To establish an independent nonpartisan review panel to assess how the Department of State can best fulfill its mission in the 21st century and meet the challenges of a rapidly changing world.

Summary: Department of State Review Act - Requires establishment of a nonpartisan independent Department of State Review Panel, which shall report to Congress on its review of the following matters concerning Department of State organization and operations: (1) current Department structures and possible reorganization; (2) changes to ensure effective diplomacy and implementation of U.S. foreign policy; (3) challenges through the year 2020 and beyond; (4) efficient handling of future risks; (5) planning assumptions; (6) positioning necessary for negotiation and conflict deterrence; (7) information infrastructure and technology; (8) the process of developing scenarios; and (9) future personnel policies.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of State Review Act''.

SEC. 2. ESTABLISHMENT OF DEPARTMENT OF STATE REVIEW PANEL.

    (a) Findings.--The Congress makes the following findings:
            (1) The Department of State, established in 1789, is 
        responsible for representing the worldwide interests of the 
        United States and its citizens and for advancing the policies 
        of the United States.
            (2) The Department operates 257 posts in more than 180 
        countries throughout the world, has approximately 21,500 full-
        time personnel, and has a budget of approximately 
        $8,000,000,000.
            (3) There have been dramatic changes in the world in which 
        the Department must function, including changes in technology, 
        changes in religious, ethnic, and regional conflicts, and 
        changes in economic, political, and military relationships. 
        Moreover, the world has witnessed the spread of weapons of mass 
        destruction and the spread of terrorism. Yet, there has been 
        little change in the organization and structure of the 
        Department or its posts throughout the world.
            (4) The Department and all United States diplomatic efforts 
        should be the subject of a comprehensive review by an 
        independent panel to assess how the Department can best fulfill 
        its mission in the 21st century and meet the challenges of a 
        rapidly changing world.
    (b) Establishment.--Not later than September 1, 2004, there shall 
be established a nonpartisan independent panel to be known as the 
Department of State Review Panel (in this section referred to as the 
``Panel''). The Panel shall have the duties set forth in this section.
    (c) Membership.--
            (1) Composition and qualifications.--The Panel shall be 
        composed of ten members who are individuals in the private 
        sector who are recognized experts in matters relating to 
        foreign affairs and the national security of the United States.
            (2) Appointment.--Members of the Panel shall be appointed 
        as follows:
                    (A) Three members appointed by the Speaker of the 
                House of Representatives.
                    (B) Three members appointed by the Majority Leader 
                of the Senate.
                    (C) Two members appointed by the Minority Leader of 
                the House of Representatives.
                    (D) Two members appointed by the Minority Leader of 
                the Senate.
            (3) Chairperson.--The Panel shall have a chairperson who 
        shall be selected by the members of the panel from among the 
        members.
    (d) Report.--Not later than 12 months after the appointment of the 
last member to the Panel, the Panel shall prepare and submit to the 
Congress a comprehensive report. The report shall include the 
following:
            (1) A review of current structures of the Department of 
        State and related agencies, including the organization and 
        operation of the embassies and consulates of the United States 
        abroad, to determine how best to efficiently and effectively--
                    (A) represent the interests of the United States 
                throughout the world;
                    (B) advance the policies of the United States;
                    (C) cooperate and integrate with other government 
                agencies and departments, including the Department of 
                Defense, the Department of Homeland Security, the 
                Department of the Treasury, the Department of Commerce, 
                the Office of the United States Trade Representative, 
                the Agency for International Development, the Drug 
                Enforcement Agency, and the intelligence agencies of 
                the United States; and
                    (D) meet the anticipated roles and missions of such 
                entities in the future.
            (2) Recommendations on any structural reorganization at the 
        Department of State and United States embassies and consulates, 
        including the following:
                    (A) Whether any geographical desks should be added, 
                combined, or eliminated, including an examination of 
                whether an ``American Affairs'' desk should be 
                established within the Office of the Under Secretary 
                for Political Affairs.
                    (B) Whether any of the positions of Under or 
                Assistant Secretary of State should be combined or 
                eliminated, or any additional positions of Under or 
                Assistant Secretary of State should be created, 
                including an examination of whether a senior level 
                position should be established to analyze and assess 
                future challenges for the Department, and if needed, 
                whether the position should be an Under or Assistant 
                Secretary of State.
                    (C) Whether a military attache should be stationed 
                at each embassy and whether a member of any other 
                Federal agency should be stationed at all or specific 
                embassies worldwide.
            (3) Suggestions for changes in organization and process to 
        ensure that the efforts of the United States to communicate 
        effectively with other governments and engage in public 
        diplomacy are successful.
            (4) Suggestions for changes in structures to better 
        formulate and implement the foreign policy of the United 
        States.
            (5) An independent assessment of the challenges the 
        Department of State may face through the year 2020 and beyond.
            (6) A comprehensive review of how the Department of State, 
        the embassies and consulates of the United States, and 
        diplomatic and other personnel and delegations are organized to 
        handle efficiently future risks, including any recommended 
        structural or internal changes that may be necessary to meet 
        future challenges to the national interest of the United 
        States.
            (7) The planning assumptions used in the review conducted 
        by the Panel, including assumptions relating to cooperation, 
        communication with allies, levels of risk, real-time 
        situational awareness, and instantaneous communication.
            (8) An examination of the forward presence and pre-
        positioning necessary by the Department of State for 
        negotiation and conflict deterrence in response to anticipated 
        threats and conflicts.
            (9) An examination of the current information 
        infrastructure and technologies at the Department of State and 
        recommendations on how these technologies should be updated, 
        changed, or replaced for optimum utilization by the year 2008 
        and beyond.
            (10) An examination of ways the Department of State 
        develops scenarios that may require a Department response, and 
        recommendations for improving this process to incorporate 
        nontraditional threat planning scenarios and input from other 
        Federal agencies and nongovernmental organizations.
            (11) Recommendations regarding future personnel policies of 
        the Department of State, including the following:
                    (A) Whether an anticipated need exists for 
                additional personnel who possess certain language 
                skills, functional skills, and educational background.
                    (B) Whether the Department of State should examine 
                nontraditional recruitment and training efforts, 
                including policies related to lateral transfers of 
                personnel from other government agencies or the private 
                sector, to meet Department of State needs.
    (e) Information From Federal Agencies.--The Panel may secure 
directly from the Department of State and from any other Federal agency 
such information as the Panel considers necessary to carry out its 
duties under this section. The head of the agency concerned shall 
ensure that information requested by the Panel under this subsection is 
promptly provided.
    (f) Personnel Matters.--
            (1) Compensation of members.--Each member of the Panel 
        shall be compensated at a rate equal to the daily equivalent of 
        the annual rate of basic pay prescribed for level IV of the 
        Executive Schedule under section 5315 of title 5, United States 
        Code, for each day (including travel time) during which such 
        member is engaged in the performance of the duties of the 
        Panel.
            (2) Travel expenses.--The members of the Panel shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Panel.
            (3) Executive director and staff.--Without regard to the 
        civil service laws and regulations, the chairperson of the 
        Panel may appoint and terminate an executive director and a 
        staff of not more than four additional individuals, none of 
        whom may be current employees of the Department of State or 
        members of the Foreign Service, if the Panel determines that an 
        executive director and staff are necessary in order for the 
        Panel to perform its duties effectively. The employment of an 
        executive director shall be subject to confirmation by the 
        Panel.
            (4) Compensation of executive director.--The chairperson 
        may fix the compensation of the executive director without 
        regard to the provisions of chapter 51 and subchapter III of 
        chapter 53 of title 5, United States Code, relating to 
        classification of positions and General Schedule pay rates, 
        except that the rate of pay for the executive director may not 
        exceed the rate payable for level V of the Executive Schedule 
        under section 5316 of such title.
            (5) Detail of government employees.--Any Federal Government 
        employee may be detailed to the Panel without reimbursement, 
        and such detail shall be without interruption or loss of civil 
        or foreign service status or privilege. The Secretary shall 
        ensure that sufficient personnel are detailed to the Panel to 
        enable the Panel to carry out its duties effectively.
            (6) Travel conditions.--To the maximum extent practicable, 
        the members and employees of the Panel shall travel on 
        government aircraft, ships, vehicles, or other conveyances when 
        travel is necessary in the performance of a duty of the Panel, 
        except that no such aircraft, ship, vehicle, or other 
        conveyance may be scheduled primarily for the transportation of 
        any such member or employee when the cost of commercial 
        transportation is less expensive.
    (g) Administrative Provisions.--
            (1) Use of mail.--The Panel may use the United States mails 
        and obtain printing and binding services in the same manner and 
        under the same conditions as other departments and agencies of 
        the Federal Government.
            (2) Administrative and support services.--The Secretary of 
        State shall furnish the Panel any administrative and support 
        services requested by the Panel.
            (3) Gifts and donations.--The Panel may accept, use, and 
        dispose of gifts or donations of services or property.
            (4) Contractual authority.--The Panel may enter into such 
        contracts as necessary for technical support and analysis, 
        provided that the duration of such contracts does not exceed 
        120 days and that the total amount spent on all such contracts 
        does not exceed $500,000.
    (h) Payment of Panel Expenses.--The compensation, travel expenses, 
and per diem allowances of members and employees of the Panel shall be 
paid out of funds available to the Department of State for the payment 
of compensation, travel allowances, and per diem allowances, 
respectively, of civilian employees of the Department. The other 
expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    (i) Sunset Provision.--The Panel shall terminate six months after 
the submission of a final report to the Congress under subsection (d).