SECTION 1. ESTABLISHMENT OF STATE DEPARTMENT REVIEW PANEL.

    (a) Findings and Purpose.--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 Government.
            (2) The Department operates 249 posts in more than 180 
        countries throughout the world, has approximately 18,869 full-
        time staff, and spends a budget of approximately 
        $4,250,000,000.
            (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. 
        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 December 1, 1998, the Congress 
shall establish 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) The Panel shall be composed of 10 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) Members of the Panel shall be appointed as follows:
                    (A) 3 members appointed by the Speaker of the House 
                of Representatives.
                    (B) 3 members appointed by the Majority Leader of 
                the Senate.
                    (C) 2 members appointed by the Minority Leader of 
                the House of Representatives.
                    (D) 2 members appointed by the Minority Leader of 
                the Senate.
            (3) The Panel shall have a chairman who shall be selected 
        by the members of the panel from among the members.
    (d) Report.--Not later than 6 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 Commerce, and the Office of 
                the United States Trade Representative, the Agency for 
                International Development (AID), the United States 
                Information Agency (USIA), the Arms Control and 
                Disarmament Agency (ACDA), 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, but not limited to, 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 Under or Assistant 
                Secretaries of State should be combined, eliminated, or 
                created, including an examination of whether an Under 
                Secretary for ``Future Affairs'' needs to be 
                established to analyze and assess future challenges for 
                the Department.
                    (C) Whether a member of the Armed Forces should be 
                stationed at each embassy and whether a member of any 
                other department should be stationed at all or specific 
                embassies worldwide.
                    (D) Whether Members of the Foreign Service serving 
                in other Federal agencies should be merged into the 
                Department of State.
            (3) Suggestions for changes in organization and process to 
        ensure that future United States diplomatic efforts 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 Panel's review, 
        including, but not limited to, assumptions relating to 
        cooperation, communication with allies, levels of risk, real-
        time situational awareness, and instantaneous communication.
            (8) An examination of the Department of State's forward 
        presence and prepositioning necessary 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 need to be updated, 
        changed, or replaced for optimum utilization by the year 2005 
        and beyond.
            (10) The vulnerability of United States technology to 
        nontraditional threats, such as information warfare, and the 
        effect of this vulnerability on Department of State operations 
        and missions.
            (11) Future scenarios requiring a Department of State 
        response, including scenarios in response to nontraditional 
        threats.
    (e) Information From Federal Agencies.--The Panel may secure 
directly from the Department of State and from any other Federal 
department and agency such information as the Panel considers necessary 
to carry out its duties under this section. The head of the department 
or agency concerned shall ensure that information requested by the 
Panel under this subsection is promptly provided.
    (f) Personnel Matters.--
            (1) 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) 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)(A) The chairman of the Panel may, without regard to the 
        civil service laws and regulations, appoint and terminate an 
        executive director, and a staff of not more than 4 additional 
        individuals, 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.
            (B) The chairman 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.
            (4) Any Federal Government employee may be detailed to the 
        Panel without reimbursement, and such detail shall be without 
        interruption or loss of civil 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.
            (5) 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) 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) The Secretary of State shall furnish the Panel any 
        administrative and support services requested by the Panel.
            (3) The Panel may accept, use, and dispose of gifts or 
        donations of services or property.
    (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 6 months after the 
submission of a final report to the Congress under subsection (d).
Directs the Congress to establish a nonpartisan independent Department of State Review Panel, which shall report to the Congress: (1) a review of current structures of the Department of State, related agencies, and U.S. embassies and consulates abroad (especially their organization to handle future risks efficiently), including recommendations on any structural reorganization that may be necessary; (2) suggestions for changes in structures to better formulate and implement U.S. foreign policy; and (3) an analysis of the vulnerability of U.S. technology to nontraditional threats (such as information warfare) and the effect of it on Department of State operations and missions.
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.