifications for persons engaged in the performance of intelligence activities within the intelligence community.

`CENTRAL INTELLIGENCE AGENCY

`SEC. 104. (a) IN GENERAL- There is a Central Intelligence Agency.

`(b) FUNCTION- The function of the Agency shall be to assist the Director of the Central Intelligence Agency in carrying out the responsibilities of the Director under section 104A(d).

`DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY

`SEC. 104A. (a) DIRECTOR OF CENTRAL INTELLIGENCE AGENCY- There is a Director of the Central Intelligence Agency who shall be appointed by the President, by and with the advice and consent of the Senate.

`(b) HEAD OF CENTRAL INTELLIGENCE AGENCY- The Director of the Central Intelligence Agency shall be the head of the Central Intelligence Agency.

`(c) PROHIBITION ON SIMULTANEOUS SERVICE AS DIRECTOR OF NATIONAL INTELLIGENCE- The individual serving in the position of Director of the Central Intelligence Agency shall not, while so serving, also serve as the Director of National Intelligence.

`(d) GENERAL RESPONSIBILITIES- As head of the Central Intelligence Agency, the Director of the Central Intelligence Agency shall--

`(1) collect intelligence through human sources and by other appropriate means, except that the Agency shall have no police, subpoena, or law enforcement powers or internal security functions;

`(2) provide overall direction for the collection of national intelligence through human sources by elements of the intelligence community authorized to undertake such collection and, in coordination with other agencies of the Government which are authorized to undertake such collection, ensure that the most effective use is made of resources and that the risks to the United States and those involved in such collection are minimized;

`(3) correlate and evaluate intelligence related to the national security and provide appropriate dissemination of such intelligence;

`(4) perform such additional services as are of common concern to the elements of the intelligence community, which services the Director of National Intelligence determines can be more efficiently accomplished centrally; and

`(5) perform such other functions and duties related to intelligence affecting the national security as the President or the National Security Council may direct.

`(e) TERMINATION OF EMPLOYMENT OF CIA EMPLOYEES- (1) Notwithstanding any other provision of law, the Director of the Central Intelligence Agency may, in the Director's discretion, terminate the employment of any officer or employee of the Central Intelligence Agency whenever the Director considers such termination necessary or advisable in the interests of the United States.

`(2) Termination under paragraph (1) shall not affect the right of the officer or employee terminated to seek or accept employment in any other department or agency of the Government if declared eligible for such employment by the Office of Personnel Management.'.

(2) SENSE OF CONGRESS ON CABINET-LEVEL STATUS OF DIRECTOR OF NATIONAL INTELLIGENCE- It is the sense of Congress that the Director of National Intelligence should be a cabinet-level officer of the United States Government.

(3) GENERAL REFERENCES- (A) Any reference to the Director of Central Intelligence in the Director's capacity as the head of the intelligence community in any law, regulation, document, paper, or other record of the United States shall be deemed to be a reference to the Director of National Intelligence.

(B) Any reference to the Director of Central Intelligence in the Director's capacity as the head of the Central Intelligence Agency in any law, regulation, document, paper, or other record of the United States shall be deemed to be a reference to the Director of the Central Intelligence Agency.

(C) Any reference to the Deputy Director of Central Intelligence in the Deputy Director's capacity as deputy to the head of the intelligence community in any law, regulation, document, paper, or other record of the United States shall be deemed to be a reference to the Deputy Director of National Intelligence.

(D) Any reference to the Deputy Director of Central Intelligence for Community Management in any law, regulation, document, paper, or other record of the United States shall be deemed to be a reference to the Deputy Director of National Intelligence for Community Management.

(E) Any reference to the Assistant Director of Central Intelligence for Collection in any law, regulation, document, paper, or other record of the United States shall be deemed to be a reference to the Assistant Director of National Intelligence for Collection.

(F) Any reference to the Assistant Director of Central Intelligence for Analysis and Production in any law, regulation, document, paper, or other record of the United States shall be deemed to be a reference to the Assistant Director of National Intelligence for Analysis and Production.

(G) Any reference to the Assistant Director of Central Intelligence for Administration in any law, regulation, document, paper, or other record of the United States shall be deemed to be a reference to the Assistant Director of National Intelligence for Administration.

(b) EXECUTIVE SCHEDULE MATTERS-

(1) EXECUTIVE SCHEDULE LEVEL II- Section 5313 of title 5, United States Code, is amended by striking the item relating to the Director of Central Intelligence and inserting the following new items:

`Director of National Intelligence.

`Director of the Central Intelligence Agency.'.

(2) EXECUTIVE SCHEDULE LEVEL III- Section 5314 of title 5, United States Code, is amended by striking the item relating to the Deputy Directors of Central Intelligence and inserting the following new item:

`Deputy Directors of National Intelligence (2).'.

(3) EXECUTIVE SCHEDULE LEVEL IV- Section 5315 of title 5, United States Code, is amended--

(A) by striking the item relating to the Assistant Directors of Central Intelligence and inserting the following new item:

`Assistant Directors of National Intelligence (3).';

(B) by striking the item relating to the Inspector General of the Central Intelligence Agency and inserting the following new items:

`Inspector General, Central Intelligence Agency.

`Inspector General, Intelligence Community.'; and

(C) by inserting after the item relating to the General Counsel of the Central Intelligence Agency the following new item:

`General Counsel to the Director of National Intelligence.'.

(c) CONFORMING AND CLERICAL AMENDMENTS-

(1) NATIONAL SECURITY ACT OF 1947- (A) The National Security Act of 1947 (50 U.S.C. 401 et seq.) is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence' each place it appears in the following provisions:

(i) Section 3(4)(A) (50 U.S.C. 401a(4)(A)), both places it appears.

(ii) Section 3(4)(J) (50 U.S.C. 401a(4)(J)).

(iii) Section 3(5)(B) (50 U.S.C. 401a(5)(B)).

(iv) Section 3(6) (50 U.S.C. 401a(6)).

(v) Section 101(h)(2)(A) (50 U.S.C. 402(h)(2)(A)).

(vi) Section 101(h)(5) (50 U.S.C. 402(h)(5)).

(vii) Section 101(i)(2)(A) (50 U.S.C. 402(i)(2)(A)).

(viii) Section 101(j) (50 U.S.C. 402(j)), both places it appears.

(ix) Section 105(a) (50 U.S.C. 403-5(a)).

(x) Section 105(a)(2) (50 U.S.C. 403-5(a)(2)).

(xi) Section 105(b)(6)(A) (50 U.S.C. 403-5(b)(6)(A)).

(xii) Section 105B(a)(1) (50 U.S.C. 403-5b(a)(1)).

(xiii) Section 105B(a)(2) (50 U.S.C. 403-5b(a)(2)).

(xiv) Section 105B(b) (50 U.S.C. 403-5b(b)), both places it appears.

(xv) Section 105C(a)(6)(B)(viii) (50 U.S.C. 403-5c(a)(6)(B)(viii)).

(xvi) Section 105C(b) (50 U.S.C. 403-5c(b)), both places it appears.

(xvii) Section 105D(b) both places it appears.

(xviii) Section 106(a)(1) (50 U.S.C. 403-6(a)(1)).

(xix) Section 106(b)(1) (50 U.S.C. 403-6(b)(1)).

(xx) Section 106(b)(3) (50 U.S.C. 403-6(b)(3)).

(xxi) Section 110(b) (50 U.S.C. 404e(b)).

(xxii) Section 110(c) (50 U.S.C. 404e(c)).

(xxiii) Section 111 (50 U.S.C. 404f).

(xxiv) Section 112(a)(1) (50 U.S.C. 404g(a)(1)).

(xxv) Section 112(d)(1) (50 U.S.C. 404g(d)(1)).

(xxvi) Section 113(b)(2)(A) (50 U.S.C. 404h(b)(2)(A)).

(xxvii) Section 113(c) (50 U.S.C. 404h(c)).

(xxviii) Section 114(a)(1) (50 U.S.C. 404i(a)(1)).

(xxix) Section 114(b)(1) (50 U.S.C. 404i(b)(1)).

(xxx) Section 114(c)(1).

(xxxi) Section 115(a)(1) (50 U.S.C. 404j(a)(1)).

(xxxii) Section 115(b) (50 U.S.C. 404j(b)).

(xxxiii) Section 115(c)(1)(B) (50 U.S.C. 404j(c)(1)(B)).

(xxxiv) Section 116(a) (50 U.S.C. 404k(a)).

(xxxv) Section 116(b) (50 U.S.C. 404k(b)).

(xxxvi) Section 117(a)(1) (50 U.S.C. 404l(a)(1)).

(xxxvii) Section 303(a) (50 U.S.C. 405(a)), both places it appears.

(xxxviii) Section 501(d) (50 U.S.C. 413(d)).

(xxxix) Section 502(a) (50 U.S.C. 413a(a)).

(xl) Section 502(c) (50 U.S.C. 413a(c)).

(xli) Section 503(b) (50 U.S.C. 413b(b)).

(xlii) Section 504(d)(2) (50 U.S.C. 414(d)(2)).

(xliii) Section 506(b).

(xliv) Section 603(a) (50 U.S.C. 423(a)).

(xlv) Section 1001(a).

(B) The National Security Act of 1947 is further amended by striking `Director of Central Intelligence' and inserting `Director of the Central Intelligence Agency' each place it appears in the following provisions:

(i) Section 504(a)(2) (50 U.S.C. 414(a)(2)).

(ii) Section 504(a)(3)(C) (50 U.S.C. 414(a)(3)(C)).

(iii) Section 701(a) (50 U.S.C. 431(a)).

(iv) Section 702(a) (50 U.S.C. 432(a)).

(C) Section 3(4)(A) of that Act (50 U.S.C. 401a(4)(A)) is further amended--

(i) by striking `as provided in section 105(b)(3)' and inserting `as provided in section 102(f)'; and

(ii) by striking `the Director may' and inserting `the Director of National Intelligence may'.

(D) Section 105(b) of that Act (50 U.S.C. 403-5(b)) is further amended by striking `sections 103 and 104' and inserting `sections 103, 103A, and 104A'.

(E) Section 112(d) of that Act (50 U.S.C. 404g(d)) is further amended--

(i) in paragraph (1), by striking `section 103(c)(6) of this Act' and inserting `section 103(b)(7)'; and

(ii) in paragraph (2), by striking `of this Act'.

(F) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is amended by striking `or the Office of the Director of Central Intelligence' and inserting `the Office of the Director of National Intelligence, or the Office of the Director of the Central Intelligence Agency'.

(G) Section 1001(b) of that Act is amended by striking `Assistant Director of Central Intelligence for Administration' and inserting `Assistant Director of National Intelligence for Administration'.

(H) The subsection caption of section 105(d) of that Act (50 U.S.C. 403-5(d)) is amended by striking `THE DIRECTOR OF CENTRAL INTELLIGENCE' and inserting `DIRECTOR OF NATIONAL INTELLIGENCE'.

(I) Section 106 of that Act (50 U.S.C. 403-6) is further amended--

(i) in the subsection caption for subsection (a), by striking `DCI' and inserting `DNI'; and

(ii) in the subsection caption for subsection (b), by striking `DCI' and inserting `DNI'.

(J) The heading for section 114 of that Act (50 U.S.C. 404i) is amended to read as follows:

`ADDITIONAL ANNUAL REPORTS FROM THE DIRECTOR OF NATIONAL INTELLIGENCE'.

(K) The table of sections for that Act is amended--

(i) by striking the items relating to sections 102 through 104 and inserting the following new items:

`Sec. 102. Office of the Director of Central Intelligence.

`Sec. 103. Responsibilities of Director of National Intelligence.

`Sec. 103A. Authorities of Director of National Intelligence.

`Sec. 104. Central Intelligence Agency.

`Sec. 104A. Director of the Central Intelligence Agency.'; and

(ii) by striking the item relating to section 114 and inserting the following new item:

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

(2) CENTRAL INTELLIGENCE AGENCY ACT OF 1949- (A) Section 1 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403a) is amended--

(i) by redesignating paragraphs (a) and (c) as paragraphs (1) and (3), respectively; and

(ii) by striking paragraph (b) and inserting the following new paragraph (2):

`(2) `Director' means the Director of the Central Intelligence Agency; and'.

(B) Section 6 of that Act (50 U.S.C. 403g) is amended--

(i) by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'; and

(ii) by striking `section 103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-3(c)(6))' and inserting `section 103(b)(7) of the National Security Act of 1947'.

(C) That Act is further amended by striking `Director of Central Intelligence' each place it appears in the following provisions and inserting `Director of the Central Intelligence Agency':

(i) Section 14(b) (50 U.S.C. 403n(b)).

(ii) Section 16(b)(2) (50 U.S.C. 403p(b)(2)).

(iii) Section 16(b)(3) (50 U.S.C. 403p(b)(3)), both places it appears.

(iv) Section 20(g)(3)(B) (50 U.S.C. 403u(g)(3)(B)).

(v) Section 20(h)(1) (50 U.S.C. 403u(h)(1)).

(vi) Section 20(h)(2) (50 U.S.C. 403u(h)(2)).

(D) That Act is further amended by striking `of Central Intelligence' in each of the following provisions:

(i) Section 16(c)(1)(B) (50 U.S.C. 403p(c)(1)(B)).

(ii) Section 17(d)(1) (50 U.S.C. 403q(d)(1)).

(iii) Section 17(f) (50 U.S.C. 403q(f)), both places it appears.

(iv) Section 20(c) (50 U.S.C. 403t(c)).

(3) CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT- (A) Section 101 of the Central Intelligence Agency Retirement Act (50 U.S.C. 2001) is amended by striking paragraph (2) and inserting the following new paragraph (2):

`(2) DIRECTOR- The term `Director' means the Director of the Central Intelligence Agency.'.

(B) Section 201(c) of that Act (50 U.S.C. 2011) is amended by striking `paragraph (6) of section 103(c) of the National Security Act of 1947 (50 U.S.C. 403-3(c)) that the Director of Central Intelligence' and inserting `section 103(b)(7) of the National Security Act of 1947 that the Director of the National Intelligence'.

(4) CIA VOLUNTARY SEPARATION PAY ACT- Subsection (a)(1) of section 2 of the Central Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 2001 note) is amended to read as follows:

`(1) the term `Director' means the Director of the Central Intelligence Agency;'.

(5) INSPECTOR GENERAL ACT OF 1978- Section 8H(a)(1)(C) of the Inspector General Act of

1978 (5 U.S.C. App. 8H(a)(1)(C)) is amended by inserting before the period at the end the following: `or to the Inspector General of the Intelligence Community'.
(6) FOREIGN INTELLIGENCE SURVEILLANCE ACT OF 1978- The Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) is amended by striking `Director of Central Intelligence' each place it appears and inserting `Director of National Intelligence'.

(7) CLASSIFIED INFORMATION PROCEDURES ACT- Section 9(a) of the Classified Information Procedures Act (5 U.S.C. App.) is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'.

(8) INTELLIGENCE AUTHORIZATION ACTS-

(A) PUBLIC LAW 103-359- Section 811(c)(6)(C) of the Counterintelligence and Security Enhancements Act of 1994 (title VIII of Public Law 103-359) is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'.

(B) PUBLIC LAW 107-306- (i) Section 313(a) of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306) is amended by striking `Director of Central Intelligence, acting as the head of the intelligence community,' and inserting `Director of National Intelligence'.

(ii) Section 341 of that Act is amended by striking `Director of Central Intelligence, acting as the head of the intelligence community, shall establish in the Central Intelligence Agency' and inserting `Director of National Intelligence shall establish within the intelligence community'.

(iii) Section 343 of that Act is amended--

(I) in subsection (a)(1), by striking `Director of Central Intelligence, acting as the head of the Intelligence Community,' and inserting `Director of National Intelligence';

(II) in subsection (c), by striking `section 103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-3(c)(6))' and inserting `section 103(b)(7) of the National Security Act of 1947'; and

(III) in subsection (e)(2), by striking `section 103(c)(6)' and inserting `section 103(b)(7)'.

(iv) Section 352(b) of that Act is amended by inserting `of National Intelligence' after `The Director'.

(v) That Act is further amended by striking `Director of Central Intelligence' each place it appears in the following provisions and inserting `Director of National Intelligence':

(I) Section 902(a)(2).

(II) Section 904(e)(4).

(III) Section 904(e)(5).

(IV) Section 904(h)(1).

(vi) That Act is further amended by striking `Office of the Director of Central Intelligence' each place it appears in the following provisions and inserting `Office of the Director of National Intelligence':

(I) Section 904(c).

(II) Section 904(l).

(vii) Section 904(m) of that Act is amended by inserting `the Director of National Intelligence,' before `the Director of Central Intelligence'.

(9) USA PATRIOT ACT OF 2001- The USA PATRIOT Act of 2001 (Public Law 107-56) is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence' each place it appears in the following provisions:

(A) Section 203(d)(1) (50 U.S.C. 403-5d(d)(1)), as amended by section 897(a) of the Homeland Security Act of 2002 (Public Law 107-296), both places it appears.

(B) Section 908(a) (115 Stat. 391).

(C) Section 1006(b) (115 Stat. 394).

(10) HOMELAND SECURITY ACT OF 2002- The Homeland Security Act of 2002 (Public Law 107-296) is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence' each place it appears in the following provisions:

(A) Section 201(d)(10).

(B) Section 201(d)(12)(B).

(C) Section 202(c).

(D) Section 202(d)(2).

(E) Section 601(c)(6).

(F) Section 601(e).

(G) Section 601(f).

(H) Section 892(b)(7).

(I) Section 1001(c)(1)(A).

(11) TITLE 18, UNITED STATES CODE- (A) Section 2517(8) of title 18, United States Code, is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'.

(B) Subsections (d)(7)(B)(iv) and (i)(5)(B)(iv) of such title are amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence, or the head of another element of the intelligence community'.

(12) TITLE 44, UNITED STATES CODE- Section 3535(g)(3) of title 44, United States Code, is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'.

(13) FEDERAL RULES OF CRIMINAL PROCEDURE- Paragraphs (2) and (3) of section 6(e) of the Federal Rules of Criminal Procedure are amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'.

SEC. 3. PRIORITIES ON INTELLIGENCE AND COUNTERTERRORISM ACTIVITIES FOR THE INTELLIGENCE COMMUNITY.

(a) IN GENERAL- (1) Title I of the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by inserting after section 101 the following new section:

`PRIORITIES ON INTELLIGENCE AND COUNTERTERRORISM ACTIVITIES FOR THE INTELLIGENCE COMMUNITY

`SEC. 101A. (a) PRIORITIES- The President shall take appropriate actions to ensure the following:

`(1) The establishment of priorities for the intelligence, intelligence-related, and counterterrorism activities of the United States Government.

`(2) The discharge of the intelligence, intelligence-related, and counterterrorism activities of the United States Government by the elements of the intelligence community in accordance with the priorities.

`(b) REVIEW AND UPDATE OF PRIORITIES- (1) The President shall ensure that the priorities established under subsection (a)(1) are reviewed and updated on an annual basis.

`(2) The purpose of the reviews and updates is to ensure the most effective allocation of the personnel and other resources of the intelligence community as threats to the United States evolve.

`(c) ANNUAL REPORT- Not later than the date each year provided in section 507, the Director of National Intelligence shall submit to the congressional intelligence committees a report on the priorities for the intelligence, intelligence-related, and counterterrorism activities of the United States Government in effect under this section, including a justification for such priorities.'.

(2) The table of contents for that Act is amended by inserting after the item relating to section 101 the following new item:

`101A. Priorities on intelligence and counterterrorism activities for the intelligence community.'.

(b) SUBMITTAL OF ANNUAL REPORTS- Section 507(a)(1) of that Act (50 U.S.C. 415b(a)(1)) is amended--

(1) by redesignating subparagraphs (A) through (N) as subparagraphs (B) through (O), respectively; and

(2) by inserting before subparagraph (B), as so redesignated, the following new subparagraph (A):

`(A) The annual report on priorities for the intelligence and counterterrorism activities of the United States Government required by section 101A.'.

SEC. 4. COMPREHENSIVE STRATEGY ON COMBATTING TERRORISM.

(a) IN GENERAL- Title I of the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by inserting after section 108 the following new section:

`NATIONAL STRATEGY ON COMBATTING TERRORISM

`SEC. 108A. (a) IN GENERAL- In addition to any other duties under this Act, the National Security Council shall prepare a comprehensive government-wide strategy for combatting terrorism that fully utilizes the capabilities and expertise of the foreign policy, economic, military, intelligence, and law enforcement elements of the United States Government to address the treat of terrorism to the United States, whether in the United States or abroad, including the threat arising from the proliferation of weapons of mass destruction.

`(b) CONSULTATION- The strategy required by this section shall be developed in consultation with the following:

`(1) The Director of National Intelligence.

`(2) The Secretary of Homeland Security.

`(3) The Secretary of State.

`(4) The Secretary of Defense.

`(5) Any other officer of the United States Government that the National Security Council considers appropriate.

`(c) INTELLIGENCE COMMUNITY ELEMENTS OF STRATEGY- (1) In preparing the elements of the strategy required by this section that involve the intelligence community, the Director of National Intelligence shall develop specific plans, including programs and the allocation of appropriate resources therefor, for addressing the threat of terrorism posed by Usama Bin Ladin, al Qaeda, Hezbollah, Hamas, and other significant terrorists and terrorist organizations.

`(2) The plans developed under paragraph (1) shall, in a manner fully consistent with United States law, include the following:

`(A) The development of human resources to penetrate terrorist organizations and networks in the United States and abroad.

`(B) The utilization of current technologies, and the development and enhancement of technologies, in order to--

`(i) intercept, analyze, and exploit the communications of terrorists and terrorist organizations;

`(ii) conduct effective data-mining and other forms of similar analysis; and

`(iii) facilitate the timely and effective sharing of intelligence both within the intelligence community and between the intelligence community and other elements of the United States Government and State and local governments.

`(C) The enhancement of domestic intelligence collection and analysis, including the enhancement of information technology in order to permit links between new information and previously-acquired information.

`(D) The maximization of the use of covert actions in counterterrorism efforts.

`(E) The development of means of identifying and tracking financial support for terrorism.

`(F) The enhancement of the capabilities of the paramilitary units of the Central Intelligence Agency and the special operations forces of the Armed Forces to conduct joint operations against terrorists and terrorist organizations.

`(d) UPDATE- The National Security Council shall provide for the on-going update of the strategy required by this section in order to take into account changes in circumstances.

`(e) APPROVAL OF PRESIDENT- The strategy required by this section, including any update of the strategy

under subsection (d), shall not take effect until approved by the President.'.
`(f) REPORTS TO CONGRESS- (1) The President shall transmit to Congress the strategy required by this section, including any update of the strategy under subsection (d).

`(2) Each transmittal under this subsection shall be in both classified and unclassified form.'.

(b) CLERICAL AMENDMENTS- The table of contents for that Act is amended--

(1) by striking the following:

`Sec. 104. Annual national security strategy report.'; and

(2) by inserting after the item relating to section 108 the following new item:

`Sec. 108A. National strategy on combatting terrorism.'.

SEC. 5. INCLUSION OF NATIONAL INTELLIGENCE OFFICER FOR TERRORISM ON NATIONAL INTELLIGENCE COUNCIL.

Section 102(f)(2) of the National Security Act of 1947, as amended by section 2(a)(1) of this Act, is further amended--

(1) by redesignating subparagraph (B) as subparagraph (C); and

(2) by inserting after subparagraph (A) the following new subparagraph (B):

`(B) One of the members of the Council shall be known as the National Intelligence Officer on Terrorism. In addition to any other responsibilities for the Council, the National Intelligence Officer on Terrorism shall prepare intelligence estimates on terrorism for the use of policymakers in the Executive branch, and in Congress, and to assist the intelligence community in developing strategic analyses and assessment of terrorism. The individual appointed as the National Intelligence Officer on Terrorism shall be highly qualified in matters relating to the responsibilities of the position.'.

SEC. 6. ENHANCEMENT OF COUNTERTERRORISM CAPABILITIES OF THE FEDERAL BUREAU OF INVESTIGATION.

(a) ACTIONS REQUIRED- The Director of the Federal Bureau of Investigations shall, as soon as practicable after the date of the enactment of this Act, take appropriations actions to enhance the counterterrorism capabilities of the Federal Bureau of Investigation, including the actions set forth under subsection (b).

(b) PARTICULAR ACTIONS- The actions set forth in this subsection are actions to achieve the following:

(1) The strengthening of counterterrorism as a national program of the Federal Bureau of Investigation through the clear designation of national priorities for counterterrorism and the enforcement of adherence by the field offices of the Bureau to such priorities.

(2) The establishment and maintenance of independent career tracks for personnel in the Federal Bureau of Investigation to provide recognition and incentives for analysts, agents, and other personnel who demonstrate skill and achievement in counterterrorism activities.

(3) The improvement of the strategic analytical capabilities of the Federal Bureau of Investigation on counterterrorism through the assurance of qualifications, training, and independence of analysts and the provision of access of analysts to appropriate information and resources.

(4) The establishment and maintenance of an effective reports officer cadre at the headquarters and the field offices of the Federal Bureau of Investigation in order to facilitate the timely dissemination of intelligence from agents to analysts within the Bureau and to analysts within other elements of the intelligence community.

(5) The implementation of training for agents of the Federal Bureau of Investigation in the effective use of analysts and their work.

(6) The expansion and maintenance of recruitment of agents and analysts for the Federal Bureau of Investigation with the linguistic skills necessary for counterterrorism work.

(7) The enhancement of efforts of the Federal Bureau of Investigation to penetrate terrorist organizations operating in the United States through all available means of collection.

(8) The improvement of training for Federal Bureau of Investigation personnel in the national security law of the United States.

(9) The implementation and maintenance of mechanisms to maximize the exchange of information relating to counterterrorism between and among the Federal Bureau of Investigation, other departments and agencies of the Federal Government, and State and local governments.

(10) The identification and remediation of persistent inadequacies in the information technology of the Federal Bureau of Investigation.

SEC. 7. REFORM OF DOMESTIC INTELLIGENCE PROGRAMS AND ACTIVITIES.

(a) REPORT ON REFORM REQUIRED- Not later than 180 days after the date of the enactment of this Act, the Director of National Intelligence, the Attorney General, and the Secretary of Homeland Security shall jointly submit to Congress a report on reforms in the conduct of the domestic intelligence programs and activities of the United States Government.

(b) ELEMENTS- The report under subsection (a) shall include the following:

(1) A description of the progress made by the Federal Bureau of Investigation since September 11, 2001, in implementing reforms required for the effective conduct of domestic intelligence programs and activities, including reforms to ensure an effective balance between the pursuit of counterterrorism and the protection of civil liberties.

(2) An assessment of the experiences of other democratic nations in conducting domestic intelligence programs and activities, including the lessons of such nations that may be applicable to the conduct of the domestic intelligence programs and activities of the United States Government.

(3) An assessment of the advisability of establishing a new domestic intelligence service in the United States Government in order to enhance the conduct of the domestic intelligence programs and activities of the United States Government, including if the establishment of the service is determined advisable--

(A) a plan for the service; and

(B) a description of the manner in which the activities of the service under the plan will provide an appropriate balance between the protection of the national security and the protection of civil liberties.

(4) Any recommendations that the officials jointly consider appropriate regarding the most appropriate means of providing a domestic intelligence capability in the United States, including a description of any legislative or administrative actions necessary to implement the recommendations.

SEC. 8. ENHANCEMENT OF UTILIZATION OF FOREIGN INTELLIGENCE SURVEILLANCE AUTHORITIES BY THE INTELLIGENCE COMMUNITY.

(a) TRAINING IN AVAILABILITY AND UTILIZATION OF AUTHORITIES- (1) The Attorney General shall, in consultation with the Director of the Federal Bureau of Investigation, provide detailed training to appropriate personnel of the Federal Bureau of Investigation, and to appropriate personnel of other elements of the intelligence community, on the availability and utilization of the authorities provided by the Foreign Intelligence Surveillance

Act of 1978 (50 U.S.C. 1801 et seq.) to address terrorist threats to the United States.
(2) The Attorney General shall provide the training required by paragraph (1) through the Office of Intelligence Policy and Review of the Department of Justice and through such other elements of the Department as the Attorney General considers appropriate.

(b) DISSEMINATION OF INFORMATION ACQUIRED BY FOREIGN INTELLIGENCE SURVEILLANCE- The Attorney General and the Director of the Federal Bureau of Investigation shall jointly take appropriate actions to ensure that the information acquired through electronic surveillance, searches, and other activities under the Foreign Intelligence Surveillance Act of 1978 is disseminated on a timely basis to appropriate personnel within the Federal Bureau of Investigation, and appropriate personnel in other elements of the intelligence community, in order to facilitate the use of such information for analysis and operations to address terrorists threats to the United States.

(c) PLAN ON UTILIZATION OF FOREIGN INTELLIGENCE SURVEILLANCE AUTHORITIES TO ASSESS THREATS OF INTERNATIONAL TERRORIST GROUPS- The Attorney General and the Director of the Federal Bureau of Investigation shall jointly develop a plan to utilize the authorities under the Foreign Intelligence Surveillance Act of 1978 to provide for the full assessment of the threats posed to the United States by international terrorist groups operating within the United States, including the determination of the extent to which such groups are funded or otherwise supported by foreign governments.

SEC. 9. PLAN ON ENHANCEMENT OF SIGNALS INTELLIGENCE.

(a) REPORT ON PLAN REQUIRED- Not later than 90 days after the date of the enactment of this Act, the Director of the National Security Agency shall submit to the Director of National Intelligence and the Secretary of Defense, and to the congressional intelligence committees, a report containing a plan for the enhancement of the signals intelligence program of the United States.

(b) ELEMENTS- The plan under the report required by subsection (a) shall include the following:

(1) A detailed description of potential solutions for the technological challenges currently faced by the signals intelligence program.

(2) Mechanisms for the quarterly review of each technology development program for the signals intelligence program, including the quarterly review for each such technology development program of--

(A) the objectives of such program;

(B) the products to be delivered through such program;

(C) the funding required for such program; and

(D) the schedules associated with such program.

(3) A proposal for making the National Security Agency a full cooperating partner with the Central Intelligence Agency and the Federal Bureau of Investigation in the war on terrorism, including proposals for integrating the collection and analytic capabilities for such agencies.

(4) Recommendations for such legislative or administrative action as may be necessary to implement the plan.

(c) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED- In this section, the term `congressional intelligence committees' means--

(1) the Select Committee on Intelligence of the Senate; and

(2) the Permanent Select Committee on Intelligence of the House of Representatives.

SEC. 10. PERSONNEL INITIATIVES FOR THE INTELLIGENCE COMMUNITY.

The Director of National Intelligence shall take appropriate actions to require initiatives within the intelligence to improve and enhance the quality of the personnel of the intelligence community, including initiatives as follows:

(1) Initiatives to enhance and improve the counterterrorism training for personnel of the intelligence community, including expansion of such training to improve and enhance--

(A) intelligence sharing between and among intelligence personnel and law enforcement personnel;

(B) language capabilities;

(C) the utilization of the authorities under the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.); and

(D) watchlisting.

(2) Other initiatives to enhance and improve the language capabilities of the intelligence community, including--

(A) the establishment of a Civilian Linguist Reserve Corps; and

(B) the identification and recruitment to the intelligence community of individuals outside the intelligence community who possess language capabilities useful to intelligence and counterterrorism activities.

(3) Expansion of the current Intelligence Community Reserve Corps to include personnel outside the intelligence community who possess expertise useful to intelligence and counterterrorism activities.

(4) Initiatives to recruit and retain within the intelligence community a more ethnically and culturally diverse workforce, including initiatives to recruit and retain first-generation Americans, and to utilize the language capabilities of such individuals, while recognizing the counterintelligence challenges posed by including such individuals in the intelligence community workforce.

SEC. 11. BUDGETING AND FUNDING OF INTELLIGENCE AND COUNTERTERRORISM ACTIVITIES.

(a) BUDGET AMOUNTS FOR INTELLIGENCE ACTIVITIES- (1) Subsection (a) of section 506 of the National Security Act of 1947 (50 U.S.C. 415a(a)) is amended by adding at the end the following new paragraph:

`(5) All other intelligence and intelligence-related activities.'.

(2) The heading of that section is amended to read as follows:

`SPECIFICITY OF NATIONAL FOREIGN INTELLIGENCE PROGRAM BUDGET AMOUNTS'.

(b) COST-BENEFIT ANALYSES OF ALLOCATIONS OF RESOURCES FOR INTELLIGENCE- (1) Not later than 90 days after the date of the enactment of this Act, the Director of National Intelligence shall submit to the congressional intelligence committees a report on the feasibility and advisability of providing for the conduct, by an agency or entity outside the intelligence community, of thorough and rigorous cost-benefit analyses of the allocations of resources for the intelligence and intelligence-related activities of the United States Government.

(2) If the Director determines for purposes of the report under paragraph (1) that the conduct of cost-benefit analyses as described in that paragraph is feasible and advisable, the report under that paragraph shall include recommendations on the agency or entity to conduct the cost-benefit analyses.

(3) In this subsection, the term `congressional intelligence communities' means--

(A) the Select Committee on Intelligence of the Senate; and

(B) the Permanent Select Committee on Intelligence of the House of Representatives.

(c) FLEXIBILITY IN EXPENDITURES FOR COUNTERTERRORISM ACTIVITIES- Section 504 of the National Security Act of 1947 (50 U.S.C. 414) is amended--

(1) by redesignating subsection (e) as subsection (f); and

(2) by inserting after subsection (d) the following new subsection (e):

`(e) Notwithstanding subsection (a)(3), appropriated funds available to an intelligence agency for a counterterrorism activity may be obligated and expended for a counterterrorism activity of a similar or higher priority if the head of the intelligence agency--

`(1) determines that the availability of such funds for such counterterrorism activity is necessary to respond to altered or unanticipated needs; and

`(2) notifies the appropriate congressional committees of the intent to such funds available for such counterterrorism activity.'.

(d) BUDGETING FOR COUNTERTERRORISM ACTIVITIES- Title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.) is amended by inserting after section 506 the following new section:

`BUDGETING AND FUNDING OF COUNTERTERRORISM ACTIVITIES

`SEC. 506A. (a) BUDGETING- In requesting funds for counterterrorism activities under the National Foreign Intelligence Program for a fiscal year, the President shall take into account the requirements and priorities on counterterrorism for that fiscal year as specified in the national strategy on combatting terrorism.

`(b) FUNDING- In allocating funds for counterterrorism activities under the National Foreign Intelligence Program for a fiscal year, the Director of National Intelligence shall take into account the requirements and priorities on counterterrorism for that fiscal year as specified in the national strategy on combatting terrorism.

`(c) PRACTICES AND PROCEDURES- The Director shall take appropriate actions to ensure that the budgeting and funding practices and procedures of the intelligence community take into account the requirements and priorities on counterterrorism as specified in the national strategy on combatting terrorism.

`(d) NATIONAL STRATEGY ON COMBATTING TERRORISM DEFINED- In this section, the term `national strategy on combatting terrorism' means the most current national strategy on combatting terrorism under section 108A.'.

(e) CLERICAL AMENDMENT- The table of contents for that Act is amended by striking the item relating to section 506 and inserting the following new items:

`506. Specificity of National Foreign Intelligence Program budget amounts.

`506A. Budgeting and funding of counterterrorism activities.'.

SEC. 12. REPORT ON REVISIONS TO BILATERAL AND MULTILATERAL AGREEMENTS TO STRENGTHEN COUNTERTERRORISM EFFORTS.

Not later than 90 days after the date of the enactment of this Act, the Secretary of State shall, in consultation with the Attorney General, submit to the President and Congress a report on the extent to which United States counterterrorism efforts could be strengthened by revising extradition and mutual assistance treaties and other bilateral and multilateral agreements, including by revising such agreements to include as extraditable offenses visa and immigration fraud and other offenses the enforcement of which is critical to efforts to combat and prevent terrorism.

SEC. 13. STUDY AND RECOMMENDATIONS ON IMPROVEMENT OF CONGRESSIONAL OVERSIGHT OF THE INTELLIGENCE COMMUNITY.

(a) STUDY BY NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED STATES- Section 604 of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306; 116 Stat. 2409; 6 U.S.C. 101 note) is amended--

(1) in subsection (b), by inserting `under subsection (a)' after `the intelligence community'; and

(2) by adding at the end the following new subsection:

`(c) STUDY ON IMPROVEMENT OF CONGRESSIONAL OVERSIGHT OF INTELLIGENCE COMMUNITY- (1) In addition to the other functions of the Commission under this section, the Commission shall conduct a study of means by which Congress may improve its oversight of the intelligence community and its activities.

`(2) In conducting the study, the Commission shall consider the following:

`(A) The advisability of modifications in the budget process for funding the intelligence community in order to improve that process.

`(B) The advisability of modifications in the rules regarding membership on the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives in order to improve the oversight of the intelligence community by such committees.

`(C) Whether or not the oversight responsibility of Congress for the intelligence community should be

vested in a joint committee of the Senate and House of Representatives rather than a separate committee in each house of Congress.
`(D) Whether or not decisions of the intelligence community on the classification of information impede the discharge of the oversight responsibility of Congress for the intelligence community, and, if so, the advisability of modifications to the procedures on the classification of information in order to eliminate or reduce such impediments.

`(E) Mechanisms by which Congress may discharge the oversight responsibility of Congress for the intelligence community in a manner which facilitates the adaptations of the intelligence community to changes in circumstances, including changes in intelligence priorities, and to changes in the requirements of policymakers.

`(F) Any other matters on the oversight responsibility of Congress for the intelligence community that the Commission considers appropriate.

`(3) In this subsection, the term `intelligence community' has the meaning given that term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401(a)(4)).'.

(b) REPORT AND RECOMMENDATIONS- Section 610(b) of that Act is amended--

(1) by inserting `(1)' before `Not later than'; and

(2) by adding at the end the following paragraph:

`(2) The final report shall also include the findings of the Commission as a result of the study under section 604(c) and any recommendations that the Commission considers appropriate in light of such findings.'.

SEC. 14. TREATMENT AND CLASSIFICATION OF INTELLIGENCE INFORMATION.

(a) REVIEW OF TREATMENT OF INTELLIGENCE INFORMATION- The President shall review the policies and procedures that govern the classification and availability of intelligence information (including Executive Orders on such matters) in order to determine the advisability of modifying or reforming such policies and procedures to--

(1) expand access to relevant intelligence information, including making such information available, as appropriate, to--

(A) Federal agencies outside the intelligence community;

(B) State and local authorities, which are instrumental in the fight against terrorism; and

(C) the American public; and

(2) ensure that policies and procedures designed to protect against the unauthorized disclosure of classified intelligence information are well understood, fully implemented, and vigorously enforced.

(b) REPORT ON DESIGNATION OF INTELLIGENCE INFORMATION- Not later than 180 days after the date of the enactment of this Act, the Director of National Intelligence shall, in consultation with the Secretary of Defense, the Secretary of State, the Secretary of Homeland Security, and the Attorney General, submit to congressional intelligence committees a report that includes proposals for--

(1) reforming the processes and structures that govern the designation of sensitive and classified intelligence information; and

(2) protecting such processes from misuse and abuse.

(c) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED- In this section, the term `congressional intelligence committees' means--

(1) the Select Committee on Intelligence of the Senate; and

(2) the Permanent Select Committee on Intelligence of the House of Representatives.

SEC. 15. ENHANCEMENT OF ACCOUNTABILITY OF THE INTELLIGENCE COMMUNITY FOR THE PERFORMANCE OF INTELLIGENCE ACTIVITIES.

(a) IN GENERAL- The Director of National Intelligence and the heads of the other elements of the intelligence community shall separately and jointly take appropriate actions to ensure the implementation throughout the intelligence community of mechanisms to provide, promote, and enhance the accountability of the elements of the intelligence community for the performance of the intelligence and intelligence-related activities of the Federal Government.

(b) PARTICULAR MECHANISMS- The mechanisms to be implemented under subsection (a) shall include the following:

(1) Mechanisms to identify poor performance and to affix responsibility for such performance.

(2) Mechanisms to identify outstanding performance and to recognize and reward such performance.

(c) REPORT ON MECHANISMS- Not later than 180 days after the date of the enactment of this Act, the Director of National Intelligence shall submit to the congressional intelligence committees a report on the mechanisms implemented, and proposed to be implemented, under subsection (a), including the actions taken, and proposed to be taken, to implement such mechanisms throughout the intelligence community.

(d) RESPONSE TO REVIEWS OF INTELLIGENCE ACTIVITIES RELATING TO SEPTEMBER, 11, 2001, TERRORIST ATTACKS- (1) The Inspector General of each covered agency shall--

(A) review the findings and records of--

(i) the Joint Inquiry of the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives regarding the terrorist attacks of September 11, 2001; and

(ii) the National Commission on Terrorist Attacks Upon the United States established by section 601 of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306; 116 Stat. 2408; 6 U.S.C. 101 note); and

(B) conduct such supplemental investigations as such Inspector General considers appropriate in light of such findings and records in order to determine the following:

(i) Whether, and to what extent, particular personnel of such covered agency should be held accountable (whether by disciplinary action, promotion, recognition, or other reward, or other action) for an action, omission, or failure of duty with respect to the terrorist attacks of September 11, 2001.
(ii) Whether, and to what extent, particular personnel of such covered agency have been, or should be, held accountable for such action, omission, or failure of duty.

(2) The Inspector General of each covered agency shall submit to the head of such covered agency a report on the activities undertaken by such Inspector General under paragraph (1). Each report shall include recommendations for such personnel actions, including disciplinary actions, promotions, recognitions, or other rewards, or other personnel actions, as such Inspector General considers appropriate.

(3) The head of each covered agency shall take such personnel actions with respect to the personnel of such covered agency as the head of such covered agency considers appropriate in light of the report on such covered agency under paragraph (2).

(4) The head of each covered agency shall submit to the President and the congressional intelligence committees a report on the personnel actions taken under paragraph (3), including a justification for such personnel actions.

(e) DEFINITIONS- In this section:

(1) 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.

(2) The term `covered agency' means the following:

(A) The Department of Defense.

(B) The Department of Justice.

(C) The Department of State.

(D) The Central Intelligence Agency.

SEC. 16. ELIMINATION OR REDUCTION IN BARRIERS TO COLLECTION AND SHARING OF INTELLIGENCE FOR COUNTERTERRORISM PURPOSES.

(a) REPORT REQUIRED- Not later than 180 days after the date of the enactment of this Act, the Director of National Intelligence shall submit to the congressional intelligence committees a report that--

(1) describes current barriers to the collection and sharing of intelligence by and within the elements of the intelligence community for counterterrorism purposes;

(2) describes recent efforts within the intelligence community to eliminate or reduce such barriers; and

(3) sets forth such recommendations as the Director considers appropriate for additional actions to eliminate or reduce such barriers, including recommendations for legislative or administrative action.

(b) BARRIERS ARISING FROM PERCEPTIONS OF LAW AND POLICY- In considering current barriers to the collection and sharing of intelligence for purposes of subsection (a), the Director shall take into account barriers that arise from inaccurate perceptions among the personnel of the intelligence community of the restrictions on the collection and sharing of intelligence under law, Executive orders, and applicable guidelines.

(c) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED- In this section, the term `congressional intelligence committees' means--

(1) the Select Committee on Intelligence of the Senate; and

(2) the Permanent Select Committee on Intelligence of the House of Representatives.

SEC. 17. NATIONAL TERRORIST WATCHLIST CENTER.

(a) ESTABLISHMENT- The Director of National Intelligence shall establish the National Terrorist Watchlist Center.

(b) RESPONSIBILITIES- The responsibilities of the Center shall be as follows:

(1) To coordinate and integrate all terrorist watchlist systems.

(2) To ensure the timely and efficient assembly and dispersal to terrorist watchlist systems of individuals and groups identified for inclusion in terrorist watchlist systems.

(3) To promote awareness and use of the Center by appropriate elements of the Federal Government, State and local governments, and the private sector.

(c) RESOURCES- The Director shall provide the Center with such personnel and other resources as are required for the discharge of the responsibilities of the Center under subsection (b).

SEC. 18. ENHANCEMENT OF EFFORTS TO IDENTIFY SUPPORT OR INVOLVEMENT OF FOREIGN GOVERNMENTS IN TERRORIST ACTIVITIES.

(a) IN GENERAL- The Director of National Intelligence shall, in consultation with the Director of Central Intelligence and the Director of the Federal Bureau of Investigation, take appropriate actions to enhance the efforts of the intelligence community to identify the support or involvement of foreign governments in terrorist activities, including the analysis of the activities of foreign governments on a nation-by-nation basis rather than on a geographical or case-by-case basis.

(b) CONSIDERATION OF RESULTS OF JOINT INQUIRY- In taking actions under subsection (a), the Director of National Intelligence shall take into account applicable findings of the Joint Inquiry of the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives regarding the terrorist attacks of September 11, 2001.

(c) INFORMATION ON ACTIONS- The Director of National Intelligence shall keep the congressional intelligence committees fully informed of the actions taken under subsection (a), including the results of such actions.

(d) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED- In this section, the term `congressional intelligence committees' means--

(1) the Select Committee on Intelligence of the Senate; and

(2) the Permanent Select Committee on Intelligence of the House of Representatives.

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