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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                 H. R. 1

    To provide for the implementation of the recommendations of the 
    National Commission on Terrorist Attacks Upon the United States.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 2007

Mr. Thompson of Mississippi (for himself, Mr. Lantos, Mr. Skelton, Mrs. 
  Gillibrand, Mr. Ackerman, Mr. Allen, Mr. Altmire, Mr. Andrews, Mr. 
 Arcuri, Mr. Baca, Mr. Baird, Ms. Baldwin, Ms. Bean, Mr. Becerra, Ms. 
Berkley, Mr. Berman, Mr. Berry, Mr. Bishop of New York, Mr. Blumenauer, 
Ms. Bordallo, Mr. Boren, Mr. Boswell, Mr. Boucher, Ms. Boyda of Kansas, 
 Mr. Brady of Pennsylvania, Mr. Braley of Iowa, Mr. Butterfield, Mrs. 
Capps, Mr. Capuano, Mr. Cardoza, Mr. Carnahan, Mr. Carney, Ms. Castor, 
Mr. Chandler, Mrs. Christensen, Ms. Clarke, Mr. Clay, Mr. Cleaver, Mr. 
    Clyburn, Mr. Cohen, Mr. Conyers, Mr. Cooper, Mr. Costello, Mr. 
Courtney, Mr. Crowley, Mr. Cramer, Mr. Cuellar, Mr. Cummings, Mr. Davis 
   of Illinois, Mr. Davis of Alabama, Mrs. Davis of California, Mr. 
    DeFazio, Ms. DeGette, Mr. Delahunt, Ms. DeLauro, Mr. Dicks, Mr. 
   Doggett, Mr. Donnelly, Mr. Doyle, Mr. Ellison, Mr. Ellsworth, Mr. 
  Emanuel, Ms. Eshoo, Mr. Etheridge, Mr. Faleomavaega, Mr. Farr, Mr. 
 Fattah, Mr. Filner, Mr. Frank of Massachusetts, Ms. Giffords, Mr. Al 
Green of Texas, Mr. Gene Green of Texas, Mr. Grijalva, Mr. Hall of New 
 York, Mr. Hare, Ms. Harman, Mr. Hastings of Florida, Ms. Herseth, Mr. 
Higgins, Mr. Hill, Mr. Hinchey, Ms. Hirono, Mr. Hodes, Mr. Holden, Mr. 
  Holt, Mr. Honda, Ms. Hooley, Mr. Hoyer, Mr. Inslee, Mr. Israel, Mr. 
   Jackson of Illinois, Ms. Jackson-Lee of Texas, Ms. Eddie Bernice 
 Johnson of Texas, Mr. Johnson of Georgia, Mr. Kagen, Ms. Kaptur, Mr. 
Kildee, Mr. Kind, Mr. Klein of Florida, Mr. Kucinich, Mr. Lampson, Mr. 
Langevin, Mr. Larsen of Washington, Mr. Larson of Connecticut, Ms. Lee, 
   Mr. Levin, Mr. Lewis of Georgia, Mr. Loebsack, Ms. Zoe Lofgren of 
California, Mrs. Lowey, Mr. Lynch, Mr. Mahoney of Florida, Mrs. Maloney 
  of New York, Mr. Markey, Ms. Matsui, Ms. McCollum of Minnesota, Mr. 
 McDermott, Mr. McGovern, Mr. McIntyre, Mr. McNerney, Mr. McNulty, Mr. 
 Meehan, Mr. Meek of Florida, Mr. Michaud, Ms. Millender-McDonald, Mr. 
  George Miller of California, Mr. Mitchell, Mr. Moore of Kansas, Mr. 
Moran of Virginia, Mr. Murphy of Connecticut, Mr. Christopher Murphy of 
 Pennsylvania, Mr. Nadler, Mrs. Napolitano, Ms. Norton, Mr. Oberstar, 
Mr. Obey, Mr. Olver, Mr. Ortiz, Mr. Pallone, Mr. Pascrell, Mr. Pastor, 
 Mr. Payne, Mr. Perlmutter, Mr. Pomeroy, Mr. Price of North Carolina, 
    Mr. Rahall, Mr. Rangel, Mr. Reyes, Mr. Rodriguez, Mr. Ross, Mr. 
 Rothman, Ms. Roybal-Allard, Mr. Ruppersberger, Mr. Rush, Mr. Ryan of 
 Ohio, Mr. Salazar, Ms. Linda T. Sanchez of California, Mr. Sarbanes, 
    Ms. Schakowsky, Mr. Schiff, Mr. Scott of Georgia, Mr. Scott of 
 Virginia, Mr. Serrano, Mr. Sestak, Ms. Shea-Porter, Mr. Sherman, Mr. 
 Shuler, Mr. Sires, Ms. Slaughter, Mr. Smith of Washington, Ms. Solis, 
    Mr. Space, Mr. Spratt, Mr. Stark, Mr. Stupak, Ms. Sutton, Mrs. 
Tauscher, Mr. Thompson of California, Mr. Tierney, Mrs. Jones of Ohio, 
  Mr. Udall of Colorado, Mr. Udall of New Mexico, Mr. Van Hollen, Ms. 
 Velazquez, Mr. Walz of Minnesota, Ms. Wasserman Schultz, Ms. Waters, 
 Ms. Watson, Mr. Waxman, Mr. Weiner, Mr. Welch of Vermont, Mr. Wexler, 
Mr. Wilson of Ohio, Ms. Woolsey, Mr. Wu, Mr. Wynn, Mr. Yarmuth, and Mr. 
  Hinojosa) introduced the following bill; which was referred to the 
 Committee on Homeland Security, and in addition to the Committees on 
  Energy and Commerce, the Judiciary, Select Intelligence (Permanent 
Select), Foreign Affairs, Transportation and Infrastructure, Oversight 
     and Government Reform, and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
    To provide for the implementation of the recommendations of the 
    National Commission on Terrorist Attacks Upon the United States.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Implementing the 9/11 Commission 
Recommendations Act of 2007''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
       TITLE I--RISK-BASED ALLOCATION OF HOMELAND SECURITY GRANTS

Sec. 101. First responders homeland security funding.
TITLE II--ENSURING COMMUNICATIONS INTEROPERABILITY FOR FIRST RESPONDERS

Sec. 201. Improve Communications for Emergency Response Grant Program.
   TITLE III--STRENGTHENING USE OF A UNIFIED INCIDENT COMMAND DURING 
                              EMERGENCIES

Sec. 301. National exercise program design.
Sec. 302. National exercise program model exercises.
Sec. 303. Responsibilities of Regional Administrators of the Federal 
                            Emergency Management Agency.
               TITLE IV--STRENGTHENING AVIATION SECURITY

Sec. 401. Installation of in-line baggage screening equipment.
Sec. 402. Aviation security capital fund.
Sec. 403. Airport checkpoint screening explosive detection.
Sec. 404. Strengthening explosive detection at airport screening 
                            checkpoints.
Sec. 405. Extension of authorization of aviation security funding.
Sec. 406. Inspection of cargo carried aboard passenger aircraft.
Sec. 407. Appeal and redress process for passengers wrongly delayed or 
                            prohibited from boarding a flight.
Sec. 408. Transportation Security Administration personnel management.
Sec. 409. Strategic plan to test and implement advanced passenger 
                            prescreening system.
        TITLE V--STRENGTHENING THE SECURITY OF CARGO CONTAINERS

Sec. 501. Requirements relating to entry of containers into the United 
                            States.
      TITLE VI--STRENGTHENING EFFORTS TO PREVENT TERRORIST TRAVEL

    Subtitle A--Human Smuggling and Trafficking Center Improvements

Sec. 601. Strengthening the capabilities of the Human Smuggling and 
                            Trafficking Center.
  Subtitle B--International Collaboration to Prevent Terrorist Travel

Sec. 611. Report on international collaboration to increase border 
                            security, enhance global document security, 
                            and exchange terrorist information.
           Subtitle C--Biometric Border Entry and Exit System

Sec. 621. Submittal of plan on biometric entry and exit verification 
                            system implementation.
 TITLE VII--IMPROVING INTELLIGENCE AND INFORMATION SHARING WITH LOCAL 
                  LAW ENFORCEMENT AND FIRST RESPONDERS

 Subtitle A--Fusion and Law Enforcement Education and Teaming (FLEET) 
                             Grant Program

Sec. 701. Findings.
Sec. 702. FLEET Grant program.
         Subtitle B--Border Intelligence Fusion Center Program

Sec. 711. Findings.
Sec. 712. Establishment of Border Intelligence Fusion Center Program.
     Subtitle C--Homeland Security Information Sharing Enhancement

Sec. 721. Short title.
Sec. 722. Homeland Security Advisory System.
Sec. 723. Homeland security information sharing.
     Subtitle D--Homeland Security Information Sharing Partnerships

Sec. 731. Short title.
Sec. 732. State, Local, and Regional Information Fusion Center 
                            Initiative.
Sec. 733. Homeland Security Information Sharing Fellows Program.
   Subtitle E--Homeland Security Intelligence Offices Reorganization

Sec. 741. Departmental reorganization.
Sec. 742. Intelligence components of Department of Homeland Security.
Sec. 743. Office of Infrastructure Protection.
 TITLE VIII--PROTECTING PRIVACY AND CIVIL LIBERTIES WHILE EFFECTIVELY 
                           FIGHTING TERRORISM

        Subtitle A--Privacy and Civil Liberties Oversight Boards

Sec. 801. Short title.
Sec. 802. Findings.
Sec. 803. Making the Privacy and Civil Liberties Oversight Board 
                            independent.
Sec. 804. Requiring all members of the Privacy and Civil Liberties 
                            Oversight Board be confirmed by the Senate.
Sec. 805. Subpoena power for the Privacy and Civil Liberties Oversight 
                            Board.
Sec. 806. Reporting requirements.
         Subtitle B--Enhancement of Privacy Officer Authorities

Sec. 811. Short title.
Sec. 812. Authorities of the privacy officer of the Department of 
                            Homeland Security.
          TITLE IX--IMPROVING CRITICAL INFRASTRUCTURE SECURITY

Sec. 901. Vulnerability assessment and report on critical 
                            infrastructure information.
Sec. 902. National Asset Database and the National At-Risk Database.
   TITLE X--TRANSPORTATION SECURITY PLANNING AND INFORMATION SHARING

Sec. 1001. Strategic transportation security information sharing.
Sec. 1002. Transportation security strategic planning.
                 TITLE XI--PRIVATE SECTOR PREPAREDNESS

Sec. 1101. Participation of private sector organizations in emergency 
                            preparedness and response activities.
  TITLE XII--PREVENTING WEAPONS OF MASS DESTRUCTION PROLIFERATION AND 
                               TERRORISM

Sec. 1201. Findings.
Sec. 1202. Definitions.
 Subtitle A--Repeal and Modification of Limitations on Assistance for 
             Prevention of WMD Proliferation and Terrorism

Sec. 1211. Repeal and modification of limitations on assistance for 
                            prevention of weapons of mass destruction 
                            proliferation and terrorism.
             Subtitle B--Proliferation Security Initiative

Sec. 1221. Proliferation Security Initiative improvements and 
                            authorities.
Sec. 1222. Authority to provide assistance to cooperative countries.
  Subtitle C--Assistance to Accelerate Programs to Prevent Weapons of 
              Mass Destruction Proliferation and Terrorism

Sec. 1231. Findings; statement of policy.
Sec. 1232. Authorization of appropriations for the Department of 
                            Defense Cooperative Threat Reduction 
                            Program.
Sec. 1233. Authorization of appropriations for the Department of Energy 
                            programs to prevent weapons of mass 
                            destruction proliferation and terrorism.
Subtitle D--Office of the United States Coordinator for the Prevention 
       of Weapons of Mass Destruction Proliferation and Terrorism

Sec. 1241. Office of the United States Coordinator for the Prevention 
                            of Weapons of Mass Destruction 
                            Proliferation and Terrorism.
Sec. 1242. Request for corresponding Russian coordinator.
Subtitle E--Commission on the Prevention of Weapons of Mass Destruction 
                      Proliferation and Terrorism

Sec. 1251. Commission on the Prevention of Weapons of Mass Destruction 
                            Proliferation and Terrorism.
Sec. 1252. Purposes.
Sec. 1253. Composition.
Sec. 1254. Responsibilities.
Sec. 1255. Powers.
Sec. 1256. Nonapplicability of Federal Advisory Committee Act.
Sec. 1257. Report.
Sec. 1258. Termination.
         TITLE XIII--NUCLEAR BLACK MARKET COUNTER-TERRORISM ACT

Sec. 1301. Short title.
Sec. 1302. Definitions.
      Subtitle A--Sanctions for Transfers of Nuclear Enrichment, 
    Reprocessing, and Weapons Technology, Equipment, and Materials 
                Involving Foreign Persons and Terrorists

Sec. 1311. Authority to impose sanctions on foreign persons.
Sec. 1312. Presidential notification on activities of foreign persons.
   Subtitle B--Further Actions Against Corporations Associated With 
                       Sanctioned Foreign Persons

Sec. 1321. Findings.
Sec. 1322. Campaign by United States Government officials.
Sec. 1323. Coordination.
Sec. 1324. Report.
         Subtitle C--Rollback of Nuclear Proliferation Networks

Sec. 1331. Nonproliferation as a condition of United States assistance.
Sec. 1332. Report on identification of nuclear proliferation network 
                            host countries.
Sec. 1333. Suspension of arms sales licenses and deliveries to nuclear 
                            proliferation host countries.
        TITLE XIV--9/11 COMMISSION INTERNATIONAL IMPLEMENTATION

Sec. 1401. Short title; table of contents.
Subtitle A--Quality Educational Opportunities in Arab and Predominantly 
                           Muslim Countries.

Sec. 1411. Findings; Policy.
Sec. 1412. International Arab and Muslim Youth Opportunity Fund.
Sec. 1413. Annual report to Congress.
Sec. 1414. Extension of program to provide grants to American-sponsored 
                            schools in Arab and predominantly Muslim 
                            Countries to provide scholarships.
Subtitle B--Democracy and Development in Arab and Predominantly Muslim 
                               Countries

Sec. 1421. Promoting democracy and development in the Middle East, 
                            Central Asia, South Asia, and Southeast 
                            Asia.
Sec. 1422. Middle East Foundation.
          Subtitle C--Restoring United States Moral Leadership

Sec. 1431. Advancing United States interests through public diplomacy.
Sec. 1432. Expansion of United States scholarship, exchange, and 
                            library programs in Arab and predominantly 
                            Muslim countries.
Sec. 1433. United States policy toward detainees.
     Subtitle D--Strategy for the United States Relationship With 
                Afghanistan, Pakistan, and Saudi Arabia

Sec. 1441. Afghanistan.
Sec. 1442. Pakistan.
Sec. 1443. Saudi Arabia.

       TITLE I--RISK-BASED ALLOCATION OF HOMELAND SECURITY GRANTS

SEC. 101. FIRST RESPONDERS HOMELAND SECURITY FUNDING.

    (a) In General.--The Homeland Security Act of 2002 (Public Law 107-
296; 6 U.S.C. 361 et seq.) is amended--
            (1) in section 1(b) in the table of contents by striking 
        the items relating to the second title XVIII, as added by 
        section 501(b)(3) of Public Law 109-347, and inserting the 
        following:

             ``TITLE XIX--DOMESTIC NUCLEAR DETECTION OFFICE

``Sec. 1901. Domestic Nuclear Detection Office.
``Sec. 1902. Mission of Office.
``Sec. 1904. Testing authority.
``Sec. 1905. Relationship to other Department entities and Federal 
                            agencies.
``Sec. 1906. Contracting and grant making authorities.'';
            (2) by redesignating the second title XVIII, as added by 
        section 501(a) of Public Law 109-347, as title XIX;
            (3) in title XIX (as so redesignated)--
                    (A) by redesignating sections 1801 through 1806 as 
                sections 1901 through 1906, respectively;
                    (B) in section 1904(a) (6 U.S.C. 594(a)), as so 
                redesignated, by striking ``section 1802'' and 
                inserting ``section 1902''; and
                    (C) in section 1906 (6 U.S.C. 596), as so 
                redesignated, by striking ``section 1802(a)'' each 
                place it appears and inserting ``section 1902(a)'';
            (4) in section 1(b) in the table of contents by adding at 
        the end the following:

                ``TITLE XX--FUNDING FOR FIRST RESPONDERS

``Sec. 2001. Definitions.
``Sec. 2002. Faster and Smarter Funding for First Responders.
``Sec. 2003. Covered grant eligibility and criteria.
``Sec. 2004. Risk-based evaluation and prioritization.
``Sec. 2005. Use of funds and accountability requirements.'';
    and
            (5) by adding at the end the following:

                ``TITLE XX--FUNDING FOR FIRST RESPONDERS

``SEC. 2001. DEFINITIONS.

    ``In this title:
            ``(1) Covered grant.--The term `covered grant' means any 
        grant to which this title applies under section 2002.
            ``(2) Directly eligible tribe.--The term `directly eligible 
        tribe' means any Indian tribe or consortium of Indian tribes 
        that--
                    ``(A) meets the criteria for inclusion in the 
                qualified applicant pool for Self-Governance that are 
                set forth in section 402(c) of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                458bb(c));
                    ``(B) employs at least 10 full-time personnel in a 
                law enforcement or emergency response agency with the 
                capacity to respond to calls for law enforcement or 
                emergency services; and
                    ``(C)(i) is located on, or within 5 miles of, an 
                international border or waterway;
                    ``(ii) is located within 5 miles of a facility 
                designated as high-risk critical infrastructure by the 
                Secretary;
                    ``(iii) is located within or contiguous to one of 
                the 50 largest metropolitan statistical areas in the 
                United States; or
                    ``(iv) has more than 1,000 square miles of Indian 
                country, as that term is defined in section 1151 of 
                title 18, United States Code.
            ``(3) Elevations in the threat alert level.--The term 
        `elevations in the threat alert level' means any designation 
        (including those that are less than national in scope) that 
        raises the homeland security threat level to either the highest 
        or second highest threat level under the Homeland Security 
        Advisory System referred to in section 201(d)(7).
            ``(4) First responder.--The term `first responder' shall 
        have the same meaning as the term `emergency response 
        provider'.
            ``(5) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaskan Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), that is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
            ``(6) Region.--The term `region' means--
                    ``(A) any geographic area consisting of all or 
                parts of 2 or more contiguous States that have a 
                combined population of at least 1,650,000 or have an 
                area of not less than 20,000 square miles, and that, 
                for purposes of an application for a covered grant, is 
                represented by 1 or more governments or governmental 
                agencies within such geographic area, and that is 
                established by law or by agreement of 2 or more such 
                governments or governmental agencies in a mutual aid 
                agreement; or
                    ``(B) any other combination of contiguous local 
                government units (including such a combination 
                established by law or agreement of two or more 
                governments or governmental agencies in a mutual aid 
                agreement) that is formally certified by the Secretary 
                as a region for purposes of this Act with the consent 
                of--
                            ``(i) the State or States in which they are 
                        located, including a multi-State entity 
                        established by a compact between two or more 
                        States; and
                            ``(ii) the incorporated municipalities, 
                        counties, and parishes that they encompass.
            ``(7) Terrorism preparedness.--The term `terrorism 
        preparedness' means any activity designed to improve the 
        ability to prevent, prepare for, respond to, mitigate against, 
        or recover from threatened or actual terrorist attacks.
            ``(8) Capabilities.--The term `capabilities' shall have the 
        same meaning that term has under title VIII.

``SEC. 2002. FASTER AND SMARTER FUNDING FOR FIRST RESPONDERS.

    ``(a) Covered Grants.--This title applies to grants provided by the 
Department to States, urban areas, regions, or directly eligible tribes 
for the primary purpose of improving the ability of first responders to 
prevent, prepare for, respond to, mitigate against, or recover from 
threatened or actual terrorist attacks, especially those involving 
weapons of mass destruction, administered under the following:
            ``(1) State homeland security grant program.--The State 
        Homeland Security Grant Program of the Department, or any 
        successor to such grant program.
            ``(2) Urban area security initiative.--The Urban Area 
        Security Initiative of the Department, or any successor to such 
        grant program.
            ``(3) Law enforcement terrorism prevention program.--The 
        Law Enforcement Terrorism Prevention Program of the Department, 
        or any successor to such grant program.
    ``(b) Excluded Programs.--This title does not apply to or otherwise 
affect the following Federal grant programs or any grant under such a 
program:
            ``(1) Nondepartment programs.--Any Federal grant program 
        that is not administered by the Department.
            ``(2) Fire grant programs.--The fire grant programs 
        authorized by sections 33 and 34 of the Federal Fire Prevention 
        and Control Act of 1974 (15 U.S.C. 2229, 2229a).
            ``(3) Emergency management planning and assistance account 
        grants.--The Emergency Management Performance Grant program and 
        the Urban Search and Rescue Grants program authorized by title 
        VI of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5195 et seq.); the Departments of 
        Veterans Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2000 (113 Stat. 1047 
        et seq.); and the Earthquake Hazards Reduction Act of 1977 (42 
        U.S.C. 7701 et seq.).

``SEC. 2003. COVERED GRANT ELIGIBILITY AND CRITERIA.

    ``(a) Grant Eligibility.--
            ``(1) State, region, or directly eligible tribe.--Any 
        State, region, or directly eligible tribe shall be eligible to 
        apply for a covered grant under the programs referred to in 
        paragraphs (1) and (3) of section 1802(a).
            ``(2) High-threat urban areas.--Any urban area that is 
        determined by the Secretary to be a high-threat urban areas 
        shall be eligible to apply for a covered grant referred to in 
        paragraph (2) of section 1802(a).
    ``(b) Grant Criteria.--The Secretary shall award covered grants to 
assist States and local governments in achieving, maintaining, and 
enhancing the capabilities for terrorism preparedness established by 
the Secretary.
    ``(c) Submission of State Preparedness Report.--
            ``(1) Submission required.--The Secretary shall require 
        that any State applying to the Secretary for a covered grant 
        must submit State Preparedness Report specified in section 
        652(c) of the Department of Homeland Security Appropriations 
        Act, 2007 (Public Law 109-295).
            ``(2) Consultation.--The State report submitted under 
        paragraph (1) shall be developed in consultation with and 
        subject to appropriate comment by local governments and first 
        responders within the State.
    ``(d) Consistency With State Plans.--
            ``(1) In general.--The Secretary shall ensure that each 
        covered grant is used to supplement and support, in a 
        consistent and coordinated manner, the applicable State 
        homeland security report or plan.
            ``(2) Approval of plan by secretary.--The Secretary may not 
        award any covered grant to a State unless the Secretary has 
        approved the applicable State homeland security plan.
            ``(3) Revisions.--A State may revise the applicable State 
        homeland security plan approved by the Secretary under this 
        subsection, subject to approval of the revision by the 
        Secretary.
    ``(e) Application for Grant.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, any State, urban area, region, or directly eligible 
        tribe may apply for a covered grant by submitting to the 
        Secretary an application at such time, in such manner, and 
        containing such information as is required under this 
        subsection, or as the Secretary may reasonably require.
            ``(2) Deadlines for applications and awards.--All 
        applications for covered grants must be submitted at such time 
        as the Secretary may reasonably require for the fiscal year for 
        which they are submitted. The Secretary shall award covered 
        grants pursuant to all approved applications for such fiscal 
        year as soon as practicable, but not later than March 1 of such 
        year.
            ``(3) Availability of funds.--All funds awarded by the 
        Secretary under covered grants in a fiscal year shall be 
        available for obligation through the end of the subsequent 
        fiscal year.
            ``(4) Minimum contents of application.--The Secretary shall 
        require that each applicant include in its application, at a 
        minimum--
                    ``(A) the purpose for which the applicant seeks 
                covered grant funds and the reasons why the applicant 
                needs the covered grant to meet the capabilities for 
                terrorism preparedness within the State, urban area, 
                region, or directly eligible tribe to which the 
                application pertains;
                    ``(B) a description of how, by reference to the 
                applicable State homeland security plan or plans under 
                subsection (c), the allocation of grant funding 
                proposed in the application, including, where 
                applicable, the amount not passed through under section 
                2005(g)(1), would assist in fulfilling the capabilities 
                for terrorism preparedness specified in such plan or 
                plans;
                    ``(C) a statement of whether a mutual aid agreement 
                applies to the use of all or any portion of the covered 
                grant funds;
                    ``(D) if the applicant is a State, a description of 
                how the State plans to allocate the covered grant funds 
                to local governments and Indian tribes;
                    ``(E) if the applicant is a region--
                            ``(i) a precise geographical description of 
                        the region and a specification of all 
                        participating and nonparticipating local 
                        governments within the geographical area 
                        comprising that region;
                            ``(ii) a specification of what governmental 
                        entity within the region will administer the 
                        expenditure of funds under the covered grant; 
                        and
                            ``(iii) a designation of a specific 
                        individual to serve as regional liaison;
                    ``(F) a capital budget showing how the applicant 
                intends to allocate and expend the covered grant funds;
                    ``(G) if the applicant is a directly eligible 
                tribe, a designation of a specific individual to serve 
                as the tribal liaison; and
                    ``(H) a statement of how the applicant intends to 
                meet the matching requirement, if any, that applies 
                under section 2005(g)(2).
            ``(5) Regional applications.--
                    ``(A) Relationship to state applications.--A 
                regional application--
                            ``(i) shall be coordinated with an 
                        application submitted by the State or States of 
                        which such region is a part;
                            ``(ii) shall supplement and avoid 
                        duplication with such State application; and
                            ``(iii) shall address the unique regional 
                        aspects of such region's terrorism preparedness 
                        needs beyond those provided for in the 
                        application of such State or States.
                    ``(B) State review and submission.--To ensure the 
                consistency required under subsection (d) and the 
                coordination required under subparagraph (A) of this 
                paragraph, an applicant that is a region must submit 
                its application to each State of which any part is 
                included in the region for review and concurrence prior 
                to the submission of such application to the Secretary. 
                The regional application shall be transmitted to the 
                Secretary through each such State within 30 days of its 
                receipt, unless the Governor of such a State notifies 
                the Secretary, in writing, that such regional 
                application is inconsistent with the State's homeland 
                security plan and provides an explanation of the 
                reasons therefor.
                    ``(C) Distribution of regional awards.--If the 
                Secretary approves a regional application, then the 
                Secretary shall distribute a regional award to the 
                State or States submitting the applicable regional 
                application under subparagraph (B), and each such State 
                shall, not later than the end of the 45-day period 
                beginning on the date after receiving a regional award, 
                pass through to the region all covered grant funds or 
                resources purchased with such funds, except those funds 
                necessary for the State to carry out its 
                responsibilities with respect to such regional 
                application: Provided, That in no such case shall the 
                State or States pass through to the region less than 80 
                percent of the regional award.
                    ``(D) Certifications regarding distribution of 
                grant funds to regions.--Any State that receives a 
                regional award under subparagraph (C) shall certify to 
                the Secretary, by not later than 30 days after the 
                expiration of the period described in subparagraph (C) 
                with respect to the grant, that the State has made 
                available to the region the required funds and 
                resources in accordance with subparagraph (C).
                    ``(E) Direct payments to regions.--If any State 
                fails to pass through a regional award to a region as 
                required by subparagraph (C) within 45 days after 
                receiving such award and does not request or receive an 
                extension of such period under section 2006(h)(2), the 
                region may petition the Secretary to receive directly 
                the portion of the regional award that is required to 
                be passed through to such region under subparagraph 
                (C).
                    ``(F) Regional liaisons.--A regional liaison 
                designated under paragraph (4)(E)(iii) shall--
                            ``(i) coordinate with Federal, State, 
                        local, regional, and private officials within 
                        the region concerning terrorism preparedness;
                            ``(ii) develop a process for receiving 
                        input from Federal, State, local, regional, and 
                        private sector officials within the region to 
                        assist in the development of the regional 
                        application and to improve the region's access 
                        to covered grants; and
                            ``(iii) administer, in consultation with 
                        State, local, regional, and private officials 
                        within the region, covered grants awarded to 
                        the region.
            ``(6) Tribal applications.--
                    ``(A) Submission to the state or states.--To ensure 
                the consistency required under subsection (d), an 
                applicant that is a directly eligible tribe must submit 
                its application to each State within the boundaries of 
                which any part of such tribe is located for direct 
                submission to the Department along with the application 
                of such State or States.
                    ``(B) Opportunity for state comment.--Before 
                awarding any covered grant to a directly eligible 
                tribe, the Secretary shall provide an opportunity to 
                each State within the boundaries of which any part of 
                such tribe is located to comment to the Secretary on 
                the consistency of the tribe's application with the 
                State's homeland security plan. Any such comments shall 
                be submitted to the Secretary concurrently with the 
                submission of the State and tribal applications.
                    ``(C) Final authority.--The Secretary shall have 
                final authority to determine the consistency of any 
                application of a directly eligible tribe with the 
                applicable State homeland security plan or plans, and 
                to approve any application of such tribe. The Secretary 
                shall notify each State within the boundaries of which 
                any part of such tribe is located of the approval of an 
                application by such tribe.
                    ``(D) Tribal liaison.--A tribal liaison designated 
                under paragraph (4)(G) shall--
                            ``(i) coordinate with Federal, State, 
                        local, regional, and private officials 
                        concerning terrorism preparedness;
                            ``(ii) develop a process for receiving 
                        input from Federal, State, local, regional, and 
                        private sector officials to assist in the 
                        development of the application of such tribe 
                        and to improve the tribe's access to covered 
                        grants; and
                            ``(iii) administer, in consultation with 
                        State, local, regional, and private officials, 
                        covered grants awarded to such tribe.
                    ``(E) Limitation on the number of direct grants.--
                The Secretary may make covered grants directly to not 
                more than 20 directly eligible tribes per fiscal year.
                    ``(F) Tribes not receiving direct grants.--An 
                Indian tribe that does not receive a grant directly 
                under this section is eligible to receive funds under a 
                covered grant from the State or States within the 
                boundaries of which any part of such tribe is located, 
                consistent with the homeland security plan of the State 
                as described in subsection (c). If a State fails to 
                comply with section 2006(g)(1), the tribe may request 
                payment under section 2006(h)(3) in the same manner as 
                a local government.
            ``(7) Equipment standards.--If an applicant for a covered 
        grant proposes to upgrade or purchase, with assistance provided 
        under the grant, new equipment or systems that do not meet or 
        exceed any applicable national voluntary consensus standards 
        established by the Secretary, the applicant shall include in 
        the application an explanation of why such equipment or systems 
        will serve the needs of the applicant better than equipment or 
        systems that meet or exceed such standards.

``SEC. 2004. RISK-BASED EVALUATION AND PRIORITIZATION.

    ``(a) Prioritization of Grant Applications.--
            ``(1) Factors to be considered.--The Secretary shall 
        evaluate and annually prioritize all pending applications for 
        covered grants based upon the degree to which they would, by 
        achieving, maintaining, or enhancing the capabilities of the 
        applicants on a nationwide basis, lessen the threat to, 
        vulnerability of, and consequences for persons (including 
        transient commuting and tourist populations) and critical 
        infrastructure. Such evaluation and prioritization shall be 
        based upon the most current risk assessment available by the 
        Office of Intelligence Analysis and the Office of 
        Infrastructure Protection of the threats of terrorism against 
        the United States. In establishing criteria for evaluating and 
        prioritizing applications for covered grants, the Secretary 
        shall coordinate with the National Advisory Council established 
        under section 508, the Director of the Federal Emergency 
        Management Agency, the United States Fire Administrator, the 
        Chief Intelligence Officer of the Department, the Assistant 
        Secretary for Infrastructure Protection, and other Department 
        officials as determined by the Secretary.
            ``(2) Critical infrastructure sectors.--The Secretary 
        specifically shall consider threats of terrorism against the 
        following critical infrastructure sectors in all areas of the 
        United States, urban and rural:
                    ``(A) Agriculture and food.
                    ``(B) Banking and finance.
                    ``(C) Chemical industries.
                    ``(D) The defense industrial base.
                    ``(E) Emergency services.
                    ``(F) Energy.
                    ``(G) Government facilities.
                    ``(H) Postal and shipping.
                    ``(I) Public health and health care.
                    ``(J) Information technology.
                    ``(K) Telecommunications.
                    ``(L) Transportation systems.
                    ``(M) Water.
                    ``(N) Dams.
                    ``(O) Commercial facilities.
                    ``(P) National monuments and icons.
        The order in which the critical infrastructure sectors are 
        listed in this paragraph shall not be construed as an order of 
        priority for consideration of the importance of such sectors.
            ``(3) Types of threat.--The Secretary specifically shall 
        consider the following types of threat to the critical 
        infrastructure sectors described in paragraph (2), and to 
        populations in all areas of the United States, urban and rural:
                    ``(A) Biological threats.
                    ``(B) Nuclear threats.
                    ``(C) Radiological threats.
                    ``(D) Incendiary threats.
                    ``(E) Chemical threats.
                    ``(F) Explosives.
                    ``(G) Suicide bombers.
                    ``(H) Cyber threats.
                    ``(I) Any other threats based on proximity to 
                specific past acts of terrorism or the known activity 
                of any terrorist group.
        The order in which the types of threat are listed in this 
        paragraph shall not be construed as an order of priority for 
        consideration of the importance of such threats.
            ``(4) Consideration of additional factors.--The Secretary 
        shall take into account any other specific threat to a 
        population (including a transient commuting or tourist 
        population) or critical infrastructure sector that the Board 
        has determined to exist. In evaluating the threat to a 
        population or critical infrastructure sector, the Secretary 
        shall give greater weight to threats of terrorism based upon 
        their specificity and credibility, including any pattern of 
        repetition.
            ``(5) Minimum amounts.--After evaluating and prioritizing 
        grant applications under paragraph (1), the Department shall 
        ensure that, for each fiscal year--
                    ``(A) each of the States, other than the Virgin 
                Islands, American Samoa, Guam, and the Northern Mariana 
                Islands, that has an approved State homeland security 
                plan receives no less than 0.25 percent of the funds 
                available for covered grants for that fiscal year for 
                purposes of implementing its homeland security plan;
                    ``(B) each of the States, other than the Virgin 
                Islands, American Samoa, Guam, and the Northern Mariana 
                Islands, that has an approved State homeland security 
                plan and that meets one or both of the additional high-
                risk qualifying criteria under paragraph (6) receives 
                no less than 0.45 percent of the funds available for 
                covered grants for that fiscal year for purposes of 
                implementing its homeland security plan;
                    ``(C) the Virgin Islands, American Samoa, Guam, and 
                the Northern Mariana Islands each receives no less than 
                0.08 percent of the funds available for covered grants 
                for that fiscal year for purposes of implementing its 
                approved State plan; and
                    ``(D) directly eligible tribes collectively receive 
                no less than 0.08 percent of the funds available for 
                covered grants for such fiscal year for purposes of 
                addressing the needs identified in the applications of 
                such tribes, consistent with the homeland security plan 
                of each State within the boundaries of which any part 
                of any such tribe is located, except that this clause 
                shall not apply with respect to funds available for a 
                fiscal year if the Secretary receives less than 5 
                applications for such fiscal year from such tribes or 
                does not approve at least one such application.
            ``(6) Additional high-risk qualifying criteria.--For 
        purposes of paragraph (5)(B), additional high-risk qualifying 
        criteria consist of--
                    ``(A) having a significant international land 
                border; or
                    ``(B) adjoining a body of water within North 
                America through which an international boundary line 
                extends.
    ``(b) Effect of Regional Awards on State Minimum.--Any regional 
award, or portion thereof, provided to a State under section 
2003(e)(5)(C) shall not be considered in calculating the minimum State 
award under subsection (a)(5) of this section.
    ``(c) Relationship to Other Programs.--This section shall be 
carried out in consultation with the Secretary of Health and Human 
Services. Nothing in this section affects the scope of authority of the 
Secretary of Health and Human Services, including such authority under 
the Public Health Service Act.

``SEC. 2005. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

    ``(a) In General.--A covered grant may be used for--
            ``(1) purchasing or upgrading equipment, including computer 
        hardware and software, to enhance terrorism preparedness;
            ``(2) exercises to strengthen terrorism preparedness;
            ``(3) training for prevention (including detection) of, 
        preparedness for, response to, or recovery from attacks 
        involving weapons of mass destruction, including training in 
        the use of equipment and computer software;
            ``(4) developing or updating State homeland security plans, 
        risk assessments, mutual aid agreements, and emergency 
        management plans to enhance terrorism preparedness;
            ``(5) establishing or enhancing mechanisms for sharing 
        terrorism threat information;
            ``(6) systems architecture and engineering, program 
        planning and management, strategy formulation and strategic 
        planning, life-cycle systems design, product and technology 
        evaluation, and prototype development for terrorism 
        preparedness purposes;
            ``(7) additional personnel costs resulting from--
                    ``(A) elevations in the threat alert level of the 
                Homeland Security Advisory System by the Secretary, or 
                a similar elevation in threat alert level issued by a 
                State, region, or local government with the approval of 
                the Secretary;
                    ``(B) travel to and participation in exercises and 
                training in the use of equipment and on prevention 
                activities;
                    ``(C) the temporary replacement of personnel during 
                any period of travel to and participation in exercises 
                and training in the use of equipment and on prevention 
                activities; and
                    ``(D) the hiring of staff to serve as intelligence 
                analysts to strengthen information and intelligence 
                sharing capabilities;
            ``(8) the costs of equipment (including software) required 
        to receive, transmit, handle, and store classified information;
            ``(9) protecting critical infrastructure against potential 
        attack by the addition of barriers, fences, gates, and other 
        such devices that are constructed consistent with the 
        requirements of section 6(j)(9) of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5196(j)(9), except that the cost of such measures may not 
        exceed the greater of--
                    ``(A) $1,000,000 per project; or
                    ``(B) such greater amount as may be approved by the 
                Secretary, which may not exceed 10 percent of the total 
                amount of the covered grant;
            ``(10) the costs of commercially available interoperable 
        communications equipment (that, where applicable, is based on 
        national, voluntary consensus standards) that the Secretary, in 
        consultation with the Assistant Secretary for Emergency 
        Communications, deems best suited to facilitate 
        interoperability, coordination, and integration between and 
        among emergency communications systems, and that complies with 
        prevailing grant guidance of the Department for interoperable 
        communications;
            ``(11) educational curricula development for first 
        responders to ensure that they are prepared for terrorist 
        attacks;
            ``(12) training and exercises to assist public elementary 
        and secondary schools in developing and implementing programs 
        to instruct students regarding age-appropriate skills to 
        prevent, prepare for, respond to, mitigate against, or recover 
        from an act of terrorism;
            ``(13) paying of administrative expenses directly related 
        to administration of the grant, except that such expenses may 
        not exceed 3 percent of the amount of the grant;
            ``(14) Public safety answering points;
            ``(15) paying for the conduct of any activity permitted 
        under the Law Enforcement Terrorism Prevention Program, or any 
        such successor to such program; and
            ``(16) other appropriate activities as determined by the 
        Secretary.
    ``(b) Prohibited Uses.--Funds provided as a covered grant may not 
be used--
            ``(1) to supplant State or local funds;
            ``(2) to construct buildings or other physical facilities;
            ``(3) to acquire land; or
            ``(4) for any State or local government cost-sharing 
        contribution.
    ``(c) Intelligence Analysts.--An individual hired to serve as an 
intelligence analyst under subsection (a)(7)(D) must meet at least one 
of the following criteria:
            ``(1) The individual has successfully completed training 
        that meets the standards of the International Association of 
        Law Enforcement Intelligence Analysts to ensure baseline 
        proficiency in intelligence analysis and production.
            ``(2) The individual has previously served in a Federal 
        intelligence agency as an intelligence analyst for at least two 
        years.
    ``(d) Multiple-Purpose Funds.--Nothing in this section shall be 
construed to preclude State and local governments from using covered 
grant funds in a manner that also enhances first responder preparedness 
for emergencies and disasters unrelated to acts of terrorism, if such 
use assists such governments in achieving capabilities for terrorism 
preparedness established by the Secretary.
    ``(e) Reimbursement of Costs.--
            ``(1) Paid-on-call or volunteer reimbursement.--In addition 
        to the activities described in subsection (a), a covered grant 
        may be used to provide a reasonable stipend to paid-on-call or 
        volunteer first responders who are not otherwise compensated 
        for travel to or participation in training covered by this 
        section. Any such reimbursement shall not be considered 
        compensation for purposes of rendering such a first responder 
        an employee under the Fair Labor Standards Act of 1938 (29 
        U.S.C. 201 et seq.).
            ``(2) Performance of federal duty.--An applicant for a 
        covered grant may petition the Secretary for the reimbursement 
        of the cost of any activity relating to prevention (including 
        detection) of, preparedness for, response to, or recovery from 
        acts of terrorism that is a Federal duty and usually performed 
        by a Federal agency, and that is being performed by a State or 
        local government (or both) under agreement with a Federal 
        agency.
    ``(f) Assistance Requirement.--The Secretary may not require that 
equipment paid for, wholly or in part, with funds provided as a covered 
grant be made available for responding to emergencies in surrounding 
States, regions, and localities, unless the Secretary undertakes to pay 
the costs directly attributable to transporting and operating such 
equipment during such response.
    ``(g) Flexibility in Unspent Homeland Security Grant Funds.--Upon 
request by the recipient of a covered grant, the Secretary may 
authorize the grantee to transfer all or part of funds provided as the 
covered grant from uses specified in the grant agreement to other uses 
authorized under this section, if the Secretary determines that such 
transfer is in the interests of homeland security.
    ``(h) State, Regional, and Tribal Responsibilities.--
            ``(1) Pass-through.--The Secretary shall require a 
        recipient of a covered grant that is a State to obligate or 
        otherwise make available to local governments, first 
        responders, and other local groups, to the extent required 
        under the State homeland security plan or plans specified in 
        the application for the grant, not less than 80 percent of the 
        grant funds, resources purchased with the grant funds having a 
        value equal to at least 80 percent of the amount of the grant, 
        or a combination thereof, by not later than the end of the 45-
        day period beginning on the date the grant recipient receives 
        the grant funds.
            ``(2) Cost sharing.--
                    ``(A) In general.--The Federal share of the costs 
                of an activity carried out with a covered grant to a 
                State, region, or directly eligible tribe awarded after 
                the 2-year period beginning on the date of the 
                enactment of this section shall not exceed 75 percent.
                    ``(B) Interim rule.--The Federal share of the costs 
                of an activity carried out with a covered grant awarded 
                before the end of the 2-year period beginning on the 
                date of the enactment of this section shall be 100 
                percent.
                    ``(C) In-kind matching.--Each recipient of a 
                covered grant may meet the matching requirement under 
                subparagraph (A) by making in-kind contributions of 
                goods or services that are directly linked with the 
                purpose for which the grant is made, including, but not 
                limited to, any necessary personnel overtime, 
                contractor services, administrative costs, equipment 
                fuel and maintenance, and rental space.
            ``(3) Certifications regarding distribution of grant funds 
        to local governments.--Any State that receives a covered grant 
        shall certify to the Secretary, by not later than 30 days after 
        the expiration of the period described in paragraph (1) with 
        respect to the grant, that the State has made available for 
        expenditure by local governments, first responders, and other 
        local groups the required amount of grant funds pursuant to 
        paragraph (1).
            ``(4) Quarterly report on homeland security spending.--The 
        Federal share described in paragraph (2)(A) may be increased by 
        up to 2 percent for any State, region, or directly eligible 
        tribe that, not later than 30 days after the end of each fiscal 
        quarter, submits to the Secretary a report on that fiscal 
        quarter. Each such report must include, for each recipient of a 
        covered grant or a pass-through under paragraph (1)--
                    ``(A) the amount obligated to that recipient in 
                that quarter;
                    ``(B) the amount expended by that recipient in that 
                quarter; and
                    ``(C) a summary description of the items purchased 
                by such recipient with such amount.
            ``(5) Annual report on homeland security spending.--Each 
        recipient of a covered grant shall submit an annual report to 
        the Secretary not later than 60 days after the end of each 
        Federal fiscal year. Each recipient of a covered grant that is 
        a region must simultaneously submit its report to each State of 
        which any part is included in the region. Each recipient of a 
        covered grant that is a directly eligible tribe must 
        simultaneously submit its report to each State within the 
        boundaries of which any part of such tribe is located. Each 
        report must include the following:
                    ``(A) The amount, ultimate recipients, and dates of 
                receipt of all funds received under the grant during 
                the previous fiscal year.
                    ``(B) The amount and the dates of disbursements of 
                all such funds expended in compliance with paragraph 
                (1) or pursuant to mutual aid agreements or other 
                sharing arrangements that apply within the State, 
                region, or directly eligible tribe, as applicable, 
                during the previous fiscal year.
                    ``(C) How the funds were utilized by each ultimate 
                recipient or beneficiary during the preceding fiscal 
                year.
                    ``(D) The extent to which capabilities identified 
                in the applicable State homeland security plan or plans 
                were achieved, maintained, or enhanced as the result of 
                the expenditure of grant funds during the preceding 
                fiscal year.
                    ``(E) The extent to which capabilities identified 
                in the applicable State homeland security plan or plans 
                remain unmet.
            ``(6) Inclusion of restricted annexes.--A recipient of a 
        covered grant may submit to the Secretary an annex to the 
        annual report under paragraph (5) that is subject to 
        appropriate handling restrictions, if the recipient believes 
        that discussion in the report of unmet needs would reveal 
        sensitive but unclassified information.
    ``(i) Incentives to Efficient Administration of Homeland Security 
Grants.--
            ``(1) Penalties for delay in passing through local share.--
        If a recipient of a covered grant that is a State fails to pass 
        through to local governments, first responders, and other local 
        groups funds or resources required by subsection (g)(1) within 
        45 days after receiving funds under the grant, the Secretary 
        may--
                    ``(A) reduce grant payments to the grant recipient 
                from the portion of grant funds that is not required to 
                be passed through under subsection (g)(1);
                    ``(B) terminate payment of funds under the grant to 
                the recipient, and transfer the appropriate portion of 
                those funds directly to local first responders that 
                were intended to receive funding under that grant; or
                    ``(C) impose additional restrictions or burdens on 
                the recipient's use of funds under the grant, which may 
                include--
                            ``(i) prohibiting use of such funds to pay 
                        the grant recipient's grant-related overtime or 
                        other expenses;
                            ``(ii) requiring the grant recipient to 
                        distribute to local government beneficiaries 
                        all or a portion of grant funds that are not 
                        required to be passed through under subsection 
                        (g)(1); or
                            ``(iii) for each day that the grant 
                        recipient fails to pass through funds or 
                        resources in accordance with subsection (g)(1), 
                        reducing grant payments to the grant recipient 
                        from the portion of grant funds that is not 
                        required to be passed through under subsection 
                        (g)(1), except that the total amount of such 
                        reduction may not exceed 20 percent of the 
                        total amount of the grant.
            ``(2) Extension of period.--The Governor of a State may 
        request in writing that the Secretary extend the 45-day period 
        under section 2003(e)(5)(E) or paragraph (1) for an additional 
        15-day period. The Secretary may approve such a request, and 
        may extend such period for additional 15-day periods, if the 
        Secretary determines that the resulting delay in providing 
        grant funding to the local government entities that will 
        receive funding under the grant will not have a significant 
        detrimental impact on such entities' terrorism preparedness 
        efforts.
            ``(3) Provision of non-local share to local government.--
                    ``(A) In general.--The Secretary may upon request 
                by a local government pay to the local government a 
                portion of the amount of a covered grant awarded to a 
                State in which the local government is located, if--
                            ``(i) the local government will use the 
                        amount paid to expedite planned enhancements to 
                        its terrorism preparedness as described in any 
                        applicable State homeland security plan or 
                        plans;
                            ``(ii) the State has failed to pass through 
                        funds or resources in accordance with 
                        subsection (g)(1); and
                            ``(iii) the local government complies with 
                        subparagraphs (B) and (C).
                    ``(B) Showing required.--To receive a payment under 
                this paragraph, a local government must demonstrate 
                that--
                            ``(i) it is identified explicitly as an 
                        ultimate recipient or intended beneficiary in 
                        the approved grant application;
                            ``(ii) it was intended by the grantee to 
                        receive a severable portion of the overall 
                        grant for a specific purpose that is identified 
                        in the grant application;
                            ``(iii) it petitioned the grantee for the 
                        funds or resources after expiration of the 
                        period within which the funds or resources were 
                        required to be passed through under subsection 
                        (g)(1); and
                            ``(iv) it did not receive the portion of 
                        the overall grant that was earmarked or 
                        designated for its use or benefit.
                    ``(C) Effect of payment.--Payment of grant funds to 
                a local government under this paragraph--
                            ``(i) shall not affect any payment to 
                        another local government under this paragraph; 
                        and
                            ``(ii) shall not prejudice consideration of 
                        a request for payment under this paragraph that 
                        is submitted by another local government.
                    ``(D) Deadline for action by secretary.--The 
                Secretary shall approve or disapprove each request for 
                payment under this paragraph by not later than 15 days 
                after the date the request is received by the 
                Department.
    ``(j) Reports to Congress.--The Secretary shall submit an annual 
report to Congress by January 31 of each year covering the preceding 
fiscal year--
            ``(1) describing in detail the amount of Federal funds 
        provided as covered grants that were directed to each State, 
        region, and directly eligible tribe in the preceding fiscal 
        year;
            ``(2) containing information on the use of such grant funds 
        by grantees; and
            ``(3) describing--
                    ``(A) the Nation's progress in achieving, 
                maintaining, and enhancing the capabilities established 
                by the Secretary as a result of the expenditure of 
                covered grant funds during the preceding fiscal year; 
                and
                    ``(B) an estimate of the amount of expenditures 
                required to attain across the United States the 
                essential capabilities established by the Secretary.''.

TITLE II--ENSURING COMMUNICATIONS INTEROPERABILITY FOR FIRST RESPONDERS

SEC. 201. IMPROVE COMMUNICATIONS FOR EMERGENCY RESPONSE GRANT PROGRAM.

    (a) Establishment.--Title V of the Homeland Security Act of 2002 (6 
U.S.C. 311 et seq.) is amended by adding at the end the following new 
section:

``SEC. 522. IMPROVE COMMUNICATIONS FOR EMERGENCY RESPONSE GRANT 
              PROGRAM.

    ``(a) Establishment.--The Secretary, acting through the Director of 
the Office of Grants and Training and in coordination with the Director 
for Emergency Communications, shall establish the Improve 
Communications for Emergency Response Grant Program to make grants to 
States and regions to carry out initiatives to improve interoperable 
emergency communications, including initiatives to achieve solutions to 
statewide, regional, national, and, where appropriate, international 
interoperability.
    ``(b) Use of Grant Funds.--A State or region receiving a grant 
under this section may use the grant for short-term or long-term goals 
for improving interoperable emergency communications, including 
interoperability within that State or region, and to assist with--
            ``(1) statewide or regional communications planning;
            ``(2) design and engineering for interoperable emergency 
        communications systems;
            ``(3) procurement and installation of interoperable 
        emergency communications equipment;
            ``(4) interoperable emergency communications exercises;
            ``(5) modeling and simulation exercises for operational 
        command and control functions;
            ``(6) technical assistance and training for interoperable 
        emergency communications; and
            ``(7) other activities determined by the Secretary to be 
        integral to interoperable emergency communications.
    ``(c) Region Defined.--For the purposes of this section, the term 
`region' means any combination of contiguous local government units, 
including such a combination established by law or mutual aid agreement 
between two or more local governments or governmental agencies.''.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Homeland Security for grants under 
section 522 of the Homeland Security Act of 2002, as added by 
subsection (a)--
            (1) such sums as may be necessary for the first fiscal year 
        that begins after the later of--
                    (A) the date on which the Secretary of Homeland 
                Security completes and submits to Congress the National 
                Emergency Communications Plan required under section 
                1802 of the Homeland Security Act of 2002 (6 U.S.C. 
                572);
                    (B) the date on which the Secretary of Homeland 
                Security completes and submits to Congress the first 
                baseline interoperability assessment required under 
                section 1803 of such Act (6 U.S.C. 573); or
                    (C) the date on which the Secretary of Homeland 
                Security, after consultation with the Director of 
                Emergency Communications, determines and notifies 
                Congress that substantial progress has been made 
                towards the development and promulgation of voluntary 
                consensus-based interoperable communications standards 
                pursuant to section 1801(c)(11) of such Act (6 U.S.C. 
                571(c)(11)); and
            (2) such sums as may be necessary for each subsequent 
        fiscal year.
    (c) Clerical Amendment.--The table of contents in section 1(b) of 
that Act is amended by inserting after the item relating to section 521 
the following:

``Sec. 522. Improve Communications for Emergency Response Grant 
                            Program.''.

   TITLE III--STRENGTHENING USE OF A UNIFIED INCIDENT COMMAND DURING 
                              EMERGENCIES

SEC. 301. NATIONAL EXERCISE PROGRAM DESIGN.

    Section 648(b)(2)(A) of the Department of Homeland Security 
Appropriations Act, 2007 (Public Law 109-295) is amended by striking 
clauses (iv) and (v) and inserting the following:
                            ``(iv) designed to provide for systematic 
                        evaluation of readiness and enhance operational 
                        understanding of the Incident Command System 
                        and relevant mutual aid agreements;
                            ``(v) designed to address the unique 
                        requirements of populations with special needs; 
                        and
                            ``(vi) designed to include the prompt 
                        development of after-action reports and plans 
                        for quickly incorporating lessons learned into 
                        future operations; and''.

SEC. 302. NATIONAL EXERCISE PROGRAM MODEL EXERCISES.

    Section 648(b)(2)(B) of the Department of Homeland Security 
Appropriations Act, 2007 (Public Law 109-295) is amended by striking so 
much as precedes clause (i) and inserting the following:
                    ``(B) shall include a selection of model exercises 
                that State, local, and tribal governments can readily 
                adapt for use, and shall provide assistance to State, 
                local, and tribal governments with the design, 
                implementation, and evaluation of exercises, whether a 
                model exercise program or an exercise designed locally, 
                that--''.

SEC. 303. RESPONSIBILITIES OF REGIONAL ADMINISTRATORS OF THE FEDERAL 
              EMERGENCY MANAGEMENT AGENCY.

    Section 507(c)(2) of the Homeland Security Act of 2002 (enacted by 
section 611 of the Department of Homeland Security Appropriations Act, 
2007 (Public Law 109-295)) is amended by striking ``and'' after the 
semicolon at the end of subparagraph (H), by redesignating subparagraph 
(I) as subparagraph (J), and by inserting after subparagraph (H) the 
following:
                    ``(I) assisting State, local, or tribal 
                governments, where appropriate, to pre-identify and 
                evaluate suitable sites where a multi-jurisdictional 
                unified command system can be quickly established if 
                the need for such a system arises; and''.

               TITLE IV--STRENGTHENING AVIATION SECURITY

SEC. 401. INSTALLATION OF IN-LINE BAGGAGE SCREENING EQUIPMENT.

    Not later than 30 days after the date of enactment of this Act, the 
Secretary for Homeland Security shall submit to the appropriate 
congressional committees the cost sharing study described in section 
4019(d) of the Intelligence Reform and Terrorism Prevention Act of 2004 
(118 Stat. 3722), together with the Secretary's analysis of the study, 
a list of provisions of the study the Secretary intends to implement, 
and a plan and schedule for implementation of such listed provisions.

SEC. 402. AVIATION SECURITY CAPITAL FUND.

    (a) In General.--Section 44923(h)(1) of title 49, United States 
Code, is amended in the second sentence by striking ``2007'' and 
inserting ``2011''.
    (b) Discretionary Grants.--Section 44923(h)(3) of such title is 
amended by striking ``for a fiscal year, $125,000,000'' and inserting 
``, $125,000,000 for each of fiscal years 2004, 2005, and 2006 and such 
sums as may be necessary for each of fiscal years 2007 through 2011''.

SEC. 403. AIRPORT CHECKPOINT SCREENING EXPLOSIVE DETECTION.

    Section 44940 of title 49, United States Code, is amended--
            (1) in subsection (d)(4) by inserting ``, other than 
        subsection (i),'' before ``except to''; and
            (2) by adding at the end the following:
    ``(i) Checkpoint Screening Security Fund.--
            ``(1) Establishment.--There is established in the 
        Department of Homeland Security a fund to be known as the 
        `Checkpoint Screening Security Fund'.
            ``(2) Deposits.--In fiscal year 2008, after amounts are 
        made available under section 44923(h), the next $250,000,000 
        derived from fees received under subsection (a)(1) shall be 
        available to be deposited in the Fund.
            ``(3) Fees.--The Secretary of Homeland Security shall 
        impose the fee authorized by subsection (a)(1) so as to collect 
        at least $250,000,000 in fiscal year 2008 for deposit into the 
        Fund.
            ``(4) Availability of amounts.--Amounts in the Fund shall 
        be available until expended for the research, development, 
        purchase, deployment, and installation of equipment to improve 
        the ability of security screening personnel at screening 
        checkpoints to detect explosives.''.

SEC. 404. STRENGTHENING EXPLOSIVE DETECTION AT AIRPORT SCREENING 
              CHECKPOINTS.

    Not later than 7 days after the date of enactment of this Act, the 
Assistant Secretary for Homeland Security (Transportation Security 
Administration) shall submit to the appropriate congressional 
committees the strategic plan described in the section amended by 
section 4013(a) of the Intelligence Reform and Terrorism Prevention Act 
of 2004 (118 Stat. 3719).

SEC. 405. EXTENSION OF AUTHORIZATION OF AVIATION SECURITY FUNDING.

    Section 48301(a) of title 49, United States Code, is amended by 
striking ``and 2006'' and inserting ``2006, 2007, 2008, 2009, 2010, and 
2011''.

SEC. 406. INSPECTION OF CARGO CARRIED ABOARD PASSENGER AIRCRAFT.

    (a) In General.--Section 44901 of title 49, United States Code, is 
amended--
            (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following:
    ``(g) Air Cargo on Passenger Aircraft.--
            ``(1) In general.--Not later than 3 years after the date of 
        enactment of the Implementing the 9/11 Commission 
        Recommendations Act of 2007, the Secretary of Homeland Security 
        shall establish a system to inspect 100 percent of cargo 
        transported on passenger aircraft operated by an air carrier or 
        foreign air carrier in air transportation or intrastate air 
        transportation to ensure the security of all such passenger 
        aircraft carrying cargo.
            ``(2) Minimum standards.--The system referred to in 
        paragraph (1) shall require, at a minimum, that equipment, 
        technology, procedures, and personnel are used to inspect cargo 
        carried on passenger aircraft to provide a level of security 
        equivalent to the level of security for the inspection of 
        passenger checked baggage as follows:
                    ``(A) 35 percent of such cargo is so inspected by 
                the end of fiscal year 2007.
                    ``(B) 65 percent of such cargo is so inspected by 
                the end of fiscal year 2008.
                    ``(C) 100 percent of such cargo is so inspected by 
                the end of fiscal year 2009.
            ``(3) Regulations.--
                    ``(A) Interim final rule.--The Secretary of 
                Homeland Security may issue an interim final rule as a 
                temporary regulation to implement this subsection 
                without regard to the provisions of chapter 5 of title 
                5.
                    ``(B) Final rule.--
                            ``(i) In general.--If the Secretary issues 
                        an interim final rule under subparagraph (A), 
                        the Secretary shall issue, not later than one 
                        year after the effective date of the interim 
                        final rule, a final rule as a permanent 
                        regulation to implement this subsection in 
                        accordance with the provisions of chapter 5 of 
                        title 5.
                            ``(ii) Failure to act.--If the Secretary 
                        does not issue a final rule in accordance with 
                        clause (i) on or before the last day of the 1-
                        year period referred to in clause (i), the 
                        interim final rule issued under subparagraph 
                        (A) shall not be effective after the last day 
                        of such period.
                            ``(iii) Superceding of interim final 
                        rule.--The final rule issued in accordance with 
                        this subparagraph shall supersede the interim 
                        final rule issued under subparagraph (A).
            ``(4) Report.--Not later than 1 year after the date of 
        establishment of the system under paragraph (1), the Secretary 
        shall transmit to Congress a report that describes the 
        system.''.
    (b) Assessment of Exemptions.--
            (1) TSA assessment of exemptions.--
                    (A) In general.--Not later than 120 days after the 
                date of enactment of this Act, the Secretary of 
                Homeland Security shall submit to the appropriate 
                committees of Congress and to the Comptroller General a 
                report regarding an assessment of each exemption 
                granted for inspection of air cargo and an analysis to 
                assess the risk of maintaining such exemption.
                    (B) Contents.--The report referred to in 
                subparagraph (A) shall include--
                            (i) the rationale for each exemption;
                            (ii) what percentage of cargo is not 
                        screened as a result of each exemption;
                            (iii) the impact of each exemption on 
                        aviation security;
                            (iv) the projected impact on the flow of 
                        commerce of eliminating each exemption, 
                        respectively, should the Secretary choose to 
                        take such action; and
                            (v) plans and rationale for maintaining, 
                        changing, or eliminating each exemption.
            (2) GAO assessment.--Not later than 120 days after the date 
        on which the report under paragraph (1) is submitted, the 
        Comptroller General shall review the report and provide to 
        Congress an assessment of the methodology of determinations 
        made by the Secretary for maintaining, changing, or eliminating 
        an exemption.

SEC. 407. APPEAL AND REDRESS PROCESS FOR PASSENGERS WRONGLY DELAYED OR 
              PROHIBITED FROM BOARDING A FLIGHT.

    (a) In General.--Subtitle C of title IV of the Homeland Security 
Act of 2002 (6 U.S.C. 231 et. seq.) is amended by adding at the end the 
following:

``SEC. 432. APPEAL AND REDRESS PROCESS FOR PASSENGERS WRONGLY DELAYED 
              OR PROHIBITED FROM BOARDING A FLIGHT.

    ``(a) In General.--The Secretary shall establish a timely and fair 
process for individuals who believe they have been delayed or 
prohibited from boarding a commercial aircraft because they were 
wrongly identified as a threat under the regimes utilized by the 
Transportation Security Administration, the Bureau of Customs and 
Border Protection, or any other Department entity.
    ``(b) Office of Appeals and Redress.--
            ``(1) Establishment.--The Secretary shall establish an 
        Office of Appeals and Redress to oversee the process 
        established by the Secretary pursuant to subsection (a).
            ``(2) Records.--The process established by the Secretary 
        pursuant to subsection (a) shall include the establishment of a 
        method by which the Office of Appeals and Redress, under the 
        direction of the Secretary, will be able to maintain a record 
        of air carrier passengers and other individuals who have been 
        misidentified and have corrected erroneous information.
            ``(3) Information.--To prevent repeated delays of a 
        misidentified passenger or other individual, the Office of 
        Appeals and Redress shall--
                    ``(A) ensure that the records maintained under this 
                subsection contain information determined by the 
                Secretary to authenticate the identity of such a 
                passenger or individual; and
                    ``(B) furnish to the Transportation Security 
                Administration, the Bureau of Customs and Border 
                Protection, or any other appropriate Department entity, 
                upon request, such information as may be necessary to 
                allow such agencies to assist air carriers in improving 
                their administration of the advanced passenger 
                prescreening system and reduce the number of false 
                positives.
            ``(4) Initiation of appeal and redress process at 
        airports.--The Office of Appeals and Redress shall establish at 
        each airport at which the Department has a significant presence 
        a process to allow air carrier passengers to begin the appeals 
        process established pursuant to subsection (a) at the 
        airport.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 430 
the following:

``Sec. 432. Appeal and redress process for passengers wrongly delayed 
                            or prohibited from boarding a flight.''.

SEC. 408. TRANSPORTATION SECURITY ADMINISTRATION PERSONNEL MANAGEMENT.

    (a) Elimination of Certain Personnel Management Authorities.--
Effective 90 days after the date of the enactment of this Act--
            (1) section 111(d) of the Aviation and Transportation 
        Security Act (49 U.S.C. 44935 note) is repealed and any 
        authority of the Secretary of Homeland Security derived from 
        such section 111(d) shall terminate;
            (2) any personnel management system, to the extent 
        established or modified pursuant to such section 111(d) 
        (including by the Secretary through the exercise of any 
        authority derived from such section 111(d)) shall terminate; 
        and
            (3) the Secretary shall ensure that all TSA employees are 
        subject to the same personnel management system as described in 
        subsection (e)(1) or (e)(2).
    (b) Establishment of Certain Uniformity Requirements.--
            (1) System under subsection (e)(1).--The Secretary shall, 
        with respect to any personnel management system described in 
        subsection (e)(1), take any measures which may be necessary to 
        provide for the uniform treatment of all TSA employees under 
        such system.
            (2) System under subsection (e)(1).--Section 9701(b) of 
        title 5, United States Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (4);
                    (B) by striking the period at the end of paragraph 
                (5) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(6) provide for the uniform treatment of all TSA 
        employees (as defined in section 408(d) of the Implementing the 
        9/11 Commission Recommendations Act of 2007).''.
            (3) Effective date.--
                    (A) Provisions relating to a system under 
                subsection (e)(1).--Any measures necessary to carry out 
                paragraph (1) shall take effect 90 days after the date 
                of the enactment of this Act.
                    (B) Provisions relating to a system under 
                subsection (e)(2).--Any measures necessary to carry out 
                the amendments made by paragraph (2) shall take effect 
                90 days after the date of the enactment of this Act or, 
                if later, the commencement date of the system involved.
    (c) Report to Congress.--
            (1) Report required.--Not later than 6 months after the 
        date of the enactment of this Act, the Government 
        Accountability Office shall submit to the Committee on Homeland 
        Security of the House of Representatives and the Committee on 
        Homeland Security and Governmental Affairs of the Senate a 
        report on--
                    (A) the pay system that applies with respect to TSA 
                employees as of the date of the enactment of this Act; 
                and
                    (B) any changes to such system which would be made 
                under any regulations which have been prescribed under 
                chapter 97 of title 5, United States Code.
            (2) Matters for inclusion.--The report required under 
        paragraph (1) shall include--
                    (A) a brief description of each pay system 
                described in paragraphs (1)(A) and (1)(B), 
                respectively;
                    (B) a comparison of the relative advantages and 
                disadvantages of each of those pay systems; and
                    (C) such other matters as the Government 
                Accountability Office considers appropriate.
    (d) TSA Employee Defined.--In this section, the term ``TSA 
employee'' means an individual who holds--
            (1) any position which was transferred (or the incumbent of 
        which was transferred) from the Transportation Security 
        Administration of the Department of Transportation to the 
        Department of Homeland Security by section 403 of the Homeland 
        Security Act of 2002 (6 U.S.C. 203); or
            (2) any other position within the Department of Homeland 
        Security the duties and responsibilities of which include 
        carrying out one or more of the functions that were transferred 
        from the Transportation Security Administration of the 
        Department of Transportation to the Secretary by such section.
    (e) Personnel Management System Described.--A personnel management 
system described in this subsection is--
            (1) any personnel management system, to the extent that it 
        applies with respect to any TSA employees by virtue of section 
        114(n) of title 49, United States Code; and
            (2) any human resources management system, established 
        under chapter 97 of title 5, United States Code.

SEC. 409. STRATEGIC PLAN TO TEST AND IMPLEMENT ADVANCED PASSENGER 
              PRESCREENING SYSTEM.

    Not later than 90 days after the date of the enactment of the Act, 
the Secretary of Homeland Security shall submit to Congress a plan 
that--
            (1) describes the system to be utilized for the Department 
        of Homeland Security to assume the performance of comparing 
        passenger information, as defined by the Assistant Secretary of 
        Homeland Security (Transportation Security Administration), to 
        the automatic selectee and no fly lists, utilizing appropriate 
        records in the consolidated and integrated terrorist watchlist 
        maintained by the Federal Government;
            (2) provides a projected timeline for each phase of testing 
        and implementation of the system;
            (3) explains how the system will be integrated with the 
        prescreening system for passenger on international flights; and
            (4) describes how the system complies with section 552a of 
        title 5, United States Code.

        TITLE V--STRENGTHENING THE SECURITY OF CARGO CONTAINERS

SEC. 501. REQUIREMENTS RELATING TO ENTRY OF CONTAINERS INTO THE UNITED 
              STATES.

    (a) Requirements.--Section 70116 of title 46, United States Code, 
is amended by adding at the end the following new subsection:
    ``(c) Requirements Relating to Entry of Containers.--
            ``(1) In general.--A container may enter the United States, 
        either directly or via a foreign port, only if--
                    ``(A) the container is scanned with equipment that 
                meets the standards established pursuant to paragraph 
                (2)(A) and a copy of the scan is provided to the 
                Secretary; and
                    ``(B) the container is secured with a seal that 
                meets the standards established pursuant to paragraph 
                (2)(B), before the container is loaded on the vessel 
                for shipment to the United States.
            ``(2) Standards for scanning equipment and seals.--
                    ``(A) Scanning equipment.--The Secretary shall 
                establish standards for scanning equipment required to 
                be used under paragraph (1)(A) to ensure that such 
                equipment uses the best-available technology, including 
                technology to scan a container for radiation and 
                density and, if appropriate, for atomic elements.
                    ``(B) Seals.--The Secretary shall establish 
                standards for seals required to be used under paragraph 
                (1)(B) to ensure that such seals use the best-available 
                technology, including technology to detect any breach 
                into a container and identify the time of such breach.
                    ``(C) Review and revision.--The Secretary shall--
                            ``(i) review and, if necessary, revise the 
                        standards established pursuant to subparagraphs 
                        (A) and (B) not less than once every two years; 
                        and
                            ``(ii) ensure that any such revised 
                        standards require the use of technology, as 
                        soon as such technology becomes available, to--
                                    ``(I) identify the place of a 
                                breach into a container;
                                    ``(II) notify the Secretary of such 
                                breach before the container enters the 
                                Exclusive Economic Zone of the United 
                                States; and
                                    ``(III) track the time and location 
                                of the container during transit to the 
                                United States, including by truck, 
                                rail, or vessel.
                    ``(D) Definition.--In subparagraph (C), the term 
                `Exclusive Economic Zone of the United States' has the 
                meaning given the term `Exclusive Economic Zone' in 
                section 2101(10a) of this title.''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out section 70116(c) of title 46, United States 
Code, as added by subsection (a) of this section, such sums as may be 
necessary for each of the fiscal years 2008 through 2013.
    (c) Regulations; Application.--
            (1) Regulations.--
                    (A) Interim final rule.--Consistent with the 
                results of and lessons derived from the pilot system 
                implemented under section 231 of the SAFE Port Act 
                (Public Law 109-347), the Secretary of Homeland 
                Security shall issue an interim final rule as a 
                temporary regulation to implement section 70116(c) of 
                title 46, United States Code, as added by subsection 
                (a) of this section, not later than 180 days after the 
                date of the submission of the report under section 231 
                of the SAFE Port Act, without regard to the provisions 
                of chapter 5 of title 5, United States Code.
                    (B) Final rule.--The Secretary shall issue a final 
                rule as a permanent regulation to implement section 
                70116(c) of title 46, United States Code, as added by 
                subsection (a) of this section, not later than one year 
                after the date of the submission of the report under 
                section 231 of the SAFE Port Act, in accordance with 
                the provisions of chapter 5 of title 5, United States 
                Code. The final rule issued pursuant to that rulemaking 
                may supersede the interim final rule issued pursuant to 
                subparagraph (A).
            (2) Phased-in application.--
                    (A) In general.--The requirements of section 
                70116(c) of title 46, United States Code, as added by 
                subsection (a) of this section, apply with respect to 
                any container entering the United States, either 
                directly or via a foreign port, beginning on--
                            (i) the end of the 3-year period beginning 
                        on the date of the enactment of this Act, in 
                        the case of a container loaded on a vessel 
                        destined for the United States in a country in 
                        which more than 75,000 twenty-foot equivalent 
                        units of containers were loaded on vessels for 
                        shipping to the United States in 2005; and
                            (ii) the end of the 5-year period beginning 
                        on the date of the enactment of this Act, in 
                        the case of a container loaded on a vessel 
                        destined for the United States in any other 
                        country.
                    (B) Extension.--The Secretary may extend by up to 
                one year the period under clause (i) or (ii) of 
                subparagraph (A) for containers loaded in a port, if 
                the Secretary--
                            (i) finds that the scanning equipment 
                        required under section 70116(c) of title 46, 
                        United States Code, as added by subsection (a) 
                        of this section, is not available for purchase 
                        and installation in the port; and
                            (ii) at least 60 days prior to issuing such 
                        extension, transmits such finding to the 
                        appropriate congressional committees.
    (d) International Cargo Security Standards.--The Secretary, in 
consultation with the Secretary of State, is encouraged to promote and 
establish international standards for the security of containers moving 
through the international supply chain with foreign governments and 
international organizations, including the International Maritime 
Organization and the World Customs Organization.
    (e) International Trade and Other Obligations.--In carrying out 
section 70116(c) of title 46, United States Code, as added by 
subsection (a) of this section, the Secretary shall consult with 
appropriate Federal departments and agencies and private sector 
stakeholders to ensure that actions under such section do not violate 
international trade obligations or other international obligations of 
the United States.

      TITLE VI--STRENGTHENING EFFORTS TO PREVENT TERRORIST TRAVEL

    Subtitle A--Human Smuggling and Trafficking Center Improvements

SEC. 601. STRENGTHENING THE CAPABILITIES OF THE HUMAN SMUGGLING AND 
              TRAFFICKING CENTER.

    (a) In General.--The Secretary, acting through the Assistant 
Secretary of Homeland Security for United States Immigration and 
Customs Enforcement, shall provide to the Human Smuggling and 
Trafficking Center (in this section referred to as the ``Center'') the 
administrative support and funding required for its maintenance, 
including funding for personnel, leasing of office space, supplies, 
equipment, technology, training, and travel expenses necessary for the 
Center to carry out its mission.
    (b) Staffing of the Center.--
            (1) In general.--Funding provided under subsection (a) 
        shall be used for the hiring of for not fewer than 30 full-time 
        equivalent staff for the Center, to include the following:
                    (A) One Director.
                    (B) One Deputy Director for Smuggling.
                    (C) One Deputy Director for Trafficking.
                    (D) One Deputy Director for Terrorist Travel.
                    (E) Not fewer than 15 intelligence analysts or 
                Special Agents, to include the following:
                            (i) Not fewer than ten such analysts or 
                        Agents shall be intelligence analysts or law 
                        enforcement agents who shall be detailed from 
                        entities within the Department of Homeland 
                        Security with human smuggling and trafficking 
                        related responsibilities, as determined by the 
                        Secretary.
                            (ii) Not fewer than one full time 
                        professional staff detailee from each of the 
                        United States Coast Guard, United States 
                        Immigration and Customs Enforcement, United 
                        States Customs and Border Protection, 
                        Transportation Security Administration, and the 
                        Office of Intelligence and Analysis.
            (2) Requirements.--Intelligence analysts or Special Agents 
        detailed to the Center under paragraph (1)(E) shall have at 
        least three years experience related to human smuggling or 
        human trafficking.
            (3) Duration of assignment.--An intelligence analyst or 
        Special Agent detailed to the Center under paragraph (1)(E) 
        shall be detailed for a period of not less than two years.
    (c) Funding Reimbursement.--In operating the Center, the Secretary 
of Homeland Security shall act in accordance with all applicable 
requirements of the Economy Act (31 U.S.C. 1535), and shall seek 
reimbursement from the Attorney General and the Secretary of State, in 
such amount or proportion as is appropriate, for costs associated with 
the participation of the Department of Justice and the Department of 
State in the operation of the Center.
    (d) Development of Plan.--The Secretary of Homeland Security shall 
develop a plan for the Center that--
            (1) defines the roles and responsibilities of each 
        Department participating in the Center;
            (2) describes how the Department of Homeland Security shall 
        utilize its resources to ensure that the Center uses 
        intelligence to focus and drive its efforts;
            (3) describes the mechanism for the sharing of information 
        from United States Immigration and Customs Enforcement and 
        United States Customs and Border Protection field offices to 
        the Center;
            (4) describes the mechanism for the sharing of homeland 
        security information from the Center to the Office of 
        Intelligence and Analysis, including how such sharing shall be 
        consistent with section 1016(b) of the Intelligence Reform and 
        Terrorism Prevention Act of 2004 (Public Law 108-458);
            (5) establishes reciprocal security clearance status to 
        other participating agencies in the Center in order to ensure 
        full access to necessary databases;
            (6) establishes or consolidates networked systems for the 
        Center; and
            (7) ensures that the assignment of personnel to the Center 
        from agencies of the Department of Homeland Security is 
        incorporated into the civil service career path of such 
        personnel.
    (e) Memorandum of Understanding.--The Secretary of Homeland 
Security shall execute with the Attorney General a Memorandum of 
Understanding in order to clarify cooperation and coordination between 
United States Immigration and Customs Enforcement and the Federal 
Bureau of Investigation regarding issues related to human smuggling, 
human trafficking, and terrorist travel.
    (f) Coordination With the Office of Intelligence and Analysis.--The 
Office of Intelligence and Analysis, in coordination with the Center, 
shall submit to Federal, State, local, and tribal law enforcement and 
other relevant agencies periodic reports regarding terrorist threats 
related to human smuggling, human trafficking, and terrorist travel.

  Subtitle B--International Collaboration to Prevent Terrorist Travel

SEC. 611. REPORT ON INTERNATIONAL COLLABORATION TO INCREASE BORDER 
              SECURITY, ENHANCE GLOBAL DOCUMENT SECURITY, AND EXCHANGE 
              TERRORIST INFORMATION.

    (a) Report Required.--Not later than 270 days after the date of the 
enactment of this Act, the Secretary of State and the Secretary of 
Homeland Security, in conjunction with the Director of National 
Intelligence and the heads of other appropriate Federal departments and 
agencies, shall submit to the appropriate congressional committees a 
report on efforts of the Government of the United States to collaborate 
with international partners and allies of the United States to increase 
border security, enhance global document security, and exchange 
terrorist information.
    (b) Contents.--The report required by subsection (a) shall 
outline--
            (1) all presidential directives, programs, and strategies 
        for carrying out and increasing United States Government 
        efforts described in subsection (a);
            (2) the goals and objectives of each of these efforts;
            (3) the progress made in each of these efforts; and
            (4) the projected timelines for each of these efforts to 
        become fully functional and effective.
    (c) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Foreign Affairs, the Committee on 
        Homeland Security, the Committee on the Judiciary, and the 
        Permanent Select Committee on Intelligence of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations, the Committee on 
        Homeland Security and Governmental Affairs, the Committee on 
        the Judiciary, and the Select Committee on Intelligence of the 
        Senate.

           Subtitle C--Biometric Border Entry and Exit System

SEC. 621. SUBMITTAL OF PLAN ON BIOMETRIC ENTRY AND EXIT VERIFICATION 
              SYSTEM IMPLEMENTATION.

    Not later than 7 days after the date of the enactment of this Act, 
the Secretary for Homeland Security shall submit to the Committee on 
Homeland Security and the Committee on the Judiciary and the Committee 
on Homeland Security and Governmental Affairs and the Committee on the 
Judiciary of the Senate the plan developed by the Secretary under 
section 7208(c) of the Intelligence Reform and Terrorism Prevention Act 
of 2004 (8 U.S.C. 1365b(c)(2)) to accelerate the full implementation of 
an automated biometric entry and exit data system.

 TITLE VII--IMPROVING INTELLIGENCE AND INFORMATION SHARING WITH LOCAL 
                  LAW ENFORCEMENT AND FIRST RESPONDERS

 Subtitle A--Fusion and Law Enforcement Education and Teaming (FLEET) 
                             Grant Program

SEC. 701. FINDINGS.

    Congress finds the following:
            (1) The intelligence component of a State, local, or 
        regional fusion center (in this title referred to generally as 
        ``fusion centers'') focuses on the intelligence process, in 
        which information is collected, integrated, evaluated, 
        analyzed, and disseminated. The Federal Government and 
        nontraditional sources of intelligence information--such as 
        public safety entities at the State, local, and tribal levels, 
        and private sector organizations--all possess valuable 
        information that when ``fused'' with law enforcement data and 
        properly analyzed at fusion centers can provide law enforcement 
        officers with specific and actionable intelligence about 
        terrorist and related criminal activity.
            (2) Participation by local and tribal law enforcement 
        officers and intelligence analysts in fusion centers helps 
        secure the homeland by involving such officers and analysts in 
        the intelligence process on a daily basis, by helping them 
        build professional relationships across every level and 
        discipline of government and the private sector, and by 
        ensuring that intelligence and other information, including 
        threat assessment, public safety, law enforcement, public 
        health, social service, and public works, is shared throughout 
        and among relevant communities. Such local and tribal 
        participation in fusion centers supports the efforts of all law 
        enforcement agencies and departments to anticipate, identify, 
        monitor, and prevent terrorist and related criminal activity.
            (3) Some local and tribal law enforcement agencies and 
        departments, however, lack resources to participate fully in 
        fusion centers.
            (4) Needs-based grant funding will maximize the 
        participation of local and tribal law enforcement agencies and 
        departments in fusion centers by reducing the costs associated 
        with detailing officers and intelligence analysts to fusion 
        centers. Consequently, such grant funding will not only promote 
        the development of more effective, resourceful, and 
        situationally aware fusion centers, but will also advance the 
        cause of homeland security.

SEC. 702. FLEET GRANT PROGRAM.

    (a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 is further amended by adding at the end the following new 
section:

``SEC. 203. FLEET GRANT PROGRAM.

    ``(a) Implementation Plan and Establishment.--
            ``(1) Implementation plan.--Not later than 90 days after 
        the date of the enactment of the Implementing the 9/11 
        Commission Recommendations Act of 2007, the Secretary shall 
        develop a Fusion and Law Enforcement Education and Teaming 
        Grant Program (in this section referred to as the `FLEET Grant 
        program') implementation plan and submit to the appropriate 
        congressional committees a copy of such plan. In developing 
        such plan, the Secretary shall consult with the Attorney 
        General, the Bureau of Justice Assistance, and the Office of 
        Community Oriented Policing of the Department of Justice and 
        shall encourage the participation of fusion centers and local 
        and tribal law enforcement agencies and departments in the 
        development of such plan. Such plan shall include--
                    ``(A) a clear articulation of the purposes, goals, 
                and specific objectives for which the program is being 
                developed;
                    ``(B) an identification of program stakeholders and 
                an assessment of their interests in and expectations 
                for the program;
                    ``(C) a developed set of quantitative metrics to 
                measure, to the extent possible, program output; and
                    ``(D) a developed set of qualitative instruments 
                (e.g., surveys and expert interviews) to assess the 
                extent to which stakeholders believe their needs and 
                expectations are being met by the program.
            ``(2) Establishment.--Not later than 180 days after the 
        enactment of the Implementing the 9/11 Commission 
        Recommendations Act of 2007, the Secretary shall implement and 
        carry out a FLEET Grant program under which the Secretary, in 
        consultation with the Attorney General, shall make grants to 
        local and tribal law enforcement agencies and departments 
        specified by the Secretary, in consultation with the Attorney 
        General, for the purposes described in subsection (b). Subject 
        to subsection (g), each such grant shall be made for a two-year 
        period.
    ``(b) Use of Grant Amounts.--
            ``(1) In general.--A grant made to a local or tribal law 
        enforcement agency or department under subsection (a) shall be 
        used to enable such agency or department to detail eligible law 
        enforcement personnel to participate in a fusion center that 
        serves the geographic area in which such agency or department 
        is located, and may be used for the following purposes:
                    ``(A) To hire new personnel, or to pay existing 
                personnel, to perform the duties of eligible law 
                enforcement personnel who are detailed to a fusion 
                center during the absence of such detailed personnel.
                    ``(B) To provide appropriate training, as 
                determined and required by the Secretary, in 
                consultation with the Attorney General, for eligible 
                law enforcement personnel who are detailed to a fusion 
                center.
                    ``(C) To establish communications connectivity 
                between eligible law enforcement personnel who are 
                detailed to a fusion center and the home agency or 
                department of such personnel in accordance with all 
                applicable laws and regulations.
            ``(2) Mandatory privacy and civil liberties training.--All 
        eligible law enforcement personnel detailed to a fusion center 
        under the FLEET Grant Program shall undergo appropriate privacy 
        and civil liberties training that is developed, supported, or 
        sponsored by the Privacy Officer and the Officer for Civil 
        Rights and Civil Liberties in partnership with the Privacy and 
        Civil Liberties Oversight Board.
            ``(3) Limitation.--A local or tribal law enforcement agency 
        or department participating in the FLEET Grant program shall 
        continue to provide a salary and benefits to any eligible law 
        enforcement personnel detailed to a fusion center, in the same 
        amounts and under the same conditions that such agency or 
        department provides a salary and benefits to such personnel 
        when not detailed to a fusion center. None of the funds 
        provided by the FLEET grant program may be used to carry out 
        this paragraph.
            ``(4) Eligible law enforcement personnel defined.--For 
        purposes of this section, the term `eligible law enforcement 
        personnel' means any local or tribal law enforcement officer or 
        intelligence analyst who meets each eligibility requirement 
        specified by the Secretary. Such eligibility requirements shall 
        include a requirement that the officer or analyst has at least 
        two years of experience as a law enforcement officer or 
        intelligence analyst with the local or tribal law enforcement 
        agency or department selected to participate in the FLEET Grant 
        program.
    ``(c) Applications.--
            ``(1) In general.--No grant may be made under subsection 
        (a) unless an application for such grant has been submitted to, 
        and approved by, the Secretary, in consultation with the 
        Attorney General. Such an application shall be submitted in 
        such form, manner, and time, and shall contain such 
        information, as the Secretary, in consultation with the 
        Attorney General, may prescribe by regulation or guidelines.
            ``(2) Joint applications.--A local or tribal law 
        enforcement agency or department may file a joint grant 
        application to detail eligible law enforcement personnel to a 
        fusion center. Such application shall be--
                    ``(A) for a single detailed officer or intelligence 
                analyst, who shall be detailed to work at a fusion 
                center on a full-time basis; or
                    ``(B) in the case of participating local and tribal 
                law enforcement agencies or departments for which a 
                detail arrangement described in subparagraph (A) is 
                likely to result in hardship due to a staffing shortage 
                (as determined by the Secretary, in consultation with 
                the Attorney General), for several eligible law 
                enforcement personnel from multiple local or tribal law 
                enforcement agencies or departments in the same 
                geographic area, who shall be detailed to a fusion 
                center, each on a part-time basis, as part of a shared 
                detail arrangement, as long as--
                            ``(i) any hours worked by a detailed 
                        officer or analyst at a fusion center in a 
                        shared detail arrangement shall be counted 
                        toward the hourly shift obligations of such 
                        officer or analyst at his or her local or 
                        tribal law enforcement agency or department; 
                        and
                            ``(ii) no detailed officer or analyst 
                        working at a fusion center in a shared detail 
                        arrangement shall be required to regularly work 
                        more hours than the officer or analyst would 
                        otherwise work if the officer or analyst was 
                        not participating in the shared detail 
                        arrangement.
    ``(d) Distribution of Grants.--In considering applications for 
grants under subsection (a), the Secretary, in consultation with the 
Attorney General, shall ensure that, to the extent practicable--
            ``(1) entities that receive such grants are representative 
        of a broad cross-section of local and tribal law enforcement 
        agencies and departments;
            ``(2) an appropriate geographic distribution of grants is 
        made among urban, suburban, and rural communities; and
            ``(3) such grants are awarded based on consideration of any 
        assessments of risk by the Department of Homeland Security.
    ``(e) Priority.--The Secretary, in consultation with the Attorney 
General, shall issue regulations regarding the use of a sliding scale 
based on financial need to ensure that a local or tribal law 
enforcement agency or department that is eligible to receive a grant 
under subsection (a) and that demonstrates to the satisfaction of the 
Secretary, in consultation with the Attorney General, that it is in 
financial need (as determined by the Secretary, in consultation with 
the Attorney General) receives priority in receiving funds under this 
section.
    ``(f) Matching Funds.--
            ``(1) In general.--Subject to paragraph (2), the portion of 
        the costs of a program, project, or activity funded by a grant 
        made to an entity under subsection (a) may not exceed 80 
        percent.
            ``(2) Exception.--The Secretary, in consultation with the 
        Attorney General, may waive, wholly or in part, the requirement 
        under paragraph (1) of a non-Federal contribution to the costs 
        of a program, project, or activity if the entity receiving the 
        grant for such program, project, or activity can demonstrate to 
        the satisfaction of the Secretary, in consultation with the 
        Attorney General, that it would be a hardship for such entity 
        to satisfy such requirement.
    ``(g) Renewal of Grants.--A grant made to a local or tribal law 
enforcement agency or department under subsection (a) may be renewed on 
an annual basis for an additional year after the first two-year period 
during which the entity receives its initial grant, if--
            ``(1) the entity can demonstrate to the satisfaction of the 
        Secretary, in consultation with the Attorney General, 
        significant progress in achieving the objectives of the 
        application for the initial grant involved; and
            ``(2) such renewal would not prevent another local or 
        tribal law enforcement agency or department that has applied 
        for a grant under subsection (a), has not previously received 
        such a grant, and that would otherwise qualify for such a 
        grant, from receiving such a grant, as determined by the 
        Secretary, in consultation with the Attorney General.
    ``(h) Revocation or Suspension of Funding.--If the Secretary, in 
consultation with the Attorney General, determines that a grant 
recipient under this section is not in substantial compliance with the 
terms and requirements of an approved grant application submitted under 
subsection (c), the Secretary, in consultation with the Attorney 
General, may revoke or suspend funding of that grant, in whole or in 
part. In the case of a revocation or suspension of funds under this 
subsection based on a determination of fraud, waste, or abuse, with 
respect to a grant recipient, such grant recipient shall be required to 
refund the grant funds received under subsection (a) that are related 
to such fraud, waste, or abuse, respectively.
    ``(i) Reports.--
            ``(1) Reports to secretary.--Each local or tribal law 
        enforcement agency or department that receives a grant under 
        subsection (a) shall submit to the Secretary and the Attorney 
        General a report for each year such agency or department is a 
        recipient of such grant. Each such report shall include a 
        description and evaluation of each program, project, or 
        activity funded by such grant.
            ``(2) Report to congress.--One year after the date of the 
        implementation of the FLEET grant program, and biannually 
        thereafter, the Secretary, in consultation with the Attorney 
        General, shall submit to the appropriate congressional 
        committees a report describing the implementation and progress 
        of the FLEET Grant Program. Each such report shall include the 
        following:
                    ``(A) A list of the local and tribal law 
                enforcement agencies and departments receiving grants.
                    ``(B) Information on the grant amounts awarded to 
                each such agency or department.
                    ``(C) Information on the programs, projects, and 
                activities for which the grant funds are used.
                    ``(D) An evaluation of the effectiveness of the 
                FLEET Grant program with respect to the cause of 
                advancing homeland security, including--
                            ``(i) concrete examples of enhanced 
                        information sharing and a description of any 
                        preventative law enforcement actions taken 
                        based on such information sharing;
                            ``(ii) an evaluation of the effectiveness 
                        of the detail arrangements with FLEET Grant 
                        program grant recipients;
                            ``(iii) an evaluation of how the FLEET 
                        Grant program benefits the fusion centers;
                            ``(iv) a description of how individual law 
                        enforcement officers and intelligence analysts 
                        detailed to the fusion centers benefit from the 
                        detail experience; and
                            ``(v) an evaluation of how the detail of 
                        the law enforcement officers and intelligence 
                        analysts assists the fusion centers in learning 
                        more about criminal or terrorist organizations 
                        operating within their areas of operation, 
                        including a description of any homeland 
                        security information requirements that were 
                        developed, or any homeland security information 
                        gaps that were filled, as a result of the 
                        detail arrangement.
                    ``(E) An analysis of any areas of need, with 
                respect to the advancement of homeland security, that 
                could be addressed through additional funding or other 
                legislative action.
    ``(j) Customer Satisfaction Surveys.--The Secretary, in 
consultation with the Attorney General, shall create a mechanism for 
State, local, and tribal law enforcement officers and intelligence 
analysts who participate in the FLEET Grant program to fill out an 
electronic customer satisfaction survey, on an appropriate periodic 
basis, to assess the effectiveness of the FLEET Grant program with 
respect to improving information sharing. The results of these 
voluntary surveys shall be provided electronically to appropriate 
personnel at the Office of Grants and Training of the Department and at 
the Bureau of Justice Assistance and the Office of Community Oriented 
Policing of the Department of Justice. The results of these customer 
satisfaction surveys shall also be included in an appropriate format in 
the reports described in subsection (i).
    ``(k) Continuation Assessment.--Five years after the date of the 
implementation of the FLEET Grant program, the Secretary, in 
consultation with the Attorney General, shall submit to the appropriate 
congressional committees a FLEET Grant program continuation assessment. 
Such continuation assessment shall--
            ``(1) recommend whether Congress should continue to 
        authorize and fund the FLEET Grant program (as authorized under 
        this section or with proposed changes), and provide the 
        reasoning for such recommendation; and
            ``(2) if the Secretary recommends the continuation of the 
        FLEET Grant program--
                    ``(A) recommend any changes to the program which 
                the Secretary, in consultation with the Attorney 
                General, has identified as necessary to improve the 
                program, and the reasons for any such changes;
                    ``(B) list and describe legislative priorities for 
                Congress relating to the continuation of the program; 
                and
                    ``(C) provide recommendations for the amounts of 
                funding that should be appropriated for the 
                continuation of the program in future fiscal years, 
                including justifications for such amounts.
    ``(l) General Regulatory Authority.--The Secretary, in consultation 
with the Attorney General, may promulgate regulations and guidelines to 
carry out this section.
    ``(m) Definitions.--For the purposes of this section:
            ``(1) The term `local law enforcement agency or department' 
        means a local municipal police department or a county sheriff's 
        office in communities where there is no police department.
            ``(2) The term `tribal law enforcement agency or 
        department' means the police force of an Indian tribe (as such 
        term is defined in section 4 of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450b)) established and 
        maintained by such a tribe pursuant to the tribe's powers of 
        self-government to carry out law enforcement.''.
    (b) Definition of Fusion Center.--Section 2 of such Act is amended 
by adding at the end the following new paragraph:
            ``(17) The terms `State, local, or regional fusion center' 
        and `fusion center' mean a State intelligence center or a 
        regional intelligence center that is the product of a 
        collaborative effort of at least two qualifying agencies that 
        provide resources, expertise, or information to such center 
        with the goal of maximizing the ability of such intelligence 
        center and the qualifying agencies participating in such 
        intelligence center to provide and produce homeland security 
        information required to detect, prevent, apprehend, and respond 
        to terrorist and criminal activity. For purposes of the 
        preceding sentence, qualifying agencies include--
                    ``(A) State, local, and tribal law enforcement 
                authorities, and homeland and public safety agencies;
                    ``(B) State, local, and tribal entities responsible 
                for the protection of public health and infrastructure;
                    ``(C) private sector owners of critical 
                infrastructure, as defined in section 1016(e) of the 
                Uniting and Strengthening America by Providing 
                Appropriate Tools Required to Intercept and Obstruct 
                Terrorism (USA PATRIOT ACT) Act of 2001 (42 U.S.C. 
                5195c(e));
                    ``(D) Federal law enforcement and homeland security 
                entities; and
                    ``(E) other appropriate entities specified by the 
                Secretary.''.
    (c) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 202 
the following:

``Sec. 203. FLEET Grant Program.''.

         Subtitle B--Border Intelligence Fusion Center Program

SEC. 711. FINDINGS.

    Congress finds the following:
            (1) The United States has 216 airports, 143 seaports, and 
        115 official land border crossings that are official ports of 
        entry. Screening all the people and goods coming through these 
        busy ports is an enormous resource challenge for the men and 
        women of the Department of Homeland Security (``Department'') .
            (2) Department personnel, including personnel from the 
        Bureau of Customs and Border Protection (``CBP'') and U.S. 
        Immigration and Customs Enforcement (``ICE''), cannot be 
        everywhere at all times to ensure that terrorists, weapons of 
        mass destruction, and other related contraband are not being 
        smuggled across the border in order to support attacks against 
        the United States.
            (3) State, local, and tribal law enforcement personnel are 
        uniquely situated to help secure the border areas in their 
        respective jurisdictions by serving as ``force multipliers''. 
        To do so, however, law enforcement officers need access to 
        available border intelligence developed by the Department. Such 
        access shall help State, local, and tribal law enforcement 
        personnel deploy their resources most effectively to detect and 
        interdict terrorists, weapons of mass destruction, and related 
        contraband at United States borders.
            (4) The Department has not yet developed a single, easily 
        accessible, and widely available system to consistently share 
        border intelligence and other information with its State, 
        local, and tribal law enforcement partners. It likewise has 
        failed to establish a process by which State, local, and tribal 
        law enforcement personnel can consistently share with the 
        Department information that they obtain that is relevant to 
        border security.
            (5) As a result, State, local, and tribal law enforcement 
        personnel serving jurisdictions along the northern and southern 
        borders typically depend upon personal relationships with CBP 
        and ICE personnel in their respective jurisdictions to get the 
        information they need. While personal relationships have helped 
        in some locales, they have not in others. This has led to an 
        inconsistent sharing of border intelligence from jurisdiction 
        to jurisdiction.
            (6) State, local, and regional fusion centers (``fusion 
        centers'') may help improve this situation.
            (7) In the wake of the terrorist attacks of September 11, 
        2001, numerous State, local, and tribal authorities responsible 
        for the protection of the public and critical infrastructure 
        established fusion centers to help prevent terrorist attacks 
        while at the same time preparing to respond to and recover from 
        a terrorist attack should one occur.
            (8) Most border States have some variation of a fusion 
        center.
            (9) In general, while the Federal Government has helped to 
        establish fusion centers through the Department's grants, a 
        substantial percentage of the financial burden to support 
        ongoing fusion center operations is borne by States and 
        localities.
            (10) The Department, and in particular, the Department's 
        Office of Intelligence and Analysis, has undertaken a program 
        through which it sends such office's personnel to fusion 
        centers to establish a Department presence at those centers. In 
        so doing, the hope is that such personnel will serve as a point 
        of contact for information being shared at fusion centers by 
        State, local, and tribal law enforcement personnel. Personnel 
        at fusion centers hopefully will also act as a channel for 
        information being shared by the Department itself.
            (11) Border State, local, and tribal law enforcement 
        officers anticipate that fusion centers will be a critical 
        source of border intelligence from the Department. While the 
        Department's border intelligence products generated in the 
        District of Columbia and disseminated to fusion centers will 
        undoubtedly be helpful, a far richer source of border 
        intelligence will likely come from CBP and ICE personnel 
        working locally in border jurisdictions themselves.
            (12) Establishing a CBP and ICE presence at border State 
        fusion centers will help ensure the most consistent, timely, 
        and relevant flow of border intelligence to and from the 
        Department and State, local, and tribal law enforcement in 
        border communities. Border State fusion centers thus could 
        serve as a tool to build upon the personal relationships and 
        information sharing that exists in some, but not all, 
        jurisdictions between CBP, ICE, and State, local, and tribal 
        law enforcement.

SEC. 712. ESTABLISHMENT OF BORDER INTELLIGENCE FUSION CENTER PROGRAM.

    (a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 (6 U.S.C. 121 et seq.) is further amended by adding at the 
end the following new section:

``SEC. 204. BORDER INTELLIGENCE FUSION CENTER PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--There is established in the Department 
        the Border Intelligence Fusion Center Program, to be 
        administered by the Under Secretary for Intelligence and 
        Analysis, for the purpose of stationing Bureau of Customs and 
        Border Protection and U.S. Immigration and Customs Enforcement 
        officers or intelligence analysts in the fusion centers of 
        participating border States.
            ``(2) New hires.--Funding provided under the Border 
        Intelligence Fusion Center Program shall be available to hire 
        new CBP and ICE officers or intelligence analysts to replace 
        CBP and ICE officers or intelligence analysts who are stationed 
        at border State fusion centers under this section.
    ``(b) Participation.--
            ``(1) In general.--The Secretary may develop qualifying 
        criteria for a border state fusion center's participation in 
        the Border Intelligence Fusion Center Program.
            ``(2) Criteria.--Such criteria may include the following:
                    ``(A) Whether the center focuses on a broad 
                counterterrorism and counter-criminal approach, and 
                whether that broad approach is pervasive through all 
                levels of the organization.
                    ``(B) Whether the center has sufficient numbers of 
                adequately trained personnel to support a broad 
                counterterrorism and counter-criminal mission.
                    ``(C) Whether the center has access to relevant law 
                enforcement, private sector, open source, and national 
                security data, as well as the ability to share and 
                analytically exploit such data for actionable ends in 
                accordance with all applicable laws and regulations.
                    ``(D) The entity or entities providing financial 
                support for the center's funding.
                    ``(E) Whether the center's leadership is committed 
                to the fusion center's mission, and how the leadership 
                sees the center's role in terrorism prevention, 
                mitigation, response, and recovery.
    ``(c) Assignment.--Wherever possible, not fewer than one CBP 
officer or intelligence analyst and one ICE officer or intelligence 
analyst shall be stationed at each participating border State fusion 
center.
    ``(d) Prerequisite.--
            ``(1) Prior work experience in area.--To be stationed at a 
        border State fusion center under this section, a CBP or ICE 
        officer shall have served as a CBP or ICE officer in the State 
        in which the fusion center where such officer shall be 
        stationed is located for not less than two years before such 
        assignment in order to ensure that such officer is familiar 
        with the geography and people living in border communities, as 
        well as the State, local, and tribal law enforcement agencies 
        serving those communities.
            ``(2) Intelligence analysis, privacy, and civil liberties 
        training.--Before being stationed at a border State fusion 
        center under this section, a CBP or ICE officer shall undergo--
                    ``(A) appropriate intelligence analysis training 
                via an intelligence-led policing curriculum that is 
                consistent with the standards and recommendations of 
                the National Criminal Intelligence Sharing Plan, the 
                Department of Justice and Department Fusion Center 
                Guidelines, title 28, part 23, Code of Federal 
                Regulations, as well as any other training prescribed 
                by the Under Secretary for Intelligence and Analysis; 
                and
                    ``(B) appropriate privacy and civil liberties 
                training that is developed, supported, or sponsored by 
                the Privacy Officer and the Officer for Civil Rights 
                and Civil Liberties in partnership with the Privacy and 
                Civil Liberties Oversight Board.
            ``(3) Expedited security clearance processing.--The Under 
        Secretary for Intelligence and Analysis shall ensure that 
        security clearance processing is expedited for each CBP and ICE 
        officer or intelligence analyst stationed at border State 
        fusion centers under this section and shall ensure that such 
        officer or analyst has the appropriate clearance to conduct the 
        work of the Border Intelligence Fusion Center Program.
            ``(4) Further qualifications.--Each CBP and ICE officer or 
        intelligence analyst stationed at a border State fusion center 
        under this section shall satisfy any other qualifications the 
        Under Secretary for Intelligence and Analysis may prescribe.
    ``(e) Responsibilities.--
            ``(1) In general.--
                    ``(A) Creation and dissemination of border 
                intelligence products.--CBP and ICE officers and 
                intelligence analysts assigned to border State fusion 
                centers under this section will help State, local, and 
                tribal law enforcement in jurisdictions along the 
                northern and southern borders, and border State fusion 
                center staff, overlay threat and suspicious activity 
                with Federal homeland security information in order to 
                develop a more comprehensive and accurate threat 
                picture. Such CBP and ICE officers and intelligence 
                analysts accordingly shall have as their primary 
                mission the review of border security-relevant 
                information from State, local, and tribal law 
                enforcement sources, and the creation of border 
                intelligence products derived from such information and 
                other border-security relevant information provided by 
                the Department, and the dissemination of such products 
                to border State, local, and tribal law enforcement. CBP 
                and ICE officers or intelligence analysts assigned to 
                border State fusion centers under this section shall 
                also provide such products to the Office of 
                Intelligence and Analysis of the Department for 
                collection and dissemination to other fusion centers in 
                other border States.
                    ``(B) Database access.--In order to fulfill the 
                objectives described in subparagraph (A), CBP and ICE 
                officers and intelligence analysts stationed at border 
                State fusion centers under this section shall have 
                direct access to all relevant databases at their 
                respective agencies.
                    ``(C) Customer satisfaction surveys.--The Secretary 
                shall create a mechanism for State, local, and tribal 
                law enforcement officers who are consumers of the 
                intelligence products described in subparagraph (A) to 
                fill out an electronic customer satisfaction survey 
                whenever they access such a product. The results of 
                these voluntary surveys should be provided 
                electronically to appropriate personnel of the 
                Department. The results of these customer satisfaction 
                surveys should also be included in an appropriate 
                format in the annual status reports described in 
                subsection (h)(2)(A).
            ``(2) Cultivation of relationships.--CBP and ICE officers 
        and intelligence analysts stationed at border State fusion 
        centers under this section shall actively cultivate 
        relationships with State, local, and tribal law enforcement 
        personnel in border communities in order to satisfy the mission 
        described in paragraph (1), and shall make similar outreach to 
        Canadian and Mexican law enforcement authorities serving 
        neighboring communities across the northern and southern 
        borders. CBP and ICE officers and intelligence analysts 
        stationed at border State fusion centers under this section may 
        also serve as a conduit of border intelligence products from 
        the Department itself and shall ensure that such products are 
        provided to all appropriate law enforcement agencies, 
        departments, and offices in border States.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to require a border State fusion center to participate in the 
Border Intelligence Fusion Center Program.
    ``(g) Reports.--
            ``(1) Development of implementation plan.--
                    ``(A) In general.--Not later than 90 days after the 
                date of the enactment of the Implementing the 9/11 
                Commission Recommendations Act of 2007, the Secretary 
                shall develop a Border Intelligence Fusion Center 
                Program implementation plan and submit to the 
                appropriate congressional committees a copy of such 
                plan. In developing such plan, the Secretary shall 
                consult with State, local, and tribal authorities 
                responsible for border State fusion centers.
                    ``(B) Contents.--The implementation plan should 
                also address the following elements for effective 
                program assessment:
                            ``(i) A clear articulation of the purposes, 
                        goals, and specific objectives for which the 
                        program is being developed.
                            ``(ii) An identification of program 
                        stakeholders and an assessment of their 
                        interests in and expectations of the program.
                            ``(iii) A developed set of quantitative 
                        metrics to measure, to the extent possible, 
                        program output.
                            ``(iv) A developed set of qualitative 
                        instruments (e.g., surveys and expert 
                        interviews) to assess the extent to which 
                        stakeholders believe their needs and 
                        expectations are being met.
            ``(2) Status reports and continuation assessment.--
                    ``(A) Status reports.--
                            ``(i) In general.--The Secretary shall 
                        submit to the appropriate congressional 
                        committees status reports on the Border 
                        Intelligence Fusion Center Program. The reports 
                        shall address the elements described in 
                        paragraph (1)(B). The reports shall also 
                        include the following:
                                    ``(I) A description of the training 
                                programs in place for CBP and ICE 
                                officers and intelligence analysts 
                                participating in the program.
                                    ``(II) A listing of the border 
                                State fusion centers where CBP and ICE 
                                officers and intelligence analysts are 
                                deployed.
                                    ``(III) A representative survey of 
                                State, local, and tribal law 
                                enforcement officers serving border 
                                jurisdictions regarding the specificity 
                                and actionable nature of the border 
                                intelligence provided by CBP and ICE 
                                officers at such fusion centers.
                                    ``(IV) A description of the results 
                                of the customer satisfaction surveys 
                                submitted by users of the products 
                                described in subsection (e)(1).
                            ``(ii) Deadlines.--Status reports under 
                        clause (i) shall be submitted not later than--
                                    ``(I) one year after the date of 
                                the enactment of the Implementing the 
                                9/11 Commission Recommendations Act of 
                                2007; and
                                    ``(II) three and five years after 
                                the date on which the Border 
                                Intelligence Fusion Center Program is 
                                established.
                    ``(B) Continuation assessment.--Not later than the 
                end of the fifth year following the date on which the 
                Border Intelligence Fusion Center Program is 
                established, the Secretary shall submit to the 
                appropriate congressional committees a Border 
                Intelligence Fusion Center Program Continuation 
                Assessment. The continuation assessment shall 
                accomplish the following:
                            ``(i) Recommend whether the program should 
                        continue in its present or some altered form or 
                        not.
                            ``(ii) Provide the reasons for that 
                        recommendation.
                            ``(iii) If the recommendation is that the 
                        program should continue, list and describe 
                        legislative priorities for Congress regarding 
                        the continuation of the program, and provide 
                        recommended appropriations amounts and 
                        justifications for them.
    ``(h) Definition of Border State Fusion Center.--The term `border 
State fusion center' means a fusion center located in the State of 
Washington, Idaho, Montana, North Dakota, Minnesota, Wisconsin, 
Michigan, Ohio, Pennsylvania, New York, Vermont, New Hampshire, Maine, 
California, Arizona, New Mexico, or Texas.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 203 
the following:

``Sec. 204. Border Intelligence Fusion Center Program.''.

     Subtitle C--Homeland Security Information Sharing Enhancement

SEC. 721. SHORT TITLE.

    This subtitle may be cited as the ``Homeland Security Information 
Sharing Enhancement Act of 2007''.

SEC. 722. HOMELAND SECURITY ADVISORY SYSTEM.

    (a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 (6 U.S.C. 121 et seq.) is amended by adding at the end the 
following:

``SEC. 205. HOMELAND SECURITY ADVISORY SYSTEM.

    ``(a) Requirement.--The Under Secretary for Intelligence and 
Analysis shall implement a Homeland Security Advisory System in 
accordance with this section to provide public advisories and alerts 
regarding threats to homeland security, including national, regional, 
local, and economic sector advisories and alerts, as appropriate.
    ``(b) Required Elements.--The Under Secretary, under the System--
            ``(1) shall include, in each advisory and alert regarding a 
        threat, information on appropriate protective measures and 
        countermeasures that may be taken in response to the threat;
            ``(2) shall, whenever possible, limit the scope of each 
        advisory and alert to a specific region, locality, or economic 
        sector believed to be at risk; and
            ``(3) shall not, in issuing any advisory or alert, use 
        color designations as the exclusive means of specifying the 
        homeland security threat conditions that are the subject of the 
        advisory or alert.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end of the items relating to 
subtitle A of title II the following:

``Sec. 205. Homeland Security Advisory System.''.

SEC. 723. HOMELAND SECURITY INFORMATION SHARING.

    (a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 (6 U.S.C. 121 et seq.) is further amended by adding at the 
end the following:

``SEC. 206. HOMELAND SECURITY INFORMATION SHARING.

    ``(a) Information Sharing Environment.--Consistent with section 
1016 of the National Intelligence Reform and Terrorism Prevention Act 
of 2004 (6 U.S.C. 485) and in accordance with all other applicable laws 
and regulations, the Secretary shall integrate and standardize the 
information of the intelligence components of the Department into a 
Department information sharing environment, to be administered by the 
Under Secretary for Intelligence and Analysis.
    ``(b) Information Sharing and Knowledge Management Officers.--For 
each intelligence component of the Department, the Secretary shall 
designate an information sharing and knowledge management officer who 
shall report to the Under Secretary for Intelligence and Analysis with 
respect to coordinating the different systems used in the Department to 
gather and disseminate homeland security information.
    ``(c) State, Local, and Private-Sector Sources of Information.--
            ``(1) Establishment of business processes.--The Under 
        Secretary for Intelligence and Analysis shall establish 
        Department-wide procedures for the review and analysis of 
        information gathered from State, local, tribal, and private-
        sector sources and, as appropriate, integrate such information 
        into the information gathered by the Department and other 
        department and agencies of the Federal Government.
            ``(2) Feedback.--The Secretary shall develop mechanisms to 
        provide analytical and operational feedback to any State, 
        local, tribal, and private-sector entities that gather 
        information and provide such information to the Secretary.
    ``(d) Training and Evaluation of Employees.--
            ``(1) Training.--The Under Secretary shall provide to 
        employees of the Department opportunities for training and 
        education to develop an understanding of the definition of 
        homeland security information, how information available to 
        them as part of their duties might qualify as homeland security 
        information, and how information available to them is relevant 
        to the Office of Intelligence and Analysis.
            ``(2) Evaluations.--The Under Secretary shall, on an 
        ongoing basis, evaluate how employees of the Office of 
        Intelligence and Analysis and the intelligence components of 
        the Department are utilizing homeland security information and 
        participating in the Department information sharing 
        environment.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by adding at the end of the items relating 
to such subtitle the following:

``Sec. 206. Homeland security information sharing.''.
    (c) Establishment of Comprehensive Information Technology Network 
Architecture.--
            (1) In general.--Subtitle A of title II of the Homeland 
        Security Act of 2002 (6 U.S.C. 121 et seq.) is further amended 
        by adding at the end the following new section:

``SEC. 207. COMPREHENSIVE INFORMATION TECHNOLOGY NETWORK ARCHITECTURE.

    ``(a) Establishment.--The Secretary, acting through the Chief 
Intelligence Officer, shall establish a comprehensive information 
technology network architecture for the Office of Intelligence and 
Analysis.
    ``(b) Network Model.--The comprehensive information technology 
network architecture established under subsection (a) shall, to the 
extent possible, incorporate the approaches, features, and functions of 
the network proposed by the Markle Foundation in reports issued in 
October 2002 and December 2003, known as the System-wide Homeland 
Security Analysis and Resource Exchange (SHARE) Network.
    ``(c) Comprehensive Information Technology Network Architecture 
Defined.--the term `comprehensive information technology network 
architecture' means an integrated framework for evolving or maintaining 
existing information technology and acquiring new information 
technology to achieve the strategic goals and information resources 
management goals of the Office of Intelligence and Analysis.''.
            (2) Clerical amendment.--The table of contents in section 
        1(b) of such Act is further amended by adding at the end of the 
        items relating to such subtitle the following:

``Sec. 207. Comprehensive information technology network 
                            architecture.''.
            (3) Reports.--
                    (A) Report on implementation of plan.--Not later 
                than 360 days after the date of the enactment of this 
                Act, the Secretary of Homeland Security shall submit to 
                the Committee on Homeland Security and Governmental 
                Affairs of the Senate and the Committee on Homeland 
                Security of the House of Representatives a report 
                containing a plan to implement the comprehensive 
                information technology network architecture for the 
                Office of Intelligence and Analysis of the Department 
                of Homeland Security required under section 205 of the 
                Homeland Security Act of 2002, as added by paragraph 
                (1). Such report shall include the following:
                            (i) Priorities for the development of the 
                        comprehensive information technology network 
                        architecture and a rationale for such 
                        priorities.
                            (ii) An explanation of how the various 
                        components of the comprehensive information 
                        technology network architecture will work 
                        together and interconnect.
                            (iii) A description of the technology 
                        challenges that the Office of Intelligence and 
                        Analysis will face in implementing the 
                        comprehensive information technology network 
                        architecture.
                            (iv) A description of technology options 
                        that are available or are in development that 
                        may be incorporated into the comprehensive 
                        technology network architecture, the 
                        feasibility of incorporating such options, and 
                        the advantages and disadvantages of doing so.
                            (v) An explanation of any security 
                        protections to be developed as part of the 
                        comprehensive information technology network 
                        architecture.
                            (vi) A description of any safeguards for 
                        civil liberties and privacy to be built into 
                        the comprehensive information technology 
                        network architecture.
                            (vii) An operational best practices plan.
                    (B) Progress report.--Not later than 180 days after 
                the date on which the report is submitted under 
                subparagraph (A), the Secretary of Homeland Security 
                shall submit to the Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Homeland Security of the House of Representatives a 
                report on the progress of the Secretary in developing 
                the comprehensive information technology network 
                architecture required under section 205 of the Homeland 
                Security Act of 2002, as added by paragraph (1).
    (d) Intelligence Component Defined.--Section 2 of the Homeland 
Security Act of 2002 (6 U.S.C. 101) is further amended by adding at the 
end the following new paragraph:
            ``(18) The term `intelligence component of the Department' 
        means any directorate, agency, or element of the Department 
        that gathers, receives, analyzes, produces, or disseminates 
        homeland security information except--
                    ``(A) a directorate, agency, or element of the 
                Department that is required to be maintained as a 
                distinct entity under this Act; or
                    ``(B) any personnel security, physical security, 
                document security, or communications security program 
                within any directorate, agency, or element of the 
                Department.''.

     Subtitle D--Homeland Security Information Sharing Partnerships

SEC. 731. SHORT TITLE.

    This subtitle may be cited as the ``Homeland Security Information 
Sharing Partnerships Act of 2007''.

SEC. 732. STATE, LOCAL, AND REGIONAL INFORMATION FUSION CENTER 
              INITIATIVE.

    (a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 (6 U.S.C. 121 et seq.) is further is amended by adding at 
the end the following:

``SEC. 208. STATE, LOCAL, AND REGIONAL FUSION CENTER INITIATIVE.

    ``(a) Establishment.--The Secretary shall establish a State, Local, 
and Regional Fusion Center Initiative to establish partnerships with 
State, local, and regional fusion centers.
    ``(b) Duties.--Through the State, Local, and Regional Fusion Center 
Initiative, the Secretary shall--
            ``(1) coordinate with the principal official of each State, 
        local, or regional fusion center and the official designated as 
        the Homeland Security Advisor of the State;
            ``(2) provide Department operational and intelligence 
        advice and assistance to State, local, and regional fusion 
        centers;
            ``(3) support efforts to include State, local, and regional 
        fusion centers into efforts to establish an information sharing 
        environment (as defined under section 1016(a)(2) of the 
        Intelligence Reform and Terrorism Prevention Act of 2004 (6 
        U.S.C. 485(a)(2))) in accordance with all applicable laws and 
        regulations;
            ``(4) conduct table-top and live training exercises to 
        regularly assess the capability of individual and regional 
        networks of State, local, and regional fusion centers to 
        integrate the efforts of such networks with the efforts of the 
        Department;
            ``(5) coordinate with other relevant Federal entities 
        engaged in homeland security-related activities;
            ``(6) provide analytic and reporting advice and assistance 
        to State, local, and regional fusion centers;
            ``(7) review homeland security information gathered by 
        State, local, and regional fusion centers and incorporate 
        relevant information with homeland security information of the 
        Department;
            ``(8) provide management assistance to State, local, and 
        regional fusion centers;
            ``(9) serve as a point of contact to ensure the 
        dissemination of relevant homeland security information.
            ``(10) facilitate close communication and coordination 
        between State, local, and regional fusion centers and the 
        Department;
            ``(11) provide State, local, and regional fusion centers 
        with expertise on Department resources and operations;
            ``(12) provide training to State, local, and regional 
        fusion centers and encourage such fusion centers to participate 
        in terrorist threat-related exercises conducted by the 
        Department; and
            ``(13) carry out such other duties as the Secretary 
        determines are appropriate.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by adding at the end of the items relating 
to such subtitle the following:

``Sec. 208. State, Local, and Regional Information Fusion Center 
                            Initiative.''.
    (c) Reports.--
            (1) Concept of operations.--Not later than 90 days after 
        the date of the enactment of this Act and before the State, 
        Local, and Regional Fusion Center Initiative under section 208 
        of the Homeland Security Act of 2002, as added by subsection 
        (a), has been implemented, the Secretary shall submit to the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate and the Committee on Homeland Security of the House of 
        Representatives a report that contains a concept of operations 
        for the Initiative, which shall include a privacy and civil 
        liberties impact assessment.
            (2) Privacy and civil liberties.--
                    (A) Review of concept of operations.--Not later 
                than 180 days after the date on which the report under 
                paragraph (1) is submitted, the Privacy Officer of the 
                Department of Homeland Security and the Officer for 
                Civil Rights and Civil Liberties of the Department of 
                Homeland Security shall review the privacy and civil 
                liberties implications of the Initiative and the 
                concept of operations and report any concerns to the 
                Secretary of Homeland Security and the Under Secretary 
                of Homeland Security for Intelligence and Analysis. The 
                Secretary may not implement the Initiative until the 
                Privacy Officer and the Officer for Civil Rights and 
                Civil Liberties have certified that any privacy or 
                civil liberties concerns have been addressed.
                    (B) Review of privacy impact.--Under the authority 
                of section 222(5) of the Homeland Security Act of 2002 
                (6 U.S.C. 142(5)), not later than one year after the 
                date on which the State, Local, and Regional Fusion 
                Center Initiative is implemented, the Privacy Officer 
                of the Department of Homeland Security, in consultation 
                with the Officer for Civil Rights and Civil Liberties 
                of the Department of Homeland Security, shall submit to 
                Congress, the Secretary of Homeland Security, and the 
                Under Secretary of Homeland Security for Intelligence 
                and Analysis a report on the privacy and civil 
                liberties impact of the Initiative.

SEC. 733. HOMELAND SECURITY INFORMATION SHARING FELLOWS PROGRAM.

    (a) Establishment of Program.--Subtitle A of title II of the 
Homeland Security Act of 2002 (6 U.S.C. 121 et seq.) is further amended 
by adding at the end the following:

``SEC. 209. HOMELAND SECURITY INFORMATION SHARING FELLOWS PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary, acting through the Under 
        Secretary for Intelligence and Analysis, shall establish a 
        fellowship program in accordance with this section for the 
        purpose of--
                    ``(A) detailing State, local, and tribal law 
                enforcement officers and intelligence analysts to the 
                Department to participate in the work of the Office of 
                Intelligence and Analysis in order to become familiar 
                with--
                            ``(i) the mission and capabilities of the 
                        Office of Intelligence and Analysis; and
                            ``(ii) the role, programs, products, and 
                        personnel of the Office of Intelligence and 
                        Analysis; and
                    ``(B) promoting information sharing between the 
                Department and State, local, and tribal law enforcement 
                officers and intelligence analysts by stationing such 
                officers and analysts in order to--
                            ``(i) serve as a point of contact in the 
                        Department to assist in the representation of 
                        State, local, and tribal homeland security 
                        information needs;
                            ``(ii) identify homeland security 
                        information of interest to State, local, and 
                        tribal law enforcement officers and 
                        intelligence analysts; and
                            ``(iii) assist Department analysts in 
                        preparing and disseminating terrorism-related 
                        products that are tailored to State, local, and 
                        tribal law enforcement officers and 
                        intelligence analysts and designed to thwart 
                        terrorist attacks.
            ``(2) Program name.--The program under this section shall 
        be known as the `Homeland Security Information Sharing Fellows 
        Program'.
    ``(b) Eligibility.--
            ``(1) In general.--In order to be eligible for selection as 
        an Information Sharing Fellow under the program, an individual 
        must--
                    ``(A) have homeland security-related 
                responsibilities or law enforcement-related 
                responsibilities;
                    ``(B) be eligible for an appropriate national 
                security clearance;
                    ``(C) possess a valid need for access to classified 
                information, as determined by the Under Secretary for 
                Intelligence and Analysis;
                    ``(D) be an employee of an eligible entity; and
                    ``(E) have undergone appropriate privacy and civil 
                liberties training that is developed, supported, or 
                sponsored by the Privacy Officer and the Officer for 
                Civil Rights and Civil Liberties in partnership with 
                the Privacy and Civil Liberties Oversight Board.
            ``(2) Eligible entities.--For purposes of this subsection, 
        the term `eligible entity' means--
                    ``(A) a State, local, or regional fusion center;
                    ``(B) a State or local law enforcement or other 
                government entity that serves a major metropolitan 
                area, as determined by the Secretary;
                    ``(C) a State or local law enforcement or other 
                government entity that serves a suburban or rural area, 
                as determined by the Secretary;
                    ``(D) a State or local law enforcement or other 
                government entity with port responsibilities, as 
                determined by the Secretary;
                    ``(E) a State or local law enforcement or other 
                government entity with border responsibilities, as 
                determined by the Secretary;
                    ``(F) a State or local law enforcement or other 
                government entity with agricultural responsibilities, 
                as determined by the Secretary;
                    ``(G) a tribal law enforcement or other authority; 
                or
                    ``(H) such other entity as the Secretary determines 
                is appropriate.
    ``(c) Optional Participation.--No State, local, or tribal law 
enforcement or other government entity shall be required to participate 
in the Homeland Security Information Sharing Fellows Program.
    ``(d) Procedures for Nomination and Selection.--
            ``(1) In general.--The Under Secretary shall establish 
        procedures to provide for the nomination and selection of 
        individuals to participate in the Homeland Security Information 
        Sharing Fellows Program.
            ``(2) Limitations.--The Under Secretary shall--
                    ``(A) select law enforcement officers and 
                intelligence analysts representing a broad cross-
                section of State, local, and tribal agencies; and
                    ``(B) ensure that the number of Information Sharing 
                Fellows selected does not impede the activities of the 
                Office of Intelligence and Analysis.
    ``(e) Length of Service.--Information Sharing Fellows shall serve 
for a reasonable period of time, as determined by the Under Secretary. 
Such period of time shall be sufficient to advance the information-
sharing goals of the Under Secretary and encourage participation by as 
many qualified nominees as possible.
    ``(f) Condition.--As a condition of selecting an individual as an 
Information Sharing Fellow under the program, the Under Secretary shall 
require that the individual's employer agree to continue to pay the 
individual's salary and benefits during the period for which the 
individual is detailed.
    ``(g) Stipend.--During the period for which an individual is 
detailed under the program, the Under Secretary shall, subject to the 
availability of appropriations provide to the individual a stipend to 
cover the individual's reasonable living expenses for that period.
    ``(h) Security Clearances.--If an individual selected for a 
fellowship under the Information Sharing Fellows Program does not 
possess the appropriate security clearance, the Under Secretary shall 
ensure that security clearance processing is expedited for such 
individual and shall ensure that each such Information Sharing Fellow 
has obtained the appropriate security clearance prior to participation 
in the Program.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by adding at the end of the items relating 
to such subtitle the following:

``Sec. 209. Homeland Security Information Sharing Fellows Program.''.
    (c) Reports.--
            (1) Concept of operations.--Not later than 90 days after 
        the date of the enactment of this Act and before the 
        implementation of the Homeland Security Information Sharing 
        Fellows Program under section 209 of the Homeland Security Act 
        of 2002, as added by subsection (a), the Secretary shall submit 
        to the Committee on Homeland Security and Governmental Affairs 
        of the Senate and the Committee on Homeland Security of the 
        House of Representatives a report that contains a concept of 
        operations for the Program, which shall include a privacy and 
        civil liberties impact assessment.
            (2) Privacy and civil liberties.--
                    (A) Review of concept of operations.--Not later 
                than 180 days after the date on which the report under 
                paragraph (1) is submitted, the Privacy Officer of the 
                Department of Homeland Security and the Officer for 
                Civil Rights and Civil Liberties of the Department of 
                Homeland Security shall review the privacy and civil 
                liberties implications of the Program and the concept 
                of operations and report any concerns to the Secretary 
                of Homeland Security and the Under Secretary of 
                Homeland Security for Intelligence and Analysis. The 
                Secretary may not implement the Program until the 
                Privacy Officer and the Officer for Civil Rights and 
                Civil Liberties have certified that any privacy or 
                civil liberties concerns have been addressed.
                    (B) Review of privacy impact.--Under the authority 
                of section 222(5) of the Homeland Security Act of 2002 
                (6 U.S.C. 142(5)), not later than one year after the 
                date on which the Homeland Security Information Sharing 
                Fellows Program is implemented, the Privacy Officer of 
                the Department of Homeland Security, in consultation 
                with the Officer for Civil Rights and Civil Liberties 
                of the Department of Homeland Security, shall submit to 
                Congress, the Secretary of Homeland Security, and the 
                Under Secretary of Homeland Security for Intelligence 
                and Analysis a report on the privacy and civil 
                liberties impact of the Program.

   Subtitle E--Homeland Security Intelligence Offices Reorganization

SEC. 741. DEPARTMENTAL REORGANIZATION.

    (a) Redesignation of Directorate for Information Analysis and 
Infrastructure Protection.--Section 201 of the Homeland Security Act of 
2002 (6 U.S.C. 121) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``a Directorate for Information 
                Analysis and Infrastructure Protection'' and inserting 
                ``an Office of Intelligence and Analysis''; and
                    (B) by striking ``an Under Secretary for 
                Information Analysis and Infrastructure Protection'' 
                and inserting ``an Under Secretary for Intelligence and 
                Analysis'';
            (2) by striking subsection (b) and redesignating 
        subsections (c) through (g) as subsections (b) through (f), 
        respectively;
            (3) in subsection (b), as so redesignated--
                    (A) by striking ``and infrastructure protection'' 
                before ``are carried out'' and inserting ``and 
                intelligence''; and
                    (B) by striking ``the Under Secretary for 
                Information Analysis and Infrastructure Protection'' 
                and inserting ``the Under Secretary for Intelligence 
                and Analysis'';
            (4) in subsection (c), as so redesignated--
                    (A) by striking ``the Under Secretary for 
                Information Analysis and Infrastructure Protection'' 
                and inserting ``the Under Secretary for Intelligence 
                and Analysis'';
                    (B) by striking paragraphs (2), (5), and (6), and 
                redesignating paragraphs (3) through (17) as paragraphs 
                (2) through (14), respectively;
                    (C) by redesignating paragraphs (18) and (19) as 
                paragraphs (20) and (21), respectively;
                    (D) in paragraph (2), as so redesignated, by 
                striking ``To integrate'' and inserting ``To 
                participate in the integration of'';
                    (E) in paragraph (14), as so redesignated, by 
                inserting ``the Assistant Secretary for Infrastructure 
                Protection and'' after ``coordinate with''; and
                    (F) by inserting after paragraph (14), as 
                redesignated by subparagraph (B), the following new 
                paragraphs:
            ``(15) To coordinate and enhance integration among 
        intelligence components of the Department.
            ``(16) To establish intelligence priorities, policies, 
        processes, standards, guidelines, and procedures for the 
        Department.
            ``(17) To establish a structure and process to support the 
        missions and goals of the intelligence components of the 
        Department.
            ``(18) To ensure that, whenever possible--
                    ``(A) the Under Secretary for Intelligence and 
                Analysis produces and disseminates reports and analytic 
                products based on open-source information that do not 
                require a national security classification under 
                applicable law; and
                    ``(B) such unclassified open source reports are 
                produced and disseminated contemporaneously with 
                reports or analytic products concerning the same or 
                similar information that the Under Secretary for 
                Intelligence and Analysis produces and disseminates in 
                a classified format.
            ``(19) To establish within the Office of Intelligence 
        Analysis an Internal Continuity of Operations (COOP) Plan 
        that--
                    ``(A) assures that the capability exists to 
                continue uninterrupted operations during a wide range 
                of potential emergencies, including localized acts of 
                nature, accidents, and technological or attack-related 
                emergencies, that is maintained at a high level of 
                readiness and is capable of implementation with and 
                without warning; and
                    ``(B) includes plans and procedures governing 
                succession to office within the Office of Intelligence 
                and Analysis, including--
                            ``(i) emergency delegations of authority 
                        (where permissible, and in accordance with 
                        applicable law);
                            ``(ii) the safekeeping of vital resources, 
                        facilities, and records;
                            ``(iii) the improvisation or emergency 
                        acquisition of vital resources necessary for 
                        the performance of operations of the Office; 
                        and
                            ``(iv) the capability to relocate essential 
                        personnel and functions to and to sustain the 
                        performance of the operations of the Office at 
                        an alternate work site until normal operations 
                        can be resumed.'';
            (5) in subsections (d) and (e), as redesignated by 
        subsection (a)(2), by striking ``Directorate'' each place it 
        appears and inserting ``Office''; and
            (6) in subsection (f), as redesignated by subsection 
        (a)(2)--
                    (A) by striking ``the Under Secretary for 
                Information Analysis and Infrastructure Protection'' 
                and inserting ``the Under Secretary for Intelligence 
                and Analysis and the Assistant Secretary for 
                Infrastructure Protection''; and
                    (B) by inserting ``and section 203'' after ``under 
                this section''.
    (b) Technical and Conforming Amendments.--
            (1) Homeland security act of 2002.--The Homeland Security 
        Act of 2002 (6 U.S.C. 101 et seq.) is amended--
                    (A) in section 103(a), by adding at the end the 
                following new paragraph:
            ``(10) An Under Secretary for Intelligence and Analysis.'';
                    (B) in section 223, by striking ``Under Secretary 
                for Information Analysis and Infrastructure 
                Protection'' and inserting ``Under Secretary for 
                Intelligence and Analysis, in cooperation with the 
                Assistant Secretary for Infrastructure Protection'';
                    (C) in section 224, by striking ``Under Secretary 
                for Information Analysis and Infrastructure 
                Protection'' and inserting ``Assistant Secretary for 
                Infrastructure Protection''; and
                    (D) in section 302(3), by striking ``Under 
                Secretary for Information Analysis and Infrastructure 
                Protection'' and inserting ``Under Secretary for 
                Intelligence and Analysis and the Assistant Secretary 
                for Infrastructure Protection''.
            (2) Headings.--
                    (A) Section 201.--The heading for section 201 of 
                such Act is amended to read as follows:

``SEC. 201. OFFICE OF INTELLIGENCE AND ANALYSIS.''.

                    (B) Section 201(a).--The heading for subsection (a) 
                of section 201 of such Act is amended to read as 
                follows:
    ``(a) Under Secretary of Homeland Security for Intelligence and 
Analysis.--''.
                    (C) Section 201(b).--The heading for subsection (b) 
                of section 201 of such Act, as redesignated by 
                subsection (a)(2), is amended to read as follows:
    ``(b) Discharge of Intelligence and Analysis.--''.
            (3) National security act of 1947.--Section 106(b)(2)(I) of 
        the National Security Act of 1947 (50 U.S.C. 403-6) is amended 
        to read as follows:
                    ``(I) The Under Secretary for Intelligence and 
                Analysis of the Department of Homeland Security.''.
            (4) Intelligence reform and terrorism prevention act of 
        2004.--Section 7306(a)(1) of the Intelligence Reform and 
        Terrorism Prevention Act of 2004 (Public Law 108-458; 118 Stat. 
        3848) is amended by striking ``Under Secretary for Information 
        Analysis and Infrastructure Protection'' and inserting ``Under 
        Secretary for Intelligence and Analysis''.

SEC. 742. INTELLIGENCE COMPONENTS OF DEPARTMENT OF HOMELAND SECURITY.

    (a) Responsibilities.--Subtitle A of title II of the Homeland 
Security Act of 2002 (6 U.S.C. 201 et seq.) is further amended by 
adding at the end the following new section:

``SEC. 210. INTELLIGENCE COMPONENTS.

    ``(a) Responsibilities.--Subject to the direction and control of 
the Secretary, the responsibilities of the head of each intelligence 
component of the Department are as follows:
            ``(1) To ensure that duties related to the acquisition, 
        analysis, and dissemination of homeland security information 
        are carried out effectively and efficiently in support of the 
        Under Secretary for Intelligence and Analysis.
            ``(2) To support and implement the goals established in 
        cooperation with the Under Secretary for Intelligence and 
        Analysis.
            ``(3) To incorporate the input of the Under Secretary for 
        Intelligence and Analysis with respect to performance 
        appraisals, bonus or award recommendations, pay adjustments, 
        and other forms of commendation.
            ``(4) To coordinate with the Under Secretary for 
        Intelligence and Analysis in the recruitment and selection of 
        intelligence officials of the intelligence component.
            ``(5) To advise and coordinate with the Under Secretary for 
        Intelligence and Analysis on any plan to reorganize or 
        restructure the intelligence component that would, if 
        implemented, result in realignments of intelligence functions.
            ``(6) To ensure that employees of the intelligence 
        component have knowledge of and comply with the programs and 
        policies established by the Under Secretary for Intelligence 
        and Analysis and other appropriate officials of the Department 
        and that such employees comply with all applicable laws and 
        regulations.
            ``(7) To perform such other duties relating to such 
        responsibilities as the Secretary may provide.
    ``(b) Training of Employees.--The Secretary shall provide training 
and guidance for employees, officials, and senior executives of the 
intelligence components of the Department to develop knowledge of laws, 
regulations, operations, policies, procedures, and programs that are 
related to the functions of the Department relating to the handling, 
analysis, dissemination, and acquisition of homeland security 
information.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by adding at the end of the items relating 
to such subtitle the following:

``Sec. 210. Intelligence components.''.

SEC. 743. OFFICE OF INFRASTRUCTURE PROTECTION.

    (a) Establishment.--Subtitle A of title II of the Homeland Security 
Act of 2002 (6 U.S.C. 201 et seq.) is further amended by adding at the 
end the following new section:

``SEC. 210A. OFFICE OF INFRASTRUCTURE PROTECTION.

    ``(a) Assistant Secretary for Infrastructure Protection.--
            ``(1) In general.--There shall be in the Department an 
        Office of Infrastructure Protection headed by an Assistant 
        Secretary for Infrastructure Protection.
            ``(2) Responsibilities.--The Assistant Secretary shall 
        assist the Secretary in discharging the responsibilities 
        assigned by the Secretary.
    ``(b) Discharge of Infrastructure Protection.--The Secretary shall 
ensure that the responsibilities of the Department regarding 
infrastructure protection are carried out through the Assistant 
Secretary for Infrastructure Protection.
    ``(c) Responsibilities of Assistant Secretary.--Subject to the 
direction and control of the Secretary, the responsibilities of the 
Assistant Secretary for Infrastructure Protection shall be as follows:
            ``(1) To carry out comprehensive assessments of the 
        vulnerabilities of the key resources and critical 
        infrastructure of the United States, including the performance 
        of risk assessments to determine the risks posed by particular 
        types of terrorist attacks within the United States (including 
        an assessment of the probability of success of such attacks and 
        the feasibility and potential efficacy of various 
        countermeasures to such attacks).
            ``(2) To participate in the integration of relevant 
        information, analyses, and vulnerability assessments (whether 
        such information, analyses, or assessments are provided or 
        produced by the Department or others) in order to identify 
        priorities for protective and support measures by the 
        Department, other agencies of the Federal Government, State and 
        local government agencies and authorities, the private sector, 
        and other entities.
            ``(3) To develop a comprehensive national plan for securing 
        the key resources and critical infrastructure of the United 
        States, including power production, generation, and 
        distribution systems, information technology and 
        telecommunications systems (including satellites), electronic 
        financial and property record storage and transmission systems, 
        emergency preparedness communications systems, and the physical 
        and technological assets that support such systems.
            ``(4) To recommend measures necessary to protect the key 
        resources and critical infrastructure of the United States in 
        coordination with other agencies of the Federal Government and 
        in cooperation with State and local government agencies and 
        authorities, the private sector, and other entities.
            ``(5) To coordinate with the Under Secretary for 
        Intelligence and Analysis and elements of the intelligence 
        community and with Federal, State, and local law enforcement 
        agencies, and the private sector, as appropriate.
            ``(6) To perform such other duties as assigned by the 
        Secretary under this Act.
    ``(d) Staff.--
            ``(1) In general.--The Secretary shall provide the Office 
        with a staff having appropriate expertise and experience to 
        assist the Assistant Secretary in discharging responsibilities 
        under this section.
            ``(2) Private sector staff.--Staff under this subsection 
        may include staff from the private sector.
            ``(3) Security clearances.--Staff under this subsection 
        shall possess security clearances appropriate for their work 
        under this section.
    ``(e) Detail of Personnel.--
            ``(1) In general.--In order to assist the Office in 
        discharging responsibilities under this section, personnel of 
        other Federal agencies may be detailed to the Department for 
        the performance of analytic functions and related duties.
            ``(2) Cooperative agreements.--The Secretary and the head 
        of the agency concerned may enter into cooperative agreements 
        for the purpose of detailing personnel under this subsection.
            ``(3) Basis.--The detail of personnel under this subsection 
        may be on a reimbursable or non-reimbursable basis.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by adding at the end of the items relating 
to such subtitle the following:

``Sec. 210A. Office of Infrastructure Protection.''.

 TITLE VIII--PROTECTING PRIVACY AND CIVIL LIBERTIES WHILE EFFECTIVELY 
                           FIGHTING TERRORISM

        Subtitle A--Privacy and Civil Liberties Oversight Boards

SEC. 801. SHORT TITLE.

    This subtitle may be cited as the ``Protection of Civil Liberties 
Act''.

SEC. 802. FINDINGS.

    Congress finds the following:
            (1) On July 22, 2004 the National Commission on Terrorist 
        Attacks Upon the United States issued a report that included 41 
        specific recommendations to help prevent future terrorist 
        attacks, including details of a global strategy and government 
        reorganization necessary to implement that strategy.
            (2) One of the recommendations focused on the protections 
        of civil liberties. Specifically the following recommendation 
        was made: ``At this time of increased and consolidated 
        government authority, there should be a board within the 
        executive branch to oversee adherence to the guidelines we 
        recommend and the commitment the government makes to defend our 
        civil liberties.''.
            (3) The report also states that ``the choice between 
        security and liberty is a false choice, as nothing is more 
        likely to endanger America's liberties than the success of a 
        terrorist attack at home. Our History has shown that the 
        insecurity threatens liberty at home. Yet if our liberties are 
        curtailed, we lose the values that we are struggling to 
        defend.''.
            (4) On December 17, 2004, Public Law 108-458, the National 
        Intelligence Reform Act, was signed into law. This law created 
        a civil liberties board that does not have the authority 
        necessary to protect civil liberties.

SEC. 803. MAKING THE PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD 
              INDEPENDENT.

    Section 1061(b) of the Intelligence Reform and Terrorism Prevention 
Act of 2004 (5 U.S.C. 601 note) is amended by striking ``within the 
Executive Office of the President'' and inserting ``as an independent 
agency within the Executive branch''.

SEC. 804. REQUIRING ALL MEMBERS OF THE PRIVACY AND CIVIL LIBERTIES 
              OVERSIGHT BOARD BE CONFIRMED BY THE SENATE.

    Subsection (e) of section 1061 of the Intelligence Reform and 
Terrorism Prevention Act of 2004 (5 U.S.C. 601 note) is amended to read 
as follows:
    ``(e) Membership.--
            ``(1) Members.--The Board shall be composed of a full-time 
        chairman and 4 additional members, who shall be appointed by 
        the President by no later than 6 months after the date of the 
        enactment of the Protection of Civil Liberties Act, by and with 
        the advice and consent of the Senate, which shall move 
        expeditiously following each nomination.
            ``(2) Qualifications.--Members of the Board shall be 
        selected solely on the basis of their professional 
        qualifications, achievements, public stature, expertise in 
        civil liberties and privacy, and relevant experience, and 
        without regard to political affiliation, but in no event shall 
        more than 3 members of the Board be members of the same 
        political party. The President shall, before appointing an 
        individual who is not a member of the same political party as 
        the President consult with the leadership of that party, if 
        any, in the Senate and House of Representatives.
            ``(3) Incompatible office.--An individual appointed to the 
        Board may not, while serving on the Board, be an elected 
        official, officer, or employee of the Federal Government, other 
        than in the capacity as a member of the Board.
            ``(4) Term.--Each member of the Board shall serve a term of 
        six years, except that--
                    ``(A) a member appointed to a term of office after 
                the commencement of such term may serve under such 
                appointment only for the remainder of such term;
                    ``(B) upon the expiration of the term of office of 
                a member, the member shall continue to serve until the 
                member's successor has been appointed and qualified, 
                except that no member may serve under this 
                subparagraph--
                            ``(i) for more than 60 days when Congress 
                        is in session unless a nomination to fill the 
                        vacancy shall have been submitted to the 
                        Senate; or
                            ``(ii) after the adjournment sine die of 
                        the session of the Senate in which such 
                        nomination is submitted; and
                    ``(C) the members initially appointed under this 
                subsection shall serve terms of two, three, four, five, 
                and six years, respectively, from the effective date of 
                this Act, with the term of each such member to be 
                designated by the President.
            ``(5) Quorum and meetings.--The Board shall meet upon the 
        call of the chairman or a majority of its members. Three 
        members of the Board shall constitute a quorum.''.

SEC. 805. SUBPOENA POWER FOR THE PRIVACY AND CIVIL LIBERTIES OVERSIGHT 
              BOARD.

    Section 1061(d) of the Intelligence Reform and Terrorism Prevention 
Act of 2004 (5 U.S.C. 601 note) is amended--
            (1) so that subparagraph (D) of paragraph (1) reads as 
        follows:
                    ``(D) require, by subpoena issued at the direction 
                of a majority of the members of the Board, persons 
                (other than departments, agencies, and elements of the 
                executive branch) to produce any relevant information, 
                documents, reports, answers, records, accounts, papers, 
                and other documentary or testimonial evidence.''; and
            (2) so that paragraph (2) reads as follows:
            ``(2) Enforcement of subpoena.--In the case of contumacy or 
        failure to obey a subpoena issued under paragraph (1)(D), the 
        United States district court for the judicial district in which 
        the subpoenaed person resides, is served, or may be found may 
        issue an order requiring such person to produce the evidence 
        required by such subpoena.''.

SEC. 806. REPORTING REQUIREMENTS.

    (a) Duties of Board.--Paragraph (4) of section 1061(c) of the 
Intelligence Reform and Terrorism Prevention Act of 2004 (5 U.S.C. 601 
note) is amended to read as follows:
            ``(4) Reports.--
                    ``(A) Receipt, review, and submission.--
                            ``(i) In general.--The Board shall--
                                    ``(I) receive and review reports 
                                from privacy officers and civil 
                                liberties officers described in section 
                                212; and
                                    ``(II) periodically submit, not 
                                less than semiannually, reports to the 
                                appropriate congressional committees, 
                                including the Committees on the 
                                Judiciary of the Senate and the House 
                                of Representatives, the Committee on 
                                Homeland Security and Governmental 
                                Affairs of the Senate, the Committee on 
                                Oversight and Government Reform of the 
                                House of Representatives, the Select 
                                Committee on Intelligence of the 
                                Senate, and the Permanent Select 
                                Committee on Intelligence of the House 
                                of Representatives, the Committee on 
                                Homeland Security of the House of 
                                Representatives, and to the President.
                        Such reports shall be in unclassified form to 
                        the greatest extent possible, with a classified 
                        annex where necessary.
                            ``(ii) Contents.--Not less than 2 reports 
                        the Board submits each year under clause 
                        (i)(II) shall include--
                                    ``(I) a description of the major 
                                activities of the Board during the 
                                preceding period;
                                    ``(II) information on the findings, 
                                conclusions, and recommendations of the 
                                Board resulting from its advice and 
                                oversight functions under subsection 
                                (c);
                                    ``(III) the minority views on any 
                                findings, conclusions, and 
                                recommendations of the Board resulting 
                                from its advice and oversight functions 
                                under subsection (c); and
                                    ``(IV) each proposal reviewed by 
                                the Board under subsection (c)(1) that 
                                the Board advised against implementing, 
                                but that notwithstanding such advice, 
                                was implemented.
                    ``(B) Informing the public.--The Board shall--
                            ``(i) make its reports, including its 
                        reports to Congress, available to the public to 
                        the greatest extent that is consistent with the 
                        protection of classified information and 
                        applicable law; and
                            ``(ii) hold public hearings and otherwise 
                        inform the public of its activities, as 
                        appropriate and in a manner consistent with the 
                        protection of classified information and 
                        applicable law.''.
    (b) Privacy and Civil Liberties Officers.--
            (1) Designation of officers.--Section 1062 of the 
        Intelligence Reform and Terrorism Prevention Act of 2004 (118 
        Stat. 3688) is amended to read as follows:

``SEC. 1062. PRIVACY AND CIVIL LIBERTIES OFFICERS.

    ``(a) Designation and Functions.--The Attorney General, the 
Secretary of Defense, the Secretary of State, the Secretary of the 
Treasury, the Secretary of Health and Human Services, the Secretary of 
Homeland Security, the National Intelligence Director, the Director of 
the Central Intelligence Agency, any other entity within the 
intelligence community (as defined in section 3 of the National 
Security Act of 1947 (50 U.S.C. 401a)), and the head of any other 
department, agency, or element of the executive branch designated by 
the Privacy and Civil Liberties Oversight Board to be appropriate for 
coverage under this section shall designate not less than 1 senior 
officer to--
            ``(1) assist the head of such department, agency, or 
        element and other officials of such department, agency, or 
        element in appropriately considering privacy and civil 
        liberties concerns when such officials are proposing, 
        developing, or implementing laws, regulations, policies, 
        procedures, or guidelines related to efforts to protect the 
        Nation against terrorism;
            ``(2) periodically investigate and review department, 
        agency, or element actions, policies, procedures, guidelines, 
        and related laws and their implementation to ensure that such 
        department, agency, or element is adequately considering 
        privacy and civil liberties in its actions;
            ``(3) ensure that such department, agency, or element has 
        adequate procedures to receive, investigate, respond to, and 
        redress complaints from individuals who allege such department, 
        agency, or element has violated their privacy or civil 
        liberties; and
            ``(4) in providing advice on proposals to retain or enhance 
        a particular governmental power the officer shall consider 
        whether such department, agency, or element has established--
                    ``(A) that the power actually enhances security and 
                the need for the power is balanced with the need to 
                protect privacy and civil liberties;
                    ``(B) that there is adequate supervision of the use 
                by such department, agency, or element of the power to 
                ensure protection of privacy and civil liberties; and
                    ``(C) that there are adequate guidelines and 
                oversight to properly confine its use.
    ``(b) Exception to Designation Authority.--
            ``(1) Privacy officers.--In any department, agency, or 
        element referred to in subsection (a) or designated by the 
        Board, which has a statutorily created privacy officer, such 
        officer shall perform the functions specified in subsection (a) 
        with respect to privacy.
            ``(2) Civil liberties officers.--In any department, agency, 
        or element referred to in subsection (a) or designated by the 
        Board, which has a statutorily created civil liberties officer, 
        such officer shall perform the functions specified in 
        subsection (a) with respect to civil liberties.
    ``(c) Supervision and Coordination.--Each privacy officer or civil 
liberties officer described in subsection (a) or (b) shall--
            ``(1) report directly to the head of the department, 
        agency, or element concerned; and
            ``(2) coordinate their activities with the Inspector 
        General of such department, agency, or element to avoid 
        duplication of effort.
    ``(d) Agency Cooperation.--The head of each department, agency, or 
element shall ensure that each privacy officer and civil liberties 
officer--
            ``(1) has the information, material, and resources 
        necessary to fulfill the functions of such officer;
            ``(2) is advised of proposed policy changes;
            ``(3) is consulted by decisionmakers; and
            ``(4) is given access to material and personnel the officer 
        determines to be necessary to carry out the functions of such 
        officer.
    ``(e) Reprisal for Making Complaint.--No action constituting a 
reprisal, or threat of reprisal, for making a complaint or for 
disclosing information to a privacy officer or civil liberties officer 
described in subsection (a) or (b), or to the Privacy and Civil 
Liberties Oversight Board, that indicates a possible violation of 
privacy protections or civil liberties in the administration of the 
programs and operations of the Federal Government relating to efforts 
to protect the Nation from terrorism shall be taken by any Federal 
employee in a position to take such action, unless the complaint was 
made or the information was disclosed with the knowledge that it was 
false or with willful disregard for its truth or falsity.
    ``(f) Periodic Reports.--
            ``(1) In general.--The privacy officers and civil liberties 
        officers of each department, agency, or element referred to or 
        described in subsection (a) or (b) shall periodically, but not 
        less than quarterly, submit a report on the activities of such 
        officers--
                    ``(A)(i) to the appropriate congressional 
                committees, including the Committees on the Judiciary 
                of the Senate and the House of Representatives, the 
                Committee on Homeland Security and Governmental Affairs 
                of the Senate, the Committee on Oversight and 
                Government Reform of the House of Representatives, the 
                Select Committee on Intelligence of the Senate, and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives;
                    ``(ii) to the head of such department, agency, or 
                element; and
                    ``(iii) to the Privacy and Civil Liberties 
                Oversight Board; and
                    ``(B) which shall be in unclassified form to the 
                greatest extent possible, with a classified annex where 
                necessary.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include information on the discharge of each of the 
        functions of the officer concerned, including--
                    ``(A) information on the number and types of 
                reviews undertaken;
                    ``(B) the type of advice provided and the response 
                given to such advice;
                    ``(C) the number and nature of the complaints 
                received by the department, agency, or element 
                concerned for alleged violations; and
                    ``(D) a summary of the disposition of such 
                complaints, the reviews and inquiries conducted, and 
                the impact of the activities of such officer.
    ``(g) Informing the Public.--Each privacy officer and civil 
liberties officer shall--
            ``(1) make the reports of such officer, including reports 
        to Congress, available to the public to the greatest extent 
        that is consistent with the protection of classified 
        information and applicable law; and
            ``(2) otherwise inform the public of the activities of such 
        officer, as appropriate and in a manner consistent with the 
        protection of classified information and applicable law.
    ``(h) Savings Clause.--Nothing in this section shall be construed 
to limit or otherwise supplant any other authorities or 
responsibilities provided by law to privacy officers or civil liberties 
officers.
    ``(i) Protections for Human Research Subjects.--The Secretary of 
Homeland Security shall ensure that the Department of Homeland Security 
complies with the protections for human research subjects, as described 
in part 46 of title 45, Code of Federal Regulations, or in equivalent 
regulations as promulgated by such Secretary, with respect to research 
that is conducted or supported by such Department.''.
            (2) Clerical amendment.--The table of contents in section 
        1(b) of such Act is amended by striking the item relating to 
        section 1062 and inserting the following:

``Sec. 1062. Privacy and civil liberties officers.''.

         Subtitle B--Enhancement of Privacy Officer Authorities

SEC. 811. SHORT TITLE.

    This subtitle may be cited as the ``Privacy Officer With Enhanced 
Rights Act of 2007'' or the ``POWER Act''.

SEC. 812. AUTHORITIES OF THE PRIVACY OFFICER OF THE DEPARTMENT OF 
              HOMELAND SECURITY.

    Section 222 of the Homeland Security Act of 2002 (6 U.S.C. 142) is 
amended--
            (1) by inserting before the first sentence the following: 
        ``(a) Appointment and Responsibilities.--''; and
            (2) by adding at the end the following:
    ``(b) Authority to Investigate.--
            ``(1) In general.--The senior official appointed under this 
        section is specifically authorized--
                    ``(A) to have access to all records, reports, 
                audits, reviews, documents, papers, recommendations, 
                and other materials available to the Department that 
                relate to programs and operations with respect to which 
                the senior official has responsibilities under this 
                section;
                    ``(B) to make such investigations and reports 
                relating to the administration of the programs and 
                operations of the Department as are, in the senior 
                official's judgment, necessary or desirable;
                    ``(C) to require by subpoena the production, by 
                persons other than Federal agencies, of all 
                information, documents, reports, answers, records, 
                accounts, papers, and other data and documentary 
                evidence necessary to performance of the functions of 
                the senior official under this section;
                    ``(D) to administer to or take from any person an 
                oath, affirmation, or affidavit, whenever necessary to 
                performance of the functions of the senior official 
                under this section; and
                    ``(E) to take any other action that may be taken by 
                the Inspector General of the Department, as necessary 
                to require employees of the Department to produce 
                documents and answer questions relevant to performance 
                of the functions of the senior official under this 
                section.
            ``(2) Enforcement of subpoenas.--Any subpoena issued under 
        paragraph (1)(C) shall, in the case of contumacy or refusal to 
        obey, be enforceable by order of any appropriate United States 
        district court.
            ``(3) Effect of oaths, etc.--Any oath, affirmation, or 
        affidavit administered or taken under paragraph (1)(D) by or 
        before an employee of the Privacy Office designated for that 
        purpose by the senior official appointed under subsection (a) 
        shall have the same force and effect as if administered or 
        taken by or before an officer having a seal of office.
    ``(c) Term of Office.--The term of appointment of a senior official 
under subsection (a) shall be 5 years.
    ``(d) Reports to Congress.--The senior official appointed under 
subsection (a) shall submit reports directly to Congress regarding 
performance of the responsibilities of the senior official under this 
section, without any prior comment or amendment by the Secretary, 
Deputy Secretary, or any other officer or employee of the Department or 
the Office of Management and Budget.''.

          TITLE IX--IMPROVING CRITICAL INFRASTRUCTURE SECURITY

SEC. 901. VULNERABILITY ASSESSMENT AND REPORT ON CRITICAL 
              INFRASTRUCTURE INFORMATION.

    (a) In General.--Subtitle B of title II of the Homeland Security 
Act of 2002 is amended by adding at the end the following new section:

``SEC. 216. ANNUAL CRITICAL INFRASTRUCTURE VULNERABILITY ASSESSMENT AND 
              REPORT.

    ``(a) Vulnerability Assessment Required.--Except where a 
vulnerability assessment is required under another provision of law, 
for each fiscal year, the Secretary, acting through the Assistant 
Secretary for Infrastructure Protection pursuant to the 
responsibilities under section 210A, shall prepare a vulnerability 
assessment of the critical infrastructure information available to the 
Secretary with respect to that fiscal year. Each vulnerability 
assessment shall contain any actions or countermeasures proposed or 
recommended by the Secretary to address security concerns covered in 
the assessment. The information in each such assessment shall be set 
forth separately for each critical infrastructure sector, including the 
critical infrastructure sectors named in Homeland Security Presidential 
Directive-7, as in effect on January 1, 2006.
    ``(b) Annual Report to Congress.--
            ``(1) Report required.--Not later than six months after the 
        last day of a fiscal year, the Secretary shall submit to the 
        Committee on Homeland Security of the House of Representatives 
        and the Committee on Homeland Security and Governmental Affairs 
        of the Senate a report containing a summary and review of the 
        vulnerability assessments prepared by the Secretary under 
        subsection (a) for that fiscal year and the two preceding 
        fiscal years. The information in the report shall be set forth 
        separately for each of the critical infrastructure sectors 
        described in subsection (a).
            ``(2) Contents of report.--The Secretary shall include in 
        the report required under paragraph (1)--
                    ``(A) for each critical infrastructure sector 
                covered by the report, a summary comparison describing 
                any changes between the vulnerability assessment for 
                the fiscal year covered by the report and the 
                vulnerability assessment for the preceding fiscal year;
                    ``(B) the explanation and comments of the Secretary 
                with respect to the greatest risks to critical 
                infrastructure for each such sector; and
                    ``(C) the recommendations of the Secretary for 
                mitigating such risks.
            ``(3) Classified annex.--The report required under 
        paragraph (1) may contain a classified annex.''.
    (b) Technical Amendment.--Section 212(3) of such Act (6 U.S.C. 
131(3)) is amended--
            (1) by inserting ``relating to'' after ``the security of 
        critical infrastructure or protected systems''; and
            (2) in subparagraph (A), by inserting ``the'' after 
        ``(A)''.
    (c) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 215 
the following new item:

``Sec. 216. Annual critical infrastructure vulnerability assessment and 
                            report.''.

SEC. 902. NATIONAL ASSET DATABASE AND THE NATIONAL AT-RISK DATABASE.

    (a) In General.--Subtitle A of title II of the Homeland Security 
Act of 2002 is amended by adding at the end the following new sections:

``SEC. 210C. NATIONAL ASSET DATABASE AND NATIONAL AT-RISK DATABASE.

    ``(a) Establishment.--
            ``(1) National asset database.--The Secretary shall 
        establish and maintain a national database of nationwide 
        critical infrastructure assets to identify and prioritize 
        critical infrastructure and key resources and to protect them 
        from terrorist attack. The database shall be known as the 
        `National Asset Database'.
            ``(2) National at-risk database.--The Secretary shall 
        establish within the National Asset Database, a database 
        containing a list of the infrastructure the Secretary 
        determines is most at risk, to be known as the `National At-
        Risk Database'.
            ``(3) National asset database consortium.--
                    ``(A) Establishment.--The Secretary shall establish 
                a consortium to be known as the `National Asset 
                Database Consortium'. The Consortium shall advise the 
                Secretary on the best way to identify, generate, 
                organize, and maintain the databases described in 
                paragraphs (1) and (2) and shall be made up of at least 
                two but not more than four national laboratories and 
                the heads of such other Federal agencies as the 
                Secretary deems appropriate.
                    ``(B) Administration and consultation.--The 
                Secretary shall--
                            ``(i) select as members of the National 
                        Asset Database Consortium national laboratories 
                        or Federal agencies that have demonstrated 
                        experience working with and identifying 
                        critical infrastructure;
                            ``(ii) enter into contracts, as necessary, 
                        with the members of the National Asset Database 
                        Consortium to perform the tasks required under 
                        this section; and
                            ``(iii) solicit and receive comments from 
                        the National Asset Database Consortium on--
                                    ``(I) the appropriateness of the 
                                protection and risk methodologies in 
                                the National Infrastructure Protection 
                                Plan or other nationwide infrastructure 
                                protection plan issued by the 
                                Department; and
                                    ``(II) alternative means to define 
                                risk and identify specific criteria to 
                                prioritize the most at-risk 
                                infrastructure or key resources.
    ``(b) Use of Database.--The Secretary shall use the database 
established under subsection (a)--
            ``(1) in the development, coordination, integration, and 
        implementation of plans and programs, including to identify, 
        catalog, prioritize, and protect critical infrastructure and 
        key resources in accordance with Homeland Security Presidential 
        Directive number 7, and in cooperation with all levels of 
        government and private sector entities that the Secretary 
        considers appropriate; and
            ``(2) in providing any covered grant to assist in 
        preventing, reducing, mitigating, or responding to terrorist 
        attack.
    ``(c) Maintenance of Database.--
            ``(1) In general.--The Secretary shall maintain and 
        annually update the database, including by--
                    ``(A) annually defining and systematically 
                examining assets in the database that are described 
                incorrectly or that do not meet national assets 
                guidelines used by the Secretary to determine which 
                assets should remain in the National Asset Database and 
                the National At-Risk Database;
                    ``(B) annually providing a list to the States of 
                assets referred to in subparagraph (A) for review 
                before finalizing the decision of which assets to 
                include in the National Asset Database and the National 
                At-Risk Database;
                    ``(C) reviewing the guidelines to the States to 
                ensure consistency and uniformity for inclusion and how 
                the Department intends to use that data;
                    ``(D) meeting annually with the States to provide 
                guidance and clarification of the guidelines to promote 
                consistency and uniformity in submissions;
                    ``(E) utilizing on an ongoing basis the National 
                Asset Database and other expert panels established by 
                the Department to review and refine the National Asset 
                Database and the National At-Risk Database; and
                    ``(F) utilizing the Department's National 
                Infrastructure Simulation and Analysis Center for the 
                National Asset Database taxonomy and asset information 
                in the National Asset Database and facilitating the 
                future exchange of information between the National 
                Asset Database and such center.
            ``(2) Organization of information in database.--The 
        Secretary shall--
                    ``(A) remove from the National Asset Database or 
                the National At-Risk Database any asset that the 
                Secretary determines to be unverifiable and as not 
                meeting national asset guidelines set forth by the 
                Secretary in requests for information from States; and
                    ``(B) classify assets in the database according to 
                the 17 sectors listed in National Infrastructure 
                Protection Plan developed pursuant to Homeland Security 
                Presidential Directive 7, to ensure that the assets in 
                the National Asset Database and the National At-Risk 
                Database can be categorized by State and locality, 
                regionally, and in such a manner as is effective for 
                grants and other purposes.
            ``(3) Milestones and guidelines.--The Secretary shall--
                    ``(A) identify and evaluate key milestones for the 
                National Asset Database and the National At-Risk 
                Database, including methods to integrate private sector 
                assets and tasks that must be completed to eventually 
                allocate homeland security grant programs based on the 
                information contained in the database; and
                    ``(B) issue guidelines for--
                            ``(i) States to submit uniform information 
                        for possible inclusion in the National Asset 
                        Database or the National At-Risk Database; and
                            ``(ii) review of such submissions by the 
                        Department.
    ``(d) Reports.--
            ``(1) In general.--Not later than March 1 of each year, the 
        Secretary shall submit to the Committee on Homeland Security of 
        the House of Representatives and the Committee on Homeland 
        Security and Governmental Affairs of the Senate a report on the 
        critical infrastructure included in the National Asset Database 
        that is most at risk to terrorism.
            ``(2) Contents.--Each report shall include the following:
                    ``(A) The name, location, and sector classification 
                of assets in the National Asset Database that have been 
                identified or deemed critical infrastructure that is 
                most at risk to terrorism.
                    ``(B) Changes made in such database regarding such 
                critical infrastructure made during the period covered 
                by the report regarding--
                            ``(i) defining and identifying critical 
                        infrastructure; and
                            ``(ii) compiling a usable database.
                    ``(C) The extent to which the database has been 
                used as a tool for allocating funds to prevent, reduce, 
                mitigate, and respond to terrorist attacks.
            ``(3) Classified information.--The Secretary shall provide 
        to the members of the committees to which the report required 
        under this subsection is required to be submitted under 
        paragraph (1) a classified briefing on the contents of such 
        report. The Secretary shall also submit with each report a 
        classified annex containing information required to be 
        submitted under this section that cannot be made public.
    ``(e) Covered Grant Defined.--In this section, the term `covered 
grant' means any grant provided by the Department under any of the 
following:
            ``(1) The Urban Area Security Initiative.
            ``(2) The Buffer Zone Protection Program.
            ``(3) Any other grant program administered by the 
        Department, as determined appropriate by the Secretary.
            ``(4) Any successor to a program referred to in this 
        paragraph.''.
    (b) Deadlines for Implementation and Notification of Congress.--
            (1) Deadline for recommendations.--Not later than 60 days 
        after the date of the enactment of this Act, the Secretary of 
        Homeland Security shall secure recommendations on how to 
        identify, generate, organize, and maintain the list of assets 
        in the databases from the consortium of national laboratories, 
        as required under section 210C(a)(2) of the Homeland Security 
        Act of 2002, as added by subsection (a).
            (2) Deadline for first report regarding use of the national 
        asset database.--Notwithstanding the date specified under 
        section 210C(d) of the Homeland Security Act of 2002, as added 
        by subsection (a), the Secretary of Homeland Security shall 
        submit the first report required under that section not later 
        than 180 days after the date of the enactment of this Act.
    (c) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by inserting after the item relating to 
section 210 the following:

``Sec. 210C. National Asset Database and National At-Risk Database.''.
    (d) Submittal of Certain Reports.--Each report that is authorized 
or required by this Act (or the amendments made by this Act) to be 
prepared by the Secretary of Homeland Security and that concerns a 
matter of the type carried out under an program under the jurisdiction 
of the Committee on Energy and Commerce of the House of Representatives 
shall be submitted to the Committee on Energy and Commerce of the House 
of Representatives, in addition to the other congressional committees 
involved.

   TITLE X--TRANSPORTATION SECURITY PLANNING AND INFORMATION SHARING

SEC. 1001. STRATEGIC TRANSPORTATION SECURITY INFORMATION SHARING.

    Section 114 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(u) Strategic Information Sharing.--
            ``(1) Establishment of plan.--The Secretary of Homeland 
        Security shall establish a Strategic Transportation Security 
        Information Sharing Plan.
            ``(2) Purpose of plan.--The plan shall ensure the robust 
        development of tactical and strategic intelligence products for 
        disseminating to public and private stakeholders security 
        information relating to threats to and vulnerabilities of 
        transportation modes, including aviation, bridge and tunnel, 
        commuter rail and ferry, highway, maritime, pipeline, rail, 
        mass transit, and over-the-road bus transportation.
            ``(3) Content of plan.--The plan shall include--
                    ``(A) a description of how intelligence analysts in 
                the Transportation Security Administration are 
                coordinating their activities with other intelligence 
                analysts in the Department of Homeland Security and 
                other Federal, State, and local agencies;
                    ``(B) reasonable deadlines for completing any 
                organizational changes within the Department of 
                Homeland Security required to accommodate 
                implementation of the plan; and
                    ``(C) a description of resource needs for 
                fulfilling the plan.
            ``(4) Reports to congress.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the Secretary 
                shall submit to the appropriate congressional 
                committees a report containing the plan.
                    ``(B) Updates.--
                            ``(i) Certification of full 
                        implementation.--After achieving full 
                        implementation of the plan, the Secretary shall 
                        submit to the appropriate congressional 
                        committees a written certification of such 
                        implementation.
                            ``(ii) Updates on implementation.--Not 
                        later than 90 days after the date of submission 
                        of a report under subparagraph (A), and every 
                        90 days thereafter until the date of submission 
                        of a written certification under clause (i), 
                        the Secretary shall submit to the appropriate 
                        congressional committees a report containing an 
                        update on implementation of the plan.
                    ``(C) Annual report.--Following the date of 
                submission of a written certification under 
                subparagraph (B)(i), the Secretary shall submit to the 
                appropriate congressional committees an annual report 
                on the following:
                            ``(i) The number of transportation 
                        intelligence reports disseminated under the 
                        plan and a brief description of each report.
                            ``(ii) The security classification of each 
                        report.
                            ``(iii) The number of public and private 
                        stakeholders who were provided with each 
                        report.
            ``(5) Survey.--The Secretary shall conduct an annual survey 
        of the satisfaction of each of the recipients of transportation 
        intelligence reports disseminated under the plan, and include 
        the results of the survey as part of the annual report to be 
        submitted under paragraph (4)(C).
            ``(6) Security clearances.--The Secretary shall ensure that 
        public and private stakeholders have the security clearances 
        needed to receive classified information if information 
        contained in transportation intelligence reports cannot be 
        disseminated in an unclassified format.
            ``(7) Classification of material.--To the greatest extent 
        possible, the Secretary shall provide public and private 
        stakeholders with specific and actionable information in an 
        unclassified format.
            ``(8) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Appropriate congressional committees.--The 
                term `appropriate congressional committees' has the 
                meaning given that term in subsection (t).
                    ``(B) Plan.--The term `plan' means the Strategic 
                Transportation Security Information Sharing Plan 
                established under paragraph (1).
                    ``(C) Public and private stakeholders.--The term 
                `public and private stakeholders' means Federal, State, 
                and local agencies, tribal governments, and appropriate 
                private entities, including nonprofit employee labor 
                organizations.''.

SEC. 1002. TRANSPORTATION SECURITY STRATEGIC PLANNING.

    (a) In General.--Section 114(t)(1)(B) of title 49, United States 
Code, is amended to read as follows:
                    ``(B) transportation modal security plans 
                addressing risks, threats, and vulnerabilities for 
                aviation, bridge and tunnel, commuter rail and ferry, 
                highway, maritime, pipeline, rail, mass transit, over-
                the-road bus, and other public transportation 
                infrastructure assets.''.
    (b) Role of Secretary of Transportation.--Section 114(t)(2) of such 
title is amended by inserting before the period at the end the 
following: ``and in carrying out all other responsibilities set forth 
in this subsection''.
    (c) Contents of National Strategy for Transportation Security.--
Section 114(t)(3) of such title is amended--
            (1) in subparagraph (B) by inserting ``, based on 
        vulnerability assessments conducted by the Department of 
        Homeland Security,'' after ``risk-based priorities'';
            (2) in subparagraph (D)--
                    (A) by striking ``and local'' and inserting ``, 
                local, and tribal''; and
                    (B) by striking ``private sector cooperation and 
                participation'' and inserting ``cooperation and 
                participation by private sector entities, including 
                nonprofit employee labor organizations,'';
            (3) in subparagraph (E)--
                    (A) by striking ``response'' and inserting 
                ``prevention, response,''; and
                    (B) by inserting ``and outside of'' before ``the 
                United States''; and
            (4) in subparagraph (F) by adding at the end the following: 
        ``Research and development projects initiated by the Department 
        of Homeland Security shall be based on such prioritization.''.
    (d) Periodic Progress Report.--Section 114(t)(4)(C) is amended--
            (1) in clause (i) by inserting before the period at the end 
        the following: ``, including the transportation modal security 
        plans'';
            (2) by striking clause (ii) and inserting the following:
                            ``(ii) Content.--Each progress report 
                        submitted under this subparagraph shall 
                        include, at a minimum, the following:
                                    ``(I) Recommendations for improving 
                                and implementing the National Strategy 
                                for Transportation Security and the 
                                transportation modal security plans 
                                that the Secretary, in consultation 
                                with the Secretary of Transportation, 
                                considers appropriate.
                                    ``(II) An accounting of all grants 
                                for transportation security, including 
                                grants for research and development, 
                                distributed by the Department of 
                                Homeland Security in the previous year 
                                and a description of how the grants 
                                accomplished the goals of the National 
                                Strategy for Transportation Security.
                                    ``(III) An accounting of all funds 
                                (other than grants referred in 
                                subclause (II)) expended by the 
                                Department of Homeland Security on 
                                transportation security.
                                    ``(IV) Information on the number of 
                                employees of the Department of Homeland 
                                Security, by agency, working on 
                                transportation security issues. The 
                                listing shall be divided by 
                                transportation mode, including 
                                aviation, bridge and tunnel, commuter 
                                rail and ferry, highway, maritime, 
                                pipeline, rail, mass transit, over-the-
                                road bus, and other public 
                                transportation modes. The listing shall 
                                include information, by transportation 
                                mode, on the number of contractors 
                                hired by the Department of Homeland 
                                Security to work on transportation-
                                related security.
                                    ``(V) Information on the turnover 
                                in the previous year among employees of 
                                the Department of Homeland Security 
                                working on transportation security 
                                issues. Specifically, the report shall 
                                provide information on the number of 
                                employees who have left the Department, 
                                their agency, the area in which they 
                                worked, and the amount of time that 
                                they worked for the Department.
                            ``(iii) Written explanation of 
                        transportation security activities not 
                        delineated in the national strategy for 
                        transportation security.--Before carrying out a 
                        transportation security activity that is not 
                        clearly delineated in the National Strategy for 
                        Transportation Security, the Secretary shall 
                        submit to appropriate congressional committees 
                        a written explanation of the activity, 
                        including the amount of funds to be expended 
                        for the activity.''.
    (e) Appropriate Congressional Committees Defined.--Section 
114(t)(4)(E) of such title is amended by striking ``Select''.
    (f) Priority Status.--Section 114(t)(5)(B) of such title is 
amended--
            (1) by striking ``and'' at the end of clause (iii);
            (2) by redesignating clause (iv) as clause (v); and
            (3) by inserting after clause (iii) the following:
                            ``(iv) the transportation sector specific 
                        plan required under Homeland Security 
                        Presidential Directive 7; and''.
    (g) Coordination; Plan Distribution.--Section 114(t) of such title 
is amended by adding at the end the following:
            ``(6) Coordination.--In carrying out the responsibilities 
        set forth in this section, the Secretary of Homeland Security, 
        working with the Secretary of Transportation, shall consult 
        with Federal, State, and local agencies, tribal governments, 
        private sector entities (including nonprofit employee labor 
        organizations), institutions of higher learning, and other 
        appropriate entities.
            ``(7) Plan distribution.--The Secretary of Homeland 
        Security shall provide an unclassified version of the National 
        Strategy for Transportation Security to Federal, State, and 
        local agencies, tribal governments, private sector entities 
        (including nonprofit employee labor organizations), 
        institutions of higher learning, and other appropriate 
        entities.''.

                 TITLE XI--PRIVATE SECTOR PREPAREDNESS

SEC. 1101. PARTICIPATION OF PRIVATE SECTOR ORGANIZATIONS IN EMERGENCY 
              PREPAREDNESS AND RESPONSE ACTIVITIES.

    (a) Establishment of Preparedness Program.--Section 519 of the 
Homeland Security Act of 2002 (6 U.S.C. 318) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 519. PARTICIPATION OF PRIVATE SECTOR ORGANIZATIONS IN EMERGENCY 
              PREPAREDNESS AND RESPONSE ACTIVITIES.'';

            (2) by inserting ``(a) Use of Private Sector Networks in 
        Emergency Response.--'' before ``To the maximum''; and
            (3) by adding at the end the following:
    ``(b) Private Sector Emergency Preparedness Program.--
            ``(1) Preparedness program.--Not later than 90 days after 
        the date of enactment of this subsection, the Secretary shall 
        develop and implement a program to enhance private sector 
        preparedness for acts of terrorism and other emergencies and 
        disasters through the promotion of the use of voluntary 
        consensus standards.
            ``(2) Program elements.--In carrying out the program, the 
        Secretary shall develop guidance and identify best practices to 
        assist or foster action by the private sector in--
                    ``(A) identifying hazards and assessing risks and 
                impacts;
                    ``(B) mitigating the impacts of a wide variety of 
                hazards, including weapons of mass destruction;
                    ``(C) managing necessary emergency preparedness and 
                response resources;
                    ``(D) developing mutual aid agreements;
                    ``(E) developing and maintaining emergency 
                preparedness and response plans, as well as associated 
                operational procedures;
                    ``(F) developing and conducting training and 
                exercises to support and evaluate emergency 
                preparedness and response plans and operational 
                procedures;
                    ``(G) developing and conducting training programs 
                for security guards to implement emergency preparedness 
                and response plans and operations procedures; and
                    ``(H) developing procedures to respond to external 
                requests for information from the media and the public.
            ``(3) Standards.--
                    ``(A) In general.--The Secretary shall support the 
                development of, promulgate, and regularly update as 
                necessary national voluntary consensus standards for 
                private sector emergency preparedness that will enable 
                private sector organizations to achieve optimal levels 
                of emergency preparedness as soon as practicable. Such 
                standards shall include the National Fire Protection 
                Association 1600 Standard on Disaster/Emergency 
                Management and Business Continuity Programs.
                    ``(B) Consultation.--The Secretary shall carry out 
                paragraph (1) in consultation with the Assistant 
                Secretary for Infrastructure Protection, the Assistant 
                Secretary for Cyber Security and Communications, the 
                Under Secretary for Science and Technology, the 
                Director of the Federal Emergency Management Agency, 
                and the Special Assistant to the Secretary for the 
                Private Sector.
            ``(4) Coordination.--The Secretary shall coordinate the 
        program with, and utilize to the maximum extent practicable--
                    ``(A) the voluntary standards for disaster and 
                emergency management and business continuity programs 
                accredited by the American National Standards Institute 
                and developed by the National Fire Protection 
                Association; and
                    ``(B) any existing private sector emergency 
                preparedness guidance or best practices developed by 
                private sector industry associations or other 
                organizations.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of such Act is amended by striking the item relating to 
section 519 and inserting the following:

``Sec. 519. Participation of private sector organizations in emergency 
                            preparedness and response activities.''.

  TITLE XII--PREVENTING WEAPONS OF MASS DESTRUCTION PROLIFERATION AND 
                               TERRORISM

SEC. 1201. FINDINGS.

    (a) Findings of the 9/11 Commission.--Congress finds that the 9/11 
Commission made the following determinations:
            (1) The United States Government has made insufficient 
        progress, and receives a grade ``D'', on efforts to prevent 
        weapons of mass destruction (WMD) proliferation and terrorism.
            (2) The Cooperative Threat Reduction (CTR) program has made 
        significant accomplishments, but much remains to be done to 
        secure weapons-grade nuclear materials. The size of the problem 
        still dwarfs the policy response. Nuclear materials in the 
        former Soviet Union still lack effective security protection, 
        and sites throughout the world contain enough highly-enriched 
        uranium to fashion a nuclear device but lack even basic 
        security features.
            (3) Preventing the proliferation of WMD and acquisition of 
        such weapons by terrorists warrants a maximum effort, by 
        strengthening counter-proliferation efforts, expanding the 
        Proliferation Security Initiative (PSI), and supporting the 
        Cooperative Threat Reduction (CTR) Program.
            (4) Preventing terrorists from gaining access to WMD must 
        be an urgent national security priority because of the threat 
        such access poses to the American people. The President should 
        develop a comprehensive plan to dramatically accelerate the 
        timetable for securing all nuclear weapons-usable material 
        around the world and request the necessary resources to 
        complete this task. The President should publicly state this 
        goal and ensure its fulfillment.
            (5) Congress should provide the resources needed to secure 
        vulnerable materials as quickly as possible.
    (b) Recommendations of 9/11 Commission.--Congress further finds 
that the 9/11 Commission has made the following recommendations:
            (1) Strengthen ``counter-proliferation'' efforts.--The 
        United States should work with the international community to 
        develop laws and an international legal regime with universal 
        jurisdiction to enable any state in the world to capture, 
        interdict, and prosecute smugglers of nuclear material.
            (2) Expand the proliferation security initiative.--In 
        carrying out the Proliferation Security Initiative (PSI), the 
        United States should--
                    (A) use intelligence and planning resources of the 
                North Atlantic Treaty Organization (NATO) alliance;
                    (B) make participation open to non-NATO countries; 
                and
                    (C) encourage Russia and the People's Republic of 
                China to participate.
            (3) Support the cooperative threat reduction program.--The 
        United States should expand, improve, increase resources for, 
        and otherwise fully support the Cooperative Threat Reduction 
        (CTR) program.

SEC. 1202. DEFINITIONS.

    In this title:
            (1) The terms ``prevention of weapons of mass destruction 
        proliferation and terrorism'' and ``prevention of WMD 
        proliferation and terrorism'' include activities under--
                    (A) the programs specified in section 1501(b) of 
                the National Defense Authorization Act for Fiscal Year 
                1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 
                2362 note);
                    (B) the programs for which appropriations are 
                authorized by section 3101(a)(2) of the Bob Stump 
                National Defense Authorization Act for Fiscal Year 2003 
                (Public Law 107-314; 116 Stat. 2458);
                    (C) programs authorized by section 504 of the 
                Freedom for Russia and Emerging Eurasian Democracies 
                and Open Markets Support Act of 1992 (the FREEDOM 
                Support Act) (22 U.S.C. 5854) and programs authorized 
                by section 1412 of the Former Soviet Union 
                Demilitarization Act of 1992 (22 U.S.C. 5902); and
                    (D) a program of any agency of the Federal 
                Government having a purpose similar to that of any of 
                the programs identified in subparagraphs (A) through 
                (C), as designated by the United States Coordinator for 
                the Prevention of Weapons of Mass Destruction 
                Proliferation and Terrorism and the head of the agency.
            (2) The terms ``weapons of mass destruction'' and ``WMD'' 
        mean chemical, biological, and nuclear weapons, and chemical, 
        biological, and nuclear materials that can be used in the 
        manufacture of such weapons.
            (3) The term ``items of proliferation concern'' means 
        equipment or other materials that could be used to develop WMD 
        or for activities involving WMD.

 Subtitle A--Repeal and Modification of Limitations on Assistance for 
             Prevention of WMD Proliferation and Terrorism

SEC. 1211. REPEAL AND MODIFICATION OF LIMITATIONS ON ASSISTANCE FOR 
              PREVENTION OF WEAPONS OF MASS DESTRUCTION PROLIFERATION 
              AND TERRORISM.

    Consistent with the recommendations of the 9/11 Commission, 
Congress repeals or modifies the limitations on assistance for 
prevention of weapons of mass destruction (WMD) proliferation and 
terrorism as follows:
            (1) Soviet nuclear threat reduction act of 1991.--Section 
        211(b) of the Soviet Nuclear Threat Reduction Act of 1991 
        (title II of Public Law 102-228; 22 U.S.C. 2551 note) is 
        repealed.
            (2) Cooperative threat reduction act of 1993.--Section 
        1203(d) of the Cooperative Threat Reduction Act of 1993 (title 
        XII of Public Law 103-160; 22 U.S.C. 5952(d)) is repealed.
            (3) Russian chemical weapons destruction facilities.--
        Section 1305 of the National Defense Authorization Act for 
        Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 note) is 
        repealed.
            (4) Authority to use cooperative threat reduction funds 
        outside the former soviet union--modification of certification 
        requirement; repeal of funding limitation; congressional notice 
        requirement.--Section 1308 of the National Defense 
        Authorization Act for Fiscal Year 2004 (Public Law 108-136; 22 
        U.S.C. 5963) is amended--
                    (A) in subsection (a)--
                            (i) by striking ``the President may'' and 
                        inserting ``the Secretary of Defense may''; and
                            (ii) by striking ``if the President'' and 
                        inserting ``if the Secretary of Defense, with 
                        the concurrence of the Secretary of State,'';
                    (B) by striking subsection (c);
                    (C) in subsection (d)(1)--
                            (i) by striking ``The President may not'' 
                        and inserting ``The Secretary of Defense may 
                        not''; and
                            (ii) by striking ``until the President'' 
                        and inserting ``until the Secretary of 
                        Defense'';
                    (D) in subsection (d)(2)--
                            (i) by striking ``Not later than 10 days 
                        after'' and inserting ``Not later than 15 days 
                        prior to'';
                            (ii) by striking ``the President shall'' 
                        and inserting ``the Secretary of Defense 
                        shall''; and
                            (iii) by striking ``Congress'' and 
                        inserting ``the Committee on Armed Services and 
                        the Committee on Foreign Affairs of the House 
                        of Representatives and the Committee on Armed 
                        Services and Committee on Foreign Relations of 
                        the Senate''; and
                    (E) in subsection (d) by adding at the end the 
                following:
    ``(3) In the case of a situation that threatens human life or 
safety or where a delay would severely undermine the national security 
of the United States, notification under paragraph (2) shall be made 
not later than 10 days after obligating funds under the authority in 
subsection (a) for a project or activity.''.
            (5) Authority to use international nuclear materials 
        protection and cooperation program funds outside the former 
        soviet union--modification of certification requirement; repeal 
        of funding limitation; congressional notice requirement.--
        Section 3124 of the National Defense Authorization Act for 
        Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1747) is 
        amended--
                    (A) in subsection (a)--
                            (i) by striking ``the President may'' and 
                        inserting ``the Secretary of Energy may''; and
                            (ii) by striking ``if the President'' and 
                        inserting ``if the Secretary of Energy, with 
                        the concurrence of the Secretary of State,'';
                    (B) by striking subsection (c);
                    (C) in subsection (d)(1)--
                            (i) by striking ``The President may not'' 
                        and inserting ``The Secretary of Energy may 
                        not''; and
                            (ii) by striking ``until the President'' 
                        and inserting ``until the Secretary of 
                        Energy'';
                    (D) in subsection (d)(2)--
                            (i) by striking ``Not later than 10 days 
                        after'' and inserting ``Not later than 15 days 
                        prior to'';
                            (ii) by striking ``the President shall'' 
                        and inserting ``the Secretary of Energy 
                        shall''; and
                            (iii) by striking ``Congress'' and 
                        inserting ``the Committee on Armed Services and 
                        the Committee on Foreign Affairs of the House 
                        of Representatives and the Committee on Armed 
                        Services and Committee on Foreign Relations of 
                        the Senate''; and
                    (E) in subsection (d) by adding at the end the 
                following:
    ``(3) In the case of a situation that threatens human life or 
safety or where a delay would severely undermine the national security 
of the United States, notification under paragraph (2) shall be made 
not later than 10 days after obligating funds under the authority in 
subsection (a) for a project or activity.''.

             Subtitle B--Proliferation Security Initiative

SEC. 1221. PROLIFERATION SECURITY INITIATIVE IMPROVEMENTS AND 
              AUTHORITIES.

    (a) Sense of Congress.--It is the sense of Congress, consistent 
with the 9/11 Commission's recommendations, that the President should 
strive to expand and strengthen the Proliferation Security Initiative 
(PSI) announced by the President on May 31, 2003, with a particular 
emphasis on the following:
            (1) Issuing a presidential directive to the relevant 
        government agencies and departments that establishes a defined 
        annual budget and clear authorities, and provides other 
        necessary resources and structures to achieve more efficient 
        and effective performance of United States PSI-related 
        activities.
            (2) Working with the United Nations Security Council to 
        develop a resolution to authorize the PSI under international 
        law.
            (3) Increasing PSI cooperation with non-NATO partners.
            (4) Implementing the recommendations of the Government 
        Accountability Office (GAO) in the September 2006 report titled 
        ``Better Controls Needed to Plan and Manage Proliferation 
        Security Initiative Activities'' (GAO-06-937C), including the 
        following:
                    (A) The Department of Defense and the Department of 
                State should establish clear PSI roles and 
                responsibilities, policies and procedures, interagency 
                communication mechanisms, documentation requirements, 
                and indicators to measure program results.
                    (B) The Department of Defense and the Department of 
                State should develop a strategy to work with PSI-
                participating countries to resolve issues that are 
                impediments to conducting successful PSI interdictions.
            (5) Expanding and formalizing the PSI into a multilateral 
        regime to increase coordination, cooperation, and compliance 
        among its participating states in interdiction activities.
    (b) Budget Submission.--The Secretary of State and the Secretary of 
Defense shall submit a defined budget for the PSI, beginning with the 
budget submissions for their respective departments for fiscal year 
2009.
    (c) Implementation Report.--Not later than 180 days after the date 
of the enactment of this Act, the President shall transmit to the 
Committee on Armed Services and the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate a report on the 
implementation of this section. The report shall include--
            (1) the steps taken to implement the recommendations 
        described in paragraph (4) of subsection (a); and
            (2) the progress made toward implementing the matters 
        described in paragraphs (1), (2), (3), and (5) of subsection 
        (a).
    (d) GAO Annual Report.--The Government Accountability Office shall 
submit to Congress, beginning in fiscal year 2007, an annual report 
with its assessment of the progress and effectiveness of the PSI, which 
shall include an assessment of the measures referred to in subsection 
(a).

SEC. 1222. AUTHORITY TO PROVIDE ASSISTANCE TO COOPERATIVE COUNTRIES.

    (a) In General.--The President is authorized to provide, on such 
terms as the President considers appropriate, assistance under 
subsection (b) to any country that cooperates with the United States 
and with other countries allied with the United States to prevent the 
transport and transshipment of items of proliferation concern in its 
national territory or airspace or in vessels under its control or 
registry.
    (b) Types of Assistance.--The assistance authorized under 
subsection (a) consists of the following:
            (1) Assistance under section 23 of the Arms Export Control 
        Act (22 U.S.C. 2763).
            (2) Assistance under chapters 4 (22 U.S.C. 2346 et seq.) 
        and 5 (22 U.S.C. 2347 et seq.) of part II of the Foreign 
        Assistance Act of 1961.
            (3) Drawdown of defense excess defense articles and 
        services under section 516 of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2321j).
    (c) Congressional Notification.--Assistance authorized under this 
section may not be provided until at least 30 days after the date on 
which the President has provided notice thereof to the Committee on 
Armed Services, the Committee on Foreign Affairs, and the Committee on 
Appropriations of the House of Representatives and the Committee on 
Armed Services, the Committee on Foreign Relations, and the Committee 
on Appropriations of the Senate, in accordance with the procedures 
applicable to reprogramming notifications under section 634A(a) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2394-1(a)), and has certified 
to such committees that such assistance will be used in accordance with 
the requirement of subsection (e) of this section.
    (d) Limitation.--Assistance may be provided to a country under 
section (a) in no more than three fiscal years.
    (e) Use of Assistance.--Assistance provided under this section 
shall be used to enhance the capability of the recipient country to 
prevent the transport and transshipment of items of proliferation 
concern in its national territory or airspace, or in vessels under its 
control or registry, including through the development of a legal 
framework in that country, consistent with any international laws or 
legal authorities governing the PSI, to enhance such capability by 
criminalizing proliferation, enacting strict export controls, and 
securing sensitive materials within its borders, and to enhance the 
ability of the recipient country to cooperate in operations conducted 
with other participating countries.
    (f) Limitation on Ship or Aircraft Transfers to Uncooperative 
Countries.--Notwithstanding any other provision of law, the United 
States may not transfer any excess defense article that is a vessel or 
an aircraft to a country that has not agreed that it will support and 
assist efforts by the United States to interdict items of proliferation 
concern until thirty days after the date on which the President has 
provided notice of the proposed transfer to the appropriate 
congressional committees in accordance with the procedures applicable 
to reprogramming notifications under section 634A(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2394-1(a)), in addition to any other 
requirement of law.

  Subtitle C--Assistance to Accelerate Programs to Prevent Weapons of 
              Mass Destruction Proliferation and Terrorism

SEC. 1231. FINDINGS; STATEMENT OF POLICY.

    (a) Findings.--Congress is aware that certain United States threat 
reduction and nonproliferation programs have in past years encountered 
obstacles to timely obligating and executing the full amount of 
appropriated funds, and that certain United States threat reduction and 
nonproliferation programs currently encounter such obstacles and 
therefore maintain unobligated and uncosted balances. Such obstacles 
include lack of effective policy guidance, limits on program scope, 
practical inefficiencies, lack of cooperation with other countries, and 
lack of effective leadership to overcome such obstacles.
    (b) Statement of Policy.--It shall be the policy of the United 
States, consistent with the 9/11 Commission's recommendations, to 
eliminate the obstacles described in subsection (a) with concrete 
measures, such as those described in this title, to accelerate and 
strengthen progress on preventing weapons of mass destruction (WMD) 
proliferation and terrorism. Such measures described in this title 
include the removal and modification of statutory limits to executing 
funds, the expansion and strengthening of the PSI, the establishment of 
the Office of the United States Coordinator for the Prevention of 
Weapons of Mass Destruction Proliferation and Terrorism under subtitle 
D, and the establishment of the Commission on the Prevention of Weapons 
of Mass Destruction Proliferation and Terrorism under subtitle E. As a 
result, Congress intends that any funds authorized to be appropriated 
to programs for preventing WMD proliferation and terrorism under this 
section will be executed in a timely manner.

SEC. 1232. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF 
              DEFENSE COOPERATIVE THREAT REDUCTION PROGRAM.

    (a) Fiscal Year 2007.--In addition to any other amounts authorized 
to be appropriated, there are authorized to be appropriated to the 
Department of Defense Cooperative Threat Reduction Program such sums as 
may be necessary for fiscal year 2007 for the following purposes:
            (1) Biological weapons proliferation prevention.
            (2) Chemical weapons destruction at Shchuch'ye, Russia.
            (3) Acceleration, expansion, and strengthening of all CTR 
        activities.
    (b) Future Years.--It is the sense of Congress that in fiscal year 
2008 and future fiscal years, the President should accelerate and 
expand funding for Cooperative Threat Reduction programs administered 
by the Department of Defense and such efforts should include, beginning 
upon enactment of this Act, encouraging additional commitments by the 
Russian Federation and other partner nations, as recommended by the 9/
11 Commission.

SEC. 1233. AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF ENERGY 
              PROGRAMS TO PREVENT WEAPONS OF MASS DESTRUCTION 
              PROLIFERATION AND TERRORISM.

    In addition to any other amounts authorized to be appropriated, 
there are authorized to be appropriated to the Department of Energy 
National Nuclear Security Administration such sums as may be necessary 
for fiscal year 2007 for programs to prevent weapons of mass 
destruction (WMD) proliferation and terrorism, to be used as follows:
            (1) To accelerate, expand, and strengthen the Global Threat 
        Reduction Initiative (GTRI), with a particular emphasis on--
                    (A) the Russian research reactor fuel return 
                program;
                    (B) international radiological threat reduction;
                    (C) emerging threats and gap material; and
                    (D) development of quick response and short-term 
                capabilities to secure and remove WMD materials 
                throughout the world.
            (2) To accelerate, expand, and strengthen the 
        Nonproliferation and International Security (NIS) program, with 
        a particular emphasis on--
                    (A) global security and engagement, and cooperation 
                with the People's Republic of China, India, and other 
                states;
                    (B) activities to address emerging proliferation 
                concerns in North Korea, Iran, and elsewhere;
                    (C) participation in negotiations regarding North 
                Korea's nuclear programs;
                    (D) inter-agency participation in the Proliferation 
                Security Initiative (PSI);
                    (E) technical and other assistance to the 
                International Atomic Energy Agency (IAEA) to support 
                efforts to increase the IAEA's capacity to secure 
                vulnerable WMD materials worldwide and prevent WMD 
                proliferation and terrorism;
                    (F) efforts to increase United States ability to 
                help states around the world place the ``effective 
                controls'' on WMD and related materials and technology 
                mandated by United Nations Security Council Resolution 
                1540 (2004);
                    (G) cooperation on international safeguards and 
                export controls in South Asia, the Middle East, and 
                other regions;
                    (H) efforts to strengthen United States commitments 
                to international regimes and agreements; and
                    (I) establishment of a contingency fund for 
                opportunities to prevent WMD proliferation and 
                terrorism that arise.
            (3) To accelerate, expand, and strengthen the International 
        Materials Protection, Control and Accounting (MPC&A) program, 
        with a particular emphasis on--
                    (A) implementation of physical protection and 
                material control and accounting upgrades at sites;
                    (B) national programs and sustainability activities 
                in Russia;
                    (C) material consolidation and conversion 
                (including significant acceleration of the down-
                blending of highly-enriched uranium to low-enriched 
                uranium, the removal of highly-enriched uranium from 
                facilities, and international participation in these 
                efforts);
                    (D) efforts to strengthen cooperation with Russia;
                    (E) implementation of Second Line of Defense 
                Megaports agreements;
                    (F) implementation of Department of Energy actions 
                under the Security and Accountability for Every Port 
                Act of 2006 (also known as the SAFE Port Act; Public 
                Law 109-347); and
                    (G) promoting and facilitating worldwide the 
                promulgation of best practices for security of weapons 
                usable and other nuclear materials.
            (4) To accelerate, expand, and strengthen the Research and 
        Development program, with a particular emphasis on--
                    (A) improvement of United States government 
                capability for both short and long-term, and 
                innovative, research and development that addresses 
                emerging WMD proliferation and terrorism concerns and 
                will maintain United States technological advantage, 
                including the capacity to detect nuclear material 
                origin, uranium enrichment, and plutonium reprocessing; 
                and
                    (B) efforts to significantly expand the scientific 
                research and development skills and resources available 
                to the Department of Energy's programs to prevent WMD 
                proliferation and terrorism.

Subtitle D--Office of the United States Coordinator for the Prevention 
       of Weapons of Mass Destruction Proliferation and Terrorism

SEC. 1241. OFFICE OF THE UNITED STATES COORDINATOR FOR THE PREVENTION 
              OF WEAPONS OF MASS DESTRUCTION PROLIFERATION AND 
              TERRORISM.

    (a) Establishment.--There is established within the Executive 
Office of the President an office to be known as the ``Office of the 
United States Coordinator for the Prevention of Weapons of Mass 
Destruction Proliferation and Terrorism'' (in this subtitle referred to 
as the ``Office'').
    (b) Officers.--
            (1) United states coordinator.--The head of the Office 
        shall be the United States Coordinator of the Office (in this 
        subtitle referred to as the ``Coordinator'').
            (2) Deputy united states coordinator.--There shall be a 
        Deputy United States Coordinator of the Office (in this 
        subtitle referred to as the ``Deputy Coordinator''), who 
        shall--
                    (A) assist the Coordinator in carrying out the 
                responsibilities of the Coordinator under this 
                subtitle; and
                    (B) serve as Acting Coordinator in the absence of 
                the Coordinator and during any vacancy in the office of 
                Coordinator.
            (3) Appointment.--The Coordinator and Deputy Coordinator 
        shall be appointed by the President, by and with the advice and 
        consent of the Senate, and shall be responsible on a full-time 
        basis for the duties and responsibilities described in this 
        section.
            (4) Limitation.--No person shall serve as Coordinator or 
        Deputy Coordinator while serving in any other position in the 
        Federal Government.
    (c) Duties.--The responsibilities of the Coordinator shall include 
the following:
            (1) Serving as the advisor to the President on all matters 
        relating to the prevention of weapons of mass destruction (WMD) 
        proliferation and terrorism.
            (2) Formulating a comprehensive and well-coordinated United 
        States strategy and policies for preventing WMD proliferation 
        and terrorism, including--
                    (A) measurable milestones and targets to which 
                departments and agencies can be held accountable;
                    (B) identification of gaps, duplication, and other 
                inefficiencies in existing activities, initiatives, and 
                programs and the steps necessary to overcome these 
                obstacles;
                    (C) plans for preserving the nuclear security 
                investment the United States has made in Russia, the 
                former Soviet Union, and other countries;
                    (D) prioritized plans to accelerate, strengthen, 
                and expand the scope of existing initiatives and 
                programs, which include identification of vulnerable 
                sites and material and the corresponding actions 
                necessary to eliminate such vulnerabilities;
                    (E) new and innovative initiatives and programs to 
                address emerging challenges and strengthen United 
                States capabilities, including programs to attract and 
                retain top scientists and engineers and strengthen the 
                capabilities of United States national laboratories;
                    (F) plans to coordinate United States activities, 
                initiatives, and programs relating to the prevention of 
                WMD proliferation and terrorism, including those of the 
                Department of Energy, Department of Defense, Department 
                of State, and Department of Homeland Security, and 
                including the Proliferation Security Initiative, the G-
                8 Global Partnership Against the Spread of Weapons and 
                Materials of Mass Destruction, United Nations Security 
                Council Resolution 1540, and the Global Initiative to 
                Combat Nuclear Terrorism;
                    (G) plans to strengthen United States commitments 
                to international regimes and significantly improve 
                cooperation with other countries relating to the 
                prevention of WMD proliferation and terrorism, with 
                particular emphasis on work with the international 
                community to develop laws and an international legal 
                regime with universal jurisdiction to enable any state 
                in the world to interdict and prosecute smugglers of 
                WMD material, as recommended by the 9/11 Commission; 
                and
                    (H) identification of actions necessary to 
                implement the recommendations of the Commission on the 
                Prevention of Weapons of Mass Destruction Proliferation 
                and Terrorism established under subtitle E of this 
                title.
            (3) Leading inter-agency coordination of United States 
        efforts to implement the strategy and policies described in 
        this section.
            (4) Conducting oversight and evaluation of accelerated and 
        strengthened implementation of initiatives and programs to 
        prevent WMD proliferation and terrorism by relevant government 
        departments and agencies.
            (5) Overseeing the development of a comprehensive and 
        coordinated budget for programs and initiatives to prevent WMD 
        proliferation and terrorism, ensuring that such budget 
        adequately reflects the priority of the challenges and is 
        effectively executed, and carrying out other appropriate 
        budgetary authorities.
    (d) Staff.--The Coordinator may appoint and terminate such 
personnel as may be necessary to enable the Coordinator to perform his 
or her duties.
    (e) Consultation With Commission.--The Office and the Coordinator 
shall regularly consult with and strive to implement the 
recommendations of the Commission on the Prevention of Weapons of Mass 
Destruction Proliferation and Terrorism, established under subtitle E 
of this title.
    (f) Annual Report on Strategic Plan.--For fiscal year 2009 and each 
fiscal year thereafter, the Coordinator shall submit to Congress, at 
the same time as the submission of the budget for that fiscal year 
under title 31, United States Code, a report on the strategy and 
policies developed pursuant to subsection (c)(2), together with any 
recommendations of the Coordinator for legislative changes that the 
Coordinator considers appropriate with respect to such strategy and 
policies and their implementation or the Office of the Coordinator.

SEC. 1242. REQUEST FOR CORRESPONDING RUSSIAN COORDINATOR.

    It is the sense of the Congress that, as soon as practical, the 
President should personally request the President of the Russian 
Federation to designate an official of the Russian Federation having 
authorities and responsibilities for preventing weapons of mass 
destruction (WMD) proliferation and terrorism commensurate with those 
of the Coordinator, and with whom the Coordinator should coordinate 
planning and implementation of activities in the Russian Federation 
having the purpose of preventing WMD proliferation and terrorism.

Subtitle E--Commission on the Prevention of Weapons of Mass Destruction 
                      Proliferation and Terrorism

SEC. 1251. COMMISSION ON THE PREVENTION OF WEAPONS OF MASS DESTRUCTION 
              PROLIFERATION AND TERRORISM.

    There is established the Commission on the Prevention of Weapons of 
Mass Destruction Proliferation and Terrorism (in this subtitle referred 
to as the ``Commission'').

SEC. 1252. PURPOSES.

    (a) In General.--The purposes of the Commission are to--
            (1) assess current activities, initiatives, and programs to 
        prevent WMD proliferation and terrorism; and
            (2) provide a clear and comprehensive strategy and concrete 
        recommendations for such activities, initiatives, and programs.
    (b) In Particular.--The Commission shall give particular attention 
to activities, initiatives, and programs to secure all nuclear weapons-
usable material around the world and to significantly accelerate, 
expand, and strengthen, on an urgent basis, United States and 
international efforts to prevent, stop, and counter the spread of 
nuclear weapons capabilities and related equipment, material, and 
technology to terrorists and states of concern.

SEC. 1253. COMPOSITION.

    (a) Members.--The Commission shall be composed of 9 members, of 
whom--
            (1) 3 members shall be appointed by the President;
            (2) 2 members shall be appointed by the majority leader of 
        the Senate;
            (3) 1 member shall be appointed by the minority leader of 
        the Senate;
            (4) 2 members shall be appointed by the Speaker of the 
        House of Representatives; and
            (5) 1 member shall be appointed by the minority leader of 
        the House of Representatives.
    (b) Co-Chairmen.--The Commission shall have two co-chairmen 
designated from among the members of the Commission. Of the co-
chairmen--
            (1) 1 shall be designated by the President; and
            (2) 1 shall be designated jointly by the majority leader of 
        the Senate and the Speaker of the House of Representatives.
    (c) Deadline for Appointment.--All members of the Commission shall 
be appointed within 90 days of the date of the enactment of this Act.
    (d) Initial Meeting.--The Commission shall meet and begin the 
operations of the Commission as soon as practicable.
    (e) Quorum; Vacancies.--After its initial meeting, the Commission 
shall meet upon the call of the co-chairmen or a majority of its 
members. Six members of the Commission shall constitute a quorum. Any 
vacancy in the Commission shall not affect its powers, but shall be 
filled in the same manner in which the original appointment was made.

SEC. 1254. RESPONSIBILITIES.

    (a) In General.--The Commission shall address--
            (1) the roles, missions, and structure of all relevant 
        government departments, agencies, and other actors, including 
        the Office of the United States Coordinator for the Prevention 
        of Weapons of Mass Destruction Proliferation and Terrorism 
        established under subtitle D of this title;
            (2) inter-agency coordination;
            (3) United States commitments to international regimes and 
        cooperation with other countries; and
            (4) the threat of weapons of mass destruction proliferation 
        and terrorism to the United States and its interests and 
        allies, including the threat posed by black-market networks, 
        and the effectiveness of the responses by the United States and 
        the international community to such threats.
    (b) Follow-on Baker-Cutler Report.--The Commission shall also 
reassess, and where necessary update and expand on, the conclusions and 
recommendations of the report titled ``A Report Card on the Department 
of Energy's Nonproliferation Programs with Russia'' of January 2001 
(also known as the ``Baker-Cutler Report'') and implementation of such 
recommendations.

SEC. 1255. POWERS.

    (a) Hearings and Evidence.--The Commission or, on the authority of 
the Commission, any subcommittee or member thereof, may, for the 
purpose of carrying out this subtitle, hold such hearings and sit and 
act at such times and places, take such testimony, receive such 
evidence, and administer such oaths as the Commission or such designate 
subcommittee or designated member may determine advisable.
    (b) Contracting.--The Commission may, to such extent and in such 
amounts as are provided in appropriations Acts, enter into contracts to 
enable the Commission to discharge its duties under this subtitle.
    (c) Information From Federal Agencies.--
            (1) In general.--The Commission is authorized to secure 
        directly from any executive department, bureau, agency, board, 
        commission, office, independent establishment, or 
        instrumentality of the Government, information, suggestions, 
        estimates, and statistics for the purposes of this subtitle. 
        Each department, bureau, agency, board, commission, office, 
        independent establishment, or instrumentality shall, to the 
        extent authorized by law, furnish such information, 
        suggestions, estimates, and statistics directly to the 
        Commission, upon request made by the co-chairmen, the chairman 
        of any subcommittee created by a majority of the Commission, or 
        any member designated by a majority of the Commission.
            (2) Receipt, handling, storage, and dissemination.--
        Information shall only be received, handled, stored, and 
        disseminated by members of the Commission and its staff 
        consistent with all applicable statutes, regulations, and 
        Executive orders.
    (d) Assistance From Federal Agencies.--
            (1) General services administration.--The Administrator of 
        General Services shall provide to the Commission on a 
        reimbursable basis administrative support and other services 
        for the performance of the Commission's functions.
            (2) Other departments and agencies.--In addition to the 
        assistance prescribed in paragraph (1), departments and 
        agencies of the United States may provide to the Commission 
        such services, funds, facilities, staff, and other support 
        services as they may determine advisable and as may be 
        authorized by law.
    (e) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.
    (f) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as departments 
and agencies of the United States.

SEC. 1256. NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

    (a) In General.--The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to the Commission.
    (b) Public Meetings and Release of Public Versions of Reports.--The 
Commission shall--
            (1) hold public hearings and meetings to the extent 
        appropriate; and
            (2) release public versions of the report required under 
        section 1257.
    (c) Public Hearings.--Any public hearings of the Commission shall 
be conducted in a manner consistent with the protection of information 
provided to or developed for or by the Commission as required by any 
applicable statute, regulation, or Executive order.

SEC. 1257. REPORT.

    Not later than 180 days after the appointment of the Commission, 
the Commission shall submit to the President and Congress a final 
report containing such findings, conclusions, and recommendations for 
corrective measures as have been agreed to by a majority of Commission 
members.

SEC. 1258. TERMINATION.

    (a) In General.--The Commission, and all the authorities of this 
subtitle, shall terminate 60 days after the date on which the final 
report is submitted under section 1257.
    (b) Administrative Activities Before Termination.--The Commission 
may use the 60-day period referred to in subsection (a) for the purpose 
of concluding its activities, including providing testimony to 
committees of Congress concerning its report and disseminating the 
final report.

         TITLE XIII--NUCLEAR BLACK MARKET COUNTER-TERRORISM ACT

SEC. 1301. SHORT TITLE.

    This title may be cited as the ``Nuclear Black Market Counter-
Terrorism Act of 2007''.

SEC. 1302. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs, the Committee on Armed Services, the Permanent 
        Select Committee on Intelligence, and the Committee on 
        Appropriations of the House of Representatives, and the 
        Committee on Foreign Relations, the Committee on Armed 
        Services, the Select Committee on Intelligence, and the 
        Committee on Appropriations of the Senate.
            (2) Foreign person.--The term ``foreign person''--
                    (A) means any person who is not a citizen or 
                national of the United States or lawfully admitted to 
                the United States for permanent residence under the 
                Immigration and Nationality Act;
                    (B) includes any foreign corporation, international 
                organization, or foreign government; and
                    (C) includes, for purposes of subsections (a) and 
                (b) of section 1311, successors, assigns, subsidiaries, 
                and subunits of the person described in subparagraph 
                (A) or (B) (as the case may be), and other business 
                organizations or associations in which that person may 
                be deemed to have a controlling interest.
            (3) Person.--The term ``person''--
                    (A) means a natural person as well as a 
                corporation, business association, partnership, 
                society, trust, any other nongovernmental entity, 
                organization, or group, and any governmental entity, or 
                subsidiary, subunit, or parent entity thereof, and any 
                successor of any such entity; and
                    (B) in the case of a country where it may be 
                impossible to identify a specific governmental entity 
                referred to in subparagraph (A), means all activities 
                of that government relating to the development or 
                production of any nuclear equipment or technology.
            (4) United states foreign assistance.--The term ``United 
        States foreign assistance'' means assistance under the foreign 
        operations, export financing, and related programs 
        appropriations Act for a fiscal year, and assistance under the 
        Foreign Assistance Act of 1961.

      Subtitle A--Sanctions for Transfers of Nuclear Enrichment, 
    Reprocessing, and Weapons Technology, Equipment, and Materials 
                Involving Foreign Persons and Terrorists

SEC. 1311. AUTHORITY TO IMPOSE SANCTIONS ON FOREIGN PERSONS.

    (a) Determination of Nuclear Activities by Foreign Persons.--
            (1) Determination.--Notwithstanding any other provision of 
        law, the President shall impose the sanctions described in 
        subsection (b) whenever the President determines that a foreign 
        person, on or after the date of the enactment of this Act, 
        participated in the export, transfer or trade of--
                    (A) nuclear enrichment or reprocessing equipment, 
                materials, or technology to any non-nuclear-weapon 
                state (as defined in section 102(c) of the Arms Export 
                Control Act) that--
                            (i) does not possess functioning nuclear 
                        enrichment or reprocessing plants as of January 
                        1, 2004; and
                            (ii)(I) does not have in force an 
                        additional protocol with the International 
                        Atomic Energy Agency for the application of 
                        safeguards (as derived from IAEA document 
                        INFCIRC/540 and related corrections and 
                        additions); or
                            (II) is developing, manufacturing, or 
                        acquiring a nuclear explosive device; or
                    (B) any nuclear explosive device, or design 
                information or component, equipment, materials, or 
                other items or technology that--
                            (i) is designated for national export 
                        controls under the Nuclear Supplier Group 
                        Guidelines for the Export of Nuclear Material, 
                        Equipment and Technology (published by the 
                        International Atomic Energy Agency as IAEA 
                        document INFCIRC/254/Rev. 6/Part 1 and 
                        subsequent revisions) and the Guidelines for 
                        Transfers of Nuclear-Related Dual-Use 
                        Equipment, Materials, Software and Related 
                        Technology (published as IAEA document INFCIRC/
                        254/Rev. 5/ Part 2 and subsequent revisions); 
                        and
                            (ii) contributes to the development, 
                        manufacture, or acquisition of a nuclear 
                        explosive device by--
                                    (I) a non-nuclear weapon state; or
                                    (II) a foreign person.
            (2) Definition.--For purposes of paragraph (1), the term 
        ``participated'' means sold, transferred, brokered, financed, 
        assisted, delivered, or otherwise provided or received, and 
        includes any conspiracy or attempt to engage in any of such 
        activities, as well as facilitating such activities by any 
        other person.
    (b) Sanctions.--The sanctions referred to in subsection (a) that 
are to be imposed on a foreign person are the following:
            (1) No assistance may be provided to the foreign person 
        under the Foreign Assistance Act of 1961, and the foreign 
        person may not participate in any assistance program of the 
        United States Government. Any such assistance being provided to 
        the foreign person, and any participation in such assistance 
        program by the foreign person, on the date on which the 
        sanction under this paragraph is imposed shall be terminated as 
        of such date.
            (2) The United States Government may not export to the 
        foreign person, or grant a license or other approval to export 
        to or import from the foreign person of, any defense articles, 
        defense services, or design or construction services under the 
        Foreign Assistance Act of 1961 or the Arms Export Control Act. 
        Any contract to export such articles or services, or license or 
        approval to export or import, under either such Act, that is in 
        effect on the date on which the sanction under this paragraph 
        is imposed shall be terminated as of such date.
            (3) Licenses or any other approval may not be issued for 
        the export to the foreign person of any goods or technology 
        subject to the jurisdiction of the Export Administration 
        Regulations under chapter VII of title 15, Code of Federal 
        Regulations (or successor regulations), other than food and 
        other agricultural commodities, medicines and medical 
        equipment. Any such license or approval that is in effect on 
        the on the date on which the sanction under this paragraph is 
        imposed, shall be terminated as of such date.
            (4) No department or agency of the United States Government 
        may procure, or enter into any contract for the procurement of, 
        any goods or services from the foreign person. The Secretary of 
        the Treasury shall prohibit the importation into the United 
        States of goods, technology, or services produced or provided 
        by the foreign person, other than information or informational 
        materials within the meaning of section 203(b)(3) of the 
        International Emergency Economic Powers Act (50 U.S.C. 
        1702(b)(3)).
    (c) Period Sanctions in Effect.--The sanctions referred to in 
subsection (b) should be imposed for not less than two years, but may 
be imposed for longer periods. The President may suspend after one year 
any sanction imposed pursuant to this section 15 days after submitting 
to the appropriate congressional committees a report explaining--
            (1) the reasons for suspending the sanction;
            (2) how the purposes of this title and United States 
        national security are furthered by such suspension; and
            (3) what measures the United States will take or is taking 
        to ensure that the foreign person will not engage in similar 
        activities in the future.
    (d) Waiver Authority.--The President may waive the imposition of 
any sanction under subsection (b) if the President certifies to the 
appropriate congressional committees that the waiver--
            (1) is important to the national security interests of the 
        United States; and
            (2) would further the purposes of this title.

SEC. 1312. PRESIDENTIAL NOTIFICATION ON ACTIVITIES OF FOREIGN PERSONS.

    (a) Reports to Congress.--Not later than 180 days after the date of 
enactment of this Act, and not later than January 31 of each year 
thereafter, the President shall submit to the appropriate congressional 
committees a report detailing any activity by any foreign person 
described in section 1311. This report shall also include a description 
of any sanctions that have been imposed and their duration.
    (b) Publication.--When the President imposes sanctions under 
section 1311, the President shall, to the maximum extent possible in 
unclassified form, publish in the Federal Register, not later than 15 
days after reporting such sanctions to the appropriate congressional 
committees under subsection (a), the identity of each sanctioned 
foreign person, the period for which sanctions will be in effect, and 
the reasons for the sanctions.

   Subtitle B--Further Actions Against Corporations Associated With 
                       Sanctioned Foreign Persons

SEC. 1321. FINDINGS.

    The Congress finds the following:
            (1) Foreign persons and corporations engaging in nuclear 
        black-market activities are motivated by reasons of commercial 
        gain and profit.
            (2) Sanctions targeted solely against the business 
        interests of the sanctioned person or business concern may be 
        unsuccessful in halting these proliferation activities, as the 
        sanctions may be seen merely as the cost of doing business, 
        especially if the business interests of the parent or 
        subsidiary corporate entities are unaffected by the sanctions.
            (3) Such narrow targeting of sanctions creates the 
        incentive to create shell and ``carve-out'' corporate entities 
        to perform the proliferation activities and attract sanctions, 
        leaving all other aspects of the larger corporation unaffected.
            (4) To dissuade corporations from allowing their associated 
        commercial entities or persons from engaging in proliferation 
        black-market activities, they must also be made to suffer 
        financial loss and commercial disadvantage, and parent and 
        subsidiary commercial enterprises must be held responsible for 
        the proliferation activities of their associated entities.
            (5) If a corporation perceives that the United States 
        Government will do everything possible to make its commercial 
        activity difficult around the world, then that corporation has 
        a powerful commercial incentive to prevent any further 
        proliferation activity by its associated entities.
            (6) Therefore, the United States Government should seek to 
        increase the risk of commercial loss for associated corporate 
        entities for the proliferation actions of their subsidiaries.

SEC. 1322. CAMPAIGN BY UNITED STATES GOVERNMENT OFFICIALS.

    The President shall instruct all agencies of the United States 
Government to make every effort in their interactions with foreign 
government and business officials to persuade foreign governments and 
relevant corporations not to engage in any business transaction with a 
foreign person sanctioned under section 1311, including any entity that 
is a parent or subsidiary of the sanctioned foreign person, for the 
duration of the sanctions.

SEC. 1323. COORDINATION.

    The Secretary of State shall coordinate the actions of the United 
States Government under section 1322.

SEC. 1324. REPORT.

    Not later than one year after the date of the enactment of this Act 
and annually thereafter, the Secretary of State shall report to the 
appropriate congressional committees on the actions taken by the United 
States to carry out section 1322.

         Subtitle C--Rollback of Nuclear Proliferation Networks

SEC. 1331. NONPROLIFERATION AS A CONDITION OF UNITED STATES ASSISTANCE.

    United States foreign assistance should only be provided to 
countries that--
            (1) are not cooperating with any non-nuclear-weapon state 
        or any foreign group or individual who may be engaged in, 
        planning, or assisting any international terrorist group in the 
        development of a nuclear explosive device or its means of 
        delivery and are taking all necessary measures to prevent their 
        nationals and other persons and entities subject to their 
        jurisdiction from participating in such cooperation; and
            (2) are fully and completely cooperating with the United 
        States in its efforts to eliminate nuclear black-market 
        networks or activities.

SEC. 1332. REPORT ON IDENTIFICATION OF NUCLEAR PROLIFERATION NETWORK 
              HOST COUNTRIES.

    (a) Report.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act and annually thereafter, the 
        President shall submit a report to the appropriate 
        congressional committees that--
                    (A) identifies any country in which manufacturing, 
                brokering, shipment, transshipment, or other activity 
                occurred in connection with the transactions of the 
                nuclear proliferation network that supplied Libya, 
                Iran, North Korea, and possibly other countries or 
                entities; and
                    (B) identifies any country in which manufacturing, 
                brokering, shipment, transshipment, or other activity 
                occurred for the purpose of supplying nuclear 
                technology, equipment, or material to another country 
                or foreign person that could, in the President's 
                judgment, contribute to the development, manufacture, 
                or acquisition, of a nuclear explosive device by a 
                country or foreign person of concern to the United 
                States
            (2) Additional information.--The report under paragraph (1) 
        shall also include a description of the extent to which each 
        country described in the report is, in the opinion of the 
        President, fully cooperating with the United States in its 
        efforts to eliminate the nuclear proliferation network 
        described in paragraph (1)(A) or stopping the activities 
        described in paragraph (1)(B). The President shall base the 
        determination regarding a country's cooperation with the United 
        States in part on the degree to which the country has satisfied 
        United States requests for assistance and information, 
        including whether the United States has asked and been granted 
        direct investigatory access to key persons involved in the 
        nuclear proliferation network described in paragraph (1)(A) or 
        the activities described in paragraph (1)(B).
    (b) Classification.--Reports under this section shall be 
unclassified to the maximum extent possible.

SEC. 1333. SUSPENSION OF ARMS SALES LICENSES AND DELIVERIES TO NUCLEAR 
              PROLIFERATION HOST COUNTRIES.

    (a) Suspension.--Upon submission of the report and any additional 
information under section 1332 to the appropriate congressional 
committees, the President shall suspend all licenses issued under the 
Arms Export Control Act, and shall prohibit any licenses to be issued 
under that Act, for exports to, or imports from, any country described 
in the report, unless the President certifies to the appropriate 
congressional committees that such country--
            (1)(A) has fully investigated or is fully investigating the 
        activities of any person or entity within its territory that 
        has participated in the nuclear proliferation network described 
        in section 1332(a)(1)(A) or the activities described in section 
        1332(a)(1)(B); and
            (B) has taken or is taking effective steps to permanently 
        halt similar illicit nuclear proliferation activities;
            (2) has been or is fully cooperating with the United States 
        and other appropriate international organizations in 
        investigating and eliminating the nuclear proliferation 
        network, any successor networks operating within its territory, 
        or other illicit nuclear proliferation activities; and
            (3) has enacted or is enacting new laws, promulgated 
        decrees or regulations, or established practices designed to 
        prevent future such activities from occurring within its 
        territory.
    (b) Waiver.--The President may waive the requirements of subsection 
(a) in a fiscal year if--
            (1) the President has certified to the appropriate 
        congressional committees that the waiver is important to the 
        national security of the United States; and
            (2) at least 5 days have elapsed since making the 
        certification under paragraph (1).

        TITLE XIV--9/11 COMMISSION INTERNATIONAL IMPLEMENTATION

SEC. 1401. SHORT TITLE; TABLE OF CONTENTS.

    This title may be cited as the ``9/11 Commission International 
Implementation Act of 2007''.

Subtitle A--Quality Educational Opportunities in Arab and Predominantly 
                           Muslim Countries.

SEC. 1411. FINDINGS; POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) The report of the National Commission on Terrorist 
        Attacks Upon the United States stated that ``[e]ducation that 
        teaches tolerance, the dignity and value of each individual, 
        and respect for different beliefs is a key element in any 
        global strategy to eliminate Islamic terrorism''.
            (2) The report of the National Commission on Terrorist 
        Attacks Upon the United States concluded that ensuring 
        educational opportunity is essential to the efforts of the 
        United States to defeat global terrorism and recommended that 
        the United States Government ``should offer to join with other 
        nations in generously supporting [spending funds] ... directly 
        on building and operating primary and secondary schools in 
        those Muslim states that commit to sensibly investing financial 
        resources in public education''.
            (3) While Congress endorsed such a program in the 
        Intelligence Reform and Terrorism Prevention Act of 2004 
        (Public Law 108-458), such a program has not been established.
    (b) Policy.--It is the policy of the United States--
            (1) to work toward the goal of dramatically increasing the 
        availability of modern basic education through public schools 
        in Arab and predominantly Muslim countries, which will reduce 
        the influence of radical madrassas and other institutions that 
        promote religious extremism;
            (2) to join with other countries in generously supporting 
        the International Arab and Muslim Youth Opportunity Fund 
        authorized under section 7114 of the Intelligence Reform and 
        Terrorism Prevention Act of 2004, as amended by section 1412 of 
        this Act, with the goal of building and operating public 
        primary and secondary schools in Arab and predominantly Muslim 
        countries that commit to sensibly investing the resources of 
        such countries in modern public education;
            (3) to offer additional incentives to increase the 
        availability of modern basic education in Arab and 
        predominantly Muslim countries; and
            (4) to work to prevent financing of educational 
        institutions that support radical Islamic fundamentalism.

SEC. 1412. INTERNATIONAL ARAB AND MUSLIM YOUTH OPPORTUNITY FUND.

    Section 7114 of the Intelligence Reform and Terrorism Prevention 
Act of 2004 (22 U.S.C. 2228) is amended to read as follows:

``SEC. 7114. INTERNATIONAL ARAB AND MUSLIM YOUTH OPPORTUNITY FUND.

    ``(a) Findings.--Congress finds the following:
            ``(1) The United Nation's 2003 Arab Human Development 
        Report states that the quantitative expansion of Arab education 
        remains incomplete. The report asserts that high rates of 
        illiteracy, especially among women, persist. Children continue 
        to be denied their basic right to elementary education. Higher 
        education is characterized by decreasing enrollment rates 
        compared to developed countries, and public expenditures on 
        education has declined since 1985.
            ``(2) The UN report cities the decline in quality as the 
        most significant challenge in the educational arena in Arab 
        countries.
            ``(3) Researchers argue that curricula taught in Arab 
        countries seem to encourage submission, obedience, 
        subordination, and compliance, rather than free critical 
        thinking.
            ``(4) Despite major efforts to improve pre-school education 
        in some Arab countries, the quality of education provided in 
        kindergartens in the region does not fulfill the requirements 
        for advancing and developing children's capabilities in order 
        to help socialize a creative and innovative generation.
            ``(5) Many factors in Arab countries adversely affect 
        teachers' capabilities, such as low salaries (which force 
        educators in to take on other jobs that consume their energy 
        and decrease the time they can devote to caring for their 
        students), lack of facilities, poorly designed curricula, 
        indifferent quality of teacher training, and overcrowded 
        classes.
            ``(6) Educational attainments in Arab and non-Arab Muslim 
        countries--from literacy rates to mathematical and science 
        achievements--are well below global standards.
            ``(7) It is estimated that there are 65,000,000 illiterate 
        adult Arabs, and two-thirds of them are women.
            ``(8) Educational enrollment for Arab countries rose from 
        31,000,000 children in 1980 to approximately 56,000,000 
        children in 1995. Yet despite this increase, 10,000,000 
        children between the ages of 6 and 15 are currently not in 
        school.
            ``(9) In the Middle East, roughly 10,000,000 children still 
        do not go to school.
            ``(10) Even though women's access to education has tripled 
        in Arab countries since 1970, gender disparities still persist. 
        Illiteracy in Arab countries affects women disproportionately. 
        Women make up two-thirds of illiterate adults, with most living 
        in rural areas.
            ``(11) The publication of books and other reading materials 
        in Arab countries faces many major challenges, including the 
        small number of readers due to high rates of illiteracy in some 
        such countries and the weak purchasing power of the Arab 
        reader. The limited readership in Arab countries is reflected 
        in the small number of books published in such countries, which 
        does not exceed 1.1 percent of world production, although Arabs 
        constitute five percent of the world population.
            ``(12) The nexus between health and education in Arab 
        countries is very strong. Gains in women's education accounted 
        for an estimated 43 percent reduction in child malnutrition 
        between 1970 and 1995. Educated mothers are more likely to 
        better space births, to have adequate prenatal care, and to 
        immunize their children.
            ``(13) Many educational systems in Arab and non-Arab Muslim 
        countries widen the gap between rich and poor: while rich 
        students attend excellent private schools, poor children 
        receive grossly inadequate schooling.
    ``(b) Purpose.--The purpose of this section is to strengthen the 
public educational systems in Arab and predominantly Muslim countries 
by--
            ``(1) authorizing the establishment of an International 
        Arab and Muslim Youth Educational Fund through which the United 
        States dedicates resources, either through a separate fund or 
        through an international organization, to assist those 
        countries that commit to education reform; and
            ``(2) providing resources for the Fund to help strengthen 
        the public educational systems in those countries.
    ``(c) Establishment of Fund.--
            ``(1) Authority.--The President is authorized to establish 
        an International Arab and Muslim Youth Opportunity Fund.
            ``(2) Location.--The Fund may be established--
                    ``(A) as a separate fund in the Treasury; or
                    ``(B) through an international organization or 
                international financial institution, such as the United 
                Nations Educational, Science and Cultural Organization, 
                the United Nations Development Program, or the 
                International Bank for Reconstruction and Development.
            ``(3) Transfers and receipts.--The head of any department, 
        agency, or instrumentality of the United States Government may 
        transfer any amount to the Fund, and the Fund may receive funds 
        from private enterprises, foreign countries, or other entities.
            ``(4) Activities of the fund.--The Fund shall support 
        programs described in this paragraph to improve the education 
        environment in Arab and predominantly Muslim countries.
                    ``(A) Assistance to enhance modern educational 
                programs.--
                            ``(i) The establishment in Arab and 
                        predominantly Muslim countries of a program of 
                        reform to create a modern education curriculum 
                        in the public educational systems in such 
                        countries.
                            ``(ii) The establishment or modernization 
                        of educational materials to advance a modern 
                        educational curriculum in such systems.
                            ``(iii) Teaching English to adults and 
                        children.
                            ``(iv) The establishment in Arab and 
                        predominantly Muslim countries of programs that 
                        enhance accountability, transparency, and 
                        interaction on education policy in such 
                        countries between the national government and 
                        the regional and local governments through 
                        improved information sharing and monitoring.
                            ``(v) The establishment in Arab and 
                        predominantly Muslim countries of programs to 
                        assist in the formulation of administration and 
                        planning strategies for all levels of 
                        government in such countries, including 
                        national, regional, and local governments.
                            ``(vi) The enhancement in Arab and 
                        predominantly Muslim countries of community, 
                        family, and student participation in the 
                        formulation and implementation of education 
                        strategies and programs in such countries.
                    ``(B) Assistance for training and exchange programs 
                for teachers, administrators, and students.--
                            ``(i) The establishment of training 
                        programs for teachers and educational 
                        administrators to enhance skills, including the 
                        establishment of regional centers to train 
                        individuals who can transfer such skills upon 
                        return to their countries.
                            ``(ii) The establishment of exchange 
                        programs for teachers and administrators in 
                        Arab and predominantly Muslim countries and 
                        with other countries to stimulate additional 
                        ideas and reform throughout the world, 
                        including teacher training exchange programs 
                        focused on primary school teachers in such 
                        countries.
                            ``(iii) The establishment of exchange 
                        programs for primary and secondary students in 
                        Muslim and Arab countries and with other 
                        countries to foster understanding and tolerance 
                        and to stimulate long-standing relationships.
                    ``(C) Assistance targeting primary and secondary 
                students.--
                            ``(i) The establishment in Arab and 
                        predominantly Muslim countries of after-school 
                        programs, civic education programs, and 
                        education programs focusing on life skills, 
                        such as inter-personal skills and social 
                        relations and skills for healthy living, such 
                        as nutrition and physical fitness.
                            ``(ii) The establishment in Arab and 
                        predominantly Muslim countries of programs to 
                        improve the proficiency of primary and 
                        secondary students in information technology 
                        skills.
                    ``(D) Assistance for development of youth 
                professionals.--
                            ``(i) The establishment of programs in Arab 
                        and predominantly Muslim countries to improve 
                        vocational training in trades to help 
                        strengthen participation of Muslims and Arabs 
                        in the economic development of their countries.
                            ``(ii) The establishment of programs in 
                        Arab and predominantly Muslim countries that 
                        target older Muslim and Arab youths not in 
                        school in such areas as entrepreneurial skills, 
                        accounting, micro-finance activities, work 
                        training, financial literacy, and information 
                        technology.
                    ``(E) Other types of assistance.--
                            ``(i) The translation of foreign books, 
                        newspapers, reference guides, and other reading 
                        materials into local languages.
                            ``(ii) The construction and equipping of 
                        modern community and university libraries.
            ``(5) Authorization of appropriations.--
                    ``(A) In general.--There is authorized to be 
                appropriated to the President to carry out this section 
                such sums as may be necessary for fiscal years 2008, 
                2009, and 2010.
                    ``(B) Availability.--Amounts appropriated pursuant 
                to the authorization of appropriations under subsection 
                (a) are authorized to remain available until expended.
                    ``(C) Additional funds.--Amounts authorized to be 
                appropriated under subsection (a) shall be in addition 
                to amounts otherwise available for such purposes.
            ``(6) Report to congress.--Not later than 180 days after 
        the date of the enactment of this section and annually 
        thereafter, the President shall submit to the appropriate 
        congressional committees a report on United States efforts to 
        assist in the improvement of educational opportunities for Arab 
        and predominantly Muslim children and youths, including the 
        progress made toward establishing the International Arab and 
        Muslim Youth Opportunity Fund.
            ``(7) Appropriate congressional committees defined.--In 
        this subsection, the term `appropriate congressional 
        committees' means the Committee on Foreign Affairs and the 
        Committee on Appropriations of the House of Representatives and 
        the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate.''.

SEC. 1413. ANNUAL REPORT TO CONGRESS.

    (a) In General.--Not later than June 1 of each year, the Secretary 
of State shall submit to the appropriate congressional committees a 
report on the efforts of Arab and predominantly Muslim countries to 
increase the availability of modern basic education and to close 
educational institutions that promote religious extremism and 
terrorism.
    (b) Contents.--Each report shall include--
            (1) a list of Arab and predominantly Muslim countries that 
        are making serious and sustained efforts to improve the 
        availability of modern basic education and to close educational 
        institutions that promote religious extremism and terrorism;
            (2) a list of such countries that are making efforts to 
        improve the availability of modern basic education and to close 
        educational institutions that promote religious extremism and 
        terrorism, but such efforts are not serious and sustained;
            (3) a list of such countries that are not making efforts to 
        improve the availability of modern basic education and to close 
        educational institutions that promote religious extremism and 
        terrorism; and
            (4) an assessment for each country specified in each of 
        paragraphs (1), (2), and (3) of the role of United States 
        assistance with respect to the efforts made or not made to 
        improve the availability of modern basic education and close 
        educational institutions that promote religious extremism and 
        terrorism.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means the Committee 
on Foreign Affairs and the Committee on Appropriations of the House of 
Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.

SEC. 1414. EXTENSION OF PROGRAM TO PROVIDE GRANTS TO AMERICAN-SPONSORED 
              SCHOOLS IN ARAB AND PREDOMINANTLY MUSLIM COUNTRIES TO 
              PROVIDE SCHOLARSHIPS.

    (a) Findings.--Congress finds the following:
            (1) Section 7113 of the Intelligence Reform and Terrorism 
        Prevention Act of 2004 (Pub. Law 108-458) authorized the 
        establishment of a pilot program to provide grants to American-
        sponsored schools in Arab and predominantly Muslim countries so 
        that such schools could provide scholarships to young people 
        from lower-income and middle-income families in such countries 
        to attend such schools, where they could improve their English 
        and be exposed to a modern education.
            (2) Since the date of the enactment of that section, the 
        Middle East Partnership Initiative has pursued implementation 
        of that program.
    (b) Extension of Program.--
            (1) In general.--Section 7113 of the Intelligence Reform 
        and Terrorism Prevention Act of 2004 is amended--
                    (A) in the section heading--
                            (i) by striking ``pilot''; and
                            (ii) by inserting ``arab and'' before 
                        ``predominantly muslim'';
                    (B) in subsection (a)(2), by inserting ``Arab and'' 
                before ``predominantly Muslim'';
                    (C) in subsection (b), in the matter preceding 
                paragraph (1), by inserting ``Arab and'' before 
                ``predominantly Muslim'';
                    (D) in subsection (c)--
                            (i) in the subsection heading, by striking 
                        ``Pilot'';
                            (ii) by striking ``pilot''; and
                            (iii) by striking ``countries with 
                        predominantly Muslim populations'' and 
                        inserting ``Arab and predominantly Muslim 
                        countries'';
                    (E) in subsection (d), by striking ``pilot'' each 
                place it appears;
                    (F) in subsection (f)--
                            (i) by striking ``pilot''; and
                            (ii) by inserting ``an Arab or'' before ``a 
                        predominantly Muslim country'';
                    (G) in subsection (g), in the first sentence--
                            (i) by inserting ``and April 15, 2008,'' 
                        after ``April 15, 2006,''; and
                            (ii) by striking ``pilot''; and
                    (H) in subsection (h)--
                            (i) by striking ``2005 and 2006'' inserting 
                        ``2007 and 2008'' ; and
                            (ii) by striking ``pilot''.
            (2) Conforming amendment.--Section 1(b) of such Act is 
        amended, in the table of contents, by striking the item 
        relating to section 7113 and inserting after section 7112 the 
        following new item:

``7113. Program to provide grants to American-sponsored schools in Arab 
                            and predominantly Muslim countries to 
                            provide scholarships.''.

Subtitle B--Democracy and Development in Arab and Predominantly Muslim 
                               Countries

SEC. 1421. PROMOTING DEMOCRACY AND DEVELOPMENT IN THE MIDDLE EAST, 
              CENTRAL ASIA, SOUTH ASIA, AND SOUTHEAST ASIA.

    (a) Findings.--Congress finds the following:
            (1) Al-Qaeda and affiliated groups have established a 
        terrorist network with linkages throughout the Middle East, 
        Central Asia, South Asia, and Southeast Asia.
            (2) While political repression and lack of economic 
        development do not justify terrorism, increased political 
        freedoms, poverty reduction, and broad-based economic growth 
        can contribute to an environment that undercuts tendencies and 
        conditions that facilitate the rise of terrorist organizations.
            (3) It is in the national security interests of the United 
        States to promote democracy, the rule of law, good governance, 
        sustainable development, a vigorous civil society, political 
        freedom, protection of minorities, independent media, women's 
        rights, private sector growth, and open economic systems in the 
        countries of the Middle East, Central Asia, South Asia, and 
        Southeast Asia.
    (b) Policy.--It is the policy of the United States to--
            (1) promote over the long-term, seizing opportunities 
        whenever possible in the short term, democracy, the rule of 
        law, good governance, sustainable development, a vigorous civil 
        society, political freedom, protection of minorities, 
        independent media, women's rights, private sector growth, and 
        open economic systems in the countries of the Middle East, 
        Central Asia, South Asia, and Southeast Asia;
            (2) provide assistance and resources to individuals and 
        organizations in the countries of the Middle East, Central 
        Asia, South Asia, and Southeast Asia that are committed to 
        promoting such objectives and to design strategies in 
        conjunction with such individuals and organizations; and
            (3) work with other countries and international 
        organizations to increase the resources devoted to promoting 
        such objectives.
    (c) Strategy.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State shall submit to 
appropriate congressional committees a report with a country-by-country 
five year strategy to promote the policy of the United States described 
in subsection (b). Such report shall contain an estimate of the funds 
necessary to implement such a strategy.
    (d) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means the Committee 
on Foreign Affairs and the Committee on Appropriations of the House of 
Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.

SEC. 1422. MIDDLE EAST FOUNDATION.

    (a) Purposes.--The purposes of this section are to support, through 
the provision of grants, technical assistance, training, and other 
programs, in the countries of the Middle East, the expansion of--
            (1) civil society;
            (2) opportunities for political participation for all 
        citizens;
            (3) protections for internationally recognized human 
        rights, including the rights of women;
            (4) educational system reforms;
            (5) independent media;
            (6) policies that promote economic opportunities for 
        citizens;
            (7) the rule of law; and
            (8) democratic processes of government.
    (b) Middle East Foundation.--
            (1) Designation.--The Secretary of State is authorized to 
        designate an appropriate private, nonprofit organization that 
        is organized or incorporated under the laws of the United 
        States or of a State as the Middle East Foundation (referred to 
        in this section as the ``Foundation'').
            (2) Funding.--
                    (A) Authority.--The Secretary of State is 
                authorized to provide funding to the Foundation through 
                the Middle East Partnership Initiative of the 
                Department of State. The Foundation shall use amounts 
                provided under this paragraph to carry out the purposes 
                specified in subsection (a), including through making 
                grants and providing other assistance to entities to 
                carry out programs for such purposes.
                    (B) Funding from other sources.--In determining the 
                amount of funding to provide to the Foundation, the 
                Secretary of State shall take into consideration the 
                amount of funds that the Foundation has received from 
                sources other than the United States Government.
            (3) Notification to congressional committees.--The 
        Secretary of State shall notify the Committee on Foreign 
        Affairs and the Committee on Appropriations of the House of 
        Representatives and the Committee on Foreign Relations and the 
        Committee on Appropriations of the Senate prior to designating 
        an appropriate organization as the Foundation.
    (c) Grants for Projects.--
            (1) Foundation to make grants.--The Secretary of State 
        shall enter into an agreement with the Foundation that requires 
        the Foundation to use the funds provided under subsection 
        (b)(2) to make grants to persons or entities (other than 
        governments or government entities) located in the Middle East 
        or working with local partners based in the Middle East to 
        carry out projects that support the purposes specified in 
        subsection (a).
            (2) Center for public policy.--Under the agreement 
        described in paragraph (1), the Foundation may make a grant to 
        an institution of higher education located in the Middle East 
        to create a center for public policy for the purpose of 
        permitting scholars and professionals from the countries of the 
        Middle East and from other countries, including the United 
        States, to carry out research, training programs, and other 
        activities to inform public policymaking in the Middle East and 
        to promote broad economic, social, and political reform for the 
        people of the Middle East.
            (3) Applications for grants.--An entity seeking a grant 
        from the Foundation under this section shall submit an 
        application to the head of the Foundation at such time, in such 
        manner, and containing such information as the head of the 
        Foundation may reasonably require.
    (d) Private Character of the Foundation.--Nothing in this section 
shall be construed to--
            (1) make the Foundation an agency or establishment of the 
        United States Government, or to make the officers or employees 
        of the Foundation officers or employees of the United States 
        for purposes of title 5, United States Code; or
            (2) to impose any restriction on the Foundation's 
        acceptance of funds from private and public sources in support 
        of its activities consistent with the purposes specified in 
        subsection (a).
    (e) Limitation on Payments to Foundation Personnel.--No part of the 
funds provided to the Foundation under this section shall inure to the 
benefit of any officer or employee of the Foundation, except as salary 
or reasonable compensation for services.
    (f) Retention of Interest.--The Foundation may hold funds provided 
under this section in interest-bearing accounts prior to the 
disbursement of such funds to carry out the purposes specified in 
subsection (a), and, only to the extent and in the amounts provided for 
in advance in appropriations Acts, may retain for use for such purposes 
any interest earned without returning such interest to the Treasury of 
the United States.
    (g) Financial Accountability.--
            (1) Independent private audits of the foundation.--The 
        accounts of the Foundation shall be audited annually in 
        accordance with generally accepted auditing standards by 
        independent certified public accountants or independent 
        licensed public accountants certified or licensed by a 
        regulatory authority of a State or other political subdivision 
        of the United States. The report of the independent audit shall 
        be included in the annual report required by subsection (h).
            (2) GAO audits.--The financial transactions undertaken 
        pursuant to this section by the Foundation may be audited by 
        the Government Accountability Office in accordance with such 
        principles and procedures and under such rules and regulations 
        as may be prescribed by the Comptroller General of the United 
        States.
            (3) Audits of grant recipients- .--
                    (A) In general.--A recipient of a grant from the 
                Foundation shall agree to permit an audit of the books 
                and records of such recipient related to the use of the 
                grant funds.
                    (B) Recordkeeping.--Such recipient shall maintain 
                appropriate books and records to facilitate an audit 
                referred to in subparagraph (A), including--
                            (i) separate accounts with respect to the 
                        grant funds;
                            (ii) records that fully disclose the use of 
                        the grant funds;
                            (iii) records describing the total cost of 
                        any project carried out using grant funds; and
                            (iv) the amount and nature of any funds 
                        received from other sources that were combined 
                        with the grant funds to carry out a project.
    (h) Annual Reports.--Not later than January 31, 2008, and annually 
thereafter, the Foundation shall submit to the appropriate 
congressional committees and make available to the public a report that 
includes, for the fiscal year prior to the fiscal year in which the 
report is submitted, a comprehensive and detailed description of--
            (1) the operations and activities of the Foundation that 
        were carried out using funds provided under this section;
            (2) grants made by the Foundation to other entities with 
        funds provided under this section;
            (3) other activities of the Foundation to further the 
        purposes specified in subsection (a); and
            (4) the financial condition of the Foundation.
    (i) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs and the Committee on Appropriations of the 
        House of Representatives and the Committee on Foreign Relations 
        and the Committee on Appropriations of the Senate.
            (2) Middle east.--The term ``Middle East'' means Algeria, 
        Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, 
        Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab 
        Emirates, West Bank and Gaza, and Yemen.
    (j) Expiration of Authority.--The authority provided under this 
section shall expire on September 30, 2017.
    (k) Repeal.--Section 534(k) of Public Law 109-102 is repealed.

          Subtitle C--Restoring United States Moral Leadership

SEC. 1431. ADVANCING UNITED STATES INTERESTS THROUGH PUBLIC DIPLOMACY.

    (a) Finding.--Congress finds that the report of the National 
Commission on Terrorist Attacks Upon the United States stated that, 
``Recognizing that Arab and Muslim audiences rely on satellite 
television and radio, the government has begun some promising 
initiatives in television and radio broadcasting to the Arab world, 
Iran, and Afghanistan. These efforts are beginning to reach large 
audiences. The Broadcasting Board of Governors has asked for much 
larger resources. It should get them.''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) The United States needs to improve its communication of 
        information and ideas to people in foreign countries, 
        particularly in countries with significant Muslim populations.
            (2) Public diplomacy should reaffirm the paramount 
        commitment of the United States to democratic principles, 
        including preserving the civil liberties of all the people of 
        the United States, including Muslim-Americans.
            (3) A significant expansion of United States international 
        broadcasting would provide a cost-effective means of improving 
        communication with countries with significant Muslim 
        populations by providing news, information, and analysis, as 
        well as cultural programming, through both radio and television 
        broadcasts.
    (c) Special Authority for Surge Capacity.--The United States 
International Broadcasting Act of 1994 (22 U.S.C. 6201 et seq.) is 
amended by adding at the end the following new section:

``SEC. 316. SPECIAL AUTHORITY FOR SURGE CAPACITY.

    ``(a) Emergency Authority.--
            ``(1) In general.--Whenever the President determines it to 
        be important to the national interests of the United States and 
        so certifies to the appropriate congressional committees, the 
        President, on such terms and conditions as the President may 
        determine, is authorized to direct any department, agency, or 
        other governmental entity of the United States to furnish the 
        Broadcasting Board of Governors with the assistance of such 
        department, agency, or entity based outside the United States 
        as may be necessary to provide international broadcasting 
        activities of the United States with a surge capacity to 
        support United States foreign policy objectives during a crisis 
        abroad.
            ``(2) Supersedes existing law.--The authority of paragraph 
        (1) shall supersede any other provision of law.
            ``(3) Surge capacity defined.--In this subsection, the term 
        `surge capacity' means the financial and technical resources 
        necessary to carry out broadcasting activities in a 
        geographical area during a crisis abroad.
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the President such sums as may be necessary for the 
        President to carry out this section, except that no such amount 
        may be appropriated which, when added to amounts previously 
        appropriated for such purpose but not yet obligated, would 
        cause such amounts to exceed $25,000,000.
            ``(2) Availability of funds.--Amounts appropriated pursuant 
        to the authorization of appropriations in this subsection are 
        authorized to remain available until expended.
            ``(3) Designation of appropriations.--Amounts appropriated 
        pursuant to the authorization of appropriations in this 
        subsection may be referred to as the `United States 
        International Broadcasting Surge Capacity Fund'.
    ``(c) Report.--The annual report submitted to the President and 
Congress by the Broadcasting Board of Governors under section 305(a)(9) 
shall provide a detailed description of any activities carried out 
under this section.
    ``(d) Authorization of Appropriations for United States 
International Broadcasting Activities.--
            ``(1) In general.--In addition to amounts otherwise 
        available for such purposes, there are authorized to be 
        appropriated such sums as may be necessary to carry out United 
        States Government broadcasting activities under this Act, 
        including broadcasting capital improvements, the United States 
        Information and Educational Exchange Act of 1948 (22 U.S.C. 
        1431 et seq.), and the Foreign Affairs Reform and Restructuring 
        Act of 1998 (as enacted in division G of the Omnibus 
        Consolidated and Emergency Supplemental Appropriations Act, 
        1999; Public Law 105-277), and to carry out other authorities 
        in law consistent with such purposes.
            ``(2) Availability of funds.--Amounts appropriated pursuant 
        to the authorization of appropriations in this section are 
        authorized to remain available until expended.''.

SEC. 1432. EXPANSION OF UNITED STATES SCHOLARSHIP, EXCHANGE, AND 
              LIBRARY PROGRAMS IN ARAB AND PREDOMINANTLY MUSLIM 
              COUNTRIES.

    (a) Report; Certification.--Not later than 30 days after the date 
of the enactment of this Act and every 180 days thereafter, the 
Secretary of State shall submit to the appropriate congressional 
committees a report on the recommendations of the National Commission 
on Terrorist Attacks Upon the United States and the policy goals 
described in section 7112 of the Intelligence Reform and Terrorism 
Prevention Act of 2004 (Public Law 108-458) for expanding United States 
scholarship, exchange, and library programs in Arab and predominantly 
Muslim countries. Such report shall include--
            (1) a certification by the Secretary of State that such 
        recommendations have been implemented and such policy goals 
        have been achieved; or
            (2) if the Secretary of State is unable to make the 
        certification described in paragraph (1), a description of--
                    (A) the steps taken to implement such 
                recommendations and achieve such policy goals;
                    (B) when the Secretary of State expects such 
                recommendations to be implemented and such policy goals 
                to be achieved; and
                    (C) any allocation of resources or other actions by 
                Congress the Secretary of State considers necessary to 
                implement such recommendations and achieve such policy 
                goals.
    (b) Termination of Duty to Report.--The duty to submit a report 
under subsection (a) shall terminate when the Secretary of State 
submits a certification pursuant to paragraph (1) of such subsection.
    (c) GAO Review of Certification.--If the Secretary of State submits 
a certification pursuant to subsection (a)(1), not later than 30 days 
after the submission of such certification, the Comptroller General of 
the United States shall submit to the appropriate congressional 
committees a report on whether the recommendations referred to in 
subsection (a) have been implemented and whether the policy goals 
described in section 7112 of the Intelligence Reform and Terrorism 
Prevention Act of 2004 have been achieved.
    (d) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Oversight and Government Reform of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations and the Committee on 
        Homeland Security and Governmental Affairs of the Senate.

SEC. 1433. UNITED STATES POLICY TOWARD DETAINEES.

    (a) Findings.--Congress finds the following:
            (1) The National Commission on Terrorist Attacks Upon the 
        United States (commonly referred to as the ``9/11 Commission'') 
        declared that the United States ``should work with friends to 
        develop mutually agreed-on principles for the detention and 
        humane treatment of captured international terrorists who are 
        not being held under a particular country's criminal laws'' and 
        recommended that the United States engage our allies ``to 
        develop a common coalition approach toward the detention and 
        humane treatment of captured terrorists'', drawing from Common 
        Article 3 of the Geneva Conventions.
            (2) Congress has passed several provisions of law that have 
        changed United States standards relating to United States 
        detainees, but such provisions have not been part of a common 
        coalition approach in this regard.
            (3) A number of investigations remain ongoing by countries 
        who are close United States allies in the war on terrorism 
        regarding the conduct of officials, employees, and agents of 
        the United States and of other countries related to conduct 
        regarding detainees.
    (b) Report; Certification.--Not later than 90 days after the date 
of the enactment of this Act and every 180 days thereafter, the 
Secretary of State, in consultation with the Attorney General and the 
Secretary of Defense, shall submit to the relevant congressional 
committees a report on any progress towards implementing the 
recommendations of the 9/11 Commission for engaging United States 
allies to develop a common coalition approach, in compliance with 
Common Article 3 of the Geneva Conventions, toward the detention and 
humane treatment of individuals detained during Operation Iraqi 
Freedom, Operation Enduring Freedom, or in connection with United 
States counterterrorist operations. Such report shall include--
            (1) a certification by the Secretary of State that such 
        recommendations have been implemented and such policy goals 
        have been achieved; or
            (2) if the Secretary of State is unable to make the 
        certification described in paragraph (1), a description of--
                    (A) the steps taken to implement such 
                recommendations and achieve such policy goals;
                    (B) when the Secretary of State expects such 
                recommendations to be implemented and such policy goals 
                to be achieved; and
                    (C) any allocation of resources or other actions by 
                Congress that the Secretary of State considers 
                necessary to implement such recommendations and achieve 
                such policy goals.
    (c) Termination of Duty to Report.--The duty to submit a report 
under subsection (a) shall terminate when the Secretary of State 
submits a certification pursuant to subsection (a)(1).
    (d) GAO Review of Certification.--If the Secretary of State submits 
a certification pursuant to subsection (a)(1), not later than 30 days 
after the submission of such certification, the Comptroller General 
shall submit to the relevant congressional committees a report on 
whether the recommendations described in subsection (a) have been 
implemented and whether the policy goals described in such subsection 
have been achieved.
    (e) Definition.--In this section, the term ``relevant congressional 
committees'' means--
            (1) with respect to the House of Representatives, the 
        Committee on Foreign Affairs, the Committee on Armed Services, 
        the Committee on Oversight and Government Reform, the Committee 
        on the Judiciary, and the Permanent Select Committee on 
        Intelligence; and
            (2) with respect to the Senate, the Committee on Foreign 
        Relations, the Committee on Armed Services, the Committee on 
        Homeland Security and Governmental Affairs, the Committee on 
        the Judiciary, and the Select Committee on Intelligence.

     Subtitle D--Strategy for the United States Relationship With 
                Afghanistan, Pakistan, and Saudi Arabia

SEC. 1441. AFGHANISTAN.

    (a) Statements of Policy.--The following shall be the policies of 
the United States:
            (1) The United States shall vigorously support the 
        Government of Afghanistan as it continues on its path toward a 
        broad-based, pluralistic, multi-ethnic, gender-sensitive, and 
        fully representative government in Afghanistan and shall 
        maintain its long-term commitment to the people of Afghanistan 
        by increased assistance and the continued deployment of United 
        States troops in Afghanistan as long as the Government of 
        Afghanistan supports such United States involvement.
            (2) In order to reduce the ability of the Taliban and Al-
        Qaeda to finance their operations through the opium trade, the 
        President shall engage aggressively with the Government of 
        Afghanistan and our NATO partners, and in consultation with 
        Congress, to assess the success of the Afghan counternarcotics 
        strategy in existence as of December 2006 and to explore all 
        additional options for addressing the narcotics crisis in 
        Afghanistan, including possible changes in rules of engagement 
        for NATO and Coalition forces for participation in actions 
        against narcotics trafficking and kingpins.
    (b) Statement of Congress.--Congress strongly urges that the 
Afghanistan Freedom Support Act of 2002 be reauthorized and updated to 
take into account new developments in Afghanistan and in the region so 
as to demonstrate the continued support by the United States for the 
people and Government of Afghanistan.
    (c) Emergency Increase in Policing Operations.--
            (1) In general.--The President shall make every effort, on 
        an emergency basis, to dramatically increase the numbers of 
        United States and international police trainers, mentors, and 
        police personnel operating in conjunction with Afghanistan 
        civil security forces and shall increase efforts to assist the 
        Government of Afghanistan in addressing the corruption crisis 
        that is threatening to undermine Afghanistan's future.
            (2) Report.--Not later than 180 days after the date of the 
        enactment of this Act and every six months thereafter until 
        September 31, 2010, the President shall submit to the Committee 
        on Foreign Affairs and the Committee on Appropriations of the 
        House of Representatives and the Committee on Foreign Relations 
        and the Committee on Appropriations of the Senate a report on 
        United States efforts to fulfill the requirements of this 
        subsection.
    (d) Emergency Energy Assistance.--
            (1) Finding.--Congress finds that short-term shortages of 
        energy may destabilize the Government of Afghanistan and 
        undermine the ability of President Karzai to carry out 
        critically needed reforms.
            (2) Authorization of assistance.--The President is 
        authorized to provide assistance for the acquisition of 
        emergency energy resources, including diesel fuel, to secure 
        the delivery of electricity to Kabul, Afghanistan, and other 
        major Afghan provinces and cities.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the President to carry out paragraph (2) 
        such sums as may be necessary for each of fiscal years 2008 and 
        2009.

SEC. 1442. PAKISTAN.

    (a) Findings.--Congress finds the following:
            (1) Since September 11, 2001, the Government of Pakistan 
        has been an important partner in helping the United States 
        remove the Taliban regime in Afghanistan and combating 
        international terrorism in the frontier provinces of Pakistan.
            (2) There remain a number of critical issues that threaten 
        to disrupt the relationship between the United States and 
        Pakistan, undermine international security, and destabilize 
        Pakistan, including--
                    (A) curbing the proliferation of nuclear weapons 
                technology;
                    (B) combating poverty and corruption;
                    (C) building effective government institutions, 
                especially secular public schools;
                    (D) promoting democracy and the rule of law, 
                particularly at the national level;
                    (E) addressing the continued presence of Taliban 
                and other violent extremist forces throughout the 
                country;
                    (F) maintaining the authority of the Government of 
                Pakistan in all parts of its national territory;
                    (G) securing the borders of Pakistan to prevent the 
                movement of militants and terrorists into other 
                countries and territories; and
                    (H) effectively dealing with Islamic extremism.
    (b) Statements of Policy.--The following shall be the policies of 
the United States:
            (1) To work with the Government of Pakistan to combat 
        international terrorism, especially in the frontier provinces 
        of Pakistan, and to end the use of Pakistan as a safe haven for 
        forces associated with the Taliban.
            (2) To establish a long-term strategic partnership with the 
        Government of Pakistan to address the issues described in 
        subparagraphs (A) through (H) of subsection (a)(2).
            (3) To dramatically increase funding for programs of the 
        United States Agency for International Development and the 
        Department of State that assist the Government of Pakistan in 
        addressing such issues, if the Government of Pakistan 
        demonstrates a commitment to building a moderate, democratic 
        state, including significant steps towards free and fair 
        parliamentary elections in 2007.
            (4) To work with the international community to secure 
        additional financial and political support to effectively 
        implement the policies set forth in this subsection and help to 
        resolve the dispute between the Government of Pakistan and the 
        Government of India over the disputed territory of Kashmir.
    (c) Strategy Relating to Pakistan.--
            (1) Requirement for report on strategy.--Not later than 90 
        days after the date of the enactment of this Act, the President 
        shall submit to the appropriate congressional committees a 
        report, in classified form if necessary, that describes the 
        long-term strategy of the United States to engage with the 
        Government of Pakistan to address the issues described in 
        subparagraphs (A) through (F) of subsection (a)(2) and carry 
        out the policies described in subsection (b) in order 
        accomplish the goal of building a moderate, democratic 
        Pakistan.
            (2) Appropriate congressional committees defined.--In this 
        subsection the term ``appropriate congressional committees'' 
        means the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate.
    (d) Limitation on United States Security Assistance to Pakistan.--
            (1) Limitation.--
                    (A) In general.--For fiscal years 2008 and 2009, 
                United States assistance under chapter 2 of part II of 
                the Foreign Assistance Act of 1961 (22 U.S.C. 2311 et 
                seq.) or section 23 of the Arms Export Control Act (22 
                U.S.C. 2763) may not be provided to, and a license for 
                any item controlled under the Arms Export Control Act 
                (22 U.S.C. 2751 et seq.) may not be approved for, 
                Pakistan until 15 days after the date on which 
                President determines and certifies to the appropriate 
                congressional committees that the Government of 
                Pakistan is making all possible efforts to prevent the 
                Taliban from operating in areas under its sovereign 
                control, including in the cities of Quetta and Chaman 
                and in the Northwest Frontier Province and the 
                Federally Administered Tribal Areas.
                    (B) Form.--The certification required by 
                subparagraph (A) shall be transmitted in unclassified 
                form, but may contain a classified annex.
            (2) Waiver.--The President may waive the limitation on 
        assistance under paragraph (1) for a fiscal year if the 
        President determines and certifies to the appropriate 
        congressional committees that it is important to the national 
        security interest of the United States to do so.
            (3) Sunset.--The limitation on assistance under paragraph 
        (1) shall cease to be effective beginning on the date on which 
        the President determines and certifies to the appropriate 
        congressional committees that the Taliban, or any related 
        successor organization, has ceased to exist as an organization 
        capable of conducting military, insurgent, or terrorist 
        activities in Afghanistan from Pakistan.
            (4) Appropriate congressional committees defined.--In this 
        subsection, the term ``appropriate congressional committees'' 
        means the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate.
    (e) Nuclear Proliferation.--
            (1) Finding.--Congress finds that Pakistan's maintenance of 
        a network for the proliferation of nuclear and missile 
        technologies would be inconsistent with Pakistan being 
        considered an ally of the United States.
            (2) Sense of congress.--It is the sense of Congress that 
        the national security interest of the United States will best 
        be served if the United States develops and implements a long-
        term strategy to improve the United States relationship with 
        Pakistan and works with the Government of Pakistan to stop 
        nuclear proliferation.
    (f) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the President for providing assistance for Pakistan for fiscal 
        year 2008--
                    (A) for ``Development Assistance'', such sums as 
                may be necessary to carry out the provisions of 
                sections 103, 105, and 106 of the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2151a, 2151c, and 2151d,);
                    (B) for the ``Child Survival and Health Programs 
                Fund'', such sums as may be necessary to carry out the 
                provisions of sections 104 of the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2151b);
                    (C) for the ``Economic Support Fund'', such sums as 
                may be necessary to carry out the provisions of chapter 
                4 of part II of the Foreign Assistance Act of 1961 (22 
                U.S.C. 2346 et seq.);
                    (D) for ``International Narcotics Control and Law 
                Enforcement'', such sums as may be necessary to carry 
                out the provisions of chapter 8 of part I of the 
                Foreign Assistance Act of 1961 (22 U.S.C. 2291 et 
                seq.);
                    (E) for ``Nonproliferation, Anti-Terrorism, 
                Demining and Related Programs'', such sums as may be 
                necessary;
                    (F) for ``International Military Education and 
                Training'', such sums as may be necessary to carry out 
                the provisions of chapter 5 of part II of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2347 et seq.); and
                    (G) for ``Foreign Military Financing Program'', 
                such sums as may be necessary to carry out the 
                provisions of section 23 of the Arms Export Control Act 
                (22 U.S.C. 2763).
            (2) Other funds.--Amounts authorized to be appropriated 
        under this subsection are in addition to amounts otherwise 
        available for such purposes.
    (g) Extension of Waivers.--
            (1) Amendments.--The Act entitled ``An Act to authorize the 
        President to exercise waivers of foreign assistance 
        restrictions with respect to Pakistan through September 30, 
        2003, and for other purposes'', approved October 27, 2001 
        (Public Law 107-57; 115 Stat. 403), is amended--
                    (A) in section 1(b)--
                            (i) in the heading, to read as follows:
    ``(b) Fiscal Years 2007 and 2008.--''; and
                            (ii) in paragraph (1), by striking ``any 
                        provision'' and all that follows through ``that 
                        prohibits'' and inserting ``any provision of 
                        the foreign operations, export financing, and 
                        related programs appropriations Act for fiscal 
                        year 2007 or 2008 (or any other appropriations 
                        Act) that prohibits'';
                    (B) in section 3(2), by striking ``Such provision'' 
                and all that follows through ``as are'' and inserting 
                ``Such provision of the annual foreign operations, 
                export financing, and related programs appropriations 
                Act for fiscal years 2002 through 2008 (or any other 
                appropriations Act) as are''; and
                    (C) in section 6, by striking ``the provisions'' 
                and all that follows and inserting ``the provisions of 
                this Act shall terminate on October 1, 2008.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        take effect on October 1, 2006.
            (3) Sense of congress.--It is the sense of Congress that 
        determinations to provide extensions of waivers of foreign 
        assistance prohibitions with respect to Pakistan pursuant to 
        Public Law 107-57 for fiscal years after the fiscal years 
        specified in the amendments made by paragraph (1) to Public Law 
        107-57 should be informed by the pace of democratic reform, 
        extension of the rule of law, and the conduct of the 
        parliamentary elections currently scheduled for 2007 in 
        Pakistan.

SEC. 1443. SAUDI ARABIA.

    (a) Findings.--Congress finds the following:
            (1) The Kingdom of Saudi Arabia has an uneven record in the 
        fight against terrorism, especially with respect to terrorist 
        financing, support for radical madrassas, and a lack of 
        political outlets for its citizens, that poses a threat to the 
        security of the United States, the international community, and 
        the Kingdom of Saudi Arabia itself.
            (2) The United States has a national security interest in 
        working with the Government of Saudi Arabia to combat 
        international terrorists who operate within Saudi Arabia or who 
        operate outside Saudi Arabia with the support of citizens of 
        Saudi Arabia.
    (b) Sense of Congress.--It is the sense of Congress that, in order 
to more effectively combat terrorism, the Government of Saudi Arabia 
must undertake and continue a number of political and economic reforms, 
including increasing anti-terrorism operations conducted by law 
enforcement agencies, providing more political rights to its citizens, 
increasing the rights of women, engaging in comprehensive educational 
reform, enhancing monitoring of charitable organizations, promulgating 
and enforcing domestic laws, and regulation on terrorist financing.
    (c) Statements of Policy.--The following shall be the policies of 
the United States:
            (1) To engage with the Government of Saudi Arabia to openly 
        confront the issue of terrorism, as well as other problematic 
        issues, such as the lack of political freedoms, with the goal 
        of restructuring the relationship on terms that leaders of both 
        countries can publicly support.
            (2) To enhance counterterrorism cooperation with the 
        Government of Saudi Arabia, if the political leaders of such 
        government are committed to making a serious, sustained effort 
        to combat terrorism.
            (3) To support the efforts of the Government of Saudi 
        Arabia to make political, economic, and social reforms 
        throughout the country.
    (d) Strategy Relating to Saudi Arabia.--
            (1) Requirement for report on strategy.--Not later than 90 
        days after the date of the enactment of this Act, the President 
        shall submit to the appropriate congressional committees a 
        report, in classified form if necessary, that describes the 
        progress on the Strategic Dialogue (established by President 
        George W. Bush and Crown Prince (now King) Abdullah in April 
        2005) between the United States and Saudi Arabia, including the 
        progress made in such Dialogue toward implementing the long-
        term strategy of the United States to--
                    (A) engage with the Government of Saudi Arabia to 
                facilitate political, economic, and social reforms that 
                will enhance the ability of the Government of Saudi 
                Arabia to combat international terrorism; and
                    (B) work with the Government of Saudi Arabia to 
                combat terrorism, including through effective 
                prevention of the financing of terrorism by Saudi 
                institutions and citizens.
            (2) Appropriate congressional committees defined.--In this 
        subsection the term ``appropriate congressional committees'' 
        means the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate.
                                 <all>
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