H. R. 2417

One Hundred Eighth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the seventh day of January, two thousand and three

An Act

To authorize appropriations for fiscal year 2004 for intelligence and intelligencerelated activities of the United States Government, the Community Management

Account, and the Central Intelligence Agency Retirement and Disability System,

and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

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.
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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
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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. 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
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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.—

(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.
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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:

‘‘§ 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) 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) 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’’.
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(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.

(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. 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.
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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:

‘‘AUTHORITY OF FEDERAL BUREAU OF INVESTIGATION TO AWARD

PERSONAL SERVICES CONTRACTS

‘‘SEC. 302. (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) 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:
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(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) 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.
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(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:

‘‘BUDGET TREATMENT OF COSTS OF ACQUISITION OF MAJOR SYSTEMS

BY THE INTELLIGENCE COMMUNITY

‘‘SEC. 506A. (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;
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‘‘(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) 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.
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‘‘(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) EFFECTIVE DATE.—The amendments made by subsection

(b) shall take effect on the date of the enactment of this Act.

(d) 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) 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.
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(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) 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
H. R. 2417—13

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) 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. 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.
H. R. 2417—14

(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) 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) 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—
H. R. 2417—15

(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. 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) 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;
H. R. 2417—16

(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. 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) 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
H. R. 2417—17

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) 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:

‘‘COUNTERINTELLIGENCE INITIATIVES

‘‘SEC. 1102. (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
H. R. 2417—18

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) 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) 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) 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) 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) 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 securityrelated 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
H. R. 2417—19

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.
H. R. 2417—20

(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;
H. R. 2417—21

(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. REPORT ON MODIFICATIONS OF POLICY AND LAW ON CLASSIFIED INFORMATION TO FACILITATE SHARING OF

INFORMATION FOR NATIONAL SECURITY PURPOSES.

(a) 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 documentbased 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 ACTIVI- TIES.—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.).
H. R. 2417—22

(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) 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) 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.
H. R. 2417—23

(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. REPORT ON LESSONS LEARNED FROM MILITARY OPERATIONS IN IRAQ.

(a) 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. REPORTS ON CONVENTIONAL WEAPONS AND AMMUNITION

OBTAINED BY IRAQ IN VIOLATION OF CERTAIN UNITED

NATIONS SECURITY COUNCIL RESOLUTIONS.

(a) 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
H. R. 2417—24

resolutions of the United Nations Security Council adopted since

the invasion of Kuwait by Iraq in August 1990.

(b) 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) 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
H. R. 2417—25

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) 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
H. R. 2417—26

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.
H. R. 2417—27

(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
H. R. 2417—28

(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) EFFECTIVE DATE.—The amendments made by this section

shall take effect on December 31, 2003.
H. R. 2417—29

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
H. R. 2417—30

‘‘(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
H. R. 2417—31

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) 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) 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.
H. R. 2417—32

(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
H. R. 2417—33

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
H. R. 2417—34

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. 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:
H. R. 2417—35

‘‘(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) 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.
H. R. 2417—36

‘‘(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.
H. R. 2417—37

(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 nongovernmental 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) 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.
H. R. 2417—38

(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.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.