```

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2417 Reported in House (RH)]

                                                  Union Calendar No. 80
108th CONGRESS
  1st Session
                                H. R. 2417

                          [Report No. 108-163]

 To authorize appropriations for fiscal year 2004 for intelligence and 
 intelligence-related activities of the United States Government, the 
   Community Management Account, and the Central Intelligence Agency 
       Retirement and Disability System, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 11, 2003

   Mr. Goss introduced the following bill; which was referred to the 
          Select Committee on Intelligence (Permanent Select)

                             June 18, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on June 
                               11, 2003]

_______________________________________________________________________

                                 A BILL

 
 To authorize appropriations for fiscal year 2004 for intelligence and 
 intelligence-related activities of the United States Government, the 
   Community Management Account, and the Central Intelligence Agency 
       Retirement and Disability System, and for other purposes.

    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. Intelligence elements of the Department of the Treasury.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                     TITLE III--GENERAL PROVISIONS

                Subtitle A--Recurring General Provisions

Sec. 301. Increase in employee compensation and benefits authorized by 
                            law.
Sec. 302. Restriction on conduct of intelligence activities.

                        Subtitle B--Intelligence

Sec. 311. Modification of notice and wait requirements on projects to 
                            construct or improve intelligence community 
                            facilities.

                    Subtitle C--Counterintelligence

Sec. 321. Counterintelligence initiatives for the intelligence 
                            community.

                       Subtitle D--Other Matters

Sec. 331. Extension of suspension of reorganization of Diplomatic 
                            Telecommunications Service Program Office.
Sec. 332. Modifications of authorities on explosive materials.
Sec. 333. Modification of prohibition on the naturalization of certain 
                            persons.
Sec. 334. Modification to definition of financial institution in the 
                            Right to Financial Privacy Act.
Sec. 335. Procedural requirements for Central Intelligence Agency 
                            relating to products of Federal prison 
                            industries.
Sec. 336. Improvement of information sharing among federal, State, and 
                            local government officials.

              Subtitle E--Reports and Technical Amendments

Sec. 341. Extension of deadline for final report of the National 
                            Commission for the Review of the Research 
                            and Development Programs of the United 
                            States Intelligence Community.
Sec. 342. Modification of various reports required of intelligence 
                            community elements.
Sec. 343. Technical amendments.
Sec. 344. Report on lessons learned from military operations in Iraq.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Protection from tort liability for certain Central 
                            Intelligence Agency personnel.
Sec. 402. Repeal of limitation on use of funds in Central Services 
                            Working Capital Fund.

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

Sec. 501. Use of funds for counterdrug and counterterrorism activities 
                            for Colombia.
Sec. 502. Authority to provide living quarters for certain students in 
                            cooperative and summer education programs 
                            of the National Security Agency.
Sec. 503. Authority for intelligence community elements of Department 
                            of Defense to award personal service 
                            contracts.
Sec. 504. Protection of certain National Security Agency personnel from 
                            tort liability.
Sec. 505. Measurement and signatures intelligence program.

                    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 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 National Reconnaissance Office.
            (6) The National Imagery and Mapping Agency.
            (7) The Department of the Army, the Department of the Navy, 
        and the Department of the Air Force.
            (8) The Department of State.
            (9) The Department of the Treasury.
            (10) The Department of Energy.
            (11) The Department of Justice.
            (12) The Federal Bureau of Investigation.
            (13) The Department of Homeland Security.
            (14) The Coast Guard.

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 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 notify promptly the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select Committee 
on Intelligence of the Senate 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 
$192,640,000. Within such amount, funds identified in the classified 
Schedule of Authorizations referred to in section 102(a) for the 
Advanced Research and Development Committee 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 320 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 shall 
        remain available until September 30, 2004.
            (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 hereby 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), $34,248,000 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.

SEC. 105. INTELLIGENCE ELEMENTS OF THE DEPARTMENT OF THE TREASURY.

    (a) In General.--(1) Title I of the National Security Act of 1947 
(50 U.S.C. 402 et seq.) is amended by adding at the end the following 
new section:

   ``bureau of intelligence and enforcement of the department of the 
                                treasury

    ``Sec. 119. (a) In General.--There is within the Department of the 
Treasury a Bureau of Intelligence and Enforcement headed by an 
Assistant Secretary for Intelligence and Enforcement, who shall be 
appointed by the President, by and with the advice and consent of the 
Senate.
    ``(b) Responsibilities.--(1) The Assistant Secretary for 
Intelligence and Enforcement shall oversee and coordinate functions of 
the Bureau of Intelligence and Enforcement.
    ``(2) The Assistant Secretary shall report directly to the 
Secretary of the Treasury.
    ``(c) Composition of Bureau.--The Bureau of Intelligence and 
Enforcement shall consist of the following offices:
            ``(1) The Office of Intelligence Support.
            ``(2) The Office of Foreign Assets Control.
            ``(3) The Financial Crimes Enforcement Network.
            ``(4) Such other offices as the Assistant Secretary may 
        establish.''.
    (2) The table of contents contained in the first section of such 
Act is amended by inserting after the item relating to section 118 the 
following new item:

``Sec. 119. Bureau of Intelligence and Enforcement of the Department of 
                            the Treasury.''.
    (b) Consultation with DCI in Appointment of Assistant Secretary for 
Intelligence and Enforcement.--Section 106(b)(2) of such Act (50 U.S.C. 
403-6(b)(2)) is amended by adding at the end the following new 
subparagraph:
            ``(E) The Assistant Secretary for Intelligence and 
        Enforcement.''.
    (c) Conforming Amendments.--(1) Section 3(4) of such Act (50 U.S.C. 
401a(4)) is amended--
            (A) by striking ``the Department of the Treasury,'' in 
        subparagraph (H);
            (B) by striking ``and'' at the end of subparagraph (J);
            (C) by redesignating subparagraph (K) as subparagraph (L); 
        and
            (D) by inserting after subparagraph (J) the following new 
        subparagraph:
                    ``(K) the Bureau of Intelligence and Enforcement of 
                the Department of the Treasury; and''.
    (2) 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)''.

 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.

                     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 permitted under the Constitution or authorized 
pursuant to the laws of the United States.

                        Subtitle B--Intelligence

SEC. 311. MODIFICATION OF NOTICE AND WAIT REQUIREMENTS ON PROJECTS TO 
              CONSTRUCT OR IMPROVE INTELLIGENCE COMMUNITY FACILITIES.

    (a) Increase of Thresholds for Notice.--Section 602(a) 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'';
            (2) by striking ``$500,000'' each place it appears and 
        inserting ``$1,000,000''; and
            (3) in paragraph (2), as amended by paragraph (2) of this 
        subsection, by inserting after ``$1,000,000'' the second place 
        it appears, the following: ``but less than $5,000,000''.
    (b) Notice and Wait Requirements for Emergency Projects.--Section 
602(b)(2) of the Intelligence Authorization Act for Fiscal Year 1995 
(Public Law 103-359; 108 Stat. 3432; 50 U.S.C. 403-2b(b)(2)) is 
amended--
            (1) in the third sentence, by striking ``21-day'' and 
        inserting ``7-day''; and,
            (2) by adding at the end the following new sentence: 
        ``Notwithstanding the preceding provisions of this paragraph, 
        when the Director of Central Intelligence and Secretary of 
        Defense jointly determine that an emergency relating to the 
        national security or to the protection of health, safety, or 
        environmental quality exists and that delay would irreparably 
        harm any or all of those interests, the project may begin on 
        the date the notification is received by such committees.''.

                    Subtitle C--Counterintelligence

SEC. 321. 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 
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) FBI Counterintelligence Office.--The Attorney General, acting 
through the Director of the Federal Bureau of Investigation, shall 
establish an Office of Counterintelligence within the Bureau to 
investigate potential espionage activities within the Bureau.
    ``(c) Annual Review of Dissemination Lists.--(1) The Director of 
Central Intelligence shall establish and implement a process for all 
elements of the intelligence community (as defined in section 101(4)) 
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.
    ``(d) Required Completion of Financial Disclosure Statements.--(1) 
The Director of Central Intelligence shall establish and implement a 
process by which heads of the elements of the intelligence community 
(as defined in section 101(4)) direct that all employees, in order to 
be granted access to classified information, submit financial 
disclosure forms required under section 1.3(b) of Executive Order No. 
12969 (August 2, 1995; 60 F.R. 40245; 50 U.S.C. 435 note).
    ``(2) The Director shall carry out paragraph (1) through the Office 
of the National Counterintelligence Executive.
    ``(e) Arrangements To Handle Sensitive Information.--The Director 
of Central Intelligence shall establish, for all elements of the 
intelligence community (as defined in section 101(4)), 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, in 
consultation with the Office of the National Counterintelligence 
Executive, shall establish policies and procedures to assist the 
Attorney General in the Attorney General's consideration of 
intelligence and national security equities in the development of 
charging documents and related pleadings in espionage prosecutions.

                       Subtitle D--Other Matters

SEC. 331. 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; 115 Stat. 1401; 22 U.S.C. 7301 note), as 
amended by section 351 of the Intelligence Authorization Act for Fiscal 
Year 2003 (Public Law 107-306; 116 Stat. 2401; 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 
        date on which 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. 332. MODIFICATIONS OF AUTHORITIES ON EXPLOSIVE MATERIALS.

    (a) Authority To Distribute Explosive Materials To Qualified 
Aliens.--Notwithstanding any other provision of law, it shall be lawful 
for any person knowingly to distribute explosive materials to any 
qualified alien--
            (1) if, in the case of a qualified alien described in 
        subsection (c)(1), the distribution to, shipment to, 
        transportation to, receipt by, or possession by the alien of 
        the explosive materials is in furtherance of such cooperation; 
        or
            (2) if, in the case of a qualified alien described in 
        subsection (c)(2), the distribution to, shipping to, 
        transporting to, possession by, or receipt by the alien of 
        explosive materials is in furtherance of the authorized 
        military purpose.
    (b) Authority for Qualified Aliens To Ship Explosive Materials.--
Notwithstanding any other provision of law, it shall be lawful for a 
qualified alien to ship or transport any explosive in or affecting 
interstate or foreign commerce or to receive or possess any explosive 
which has been shipped or transported in or affecting interstate or 
foreign commerce--
            (1) if, in the case of a qualified alien described in 
        subsection (c)(1), the possession, shipment, or transportation 
        by the alien of the explosive materials is in furtherance of 
        such cooperation; or
            (2) if, in the case of a qualified alien described in 
        subsection (c)(2), the possession, shipment, or transportation 
        by the alien of explosive materials is in furtherance of the 
        authorized military purpose.
    (c) Qualified Alien Defined.--In this section, the term ``qualified 
alien'' means an alien--
            (1) who is lawfully present in the United States in 
        cooperation with the Director of Central Intelligence; or
            (2) who is a member of a North Atlantic Treaty Organization 
        (NATO), or other friendly foreign military force (as determined 
        by the Attorney General with the concurrence of 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.

SEC. 333. 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. 334. MODIFICATION TO DEFINITION OF FINANCIAL INSTITUTION IN THE 
              RIGHT TO FINANCIAL PRIVACY ACT.

    (a) In General.--Section 1101(1) of the Right to Financial Privacy 
Act of 1978 (12 U.S.C. 3401(1)) is amended by inserting ``, except as 
provided in section 1114,'' before ``means any office''.
    (b) Definition.--Section 1114 of such Act (12 U.S.C. 3414) is 
amended by adding at the end the following:
    ``(c) For purposes of this section, the term `financial 
institution' has the same meaning as in section 5312(a)(2) 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, or the United 
States Virgin Islands.''.

SEC. 335. PROCEDURAL REQUIREMENTS FOR CENTRAL INTELLIGENCE AGENCY 
              RELATING TO PRODUCTS OF FEDERAL PRISON INDUSTRIES.

    The Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
seq.) is amended by adding at the end the following new section:

 ``procedural requirements for central intelligence agency relating to 
                 products of federal prison industries

    ``Sec. 23. (a) Market Research.--Before purchasing a product listed 
in the latest edition of the Federal Prison Industries catalog under 
section 4124(d) of title 18, United States Code, the Director shall 
conduct market research to determine whether the Federal Prison 
Industries product is comparable to products available from the private 
sector that best meet the Agency's needs in terms of price, quality, 
and time of delivery.
    ``(b) Competition Requirement.--If the Director determines that a 
Federal Prison Industries product is not comparable in price, quality, 
or time of delivery to products available from the private sector that 
best meet the Agency's needs in terms of price, quality, and time of 
delivery, the Director shall use competitive procedures for the 
procurement of the product or shall make an individual purchase under a 
multiple award contract. In conducting such a competition or making 
such a purchase, the Director shall consider a timely offer from 
Federal Prison Industries.
    ``(c) Implementation by Director.--The Director shall ensure that--
            ``(1) the Agency does not purchase a Federal Prison 
        Industries product or service unless a contracting officer of 
        the Agency determines that the product or service is comparable 
        to products or services available from the private sector that 
        best meet the Agency's needs in terms of price, quality, and 
        time of delivery; and
            ``(2) Federal Prison Industries performs its contractual 
        obligations to the same extent as any other contractor for the 
        Agency.
    ``(d) Market Research Determination Not Subject to Review.--A 
determination by a contracting officer regarding whether a product or 
service offered by Federal Prison Industries is comparable to products 
or services available from the private sector that best meet the 
Agency's needs in terms of price, quality, and time of delivery shall 
not be subject to review pursuant to section 4124(b) of title 18.
    ``(e) Performance as a Subcontractor.--(1) A contractor or 
potential contractor of the Agency may not be required to use Federal 
Prison Industries as a subcontractor or supplier of products or 
provider of services for the performance of a contract of the Agency by 
any means, including means such as--
            ``(A) a contract solicitation provision requiring a 
        contractor to offer to make use of products or services of 
        Federal Prison Industries in the performance of the contract;
            ``(B) a contract specification requiring the contractor to 
        use specific products or services (or classes of products or 
        services) offered by Federal Prison Industries in the 
        performance of the contract; or
            ``(C) any contract modification directing the use of 
        products or services of Federal Prison Industries in the 
        performance of the contract.
    ``(2) In this subsection, the term `contractor', with respect to a 
contract, includes a subcontractor at any tier under the contract.
    ``(f) Protection of Classified and Sensitive Information.--The 
Director may not enter into any contract with Federal Prison Industries 
under which an inmate worker would have access to--
            ``(1) any data that is classified;
            ``(2) any geographic data regarding the location of--
                    ``(A) surface and subsurface infrastructure 
                providing communications or water or electrical power 
                distribution;
                    ``(B) pipelines for the distribution of natural 
                gas, bulk petroleum products, or other commodities; or
                    ``(C) other utilities; or
            ``(3) any personal or financial information about any 
        individual private citizen, including information relating to 
        such person's real property however described, without the 
        prior consent of the individual.
    ``(g) Application of Provision.--This section is subject to the 
preceding provisions of this Act, and shall not be construed as 
affecting any right or duty of the Director under those provisions.
    ``(h) Definitions.--In this section:
            ``(1) The terms `competitive procedures' and `procurement' 
        have the meanings given such terms in section 4 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403).
            ``(2) The term `market research' means obtaining specific 
        information about the price, quality, and time of delivery of 
        products available in the private sector through a variety of 
        means, which may include--
                    ``(A) contacting knowledgeable individuals in 
                government and industry;
                    ``(B) interactive communication among industry, 
                acquisition personnel, and customers; and
                    ``(C) interchange meetings or pre-solicitation 
                conferences with potential offerors.''.

SEC. 336. IMPROVEMENT OF INFORMATION SHARING AMONG FEDERAL, STATE, AND 
              LOCAL GOVERNMENT OFFICIALS.

    (a) Pilot Project To Encourage State and Local Officials, As Well 
As Representatives of Critical Infrastructure, To Collect and Share 
Relevant Information.--Section 892(c) of the Homeland Security Act of 
2002 (Public Law 107-296; 6 U.S.C. 482) is amended by adding at the end 
the following new paragraph:
            ``(3)(A) The Under Secretary for Information Analysis and 
        Infrastructure Protection of the Department of Homeland 
        Security, in consultation with the Director of Central 
        Intelligence, may conduct projects in several cities to 
        encourage officials of State and local government, as well as 
        representatives of industries that comprise the critical 
        infrastructure in those cities to lawfully collect and to pass 
        on to the appropriate Federal officials information vital for 
        the prevention of terrorist attacks against the United States.
            ``(B) The Director of Central Intelligence shall carry out 
        any duty under this paragraph through the Director of the 
        Terrorist Threat Integration Center.
            ``(C) Under the projects, training shall be provided to 
        such officials and representatives to--
                    ``(i) identify sources of potential threats through 
                such methods as the Secretary determines appropriate;
                    ``(ii) report information relating to such 
                potential threats to the appropriate Federal agencies 
                in the appropriate form and manner; and
                    ``(iii) assure that all reported information is 
                systematically submitted to and passed on by the 
                Department for use by appropriate Federal agencies.
            ``(D) The Under Secretary shall carry out the pilot project 
        under this paragraph for a period of 3 years.
            ``(E) Not later than 1 year after the implementation of the 
        pilot project, and annually thereafter, the Under Secretary 
        shall submit to Congress a report on the pilot project 
        conducted under this paragraph. Each such report shall 
        include--
                    ``(i) an assessment of the effectiveness of the 
                project; and
                    ``(ii) recommendations on the continuation of the 
                project as well as any recommendations to improve the 
                effectiveness of information collection and sharing by 
                such officials and representatives and the Federal 
                government.''.
    (b) Pilot Project To Test Use of Tear-line Intelligence Reports.--
(1) Subtitle C of title II of the Homeland Security Act of 2002 (Public 
Law 107-296) is amended by adding at the end the following new section:

``SEC. 226. PILOT PROJECT TO TEST USE OF TEAR-LINE INTELLIGENCE 
              REPORTS.

    ``(a) Authority.--The Under Secretary for Information Analysis and 
Infrastructure Protection of the Department of Homeland Security, in 
consultation with the Director of Central Intelligence, may carry out a 
pilot program under which the Under Secretary may make intelligence 
information in the possession of the Department available to officials 
of State and local governments through the use of tear-line 
intelligence reports.
    ``(b) Tear-line Intelligence Reports Described.--For purpose of 
this section, a tear-line report is a report containing intelligence 
gathered by an agency or department of the United States that is in the 
possession of the Department that is prepared in a manner such that 
information relating to intelligence sources and methods is easily 
severable from the report to protect such sources and methods from 
disclosure. Such a report may be in a paper or an electronic format.
    ``(c) Duration of Project.--The Under Secretary shall carry out the 
pilot project under this section for a period of 3 years.
    ``(d) Reports to Congress.--Not later than 1 year after the 
implementation of the pilot project, and annually thereafter, the Under 
Secretary shall submit to Congress a report on the pilot project 
conducted under this section, and shall include in the report an 
assessment of--
            ``(1) the effectiveness of the use of the tear-line reports 
        in providing intelligence information on a timely basis to 
        State and local authorities; and
            ``(2) if the use of such tear-line reports were to be made 
        permanent, whether additional safeguards are needed with 
        respect to the use of such reports.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Under Secretary such sums as may be necessary to 
carry out this section.''.
    (2) The table of contents in section 1(b) of such Act is amended in 
subtitle C of title II by adding at the end the following new item.

``Sec. 226. Pilot project to test use of tear-line intelligence 
                            reports.''.
    (c) Homeland Defender Intelligence Training Program.
            (1) Establishment of program.--The Director of Central 
        Intelligence may establish a comprehensive program of 
        orientation and training to qualified State and local officials 
        in accessing and using available resources of the intelligence 
        community (as defined in section 3(4) of the National Security 
        Act of 1947 (50 U.S.C. 401(4))).
            (2) Consultation.--Insofar as the Director establishes the 
        intelligence training program under paragraph (1), the Director 
        shall consult and coordinate with the director of the Federal 
        Bureau of Investigation and the Secretary of Homeland Security 
        on the development and administration of the program.
            (3) Program goals.--Any intelligence training program 
        established under paragraph (1) shall provide qualified State 
        and local officials instruction on the mission and roles of the 
        intelligence community to promote more effective information 
        sharing among Federal, State, and local officials to prevent 
        terrorist attacks against the United States.
            (4) Curriculum.--Insofar as the Director establishes the 
        intelligence training program under paragraph (1), the Director 
        shall develop a curriculum for the program after consultation 
        with qualified State and local officials. The curriculum shall 
        include classroom instruction with respect to and orientation 
        to the various elements of the intelligence community.
            (5) Reports to congress.--Not later than 1 year after the 
        initial implementation of the intelligence training program 
        under paragraph (1), and annually thereafter, the Director 
        shall submit to Congress a report on the program. Each such 
        report shall include--
                    (A) an assessment of the effectiveness of the 
                project; and
                    (B) recommendations on the continuation of the 
                project as well as any recommendations to improve the 
                effectiveness of information collection and sharing by 
                qualified officials and representatives and the Federal 
                government.
            (6) Qualified state and local officials defined.--For 
        purposes of this subsection, the term ``qualified State and 
        local officials'' means officials of State and local government 
        agencies that Director of Central Intelligence determines--
                    (A) have received appropriate security clearances 
                from the Director of the Federal Bureau of 
                Investigation for access to classified information; and
                    (B) oversee or manage first responders or 
                counterterrorism activities.
            (7) Authorization of appropriations.--There is authorized 
        to be appropriated to the Director such sums as are necessary 
        to carry out the intelligence training program under this 
        subsection.
    (d) Advisory Councils.--(1) The Director of the Terrorist Threat 
Integration Center shall establish two advisory councils (described in 
paragraph (2)) to provide the Director such advice and recommendations 
as the Director may require to effectively carry out the functions of 
the Center.
    (2)(A) One advisory council shall have as its focus privacy and 
civil liberties issues.
    (B) The other advisory council shall have as its focus State and 
local government information needs.

              Subtitle E--Reports and Technical Amendments

SEC. 341. EXTENSION OF DEADLINE FOR FINAL REPORT OF THE NATIONAL 
              COMMISSION FOR THE REVIEW OF THE RESEARCH AND DEVELOPMENT 
              PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY.

    (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. 342. MODIFICATION OF VARIOUS REPORTS REQUIRED OF INTELLIGENCE 
              COMMUNITY ELEMENTS.

    (a) 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; 110 Stat. 3474; 50 U.S.C. 2366), as 
amended by section 811(b)(5)(C) of the Intelligence Authorization Act 
for Fiscal Year 2003 (Public Law 107-306; 116 Stat. 2424; 50 U.S.C. 
2366), is amended by striking ``a semiannual'' and inserting ``an 
annual''.
    (b) Periodic and Special Reports on Disclosure of Intelligence 
Information to United Nations.--Section 112(b)(1) of the National 
Security Act of 1947 (50 U.S.C. 404g(b)(1)) is amended by striking 
``semiannually'' and inserting ``annually''.

SEC. 343. 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 6 of the 
Central Intelligence Agency Act of 1949 (50 U.S.C. 403g) is amended by 
striking ``section 103(c)(6)'' and inserting ``section 103(c)(7)''.
    (2) Section 15 of such 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 
        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) 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))''.
    (f) 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''.

SEC. 344. REPORT ON LESSONS LEARNED FROM MILITARY OPERATIONS IN IRAQ.

    (a) Report.--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) Accuracy, timeliness, and objectivity of intelligence 
        analysis.
            (3) Intelligence support to policymakers and members of the 
        Armed Forces in combat.
            (4) Coordination of intelligence activities and operations 
        with military operations.
            (5) 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.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. PROTECTION FROM TORT LIABILITY FOR CERTAIN CENTRAL 
              INTELLIGENCE AGENCY PERSONNEL.

    (a) In General.--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) shall be 
deemed 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 if the Agency personnel 
take reasonable action, which may include the use of force, to--
            ``(A) protect an individual in the presence of the 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 the Agency 
        personnel reasonably believe to have committed a crime of 
        violence in the presence of such personnel.
    ``(2) In this subsection, the term `crime of violence' has the 
meaning given that term in section 16 of title 18, United States 
Code.''.
    (b) Construction.--Subsection (d) of section 15, as added by 
subsection (a), shall not be construed as affecting the authorities of 
the Attorney General under the Federal Employees Liability Reform and 
Tort Compensation Act of 1988 (Public Law 100-694; 28 U.S.C. 2671, 
2674, 2679(b), 2679(d)).

SEC. 402. REPEAL OF 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).

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

SEC. 501. USE OF FUNDS FOR COUNTERDRUG AND COUNTERTERRORISM ACTIVITIES 
              FOR COLOMBIA.

    (a) Extension of Authority.--Subsection (a) of section 501 of the 
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-
306; 116 Stat. 2404) is amended by striking ``for fiscal years 2002 and 
2003'' and inserting ``for each of fiscal years 2002 through 2005''.
    (b) Modification.--(1) Subsection (e) of such section is amended to 
read as follows:
    ``(e) Prohibition.--No United States Armed Forces personnel, United 
States civilian employee or contractor engaged by the United States 
will participate in any combat operation in connection with assistance 
made available under this section, except for the purpose of acting to 
protect the life or the physical security of others, in self defense, 
or during the course of search and rescue operations.''.
    (c) Technical Amendment.--Subsection (d) of such section is amended 
by striking ``Sections 556, 567, and 568 of Public Law 107-115, section 
8093 of the Department of Defense Appropriations Act, 2002,'' and 
inserting ``Section 553 and the certification requirements of section 
564(a)(2) of the Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 2003 (division E of Public Law 108-7; 117 
Stat. 200, 205), and section 8093 of the Department of Defense 
Appropriations Act, 2003 (Public Law 107-248; 116 Stat. 1558; 10 U.S.C. 
182 note),''.
    (d) Effective Date.--The amendments made by subsections (b) and (c) 
shall apply to assistance made available under such section 501 during 
fiscal years 2004 and 2005.

SEC. 502. AUTHORITY TO PROVIDE LIVING QUARTERS FOR CERTAIN STUDENTS IN 
              COOPERATIVE AND SUMMER EDUCATION PROGRAMS OF THE NATIONAL 
              SECURITY AGENCY.

    Section 2195 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) The Director of the National Security Agency may provide a 
qualifying employee of a defense laboratory of that Agency with living 
quarters at no charge, or at a rate or charge prescribed by the 
Director by regulation, without regard to section 5911(c) of title 5.
    ``(2) In this subsection, the term `qualifying employee' means a 
student who is employed at the National Security Agency under--
            ``(A) a Student Educational Employment Program of the 
        Agency conducted under this section or any other provision of 
        law; or
            ``(B) a similar cooperative or summer education program of 
        the Agency that meets the criteria for Federal cooperative or 
        summer education programs prescribed by the Office of Personnel 
        Management.''.

SEC. 503. AUTHORITY FOR INTELLIGENCE COMMUNITY ELEMENTS OF DEPARTMENT 
              OF DEFENSE TO AWARD PERSONAL SERVICE CONTRACTS.

    (a) In General.--Subchapter I of chapter 21 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 426. Personal services contracts: authority and limitations
    ``(a) Personal Services.--(1) The Secretary of Defense may, 
notwithstanding section 3109 of title 5, enter into personal services 
contracts in the United States if the personal services directly 
support the mission of a defense intelligence component or counter-
intelligence organization.
    ``(2) The contracting officer for a personal services contract 
shall be responsible for ensuring that a personal services contract is 
the appropriate vehicle for carrying out the purpose of the contract.
    ``(b) Definition.--In this section, the term `defense intelligence 
component' means a component of the Department of Defense that is an 
element of the intelligence community, as defined in section 3(4) of 
the National Security Act of 1947 (50 U.S.C. 401a(4)).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``426. Personal services contracts: authority and limitations.''.

SEC. 504. 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(d)(1) 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. 505. MEASUREMENT AND SIGNATURES INTELLIGENCE RESEARCH PROGRAM.

    (a) Research Program.--The Secretary of Defense, acting through the 
Director of the Defense Intelligence Agency's Directorate for MASINT 
and Technical Collection, shall 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 is applicable to such systems.
    (b) Program Components.--The program under subsection (a) shall 
review and assess both basic research on sensors and technologies 
conducted by the United States Government and by non-governmental 
entities. In carrying out the program, the Director shall protect 
intellectual property rights, maintain organizational flexibility, and 
establish research projects, funding levels, and potential benefits in 
an equitable manner through 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.

                                                  Union Calendar No. 80

108th CONGRESS

  1st Session

                               H. R. 2417

                          [Report No. 108-163]

_______________________________________________________________________

                                 A BILL

 To authorize appropriations for fiscal year 2004 for intelligence and 
 intelligence-related activities of the United States Government, the 
   Community Management Account, and the Central Intelligence Agency 
       Retirement and Disability System, and for other purposes.

_______________________________________________________________________

                             June 18, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```