T2 B12 Memo To Hamilton Re Intelligence Authorization Bills Fdr- Entire Contents- Memo From Lederman 713

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Vice Chairman Lee Hamilton Gordon Lederman August 11, 2003 Highlights of the Intelligence Authorization Bills

In response to your request, we are tracking HPSCI and SSCI activity related to the Commission's inquiry into intelligence. Set forth below are highlights of the HPSCI and SSCI Intelligence Authorization bills that are relevant to the Commission. I.

H.R.2417 •

Section 336: Permitting the establishment of pilot projects to improve information-sharing among federal, State, and local officials and the private sector and to educate State and local officials about the Intelligence Community (1C). Mechanics:

Section 336 permits the Undersecretary for Information Analysis and Infrastructure Protection of the Department of Homeland Security (DHS), in consultation with the Director of Central Intelligence (DCI), to conduct two types of pilot projects: (1) to encourage State and local officials and critical infrastructure industries to collect counterterrorism information and to share it with the federal government; and (2) to make information available to State and local officials by using tear-lines. Section 336 requires that any DCI participation in the pilot projects occur via the Terrorist Threat Integration Center (TTIC). This section also permits the DCI to establish a training program for State and local officials who have security clearances in order to explain the IC's structure and how to utilize the IC's resources. Finally, section 336 creates two advisory panels for TTIC: (1) State and local governments' need for information; and (2) privacy and civil liberties. Analysis: By permitting the DCI to participate in the pilot projects and to establish training programs, section 336 raises the potential for an expanded DCI role in homeland security. The potential for an expanded DCI role domestically will likely generate debate concerning the implications for civil liberties and for the federal government's overall homeland security strategy. Moreover, Committees with jurisdiction over homeland security - such as the House Select Committee on Homeland Security and the Judiciary Committees - may have concerns about the HPSCI and SSCI legislating in the homeland security field. We expect significant debate on this provision during the conference. Section 336's reference to TTIC is significant because the Executive Branch will likely be sensitive to any attempt by the Congress to legislate regarding TTIC. TTIC was created by Executive Branch action rather than by statute, and the Executive Branch may view this section's reference to TTIC as a step toward statutory enshrinement of TTIC.

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Section 105: Creating the Bureau of Intelligence and Enforcement to consolidate the Treasury Department's intelligence activities.

Mechanics: This section creates the Bureau of Intelligence and Enforcement to consolidate three Treasury Department offices involved in intelligence: (1) the Office of Foreign Assets Control; (2) the Financial Crimes Enforcement Network; and (3) the Office of Intelligence Support. An Assistant Secretary will head this Bureau. Analysis: The creation of the Bureau of Intelligence and Enforcement will likely increase coordination among the Treasury Department's intelligence activities and provide a focal point for other members of the 1C to interact with the Treasury Department. II.

S.1025 •

Section 314: Establishing a pilot project to promote all-source analysis within the 1C, particularly of Signals Intelligence (SIGINT) from the National Security Agency (NSA).

Mechanics: Section 314 directs the DCI to establish a pilot project to assess the feasibility and advisability of permitting analysts from across the 1C to access and analyze information collected by any part of the 1C. This section requires that the pilot project include SIGINT from NSA. Analysis: Section 314's objective is to enhance the IC's capacity to conduct allsource analysis by ensuring that 1C analysts can access information that is collected by any 1C member. However, it is unclear why all-source analysis is not already occurring and how this pilot project would overcome any existing impediments to informationsharing within the 1C. •

Section 334: Requiring a Presidential report on information-sharing and TTIC.

Mechanics: Section 334 directs the President to submit a report within four months of the bill's passage. The report shall: (1) identify impediments to informationsharing across the federal government and among federal, State, and local governments and the private sector; (2) propose legal and policy modifications to facilitate such information-sharing; and (3) outline a plan of action for establishing TTIC. Analysis: This report may prove useful to the Commission as the Commission assesses information-sharing among federal and non-federal actors. Depending upon when the report is submitted, the Commission may lack sufficient time to incorporate the report into the Commission's work. However, the Commission might seek briefings from the report's drafters regarding their findings and recommendations prior to the report's completion. With respect to the report's coverage of TTIC, the Executive Branch might oppose having to disclose its plans for TTIC.

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