II 

Calendar No. 184

108TH CONGRESS 

1ST SESSION H. R. 2417

IN THE SENATE OF THE UNITED STATES 

JUNE 27, 2003

Received; read twice and place on the calendar 

AN ACT

To authorize appropriations for fiscal year 2004 for intelligence and intelligence-related activities of the United 

States Government, the Community Management Account, and the Central Intelligence Agency Retirement 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Intelligence Authorization Act for Fiscal Year 2004’’. 

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

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—INTELLIGENCE ACTIVITIES 

Sec. 101. Authorization of appropriations. 

Sec. 102. Classified schedule of authorizations. 

Sec. 103. Personnel ceiling adjustments. 

Sec. 104. Intelligence Community Management Account. 

Sec. 105. Intelligence elements of the Department of the Treasury. 

TITLE II—CENTRAL INTELLIGENCE AGENCY RETIREMENT AND 

DISABILITY SYSTEM 

Sec. 201. Authorization of appropriations. 

TITLE III—GENERAL PROVISIONS 

Subtitle A—Recurring General Provisions 

Sec. 301. Increase in employee compensation and benefits authorized by law. 

Sec. 302. Restriction on conduct of intelligence activities. 

Subtitle B—Intelligence 

Sec. 311. Modification of notice and wait requirements on projects to construct 

or improve intelligence community facilities. 

Subtitle C—Counterintelligence 

Sec. 321. Counterintelligence initiatives for the intelligence community. 

Subtitle D—Other Matters 

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

Sec. 332. Modifications of authorities on explosive materials. 

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

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

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

products of Federal prison industries. 

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

government officials. 
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Sec. 337. Improvement of recruitment, hiring and retention of ethnic and cultural minorities in the intelligence community. 

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. 

Sec. 345. Modification of terrorist identification classification system. 

TITLE IV—CENTRAL INTELLIGENCE AGENCY 

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

personnel. 

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

Capital Fund. 

TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS 

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

Colombia. 

Sec. 502. Authority to provide living quarters for certain students in cooperative and summer education programs of the National Security 

Agency. 

Sec. 503. Authority for intelligence community elements of Department of Defense to award personal service contracts. 

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

liability. 

Sec. 505. Measurement and signatures intelligence program.

1 TITLE I—INTELLIGENCE 

2 ACTIVITIES 

3 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

4 Funds are hereby authorized to be appropriated for 

5 fiscal year 2004 for the conduct of the intelligence and 

6 intelligence-related activities of the following elements of 

7 the United States Government: 

8 (1) The Central Intelligence Agency. 

9 (2) The Department of Defense. 

10 (3) The Defense Intelligence Agency. 

11 (4) The National Security Agency. 
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1 (5) The National Reconnaissance Office. 

2 (6) The National Imagery and Mapping Agen3 cy. 

4 (7) The Department of the Army, the Depart5 ment of the Navy, and the Department of the Air 

6 Force. 

7 (8) The Department of State. 

8 (9) The Department of the Treasury. 

9 (10) The Department of Energy. 

10 (11) The Department of Justice. 

11 (12) The Federal Bureau of Investigation. 

12 (13) The Department of Homeland Security. 

13 (14) The Coast Guard. 

14 SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS. 

15 (a) SPECIFICATIONS OF AMOUNTS AND PERSONNEL

16 CEILINGS.—The amounts authorized to be appropriated 

17 under section 101, and the authorized personnel ceilings 

18 as of September 30, 2004, for the conduct of the intel19 ligence and intelligence-related activities of the elements 

20 listed in such section, are those specified in the classified 

21 Schedule of Authorizations prepared to accompany the bill 

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

23 (b) AVAILABILITY OF CLASSIFIED SCHEDULE OF AU24 THORIZATIONS.—The Schedule of Authorizations shall be 

25 made available to the Committees on Appropriations of
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1 the Senate and House of Representatives and to the Presi2 dent. The President shall provide for suitable distribution 

3 of the Schedule, or of appropriate portions of the Sched4 ule, within the executive branch. 

5 SEC. 103. PERSONNEL CEILING ADJUSTMENTS. 

6 (a) AUTHORITY FOR ADJUSTMENTS.—With the ap7 proval of the Director of the Office of Management and 

8 Budget, the Director of Central Intelligence may authorize 

9 employment of civilian personnel in excess of the number 

10 authorized for fiscal year 2004 under section 102 when 

11 the Director of Central Intelligence determines that such 

12 action is necessary to the performance of important intel13 ligence functions, except that the number of personnel em14 ployed in excess of the number authorized under such sec15 tion may not, for any element of the intelligence commu16 nity, exceed 2 percent of the number of civilian personnel 

17 authorized under such section for such element. 

18 (b) NOTICE TO INTELLIGENCE COMMITTEES.—The 

19 Director of Central Intelligence shall notify promptly the 

20 Permanent Select Committee on Intelligence of the House 

21 of Representatives and the Select Committee on Intel22 ligence of the Senate whenever the Director exercises the 

23 authority granted by this section. 
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1 SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT AC2 COUNT. 

3 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated for the Intelligence Commu5 nity Management Account of the Director of Central Intel6 ligence for fiscal year 2004 the sum of $192,640,000. 

7 Within such amount, funds identified in the classified 

8 Schedule of Authorizations referred to in section 102(a) 

9 for the Advanced Research and Development Committee 

10 shall remain available until September 30, 2005. 

11 (b) AUTHORIZED PERSONNEL LEVELS.—The ele12 ments within the Intelligence Community Management 

13 Account of the Director of Central Intelligence are author14 ized 320 full-time personnel as of September 30, 2004. 

15 Personnel serving in such elements may be permanent em16 ployees of the Intelligence Community Management Ac17 count or personnel detailed from other elements of the 

18 United States Government. 

19 (c) CLASSIFIED AUTHORIZATIONS.—

20 (1) AUTHORIZATION OF APPROPRIATIONS.—In 

21 addition to amounts authorized to be appropriated 

22 for the Intelligence Community Management Ac23 count by subsection (a), there are also authorized to 

24 be appropriated for the Intelligence Community 

25 Management Account for fiscal year 2004 such addi26 tional amounts as are specified in the classified 
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1 Schedule of Authorizations referred to in section 

2 102(a). Such additional amounts shall remain avail3 able until September 30, 2004. 

4 (2) AUTHORIZATION OF PERSONNEL.—In addi5 tion to the personnel authorized by subsection (b) 

6 for elements of the Intelligence Community Manage7 ment Account as of September 30, 2004, there are 

8 hereby authorized such additional personnel for such 

9 elements as of that date as are specified in the clas10 sified Schedule of Authorizations. 

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

12 113 of the National Security Act of 1947 (50 U.S.C. 

13 404h), during fiscal year 2004 any officer or employee of 

14 the United States or a member of the Armed Forces who 

15 is detailed to the staff of the Intelligence Community Man16 agement Account from another element of the United 

17 States Government shall be detailed on a reimbursable 

18 basis, except that any such officer, employee, or member 

19 may be detailed on a nonreimbursable basis for a period 

20 of less than one year for the performance of temporary 

21 functions as required by the Director of Central Intel22 ligence. 

23 (e) NATIONAL DRUG INTELLIGENCE CENTER.—

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

25 be appropriated in subsection (a), $34,248,000 shall 
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1 be available for the National Drug Intelligence Cen2 ter. Within such amount, funds provided for re3 search, development, testing, and evaluation pur4 poses shall remain available until September 30, 

5 2005, and funds provided for procurement purposes 

6 shall remain available until September 30, 2006. 

7 (2) TRANSFER OF FUNDS.—The Director of 

8 Central Intelligence shall transfer to the Attorney 

9 General funds available for the National Drug Intel10 ligence Center under paragraph (1). The Attorney 

11 General shall utilize funds so transferred for the ac12 tivities of the National Drug Intelligence Center. 

13 (3) LIMITATION.—Amounts available for the 

14 National Drug Intelligence Center may not be used 

15 in contravention of the provisions of section 

16 103(d)(1) of the National Security Act of 1947 (50 

17 U.S.C. 403–3(d)(1)). 

18 (4) AUTHORITY.—Notwithstanding any other 

19 provision of law, the Attorney General shall retain 

20 full authority over the operations of the National 

21 Drug Intelligence Center.
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1 SEC. 105. INTELLIGENCE ELEMENTS OF THE DEPARTMENT 

2 OF THE TREASURY. 

3 (a) IN GENERAL.—(1) Title I of the National Secu4 rity Act of 1947 (50 U.S.C. 402 et seq.) is amended by 

5 adding at the end the following new section: 

6 ‘‘BUREAU OF INTELLIGENCE AND ENFORCEMENT OF THE

7 DEPARTMENT OF THE TREASURY

8 ‘‘SEC. 119. (a) IN GENERAL.—There is within the 

9 Department of the Treasury a Bureau of Intelligence and 

10 Enforcement headed by an Assistant Secretary for Intel11 ligence and Enforcement, who shall be appointed by the 

12 President, by and with the advice and consent of the Sen13 ate. 

14 ‘‘(b) RESPONSIBILITIES.—(1) The Assistant Sec15 retary for Intelligence and Enforcement shall oversee and 

16 coordinate functions of the Bureau of Intelligence and En17 forcement. 

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

19 the Secretary of the Treasury. 

20 ‘‘(c) COMPOSITION OF BUREAU.—The Bureau of In21 telligence and Enforcement shall consist of the following 

22 offices: 

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

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

25 ‘‘(3) The Financial Crimes Enforcement Net26 work. 
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1 ‘‘(4) Such other offices as the Assistant Sec2 retary may establish.’’. 

3 (2) The table of contents contained in the first sec4 tion of such Act is amended by inserting after the item 

5 relating to section 118 the following new item:

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

Treasury.’’.

6 (b) CONSULTATION WITH DCI IN APPOINTMENT OF

7 ASSISTANT SECRETARY FOR INTELLIGENCE AND EN8 FORCEMENT.—Section 106(b)(2) of such Act (50 U.S.C. 

9 403–6(b)(2)) is amended by adding at the end the fol10 lowing new subparagraph: 

11 ‘‘(E) The Assistant Secretary for Intelligence 

12 and Enforcement.’’. 

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

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

15 (A) by striking ‘‘the Department of the Treas16 ury,’’ in subparagraph (H); 

17 (B) by striking ‘‘and’’ at the end of subpara18 graph (J); 

19 (C) by redesignating subparagraph (K) as sub20 paragraph (L); and 

21 (D) by inserting after subparagraph (J) the fol22 lowing new subparagraph: 
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1 ‘‘(K) the Bureau of Intelligence and En2 forcement of the Department of the Treasury; 

3 and’’. 

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

5 amended in the item relating to Assistant Secretaries of 

6 the Treasury by striking ‘‘(7)’’ and inserting ‘‘(8)’’.

7 TITLE II—CENTRAL INTEL8 LIGENCE AGENCY RETIRE9 MENT AND DISABILITY SYS10 TEM 

11 SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 

12 There is authorized to be appropriated for the Cen13 tral Intelligence Agency Retirement and Disability Fund 

14 for fiscal year 2004 the sum of $226,400,000. 

15 TITLE III—GENERAL 

16 PROVISIONS 

17 Subtitle A—Recurring General 

18 Provisions 

19 SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND 

20 BENEFITS AUTHORIZED BY LAW. 

21 Appropriations authorized by this Act for salary, pay, 

22 retirement, and other benefits for Federal employees may 

23 be increased by such additional or supplemental amounts 

24 as may be necessary for increases in such compensation 

25 or benefits authorized by law. 
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1 SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE 

2 ACTIVITIES. 

3 The authorization of appropriations by this Act shall 

4 not be deemed to constitute authority for the conduct of 

5 any intelligence activity which is not otherwise permitted 

6 under the Constitution or authorized pursuant to the laws 

7 of the United States. 

8 Subtitle B—Intelligence 

9 SEC. 311. MODIFICATION OF NOTICE AND WAIT REQUIRE10 MENTS ON PROJECTS TO CONSTRUCT OR IM11 PROVE INTELLIGENCE COMMUNITY FACILI12 TIES. 

13 (a) INCREASE OF THRESHOLDS FOR NOTICE.—Sec14 tion 602(a) of the Intelligence Authorization Act for Fiscal 

15 Year 1995 (Public Law 103–359; 108 Stat. 3432; 50 

16 U.S.C. 403–2b(a)) is amended—

17 (1) by striking ‘‘$750,000’’ each place it ap18 pears and inserting ‘‘$5,000,000’’; 

19 (2) by striking ‘‘$500,000’’ each place it ap20 pears and inserting ‘‘$1,000,000’’; and 

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

22 (2) of this subsection, by inserting after 

23 ‘‘$1,000,000’’ the second place it appears, the fol24 lowing: ‘‘but less than $5,000,000’’. 

25 (b) NOTICE AND WAIT REQUIREMENTS FOR EMER26 GENCY PROJECTS.—Section 602(b)(2) of the Intelligence
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1 Authorization Act for Fiscal Year 1995 (Public Law 103–

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

3 amended—

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

5 and inserting ‘‘7-day’’; and 

6 (2) by adding at the end the following new sen7 tence: ‘‘Notwithstanding the preceding provisions of 

8 this paragraph, when the Director of Central Intel9 ligence and Secretary of Defense jointly determine 

10 that an emergency relating to the national security 

11 or to the protection of health, safety, or environ12 mental quality exists and that delay would irrep13 arably harm any or all of those interests, the project 

14 may begin on the date the notification is received by 

15 such committees.’’. 

16 Subtitle C—Counterintelligence

17 SEC. 321. COUNTERINTELLIGENCE INITIATIVES FOR THE 

18 INTELLIGENCE COMMUNITY. 

19 (a) IN GENERAL.—(1) Title XI of the National Secu20 rity Act of 1947 (50 U.S.C. 401 et seq.) is amended by 

21 adding at the end the following new section: 

22 ‘‘COUNTERINTELLIGENCE INITIATIVES

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

24 to protect intelligence sources and methods from unau25 thorized disclosure, the Director of Central Intelligence 

26 shall establish and implement an inspection process for all 
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1 agencies and departments of the United States that han2 dle classified information relating to the national security 

3 of the United States intended to assure that those agen4 cies and departments maintain effective operational secu5 rity practices and programs directed against counterintel6 ligence activities. 

7 ‘‘(2) The Director shall carry out the process through 

8 the Office of the National Counterintelligence Executive. 

9 ‘‘(b) FBI COUNTERINTELLIGENCE OFFICE.—The 

10 Attorney General, acting through the Director of the Fed11 eral Bureau of Investigation, shall establish an Office of 

12 Counterintelligence within the Bureau to investigate po13 tential espionage activities within the Bureau. 

14 ‘‘(c) ANNUAL REVIEW OF DISSEMINATION LISTS.—

15 (1) The Director of Central Intelligence shall establish and 

16 implement a process for all elements of the intelligence 

17 community (as defined in section 101(4)) to review, on 

18 an annual basis, individuals included on distribution lists 

19 for access to classified information. Such process shall en20 sure that only individuals who have a particularized ‘need 

21 to know’ (as determined by the Director) are continued 

22 on such distribution lists. 

23 ‘‘(2) Not later than October 15 of each year, the Di24 rector shall certify to the congressional intelligence com25 mittees that the review required under paragraph (1) has 
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1 been conducted in all elements of the intelligence commu2 nity during the preceding fiscal year. 

3 ‘‘(d) REQUIRED COMPLETION OF FINANCIAL DIS4 CLOSURE STATEMENTS.—(1) The Director of Central In5 telligence shall establish and implement a process by which 

6 heads of the elements of the intelligence community (as 

7 defined in section 101(4)) direct that all employees, in 

8 order to be granted access to classified information, sub9 mit financial disclosure forms required under section 

10 1.3(b) of Executive Order No. 12969 (August 2, 1995; 

11 60 F.R. 40245; 50 U.S.C. 435 note). 

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

13 through the Office of the National Counterintelligence Ex14 ecutive. 

15 ‘‘(e) ARRANGEMENTS TO HANDLE SENSITIVE IN16 FORMATION.—The Director of Central Intelligence shall 

17 establish, for all elements of the intelligence community 

18 (as defined in section 101(4)), programs and procedures 

19 by which sensitive classified information relating to human 

20 intelligence is safeguarded against unauthorized disclosure 

21 by employees of those elements.’’. 

22 (2) The table of contents contained in the first sec23 tion of such Act is amended in the items relating to title 

24 XI by adding at the end the following new item:

‘‘Sec. 1102. Counterintelligence initiatives.’’.
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1 (b) INTELLIGENCE AND NATIONAL SECURITY AS2 PECTS OF ESPIONAGE PROSECUTIONS.—The Attorney 

3 General, acting through the Office of Intelligence Policy 

4 and Review of the Department of Justice, in consultation 

5 with the Office of the National Counterintelligence Execu6 tive, shall establish policies and procedures to assist the 

7 Attorney General in the Attorney General’s consideration 

8 of intelligence and national security equities in the devel9 opment of charging documents and related pleadings in 

10 espionage prosecutions. 

11 Subtitle D—Other Matters 

12 SEC. 331. EXTENSION OF SUSPENSION OF REORGANIZA13 TION OF DIPLOMATIC TELECOMMUNI14 CATIONS SERVICE PROGRAM OFFICE. 

15 Section 311 of the Intelligence Authorization Act for 

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

17 22 U.S.C. 7301 note), as amended by section 351 of the 

18 Intelligence Authorization Act for Fiscal Year 2003 (Pub19 lic Law 107–306; 116 Stat. 2401; 22 U.S.C. 7301 note), 

20 is amended—

21 (1) in the heading, by striking ‘‘TWO-YEAR’’ 

22 before ‘‘SUSPENSION OF REORGANIZATION’’; and 

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

24 1, 2003’’ and inserting ‘‘ending on the date that is 

25 60 days after the date on which appropriate congres-
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1 sional committees of jurisdiction (as defined in sec2 tion 324(d) of that Act (22 U.S.C. 7304(d)) are no3 tified jointly by the Secretary of State (or the Sec4 retary’s designee) and the Director of the Office of 

5 Management and Budget (or the Director’s des6 ignee) that the operational framework for the office 

7 has been terminated’’.

8 SEC. 332. MODIFICATIONS OF AUTHORITIES ON EXPLOSIVE 

9 MATERIALS. 

10 (a) AUTHORITY TO DISTRIBUTE EXPLOSIVE MATE11 RIALS TO QUALIFIED ALIENS.—Notwithstanding any 

12 other provision of law, it shall be lawful for any person 

13 knowingly to distribute explosive materials to any qualified 

14 alien—

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

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

17 transportation to, receipt by, or possession by the 

18 alien of the explosive materials is in furtherance of 

19 such cooperation; or 

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

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

22 transporting to, possession by, or receipt by the 

23 alien of explosive materials is in furtherance of the 

24 authorized military purpose. 
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1 (b) AUTHORITY FOR QUALIFIED ALIENS TO SHIP

2 EXPLOSIVE MATERIALS.—Notwithstanding any other pro3 vision of law, it shall be lawful for a qualified alien to ship 

4 or transport any explosive in or affecting interstate or for5 eign commerce or to receive or possess any explosive which 

6 has been shipped or transported in or affecting interstate 

7 or foreign commerce—

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

9 in subsection (c)(1), the possession, shipment, or 

10 transportation by the alien of the explosive materials 

11 is in furtherance of such cooperation; or 

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

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

14 transportation by the alien of explosive materials is 

15 in furtherance of the authorized military purpose. 

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

17 the term ‘‘qualified alien’’ means an alien—

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

19 in cooperation with the Director of Central Intel20 ligence; or 

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

22 Organization (NATO), or other friendly foreign mili23 tary force (as determined by the Attorney General 

24 with the concurrence of the Secretary of Defense) 

25 who is present in the United States under military 
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1 orders for training or other military purpose author2 ized by the United States. 

3 SEC. 333. MODIFICATION OF PROHIBITION ON THE NATU4 RALIZATION OF CERTAIN PERSONS. 

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

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

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

8 activities are relevant to the determination’’ after 

9 ‘‘Secretary of Defense’’; and 

10 (2) by inserting ‘‘and the Secretary of Home11 land Security’’ after ‘‘Attorney General’’.

12 SEC. 334. MODIFICATION TO DEFINITION OF FINANCIAL IN13 STITUTION IN THE RIGHT TO FINANCIAL PRI14 VACY ACT. 

15 (a) IN GENERAL.—Section 1101(1) of the Right to 

16 Financial Privacy Act of 1978 (12 U.S.C. 3401(1)) is 

17 amended by inserting ‘‘, except as provided in section 

18 1114,’’ before ‘‘means any office’’. 

19 (b) DEFINITION.—Section 1114 of such Act (12 

20 U.S.C. 3414) is amended by adding at the end the fol21 lowing: 

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

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

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

25 of this section, such term shall include only such a finan-
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1 cial institution any part of which is located inside any 

2 State or territory of the United States, the District of Co3 lumbia, Puerto Rico, Guam, American Samoa, or the 

4 United States Virgin Islands.’’.

5 SEC. 335. PROCEDURAL REQUIREMENTS FOR CENTRAL IN6 TELLIGENCE AGENCY RELATING TO PROD7 UCTS OF FEDERAL PRISON INDUSTRIES. 

8 The Central Intelligence Agency Act of 1949 (50 

9 U.S.C. 403a et seq.) is amended by adding at the end the 

10 following new section:

11 ‘‘PROCEDURAL REQUIREMENTS FOR CENTRAL INTEL12 LIGENCE AGENCY RELATING TO PRODUCTS OF FED13 ERAL PRISON INDUSTRIES

14 ‘‘SEC. 23. (a) MARKET RESEARCH.—Before pur15 chasing a product listed in the latest edition of the Federal 

16 Prison Industries catalog under section 4124(d) of title 

17 18, United States Code, the Director shall conduct market 

18 research to determine whether the Federal Prison Indus19 tries product is comparable to products available from the 

20 private sector that best meet the Agency’s needs in terms 

21 of price, quality, and time of delivery. 

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

23 determines that a Federal Prison Industries product is not 

24 comparable in price, quality, or time of delivery to prod25 ucts available from the private sector that best meet the 

26 Agency’s needs in terms of price, quality, and time of de-
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1 livery, the Director shall use competitive procedures for 

2 the procurement of the product or shall make an indi3 vidual purchase under a multiple award contract. In con4 ducting such a competition or making such a purchase, 

5 the Director shall consider a timely offer from Federal 

6 Prison Industries. 

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

8 shall ensure that—

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

10 Prison Industries product or service unless a con11 tracting officer of the Agency determines that the 

12 product or service is comparable to products or serv13 ices available from the private sector that best meet 

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

15 time of delivery; and 

16 ‘‘(2) Federal Prison Industries performs its 

17 contractual obligations to the same extent as any 

18 other contractor for the Agency. 

19 ‘‘(d) MARKET RESEARCH DETERMINATION NOT

20 SUBJECT TO REVIEW.—A determination by a contracting 

21 officer regarding whether a product or service offered by 

22 Federal Prison Industries is comparable to products or 

23 services available from the private sector that best meet 

24 the Agency’s needs in terms of price, quality, and time 
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1 of delivery shall not be subject to review pursuant to sec2 tion 4124(b) of title 18. 

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

4 contractor or potential contractor of the Agency may not 

5 be required to use Federal Prison Industries as a subcon6 tractor or supplier of products or provider of services for 

7 the performance of a contract of the Agency by any 

8 means, including means such as—

9 ‘‘(A) a contract solicitation provision requiring 

10 a contractor to offer to make use of products or 

11 services of Federal Prison Industries in the perform12 ance of the contract; 

13 ‘‘(B) a contract specification requiring the con14 tractor to use specific products or services (or class15 es of products or services) offered by Federal Prison 

16 Industries in the performance of the contract; or 

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

18 of products or services of Federal Prison Industries 

19 in the performance of the contract. 

20 ‘‘(2) In this subsection, the term ‘contractor’, with 

21 respect to a contract, includes a subcontractor at any tier 

22 under the contract. 

23 ‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE

24 INFORMATION.—The Director may not enter into any con-
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1 tract with Federal Prison Industries under which an in2 mate worker would have access to—

3 ‘‘(1) any data that is classified; 

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

5 of—

6 ‘‘(A) surface and subsurface infrastructure 

7 providing communications or water or electrical 

8 power distribution; 

9 ‘‘(B) pipelines for the distribution of nat10 ural gas, bulk petroleum products, or other 

11 commodities; or 

12 ‘‘(C) other utilities; or 

13 ‘‘(3) any personal or financial information 

14 about any individual private citizen, including infor15 mation relating to such person’s real property how16 ever described, without the prior consent of the indi17 vidual. 

18 ‘‘(g) APPLICATION OF PROVISION.—This section is 

19 subject to the preceding provisions of this Act, and shall 

20 not be construed as affecting any right or duty of the Di21 rector under those provisions. 

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

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

24 ‘procurement’ have the meanings given such terms 
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1 in section 4 of the Office of Federal Procurement 

2 Policy Act (41 U.S.C. 403). 

3 ‘‘(2) The term ‘market research’ means obtain4 ing specific information about the price, quality, and 

5 time of delivery of products available in the private 

6 sector through a variety of means, which may in7 clude—

8 ‘‘(A) contacting knowledgeable individuals 

9 in government and industry; 

10 ‘‘(B) interactive communication among in11 dustry, acquisition personnel, and customers; 

12 and 

13 ‘‘(C) interchange meetings or pre-solicita14 tion conferences with potential offerors.’’. 

15 SEC. 336. IMPROVEMENT OF INFORMATION SHARING 

16 AMONG FEDERAL, STATE, AND LOCAL GOV17 ERNMENT OFFICIALS. 

18 (a) PILOT PROJECT TO ENCOURAGE STATE AND

19 LOCAL OFFICIALS, AS WELL AS REPRESENTATIVES OF

20 CRITICAL INFRASTRUCTURE, TO COLLECT AND SHARE

21 RELEVANT INFORMATION.—Section 892(c) of the Home22 land Security Act of 2002 (Public Law 107–296; 6 U.S.C. 

23 482) is amended by adding at the end the following new 

24 paragraph:
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1 ‘‘(3)(A) The Under Secretary for Information 

2 Analysis and Infrastructure Protection of the De3 partment of Homeland Security, in consultation with 

4 the Director of Central Intelligence, may conduct 

5 projects in several cities to encourage officials of 

6 State and local government, as well as representa7 tives of industries that comprise the critical infra8 structure in those cities to lawfully collect and to 

9 pass on to the appropriate Federal officials informa10 tion vital for the prevention of terrorist attacks 

11 against the United States. 

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

13 carry out any duty under this paragraph through 

14 the Director of the Terrorist Threat Integration 

15 Center.

16 ‘‘(C) Under the projects, training shall be pro17 vided to such officials and representatives to—

18 ‘‘(i) identify sources of potential threats 

19 through such methods as the Secretary deter20 mines appropriate; 

21 ‘‘(ii) report information relating to such 

22 potential threats to the appropriate Federal 

23 agencies in the appropriate form and manner; 

24 and 
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1 ‘‘(iii) assure that all reported information 

2 is systematically submitted to and passed on by 

3 the Department for use by appropriate Federal 

4 agencies. 

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

6 pilot project under this paragraph for a period of 3 

7 years. 

8 ‘‘(E) Not later than 1 year after the implemen9 tation of the pilot project, and annually thereafter, 

10 the Under Secretary shall submit to Congress a re11 port on the pilot project conducted under this para12 graph. Each such report shall include—

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

14 the project; and 

15 ‘‘(ii) recommendations on the continuation 

16 of the project as well as any recommendations 

17 to improve the effectiveness of information col18 lection and sharing by such officials and rep19 resentatives and the Federal Government.’’. 

20 (b) PILOT PROJECT TO TEST USE OF TEAR-LINE IN21 TELLIGENCE REPORTS.—(1) Subtitle C of title II of the 

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

23 is amended by adding at the end the following new section: 
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1 ‘‘SEC. 226. PILOT PROJECT TO TEST USE OF TEAR-LINE IN2 TELLIGENCE REPORTS. 

3 ‘‘(a) AUTHORITY.—The Under Secretary for Infor4 mation Analysis and Infrastructure Protection of the De5 partment of Homeland Security, in consultation with the 

6 Director of Central Intelligence, may carry out a pilot pro7 gram under which the Under Secretary may make intel8 ligence information in the possession of the Department 

9 available to officials of State and local governments 

10 through the use of tear-line intelligence reports. 

11 ‘‘(b) TEAR-LINE INTELLIGENCE REPORTS DE12 SCRIBED.—For purpose of this section, a tear-line report 

13 is a report containing intelligence gathered by an agency 

14 or department of the United States that is in the posses15 sion of the Department that is prepared in a manner such 

16 that information relating to intelligence sources and meth17 ods is easily severable from the report to protect such 

18 sources and methods from disclosure. Such a report may 

19 be in a paper or an electronic format. 

20 ‘‘(c) DURATION OF PROJECT.—The Under Secretary 

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

22 period of 3 years. 

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

24 after the implementation of the pilot project, and annually 

25 thereafter, the Under Secretary shall submit to Congress 
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1 a report on the pilot project conducted under this section, 

2 and shall include in the report an assessment of—

3 ‘‘(1) the effectiveness of the use of the tear-line 

4 reports in providing intelligence information on a 

5 timely basis to State and local authorities; and 

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

7 be made permanent, whether additional safeguards 

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

9 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to the Under Secretary 

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

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

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

14 the following new item:

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

15 (c) HOMELAND DEFENDER INTELLIGENCE TRAIN16 ING PROGRAM.—

17 (1) ESTABLISHMENT OF PROGRAM.—The Di18 rector of Central Intelligence may establish a com19 prehensive program of orientation and training to 

20 qualified State and local officials in accessing and 

21 using available resources of the intelligence commu22 nity (as defined in section 3(4) of the National Secu23 rity Act of 1947 (50 U.S.C. 401(4))). 

24 (2) CONSULTATION.—Insofar as the Director 

25 establishes the intelligence training program under
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1 paragraph (1), the Director shall consult and coordi2 nate with the director of the Federal Bureau of In3 vestigation and the Secretary of Homeland Security 

4 on the development and administration of the pro5 gram. 

6 (3) PROGRAM GOALS.—Any intelligence training 

7 program established under paragraph (1) shall pro8 vide qualified State and local officials instruction on 

9 the mission and roles of the intelligence community 

10 to promote more effective information sharing 

11 among Federal, State, and local officials to prevent 

12 terrorist attacks against the United States. 

13 (4) CURRICULUM.—Insofar as the Director es14 tablishes the intelligence training program under 

15 paragraph (1), the Director shall develop a cur16 riculum for the program after consultation with 

17 qualified State and local officials. The curriculum 

18 shall include classroom instruction with respect to 

19 and orientation to the various elements of the intel20 ligence community. 

21 (5) REPORTS TO CONGRESS.—Not later than 1 

22 year after the initial implementation of the intel23 ligence training program under paragraph (1), and 

24 annually thereafter, the Director shall submit to 
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1 Congress a report on the program. Each such report 

2 shall include—

3 (A) an assessment of the effectiveness of 

4 the project; and 

5 (B) recommendations on the continuation 

6 of the project as well as any recommendations 

7 to improve the effectiveness of information col8 lection and sharing by qualified officials and 

9 representatives and the Federal Government. 

10 (6) QUALIFIED STATE AND LOCAL OFFICIALS

11 DEFINED.—For purposes of this subsection, the 

12 term ‘‘qualified State and local officials’’ means offi13 cials of State and local government agencies that Di14 rector of Central Intelligence determines—

15 (A) have received appropriate security 

16 clearances from the Director of the Federal Bu17 reau of Investigation for access to classified in18 formation; and 

19 (B) oversee or manage first responders or 

20 counterterrorism activities.

21 (7) AUTHORIZATION OF APPROPRIATIONS.—

22 There is authorized to be appropriated to the Direc23 tor such sums as are necessary to carry out the in24 telligence training program under this subsection. 
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1 (d) ADVISORY COUNCILS.—(1) The Director of the 

2 Terrorist Threat Integration Center shall establish two 

3 advisory councils (described in paragraph (2)) to provide 

4 the Director such advice and recommendations as the Di5 rector may require to effectively carry out the functions 

6 of the Center. 

7 (2)(A) One advisory council shall have as its focus 

8 privacy and civil liberties issues. 

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

10 State and local government information needs. 

11 SEC. 337. IMPROVEMENT OF RECRUITMENT, HIRING AND 

12 RETENTION OF ETHNIC AND CULTURAL MI13 NORITIES IN THE INTELLIGENCE COMMU14 NITY. 

15 (a) PILOT PROJECT TO IMPROVE DIVERSITY

16 THROUGHOUT THE INTELLIGENCE COMMUNITY USING

17 INNOVATIVE METHODOLOGIES FOR THE RECRUITMENT, 

18 HIRING AND RETENTION OF ETHNIC AND CULTURAL MI19 NORITIES AND WOMEN WITH THE DIVERSITY OF SKILLS, 

20 LANGUAGES AND EXPERTISE REFLECTIVE OF THE CUR21 RENT MISSION.—The Director of Central Intelligence 

22 shall carry out a pilot project under this section to test 

23 and evaluate alternative, innovative methods to recruit 

24 and hire for the intelligence community women and mi-
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1 norities with diverse ethnic and cultural backgrounds, 

2 skills, language proficiency, and expertise. 

3 (b) METHODS.—In carrying out the pilot project, the 

4 Director shall employ methods such as advertising in for5 eign language newspapers in the United States, site visits 

6 to institutions with a high percentage of students who 

7 study English as a second language, and other methods 

8 that are not used by the Director under the DCI Diversity 

9 Strategic Plan to increase diversity of officers and employ10 ees in the intelligence community. 

11 (c) DURATION OF PROJECT.—The Director shall 

12 carry out the project under this section for a 3-year pe13 riod. 

14 (d) REPORT.—Not later than 2 years after the date 

15 the Director implements the pilot project under this sec16 tion, the Director shall submit to Congress a report on 

17 the project. The report shall include—

18 (1) an assessment of the effectiveness of the 

19 project; and 

20 (2) recommendations on the continuation of the 

21 project as well as for improving the effectiveness of 

22 the project in meeting the goals of increasing the re23 cruiting and hiring of women and minorities within 

24 the intelligence community.
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1 (e) DIVERSITY PLAN.—(1) Not later than February 

2 15, 2004, the Director of Central Intelligence shall submit 

3 to Congress a report which describes the plan of the Direc4 tor, entitled the ‘‘DCI Diversity Strategic Plan’’, and any 

5 subsequent revision to that plan, to increase diversity of 

6 officers and employees in the intelligence community, in7 cluding the short- and long-term goals of the plan. The 

8 report shall also provide a detailed description of the 

9 progress that has been made by each element of the intel10 ligence community in implementing the plan. 

11 (2) In implementing the plan, the Director shall in12 corporate innovative methods for the recruitment and hir13 ing of women and minorities that the Director has deter14 mined to be effective from the pilot project carried out 

15 under this section. 

16 (f) DEFINITION.—In this section, the term ‘‘intel17 ligence community’’ has the meaning given that term in 

18 section 3(4) of the National Security Act of 1947 (50 

19 U.S.C. 401(4))). 
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1 Subtitle E—Reports and Technical 

2 Amendments 

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

4 THE NATIONAL COMMISSION FOR THE RE5 VIEW OF THE RESEARCH AND DEVELOPMENT 

6 PROGRAMS OF THE UNITED STATES INTEL7 LIGENCE COMMUNITY. 

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

9 the Intelligence Authorization Act for Fiscal Year 2003 

10 (Public Law 107–306; 50 U.S.C. 401 note; 116 Stat. 

11 2442) is amended by striking ‘‘September 1, 2003’’ and 

12 inserting ‘‘September 1, 2004’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 subsection (a) shall take effect as if included in the enact15 ment of section 1007 of the Intelligence Authorization Act 

16 for Fiscal Year 2003. 

17 SEC. 342. MODIFICATION OF VARIOUS REPORTS REQUIRED 

18 OF INTELLIGENCE COMMUNITY ELEMENTS. 

19 (a) REPORTS ON ACQUISITION OF TECHNOLOGY RE20 LATING TO WEAPONS OF MASS DESTRUCTION AND AD21 VANCED CONVENTIONAL MUNITIONS.—Subsection (b)(1) 

22 of section 721 of the Intelligence Authorization Act for 

23 Fiscal Year 1997 (Public Law 104–293; 110 Stat. 3474; 

24 50 U.S.C. 2366), as amended by section 811(b)(5)(C) of 

25 the Intelligence Authorization Act for Fiscal Year 2003 
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1 (Public Law 107–306; 116 Stat. 2424; 50 U.S.C. 2366), 

2 is amended by striking ‘‘a semiannual’’ and inserting ‘‘an 

3 annual’’. 

4 (b) PERIODIC AND SPECIAL REPORTS ON DISCLO5 SURE OF INTELLIGENCE INFORMATION TO UNITED NA6 TIONS.—Section 112(b)(1) of the National Security Act 

7 of 1947 (50 U.S.C. 404g(b)(1)) is amended by striking 

8 ‘‘semiannually’’ and inserting ‘‘annually’’. 

9 SEC. 343. TECHNICAL AMENDMENTS. 

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

11 112(d)(1) of the National Security Act of 1947 (50 U.S.C. 

12 404g(d)(1)) is amended by striking ‘‘section 103(c)(6)’’ 

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

14 (b) CENTRAL INTELLIGENCE AGENCY ACT OF

15 1949.—(1) Section 6 of the Central Intelligence Agency 

16 Act of 1949 (50 U.S.C. 403g) is amended by striking 

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

18 (2) Section 15 of such Act (50 U.S.C. 403o) is 

19 amended—

20 (A) in subsection (a)(1), by striking ‘‘special 

21 policemen of the General Services Administration 

22 perform under the first section of the Act entitled 

23 ‘An Act to authorize the Federal Works Adminis24 trator or officials of the Federal Works Agency duly 

25 authorized by him to appoint special policeman for 
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1 duty upon Federal property under the jurisdiction of 

2 the Federal Works Agency, and for other pur3 poses’ (40 U.S.C. 318),’’ and inserting ‘‘officers and 

4 agents of the Department of Homeland Security, as 

5 provided in section 1315(b)(2) of title 40, United 

6 States Code,’’; and 

7 (B) in subsection (b), by striking ‘‘the fourth 

8 section of the Act referred to in subsection (a) of 

9 this section (40 U.S.C. 318c)’’ and inserting ‘‘sec10 tion 1315(c)(2) of title 40, United States Code’’. 

11 (c) NATIONAL SECURITY AGENCY ACT OF 1959.—

12 Section 11 of the National Security Agency Act of 1959 

13 (50 U.S.C. 402 note) is amended—

14 (1) in subsection (a)(1), by striking ‘‘special po15 licemen of the General Services Administration per16 form under the first section of the Act entitled ‘An 

17 Act to authorize the Federal Works Administrator 

18 or officials of the Federal Works Agency duly au19 thorized by him to appoint special policeman for 

20 duty upon Federal property under the jurisdiction of 

21 the Federal Works Agency, and for other pur22 poses’ (40 U.S.C. 318)’’ and inserting ‘‘officers and 

23 agents of the Department of Homeland Security, as 

24 provided in section 1315(b)(2) of title 40, United 

25 States Code,’’; and
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1 (2) in subsection (b), by striking ‘‘the fourth 

2 section of the Act referred to in subsection (a) (40 

3 U.S.C. 318c)’’ and inserting ‘‘section 1315(c)(2) of 

4 title 40, United States Code’’. 

5 (d) INTELLIGENCE AUTHORIZATION ACT FOR FISCAL

6 YEAR 2003.—Section 343 of the Intelligence Authoriza7 tion Act for Fiscal Year 2003 (Public Law 107–306; 116 

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

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

10 103(c)(6) of the National Security Act of 1947 (50 

11 U.S.C. 403–3(c)(6))’’ and inserting ‘‘section 

12 103(c)(7) of the National Security Act of 1947 (50 

13 U.S.C. 403–3(c)(7))’’; and 

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

15 103(c)(6)’’ and inserting ‘‘section 103(c)(7)’’. 

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

17 the Enhanced Border Security and Visa Entry Reform Act 

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

19 1721(c)(3)(F)) is amended by striking ‘‘section 103(c)(6) 

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

21 3(c)(6))’’ and inserting ‘‘section 103(c)(7) of the National 

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

23 (f) FEDERAL INFORMATION SECURITY MANAGE24 MENT ACT OF 2002.—Section 3535(b)(1) of title 44, 

25 United States Code, as added by section 1001(b)(1) of the 
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1 Homeland Security Act of 2002 (Public Law 107–296), 

2 and section 3545(b)(1) of title 44, United States Code, 

3 as added by section 301(b)(1) of the E–Government Act 

4 of 2002 (Public Law 107–347), are each amended by in5 serting ‘‘or any other law’’ after ‘‘1978’’.

6 SEC. 344. REPORT ON LESSONS LEARNED FROM MILITARY 

7 OPERATIONS IN IRAQ. 

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

9 of the enactment of this Act, the Director of Central Intel10 ligence shall submit to the appropriate committees of Con11 gress a report on the intelligence lessons learned as a re12 sult of Operation Iraqi Freedom, including lessons relating 

13 to the following: 

14 (1) The tasking, collection, processing, exploi15 tation, analysis, and dissemination of intelligence. 

16 (2) Accuracy, timeliness, and objectivity of in17 telligence analysis. 

18 (3) Intelligence support to policymakers and 

19 members of the Armed Forces in combat. 

20 (4) Coordination of intelligence activities and 

21 operations with military operations. 

22 (5) Strengths and limitations of intelligence 

23 systems and equipment. 

24 (6) Such other matters as the Director con25 siders appropriate. 
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1 (b) RECOMMENDATIONS.—The report under sub2 section (a) shall include such recommendations on im3 provement in the matters described in subsection (a) as 

4 the Director considers appropriate. 

5 (c) APPROPRIATE COMMITTEES OF CONGRESS DE6 FINED.—In this section, the term ‘‘appropriate commit7 tees of Congress’’ means—

8 (1) the Permanent Select Committee on Intel9 ligence and the Committee on Armed Services of the 

10 House of Representatives; and 

11 (2) the Select Committee on Intelligence and 

12 the Committee on Armed Services of the Senate. 

13 SEC. 345. MODIFICATION OF TERRORIST IDENTIFICATION 

14 CLASSIFICATION SYSTEM. 

15 (a) CERTIFICATION REQUIREMENT FOR CONSOLIDA16 TION OF WATCH LISTS.—Subsection (g)(1) of section 343 

17 of the Intelligence Authorization Act for Fiscal Year 2003 

18 (Public Law 107–306; 116 Stat. 2399; 50 U.S.C. 404n2) 

19 is amended—

20 (1) by redesignating subparagraph (D) as sub21 paragraph (E); 

22 (2) by inserting after subparagraph (C) the fol23 lowing new subparagraph: 

24 ‘‘(D) Whether further consolidation or elimi25 nation of watch list databases in the departments 
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1 and agencies with access to the System would con2 tribute to the efficiency and effectiveness of the Sys3 tem in identifying individuals who are known or sus4 pected international terrorists.’’; and 

5 (3) in subparagraph (E), as so redesignated, by 

6 adding at the end the following: ‘‘If the certification 

7 under subparagraph (D) is in the positive, the steps 

8 required to consolidate or eliminate such watch 

9 lists.’’. 

10 (b) ESTABLISHMENT OF ADVISORY COUNCIL.—Sub11 section (b) of such section is amended by adding at the 

12 end the following new paragraph: 

13 ‘‘(4) The Director shall establish an advisory council 

14 comprised of experts in the field of civil liberties and pri15 vacy issues to advise the Director on issues of civil liberties 

16 and privacy as they relate to the maintenance of the Sys17 tem.’’. 

18 TITLE IV—CENTRAL 

19 INTELLIGENCE AGENCY 

20 SEC. 401. PROTECTION FROM TORT LIABILITY FOR CER21 TAIN CENTRAL INTELLIGENCE AGENCY PER22 SONNEL. 

23 (a) IN GENERAL.—Section 15 of the Central Intel24 ligence Agency Act of 1949 (50 U.S.C. 403o) is amended 

25 by adding at the end the following new subsection:
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1 ‘‘(d)(1) Notwithstanding any other provision of law, 

2 any Agency personnel designated by the Director under 

3 subsection (a) shall be deemed for purposes of chapter 171 

4 of title 28, United States Code, or any other provision of 

5 law relating to tort liability, to be acting within the scope 

6 of their office or employment if the Agency personnel take 

7 reasonable action, which may include the use of force, to—

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

9 the Agency personnel from a crime of violence; 

10 ‘‘(B) provide immediate assistance to an indi11 vidual who has suffered or who is threatened with 

12 bodily harm; or 

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

14 the Agency personnel reasonably believe to have 

15 committed a crime of violence in the presence of 

16 such personnel. 

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

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

19 United States Code.’’. 

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

21 added by subsection (a), shall not be construed as affect22 ing the authorities of the Attorney General under the Fed23 eral Employees Liability Reform and Tort Compensation 

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

25 2679(b), 2679(d)). 
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1 SEC. 402. REPEAL OF LIMITATION ON USE OF FUNDS IN 

2 CENTRAL SERVICES WORKING CAPITAL 

3 FUND. 

4 Section 21(f)(2) of the Central Intelligence Agency 

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

6 (1) in subparagraph (A), by striking ‘‘(A) Sub7 ject to subparagraph (B), the Director’’ and insert8 ing ‘‘The Director’’; and 

9 (2) by striking subparagraph (B).

10 TITLE V—DEPARTMENT OF DE11 FENSE INTELLIGENCE MAT12 TERS 

13 SEC. 501. USE OF FUNDS FOR COUNTERDRUG AND 

14 COUNTERTERRORISM ACTIVITIES FOR CO15 LOMBIA. 

16 (a) EXTENSION OF AUTHORITY.—Subsection (a) of 

17 section 501 of the Intelligence Authorization Act for Fis18 cal Year 2003 (Public Law 107–306; 116 Stat. 2404) is 

19 amended by striking ‘‘for fiscal years 2002 and 2003’’ and 

20 inserting ‘‘for each of fiscal years 2002 through 2005’’. 

21 (b) MODIFICATION.—(1) Subsection (e) of such sec22 tion is amended to read as follows: 

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

24 personnel, United States civilian employee or contractor 

25 engaged by the United States will participate in any com26 bat operation in connection with assistance made available 
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1 under this section, except for the purpose of acting to pro2 tect the life or the physical security of others, in self de3 fense, or during the course of search and rescue oper4 ations.’’. 

5 (c) TECHNICAL AMENDMENT.—Subsection (d) of 

6 such section is amended by striking ‘‘Sections 556, 567, 

7 and 568 of Public Law 107–115, section 8093 of the De8 partment of Defense Appropriations Act, 2002,’’ and in9 serting ‘‘Section 553 and the certification requirements of 

10 section 564(a)(2) of the Foreign Operations, Export Fi11 nancing, and Related Programs Appropriations Act, 2003 

12 (division E of Public Law 108–7; 117 Stat. 200, 205), 

13 and section 8093 of the Department of Defense Appro14 priations Act, 2003 (Public Law 107–248; 116 Stat. 

15 1558; 10 U.S.C. 182 note),’’. 

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

17 subsections (b) and (c) shall apply to assistance made 

18 available under such section 501 during fiscal years 2004 

19 and 2005.
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1 SEC. 502. AUTHORITY TO PROVIDE LIVING QUARTERS FOR 

2 CERTAIN STUDENTS IN COOPERATIVE AND 

3 SUMMER EDUCATION PROGRAMS OF THE NA4 TIONAL SECURITY AGENCY. 

5 Section 2195 of title 10, United States Code, is 

6 amended by adding at the end the following new sub7 section: 

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

9 may provide a qualifying employee of a defense laboratory 

10 of that Agency with living quarters at no charge, or at 

11 a rate or charge prescribed by the Director by regulation, 

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

13 ‘‘(2) In this subsection, the term ‘qualifying em14 ployee’ means a student who is employed at the National 

15 Security Agency under—

16 ‘‘(A) a Student Educational Employment Pro17 gram of the Agency conducted under this section or 

18 any other provision of law; or 

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

20 program of the Agency that meets the criteria for 

21 Federal cooperative or summer education programs 

22 prescribed by the Office of Personnel Management.’’.
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1 SEC. 503. AUTHORITY FOR INTELLIGENCE COMMUNITY 

2 ELEMENTS OF DEPARTMENT OF DEFENSE TO 

3 AWARD PERSONAL SERVICE CONTRACTS. 

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

5 10, United States Code, is amended by adding at the end 

6 the following new section: 

7 ‘‘§ 426. Personal services contracts: authority and 

8 limitations 

9 ‘‘(a) PERSONAL SERVICES.—(1) The Secretary of 

10 Defense may, notwithstanding section 3109 of title 5, 

11 enter into personal services contracts in the United States 

12 if the personal services directly support the mission of a 

13 defense intelligence component or counter-intelligence or14 ganization. 

15 ‘‘(2) The contracting officer for a personal services 

16 contract shall be responsible for ensuring that a personal 

17 services contract is the appropriate vehicle for carrying out 

18 the purpose of the contract. 

19 ‘‘(b) DEFINITION.—In this section, the term ‘defense 

20 intelligence component’ means a component of the Depart21 ment of Defense that is an element of the intelligence com22 munity, as defined in section 3(4) of the National Security 

23 Act of 1947 (50 U.S.C. 401a(4)).’’. 
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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of such subchapter is amended by adding 

3 at the end the following new item:

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

4 SEC. 504. PROTECTION OF CERTAIN NATIONAL SECURITY 

5 AGENCY PERSONNEL FROM TORT LIABILITY. 

6 Section 11 of the National Security Agency Act of 

7 1959 (50 U.S.C. 402 note) is amended by adding at the 

8 end the following new subsection: 

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

10 agency personnel designated by the Director of the Na11 tional Security Agency under subsection (a) shall be con12 sidered for purposes of chapter 171 of title 28, United 

13 States Code, or any other provision of law relating to tort 

14 liability, to be acting within the scope of their office or 

15 employment when such agency personnel take reasonable 

16 action, which may include the use of force, to—

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

18 such agency personnel from a crime of violence; 

19 ‘‘(B) provide immediate assistance to an indi20 vidual who has suffered or who is threatened with 

21 bodily harm; or 

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

23 such agency personnel reasonably believe to have 

24 committed a crime of violence in the presence of 

25 such agency personnel. 
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1 ‘‘(2) Paragraph (1) shall not affect the authorities 

2 of the Attorney General under section 2679(d)(1) of title 

3 28, United States Code. 

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

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

6 United States Code.’’.

7 SEC. 505. MEASUREMENT AND SIGNATURES INTELLIGENCE 

8 RESEARCH PROGRAM. 

9 (a) RESEARCH PROGRAM.—The Secretary of De10 fense, acting through the Director of the Defense Intel11 ligence Agency’s Directorate for MASINT and Technical 

12 Collection, shall carry out a program to incorporate the 

13 results of basic research on sensors into the measurement 

14 and signatures intelligence systems of the United States, 

15 to the extent the results of such research is applicable to 

16 such systems. 

17 (b) PROGRAM COMPONENTS.—The program under 

18 subsection (a) shall review and assess both basic research 

19 on sensors and technologies conducted by the United 

20 States Government and by non-governmental entities. In 

21 carrying out the program, the Director shall protect intel22 lectual property rights, maintain organizational flexibility, 

23 and establish research projects, funding levels, and poten24 tial benefits in an equitable manner through Directorate. 
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1 (c) ADVISORY PANEL.—(1) The Director shall estab2 lish an advisory panel to assist the Director in carrying 

3 out the program under subsection (a). 

4 (2) The advisory panel shall be headed by the Direc5 tor who shall determine the selection, review, and assess6 ment of the research projects under the program. 

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

8 advisory panel representatives of each entity of the 

9 MASINT community, and may appoint as such members 

10 representatives of national laboratories, universities, and 

11 private sector entities. 

12 (B) For purposes of this subsection the term 

13 ‘‘MASINT community’’ means academic, professional, in14 dustrial, and government entities that are committed to15 wards the advancement of the sciences in measurement 

16 and signatures intelligence. 

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

18 shall be established by the Director, but may not exceed 

19 a period of 5 consecutive years. 

20 (D) Members of the advisory panel may not receive 

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

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

23 in lieu of subsistence, in accordance with applicable provi24 sions under subchapter I of chapter 57 of title 5, United 

25 States Code. 
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1 (4) The Director may accept contributions from non2 governmental participants on the advisory panel to defray 

3 the expenses of the advisory panel.

Passed the House of Representatives June 27 (legislative day, June 26), 2003. 

Attest: JEFF TRANDAHL, 

Clerk. 
Calendar No. 184

108TH CONGRESS 

1ST SESSION H. R. 2417

AN ACT

To authorize appropriations for fiscal year 2004 for 

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

JUNE 27, 2003

Received; read twice and placed on the calendar