[108th Congress Public Law 177]
[From the U.S. Government Printing Office]
[DOCID: f:publ177.108]
[[Page 117 STAT. 2599]]
Public Law 108-177
108th Congress
An Act
To authorize appropriations for fiscal year 2004 for intelligence and
intelligence-related activities of the United States Government, the
Community Management Account, and the Central Intelligence Agency
Retirement and Disability System, and for other purposes. <<NOTE: Dec.
13, 2003 - [H.R. 2417]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Intelligence
Authorization Act for Fiscal Year 2004.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Intelligence
Authorization Act for Fiscal Year 2004''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--INTELLIGENCE ACTIVITIES
Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Office of Intelligence and Analysis of the Department of the
Treasury.
Sec. 106. Incorporation of reporting requirements.
Sec. 107. Preparation and submittal of reports, reviews, studies, and
plans relating to intelligence activities of Department of
Defense or Department of
Energy.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
TITLE III--GENERAL PROVISIONS
Subtitle A--Recurring General Provisions
Sec. 301. Increase in employee compensation and benefits authorized by
law.
Sec. 302. Restriction on conduct of intelligence activities.
Subtitle B--Intelligence
Sec. 311. Authority of Federal Bureau of Investigation to award personal
services contracts.
Sec. 312. Budget treatment of costs of acquisition of major systems by
the intelligence community.
Sec. 313. Modification of sunset of application of sanctions laws to
intelligence
activities.
Sec. 314. Modification of notice and wait requirements on projects to
construct or improve intelligence community facilities.
Sec. 315. Extension of deadline for final report of the National
Commission for the Review of the Research and Development
Programs of the United States Intelligence Community.
Sec. 316. Improvement of information sharing among Federal, State, and
local
government officials.
Sec. 317. Pilot program on analysis of signals and other intelligence by
intelligence analysts of various elements of the intelligence
community.
[[Page 117 STAT. 2600]]
Sec. 318. Pilot program on recruitment and training of intelligence
analysts.
Sec. 319. Improvement of equality of employment opportunities in the
intelligence community.
Sec. 320. Sense of Congress on recruitment as intelligence community
personnel of members of the Armed Forces on their discharge
or release from duty.
Sec. 321. External Collection Capabilities and Requirements Review
Panel.
Subtitle C--Counterintelligence
Sec. 341. Counterintelligence initiatives for the intelligence
community.
Subtitle D--Reports
Sec. 351. Report on cleared insider threat to classified computer
networks.
Sec. 352. Report on security background investigations and security
clearance procedures of the Federal Government.
Sec. 353. Report on detail of civilian intelligence personnel among
elements of the intelligence community and the Department of
Defense.
Sec. 354. Report on modifications of policy and law on classified
information to facilitate sharing of information for national
security purposes.
Sec. 355. Report on strategic planning.
Sec. 356. Report on United States dependence on computer hardware and
software manufactured overseas.
Sec. 357. Report on lessons learned from military operations in Iraq.
Sec. 358. Reports on conventional weapons and ammunition obtained by
Iraq in violation of certain United Nations Security Council
resolutions.
Sec. 359. Report on operations of Directorate of Information Analysis
and Infrastructure Protection and Terrorist Threat
Integration Center.
Sec. 360. Report on Terrorist Screening Center.
Sec. 361. Repeal and modification of report requirements relating to
intelligence activities.
Subtitle E--Other Matters
Sec. 371. Extension of suspension of reorganization of Diplomatic
Telecommunications Service Program Office.
Sec. 372. Modifications of authorities on explosive materials.
Sec. 373. Modification of prohibition on the naturalization of certain
persons.
Sec. 374. Modification to definition of financial institution in Right
to Financial Privacy Act.
Sec. 375. Coordination of Federal Government research on security
evaluations.
Sec. 376. Treatment of classified information in money laundering cases.
Sec. 377. Technical amendments.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
Sec. 401. Amendment to certain Central Intelligence Agency Act of 1949
notification requirements.
Sec. 402. Protection of certain Central Intelligence Agency personnel
from tort liability.
Sec. 403. Repeal of obsolete limitation on use of funds in central
services working capital fund.
Sec. 404. Purchases by Central Intelligence Agency of products of
Federal Prison Industries.
Sec. 405. Postponement of Central Intelligence Agency compensation
reform and other matters.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS
Sec. 501. Protection of certain National Security Agency personnel from
tort liability.
Sec. 502. Use of funds for counterdrug and counterterrorism activities
for Colombia.
Sec. 503. Scene visualization technologies.
Sec. 504. Measurement and signatures intelligence research program.
Sec. 505. Availability of funds of National Security Agency for national
security scholarships.
TITLE I--INTELLIGENCE ACTIVITIES
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal year 2004
for the conduct of the intelligence and intelligence-related
[[Page 117 STAT. 2601]]
activities of the following elements of the United States Government:
(1) The Central Intelligence Agency.
(2) The Department of Defense.
(3) The Defense Intelligence Agency.
(4) The National Security Agency.
(5) The Department of the Army, the Department of the Navy,
and the Department of the Air Force.
(6) The Department of State.
(7) The Department of the Treasury.
(8) The Department of Energy.
(9) The Department of Justice.
(10) The Federal Bureau of Investigation.
(11) The National Reconnaissance Office.
(12) The National Geospatial-Intelligence Agency.
(13) The Coast Guard.
(14) The Department of Homeland Security.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
(a) Specifications of Amounts and Personnel Ceilings.--The amounts
authorized to be appropriated under section 101, and the authorized
personnel ceilings as of September 30, 2004, for the conduct of the
intelligence and intelligence-related activities of the elements listed
in such section, are those specified in the classified Schedule of
Authorizations prepared to accompany the conference report on the bill
H.R. 2417 of the One Hundred Eighth Congress.
(b) Availability of Classified Schedule of Authorizations.--The
Schedule of Authorizations shall be made available to the Committees on
Appropriations of the Senate and House of Representatives and to the
President. <<NOTE: President.>> The President shall provide for
suitable distribution of the Schedule, or of appropriate portions of the
Schedule, within the executive branch.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
(a) Authority for Adjustments.--With the approval of the Director of
the Office of Management and Budget, the Director of Central
Intelligence may authorize employment of civilian personnel in excess of
the number authorized for fiscal year 2004 under section 102 when the
Director of Central Intelligence determines that such action is
necessary to the performance of important intelligence functions, except
that the number of personnel employed in excess of the number authorized
under such section may not, for any element of the intelligence
community, exceed 2 percent of the number of civilian personnel
authorized under such section for such element.
(b) Notice to Intelligence Committees.--The Director of Central
Intelligence shall promptly notify the Select Committee on Intelligence
of the Senate and the Permanent Select Committee on Intelligence of the
House of Representatives whenever the Director exercises the authority
granted by this section.
SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.
(a) Authorization of Appropriations.--There is authorized to be
appropriated for the Intelligence Community Management Account of the
Director of Central Intelligence for fiscal year 2004 the sum of
$221,513,000. Within such amount, funds identified in the classified
Schedule of Authorizations referred to in section
[[Page 117 STAT. 2602]]
102(a) for advanced research and development shall remain available
until September 30, 2005.
(b) Authorized Personnel Levels.--The elements within the
Intelligence Community Management Account of the Director of Central
Intelligence are authorized 310 full-time personnel as of September 30,
2004. Personnel serving in such elements may be permanent employees of
the Intelligence Community Management Account or personnel detailed from
other elements of the United States Government.
(c) Classified Authorizations.--
(1) Authorization of appropriations.--In addition to amounts
authorized to be appropriated for the Intelligence Community
Management Account by subsection (a), there are also authorized
to be appropriated for the Intelligence Community Management
Account for fiscal year 2004 such additional amounts as are
specified in the classified Schedule of Authorizations referred
to in section 102(a). Such additional amounts for research and
development shall remain available until September 30, 2005.
(2) Authorization of personnel.--In addition to the
personnel authorized by subsection (b) for elements of the
Intelligence Community Management Account as of September 30,
2004, there are also authorized such additional personnel for
such elements as of that date as are specified in the classified
Schedule of Authorizations.
(d) Reimbursement.--Except as provided in section 113 of the
National Security Act of 1947 (50 U.S.C. 404h), during fiscal year 2004
any officer or employee of the United States or a member of the Armed
Forces who is detailed to the staff of the Intelligence Community
Management Account from another element of the United States Government
shall be detailed on a reimbursable basis, except that any such officer,
employee, or member may be detailed on a nonreimbursable basis for a
period of less than one year for the performance of temporary functions
as required by the Director of Central Intelligence.
(e) National Drug Intelligence Center.-- <<NOTE: 21 USC 873 note.>>
(1) In general.--Of the amount authorized to be appropriated
in subsection (a), $47,142,000 shall be available for the
National Drug Intelligence Center. Within such amount, funds
provided for research, development, testing, and evaluation
purposes shall remain available until September 30, 2005, and
funds provided for procurement purposes shall remain available
until September 30, 2006.
(2) Transfer of funds.--The Director of Central Intelligence
shall transfer to the Attorney General funds available for the
National Drug Intelligence Center under paragraph (1). The
Attorney General shall utilize funds so transferred for the
activities of the National Drug Intelligence Center.
(3) Limitation.--Amounts available for the National Drug
Intelligence Center may not be used in contravention of the
provisions of section 103(d)(1) of the National Security Act of
1947 (50 U.S.C. 403-3(d)(1)).
(4) Authority.--Notwithstanding any other provision of law,
the Attorney General shall retain full authority over the
operations of the National Drug Intelligence Center.
[[Page 117 STAT. 2603]]
SEC. 105. OFFICE OF INTELLIGENCE AND ANALYSIS OF THE DEPARTMENT OF THE
TREASURY.
(a) Establishment of Office.--(1) Chapter 3 of subtitle I of title
31, United States Code, is amended--
(A) by redesignating section 311 as section 312; and
(B) by inserting after section 310 the following:
``Sec. 311. Office of Intelligence and Analysis
``(a) Establishment.--There is established within the Department of
the Treasury, the Office of Intelligence and Analysis (in this section
referred to as the `Office'), which shall--
``(1) be responsible for the receipt, analysis, collation,
and dissemination of foreign intelligence and foreign
counterintelligence information (within the meaning of section 3
of the National Security Act of 1947 (50 U.S.C. 401a)) related
to the operation and responsibilities of the Department of the
Treasury; and
``(2) have such other related duties and authorities as may
be assigned to it by the Secretary, subject to the authority,
direction, and control of the Secretary.
``(b) <<NOTE: President. Congress.>> Assistant Secretary for
Intelligence and Analysis.--The Office shall be headed by an Assistant
Secretary, who shall be appointed by the President, by and with the
advice and consent of the Senate. The Assistant Secretary shall report
directly to the Undersecretary of the Treasury for Enforcement.''.
(2) The table of sections at the beginning of chapter 3 of such
title is amended by striking the item relating to section 311 and
inserting the following new items:
``311. Office of Intelligence and Analysis.
``312. Continuing in office.''.
(b) <<NOTE: 31 USC 311 note.>> Construction of Authority.--Nothing
in section 311 of title 31, United States Code (as amended by subsection
(a)), shall be construed to alter the authorities and responsibilities
of the Director of Central Intelligence with respect to the Office of
Intelligence and Analysis of the Department of the Treasury as an
element of the intelligence community.
(c) Consultation With DCI in Appointment of Assistant Secretary.--
Section 106(b)(2) of the National Security Act of 1947 (50 U.S.C. 403-
6(b)(2)) is amended by adding at the end the following:
``(E) The Assistant Secretary for Intelligence and
Analysis of the Department of the Treasury.''.
(d) Conforming Amendments.--
(1) National security act.--Section 3(4) of the National
Security Act of 1947 (50 U.S.C. 401a(4)) is amended--
(A) in subparagraph (H), by striking ``the
Department of the Treasury,'';
(B) by redesignating subparagraphs (J) and (K) as
subparagraphs (K) and (L), respectively; and
(C) by inserting after subparagraph (I) the
following new subparagraph (J):
``(J) the Office of Intelligence and Analysis of the
Department of the Treasury;''.
(2) Title 31.--Section 301(e) of title 31, United States
Code, is amended by striking ``7'' and inserting ``8''.
[[Page 117 STAT. 2604]]
(3) Title 5.--Section 5315 of title 5, United States Code,
is amended in the item relating to Assistant Secretaries of the
Treasury by striking ``(7)'' and inserting ``(8)''.
SEC. 106. INCORPORATION OF REPORTING REQUIREMENTS. <<NOTE: 50 USC 401
note.>>
(a) In General.--Each requirement to submit a report to the
congressional intelligence committees that is included in the joint
explanatory statement to accompany the conference report on the bill
H.R. 2417 of the One Hundred Eighth Congress, or in the classified annex
to this Act, is hereby incorporated into this Act, and is hereby made a
requirement in law.
(b) Congressional Intelligence Committees Defined.--In this section,
the term ``congressional intelligence committees'' means--
(1) the Select Committee on Intelligence of the Senate; and
(2) the Permanent Select Committee on Intelligence of the
House of Representatives.
SEC. 107. <<NOTE: 50 USC 415b note.>> PREPARATION AND SUBMITTAL OF
REPORTS, REVIEWS, STUDIES, AND PLANS RELATING TO
INTELLIGENCE ACTIVITIES OF DEPARTMENT OF DEFENSE OR
DEPARTMENT OF ENERGY.
(a) Consultation in Preparation.--(1) The Director of Central
Intelligence shall ensure that any report, review, study, or plan
required to be prepared or conducted by a provision of this Act,
including a provision of the classified Schedule of Authorizations
referred to in section 102(a) or the classified annex to this Act, that
involves the intelligence or intelligence-related activities of the
Department of Defense or the Department of Energy is prepared or
conducted in consultation with the Secretary of Defense or the Secretary
of Energy, as appropriate.
(2) The Secretary of Defense or the Secretary of Energy may carry
out any consultation required by this subsection through an official of
the Department of Defense or the Department of Energy, as the case may
be, designated by such Secretary for that purpose.
(b) Submittal.--Any report, review, study, or plan referred to in
subsection (a) shall be submitted, in addition to any other committee of
Congress specified for submittal in the provision concerned, to the
following committees of Congress:
(1) The Committees on Armed Services and Appropriations and
the Select Committee on Intelligence of the Senate.
(2) The Committees on Armed Services and Appropriations and
the Permanent Select Committee on Intelligence of the House of
Representatives.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for the Central Intelligence
Agency Retirement and Disability Fund for fiscal year 2004 the sum of
$226,400,000.
[[Page 117 STAT. 2605]]
TITLE III--GENERAL PROVISIONS
Subtitle A--Recurring General Provisions
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY
LAW.
Appropriations authorized by this Act for salary, pay, retirement,
and other benefits for Federal employees may be increased by such
additional or supplemental amounts as may be necessary for increases in
such compensation or benefits authorized by law.
SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.
The authorization of appropriations by this Act shall not be deemed
to constitute authority for the conduct of any intelligence activity
which is not otherwise authorized by the Constitution or the laws of the
United States.
Subtitle B--Intelligence
SEC. 311. AUTHORITY OF FEDERAL BUREAU OF INVESTIGATION TO AWARD PERSONAL
SERVICES CONTRACTS.
(a) Authority.--(1) Title III of the National Security Act of 1947
is amended by inserting after section 301 (50 U.S.C. 409a) the following
new section:
``Sec. 302. <<NOTE: 50 USC 409b.>> (a) In General.--The Director of
the Federal Bureau of Investigation may enter into personal services
contracts if the personal services to be provided under such contracts
directly support the intelligence or counterintelligence missions of the
Federal Bureau of Investigation.
``(b) Inapplicability of Certain Requirements.--Contracts under
subsection (a) shall not be subject to the annuity offset requirements
of sections 8344 and 8468 of title 5, United States Code, the
requirements of section 3109 of title 5, United States Code, or any law
or regulation requiring competitive contracting.
``(c) Contract To Be Appropriate Means of Securing Services.--The
Chief Contracting Officer of the Federal Bureau of Investigation shall
ensure that each personal services contract entered into by the Director
under this section is the appropriate means of securing the services to
be provided under such contract.''.
(2) The table of contents for that Act is amended by inserting after
the item relating to section 301 the following new item:
``Sec. 302. Authority of Federal Bureau of Investigation to award
personal services contracts.''.
(b) <<NOTE: Deadline. 50 USC 409b-1.>> Reports on Exercise of
Authority.--(1) Not later than one year after the date of the enactment
of this Act, and annually thereafter, the Director of the Federal Bureau
of Investigation shall submit to the appropriate committees of Congress
a report on the exercise of the authority in section 302 of the National
Security Act of 1947, as added by subsection (a).
(2) Each report under this subsection shall include, for the one-
year period ending on the date of such report, the following:
[[Page 117 STAT. 2606]]
(A) The number of contracts entered into during the period.
(B) The cost of each such contract.
(C) The length of each such contract.
(D) The types of services to be provided under each such
contract.
(E) The availability, if any, of United States Government
personnel to perform functions similar to the services to be
provided under each such contract.
(F) The efforts of the Federal Bureau of Investigation to
fill available personnel vacancies, or request additional
personnel positions, in areas relating to the intelligence or
counterintelligence mission of the Bureau.
(3) Each report under this subsection shall be submitted in
unclassified form, but may include a classified annex.
(4) In this subsection--
(A) for purposes of the submittal of the classified annex to
any report under this subsection, the term ``appropriate
committees of Congress'' means--
(i) the Select Committee on Intelligence of the
Senate; and
(ii) the Permanent Select Committee on Intelligence
of the House of Representatives; and
(B) for purposes of the submittal of the unclassified
portion of any report under this subsection, the term
``appropriate committees of Congress'' means--
(i) the committees specified in subparagraph (A);
(ii) the Committees on Appropriations, Governmental
Affairs, and the Judiciary of the Senate; and
(iii) the Committees on Appropriations, Government
Reform and Oversight, and the Judiciary of the House of
Representatives.
SEC. 312. BUDGET TREATMENT OF COSTS OF ACQUISITION OF MAJOR SYSTEMS BY
THE INTELLIGENCE COMMUNITY.
(a) <<NOTE: 50 USC 415a-1 note.>> Findings.--Congress makes the
following findings:
(1) Funds within the National Foreign Intelligence Program
often must be shifted from program to program and from fiscal
year to fiscal year to address funding shortfalls caused by
significant increases in the costs of acquisition of major
systems by the intelligence community.
(2) While some increases in the costs of acquisition of
major systems by the intelligence community are unavoidable, the
magnitude of growth in the costs of acquisition of many major
systems indicates a systemic bias within the intelligence
community to underestimate the costs of such acquisition,
particularly in the preliminary stages of development and
production.
(3) Decisions by Congress to fund the acquisition of major
systems by the intelligence community rely significantly upon
initial estimates of the affordability of acquiring such major
systems and occur within a context in which funds can be
allocated for a variety of alternative programs. Thus,
substantial increases in costs of acquisition of major systems
place significant burdens on the availability of funds for other
programs and new proposals within the National Foreign
Intelligence Program.
[[Page 117 STAT. 2607]]
(4) Independent cost estimates, prepared by independent
offices, have historically represented a more accurate
projection of the costs of acquisition of major systems.
(5) Recognizing the benefits associated with independent
cost estimates for the acquisition of major systems, the
Secretary of Defense has built upon the statutory requirement in
section 2434 of title 10, United States Code, to develop and
consider independent cost estimates for the acquisition of such
systems by mandating the use of such estimates in budget
requests of the Department of Defense.
(6) The mandatory use throughout the intelligence community
of independent cost estimates for the acquisition of major
systems will assist the President and Congress in the
development and funding of budgets which more accurately reflect
the requirements and priorities of the United States Government
for intelligence and intelligence-related activities.
(b) Budget Treatment of Costs of Acquisition of Major Systems.--(1)
Title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.) is
amended by inserting after section 506 the following new section:
``Sec. 506A. <<NOTE: 50 USC 415a-1.>> (a) Independent Cost
Estimates.--(1) The Director of Central Intelligence shall, in
consultation with the head of each element of the intelligence community
concerned, prepare an independent cost estimate of the full life-cycle
cost of development, procurement, and operation of each major system to
be acquired by the intelligence community.
``(2) Each independent cost estimate for a major system shall, to
the maximum extent practicable, specify the amount required to be
appropriated and obligated to develop, procure, and operate the major
system in each fiscal year of the proposed period of development,
procurement, and operation of the major system.
``(3)(A) In the case of a program of the intelligence community that
qualifies as a major system, an independent cost estimate shall be
prepared before the submission to Congress of the budget of the
President for the first fiscal year in which appropriated funds are
anticipated to be obligated for the development or procurement of such
major system.
``(B) In the case of a program of the intelligence community for
which an independent cost estimate was not previously required to be
prepared under this section, including a program for which development
or procurement commenced before the date of the enactment of the
Intelligence Authorization Act for Fiscal Year 2004, if the aggregate
future costs of development or procurement (or any combination of such
activities) of the program will exceed $500,000,000 (in current fiscal
year dollars), the program shall qualify as a major system for purposes
of this section, and an independent cost estimate for such major system
shall be prepared before the submission to Congress of the budget of the
President for the first fiscal year thereafter in which appropriated
funds are anticipated to be obligated for such major system.
``(4) The independent cost estimate for a major system shall be
updated upon--
``(A) the completion of any preliminary design review
associated with the major system;
[[Page 117 STAT. 2608]]
``(B) any significant modification to the anticipated design
of the major system; or
``(C) any change in circumstances that renders the current
independent cost estimate for the major system inaccurate.
``(5) Any update of an independent cost estimate for a major system
under paragraph (4) shall meet all requirements for independent cost
estimates under this section, and shall be treated as the most current
independent cost estimate for the major system until further updated
under that paragraph.
``(b) <<NOTE: Establishment.>> Preparation of Independent Cost
Estimates.--(1) The Director shall establish within the Office of the
Deputy Director of Central Intelligence for Community Management an
office which shall be responsible for preparing independent cost
estimates, and any updates thereof, under subsection (a), unless a
designation is made under paragraph (2).
``(2) In the case of the acquisition of a major system for an
element of the intelligence community within the Department of Defense,
the Director and the Secretary of Defense shall provide that the
independent cost estimate, and any updates thereof, under subsection (a)
be prepared by an entity jointly designated by the Director and the
Secretary in accordance with section 2434(b)(1)(A) of title 10, United
States Code.
``(c) Utilization in Budgets of President.--(1) If the budget of the
President requests appropriations for any fiscal year for the
development or procurement of a major system by the intelligence
community, the President shall, subject to paragraph (2), request in
such budget an amount of appropriations for the development or
procurement, as the case may be, of the major system that is equivalent
to the amount of appropriations identified in the most current
independent cost estimate for the major system for obligation for each
fiscal year for which appropriations are requested for the major system
in such budget.
``(2) If the amount of appropriations requested in the budget of the
President for the development or procurement of a major system is less
than the amount of appropriations identified in the most current
independent cost estimate for the major system for obligation for each
fiscal year for which appropriations are requested for the major system
in such budget, the President shall include in the budget justification
materials submitted to Congress in support of such budget--
``(A) an explanation for the difference between the amount
of appropriations requested and the amount of appropriations
identified in the most current independent cost estimate;
``(B) a description of the importance of the major system to
the national security;
``(C) an assessment of the consequences for the funding of
all programs of the National Foreign Intelligence Program in
future fiscal years if the most current independent cost
estimate for the major system is accurate and additional
appropriations are required in future fiscal years to ensure the
continued development or procurement of the major system,
including the consequences of such funding shortfalls on the
major system and all other programs of the National Foreign
Intelligence Program; and
``(D) such other information on the funding of the major
system as the President considers appropriate.
[[Page 117 STAT. 2609]]
``(d) Inclusion of Estimates in Budget Justification Materials.--The
budget justification materials submitted to Congress in support of the
budget of the President shall include the most current independent cost
estimate under this section for each major system for which
appropriations are requested in such budget for any fiscal year.
``(e) Definitions.--In this section:
``(1) The term `budget of the President' means the budget of
the President for a fiscal year as submitted to Congress under
section 1105(a) of title 31, United States Code.
``(2) The term `independent cost estimate' means a pragmatic
and neutral analysis, assessment, and quantification of all
costs and risks associated with the acquisition of a major
system, which shall be based on programmatic and technical
specifications provided by the office within the element of the
intelligence community with primary responsibility for the
development, procurement, or operation of the major system.
``(3) The term `major system' means any significant program
of an element of the intelligence community with projected total
development and procurement costs exceeding $500,000,000 (in
current fiscal year dollars), which costs shall include all end-
to-end program costs, including costs associated with the
development and procurement of the program and any other costs
associated with the development and procurement of systems
required to support or utilize the program.''.
(2) The table of contents for the National Security Act of 1947 is
amended by inserting after the item relating to section 506 the
following new item:
``Sec. 506A. Budget treatment of costs of acquisition of major systems
by the intelligence community.''.
(c) <<NOTE: 50 USC 415a-1 note.>> Effective Date.--The amendments
made by subsection (b) shall take effect on the date of the enactment of
this Act.
(d) <<NOTE: 50 USC 415a-1 note.>> Limitations.--(1)(A) For each
major system for which funds have been authorized for a fiscal year
before fiscal year 2005, or for which funds are sought in the budget of
the President for fiscal year 2005, as submitted to Congress pursuant to
section 1105(a) of title 31, United States Code, and for which no
independent cost estimate has been provided to Congress, no contract, or
option to contract, for the procurement or acquisition of such major
system may be entered into, or option to contract be exercised, before
the date of the enactment of an Act to authorize appropriations for
fiscal year 2005 for intelligence and intelligence-related activities of
the United States Government.
(B) Subparagraph (A) shall not affect any contract for procurement
or acquisition that was entered into before the date of the enactment of
this Act.
(2) <<NOTE: Effective date. President.>> Commencing as of the date
of the submittal to Congress of the budget of the President for fiscal
year 2006 pursuant to section 1105(a) of title 31, United States Code,
no funds may be obligated or expended for the development or procurement
of a major system until the President has complied with the requirements
of section 506A of the National Security Act of 1947 (as added by
subsection (b)) with respect to such major system.
[[Page 117 STAT. 2610]]
(3) In this subsection, the terms ``independent cost estimate'' and
``major system'' have the meaning given such terms in subsection (e) of
section 506A of the National Security Act of 1947 (as so added).
SEC. 313. MODIFICATION OF SUNSET OF APPLICATION OF SANCTIONS LAWS TO
INTELLIGENCE ACTIVITIES.
(a) Modification.--Section 905 of the National Security Act of 1947
(50 U.S.C. 441d) is repealed.
(b) Clerical Amendment.--The table of contents for that Act is
amended by striking the item relating to section 905.
SEC. 314. MODIFICATION OF NOTICE AND WAIT REQUIREMENTS ON PROJECTS TO
CONSTRUCT OR IMPROVE INTELLIGENCE COMMUNITY FACILITIES.
(a) Increase of Thresholds for Notice.--Subsection (a) of section
602 of the Intelligence Authorization Act for Fiscal Year 1995 (Public
Law 103-359; 108 Stat. 3432; 50 U.S.C. 403-2b(a)) is amended--
(1) by striking ``$750,000'' each place it appears and
inserting ``$5,000,000''; and
(2) by striking ``$500,000'' each place it appears and
inserting ``$1,000,000''.
(b) Notice and Wait Requirements for Emergency Projects.--Subsection
(b)(2) of that section is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(2) by inserting ``(A)'' after ``(2) Report.--'';
(3) by striking ``21-day period'' and inserting ``7-day
period''; and
(4) by adding at the end the following new subparagraph:
``(B) Notwithstanding subparagraph (A), a project referred
to in paragraph (1) may begin on the date the notification is
received by the appropriate committees of Congress under that
paragraph if the Director of Central Intelligence and the
Secretary of Defense jointly determine that--
``(i) an emergency exists with respect to the
national security or the protection of health, safety,
or environmental quality; and
``(ii) any delay in the commencement of the project
would harm any or all of those interests.''.
SEC. 315. EXTENSION OF DEADLINE FOR FINAL REPORT OF THE NATIONAL
COMMISSION FOR THE REVIEW OF THE RESEARCH AND DEVELOPMENT
PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY.
(a) In General.--Subsection (a) of section 1007 of the Intelligence
Authorization Act for Fiscal Year 2003 (Public Law 107-306; 50 U.S.C.
401 note; 116 Stat. 2442) is amended by striking ``September 1, 2003''
and inserting ``September 1, 2004''.
(b) <<NOTE: 50 USC 401 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect as if included in the enactment of
section 1007 of the Intelligence Authorization Act for Fiscal Year 2003.
SEC. 316. IMPROVEMENT OF INFORMATION SHARING AMONG FEDERAL, STATE, AND
LOCAL GOVERNMENT OFFICIALS.
(a) Training Program for State and Local Officials.--Section 892(c)
of the Homeland Security Act of 2002 (Public Law
[[Page 117 STAT. 2611]]
107-296; 6 U.S.C. 482) is amended by adding at the end the following new
paragraph:
``(3)(A) The Secretary shall establish a program to provide
appropriate training to officials described in subparagraph (B)
in order to assist such officials in--
``(i) identifying sources of potential terrorist
threats through such methods as the Secretary determines
appropriate;
``(ii) reporting information relating to such
potential terrorist threats to the appropriate Federal
agencies in the appropriate form and manner;
``(iii) assuring that all reported information is
systematically submitted to and passed on by the
Department for use by appropriate Federal agencies; and
``(iv) understanding the mission and roles of the
intelligence community to promote more effective
information sharing among Federal, State, and local
officials and representatives of the private sector to
prevent terrorist attacks against the United States.
``(B) The officials referred to in subparagraph (A) are
officials of State and local government agencies and
representatives of private sector entities with responsibilities
relating to the oversight and management of first responders,
counterterrorism activities, or critical infrastructure.
``(C) The Secretary shall consult with the Attorney General
to ensure that the training program established in subparagraph
(A) does not duplicate the training program established in
section 908 of the USA PATRIOT Act (Public Law 107-56; 28 U.S.C.
509 note).
``(D) The Secretary shall carry out this paragraph in
consultation with the Director of Central Intelligence and the
Attorney General.''.
(b) <<NOTE: Deadline.>> Report.--Not later than 60 days after the
date of the enactment of this Act, the Secretary of Homeland Security
shall submit to Congress a report that describes the Secretary's plan
for implementing section 892 of the Homeland Security Act of 2002 and
includes an estimated date of completion of the implementation.
SEC. 317. <<NOTE: 50 USC 403-3 note.>> PILOT PROGRAM ON ANALYSIS OF
SIGNALS AND OTHER INTELLIGENCE BY INTELLIGENCE ANALYSTS OF
VARIOUS ELEMENTS OF THE INTELLIGENCE COMMUNITY.
(a) In General.--The Director of Central Intelligence shall, in
coordination with the Secretary of Defense, carry out a pilot program to
assess the feasibility and advisability of permitting intelligence
analysts of various elements of the intelligence community to access and
analyze intelligence from the databases of other elements of the
intelligence community in order to achieve the objectives set forth in
subsection (c).
(b) Covered Intelligence.--The intelligence to be analyzed under the
pilot program under subsection (a) shall include the following:
(1) Signals intelligence of the National Security Agency.
(2) Such intelligence of other elements of the intelligence
community as the Director shall select for purposes of the pilot
program.
[[Page 117 STAT. 2612]]
(c) Objectives.--The objectives set forth in this subsection are as
follows:
(1) To enhance the capacity of the intelligence community to
undertake ``all source fusion'' analysis in support of the
intelligence and intelligence-related missions of the
intelligence community.
(2) To reduce, to the extent possible, the amount of
intelligence collected by the intelligence community that is not
assessed, or reviewed, by intelligence analysts.
(3) To reduce the burdens imposed on analytical personnel of
the elements of the intelligence community by current practices
regarding the sharing of intelligence among elements of the
intelligence community.
(d) <<NOTE: Deadline.>> Commencement.--The Director shall commence
the pilot program under subsection (a) not later than December 31, 2003.
(e) Various Mechanisms Required.--In carrying out the pilot program
under subsection (a), the Director shall develop and utilize various
mechanisms to facilitate the access to, and the analysis of,
intelligence in the databases of the intelligence community by
intelligence analysts of other elements of the intelligence community,
including the use of so-called ``detailees in place''.
(f) Security.--(1) In carrying out the pilot program under
subsection (a), the Director shall take appropriate actions to protect
against the disclosure and unauthorized use of intelligence in the
databases of the elements of the intelligence community which may
endanger sources and methods which (as determined by the Director)
warrant protection.
(2) The actions taken under paragraph (1) shall include the
provision of training on the accessing and handling of information in
the databases of various elements of the intelligence community and the
establishment of limitations on access to information in such databases
regarding United States persons.
(g) <<NOTE: Deadline.>> Assessment.--Not later than February 1,
2004, after the commencement under subsection (d) of the pilot program
under subsection (a), the Under Secretary of Defense for Intelligence
and the Assistant Director of Central Intelligence for Analysis and
Production shall jointly carry out an assessment of the progress of the
pilot program in meeting the objectives set forth in subsection (c).
(h) Report.--(1) The Director of Central Intelligence shall, in
coordination with the Secretary of Defense, submit to the appropriate
committees of Congress a report on the assessment carried out under
subsection (g).
(2) The report shall include--
(A) a description of the pilot program under subsection (a);
(B) the findings of the Under Secretary and Assistant
Director as a result of the assessment;
(C) any recommendations regarding the pilot program that the
Under Secretary and the Assistant Director jointly consider
appropriate in light of the assessment; and
(D) any recommendations that the Director and Secretary
consider appropriate for purposes of the report.
(i) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
[[Page 117 STAT. 2613]]
(1) the Select Committee on Intelligence, the Committee on
Armed Services, and the Committee on Appropriations of the
Senate; and
(2) the Permanent Select Committee on Intelligence, the
Committee on Armed Services, and the Committee on Appropriations
of the House of Representatives.
SEC. 318. <<NOTE: 50 USC 441g note.>> PILOT PROGRAM ON RECRUITMENT AND
TRAINING OF INTELLIGENCE ANALYSTS.
(a) Pilot Program.--(1) The Director of Central Intelligence shall
carry out a pilot program to ensure that selected students or former
students are provided funds to continue academic training, or are
reimbursed for academic training previously obtained, in areas of
specialization that the Director, in consultation with the other heads
of the elements of the intelligence community, identifies as areas in
which the current analytic capabilities of the intelligence community
are deficient or in which future analytic capabilities of the
intelligence community are likely to be deficient.
(2) A student or former student selected for participation in the
pilot program shall commit to employment with an element of the
intelligence community, following completion of appropriate academic
training, under such terms and conditions as the Director considers
appropriate.
(3) The pilot program shall be known as the Pat Roberts Intelligence
Scholars Program.
(b) Elements.--In carrying out the pilot program under subsection
(a), the Director shall--
(1) establish such requirements relating to the academic
training of participants as the Director considers appropriate
to ensure that participants are prepared for employment as
intelligence analysts; and
(2) periodically review the areas of specialization of the
elements of the intelligence community to determine the areas in
which such elements are, or are likely to be, deficient in
analytic capabilities.
(c) Duration.--The Director shall carry out the pilot program under
subsection (a) during fiscal years 2004 through 2006.
(d) Limitation on Number of Members During Fiscal Year 2004.--The
total number of individuals participating in the pilot program under
subsection (a) during fiscal year 2004 may not exceed 150 students.
(e) Responsibility.--The Director shall carry out the pilot program
under subsection (a) through the Assistant Director of Central
Intelligence for Analysis and Production.
(f) <<NOTE: Deadlines.>> Reports.--(1) Not later than 120 days after
the date of the enactment of this Act, the Director shall submit to
Congress a preliminary report on the pilot program under subsection (a),
including a description of the pilot program and the authorities to be
utilized in carrying out the pilot program.
(2) Not later than one year after the commencement of the pilot
program, the Director shall submit to Congress a report on the pilot
program. The report shall include--
(A) a description of the activities under the pilot program,
including the number of individuals who participated in the
pilot program and the training provided such individuals under
the pilot program;
[[Page 117 STAT. 2614]]
(B) an assessment of the effectiveness of the pilot program
in meeting the purpose of the pilot program; and
(C) any recommendations for additional legislative or
administrative action that the Director considers appropriate in
light of the pilot program.
(g) Funding.--Of the amounts authorized to be appropriated by this
Act, $4,000,000 shall be available until expended to carry out this
section.
SEC. 319. <<NOTE: 50 USC 403 note.>> IMPROVEMENT OF EQUALITY OF
EMPLOYMENT OPPORTUNITIES IN THE INTELLIGENCE COMMUNITY.
(a) Findings.--Congress makes the following findings:
(1) It is the recommendation of the Joint Inquiry of the
Senate Select Committee on Intelligence and the House Permanent
Select Committee on Intelligence into Intelligence Community
Activities Before and After the Terrorist Attacks of September
11, 2001, that the Intelligence Community should enhance
recruitment of a more ethnically and culturally diverse
workforce and devise a strategy to capitalize upon the unique
cultural and linguistic capabilities of first generation
Americans.
(2) The Intelligence Community could greatly benefit from an
increased number of employees who are proficient in foreign
languages and knowledgeable of world cultures, especially in
foreign languages that are critical to the national security
interests of the United States. Particular emphasis should be
given to the recruitment of United States citizens whose
linguistic capabilities are acutely required for the improvement
of the overall intelligence collection and analysis effort of
the United States Government.
(3) The Intelligence Community has a significantly lower
percentage of women and minorities than the total workforce of
the Federal government and the total civilian labor force.
(4) Women and minorities continue to be under-represented in
senior grade levels, and in core mission areas, of the
intelligence community.
(b) Pilot Project To Promote Equality of Employment Opportunities
for Women and Minorities Throughout the Intelligence Community Using
Innovative Methodologies.--The Director of Central Intelligence shall
carry out a pilot project under this section to test and evaluate
alternative, innovative methods to promote equality of employment
opportunities in the intelligence community for women, minorities, and
individuals with diverse ethnic and cultural backgrounds, skills,
language proficiency, and expertise.
(c) Methods.--In carrying out the pilot project, the Director shall
employ methods to increase diversity of officers and employees in the
intelligence community.
(d) Duration of Project.--The Director shall carry out the project
under this section for a 3-year period.
(e) <<NOTE: Deadline.>> Report.--Not later than 2 years after the
date the Director implements the pilot project under this section, the
Director shall submit to Congress a report on the project. The report
shall include--
(1) an assessment of the effectiveness of the project; and
(2) recommendations on the continuation of the project, as
well recommendations as for improving the effectiveness
[[Page 117 STAT. 2615]]
of the project in meeting the goals of promoting equality of
employment opportunities in the intelligence community for
women, minorities, and individuals with diverse ethnic and
cultural backgrounds, skills, language proficiency, and
expertise.
(f) <<NOTE: Deadline. Reports.>> Diversity Plan.--(1) Not later than
February 15, 2004, the Director of Central Intelligence shall submit to
Congress a report which describes the plan of the Director, entitled the
``DCI Diversity Strategic Plan'', and any subsequent revision to that
plan, to increase diversity of officers and employees in the
intelligence community, including the short- and long-term goals of the
plan. The report shall also provide a detailed description of the
progress that has been made by each element of the intelligence
community in implementing the plan.
(2) In implementing the plan, the Director shall incorporate
innovative methods for recruitment and hiring that the Director has
determined to be effective from the pilot project carried out under this
section.
(g) Intelligence Community Defined.--In this section, the term
``intelligence community'' has the meaning given that term in section
3(4) of the National Security Act of 1947 (50 U.S.C. 401(4)).
SEC. 320. SENSE OF CONGRESS ON RECRUITMENT AS INTELLIGENCE COMMUNITY
PERSONNEL OF MEMBERS OF THE ARMED FORCES ON THEIR DISCHARGE
OR RELEASE FROM DUTY.
It is the sense of Congress that the elements of the intelligence
community should, in the course of their civilian recruitment efforts in
the United States, endeavor to recruit as personnel of the intelligence
community citizens and, as appropriate, nationals of the United States
who are members of the Armed Forces who participated in Operation
Enduring Freedom, Operation Iraqi Freedom, and other campaigns
undertaken abroad upon the separation, discharge, or release of such
individuals from the Armed Forces.
SEC. 321. EXTERNAL COLLECTION CAPABILITIES AND REQUIREMENTS REVIEW
PANEL.
The President may establish an External Collection Capabilities and
Requirements Review Panel as specified in the classified annex to this
Act.
Subtitle C--Counterintelligence
SEC. 341. COUNTERINTELLIGENCE INITIATIVES FOR THE INTELLIGENCE
COMMUNITY.
(a) In General.--(1) Title XI of the National Security Act of 1947
(50 U.S.C. 401 et seq.) is amended by adding at the end the following
new section:
``Sec. 1102. <<NOTE: 50 USC 442a.>> (a) Inspection Process.--(1) In
order to protect intelligence sources and methods from unauthorized
disclosure, the Director of Central Intelligence shall establish and
implement an inspection process for all agencies and departments of the
United States that handle classified information relating to the
national security of the United States intended to assure that those
agencies
[[Page 117 STAT. 2616]]
and departments maintain effective operational security practices and
programs directed against counterintelligence activities.
``(2) The Director shall carry out the process through the Office of
the National Counterintelligence Executive.
``(b) <<NOTE: Procedures.>> Annual Review of Dissemination Lists.--
(1) The Director of Central Intelligence shall establish and implement a
process for all elements of the intelligence community to review, on an
annual basis, individuals included on distribution lists for access to
classified information. Such process shall ensure that only individuals
who have a particularized `need to know' (as determined by the Director)
are continued on such distribution lists.
``(2) <<NOTE: Deadline. Certification.>> Not later than October 15
of each year, the Director shall certify to the congressional
intelligence committees that the review required under paragraph (1) has
been conducted in all elements of the intelligence community during the
preceding fiscal year.
``(c) <<NOTE: Procedures.>> Completion of Financial Disclosure
Statements Required for Access to Certain Classified Information.--(1)
The Director of Central Intelligence shall establish and implement a
process by which each head of an element of the intelligence community
directs that all employees of that element, in order to be granted
access to classified information referred to in subsection (a) of
section 1.3 of Executive Order No. 12968 (August 2, 1995; 60 Fed. Reg.
40245; 50 U.S.C. 435 note), submit financial disclosure forms as
required under subsection (b) of such section.
``(2) The Director shall carry out paragraph (1) through the Office
of the National Counterintelligence Executive.
``(d) <<NOTE: Procedures.>> Arrangements To Handle Sensitive
Information.--The Director of Central Intelligence shall establish, for
all elements of the intelligence community, programs and procedures by
which sensitive classified information relating to human intelligence is
safeguarded against unauthorized disclosure by employees of those
elements.''.
(2) The table of contents contained in the first section of such Act
is amended in the items relating to title XI by adding at the end the
following new item:
``Sec. 1102. Counterintelligence initiatives.''.
(b) <<NOTE: Procedures. 28 USC 519 note.>> Intelligence and National
Security Aspects of Espionage Prosecutions.--The Attorney General,
acting through the Office of Intelligence Policy and Review of the
Department of Justice, and in consultation with the Director of Central
Intelligence, acting through the Office of the National
Counterintelligence Executive, shall establish policies and procedures
to assist the Attorney General in the consideration of intelligence and
national security-related equities in the development of charging
documents and related pleadings in espionage prosecutions.
Subtitle D--Reports
SEC. 351. REPORT ON CLEARED INSIDER THREAT TO CLASSIFIED COMPUTER
NETWORKS.
(a) Report Required.--The Director of Central Intelligence and the
Secretary of Defense shall jointly submit to the appropriate committees
of Congress a report on the risks to the national security of the United
States of the current computer security practices
[[Page 117 STAT. 2617]]
of the elements of the intelligence community and of the Department of
Defense.
(b) Assessments.--The report under subsection (a) shall include an
assessment of the following:
(1) The vulnerability of the computers and computer systems
of the elements of the intelligence community, and of the
Department of Defense, to various threats from foreign
governments, international terrorist organizations, and
organized crime, including information warfare (IW), Information
Operations (IO), Computer Network Exploitation (CNE), and
Computer Network Attack (CNA).
(2) The risks of providing users of local area networks
(LANs) or wide-area networks (WANs) of computers that include
classified information with capabilities for electronic mail,
upload and download, or removable storage media without also
deploying comprehensive computer firewalls, accountability
procedures, or other appropriate security controls.
(3) Any other matters that the Director and the Secretary
jointly consider appropriate for purposes of the report.
(c) Information on Access to Networks.--The report under subsection
(a) shall also include information as follows:
(1) An estimate of the number of access points on each
classified computer or computer system of an element of the
intelligence community or the Department of Defense that permit
unsupervised uploading or downloading of classified information,
set forth by level of classification.
(2) An estimate of the number of individuals utilizing such
computers or computer systems who have access to input-output
devices on such computers or computer systems.
(3) A description of the policies and procedures governing
the security of the access points referred to in paragraph (1),
and an assessment of the adequacy of such policies and
procedures.
(4) An assessment of the viability of utilizing other
technologies (including so-called ``thin client servers'') to
achieve enhanced security of such computers and computer systems
through more rigorous control of access to such computers and
computer systems.
(d) Recommendations.--The report under subsection (a) shall also
include such recommendations for modifications or improvements of the
current computer security practices of the elements of the intelligence
community, and of the Department of Defense, as the Director and the
Secretary jointly consider appropriate as a result of the assessments
under subsection (b) and the information under subsection (c).
(e) Submittal Date.--The report under subsection (a) shall be
submitted not later than February 15, 2004.
(f) Form.--The report under subsection (a) may be submitted in
classified or unclassified form, at the election of the Director.
(g) Definitions.--In this section:
(1) The term ``appropriate committees of Congress'' means--
(A) the Select Committee on Intelligence and the
Committee on Armed Services of the Senate; and
(B) the Permanent Select Committee on Intelligence
and the Committee on Armed Services of the House of
Representatives.
[[Page 117 STAT. 2618]]
(2) The term ``elements of the intelligence community''
means the elements of the intelligence community set forth in or
designated under section 3(4) of the National Security Act of
1947 (50 U.S.C. 401a(4)).
SEC. 352. REPORT ON SECURITY BACKGROUND INVESTIGATIONS AND SECURITY
CLEARANCE PROCEDURES OF THE FEDERAL GOVERNMENT.
(a) Report Required.--The Director of Central Intelligence, the
Secretary of Defense, the Attorney General, the Director of the Office
of Personnel Management, and the heads of other appropriate Federal
departments and agencies (as determined by the President) shall jointly
submit to the appropriate committees of Congress a report on the utility
and effectiveness of the current security background investigations and
security clearance procedures of the Federal Government in meeting the
purposes of such investigations and procedures.
(b) Particular Report Matters.--The report shall address in
particular the following:
(1) A comparison of the costs and benefits of conducting
background investigations for Secret clearance with the costs
and benefits of conducting full field background investigations.
(2) The standards governing the revocation of security
clearances.
(c) Recommendations.--The report under subsection (a) shall include
such recommendations for modifications or improvements of the current
security background investigations or security clearance procedures of
the Federal Government as are considered appropriate as a result of the
preparation of the report under that subsection.
(d) Submittal Date.--The report under subsection (a) shall be
submitted not later than February 15, 2004.
(e) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Select Committee on Intelligence and the Committees
on Armed Services and the Judiciary of the Senate; and
(2) the Permanent Select Committee on Intelligence and the
Committees on Armed Services and the Judiciary of the House of
Representatives.
SEC. 353. REPORT ON DETAIL OF CIVILIAN INTELLIGENCE PERSONNEL AMONG
ELEMENTS OF THE INTELLIGENCE COMMUNITY AND THE DEPARTMENT OF
DEFENSE.
(a) Report Required.--The Director of Central Intelligence shall, in
consultation with the heads of the elements of the intelligence
community, submit to the appropriate committees of Congress a report on
means of improving the detail or transfer of civilian intelligence
personnel between and among the various elements of the intelligence
community for the purpose of enhancing the flexibility and effectiveness
of the intelligence community in responding to changes in requirements
for the collection, analysis, and dissemination of intelligence.
(b) Report Elements.--The report under subsection (a) shall--
(1) set forth a variety of proposals on means of improving
the detail or transfer of civilian intelligence personnel as
described in that subsection;
[[Page 117 STAT. 2619]]
(2) identify the proposal or proposals determined by the
heads of the elements of the intelligence community most likely
to meet the purpose described in that subsection; and
(3) include such recommendations for such legislative or
administrative action as the heads of the elements of the
intelligence community consider appropriate to implement the
proposal or proposals identified under paragraph (2).
(c) Submittal Date.--The report under subsection (a) shall be
submitted not later than February 15, 2004.
(d) Definitions.--In this section:
(1) The term ``appropriate committees of Congress'' means--
(A) the Select Committee on Intelligence and the
Committees on Armed Services, Governmental Affairs, and
the Judiciary of the Senate; and
(B) the Permanent Select Committee on Intelligence
and the Committees on Armed Services, Government Reform,
and the Judiciary of the House of Representatives.
(2) The term ``elements of the intelligence community''
means the elements of the intelligence community set forth in or
designated under section 3(4) of the National Security Act of
1947 (50 U.S.C. 401a(4)).
(3) The term ``heads of the elements of the intelligence
community'' includes the Secretary of Defense with respect to
each element of the intelligence community within the Department
of Defense or the military departments.
SEC. 354. <<NOTE: President.>> REPORT ON MODIFICATIONS OF POLICY AND LAW
ON CLASSIFIED INFORMATION TO FACILITATE SHARING OF
INFORMATION FOR NATIONAL SECURITY PURPOSES.
(a) <<NOTE: Deadline.>> Report.--Not later than four months after
the date of the enactment of this Act, the President shall submit to the
appropriate committees of Congress a report that--
(1) identifies impediments in current policy and regulations
to the sharing of classified information horizontally across and
among Federal departments and agencies, and vertically between
the Federal Government and agencies of State and local
governments and the private sector, for national security
purposes, including homeland security; and
(2) proposes appropriate modifications of policy, law, and
regulations to eliminate such impediments in order to facilitate
such sharing of classified information for national security
purposes, including homeland security.
(b) Considerations.--In preparing the report under subsection (a),
the President shall--
(1) consider the extent to which the reliance on a document-
based approach to the protection of classified information
impedes the sharing of classified information; and
(2) consider the extent to which the utilization of a
database-based approach, or other electronic approach, to the
protection of classified information might facilitate the
sharing of classified information.
(c) Coordination With Other Information Sharing Activities.--In
preparing the report under subsection (a), the President shall, to the
maximum extent practicable, take into account actions being undertaken
under the Homeland Security Information Sharing Act (subtitle I of title
VIII of Public Law 107-296; 116 Stat. 2252; 6 U.S.C. 481 et seq.).
[[Page 117 STAT. 2620]]
(d) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Select Committee on Intelligence and the Committees
on Armed Services, Governmental Affairs, and the Judiciary of
the Senate; and
(2) the Permanent Select Committee on Intelligence, the
Select Committee on Homeland Security, and the Committees on
Armed Services and the Judiciary of the House of
Representatives.
SEC. 355. REPORT ON STRATEGIC PLANNING.
(a) <<NOTE: Deadline.>> Report.--Not later than February 15, 2004,
the Secretary of Defense and the Director of Central Intelligence shall
jointly submit to the appropriate committees of Congress a report that
assesses progress in the following:
(1) The development by the Department of Defense and the
intelligence community of a comprehensive and uniform analytical
capability to assess the utility and advisability of various
sensor and platform architectures and capabilities for the
collection of intelligence.
(2) The improvement of coordination between the Department
and the intelligence community on strategic and budgetary
planning.
(b) Form.--The report under subsection (a) may be submitted in
classified form.
(c) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Select Committee on Intelligence and the Committee
on Armed Services of the Senate; and
(2) the Permanent Select Committee on Intelligence and the
Committee on Armed Services of the House of Representatives.
SEC. 356. REPORT ON UNITED STATES DEPENDENCE ON COMPUTER HARDWARE AND
SOFTWARE MANUFACTURED OVERSEAS.
(a) <<NOTE: Deadline.>> Report.--Not later than February 15, 2004,
the Director of Central Intelligence shall submit to the appropriate
committees of Congress a report on the extent of United States
dependence on computer hardware or software that is manufactured
overseas.
(b) Elements.--The report under subsection (a) shall address the
following:
(1) The extent to which the United States currently depends
on computer hardware or software that is manufactured overseas.
(2) The extent to which United States dependence, if any, on
such computer hardware or software is increasing.
(3) The vulnerabilities of the national security and economy
of the United States as a result of United States dependence, if
any, on such computer hardware or software.
(4) Any other matters relating to United States dependence,
if any, on such computer hardware or software that the Director
considers appropriate.
(c) Consultation With Private Sector.--(1) In preparing the report
under subsection (a), the Director may consult, and is encouraged to
consult, with appropriate persons and entities in the computer hardware
or software industry and with other appropriate persons and entities in
the private sector.
[[Page 117 STAT. 2621]]
(2) Consultations of the Director with persons or entities under
paragraph (1) shall not be treated as the activities of an advisory
committee for purposes of the Federal Advisory Committee Act (5 U.S.C.
App.).
(d) Form.--(1) The report under subsection (a) shall be submitted in
unclassified form, but may include a classified annex.
(2) The report may be in the form of a National Intelligence
Estimate.
(e) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Select Committee on Intelligence and the Committee
on Armed Services of the Senate; and
(2) the Permanent Select Committee on Intelligence and the
Committee on Armed Services of the House of Representatives.
SEC. 357. <<NOTE: 50 USC 403 note.>> REPORT ON LESSONS LEARNED FROM
MILITARY OPERATIONS IN IRAQ.
(a) <<NOTE: Deadline.>> Report.--As soon as possible, but not later
than one year after the date of the enactment of this Act, the Director
of Central Intelligence shall submit to the appropriate committees of
Congress a report on the intelligence lessons learned as a result of
Operation Iraqi Freedom, including lessons relating to the following:
(1) The tasking, collection, processing, exploitation,
analysis, and dissemination of intelligence.
(2) The accuracy, timeliness, and objectivity of
intelligence analysis.
(3) The intelligence support available to policymakers and
members of the Armed Forces in combat.
(4) The coordination of intelligence activities and
operations with military operations.
(5) The strengths and limitations of intelligence systems
and equipment.
(6) Such other matters as the Director considers
appropriate.
(b) Recommendations.--The report under subsection (a) shall include
such recommendations on improvement in the matters described in
subsection (a) as the Director considers appropriate.
(c) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Permanent Select Committee on Intelligence and the
Committee on Armed Services of the House of Representatives; and
(2) the Select Committee on Intelligence and the Committee
on Armed Services of the Senate.
SEC. 358. <<NOTE: 10 USC 113 note.>> REPORTS ON CONVENTIONAL WEAPONS AND
AMMUNITION OBTAINED BY IRAQ IN VIOLATION OF CERTAIN UNITED
NATIONS SECURITY COUNCIL RESOLUTIONS.
(a) <<NOTE: Deadline.>> Preliminary Report.--Not later than 90 days
after the date of the enactment of this Act, the Director of the Defense
Intelligence Agency shall, after such consultation with the Secretary of
State and the Attorney General as the Director considers appropriate,
submit to the appropriate committees of Congress a preliminary report on
all information obtained by the Department of Defense and the
intelligence community on the conventional weapons and ammunition
obtained by Iraq in violation of applicable
[[Page 117 STAT. 2622]]
resolutions of the United Nations Security Council adopted since the
invasion of Kuwait by Iraq in August 1990.
(b) <<NOTE: Deadline.>> Final Report.--(1) Not later than one year
after the date of the enactment of this Act, the Director shall submit
to the appropriate committees of Congress a final report on the
information described in subsection (a).
(2) The final report under paragraph (1) shall include such updates
of the preliminary report under subsection (a) as the Director considers
appropriate.
(c) Elements.--Each report under this section shall set forth, to
the extent practicable, with respect to each shipment of weapons or
ammunition addressed in such report the following:
(1) The country of origin.
(2) Any country of transshipment.
(d) Form.--Each report under this section shall be submitted in
unclassified form, but may include a classified annex.
(e) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Select Committee on Intelligence and the Committees
on Armed Services and Foreign Relations of the Senate; and
(2) the Permanent Select Committee on Intelligence and the
Committees on Armed Services and International Relations of the
House of Representatives.
SEC. 359. REPORT ON OPERATIONS OF DIRECTORATE OF INFORMATION ANALYSIS
AND INFRASTRUCTURE PROTECTION AND TERRORIST THREAT
INTEGRATION CENTER.
(a) <<NOTE: President.>> Report Required.--The President shall
submit to the appropriate committees of Congress a report on the
operations of the Directorate of Information Analysis and Infrastructure
Protection of the Department of Homeland Security and the Terrorist
Threat Integration Center. The report shall include the following:
(1) An assessment of the operations of the Directorate and
the Center, including the capabilities of each--
(A) to meet personnel requirements, including
requirements to employ qualified analysts, and the
status of efforts to employ qualified analysts;
(B) to share intelligence information with the other
elements of the intelligence community, including the
sharing of intelligence information through secure
information technology connections between the
Directorate, the Center, and the other elements of the
intelligence community;
(C) to disseminate intelligence information, or
analyses of intelligence information, to other
departments and agencies of the Federal Government and,
as appropriate, to State and local governments;
(D) to coordinate with State and local
counterterrorism and law enforcement officials;
(E) to receive information from Federal, State, and
local officials, and private sector entities, relating
to the respective responsibilities and authorities of
the Directorate and the Center; and
(F) to access information, including intelligence
and law enforcement information, from the departments
and
[[Page 117 STAT. 2623]]
agencies of the Federal Government, including the
ability of the Directorate to access, in a timely and
efficient manner, all information authorized by section
202 of the Homeland Security Act of 2002 (Public Law
107-296; 6 U.S.C. 122).
(2) An assessment of the ability of the Center to fulfill
the responsibilities assigned to it by the President given its
structure, authorities, current assets, and capabilities.
(3) An assessment of the ability of the Directorate to
fulfill the responsibilities set forth in section 201 of the
Homeland Security Act of 2002 (6 U.S.C. 121) given its current
assets and capabilities.
(4) A plan of action (including appropriate milestones,
funding, and sources of funding) for bringing the Center to its
full operational capacity as called for in the Information on
the State of the Union given by the President to Congress under
section 3 of Article II of the Constitution of the United States
in 2003.
(5) A delineation of the responsibilities and duties of the
Directorate and of the responsibilities and duties of the
Center.
(6) A delineation and summary of the areas in which the
responsibilities and duties of the Directorate, the Center, and
other elements of the Federal Government overlap.
(7) An assessment of whether the areas of overlap, if any,
delineated under paragraph (6) represent an inefficient
utilization of resources.
(8) A description of the policies and procedures to ensure
that the Directorate and the Center comply with the Constitution
and applicable statutes, Executive orders, and regulations of
the United States.
(9) The practical impact, if any, of the operations of the
Center on individual liberties and privacy.
(10) Such information as the President considers appropriate
to explain the basis for the establishment and operation of the
Center as a ``joint venture'' of participating agencies rather
than as an element of the Directorate reporting directly to the
Secretary of Homeland Security through the Under Secretary of
Homeland Security for Information Analysis and Infrastructure
Protection.
(b) Submittal Date.--The report required by this section shall be
submitted not later than May 1, 2004.
(c) Form.--The report required by this section shall be submitted in
unclassified form, but may include a classified annex.
(d) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Select Committee on Intelligence and the Committees
on Governmental Affairs, the Judiciary, and Appropriations of
the Senate; and
(2) the Permanent Select Committee on Intelligence, the
Select Committee on Homeland Security, and the Committees on the
Judiciary and Appropriations of the House of Representatives.
SEC. 360. REPORT ON TERRORIST SCREENING CENTER.
(a) <<NOTE: Deadline. President.>> Report.--Not later than September
16, 2004, the President shall submit to Congress a report on the
establishment and operation of the Terrorist Screening Center,
established on September
[[Page 117 STAT. 2624]]
16, 2003, by Homeland Security Presidential Directive 6, including the
matters described in subsection (b).
(b) Covered Matters.--The matters referred to in subsection (a) are
the following:
(1) An analysis of the operations of the Terrorist Screening
Center to ensure that the Terrorist Screening Center does not
violate the Constitution, or any statute, Executive order, or
regulation of the United States.
(2) A description of the architecture of the database system
of the Terrorist Screening Center, including the number of
databases maintained, operated, or administered by the Terrorist
Screening Center, and the extent to which these databases have
been integrated.
(3) A determination of whether data from all watch lists
detailed in the April 2003 report of the Comptroller General of
the United States, entitled ``Information Technology: Terrorist
Watch Lists Should be Consolidated to Promote Better Integration
and Sharing'', have been incorporated into the Terrorist
Screening Center database system.
(4) A determination of whether there remain any relevant
databases that are not yet part of the Terrorist Screening
Center database system.
(5) A schedule that specifies the dates on which each
Federal watch list database identified in the report referred to
in paragraph (3), or determined under paragraph (4) to be not
yet part of the Terrorist Screening Center database system,
were, or will be, integrated into the Terrorist Screening Center
database system.
(6) A description of the protocols in effect to ensure the
protection of classified and sensitive information contained in
the Terrorist Screening Center database system.
(7) A description of--
(A) the process by which databases in the Terrorist
Screening Center database system are reviewed for
accuracy and timeliness of data and the frequency of
updates of such reviews; and
(B) the mechanism used to ensure that data within a
particular database is synchronized and replicated
throughout the database system of the Terrorist
Screening Center.
(8) A description of the extent to which the Terrorist
Screening Center makes information available to the private
sector and critical infrastructure components, and the criteria
for determining which private sector and critical infrastructure
components receive that information.
(9) The number of individuals listed in the Terrorist
Screening Center database system.
(10) The estimated operating budget of, and sources of
funding for, the Terrorist Screening Center for each of fiscal
years 2004, 2005, and 2006.
(11) An assessment of the impact of the Terrorist Screening
Center on current law enforcement systems.
(12) The practical impact, if any, of the operations of the
Terrorist Screening Center on individual liberties and privacy.
(13) Such recommendations as the President considers
appropriate for modifications of law or policy to ensure the
continuing operation of the Terrorist Screening Center.
[[Page 117 STAT. 2625]]
(c) Form of Report.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified annex.
SEC. 361. REPEAL AND MODIFICATION OF REPORT REQUIREMENTS RELATING TO
INTELLIGENCE ACTIVITIES.
(a) Annual Evaluation of Performance and Responsiveness of
Intelligence Community.--Section 105 of the National Security Act of
1947 (50 U.S.C. 403-5) is amended by striking subsection (d).
(b) Periodic Reports on Disclosure of Intelligence Information to
United Nations.--Section 112(b) of the National Security Act of 1947 (50
U.S.C. 404g(b)(1)) is amended--
(1) in the subsection caption, by striking ``Periodic'' and
inserting ``Annual'';
(2) in paragraph (1), by striking ``semiannually'' and
inserting ``annually''; and
(3) in paragraph (3), by striking ``periodic'' and inserting
``the annual''.
(c) Annual Report on Intelligence Community Cooperation With
Counterdrug Activities.--Section 114 of the National Security Act of
1947 (50 U.S.C. 404i) is amended--
(1) by striking subsection (a); and
(2) by redesignating subsections (b) through (f) as
subsections (a) through (e), respectively.
(d) Annual Report on Covert Leases.--Section 114 of the National
Security Act of 1947, as amended by this section, is further amended--
(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection (d).
(e) Annual Report on Certain Foreign Companies Involved in
Proliferation of Weapons of Mass Destruction.--Section 827 of the
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306;
116 Stat. 2430; 50 U.S.C. 404n-3) is repealed.
(f) Annual Report on Intelligence Activities of People's Republic of
China.--Section 308 of the Intelligence Authorization Act for Fiscal
Year 1998 (Public Law 105-107; 111 Stat. 2253; 50 U.S.C. 402a note) is
repealed.
(g) Annual Report on Coordination of Counterintelligence Matters
With FBI.--Section 811(c) of the Counterintelligence and Security
Enhancements Act of 1994 (title VIII of Public Law 103-359; 50 U.S.C.
402a(c)) is amended--
(1) by striking paragraph (6); and
(2) by redesignating paragraphs (7) and (8) as paragraphs
(6) and (7), respectively.
(h) Annual Report on Postemployment Assistance for Terminated
Intelligence Employees.--Section 1611 of title 10, United States Code,
is amended by striking subsection (e).
(i) Annual Report on Activities of FBI Personnel Outside the United
States.--Section 540C of title 28, United States Code, is repealed.
(j) Annual Report on Exceptions to Consumer Disclosure Requirements
for National Security Investigations.--Section 604(b)(4) of the Fair
Credit Reporting Act (15 U.S.C. 1681b(b)(4)) is amended--
(1) by striking subparagraphs (D) and (E); and
[[Page 117 STAT. 2626]]
(2) by redesignating subparagraph (F) as subparagraph (D).
(k) Reports on Acquisition of Technology Relating to Weapons of Mass
Destruction and Advanced Conventional Munitions.--Subsection (b)(1) of
section 721 of the Intelligence Authorization Act for Fiscal Year 1997
(Public Law 104-293; 50 U.S.C. 2366) is amended by striking ``a
semiannual'' and inserting ``an annual''.
(l) Conforming Amendments.--Section 507 of the National Security Act
of 1947 (50 U.S.C. 415b) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking subparagraphs (A), (C), (G),
(I), (J), and (L);
(ii) by redesignating subparagraphs (B), (D),
(E), (H), (K), (M), and (N) as subparagraphs (A),
(C), (D), (G), (H), and (I), respectively;
(iii) by inserting after subparagraph (A), as
so redesignated, the following new subparagraph
(B):
``(B) The annual report on intelligence provided to the
United Nations required by section 112(b)(1).''; and
(iv) by inserting after subparagraph (D), as
so redesignated, the following new subparagraph
(E):
``(E) The annual report on the acquisition of technology
relating to weapons of mass destruction and advanced
conventional munitions required by section 721 of the
Intelligence Authorization Act for Fiscal Year 1997 (Public Law
104-293; 50 U.S.C. 2366).''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``section
114(b)'' and inserting ``section 114(a)'';
(ii) in subparagraph (B), by striking
``section 114(d)'' and inserting ``section
114(c)'';
(iii) by striking subparagraphs (C), (E), and
(F); and
(iv) by redesignating subparagraphs (D) and
(G) as subparagraphs (C) and (D), respectively;
and
(2) in subsection (b)--
(A) by striking paragraphs (1) and (4); and
(B) by redesignating paragraphs (2), (3), (5), (6),
(7), and (8) as paragraphs (1), (2), (3), (4), (5), and
(6), respectively.
(m) Clerical Amendments.--
(1) National security act of 1947.--The table of contents
for the National Security Act of 1947 is amended by striking the
item relating to section 603.
(2) Title 28, united states code.--The table of sections at
the beginning of chapter 33 of title 28, United States Code, is
amended by striking the item relating to section 540C.
(n) <<NOTE: 10 USC 1611 note.>> Effective Date.--The amendments made
by this section shall take effect on December 31, 2003.
[[Page 117 STAT. 2627]]
Subtitle E--Other Matters
SEC. 371. EXTENSION OF SUSPENSION OF REORGANIZATION OF DIPLOMATIC
TELECOMMUNICATIONS SERVICE PROGRAM OFFICE.
Section 311 of the Intelligence Authorization Act for Fiscal Year
2002 (Public Law 107-108; 22 U.S.C. 7301 note) is amended--
(1) in the heading, by striking ``two-year'' before
``suspension of reorganization''; and
(2) in the text, by striking ``ending on October 1, 2003''
and inserting ``ending on the date that is 60 days after the
appropriate congressional committees of jurisdiction (as defined
in section 324(d) of that Act (22 U.S.C. 7304(d)) are notified
jointly by the Secretary of State (or the Secretary's designee)
and the Director of the Office of Management and Budget (or the
Director's designee) that the operational framework for the
office has been terminated''.
SEC. 372. MODIFICATIONS OF AUTHORITIES ON EXPLOSIVE MATERIALS.
(a) Clarification of Aliens Authorized To Distribute Explosive
Materials.--Section 842(d)(7) of title 18, United States Code, is
amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B)--
(A) by inserting ``or'' at the end of clause (i);
and
(B) by striking clauses (iii) and (iv); and
(3) by adding the following new subparagraphs:
``(C) is a member of a North Atlantic Treaty
Organization (NATO) or other friendly foreign military
force, as determined by the Attorney General in
consultation with the Secretary of Defense, who is
present in the United States under military orders for
training or other military purpose authorized by the
United States and the shipping, transporting,
possession, or receipt of explosive materials is in
furtherance of the authorized military purpose; or
``(D) is lawfully present in the United States in
cooperation with the Director of Central Intelligence,
and the shipment, transportation, receipt, or possession
of the explosive materials is in furtherance of such
cooperation;''.
(b) Clarification of Aliens Authorized To Possess or Receive
Explosive Materials.--Section 842(i)(5) of title 18, United States Code,
is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B)--
(A) by inserting ``or'' at the end of clause (i);
and
(B) by striking clauses (iii) and (iv); and
(3) by adding the following new subparagraphs:
``(C) is a member of a North Atlantic Treaty
Organization (NATO) or other friendly foreign military
force, as determined by the Attorney General in
consultation with the Secretary of Defense, who is
present in the United States under military orders for
training or other military purpose authorized by the
United States and the shipping, transporting,
possession, or receipt of explosive materials is in
furtherance of the authorized military purpose; or
[[Page 117 STAT. 2628]]
``(D) is lawfully present in the United States in
cooperation with the Director of Central Intelligence,
and the shipment, transportation, receipt, or possession
of the explosive materials is in furtherance of such
cooperation;''.
SEC. 373. MODIFICATION OF PROHIBITION ON THE NATURALIZATION OF CERTAIN
PERSONS.
Section 313(e)(4) of the Immigration and Nationality Act (8 U.S.C.
1424(e)(4)) is amended--
(1) by inserting ``when Department of Defense activities are
relevant to the determination'' after ``Secretary of Defense'';
and
(2) by inserting ``and the Secretary of Homeland Security''
after ``Attorney General''.
SEC. 374. MODIFICATION TO DEFINITION OF FINANCIAL INSTITUTION IN RIGHT
TO FINANCIAL PRIVACY ACT.
(a) Modification of Definition.--Section 1114 of the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3414) is amended by adding at
the end the following:
``(d) For purposes of this section, and sections 1115 and 1117
insofar as they relate to the operation of this section, the term
`financial institution' has the same meaning as in subsections (a)(2)
and (c)(1) of section 5312 of title 31, United States Code, except that,
for purposes of this section, such term shall include only such a
financial institution any part of which is located inside any State or
territory of the United States, the District of Columbia, Puerto Rico,
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands,
or the United States Virgin Islands.''.
(b) Cross Reference Modification.--Section 1101(1) of such Act (12
U.S.C. 3401(1)) is amended by inserting ``, except as provided in
section 1114,'' before ``means any office''.
SEC. 375. COORDINATION OF FEDERAL GOVERNMENT RESEARCH ON SECURITY
EVALUATIONS.
(a) Workshops for Coordination of Research.--The National Science
Foundation and the Office of Science and Technology Policy shall jointly
sponsor not less than two workshops on the coordination of Federal
Government research on the use of behavioral, psychological, and
physiological assessments of individuals in the conduct of security
evaluations.
(b) Deadline for Completion of Activities.--The activities of the
workshops sponsored under subsection (a) shall be completed not later
than March 1, 2004.
(c) Purposes.--The purposes of the workshops sponsored under
subsection (a) are as follows:
(1) To provide a forum for cataloging and coordinating
federally funded research activities relating to the development
of new techniques in the behavioral, psychological, or
physiological assessment of individuals to be used in security
evaluations.
(2) To develop a research agenda for the Federal Government
on behavioral, psychological, and physiological assessments of
individuals, including an identification of the research most
likely to advance the understanding of the use of such
assessments of individuals in security evaluations.
(3) To distinguish between short-term and long-term areas of
research on behavioral, psychological, and physiological
[[Page 117 STAT. 2629]]
assessments of individuals in order to maximize the utility of
short-term and long-term research on such assessments.
(4) To identify the Federal agencies best suited to support
research on behavioral, psychological, and physiological
assessments of individuals.
(5) To develop recommendations for coordinating future
federally funded research for the development, improvement, or
enhancement of security evaluations.
(d) <<NOTE: Establishment.>> Advisory Group.--(1) In order to assist
the National Science Foundation and the Office of Science and Technology
Policy in carrying out the activities of the workshops sponsored under
subsection (a), there is hereby established an interagency advisory
group with respect to such workshops.
(2) The advisory group shall be composed of the following:
(A) A representative of the Social, Behavioral, and Economic
Directorate of the National Science Foundation.
(B) A representative of the Office of Science and Technology
Policy.
(C) The Secretary of Defense, or a designee of the
Secretary.
(D) The Secretary of State, or a designee of the Secretary.
(E) The Attorney General, or a designee of the Attorney
General.
(F) The Secretary of Energy, or a designee of the Secretary.
(G) The Secretary of Homeland Security, or a designee of the
Secretary.
(H) The Director of Central Intelligence, or a designee of
the Director.
(I) The Director of the Federal Bureau of Investigation, or
a designee of the Director.
(J) The National Counterintelligence Executive, or a
designee of the National Counterintelligence Executive.
(K) Any other official assigned to the advisory group by the
President for purposes of this section.
(3) The members of the advisory group under subparagraphs (A) and
(B) of paragraph (2) shall jointly head the advisory group.
(4) The advisory group shall provide the Foundation and the Office
such information, advice, and assistance with respect to the workshops
sponsored under subsection (a) as the advisory group considers
appropriate.
(5) The advisory group shall not be treated as an advisory committee
for purposes of the Federal Advisory Committee Act (5 U.S.C. App.).
(e) FOIA Exemption.--All files of the National Science Foundation
and the Office of Science and Technology Policy for purposes of
administering this section, including any files of a Federal, State, or
local department or agency or of a private sector entity provided to or
utilized by a workshop or advisory group under this section, shall be
exempt from the provisions of section 552 of title 5, United States
Code, that require publication, disclosure, search, or review in
connection therewith.
(f) <<NOTE: Deadline.>> Report.--Not later than March 1, 2004, the
National Science Foundation and the Office of Science and Technology
Policy shall jointly submit to Congress a report on the results of
activities of the workshops sponsored under subsection (a), including
the findings and recommendations of the Foundation and the Office as a
result of such activities.
[[Page 117 STAT. 2630]]
(g) Funding.--(1) Of the amount authorized to be appropriated for
the Intelligence Community Management Account by section 104(a),
$500,000 shall be available to the National Science Foundation and the
Office of Science and Technology Policy to carry out this section.
(2) The amount authorized to be appropriated by paragraph (1) shall
remain available until expended.
SEC. 376. TREATMENT OF CLASSIFIED INFORMATION IN MONEY LAUNDERING CASES.
Section 5318A of title 31, United States Code, is amended by adding
at the end the following:
``(f) Classified Information.--In any judicial review of a finding
of the existence of a primary money laundering concern, or of the
requirement for 1 or more special measures with respect to a primary
money laundering concern, made under this section, if the designation or
imposition, or both, were based on classified information (as defined in
section 1(a) of the Classified Information Procedures Act (18 U.S.C.
App.), such information may be submitted by the Secretary to the
reviewing court ex parte and in camera. This subsection does not confer
or imply any right to judicial review of any finding made or any
requirement imposed under this section.''.
SEC. 377. TECHNICAL AMENDMENTS.
(a) National Security Act of 1947.--Section 112(d)(1) of the
National Security Act of 1947 (50 U.S.C. 404g(d)(1)) is amended by
striking ``section 103(c)(6)'' and inserting ``section 103(c)(7)''.
(b) Central Intelligence Agency Act of 1949.--(1) Section 5(a)(1)
of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403f(a)(1)) is
amended by striking ``(c)(6)'' each place it appears and inserting
``(c)(7)''.
(2) Section 6 of that Act (50 U.S.C. 403g) is amended by striking
``section 103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-
3(c)(6))'' and inserting ``section 103(c)(7) of the National Security
Act of 1947 (50 U.S.C. 403-3(c)(7))''.
(3) Section 15 of that Act (50 U.S.C. 403o) is amended--
(A) in subsection (a)(1), by striking ``special policemen of
the General Services Administration perform under the first
section of the Act entitled `An Act to authorize the Federal
Works Administrator or officials of the Federal Works Agency
duly authorized by him to appoint special policeman for duty
upon Federal property under the jurisdiction of the Federal
Works Agency, and for other purposes' (40 U.S.C. 318),'' and
inserting ``officers and agents of the Department of Homeland
Security, as provided in section 1315(b)(2) of title 40, United
States Code,''; and
(B) in subsection (b), by striking ``the fourth section of
the Act referred to in subsection (a) of this section (40 U.S.C.
318c)'' and inserting ``section 1315(c)(2) of title 40, United
States Code''.
(c) National Security Agency Act of 1959.--Section 11 of the
National Security Agency Act of 1959 (50 U.S.C. 402 note) is amended--
(1) in subsection (a)(1), by striking ``special policemen of
the General Services Administration perform under the first
section of the Act entitled `An Act to authorize the Federal
Works Administrator or officials of the Federal Works Agency
[[Page 117 STAT. 2631]]
duly authorized by him to appoint special policeman for duty
upon Federal property under the jurisdiction of the Federal
Works Agency, and for other purposes' (40 U.S.C. 318)'' and
inserting ``officers and agents of the Department of Homeland
Security, as provided in section 1315(b)(2) of title 40, United
States Code,''; and
(2) in subsection (b), by striking ``the fourth section of
the Act referred to in subsection (a) (40 U.S.C. 318c)'' and
inserting ``section 1315(c)(2) of title 40, United States
Code''.
(d) Intelligence Authorization Act for Fiscal Year 2003.--Section
343 of the Intelligence Authorization Act for Fiscal Year 2003 (Public
Law 107-306; 116 Stat. 2399; 50 U.S.C. 404n-2) is amended--
(1) in subsection (c), by striking ``section 103(c)(6) of
the National Security Act of 1947 (50 U.S.C. 403-3(c)(6))'' and
inserting ``section 103(c)(7) of the National Security Act of
1947 (50 U.S.C. 403-3(c)(7))''; and
(2) in subsection (e)(2), by striking ``section 103(c)(6)''
and inserting ``section 103(c)(7)''.
(e) Federal Information Security Management Act of 2002.--Section
3535(b)(1) of title 44, United States Code, as added by section
1001(b)(1) of the Homeland Security Act of 2002 (Public Law 107-296),
and section 3545(b)(1) of title 44, United States Code, as added by
section 301(b)(1) of the E-Government Act of 2002 (Public Law 107-347),
are each amended by inserting ``or any other law'' after ``1978''.
(f) Public Law 107-173.--Section 201(c)(3)(F) of the Enhanced Border
Security and Visa Entry Reform Act of 2002 (Public Law 107-173; 116
Stat. 548; 8 U.S.C. 1721(c)(3)(F)) is amended by striking ``section
103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-3(c)(6))''
and inserting ``section 103(c)(7) of the National Security Act of 1947
(50 U.S.C. 403-3(c)(7))''.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
SEC. 401. AMENDMENT TO CERTAIN CENTRAL INTELLIGENCE AGENCY ACT OF 1949
NOTIFICATION REQUIREMENTS.
Section 4(b)(5) of the Central Intelligence Agency Act of 1949 (50
U.S.C. 403e(b)(5)) is amended by inserting ``, other than regulations
under paragraph (1),'' after ``Regulations''.
SEC. 402. PROTECTION OF CERTAIN CENTRAL INTELLIGENCE AGENCY PERSONNEL
FROM TORT LIABILITY.
Section 15 of the Central Intelligence Agency Act of 1949 (50 U.S.C.
403o) is amended by adding at the end the following new subsection:
``(d)(1) Notwithstanding any other provision of law, any Agency
personnel designated by the Director under subsection (a), or designated
by the Director under section 5(a)(4) to carry firearms for the
protection of current or former Agency personnel and their immediate
families, defectors and their immediate families, and other persons in
the United States under Agency auspices, shall be considered for
purposes of chapter 171 of title 28, United States Code, or any other
provision of law relating to tort liability, to be acting within the
scope of their office or employment when
[[Page 117 STAT. 2632]]
such Agency personnel take reasonable action, which may include the use
of force, to--
``(A) protect an individual in the presence of such Agency
personnel from a crime of violence;
``(B) provide immediate assistance to an individual who has
suffered or who is threatened with bodily harm; or
``(C) prevent the escape of any individual whom such Agency
personnel reasonably believe to have committed a crime of
violence in the presence of such Agency personnel.
``(2) Paragraph (1) shall not affect the authorities of the Attorney
General under section 2679 of title 28, United States Code.
``(3) In this subsection, the term `crime of violence' has the
meaning given that term in section 16 of title 18, United States
Code.''.
SEC. 403. REPEAL OF OBSOLETE LIMITATION ON USE OF FUNDS IN CENTRAL
SERVICES WORKING CAPITAL FUND.
Section 21(f)(2) of the Central Intelligence Agency Act of 1949 (50
U.S.C. 403u(f)(2)) is amended--
(1) in subparagraph (A), by striking ``(A) Subject to
subparagraph (B), the Director'' and inserting ``The Director'';
and
(2) by striking subparagraph (B).
SEC. 404. <<NOTE: 18 USC 4124 note.>> PURCHASES BY CENTRAL INTELLIGENCE
AGENCY OF PRODUCTS OF FEDERAL PRISON INDUSTRIES.
Notwithstanding section 4124 of title 18, United States Code,
purchases by the Central Intelligence Agency from Federal Prison
Industries shall be made only if the Director of Central Intelligence
determines that the product or service to be purchased from Federal
Prison Industries best meets the needs of the Agency.
SEC. 405. POSTPONEMENT OF CENTRAL INTELLIGENCE AGENCY COMPENSATION
REFORM AND OTHER MATTERS.
(a) Postponement of Compensation Reform Plan.--Section 402(a)(2) of
the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-
306; 116 Stat. 2403; 50 U.S.C. 403-4 note) is amended by striking
``February 1, 2004,'' and all that follows through the end and inserting
``the date of the enactment of the Intelligence Authorization Act for
Fiscal Year 2005.''.
(b) Contribution by CIA Employees of Certain Bonus Pay to Thrift
Savings Plan.--
(1) Civil service retirement system participants.--Section
8351(d) of title 5, United States Code, is amended--
(A) by inserting ``(1)'' after ``(d)''; and
(B) by adding at the end the following new
paragraph:
``(2)(A) Only those employees of the Central Intelligence Agency
participating in the pilot project required by section 402(b) of the
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306;
50 U.S.C. 403-4 note) and making contributions to the Thrift Savings
Fund out of basic pay may also contribute (by direct transfer to the
Fund) any part of bonus pay received by the employee as part of the
pilot project.
``(B) Contributions under this paragraph are subject to section
8432(d) of this title.''.
(2) Federal employees' retirement system participants.--
Section 8432 of title 5, United States Code, is amended by
adding at the end the following new subsection:
[[Page 117 STAT. 2633]]
``(k)(1) Only those employees of the Central Intelligence Agency
participating in the pilot project required by section 402(b) of the
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306;
50 U.S.C. 403-4 note) and making contributions to the Thrift Savings
Fund out of basic pay may also contribute (by direct transfer to the
Fund) any part of bonus pay received by the employee as part of the
pilot project.
``(2) Contributions under this subsection are subject to subsection
(d).
``(3) For purposes of subsection (c), basic pay of an employee of
the Central Intelligence Agency participating in the pilot project
referred to in paragraph (1) shall include bonus pay received by the
employee as part of the pilot project.''.
(c) <<NOTE: 50 USC 403-4 note.>> Report.--(1) The Director of
Central Intelligence shall submit to the congressional intelligence
committees a report on the amount of compensation (including basic pay,
bonuses, and employer contributions to the Thrift Savings Plan) of each
employee of the Central Intelligence Agency participating in the pilot
project required by section 402(b) of the Intelligence Authorization Act
for Fiscal Year 2003 (Public Law 107-306; 116 Stat. 2403; 50 U.S.C. 403-
4 note), and on the amount that each such employee would have received
had such employee received compensation under the existing system of
compensation used by the Agency.
(2) The report required by paragraph (1) shall be submitted together
with the report required by paragraph (3) of such section 402(b).
(3) In this subsection, the term ``congressional intelligence
committees'' has the meaning given that term in section 402(d) of the
Intelligence Authorization Act for Fiscal Year 2003.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS
SEC. 501. PROTECTION OF CERTAIN NATIONAL SECURITY AGENCY PERSONNEL FROM
TORT LIABILITY.
Section 11 of the National Security Agency Act of 1959 (50 U.S.C.
402 note) is amended by adding at the end the following new subsection:
``(d)(1) Notwithstanding any other provision of law, agency
personnel designated by the Director of the National Security Agency
under subsection (a) shall be considered for purposes of chapter 171 of
title 28, United States Code, or any other provision of law relating to
tort liability, to be acting within the scope of their office or
employment when such agency personnel take reasonable action, which may
include the use of force, to--
``(A) protect an individual in the presence of such agency
personnel from a crime of violence;
``(B) provide immediate assistance to an individual who has
suffered or who is threatened with bodily harm; or
``(C) prevent the escape of any individual whom such agency
personnel reasonably believe to have committed a crime of
violence in the presence of such agency personnel.
``(2) Paragraph (1) shall not affect the authorities of the Attorney
General under section 2679 of title 28, United States Code.
[[Page 117 STAT. 2634]]
``(3) In this subsection, the term `crime of violence' has the
meaning given that term in section 16 of title 18, United States
Code.''.
SEC. 502. USE OF FUNDS FOR COUNTERDRUG AND COUNTERTERRORISM ACTIVITIES
FOR COLOMBIA.
(a) Authority.--Funds designated for intelligence or intelligence-
related purposes for assistance to the Government of Colombia for
counterdrug activities for fiscal year 2004, and any unobligated funds
available to any element of the intelligence community for such
activities for a prior fiscal year, shall be available--
(1) to support a unified campaign by the Government of
Colombia against narcotics trafficking and against activities by
organizations designated as terrorist organizations (such as the
Revolutionary Armed Forces of Colombia (FARC), the National
Liberation Army (ELN), and the United Self-Defense Forces of
Colombia (AUC)); and
(2) to take actions to protect human health and welfare in
emergency circumstances, including undertaking rescue
operations.
(b) Applicability of Certain Laws and Limitations.--The use of funds
pursuant to the authority in subsection (a) shall be subject to the
following:
(1) Sections 556, 567, and 568 of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 2002
(Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
(2) Section 8077 of the Department of Defense Appropriations
Act, 2004 (Public Law 108-87; 117 Stat. 1090).
(3) The numerical limitations on the number of United States
military personnel and United States individual civilian
contractors in section 3204(b)(1) of the Emergency Supplemental
Act, 2000 (division B of Public Law 106-246; 114 Stat. 575), as
amended by the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 2002 (115 Stat. 2131).
(c) Limitation on Participation of United States Personnel.--No
United States Armed Forces personnel or United States civilian
contractor employed by the United States Armed Forces will participate
in any combat operation in connection with assistance made available
under this section, except for the purpose of acting in self defense or
during the course of search and rescue operations for United States
citizens.
SEC. 503. SCENE VISUALIZATION TECHNOLOGIES.
Of the amount authorized to be appropriated by this Act, $2,500,000
shall be available for the National Geospatial-Intelligence Agency (NGA)
for scene visualization technologies.
SEC. 504. MEASUREMENT AND SIGNATURES INTELLIGENCE RESEARCH PROGRAM.
(a) Research Program.--(1) The Secretary of Defense and the Director
of Central Intelligence shall jointly carry out a program to incorporate
the results of basic research on sensors into the measurement and
signatures intelligence systems of the United States, to the extent the
results of such research are applicable to such systems.
[[Page 117 STAT. 2635]]
(2) In carrying out paragraph (1), the Secretary of Defense and the
Director of Central Intelligence shall act through the Director of the
Defense Intelligence Agency's Directorate for MASINT and Technical
Collection (hereinafter in this section referred to as the
``Director'').
(b) Program Components.--The program under subsection (a) shall
review and assess basic research on sensors and technologies conducted
both by the United States Government and by non-governmental entities.
In carrying out the program, the Director shall protect intellectual
property rights, maintain organizational flexibility, and establish
research projects, funding levels, and potential benefits in an
equitable manner through the Directorate.
(c) <<NOTE: Establishment.>> Advisory Panel.--(1) The Director shall
establish an advisory panel to assist the Director in carrying out the
program under subsection (a).
(2) The advisory panel shall be headed by the Director who shall
determine the selection, review, and assessment of the research projects
under the program.
(3)(A) The Director shall appoint as members of the advisory panel
representatives of each entity of the MASINT community, and may appoint
as such members representatives of national laboratories, universities,
and private sector entities.
(B) For purposes of this subsection the term ``MASINT community''
means academic, professional, industrial, and government entities that
are committed towards the advancement of the sciences in measurement and
signatures intelligence.
(C) The term for a member of the advisory panel shall be established
by the Director, but may not exceed a period of 5 consecutive years.
(D) Members of the advisory panel may not receive additional pay,
allowances, or benefits by reason of their service on the advisory
panel, but may receive per diem in lieu of subsistence, in accordance
with applicable provisions under subchapter I of chapter 57 of title 5,
United States Code.
(4) The Director may accept contributions from non-governmental
participants on the advisory panel to defray the expenses of the
advisory panel.
(5) The Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the activities of the advisory panel established under this
subsection.
(d) FOIA Exemption.--All files in the possession of the Defense
Intelligence Agency for purposes of administering the program under this
section, including any files of a Federal, State, or local department or
agency or of a private sector entity provided to or utilized by the
program, shall be exempt from the provisions of section 552 of title 5,
United States Code, that require publication, disclosure, search, or
review in connection therewith.
SEC. 505. AVAILABILITY OF FUNDS OF NATIONAL SECURITY AGENCY FOR NATIONAL
SECURITY SCHOLARSHIPS.
(a) Availability of Funds.--Any funds authorized to be appropriated
for the National Security Agency for a fiscal year after fiscal year
2003 may be made available to the Independent College Fund of Maryland
(also known as the ``I-Fund'') for the purpose of the establishment and
provision of national security scholarships to the extent such funds are
specifically authorized for that purpose.
[[Page 117 STAT. 2636]]
(b) Mechanisms of Availability.--Funds may be made available to the
Independent College Fund of Maryland under subsection (a) by grant,
contract, cooperative agreement, or such other appropriate mechanisms as
the Director of the National Security Agency considers appropriate.
Approved December 13, 2003.
LEGISLATIVE HISTORY--H.R. 2417 (S. 1025):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 108-163 (Permanent Select Comm. on Intelligence) and
108-381 (Comm. of Conference).
SENATE REPORTS: Nos. 108-44 (Select Comm. on Intelligence) and 108-80
(Comm. on Armed Services) both accompanying S. 1025.
CONGRESSIONAL RECORD, Vol. 149 (2003):
June 25-27, considered and passed House.
July 31, considered and passed Senate, amended, in lieu of
S. 1025.
Nov. 20, House agreed to conference report.
Nov. 21, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
Dec. 13, Presidential statement.
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