Intelligence Reform and Terrorism Prevention Act of 2004 - Conference Report

INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004--CONFERENCE REPORT --

(Senate - December 08, 2004)

The PRESIDENT pro tempore. Under the previous order, the Senate will proceed to consideration of the conference report to
accompany S. 2845 which the clerk will report.

The legislative clerk read as follows:

The committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the bill (S. 2845) to reform the intelligence community and the intelligence and intelligence-related activities of the United States Government, and for other purposes, having met, have agreed that the Senate recede from its disagreement to the amendment of the House and agree to the same with an amendment, and the House agree to the same, signed by a majority of the conferees on the part of both Houses.

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The PRESIDING OFFICER. The Senator from Illinois.

Mr. DURBIN. Mr. President, we gather today in the Senate for an historic occasion. What we are about to consider is a conference report on the Intelligence Reform and Terrorism Prevention Act of 2004. In about 250 written pages, we will literally rewrite the laws governing the intelligence community of America.

This is an historic moment. It is rare, if ever, that the Congress rises to the occasion as it has with this legislation. It is rare, if ever, that we can find a bipartisan consensus on an item of such controversy. Yet we have achieved it. The National Security Intelligence Reform Act will make America safer. It will force our Government to modernize the way we collect and use intelligence.

This legislation was born from the tragedy of 9/11 and the determination of the victims' families that their loved ones would not have died in vain. These courageous survivors are the reason this congressional effort could not and did not fail. In their grief, many people tend to withdraw, to say that they will mourn in private. These victims' families, after a period of mourning, decided to step forward and to lead our country and our Government toward a safer America. Their dedication and their determination have resulted in this document.

The bipartisan 9/11 Commission gave us an excellent blueprint, a sense of urgency, and a constant reminder that we had to rise above our partisan differences. We all know about this report. It is so well known and so well read. It was even nominated as one of the great literary works. That is rare for a Government publication, but it deserved that nomination because it is well written, well thought out, well prepared. Governor Kean of New Jersey, Congressman Lee Hamilton of Indiana put together an extraordinary panel of Democrats and Republicans who brought us this report. And this report was our blueprint, as we sat down to write this historic legislation.

My personal contributions to this bill were in two specific areas. After three years of effort, we finally broke through the technical and bureaucratic obstacles to information sharing among our intelligence agencies by adopting a proposal which I suggested for a new government-wide approach, one with clear goals and clear authority to reach the goals. And for the first time, at the suggestion of the 9/11 Commission, we added to our intelligence efforts a privacy and civil liberties board which was crafted to ensure that we do not pay for our security with our freedoms. Let me salute those who made this possible, particularly on the Senate side.

Senator Susan Collins, chairman of the Governmental Affairs Committee, has really been an extraordinary leader. She is a close friend. We have worked on so many things together. I knew she would rise to the occasion, but I didn't know that she would have the endurance and the determination to bring it to this day. I watched as the conference committee drove on and on, day after day, hour after hour, week after week, month after month-many times appearing to disintegrate before our eyes. She never quit. She just kept pushing forward. She did it not just with a determination, but with such a unique understanding of what was in this conference report. She would dismiss critics in a moment if they misstated what was within the report. She knew it cover to cover. She was well prepared.

Had Senator Collins been doing this alone, she might not have achieved her goal. Standing by her side throughout was Senator Joe Lieberman of Connecticut. Joe is my colleague in the Senate, a good friend, and a great Senator. I think what he did with Susan Collins was to demonstrate to America what Congress can do, that we can rise to the occasion, that we can put aside partisanship and have a genuine, honest discussion for the good of this country. That dynamic duo of Senator Susan Collins of Maine and Senator Joe Lieberman of Connecticut, on our side of the Rotunda, were the guiding force.
I want to say a word about Congresswoman Jane Harman and Congressman Peter Hoekstra who, on the other side of the Rotunda, on the House Intelligence Committee, did an extraordinary job as well.

They would be the first to add that they could not have achieved any of this without extraordinary staff contributions. On my own staff, I salute Marianne Upton, who has put in more hours than you could possibly imagine, doing around-the-clock sessions, preparing different portions of this bill; Joe Zogby, an attorney on my staff who really carried the banner many times on issues of civil rights and civil liberties, oftentimes a lonely battle, not always successful but with a real determination and extraordinary skill that he brought to the Senate; and Shannon Smith, a member of my staff who looked at this bill from the perspective of defense issues and foreign policy issues. Those three, from my point of view, made my presence felt, even when there were times I could not be in conference committee meetings.

The path that led us to this point has not been without obstacles. We had to make major compromises in order to move the legislation forward. But this conference report proves that Congress could work in a bipartisan manner to bring together strength and wisdom and produce this significant bill.

Many people recall what happened on 9/11 and where they were when they learned of the tragedy. I remember. Everybody listening remembers. We also remember that late in the evening, after that sad and worrisome day, the Members of Congress, on a bipartisan basis, gathered on the steps outside and together sang God Bless America. How many times as I went through Illinois and across this country people would say: That was a good thing. We were sure glad you did it, to put aside your differences and to stand together. That day was a precursor of this day because this day we will stand together again. There will be a vote today that will be a bipartisan vote, and it will be a clear and definitive victory for the passage of this legislation.
Let me speak to two or three areas that were of particular importance. First, the Privacy and Civil Liberties Oversight Board. The 9/11 Commission realized that one of the problems we have is when we give Government enough power to protect us, occasionally it overreaches. That has happened in virtually every war and in every period when there was a threat to our national security. Abraham Lincoln, who I believe to have been our greatest President, suspended habeas corpus during the Civil War. There were those who said he went too far in usurping the Constitution. During the period of World War I, when there was concern, we had the Espionage and Sedition Acts, which some believe was an overstepping of governmental authority. In World War II, Franklin Delano Roosevelt gave personal approval to the Japanese internment camps, where innocent Americans were, in fact, jailed and imprisoned when they had done nothing wrong, just for fear that they might. In the Cold War, with our fear of the Soviet Union, we went into the McCarthy era, questioning the patriotism of good Americans, destroying lives and careers in the process. During the Vietnam war, J. Edgar Hoover and the FBI compiled a list of suspects across America. The President compiled an enemies list.

This list goes on and on. It tells us that as we try to be safe, sometimes we go too far. The 9/11 Commission said we need to put into place something that is unique, has never existed in history. This Privacy and Civil Liberties Oversight Board will make certain they keep an eye on Government activity, make sure it doesn't violate privacy or civil liberties. I agree with the Commission when the Commission said to us "the choice between security and liberty is a false choice." I believe, the Commission believes, we can be both safe and free.

We can protect the lives of Americans, and we can also protect their liberties. That is what the Board is setting out to do.
As Governor Kean said in answer to a question I asked, this Board should be "disinterested" and it should not be speaking for the Government. It should be independent in its oversight of the Government and its activities. This Board will have the authority to obtain information, to ensure the Government is respecting our privacy and civil liberties. If someone outside of the Government refuses to provide needed information, the Attorney General will have authority to subpoena it.

There is an exception for the National Intelligence Director and the Attorney General to withhold information in the interest of national security. That is understandable, but members of the Board and the Board's staff will have high-level security clearances, so we expect that it will only rarely, if ever, be necessary to invoke this national security exception.

The Privacy and Civil Liberties Oversight Board will be required to report to Congress about its work on an annual basis. These reports, to the greatest extent possible, will be unclassified so we can all look at the activities of our Government when it comes to respecting privacy and civil liberties. This transparency will keep us informed. The bright sunlight will shine on these activities when it doesn't compromise national security. This Board will ensure that as we fight the war on terrorism, we will respect the precious liberties that are the foundation of our society.

The second area I worked in that I think may turn out to have historic importance relates to information sharing. When the 9/11 Commission Report came out a little over 135 days ago, they kept referring to one basic theme. This is what the report said:

The biggest impediment to all source analysis-to a greater likelihood of connecting the dots-is the human or systemic resistance to sharing information.

I have really focused on this since Ð9/11. So many colleagues looked at different aspects of the challenge created by that terrible day. When I looked at information sharing, the first thing I did was turn to the FBI, the premier law enforcement agency in America, the top of the heap, the best and brightest when it comes to law enforcement. I asked the basic question: Tell me about the computers at the FBI headquarters on September 11, 2001.

Do you know what I learned? Just three years ago, if you looked at the computers at the FBI, you found computers with no e-mail capacity, no access to the Internet, no mechanism for word/name search matching, and no capacity for the electronic transmission of photographs. Anyone listening-particularly younger people-have to shake their heads and say: Senator, they could have gone down to the local computer store and bought a basic computer that had all of this capacity.

What happened? Why did the FBI fall so far behind in technology? What happened was, in their vanity and in their bureaucratic protectionism, they said: We don't need to go to other firms creating computers. The FBI will create its own computer system.

They did and what a mess it was. On September 11, 2001, the technological capability of the FBI was virtually nonexistent when it came to computers. That is hard to imagine, isn't it?

As I spoke to every level that I could of Government leadership, including Vice President Cheney; Attorney General Ashcroft; FBI Director Mueller, every one of them conceded that this was an obvious problem. Let me tell you something else. We asked the FBI and the Border Patrol to establish a common fingerprint database.

That makes sense, doesn't it? If we are going to bank all the fingerprints of suspects around America, wouldn't the Border Patrol want to have an integrated network of fingerprints they could check against the FBI base?

Let me tell you where we are on that. For more than six years, we have been trying to achieve this. For more than six years, we have been trying to get two agencies of Government to cooperate in comparing fingerprints. Earlier this year, the inspector general of the Justice Department reported it would take at least four more years to combine the systems.

I am sure a lot of people following this debate are saying: He has to be exaggerating. Why would it take ten years to reach the point that the fingerprints collected by one agency of the Federal Government could be compared to the fingerprint database of another agency?

It is a fact. It has to do with two things. First, it has to do with equipment. It has to do with technology. And second, it has to do with a mindset of cooperation rather than exclusion.

That is what led me to this whole issue of information sharing. I tried to encourage a debate on this issue when we created the Department of Homeland Security. I said to my colleagues on both sides of the aisle: It is great for us to talk about a new department bringing together all these agencies, but if they do not have compatible computer databases and the will to share, then we are going to lose out when it comes to information gathering.

I did not win that debate when we created the Department of Homeland Security, but I am happy to tell you that we have won the debate when it comes to this bill.

It is distressing to read chapter 8 of the 9/11 Commission's report entitled "The System was Blinking Red." It is hard to make sense out of the information-sharing breakdowns before September 11.

The PRESIDING OFFICER. The Senator's time has expired.

Mr. DURBIN. Mr. President, I ask unanimous consent for 10 additional minutes.

The PRESIDING OFFICER. Without objection, it is so ordered.

Mr. DURBIN. On July 10, 2001, an FBI agent in the Phoenix field office sent a memo to FBI headquarters and to two agents
on the international terrorism squads in the New York field office advising of the "possibility of a coordinated effort by Osama bin Laden" to send students to the U.S. to attend civil aviation schools-the famous Phoenix memo.

This Phoenix memo went into the system and virtually disappeared. On its face, this memo was fair warning. This memo was a flare that went off, climbed into the sky, and flashed a warning of danger, and no one noticed. This was July 10, 2001. The Phoenix memo went forward, and it disappeared in the sky without even notification. The notice was there. Something needed to be done, but no one responded within the FBI or in the other appropriate agencies.

As we learned, the Phoenix memo was not an alert about suicide pilots. We learned the author was more concerned about a Pan Am 103 scenario. The fact is, whether they are talking about the Phoenix memo or what led up to the intelligence investigation involving Zacarias Moussaoui, we did not have a sharing of information among agencies that might have protected America and the 3,000 victims on September 11.

For well over two years, I have urged that we do something profound and historic. I thought about the Manhattan Project. That was a project, if you recall, that dates back to the attack on Pearl Harbor. Prior to that attack, Franklin Roosevelt had his atomic project that was looking into this new scientific research when it came to use of the atom.

It was moving along at a snail's pace, and then came December 7, 1941. On that date, the President said we were shifting
into a new approach. We want to know if we can use this new research in science to create atomic bombs, weapons that we may need in this war.

He shelved the commission that had been working on it and created a new group under the head of GEN Leslie Groves. GEN Leslie Groves, who was involved in the Army Corps of Engineers, dubbed it the Manhattan Project. What the general said was we are going to break all the rules. We are going to have Government leadership to develop this atom bomb, but we are going to turn to the academic side, the universities doing research, and we are going to turn to private business, and we are going to create what this country needs to defend itself. And we did. The Manhattan Project met its goal and produced the bombs that ended the Second World War.

I thought we needed something very similar when it comes to information sharing and technology in fighting this war on terrorism. This bill moves us in that direction. It creates an environment for us to have computers that communicate with one another, databases that can work with one another, information that can be shared. But all of the good words in this bill mean little or nothing if there is not the will in these agencies to make it happen, not only the person supervising this new environment, but each person who is involved at each agency to share this information and to make certain that we do not protect turf at the expense of protecting America.

Let me address one aspect of this bill-a bill which I am happy to support and will vote for-that is troubling to me. It is an aspect of the bill where we lost a provision in the conference which I think is very important.

That is a provision that was added in the Senate relative to the detention and humane treatment of captured terrorists. A provision in the Senate bill, which passed 96 to 2, addressed it. Unfortunately, the House Republican conferees insisted the provision be removed from the final version of the bill, so the bill is silent.

This is especially serious from my point of view because of the poor track record over the last several years when it comes to the use of torture.

In a January 2002 memo to the President, White House Counsel Alberto Gonzales concluded that the Geneva Conventions, which have guided us for decades when it comes to the humane treatment of prisoners, in the words of Mr. Gonzales were "quaint" and "obsolete."

In August 2002, the Justice Department sent a memo to Mr. Gonzales in which they adopted a new, very restrictive definition of torture. They stated that physical abuse only rises to the level of torture if it involves "intense pain or suffering of the kind that is equivalent to the pain that would be associated with serious physical injury so severe that death, organ failure, or permanent damage resulting in a loss of significant body function will likely result."

They also concluded that the torture statute, which makes torture a crime, did not apply to interrogations conducted under the President's Commander-in-Chief authority.

Under our Constitution, the President does not have the authority to make his own laws by creating a new definition of torture, and he cannot choose which laws he will obey. There is no wartime exception to our Constitution.

In November 2002, Defense Secretary Rumsfeld approved the use of coercive interrogation techniques at Guantanamo Bay. These included removal of clothing, using dogs to intimidate detainees, sensory deprivation, and placing detainees in painful physical conditions. According to a recent Red Cross report, the use of these techniques has grown "more refined and
repressive" and constitutes torture.

There are so many unanswered questions about the administration's position on the use of torture. Mr. Gonzales said, "We categorically reject any connection" between the administration's torture memos and the abuses at Abu Ghraib, Guantanamo Bay, and elsewhere. But how can the administration reject these connections when the torture techniques that they approved for use in Guantanamo were being used in Abu Ghraib and elsewhere in Iraq?

Mr. Gonzales was recently nominated to be the Attorney General. I look forward to getting to the bottom of this issue when he comes before the Judiciary Committee in January.

The 9/11 Commission correctly concluded that the Iraqi prisoner abuse scandal has negatively affected our ability to combat terrorism. They wrote:

Allegations that the United States abused prisoners in its custody make it harder to build the diplomatic, political, and military alliances the government will need.

As a result, the Commission recommended that the U.S. develop policies to ensure that captured terrorists are treated humanely. That is exactly what we did in the Senate bill. In fact, the Senate provision is similar to an amendment which I offered to the Department of Defense authorization bill requiring that the Department issue policies to ensure that they will not engage in torture or cruel, inhumane, or degrading treatment, a standard embodied in our Constitution and in numerous international agreements.

The Senate intelligence reform bill would have simply extended these requirements to the intelligence community. What possible basis could the House conferees have had for opposing this provision, turning its back on the Geneva Convention's basic standards that we have held in this country for decades?

I think what we have here, unfortunately, is a decision by the conferees to be less than explicit about America's commitment. We need to make certain that we stand by standards which America has preached to the world for decades, that we realize we are not just not talking about detainees captured by our Government, but the potential treatment of Americans and American soldiers facing detention.

For us to remove this provision from this new bill is troublesome to me.

I think the intelligence community should be held to the same standards as the Department of Defense, and taking this language out of the bill will make that very difficult to monitor, as I hoped we would be able to do.

As the 9/11 Commission report admonishes, we have to think more imaginatively to protect America and use information in a more sensible and thoughtful way. Intelligence is the first line of defense against terrorism. With this legislation, our intelligence gathering, analysis, and application will be significantly improved. No agency can do it alone. Collective vigilance requires mutual cooperation and not just within the executive branch. We need to do our part on Capitol Hill.

Congress needs to be part of this new concerted effort. I am ready to work with administration officials to make this happen. I salute President Bush, Vice President Cheney, Speaker Hastert, and many other Republican leaders who stepped up to make
certain they did their part to pass this legislation.

As we have done on the Senate side, we have demonstrated that this kind of bipartisan cooperation makes America a safer place.

Finally, thanks to the decision of my colleagues on the Senate Democratic side, I step into the capacity of the Senate whip, the assistant Senate leader, in a few days. As a result of that, I will have new responsibilities on the floor and more demands on my time. It was necessary for me to step aside from my service on the Governmental Affairs Committee, which I really enjoyed during the period I have been in the Senate.

I am glad the last action of the committee was the passage of this important legislation. I think a lot of work that was put in in that committee paid off with the passage of it. I am going to miss this committee. I wanted to make certain that whoever would fill that slot would have the time to dedicate to its important work of protecting America.

I thank Governmental Affairs Committee Chairman Susan Collins, as well as Senator Lieberman, for all of the kindness they have extended to me during my period on the committee. I hope I will be able to continue to help them in my new capacity as the Democratic whip of the Senate.

I yield the floor.

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DRIVER'S LICENSE AND PERSONAL IDENTIFICATION CARD PROVISIONS

Ms. COLLINS. Mr. President, I yield to the Senator from Illinois to speak on one of the provisions in the conference report.

Mr. DURBIN. Mr. President, I want to discuss section 7212 of the conference report accompanying the intelligence reform bill that deals with minimum standards for driver's licenses and personal identification cards.

I am joined on the floor by Senators COLLINS, LIEBERMAN, SUNUNU, and LAUTENBERG, who are all my colleagues on the Governmental Affairs Committee, and who have been leaders in this effort. I hope they will join in a colloquy to help explain what we collectively intended as we drafted this provision.

In the days immediately following September 11, 2001, we read in the newspapers that the hijackers had in their possessions multiple driver's licenses and State identification cards. The press reported that some of the nineteen hijackers had obtained these documents from DMV offices in States that, at that time, had lenient rules on issuing such documents. They also
obtained other official-looking identification documents from the Internet.

In the last Congress, the Governmental Affairs Committee held a hearing that revealed that the 9/11 terrorists took advantage of loopholes in some State DMVs' issuance processes that have been apparent for years to anyone willing to obtain fake IDs.
Following the hearing, I asked the GAO to study how easy it would be for someone to obtain driver's licenses and State ID cards from DMVs, using false pretenses. The GAO investigators went out to several States and conducted undercover operations where they tried to obtain licenses using fake breeder documents, or using other false methods. Incredibly, the GAO investigators succeeded every single time. More incredibly, the GAO study was undertaken several months after some of these
same States claimed that they reformed their driver's license issuance processes following the 9/11 tragedies.

In October 2002, I introduced S. 3107, the Driver's License Fraud Prevention Act of 2002, with Senator MCCAIN, to address the glaring problems we uncovered with the hearing and the GAO study. The core goal of that bill was to allow for the Federal Government to work with States and interested parties to develop a set of minimum security standards to be applied uniformly to all States.

In drafting that bill, we had three main principles for reforming the State processes: 1. reform must apply uniformly to all 50 States; 2. State's rights and jurisdictions must be respected; and 3. applicants, holders, and users of driver's licenses must have their privacy, civil liberties, and other constitutional rights protected.

Then, a few months ago, when Senators MCCAIN and LIEBERMAN drafted S. 2774, their comprehensive bill to implement the 9/11 Commission Report, I worked with them to add a provision that would provide Federal standards for driver's licenses. This addressed one of the recommendations that the 9/11 Commission made:

[T]he federal government should set standards for the issuance of birth certificates and sources of identification, such as drivers licenses. Fraud in identification documents is no longer just a problem of theft. At many entry points to vulnerable facilities, including gates for boarding aircraft, sources of identification are the last opportunity to ensure that people are who they say they are and to check whether they are terrorists.

This provision was adopted unanimously by the Senate as an amendment to the Collins-Lieberman intelligence reform bill, and is also in the conference report before us today. I am glad to see that the provision in the conference report before us today lives up to the three principles I outlined above.

First, the provision would prohibit Federal agencies from accepting, for any official purpose, a driver's license or identification card newly issued by a State more than 2 years after the regulations on minimum Federal standards are promulgated, unless the document conforms to such standards. The language also requires the Transportation Secretary to set a date after which no license may be accepted unless it conforms to the new standards.

This should encourage all 50 States to work together and adopt the minimum Federal standards at the same time so that no State will remain the weakest link in our national efforts to protect our homeland. We want to make sure terrorists and criminals do not forum shop for the easiest State from which to obtain fraudulent ID cards.

Second, the language of the Senate bill as adopted in the conference report requires a negotiated rulemaking process under the Administrative Procedure Act. This requires the formation of a negotiated rulemaking committee that would include representatives of States, among other stakeholders. The committee is empowered to make a recommendation for the minimum standards to be promulgated by the Department of Transportation. The mininum standards would address among other issues 1. documentation required as proof of identity of the applicant; 2. verifiability of documents used to apply for a license; 3. processing of the applications to prevent fraud; and 4. security features to be included in the card.

On this point, I would like to commend the chair of the Governmental Affairs Committee for her tireless efforts on behalf of the States' interests. Senator COLLINS has worked to ensure that this bill recognizes the limited role of the Federal Government in this area-issuing driver's licenses are a unique State function and that we should not impose reform measures on States without their valuable input.

Third, the rulemaking process includes safeguards to protect the privacy and due process rights of applicants.

Ms. COLLINS. If the Senator from Illinois would yield, I would like to speak on that issue.

Mr. DURBIN. I am happy to yield to the distinguished manager on the floor.

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Mr. DURBIN. I ask the Senator from Connecticut a related question on how this provision of the conference report deals with the issue of immigration laws.

It is my understanding that the language of the conference report makes it clear that the Federal regulations to be developed by the Department of Transportation cannot directly or indirectly infringe on a State's power to set eligibility criteria for who can qualify to obtain a driver's license or identification card. So if a State has unique reasons for allowing or prohibiting certain groups of people to hold licenses based on their age, physical disability, in-State residency, or legal status in the United States, then, under the conference report language, those would continue to be the State's decisions.

This issue was handled differently by the other Chamber. The House bill had language that would have taken away the States' rights to determine eligibility by imposing a new harsh legal presence requirement for the issuance of driver's licenses. This is the provision that, I believe, created a lot of misunderstanding in the press about what the conference report does.
States around the country are already struggling with the issue of whether to provide licenses to undocumented aliens, and they should continue to work on the issue through their own legislative processes. Congress should not preempt the rights of all 50 States through the backdoor.

The issue of how our country treats those who are here without proper documentation is a complex one that involves myriad of overlapping immigration, foreign policy, and economic laws. We should not open that debate here unless we are ready and willing to address all the comprehensive proposals that ought to be included in such a debate.

I certainly hope the President will engage in this debate, and soon. But obviously, we cannot accomplish such an enormous task of overhauling our immigration laws through the 9/11 Commission bill, and the 9/11 Commission did not ask us to do that. We should not use this bill to require the

States to turn their DMV employees into immigration agents, and this conference report will not do so.

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