IB 

Union Calendar No. 80

108TH CONGRESS 

1ST SESSION H. R. 2417

[Report No. 108–163] 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 11, 2003

Mr. GOSS introduced the following bill; which was referred to the Select 

Committee on Intelligence (Permanent Select) 

JUNE 18, 2003

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 11, 2003] 

A BILL

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.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘In5 telligence Authorization Act for Fiscal Year 2004’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 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. Intelligence elements of the Department of the Treasury. 

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. Modification of notice and wait requirements on projects to construct 

or improve intelligence community facilities. 

Subtitle C—Counterintelligence 

Sec. 321. Counterintelligence initiatives for the intelligence community. 

Subtitle D—Other Matters 

Sec. 331. Extension of suspension of reorganization of Diplomatic Telecommunications Service Program Office. 

Sec. 332. Modifications of authorities on explosive materials. 

Sec. 333. Modification of prohibition on the naturalization of certain persons. 

Sec. 334. Modification to definition of financial institution in the Right to Financial Privacy Act. 

Sec. 335. Procedural requirements for Central Intelligence Agency relating to 

products of Federal prison industries. 

Sec. 336. Improvement of information sharing among federal, State, and local 

government officials. 
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Subtitle E—Reports and Technical Amendments 

Sec. 341. 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. 342. Modification of various reports required of intelligence community elements. 

Sec. 343. Technical amendments. 

Sec. 344. Report on lessons learned from military operations in Iraq. 

TITLE IV—CENTRAL INTELLIGENCE AGENCY 

Sec. 401. Protection from tort liability for certain Central Intelligence Agency 

personnel. 

Sec. 402. Repeal of limitation on use of funds in Central Services Working Capital Fund. 

TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS 

Sec. 501. Use of funds for counterdrug and counterterrorism activities for 

Colombia. 

Sec. 502. Authority to provide living quarters for certain students in cooperative 

and summer education programs of the National Security 

Agency. 

Sec. 503. Authority for intelligence community elements of Department of Defense 

to award personal service contracts. 

Sec. 504. Protection of certain National Security Agency personnel from tort liability. 

Sec. 505. Measurement and signatures intelligence program.

1 TITLE I—INTELLIGENCE 

2 ACTIVITIES 

3 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

4 Funds are hereby authorized to be appropriated for fis5 cal year 2004 for the conduct of the intelligence and intel6 ligence-related activities of the following elements of the 

7 United States Government: 

8 (1) The Central Intelligence Agency. 

9 (2) The Department of Defense. 

10 (3) The Defense Intelligence Agency. 

11 (4) The National Security Agency. 

12 (5) The National Reconnaissance Office. 
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1 (6) The National Imagery and Mapping Agency. 

2 (7) The Department of the Army, the Depart3 ment of the Navy, and the Department of the Air 

4 Force. 

5 (8) The Department of State. 

6 (9) The Department of the Treasury. 

7 (10) The Department of Energy. 

8 (11) The Department of Justice. 

9 (12) The Federal Bureau of Investigation. 

10 (13) The Department of Homeland Security. 

11 (14) The Coast Guard. 

12 SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS. 

13 (a) SPECIFICATIONS OF AMOUNTS AND PERSONNEL

14 CEILINGS.—The amounts authorized to be appropriated 

15 under section 101, and the authorized personnel ceilings as 

16 of September 30, 2004, for the conduct of the intelligence 

17 and intelligence-related activities of the elements listed in 

18 such section, are those specified in the classified Schedule 

19 of Authorizations prepared to accompany the bill 

20 H.R. 2417 of the One Hundred Eighth Congress. 

21 (b) AVAILABILITY OF CLASSIFIED SCHEDULE OF AU22 THORIZATIONS.—The Schedule of Authorizations shall be 

23 made available to the Committees on Appropriations of the 

24 Senate and House of Representatives and to the President. 

25 The President shall provide for suitable distribution of the
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1 Schedule, or of appropriate portions of the Schedule, within 

2 the executive branch. 

3 SEC. 103. PERSONNEL CEILING ADJUSTMENTS. 

4 (a) AUTHORITY FOR ADJUSTMENTS.—With the ap5 proval of the Director of the Office of Management and 

6 Budget, the Director of Central Intelligence may authorize 

7 employment of civilian personnel in excess of the number 

8 authorized for fiscal year 2004 under section 102 when the 

9 Director of Central Intelligence determines that such action 

10 is necessary to the performance of important intelligence 

11 functions, except that the number of personnel employed in 

12 excess of the number authorized under such section may not, 

13 for any element of the intelligence community, exceed 2 per14 cent of the number of civilian personnel authorized under 

15 such section for such element. 

16 (b) NOTICE TO INTELLIGENCE COMMITTEES.—The Di17 rector of Central Intelligence shall notify promptly the Per18 manent Select Committee on Intelligence of the House of 

19 Representatives and the Select Committee on Intelligence of 

20 the Senate whenever the Director exercises the authority 

21 granted by this section. 

22 SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT AC23 COUNT. 

24 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

25 authorized to be appropriated for the Intelligence Commu-
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1 nity Management Account of the Director of Central Intel2 ligence for fiscal year 2004 the sum of $192,640,000. Within 

3 such amount, funds identified in the classified Schedule of 

4 Authorizations referred to in section 102(a) for the Ad5 vanced Research and Development Committee shall remain 

6 available until September 30, 2005. 

7 (b) AUTHORIZED PERSONNEL LEVELS.—The elements 

8 within the Intelligence Community Management Account of 

9 the Director of Central Intelligence are authorized 320 full10 time personnel as of September 30, 2004. Personnel serving 

11 in such elements may be permanent employees of the Intel12 ligence Community Management Account or personnel de13 tailed from other elements of the United States Government. 

14 (c) CLASSIFIED AUTHORIZATIONS.—

15 (1) AUTHORIZATION OF APPROPRIATIONS.—In 

16 addition to amounts authorized to be appropriated 

17 for the Intelligence Community Management Account 

18 by subsection (a), there are also authorized to be ap19 propriated for the Intelligence Community Manage20 ment Account for fiscal year 2004 such additional 

21 amounts as are specified in the classified Schedule of 

22 Authorizations referred to in section 102(a). Such ad23 ditional amounts shall remain available until Sep24 tember 30, 2004. 
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1 (2) AUTHORIZATION OF PERSONNEL.—In addi2 tion to the personnel authorized by subsection (b) for 

3 elements of the Intelligence Community Management 

4 Account as of September 30, 2004, there are hereby 

5 authorized such additional personnel for such ele6 ments as of that date as are specified in the classified 

7 Schedule of Authorizations. 

8 (d) REIMBURSEMENT.—Except as provided in section 

9 113 of the National Security Act of 1947 (50 U.S.C. 404h), 

10 during fiscal year 2004 any officer or employee of the 

11 United States or a member of the Armed Forces who is de12 tailed to the staff of the Intelligence Community Manage13 ment Account from another element of the United States 

14 Government shall be detailed on a reimbursable basis, ex15 cept that any such officer, employee, or member may be de16 tailed on a nonreimbursable basis for a period of less than 

17 one year for the performance of temporary functions as re18 quired by the Director of Central Intelligence. 

19 (e) NATIONAL DRUG INTELLIGENCE CENTER.—

20 (1) IN GENERAL.—Of the amount authorized to 

21 be appropriated in subsection (a), $34,248,000 shall 

22 be available for the National Drug Intelligence Cen23 ter. Within such amount, funds provided for research, 

24 development, testing, and evaluation purposes shall 

25 remain available until September 30, 2005, and funds 
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1 provided for procurement purposes shall remain 

2 available until September 30, 2006. 

3 (2) TRANSFER OF FUNDS.—The Director of Cen4 tral Intelligence shall transfer to the Attorney General 

5 funds available for the National Drug Intelligence 

6 Center under paragraph (1). The Attorney General 

7 shall utilize funds so transferred for the activities of 

8 the National Drug Intelligence Center. 

9 (3) LIMITATION.—Amounts available for the Na10 tional Drug Intelligence Center may not be used in 

11 contravention of the provisions of section 103(d)(1) of 

12 the National Security Act of 1947 (50 U.S.C. 403–

13 3(d)(1)). 

14 (4) AUTHORITY.—Notwithstanding any other 

15 provision of law, the Attorney General shall retain 

16 full authority over the operations of the National 

17 Drug Intelligence Center.

18 SEC. 105. INTELLIGENCE ELEMENTS OF THE DEPARTMENT 

19 OF THE TREASURY. 

20 (a) IN GENERAL.—(1) Title I of the National Security 

21 Act of 1947 (50 U.S.C. 402 et seq.) is amended by adding 

22 at the end the following new section: 

23 ‘‘BUREAU OF INTELLIGENCE AND ENFORCEMENT OF THE

24 DEPARTMENT OF THE TREASURY

25 ‘‘SEC. 119. (a) IN GENERAL.—There is within the De26 partment of the Treasury a Bureau of Intelligence and En-
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1 forcement headed by an Assistant Secretary for Intelligence 

2 and Enforcement, who shall be appointed by the President, 

3 by and with the advice and consent of the Senate. 

4 ‘‘(b) RESPONSIBILITIES.—(1) The Assistant Secretary 

5 for Intelligence and Enforcement shall oversee and coordi6 nate functions of the Bureau of Intelligence and Enforce7 ment. 

8 ‘‘(2) The Assistant Secretary shall report directly to 

9 the Secretary of the Treasury. 

10 ‘‘(c) COMPOSITION OF BUREAU.—The Bureau of Intel11 ligence and Enforcement shall consist of the following of12 fices: 

13 ‘‘(1) The Office of Intelligence Support. 

14 ‘‘(2) The Office of Foreign Assets Control. 

15 ‘‘(3) The Financial Crimes Enforcement Net16 work. 

17 ‘‘(4) Such other offices as the Assistant Secretary 

18 may establish.’’. 

19 (2) The table of contents contained in the first section 

20 of such Act is amended by inserting after the item relating 

21 to section 118 the following new item:

‘‘Sec. 119. Bureau of Intelligence and Enforcement of the Department of the 

Treasury.’’.

22 (b) CONSULTATION WITH DCI IN APPOINTMENT OF AS23 SISTANT SECRETARY FOR INTELLIGENCE AND ENFORCE24 MENT.—Section 106(b)(2) of such Act (50 U.S.C. 403–
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1 6(b)(2)) is amended by adding at the end the following new 

2 subparagraph: 

3 ‘‘(E) The Assistant Secretary for Intelligence and 

4 Enforcement.’’. 

5 (c) CONFORMING AMENDMENTS.—(1) Section 3(4) of 

6 such Act (50 U.S.C. 401a(4)) is amended—

7 (A) by striking ‘‘the Department of the Treas8 ury,’’ in subparagraph (H); 

9 (B) by striking ‘‘and’’ at the end of subpara10 graph (J); 

11 (C) by redesignating subparagraph (K) as sub12 paragraph (L); and 

13 (D) by inserting after subparagraph (J) the fol14 lowing new subparagraph: 

15 ‘‘(K) the Bureau of Intelligence and En16 forcement of the Department of the Treasury; 

17 and’’. 

18 (2) Section 5315 of title 5, United States Code, is 

19 amended in the item relating to Assistant Secretaries of the 

20 Treasury by striking ‘‘(7)’’ and inserting ‘‘(8)’’.
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1 TITLE II—CENTRAL INTEL2 LIGENCE AGENCY RETIRE3 MENT AND DISABILITY SYS4 TEM 

5 SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 

6 There is authorized to be appropriated for the Central 

7 Intelligence Agency Retirement and Disability Fund for fis8 cal year 2004 the sum of $226,400,000. 

9 TITLE III—GENERAL 

10 PROVISIONS 

11 Subtitle A—Recurring General 

12 Provisions 

13 SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND 

14 BENEFITS AUTHORIZED BY LAW. 

15 Appropriations authorized by this Act for salary, pay, 

16 retirement, and other benefits for Federal employees may 

17 be increased by such additional or supplemental amounts 

18 as may be necessary for increases in such compensation or 

19 benefits authorized by law. 

20 SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE 

21 ACTIVITIES. 

22 The authorization of appropriations by this Act shall 

23 not be deemed to constitute authority for the conduct of any 

24 intelligence activity which is not otherwise permitted under 
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1 the Constitution or authorized pursuant to the laws of the 

2 United States. 

3 Subtitle B—Intelligence 

4 SEC. 311. MODIFICATION OF NOTICE AND WAIT REQUIRE5 MENTS ON PROJECTS TO CONSTRUCT OR IM6 PROVE INTELLIGENCE COMMUNITY FACILI7 TIES. 

8 (a) INCREASE OF THRESHOLDS FOR NOTICE.—Section 

9 602(a) of the Intelligence Authorization Act for Fiscal Year 

10 1995 (Public Law 103–359; 108 Stat. 3432; 50 U.S.C. 403–

11 2b(a)) is amended—

12 (1) by striking ‘‘$750,000’’ each place it appears 

13 and inserting ‘‘$5,000,000’’; 

14 (2) by striking ‘‘$500,000’’ each place it appears 

15 and inserting ‘‘$1,000,000’’; and 

16 (3) in paragraph (2), as amended by paragraph 

17 (2) of this subsection, by inserting after ‘‘$1,000,000’’ 

18 the second place it appears, the following: ‘‘but less 

19 than $5,000,000’’. 

20 (b) NOTICE AND WAIT REQUIREMENTS FOR EMER21 GENCY PROJECTS.—Section 602(b)(2) of the Intelligence 

22 Authorization Act for Fiscal Year 1995 (Public Law 103–

23 359; 108 Stat. 3432; 50 U.S.C. 403–2b(b)(2)) is amended—

24 (1) in the third sentence, by striking ‘‘21-day’’ 

25 and inserting ‘‘7-day’’; and, 
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1 (2) by adding at the end the following new sen2 tence: ‘‘Notwithstanding the preceding provisions of 

3 this paragraph, when the Director of Central Intel4 ligence and Secretary of Defense jointly determine 

5 that an emergency relating to the national security or 

6 to the protection of health, safety, or environmental 

7 quality exists and that delay would irreparably harm 

8 any or all of those interests, the project may begin on 

9 the date the notification is received by such commit10 tees.’’. 

11 Subtitle C—Counterintelligence

12 SEC. 321. COUNTERINTELLIGENCE INITIATIVES FOR THE 

13 INTELLIGENCE COMMUNITY. 

14 (a) IN GENERAL.—(1) Title XI of the National Secu15 rity Act of 1947 (50 U.S.C. 401 et seq.) is amended by add16 ing at the end the following new section: 

17 ‘‘COUNTERINTELLIGENCE INITIATIVES

18 ‘‘SEC. 1102. (a) INSPECTION PROCESS.—(1) In order 

19 to protect intelligence sources and methods from unauthor20 ized disclosure, the Director of Central Intelligence shall es21 tablish and implement an inspection process for all agencies 

22 and departments of the United States that handle classified 

23 information relating to the national security of the United 

24 States intended to assure that those agencies and depart25 ments maintain effective operational security practices and 

26 programs directed against counterintelligence activities. 
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1 ‘‘(2) The Director shall carry out the process through 

2 the Office of the National Counterintelligence Executive. 

3 ‘‘(b) FBI COUNTERINTELLIGENCE OFFICE.—The At4 torney General, acting through the Director of the Federal 

5 Bureau of Investigation, shall establish an Office of Coun6 terintelligence within the Bureau to investigate potential es7 pionage activities within the Bureau. 

8 ‘‘(c) ANNUAL REVIEW OF DISSEMINATION LISTS.—(1) 

9 The Director of Central Intelligence shall establish and im10 plement a process for all elements of the intelligence commu11 nity (as defined in section 101(4)) to review, on an annual 

12 basis, individuals included on distribution lists for access 

13 to classified information. Such process shall ensure that 

14 only individuals who have a particularized ‘need to know’ 

15 (as determined by the Director) are continued on such dis16 tribution lists. 

17 ‘‘(2) Not later than October 15 of each year, the Direc18 tor shall certify to the congressional intelligence committees 

19 that the review required under paragraph (1) has been con20 ducted in all elements of the intelligence community during 

21 the preceding fiscal year. 

22 ‘‘(d) REQUIRED COMPLETION OF FINANCIAL DISCLO23 SURE STATEMENTS.—(1) The Director of Central Intel24 ligence shall establish and implement a process by which 

25 heads of the elements of the intelligence community (as de-
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1 fined in section 101(4)) direct that all employees, in order 

2 to be granted access to classified information, submit finan3 cial disclosure forms required under section 1.3(b) of Execu4 tive Order No. 12969 (August 2, 1995; 60 F.R. 40245; 50 

5 U.S.C. 435 note). 

6 ‘‘(2) The Director shall carry out paragraph (1) 

7 through the Office of the National Counterintelligence Exec8 utive. 

9 ‘‘(e) ARRANGEMENTS TO HANDLE SENSITIVE INFOR10 MATION.—The Director of Central Intelligence shall estab11 lish, for all elements of the intelligence community (as de12 fined in section 101(4)), programs and procedures by which 

13 sensitive classified information relating to human intel14 ligence is safeguarded against unauthorized disclosure by 

15 employees of those elements.’’. 

16 (2) The table of contents contained in the first section 

17 of such Act is amended in the items relating to title XI 

18 by adding at the end the following new item:

‘‘Sec. 1102. Counterintelligence initiatives.’’.

19 (b) INTELLIGENCE AND NATIONAL SECURITY ASPECTS

20 OF ESPIONAGE PROSECUTIONS.—The Attorney General, 

21 acting through the Office of Intelligence Policy and Review 

22 of the Department of Justice, in consultation with the Office 

23 of the National Counterintelligence Executive, shall estab24 lish policies and procedures to assist the Attorney General 

25 in the Attorney General’s consideration of intelligence and
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1 national security equities in the development of charging 

2 documents and related pleadings in espionage prosecutions. 

3 Subtitle D—Other Matters 

4 SEC. 331. EXTENSION OF SUSPENSION OF REORGANIZA5 TION OF DIPLOMATIC TELECOMMUNI6 CATIONS SERVICE PROGRAM OFFICE. 

7 Section 311 of the Intelligence Authorization Act for 

8 Fiscal Year 2002 (Public Law 107–108; 115 Stat. 1401; 

9 22 U.S.C. 7301 note), as amended by section 351 of the 

10 Intelligence Authorization Act for Fiscal Year 2003 (Public 

11 Law 107–306; 116 Stat. 2401; 22 U.S.C. 7301 note), is 

12 amended—

13 (1) in the heading, by striking ‘‘TWO-YEAR’’ be14 fore ‘‘SUSPENSION OF REORGANIZATION’’; and 

15 (2) in the text, by striking ‘‘ending on October 

16 1, 2003’’ and inserting ‘‘ending on the date that is 60 

17 days after the date on which appropriate congres18 sional committees of jurisdiction (as defined in sec19 tion 324(d) of that Act (22 U.S.C. 7304(d)) are noti20 fied jointly by the Secretary of State (or the Sec21 retary’s designee) and the Director of the Office of 

22 Management and Budget (or the Director’s designee) 

23 that the operational framework for the office has been 

24 terminated’’.
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1 SEC. 332. MODIFICATIONS OF AUTHORITIES ON EXPLOSIVE 

2 MATERIALS. 

3 (a) AUTHORITY TO DISTRIBUTE EXPLOSIVE MATE4 RIALS TO QUALIFIED ALIENS.—Notwithstanding any other 

5 provision of law, it shall be lawful for any person know6 ingly to distribute explosive materials to any qualified 

7 alien—

8 (1) if, in the case of a qualified alien described 

9 in subsection (c)(1), the distribution to, shipment to, 

10 transportation to, receipt by, or possession by the 

11 alien of the explosive materials is in furtherance of 

12 such cooperation; or 

13 (2) if, in the case of a qualified alien described 

14 in subsection (c)(2), the distribution to, shipping to, 

15 transporting to, possession by, or receipt by the alien 

16 of explosive materials is in furtherance of the author17 ized military purpose. 

18 (b) AUTHORITY FOR QUALIFIED ALIENS TO SHIP EX19 PLOSIVE MATERIALS.—Notwithstanding any other provi20 sion of law, it shall be lawful for a qualified alien to ship 

21 or transport any explosive in or affecting interstate or for22 eign commerce or to receive or possess any explosive which 

23 has been shipped or transported in or affecting interstate 

24 or foreign commerce—

25 (1) if, in the case of a qualified alien described 

26 in subsection (c)(1), the possession, shipment, or 
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1 transportation by the alien of the explosive materials 

2 is in furtherance of such cooperation; or 

3 (2) if, in the case of a qualified alien described 

4 in subsection (c)(2), the possession, shipment, or 

5 transportation by the alien of explosive materials is 

6 in furtherance of the authorized military purpose. 

7 (c) QUALIFIED ALIEN DEFINED.—In this section, the 

8 term ‘‘qualified alien’’ means an alien—

9 (1) who is lawfully present in the United States 

10 in cooperation with the Director of Central Intel11 ligence; or 

12 (2) who is a member of a North Atlantic Treaty 

13 Organization (NATO), or other friendly foreign mili14 tary force (as determined by the Attorney General 

15 with the concurrence of the Secretary of Defense) who 

16 is present in the United States under military orders 

17 for training or other military purpose authorized by 

18 the United States. 

19 SEC. 333. MODIFICATION OF PROHIBITION ON THE NATU20 RALIZATION OF CERTAIN PERSONS. 

21 Section 313(e)(4) of the Immigration and Nationality 

22 Act (8 U.S.C. 1424(e)(4)) is amended—

23 (1) by inserting ‘‘when Department of Defense 

24 activities are relevant to the determination’’ after 

25 ‘‘Secretary of Defense’’; and 
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1 (2) by inserting ‘‘and the Secretary of Homeland 

2 Security’’ after ‘‘Attorney General’’.

3 SEC. 334. MODIFICATION TO DEFINITION OF FINANCIAL IN4 STITUTION IN THE RIGHT TO FINANCIAL PRI5 VACY ACT. 

6 (a) IN GENERAL.—Section 1101(1) of the Right to Fi7 nancial Privacy Act of 1978 (12 U.S.C. 3401(1)) is amend8 ed by inserting ‘‘, except as provided in section 1114,’’ be9 fore ‘‘means any office’’. 

10 (b) DEFINITION.—Section 1114 of such Act (12 U.S.C. 

11 3414) is amended by adding at the end the following: 

12 ‘‘(c) For purposes of this section, the term ‘financial 

13 institution’ has the same meaning as in section 5312(a)(2) 

14 of title 31, United States Code, except that, for purposes 

15 of this section, such term shall include only such a financial 

16 institution any part of which is located inside any State 

17 or territory of the United States, the District of Columbia, 

18 Puerto Rico, Guam, American Samoa, or the United States 

19 Virgin Islands.’’.

20 SEC. 335. PROCEDURAL REQUIREMENTS FOR CENTRAL IN21 TELLIGENCE AGENCY RELATING TO PROD22 UCTS OF FEDERAL PRISON INDUSTRIES. 

23 The Central Intelligence Agency Act of 1949 (50 U.S.C. 

24 403a et seq.) is amended by adding at the end the following 

25 new section:
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1 ‘‘PROCEDURAL REQUIREMENTS FOR CENTRAL INTEL2 LIGENCE AGENCY RELATING TO PRODUCTS OF FED3 ERAL PRISON INDUSTRIES

4 ‘‘SEC. 23. (a) MARKET RESEARCH.—Before pur5 chasing a product listed in the latest edition of the Federal 

6 Prison Industries catalog under section 4124(d) of title 18, 

7 United States Code, the Director shall conduct market re8 search to determine whether the Federal Prison Industries 

9 product is comparable to products available from the pri10 vate sector that best meet the Agency’s needs in terms of 

11 price, quality, and time of delivery. 

12 ‘‘(b) COMPETITION REQUIREMENT.—If the Director 

13 determines that a Federal Prison Industries product is not 

14 comparable in price, quality, or time of delivery to products 

15 available from the private sector that best meet the Agency’s 

16 needs in terms of price, quality, and time of delivery, the 

17 Director shall use competitive procedures for the procure18 ment of the product or shall make an individual purchase 

19 under a multiple award contract. In conducting such a 

20 competition or making such a purchase, the Director shall 

21 consider a timely offer from Federal Prison Industries. 

22 ‘‘(c) IMPLEMENTATION BY DIRECTOR.—The Director 

23 shall ensure that—

24 ‘‘(1) the Agency does not purchase a Federal 

25 Prison Industries product or service unless a con-
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1 tracting officer of the Agency determines that the 

2 product or service is comparable to products or serv3 ices available from the private sector that best meet 

4 the Agency’s needs in terms of price, quality, and 

5 time of delivery; and 

6 ‘‘(2) Federal Prison Industries performs its con7 tractual obligations to the same extent as any other 

8 contractor for the Agency. 

9 ‘‘(d) MARKET RESEARCH DETERMINATION NOT SUB10 JECT TO REVIEW.—A determination by a contracting offi11 cer regarding whether a product or service offered by Fed12 eral Prison Industries is comparable to products or services 

13 available from the private sector that best meet the Agency’s 

14 needs in terms of price, quality, and time of delivery shall 

15 not be subject to review pursuant to section 4124(b) of title 

16 18. 

17 ‘‘(e) PERFORMANCE AS A SUBCONTRACTOR.—(1) A 

18 contractor or potential contractor of the Agency may not 

19 be required to use Federal Prison Industries as a subcon20 tractor or supplier of products or provider of services for 

21 the performance of a contract of the Agency by any means, 

22 including means such as—

23 ‘‘(A) a contract solicitation provision requiring 

24 a contractor to offer to make use of products or serv-
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1 ices of Federal Prison Industries in the performance 

2 of the contract; 

3 ‘‘(B) a contract specification requiring the con4 tractor to use specific products or services (or classes 

5 of products or services) offered by Federal Prison In6 dustries in the performance of the contract; or 

7 ‘‘(C) any contract modification directing the use 

8 of products or services of Federal Prison Industries in 

9 the performance of the contract. 

10 ‘‘(2) In this subsection, the term ‘contractor’, with re11 spect to a contract, includes a subcontractor at any tier 

12 under the contract. 

13 ‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE IN14 FORMATION.—The Director may not enter into any contract 

15 with Federal Prison Industries under which an inmate 

16 worker would have access to—

17 ‘‘(1) any data that is classified; 

18 ‘‘(2) any geographic data regarding the location 

19 of—

20 ‘‘(A) surface and subsurface infrastructure 

21 providing communications or water or electrical 

22 power distribution; 

23 ‘‘(B) pipelines for the distribution of nat24 ural gas, bulk petroleum products, or other com25 modities; or 
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1 ‘‘(C) other utilities; or 

2 ‘‘(3) any personal or financial information 

3 about any individual private citizen, including infor4 mation relating to such person’s real property how5 ever described, without the prior consent of the indi6 vidual. 

7 ‘‘(g) APPLICATION OF PROVISION.—This section is sub8 ject to the preceding provisions of this Act, and shall not 

9 be construed as affecting any right or duty of the Director 

10 under those provisions. 

11 ‘‘(h) DEFINITIONS.—In this section: 

12 ‘‘(1) The terms ‘competitive procedures’ and 

13 ‘procurement’ have the meanings given such terms in 

14 section 4 of the Office of Federal Procurement Policy 

15 Act (41 U.S.C. 403). 

16 ‘‘(2) The term ‘market research’ means obtaining 

17 specific information about the price, quality, and 

18 time of delivery of products available in the private 

19 sector through a variety of means, which may in20 clude—

21 ‘‘(A) contacting knowledgeable individuals 

22 in government and industry; 

23 ‘‘(B) interactive communication among in24 dustry, acquisition personnel, and customers; 

25 and 
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1 ‘‘(C) interchange meetings or pre-solicita2 tion conferences with potential offerors.’’. 

3 SEC. 336. IMPROVEMENT OF INFORMATION SHARING 

4 AMONG FEDERAL, STATE, AND LOCAL GOV5 ERNMENT OFFICIALS. 

6 (a) PILOT PROJECT TO ENCOURAGE STATE AND

7 LOCAL OFFICIALS, AS WELL AS REPRESENTATIVES OF

8 CRITICAL INFRASTRUCTURE, TO COLLECT AND SHARE

9 RELEVANT INFORMATION.—Section 892(c) of the Homeland 

10 Security Act of 2002 (Public Law 107–296; 6 U.S.C. 482) 

11 is amended by adding at the end the following new para12 graph: 

13 ‘‘(3)(A) The Under Secretary for Information 

14 Analysis and Infrastructure Protection of the Depart15 ment of Homeland Security, in consultation with the 

16 Director of Central Intelligence, may conduct projects 

17 in several cities to encourage officials of State and 

18 local government, as well as representatives of indus19 tries that comprise the critical infrastructure in those 

20 cities to lawfully collect and to pass on to the appro21 priate Federal officials information vital for the pre22 vention of terrorist attacks against the United States. 

23 ‘‘(B) The Director of Central Intelligence shall 

24 carry out any duty under this paragraph through the 

25 Director of the Terrorist Threat Integration Center.
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1 ‘‘(C) Under the projects, training shall be pro2 vided to such officials and representatives to—

3 ‘‘(i) identify sources of potential threats 

4 through such methods as the Secretary deter5 mines appropriate; 

6 ‘‘(ii) report information relating to such po7 tential threats to the appropriate Federal agen8 cies in the appropriate form and manner; and 

9 ‘‘(iii) assure that all reported information 

10 is systematically submitted to and passed on by 

11 the Department for use by appropriate Federal 

12 agencies. 

13 ‘‘(D) The Under Secretary shall carry out the 

14 pilot project under this paragraph for a period of 3 

15 years. 

16 ‘‘(E) Not later than 1 year after the implementa17 tion of the pilot project, and annually thereafter, the 

18 Under Secretary shall submit to Congress a report on 

19 the pilot project conducted under this paragraph. 

20 Each such report shall include—

21 ‘‘(i) an assessment of the effectiveness of the 

22 project; and 

23 ‘‘(ii) recommendations on the continuation 

24 of the project as well as any recommendations to 

25 improve the effectiveness of information collec-
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1 tion and sharing by such officials and represent2 atives and the Federal government.’’. 

3 (b) PILOT PROJECT TO TEST USE OF TEAR-LINE IN4 TELLIGENCE REPORTS.—(1) Subtitle C of title II of the 

5 Homeland Security Act of 2002 (Public Law 107–296) is 

6 amended by adding at the end the following new section: 

7 ‘‘SEC. 226. PILOT PROJECT TO TEST USE OF TEAR-LINE IN8 TELLIGENCE REPORTS. 

9 ‘‘(a) AUTHORITY.—The Under Secretary for Informa10 tion Analysis and Infrastructure Protection of the Depart11 ment of Homeland Security, in consultation with the Direc12 tor of Central Intelligence, may carry out a pilot program 

13 under which the Under Secretary may make intelligence in14 formation in the possession of the Department available to 

15 officials of State and local governments through the use of 

16 tear-line intelligence reports. 

17 ‘‘(b) TEAR-LINE INTELLIGENCE REPORTS DE18 SCRIBED.—For purpose of this section, a tear-line report 

19 is a report containing intelligence gathered by an agency 

20 or department of the United States that is in the possession 

21 of the Department that is prepared in a manner such that 

22 information relating to intelligence sources and methods is 

23 easily severable from the report to protect such sources and 

24 methods from disclosure. Such a report may be in a paper 

25 or an electronic format. 
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1 ‘‘(c) DURATION OF PROJECT.—The Under Secretary 

2 shall carry out the pilot project under this section for a 

3 period of 3 years. 

4 ‘‘(d) REPORTS TO CONGRESS.—Not later than 1 year 

5 after the implementation of the pilot project, and annually 

6 thereafter, the Under Secretary shall submit to Congress a 

7 report on the pilot project conducted under this section, and 

8 shall include in the report an assessment of—

9 ‘‘(1) the effectiveness of the use of the tear-line re10 ports in providing intelligence information on a time11 ly basis to State and local authorities; and 

12 ‘‘(2) if the use of such tear-line reports were to 

13 be made permanent, whether additional safeguards 

14 are needed with respect to the use of such reports. 

15 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are 

16 authorized to be appropriated to the Under Secretary such 

17 sums as may be necessary to carry out this section.’’. 

18 (2) The table of contents in section 1(b) of such Act 

19 is amended in subtitle C of title II by adding at the end 

20 the following new item.

‘‘Sec. 226. Pilot project to test use of tear-line intelligence reports.’’.

21 (c) HOMELAND DEFENDER INTELLIGENCE TRAINING

22 PROGRAM. 

23 (1) ESTABLISHMENT OF PROGRAM.—The Direc24 tor of Central Intelligence may establish a comprehen25 sive program of orientation and training to qualified 
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1 State and local officials in accessing and using avail2 able resources of the intelligence community (as de3 fined in section 3(4) of the National Security Act of 

4 1947 (50 U.S.C. 401(4))). 

5 (2) CONSULTATION.—Insofar as the Director es6 tablishes the intelligence training program under 

7 paragraph (1), the Director shall consult and coordi8 nate with the director of the Federal Bureau of Inves9 tigation and the Secretary of Homeland Security on 

10 the development and administration of the program. 

11 (3) PROGRAM GOALS.—Any intelligence training 

12 program established under paragraph (1) shall pro13 vide qualified State and local officials instruction on 

14 the mission and roles of the intelligence community to 

15 promote more effective information sharing among 

16 Federal, State, and local officials to prevent terrorist 

17 attacks against the United States. 

18 (4) CURRICULUM.—Insofar as the Director estab19 lishes the intelligence training program under para20 graph (1), the Director shall develop a curriculum for 

21 the program after consultation with qualified State 

22 and local officials. The curriculum shall include class23 room instruction with respect to and orientation to 

24 the various elements of the intelligence community. 
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1 (5) REPORTS TO CONGRESS.—Not later than 1 

2 year after the initial implementation of the intel3 ligence training program under paragraph (1), and 

4 annually thereafter, the Director shall submit to Con5 gress a report on the program. Each such report shall 

6 include—

7 (A) an assessment of the effectiveness of the 

8 project; and 

9 (B) recommendations on the continuation of 

10 the project as well as any recommendations to 

11 improve the effectiveness of information collec12 tion and sharing by qualified officials and rep13 resentatives and the Federal government. 

14 (6) QUALIFIED STATE AND LOCAL OFFICIALS DE15 FINED.—For purposes of this subsection, the term 

16 ‘‘qualified State and local officials’’ means officials of 

17 State and local government agencies that Director of 

18 Central Intelligence determines—

19 (A) have received appropriate security 

20 clearances from the Director of the Federal Bu21 reau of Investigation for access to classified in22 formation; and 

23 (B) oversee or manage first responders or 

24 counterterrorism activities.
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1 (7) AUTHORIZATION OF APPROPRIATIONS.—

2 There is authorized to be appropriated to the Director 

3 such sums as are necessary to carry out the intel4 ligence training program under this subsection. 

5 (d) ADVISORY COUNCILS.—(1) The Director of the Ter6 rorist Threat Integration Center shall establish two advi7 sory councils (described in paragraph (2)) to provide the 

8 Director such advice and recommendations as the Director 

9 may require to effectively carry out the functions of the Cen10 ter. 

11 (2)(A) One advisory council shall have as its focus pri12 vacy and civil liberties issues. 

13 (B) The other advisory council shall have as its focus 

14 State and local government information needs. 

15 Subtitle E—Reports and Technical 

16 Amendments 

17 SEC. 341. EXTENSION OF DEADLINE FOR FINAL REPORT OF 

18 THE NATIONAL COMMISSION FOR THE RE19 VIEW OF THE RESEARCH AND DEVELOPMENT 

20 PROGRAMS OF THE UNITED STATES INTEL21 LIGENCE COMMUNITY. 

22 (a) IN GENERAL.—Subsection (a) of section 1007 of 

23 the Intelligence Authorization Act for Fiscal Year 2003 

24 (Public Law 107–306; 50 U.S.C. 401 note; 116 Stat. 2442) 
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1 is amended by striking ‘‘September 1, 2003’’ and inserting 

2 ‘‘September 1, 2004’’. 

3 (b) EFFECTIVE DATE.—The amendment made by sub4 section (a) shall take effect as if included in the enactment 

5 of section 1007 of the Intelligence Authorization Act for Fis6 cal Year 2003. 

7 SEC. 342. MODIFICATION OF VARIOUS REPORTS REQUIRED 

8 OF INTELLIGENCE COMMUNITY ELEMENTS. 

9 (a) REPORTS ON ACQUISITION OF TECHNOLOGY RE10 LATING TO WEAPONS OF MASS DESTRUCTION AND AD11 VANCED CONVENTIONAL MUNITIONS.—Subsection (b)(1) of 

12 section 721 of the Intelligence Authorization Act for Fiscal 

13 Year 1997 (Public Law 104–293; 110 Stat. 3474; 50 U.S.C. 

14 2366), as amended by section 811(b)(5)(C) of the Intel15 ligence Authorization Act for Fiscal Year 2003 (Public Law 

16 107–306; 116 Stat. 2424; 50 U.S.C. 2366), is amended by 

17 striking ‘‘a semiannual’’ and inserting ‘‘an annual’’. 

18 (b) PERIODIC AND SPECIAL REPORTS ON DISCLOSURE

19 OF INTELLIGENCE INFORMATION TO UNITED NATIONS.—

20 Section 112(b)(1) of the National Security Act of 1947 (50 

21 U.S.C. 404g(b)(1)) is amended by striking ‘‘semiannually’’ 

22 and inserting ‘‘annually’’. 

23 SEC. 343. TECHNICAL AMENDMENTS. 

24 (a) NATIONAL SECURITY ACT OF 1947.—Section 

25 112(d)(1) of the National Security Act of 1947 (50 U.S.C. 
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1 404g(d)(1)) is amended by striking ‘‘section 103(c)(6)’’ and 

2 inserting ‘‘section 103(c)(7)’’. 

3 (b) CENTRAL INTELLIGENCE AGENCY ACT OF 1949.—

4 (1) Section 6 of the Central Intelligence Agency Act of 1949 

5 (50 U.S.C. 403g) is amended by striking ‘‘section 

6 103(c)(6)’’ and inserting ‘‘section 103(c)(7)’’. 

7 (2) Section 15 of such Act (50 U.S.C. 403o) is amend8 ed—

9 (A) in subsection (a)(1), by striking ‘‘special po10 licemen of the General Services Administration per11 form under the first section of the Act entitled ‘An Act 

12 to authorize the Federal Works Administrator or offi13 cials of the Federal Works Agency duly authorized by 

14 him to appoint special policeman for duty upon Fed15 eral property under the jurisdiction of the Federal 

16 Works Agency, and for other purposes’ (40 U.S.C. 

17 318),’’ and inserting ‘‘officers and agents of the De18 partment of Homeland Security, as provided in sec19 tion 1315(b)(2) of title 40, United States Code,’’; and 

20 (B) in subsection (b), by striking ‘‘the fourth sec21 tion of the Act referred to in subsection (a) of this sec22 tion (40 U.S.C. 318c)’’ and inserting ‘‘section 

23 1315(c)(2) of title 40, United States Code’’. 
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1 (c) NATIONAL SECURITY AGENCY ACT OF 1959.—Sec2 tion 11 of the National Security Agency Act of 1959 (50 

3 U.S.C. 402 note) is amended—

4 (1) in subsection (a)(1), by striking ‘‘special po5 licemen of the General Services Administration per6 form under the first section of the Act entitled ‘An Act 

7 to authorize the Federal Works Administrator or offi8 cials of the Federal Works Agency duly authorized by 

9 him to appoint special policeman for duty upon Fed10 eral property under the jurisdiction of the Federal 

11 Works Agency, and for other purposes’ (40 U.S.C. 

12 318)’’ and inserting ‘‘officers and agents of the De13 partment of Homeland Security, as provided in sec14 tion 1315(b)(2) of title 40, United States Code,’’; and 

15 (2) in subsection (b), by striking ‘‘the fourth sec16 tion of the Act referred to in subsection (a) (40 U.S.C. 

17 318c)’’ and inserting ‘‘section 1315(c)(2) of title 40, 

18 United States Code’’. 

19 (d) INTELLIGENCE AUTHORIZATION ACT FOR FISCAL

20 YEAR 2003.—Section 343 of the Intelligence Authorization 

21 Act for Fiscal Year 2003 (Public Law 107–306; 116 Stat. 

22 2399; 50 U.S.C. 404n–2) is amended—

23 (1) in subsection (c), by striking ‘‘section 

24 103(c)(6) of the National Security Act of 1947 (50 

25 U.S.C. 403–3(c)(6))’’ and inserting ‘‘section 103(c)(7) 
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1 of the National Security Act of 1947 (50 U.S.C. 403–

2 3(c)(7))’’; and 

3 (2) in subsection (e)(2), by striking ‘‘section 

4 103(c)(6)’’ and inserting ‘‘section 103(c)(7)’’. 

5 (e) PUBLIC LAW 107–173.—Section 201(c)(3)(F) of the 

6 Enhanced Border Security and Visa Entry Reform Act of 

7 2002 (Public Law 107–173; 116 Stat. 548; 8 U.S.C. 

8 1721(c)(3)(F)) is amended by striking ‘‘section 103(c)(6) of 

9 the National Security Act of 1947 (50 U.S.C. 403–3(c)(6))’’ 

10 and inserting ‘‘section 103(c)(7) of the National Security 

11 Act of 1947 (50 U.S.C. 403–3(c)(7))’’. 

12 (f) FEDERAL INFORMATION SECURITY MANAGEMENT

13 ACT OF 2002.—Section 3535(b)(1) of title 44, United States 

14 Code, as added by section 1001(b)(1) of the Homeland Secu15 rity Act of 2002 (Public Law 107–296), and section 

16 3545(b)(1) of title 44, United States Code, as added by sec17 tion 301(b)(1) of the E–Government Act of 2002 (Public 

18 Law 107–347), are each amended by inserting ‘‘or any 

19 other law’’ after ‘‘1978’’.

20 SEC. 344. REPORT ON LESSONS LEARNED FROM MILITARY 

21 OPERATIONS IN IRAQ. 

22 (a) REPORT.—Not later than one year after the date 

23 of the enactment of this Act, the Director of Central Intel24 ligence shall submit to the appropriate committees of Con25 gress a report on the intelligence lessons learned as a result
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1 of Operation Iraqi Freedom, including lessons relating to 

2 the following: 

3 (1) The tasking, collection, processing, exploi4 tation, analysis, and dissemination of intelligence. 

5 (2) Accuracy, timeliness, and objectivity of intel6 ligence analysis. 

7 (3) Intelligence support to policymakers and 

8 members of the Armed Forces in combat. 

9 (4) Coordination of intelligence activities and 

10 operations with military operations. 

11 (5) Strengths and limitations of intelligence sys12 tems and equipment. 

13 (6) Such other matters as the Director considers 

14 appropriate. 

15 (b) RECOMMENDATIONS.—The report under subsection 

16 (a) shall include such recommendations on improvement in 

17 the matters described in subsection (a) as the Director con18 siders appropriate. 

19 (c) APPROPRIATE COMMITTEES OF CONGRESS DE20 FINED.—In this section, the term ‘‘appropriate committees 

21 of Congress’’ means—

22 (1) the Permanent Select Committee on Intel23 ligence and the Committee on Armed Services of the 

24 House of Representatives; and 
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1 (2) the Select Committee on Intelligence and the 

2 Committee on Armed Services of the Senate. 

3 TITLE IV—CENTRAL 

4 INTELLIGENCE AGENCY 

5 SEC. 401. PROTECTION FROM TORT LIABILITY FOR CER6 TAIN CENTRAL INTELLIGENCE AGENCY PER7 SONNEL. 

8 (a) IN GENERAL.—Section 15 of the Central Intel9 ligence Agency Act of 1949 (50 U.S.C. 403o) is amended 

10 by adding at the end the following new subsection: 

11 ‘‘(d)(1) Notwithstanding any other provision of law, 

12 any Agency personnel designated by the Director under sub13 section (a) shall be deemed for purposes of chapter 171 of 

14 title 28, United States Code, or any other provision of law 

15 relating to tort liability, to be acting within the scope of 

16 their office or employment if the Agency personnel take rea17 sonable action, which may include the use of force, to—

18 ‘‘(A) protect an individual in the presence of the 

19 Agency personnel from a crime of violence; 

20 ‘‘(B) provide immediate assistance to an indi21 vidual who has suffered or who is threatened with 

22 bodily harm; or 

23 ‘‘(C) prevent the escape of any individual whom 

24 the Agency personnel reasonably believe to have com-
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1 mitted a crime of violence in the presence of such per2 sonnel. 

3 ‘‘(2) In this subsection, the term ‘crime of violence’ has 

4 the meaning given that term in section 16 of title 18, 

5 United States Code.’’. 

6 (b) CONSTRUCTION.—Subsection (d) of section 15, as 

7 added by subsection (a), shall not be construed as affecting 

8 the authorities of the Attorney General under the Federal 

9 Employees Liability Reform and Tort Compensation Act 

10 of 1988 (Public Law 100–694; 28 U.S.C. 2671, 2674, 

11 2679(b), 2679(d)). 

12 SEC. 402. REPEAL OF LIMITATION ON USE OF FUNDS IN 

13 CENTRAL SERVICES WORKING CAPITAL 

14 FUND. 

15 Section 21(f)(2) of the Central Intelligence Agency Act 

16 of 1949 (50 U.S.C. 403u(f)(2)) is amended—

17 (1) in subparagraph (A), by striking ‘‘(A) Sub18 ject to subparagraph (B), the Director’’ and inserting 

19 ‘‘The Director’’; and 

20 (2) by striking subparagraph (B).
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1 TITLE V—DEPARTMENT OF DE2 FENSE INTELLIGENCE MAT3 TERS 

4 SEC. 501. USE OF FUNDS FOR COUNTERDRUG AND 

5 COUNTERTERRORISM ACTIVITIES FOR CO6 LOMBIA. 

7 (a) EXTENSION OF AUTHORITY.—Subsection (a) of sec8 tion 501 of the Intelligence Authorization Act for Fiscal 

9 Year 2003 (Public Law 107–306; 116 Stat. 2404) is amend10 ed by striking ‘‘for fiscal years 2002 and 2003’’ and insert11 ing ‘‘for each of fiscal years 2002 through 2005’’. 

12 (b) MODIFICATION.—(1) Subsection (e) of such section 

13 is amended to read as follows: 

14 ‘‘(e) PROHIBITION.—No United States Armed Forces 

15 personnel, United States civilian employee or contractor en16 gaged by the United States will participate in any combat 

17 operation in connection with assistance made available 

18 under this section, except for the purpose of acting to protect 

19 the life or the physical security of others, in self defense, 

20 or during the course of search and rescue operations.’’. 

21 (c) TECHNICAL AMENDMENT.—Subsection (d) of such 

22 section is amended by striking ‘‘Sections 556, 567, and 568 

23 of Public Law 107–115, section 8093 of the Department of 

24 Defense Appropriations Act, 2002,’’ and inserting ‘‘Section 

25 553 and the certification requirements of section 564(a)(2) 
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1 of the Foreign Operations, Export Financing, and Related 

2 Programs Appropriations Act, 2003 (division E of Public 

3 Law 108–7; 117 Stat. 200, 205), and section 8093 of the 

4 Department of Defense Appropriations Act, 2003 (Public 

5 Law 107–248; 116 Stat. 1558; 10 U.S.C. 182 note),’’. 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 subsections (b) and (c) shall apply to assistance made avail8 able under such section 501 during fiscal years 2004 and 

9 2005.

10 SEC. 502. AUTHORITY TO PROVIDE LIVING QUARTERS FOR 

11 CERTAIN STUDENTS IN COOPERATIVE AND 

12 SUMMER EDUCATION PROGRAMS OF THE NA13 TIONAL SECURITY AGENCY. 

14 Section 2195 of title 10, United States Code, is amend15 ed by adding at the end the following new subsection: 

16 ‘‘(d)(1) The Director of the National Security Agency 

17 may provide a qualifying employee of a defense laboratory 

18 of that Agency with living quarters at no charge, or at a 

19 rate or charge prescribed by the Director by regulation, 

20 without regard to section 5911(c) of title 5. 

21 ‘‘(2) In this subsection, the term ‘qualifying employee’ 

22 means a student who is employed at the National Security 

23 Agency under—
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1 ‘‘(A) a Student Educational Employment Pro2 gram of the Agency conducted under this section or 

3 any other provision of law; or 

4 ‘‘(B) a similar cooperative or summer education 

5 program of the Agency that meets the criteria for Fed6 eral cooperative or summer education programs pre7 scribed by the Office of Personnel Management.’’. 

8 SEC. 503. AUTHORITY FOR INTELLIGENCE COMMUNITY ELE9 MENTS OF DEPARTMENT OF DEFENSE TO 

10 AWARD PERSONAL SERVICE CONTRACTS. 

11 (a) IN GENERAL.—Subchapter I of chapter 21 of title 

12 10, United States Code, is amended by adding at the end 

13 the following new section: 

14 ‘‘§ 426. Personal services contracts: authority and lim15 itations 

16 ‘‘(a) PERSONAL SERVICES.—(1) The Secretary of De17 fense may, notwithstanding section 3109 of title 5, enter 

18 into personal services contracts in the United States if the 

19 personal services directly support the mission of a defense 

20 intelligence component or counter-intelligence organization. 

21 ‘‘(2) The contracting officer for a personal services con22 tract shall be responsible for ensuring that a personal serv23 ices contract is the appropriate vehicle for carrying out the 

24 purpose of the contract. 
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1 ‘‘(b) DEFINITION.—In this section, the term ‘defense 

2 intelligence component’ means a component of the Depart3 ment of Defense that is an element of the intelligence com4 munity, as defined in section 3(4) of the National Security 

5 Act of 1947 (50 U.S.C. 401a(4)).’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections at 

7 the beginning of such subchapter is amended by adding at 

8 the end the following new item:

‘‘426. Personal services contracts: authority and limitations.’’.

9 SEC. 504. PROTECTION OF CERTAIN NATIONAL SECURITY 

10 AGENCY PERSONNEL FROM TORT LIABILITY. 

11 Section 11 of the National Security Agency Act of 1959 

12 (50 U.S.C. 402 note) is amended by adding at the end the 

13 following new subsection: 

14 ‘‘(d)(1) Notwithstanding any other provision of law, 

15 agency personnel designated by the Director of the National 

16 Security Agency under subsection (a) shall be considered 

17 for purposes of chapter 171 of title 28, United States Code, 

18 or any other provision of law relating to tort liability, to 

19 be acting within the scope of their office or employment 

20 when such agency personnel take reasonable action, which 

21 may include the use of force, to—

22 ‘‘(A) protect an individual in the presence of 

23 such agency personnel from a crime of violence; 
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1 ‘‘(B) provide immediate assistance to an indi2 vidual who has suffered or who is threatened with 

3 bodily harm; or 

4 ‘‘(C) prevent the escape of any individual whom 

5 such agency personnel reasonably believe to have com6 mitted a crime of violence in the presence of such 

7 agency personnel. 

8 ‘‘(2) Paragraph (1) shall not affect the authorities of 

9 the Attorney General under section 2679(d)(1) of title 28, 

10 United States Code. 

11 ‘‘(3) In this subsection, the term ‘crime of violence’ has 

12 the meaning given that term in section 16 of title 18, 

13 United States Code.’’.

14 SEC. 505. MEASUREMENT AND SIGNATURES INTELLIGENCE 

15 RESEARCH PROGRAM. 

16 (a) RESEARCH PROGRAM.—The Secretary of Defense, 

17 acting through the Director of the Defense Intelligence Agen18 cy’s Directorate for MASINT and Technical Collection, 

19 shall carry out a program to incorporate the results of basic 

20 research on sensors into the measurement and signatures 

21 intelligence systems of the United States, to the extent the 

22 results of such research is applicable to such systems. 

23 (b) PROGRAM COMPONENTS.—The program under sub24 section (a) shall review and assess both basic research on 

25 sensors and technologies conducted by the United States 
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1 Government and by non-governmental entities. In carrying 

2 out the program, the Director shall protect intellectual 

3 property rights, maintain organizational flexibility, and es4 tablish research projects, funding levels, and potential bene5 fits in an equitable manner through Directorate. 

6 (c) ADVISORY PANEL.—(1) The Director shall establish 

7 an advisory panel to assist the Director in carrying out 

8 the program under subsection (a). 

9 (2) The advisory panel shall be headed by the Director 

10 who shall determine the selection, review, and assessment 

11 of the research projects under the program. 

12 (3)(A) The Director shall appoint as members of the 

13 advisory panel representatives of each entity of the 

14 MASINT community, and may appoint as such members 

15 representatives of national laboratories, universities, and 

16 private sector entities. 

17 (B) For purposes of this subsection the term ‘‘MASINT 

18 community’’ means academic, professional, industrial, and 

19 government entities that are committed towards the ad20 vancement of the sciences in measurement and signatures 

21 intelligence. 

22 (C) The term for a member of the advisory panel shall 

23 be established by the Director, but may not exceed a period 

24 of 5 consecutive years. 
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1 (D) Members of the advisory panel may not receive 

2 additional pay, allowances, or benefits by reason of their 

3 service on the advisory panel, but may receive per diem 

4 in lieu of subsistence, in accordance with applicable provi5 sions under subchapter I of chapter 57 of title 5, United 

6 States Code. 

7 (4) The Director may accept contributions from non8 governmental participants on the advisory panel to defray 

9 the expenses of the advisory panel.

Union Calendar No. 80

108TH CONGRESS 

1ST SESSION H. R. 2417

[Report No. 108–163] 

A BILL

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. 

JUNE 18, 2003

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, 

and ordered to be printed