19–006

107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–789

INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 

2003

NOVEMBER 14, 2002.—Ordered to be printed 

Mr. GOSS, from the committee of conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 4628] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the Senate to the bill (H.R. 

4628), to authorize appropriations for fiscal year 2003 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, having met, after full and free conference, have 

agreed to recommend and do recommend to their respective Houses 

as follows: 

That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as 

follows: 

In lieu of the matter proposed to be inserted by the Senate 

amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

Authorization Act for Fiscal Year 2003’’. 

(b) TABLE OF CONTENTS.—The table of contents of 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. Authorization of emergency supplemental appropriations for fiscal year 

2002. 

Sec. 106. Additional authorizations of appropriations for intelligence for the war on 

terrorism. 

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Sec. 107. Specific authorization of funds for intelligence or intelligence-related activities for which fiscal year 2003 appropriations exceed amounts authorized. 

Sec. 108. Incorporation of reporting requirements. 

Sec. 109. Preparation and submittal of reports, reviews, studies, and plans relating 

to intelligence activities of Department of Defense or Department of Energy. 

TITLE II—CENTRAL INTELLIGENCE AGENCY RETIREMENT AND 

DISABILITY SYSTEM 

Sec. 201. Authorization of appropriations. 

TITLE III—GENERAL PROVISIONS 

Subtitle A—Recurring General Provisions 

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

Sec. 302. Restriction on conduct of intelligence activities. 

Sec. 303. Sense of Congress on intelligence community contracting. 

Subtitle B—Intelligence 

Sec. 311. Specificity of National Foreign Intelligence Program budget amounts for 

counterterrorism, counterproliferation, counternarcotics, and counterintelligence. 

Sec. 312. Prohibition on compliance with requests for information submitted by foreign governments. 

Sec. 313. National Virtual Translation Center. 

Subtitle C—Personnel 

Sec. 321. Standards and qualifications for the performance of intelligence activities. 

Sec. 322. Modification of excepted agency voluntary leave transfer authority. 

Sec. 323. Sense of Congress on diversity in the workforce of intelligence community 

agencies. 

Sec. 324. Annual report on hiring and retention of minority employees in the intelligence community. 

Sec. 325. Report on establishment of a Civilian Linguist Reserve Corps. 

Subtitle D—Education 

Sec. 331. Scholarships and work-study for pursuit of graduate degrees in science 

and technology. 

Sec. 332. Cooperative relationship between the National Security Education Program and the Foreign Language Center of the Defense Language Institute. 

Sec. 333. Establishment of National Flagship Language Initiative within the National Security Education Program. 

Sec. 334. Report on the National Security Education Program. 

Subtitle E—Terrorism 

Sec. 341. Foreign Terrorist Asset Tracking Center. 

Sec. 342. Semiannual report on financial intelligence on terrorist assets (FITA). 

Sec. 343. Terrorist Identification Classification System. 

Subtitle F—Other Matters 

Sec. 351. Additional one-year suspension of reorganization of Diplomatic Telecommunications Service Program Office. 

Sec. 352. Standardized transliteration of names into the Roman alphabet. 

Sec. 353. Definition of congressional intelligence committees in National Security 

Act of 1947. 

TITLE IV—CENTRAL INTELLIGENCE AGENCY 

Sec. 401. Two-year extension of Central Intelligence Agency Voluntary Separation 

Pay Act. 

Sec. 402. Implementation of compensation reform plan. 

TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES 

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

Sec. 502. Protection of operational files of the National Reconnaissance Office. 

Sec. 503. Eligibility of employees in Intelligence Senior Level positions for Presidential Rank Awards. 

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TITLE VI—NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE 

UNITED STATES. 

Sec. 601. Establishment of Commission. 

Sec. 602. Purposes. 

Sec. 603. Composition of Commission. 

Sec. 604. Functions of Commission. 

Sec. 605. Powers of Commission. 

Sec. 606. Nonapplicability of Federal Advisory Committee Act. 

Sec. 607. Staff of Commission. 

Sec. 608. Compensation and travel expenses. 

Sec. 609. Security clearances for Commission members and staff. 

Sec. 610. Reports of Commission; termination. 

Sec. 611. Funding. 

TITLE VII—INFORMATION SHARING 

Sec. 701. Short title. 

Sec. 702. Findings and sense of Congress. 

Sec. 703. Facilitating homeland security information sharing procedures. 

Sec. 704. Report. 

Sec. 705. Authorization of appropriations. 

Sec. 706. Coordination provision.

TITLE VIII—REPORTING REQUIREMENTS 

Subtitle A—Overdue Reports 

Sec. 801. Deadline for submittal of various overdue reports. 

Subtitle B—Submittal of Reports to Intelligence Committees 

Sec. 811. Dates for submittal of various annual and semiannual reports to the congressional intelligence committees. 

Subtitle C—Recurring Annual Reports 

Sec. 821. Annual report on threat of attack on the United States using weapons of 

mass destruction. 

Sec. 822. Annual report on covert leases. 

Sec. 823. Annual report on improvement of financial statements of certain elements 

of the intelligence community for auditing purposes. 

Sec. 824. Annual report on activities of Federal Bureau of Investigation personnel 

outside the United States. 

Sec. 825. Annual reports of inspectors general of the intelligence community on proposed resources and activities of their offices. 

Sec. 826. Annual report on counterdrug intelligence matters. 

Sec. 827. Annual report on foreign companies involved in the proliferation of weapons of mass destruction that raise funds in the United States capital 

markets. 

Subtitle D—Other Reports 

Sec. 831. Report on effect of country-release restrictions on allied intelligence-sharing relationships. 

Sec. 832. Evaluation of policies and procedures of Department of State on protection 

of classified information at department headquarters. 

Subtitle E—Repeal of Certain Report Requirements 

Sec. 841. Repeal of certain report requirements. 

TITLE IX—COUNTERINTELLIGENCE ACTIVITIES 

Sec. 901. Short title; purpose. 

Sec. 902. National Counterintelligence Executive. 

Sec. 903. National Counterintelligence Policy Board. 

Sec. 904. Office of the National Counterintelligence Executive. 

TITLE X—NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY 

Sec. 1001. Findings. 

Sec. 1002. National Commission for the Review of the Research and Development 

Programs of the United States Intelligence Community. 

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Sec. 1003. Powers of Commission. 

Sec. 1004. Staff of Commission. 

Sec. 1005. Compensation and travel expenses. 

Sec. 1006. Treatment of information relating to national security. 

Sec. 1007. Final report; termination. 

Sec. 1008. Assessments of final report. 

Sec. 1009. Inapplicability of certain administrative provisions. 

Sec. 1010. Funding. 

Sec. 1011. Definitions.

TITLE I—INTELLIGENCE ACTIVITIES 

SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 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 Department of the Army, the Department of the 

Navy, and the Department of the Air Force. 

(6) The Department of State. 

(7) The Department of the Treasury. 

(8) The Department of Energy. 

(9) The Federal Bureau of Investigation. 

(10) The National Reconnaissance Office. 

(11) The National Imagery and Mapping Agency. 

(12) 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, 2003, for the 

conduct of the intelligence and intelligence-related activities of the 

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

Schedule of Authorizations prepared to accompany the conference 

report on H.R. 4628 of the One Hundred Seventh Congress. 

(b) AVAILABILITY OF CLASSIFIED SCHEDULE OF AUTHORIZA- TIONS.—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 2003 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 

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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 2003 the 

sum of $158,254,000. Within such amount, funds identified in the 

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

for advanced research and development shall remain available until 

September 30, 2004. 

(b) AUTHORIZED PERSONNEL LEVELS.—The elements within the 

Intelligence Community Management Account of the Director of 

Central Intelligence are authorized 322 full-time personnel as of 

September 30, 2003. 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 2003 such additional 

amounts as are specified in the classified Schedule of Authorizations referred to in section 102(a). Such additional amounts 

for research and development shall remain available until September 30, 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, 

2003, 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 

2003 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), $34,100,000 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, 2004, and 

funds provided for procurement purposes shall remain available until September 30, 2005. 

(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). 

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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. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2002. 

(a) AUTHORIZATION.—Amounts authorized to be appropriated 

for fiscal year 2002 under section 101 of the Intelligence Authorization Act for Fiscal Year 2002 (Public Law 107–108) for the conduct 

of the intelligence activities of elements of the United States Government listed in such section are hereby increased, with respect to any 

such authorized amount, by the amount by which appropriations 

pursuant to such authorization were increased by the following: 

(1) The Emergency Supplemental Act, 2002 (contained in 

division B of Public Law 107–117), including section 304 of 

such Act (115 Stat. 2300). 

(2) The 2002 Supplemental Appropriations Act for Further 

Recovery From and Response To Terrorist Attacks on the 

United States (Public Law 107–206), for such amounts as are 

designated by Congress as an emergency requirement pursuant 

to section 251(b)(2)(A) of the Balanced Budget and Emergency 

Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)). 

(b) RATIFICATION.—For purposes of section 504 of the National 

Security Act of 1947 (50 U.S.C. 414), any obligation or expenditure 

of those amounts deemed to have been specifically authorized by the 

Acts referred to in subsection (a) is hereby ratified and confirmed.

SEC. 106. ADDITIONAL AUTHORIZATIONS OF APPROPRIATIONS FOR 

INTELLIGENCE FOR THE WAR ON TERRORISM. 

(a) IN GENERAL.—Subject to subsection (b), the amounts requested in the letter dated July 3, 2002, of the President to the 

Speaker of the House of Representatives, related to the Defense 

Emergency Response Fund and that are designated for the incremental costs of intelligence and intelligence-related activities for the 

war on terrorism are authorized. 

(b) LIMITATIONS.—The amounts referred to in subsection (a)—

(1) are authorized only for activities directly related to identifying, responding to, or protecting against acts or threatened 

acts of terrorism; 

(2) are not authorized to correct programmatic or fiscal deficiencies in major acquisition programs which will not achieve 

initial operational capabilities within two years of the date of 

the enactment of this Act; and 

(3) are not available until the end of the 10-day period that 

begins on the date written notice is provided to the Select Committee on Intelligence and the Committee on Appropriations of 

the Senate and the Permanent Select Committee on Intelligence 

and the Committee on Appropriations of the House of Representatives. 

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SEC. 107. SPECIFIC AUTHORIZATION OF FUNDS FOR INTELLIGENCE 

OR INTELLIGENCE-RELATED ACTIVITIES FOR WHICH FISCAL YEAR 2003 APPROPRIATIONS EXCEED AMOUNTS AUTHORIZED. 

Funds appropriated for an intelligence or intelligence-related 

activity for fiscal year 2003 in excess of the amount specified for 

such activity in the classified Schedule of Authorizations prepared 

to accompany this Act shall be deemed to be specifically authorized 

by Congress for purposes of section 504(a)(3) of the National Security Act of 1947 (50 U.S.C. 414(a)(3)). 

SEC. 108. INCORPORATION OF REPORTING REQUIREMENTS. 

(a) IN GENERAL.—Each requirement to submit a report to the 

congressional intelligence committees that is included in the joint 

explanatory statement to accompany the conference report on the bill 

H.R. 4628 of the One Hundred Seventh Congress, or in the classified annex to this Act, is hereby incorporated into this Act, and is 

hereby made a requirement in law. 

(b) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED.—In 

this section, the term ‘‘congressional intelligence committees’’

means—

(1) the Select Committee on Intelligence of the Senate; and 

(2) the Permanent Select Committee on Intelligence of the 

House of Representatives. 

SEC. 109. PREPARATION AND SUBMITTAL OF REPORTS, REVIEWS, 

STUDIES, AND PLANS RELATING TO INTELLIGENCE ACTIVITIES OF DEPARTMENT OF DEFENSE OR DEPARTMENT 

OF ENERGY. 

(a) CONSULTATION IN PREPARATION.—(1) The Director of Central Intelligence shall ensure that any report, review, study, or plan 

required to be prepared or conducted by a provision of this Act, including a provision of the classified Schedule of Authorizations referred to in section 102(a) or the classified annex to this Act, that 

involves the intelligence or intelligence-related activities of the Department of Defense or the Department of Energy is prepared or 

conducted in consultation with the Secretary of Defense or the Secretary of Energy, as appropriate. 

(2) The Secretary of Defense or the Secretary of Energy may 

carry out any consultation required by this subsection through an 

official of the Department of Defense or the Department of Energy, 

as the case may be, designated by such Secretary for that purpose. 

(b) SUBMITTAL.—Any report, review, study, or plan referred to 

in subsection (a) shall be submitted, in addition to any other committee of Congress specified for submittal in the provision concerned, to the following committees of Congress: 

(1) The Committees on Armed Services and Appropriations 

and the Select Committee on Intelligence of the Senate. 

(2) The Committees on Armed Services and Appropriations 

and the Permanent Select Committee on Intelligence of the 

House of Representatives. 

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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 2003 

the sum of $222,500,000. 

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 authorized by the Constitution or the 

laws of the United States. 

SEC. 303. SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY CONTRACTING. 

It is the sense of Congress that the Director of Central Intelligence should continue to direct that elements of the intelligence 

community, whenever compatible with the national security interests of the United States and consistent with operational and security concerns related to the conduct of intelligence activities, and 

where fiscally sound, should competitively award contracts in a 

manner that maximizes the procurement of products properly designated as having been made in the United States. 

Subtitle B—Intelligence 

SEC. 311. SPECIFICITY OF NATIONAL FOREIGN INTELLIGENCE PROGRAM BUDGET AMOUNTS FOR COUNTERTERRORISM, 

COUNTERPROLIFERATION, COUNTERNARCOTICS, AND 

COUNTERINTELLIGENCE. 

(a) IN GENERAL.—Title V of the National Security Act of 1947 

(50 U.S.C. 413 et seq.) is amended by adding at the end the following new section: 

‘‘SPECIFICITY OF NATIONAL FOREIGN INTELLIGENCE PROGRAM BUDGET

AMOUNTS FOR COUNTERTERRORISM, COUNTERPROLIFERATION, 

COUNTERNARCOTICS, AND COUNTERINTELLIGENCE

‘‘SEC. 506. (a) IN GENERAL.—The budget justification materials 

submitted to Congress in support of the budget of the President for 

a fiscal year that is submitted to Congress under section 1105(a) of 

title 31, United States Code, shall set forth separately the aggregate 

amount requested for that fiscal year for the National Foreign Intelligence Program for each of the following: 

‘‘(1) Counterterrorism.

‘‘(2) Counterproliferation. 

‘‘(3) Counternarcotics. 

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‘‘(4) Counterintelligence. ‘‘(b) ELECTION OF CLASSIFIED OR UNCLASSIFIED FORM.— Amounts set forth under subsection (a) may be set forth in unclassified form or classified form, at the election of the Director of Central 

Intelligence.’’. (b) CLERICAL AMENDMENT.—The table of sections for that Act is 

amended by inserting after the item relating to section 505 the following new item:

‘‘Sec. 506. Specificity of National Foreign Intelligence Program budget amounts for 

counterterrorism, counterproliferation, counternarcotics, and counterintelligence.’’.

SEC. 312. PROHIBITION ON COMPLIANCE WITH REQUESTS FOR INFORMATION SUBMITTED BY FOREIGN GOVERNMENTS. 

Section 552(a)(3) of title 5, United States Code, is amended— (1) in subparagraph (A) by inserting ‘‘and except as provided in subparagraph (E),’’ after ‘‘of this subsection,’’; and 

(2) by adding at the end the following: ‘‘(E) An agency, or part of an agency, that is an element of the 

intelligence community (as that term is defined in section 3(4) of the 

National Security Act of 1947 (50 U.S.C. 401a(4))) shall not make 

any record available under this paragraph to— ‘‘(i) any government entity, other than a State, territory, 

commonwealth, or district of the United States, or any subdivision thereof; or ‘‘(ii) a representative of a government entity described in 

clause (i).’’. 

SEC. 313. NATIONAL VIRTUAL TRANSLATION CENTER. 

(a) ESTABLISHMENT.—The Director of Central Intelligence, acting as the head of the intelligence community, shall establish in the 

intelligence community an element with the function of connecting 

the elements of the intelligence community engaged in the acquisition, storage, translation, or analysis of voice or data in digital 

form. 

(b) DESIGNATION.—The element established under subsection (a) 

shall be known as the National Virtual Translation Center. 

(c) ADMINISTRATIVE MATTERS.—(1) The Director shall retain direct supervision and control over the element established under subsection (a).

(2) The element established under subsection (a) shall connect 

elements of the intelligence community utilizing the most current 

available information technology that is applicable to the function 

of the element. 

(d) DEADLINE FOR ESTABLISHMENT.—The element required by 

subsection (a) shall be established as soon as practicable after the 

date of the enactment of this Act, but not later than 90 days after 

that date. 

Subtitle C—Personnel 

SEC. 321. STANDARDS AND QUALIFICATIONS FOR THE PERFORMANCE 

OF INTELLIGENCE ACTIVITIES. 

Section 104 of the National Security Act of 1947 (50 U.S.C. 

403–4) is amended— (1) by redesignating subsection (g) as subsection (h); and 

(2) by inserting after subsection (f) the following new subsection (g): 

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‘‘(g) STANDARDS AND QUALIFICATIONS FOR PERFORMANCE OF IN- TELLIGENCE ACTIVITIES.—The Director, acting as the head of the intelligence community, shall, in consultation with the heads of effected agencies, develop standards and qualifications for persons engaged in the performance of intelligence activities within the intelligence community.’’. 

SEC. 322. MODIFICATION OF EXCEPTED AGENCY VOLUNTARY LEAVE 

TRANSFER AUTHORITY. 

(a) IN GENERAL.—Section 6339 of title 5, United States Code, 

is amended— (1) by striking subsection (b); 

(2) by redesignating subsection (c) as subsection (b); and 

(3) by inserting after subsection (b) (as so redesignated by 

paragraph (2)) the following: 

‘‘(c)(1) Notwithstanding any provision of subsection (b), the 

head of an excepted agency may, at his sole discretion, by regulation 

establish a program under which an individual employed in or 

under such excepted agency may participate in a leave transfer program established under the provisions of this subchapter outside of 

this section, including provisions permitting the transfer of annual 

leave accrued or accumulated by such employee to, or permitting 

such employee to receive transferred leave from, an employee of any 

other agency (including another excepted agency having a program 

under this subsection). ‘‘(2) To the extent practicable and consistent with the protection 

of intelligence sources and methods, any program established under 

paragraph (1) shall be consistent with the provisions of this subchapter outside of this section and with any regulations issued by 

the Office of Personnel Management implementing this subchapter.’’. (b) CONFORMING AMENDMENTS.—Section 6339 of such title is 

amended—

(1) in paragraph (2) of subsection (b) (as so redesignated by 

subsection (a)(2)), by striking ‘‘under this section’’ and inserting ‘‘under this subsection’’; and 

(2) in subsection (d), by striking ‘‘of Personnel Management’’. 

SEC. 323. SENSE OF CONGRESS ON DIVERSITY IN THE WORKFORCE OF 

INTELLIGENCE COMMUNITY AGENCIES. 

(a) FINDINGS.—Congress finds the following: 

(1) The United States is engaged in a war against terrorism that requires the active participation of the intelligence 

community. 

(2) Certain intelligence agencies, among them the Federal 

Bureau of Investigation and the Central Intelligence Agency, 

have announced that they will be hiring several hundred new 

agents to help conduct the war on terrorism. 

(3) Former Directors of the Federal Bureau of Investigation, 

the Central Intelligence Agency, the National Security Agency, 

and the Defense Intelligence Agency have stated that a more diverse intelligence community would be better equipped to gather 

and analyze information on diverse communities. 

(4) The Central Intelligence Agency and the National Security Agency were authorized to establish an undergraduate 

training program for the purpose of recruiting and training minority operatives in 1987. 

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(5) The Defense Intelligence Agency was authorized to establish an undergraduate training program for the purpose of 

recruiting and training minority operatives in 1988. 

(6) The National Imagery and Mapping Agency was authorized to establish an undergraduate training program for 

the purpose of recruiting and training minority operatives in 

2000. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that— (1) the Director of the Federal Bureau of Investigation (with 

respect to the intelligence and intelligence-related activities of 

the Bureau), the Director of Central Intelligence, the Director of 

the National Security Agency, and the Director of the Defense 

Intelligence Agency should make the creation of a more diverse 

workforce a priority in hiring decisions; and 

(2) the Director of Central Intelligence, the Director of the 

National Security Agency, the Director of the Defense Intelligence Agency, and the Director of the National Imagery and 

Mapping Agency should increase their minority recruitment efforts through the undergraduate training program provided for 

under law. 

SEC. 324. ANNUAL REPORT ON HIRING AND RETENTION OF MINORITY 

EMPLOYEES IN THE INTELLIGENCE COMMUNITY. 

Section 114 of the National Security Act of 1947 (50 U.S.C. 

404i) is amended— (1) by redesignating subsection (c) as subsection (d); and 

(2) by inserting after subsection (b) the following new subsection: 

‘‘(c) ANNUAL REPORT ON HIRING AND RETENTION OF MINORITY

EMPLOYEES.—(1) The Director of Central Intelligence shall, on an 

annual basis, submit to Congress a report on the employment of covered persons within each element of the intelligence community for 

the preceding fiscal year. 

‘‘(2) Each such report shall include disaggregated data by category of covered person from each element of the intelligence community on the following: 

‘‘(A) Of all individuals employed in the element during the 

fiscal year involved, the aggregate percentage of such individuals who are covered persons. 

‘‘(B) Of all individuals employed in the element during the 

fiscal year involved at the levels referred to in clauses (i) and 

(ii), the percentage of covered persons employed at such levels: 

‘‘(i) Positions at levels 1 through 15 of the General 

Schedule. 

‘‘(ii) Positions at levels above GS–15. 

‘‘(C) Of all individuals hired by the element involved during the fiscal year involved, the percentage of such individuals 

who are covered persons. 

‘‘(3) Each such report shall be submitted in unclassified form, 

but may contain a classified annex. 

‘‘(4) Nothing in this subsection shall be construed as providing 

for the substitution of any similar report required under another 

provision of law. 

‘‘(5) In this subsection, the term ‘covered persons’ means—

‘‘(A) racial and ethnic minorities; 

‘‘(B) women; and 

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‘‘(C) individuals with disabilities.’’. 

SEC. 325. REPORT ON ESTABLISHMENT OF A CIVILIAN LINGUIST RESERVE CORPS. 

(a) REPORT.—The Secretary of Defense, acting through the Director of the National Security Education Program, shall prepare a 

report on the feasibility of establishing a Civilian Linguist Reserve 

Corps comprised of individuals with advanced levels of proficiency 

in foreign languages who are United States citizens who would be 

available upon a call of the President to perform such service or duties with respect to such foreign languages in the Federal Government as the President may specify. In preparing the report, the Secretary shall consult with such organizations having expertise in 

training in foreign languages as the Secretary determines appropriate. 

(b) MATTERS CONSIDERED.— (1) IN GENERAL.—In conducting the study, the Secretary 

shall develop a proposal for the structure and operations of the 

Civilian Linguist Reserve Corps. The proposal shall establish 

requirements for performance of duties and levels of proficiency 

in foreign languages of the members of the Civilian Linguist 

Reserve Corps, including maintenance of language skills and 

specific training required for performance of duties as a linguist 

of the Federal Government, and shall include recommendations 

on such other matters as the Secretary determines appropriate. 

(2) CONSIDERATION OF USE OF DEFENSE LANGUAGE INSTI- TUTE AND LANGUAGE REGISTRIES.—In developing the proposal 

under paragraph (1), the Secretary shall consider the appropriateness of using— (A) the Defense Language Institute to conduct testing 

for language skills proficiency and performance, and to 

provide language refresher courses; and 

(B) foreign language skill registries of the Department 

of Defense or of other agencies or departments of the United 

States to identify individuals with sufficient proficiency in 

foreign languages. 

(3) CONSIDERATION OF THE MODEL OF THE RESERVE COMPO- NENTS OF THE ARMED FORCES.—In developing the proposal 

under paragraph (1), the Secretary shall consider the provisions 

of title 10, United States Code, establishing and governing service in the Reserve Components of the Armed Forces, as a model 

for the Civilian Linguist Reserve Corps. 

(c) COMPLETION OF REPORT.—Not later than 6 months after the 

date of the enactment of this Act, the Secretary shall submit to Congress the report prepared under subsection (a). 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary of Defense $300,000 to carry out 

this section. 

Subtitle D—Education 

SEC. 331. SCHOLARSHIPS AND WORK-STUDY FOR PURSUIT OF GRADUATE DEGREES IN SCIENCE AND TECHNOLOGY. 

(a) PROGRAM AUTHORIZED.—The National Security Act of 1947 

is amended—

(1) by redesignating title X as title XI; 

(2) by redesignating section 1001 as section 1101; and 

13

(3) by inserting after title IX the following new title X: 

‘‘TITLE X—EDUCATION IN SUPPORT OF NATIONAL 

INTELLIGENCE 

‘‘SCHOLARSHIPS AND WORK-STUDY FOR PURSUIT OF GRADUATE

DEGREES IN SCIENCE AND TECHNOLOGY

‘‘SEC. 1001. (a) PROGRAM AUTHORIZED.—The Director of Central Intelligence may carry out a program to provide scholarships 

and work-study for individuals who are pursuing graduate degrees 

in fields of study in science and technology that are identified by the 

Director as appropriate to meet the future needs of the intelligence 

community for qualified scientists and engineers. ‘‘(b) ADMINISTRATION.—If the Director carries out the program 

under subsection (a), the Director shall administer the program 

through the Assistant Director of Central Intelligence for Administration. ‘‘(c) IDENTIFICATION OF FIELDS OF STUDY.—If the Director carries out the program under subsection (a), the Director shall identify 

fields of study under subsection (a) in consultation with the other 

heads of the elements of the intelligence community. ‘‘(d) ELIGIBILITY FOR PARTICIPATION.—An individual eligible to 

participate in the program is any individual who— ‘‘(1) either— ‘‘(A) is an employee of the intelligence community; or 

‘‘(B) meets criteria for eligibility for employment in the 

intelligence community that are established by the Director; 

‘‘(2) is accepted in a graduate degree program in a field of 

study in science or technology identified under subsection (a); 

and ‘‘(3) is eligible for a security clearance at the level of Secret 

or above. 

‘‘(e) REGULATIONS.—If the Director carries out the program 

under subsection (a), the Director shall prescribe regulations for 

purposes of the administration of this section.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for the National Security Act of 1947 is amended by striking the items relating to title X and section 1001 and inserting the following new 

items:

‘‘TITLE X—EDUCATION IN SUPPORT OF NATIONAL INTELLIGENCE 

‘‘Sec. 1001. Scholarships and work-study for pursuit of graduate degrees in science 

and technology. 

‘‘TITLE XI—OTHER PROVISIONS 

‘‘Sec. 1101. Applicability to United States intelligence activities of Federal laws implementing international treaties and agreements.’’.

SEC. 332. COOPERATIVE RELATIONSHIP BETWEEN THE NATIONAL SECURITY EDUCATION PROGRAM AND THE FOREIGN LANGUAGE CENTER OF THE DEFENSE LANGUAGE INSTITUTE. 

Section 802 of the David L. Boren National Security Education 

Act of 1991 (50 U.S.C. 1902) is amended by adding at the end the 

following new subsection: ‘‘(h) USE OF AWARDS TO ATTEND THE FOREIGN LANGUAGE CEN- TER OF THE DEFENSE LANGUAGE INSTITUTE.—(1) The Secretary 

shall provide for the admission of award recipients to the Foreign 

14

Language Center of the Defense Language Institute (hereinafter in 

this subsection referred to as the ‘Center’). An award recipient may 

apply a portion of the applicable scholarship or fellowship award 

for instruction at the Center on a space-available basis as a Department of Defense sponsored program to defray the additive instructional costs. ‘‘(2) Except as the Secretary determines necessary, an award recipient who receives instruction at the Center shall be subject to the 

same regulations with respect to attendance, discipline, discharge, 

and dismissal as apply to other persons attending the Center. ‘‘(3) In this subsection, the term ‘award recipient’ means an undergraduate student who has been awarded a scholarship under 

subsection (a)(1)(A) or a graduate student who has been awarded a 

fellowship under subsection (a)(1)(B) who— ‘‘(A) is in good standing; 

‘‘(B) has completed all academic study in a foreign country, 

as provided for under the scholarship or fellowship; and ‘‘(C) would benefit from instruction provided at the Center.’’. 

SEC. 333. ESTABLISHMENT OF NATIONAL FLAGSHIP LANGUAGE INITIATIVE WITHIN THE NATIONAL SECURITY EDUCATION PROGRAM. 

(a) NATIONAL FLAGSHIP LANGUAGE INITIATIVE.— (1) EXPANSION OF GRANT PROGRAM AUTHORITY.—Subsection 

(a)(1) of section 802 of the David L. Boren National Security 

Education Act of 1991 (50 U.S.C. 1902) is amended— (A) by striking ‘‘and’’ at the end of subparagraph 

(B)(ii); 

(B) by striking the period at the end of subparagraph 

(C) and inserting ‘‘; and’’; and 

(C) by adding at the end the following new subparagraph: ‘‘(D) awarding grants to institutions of higher education to carry out activities under the National Flagship 

Language Initiative (described in subsection (i)).’’. 

(2) PROVISIONS OF NATIONAL FLAGSHIP LANGUAGE INITIATIVE.—Such section, as amended by section 332, is further 

amended by adding at the end the following new subsection: 

‘‘(i) NATIONAL FLAGSHIP LANGUAGE INITIATIVE.—(1) Under the 

National Flagship Language Initiative, institutions of higher education shall establish, operate, or improve activities designed to 

train students in programs in a range of disciplines to achieve advanced levels of proficiency in those foreign languages that the Secretary identifies as being the most critical in the interests of the national security of the United States. 

‘‘(2) An undergraduate student who has been awarded a scholarship under subsection (a)(1)(A) or a graduate student who has 

been awarded a fellowship under subsection (a)(1)(B) may participate in the activities carried out under the National Flagship Language Initiative. 

‘‘(3) An institution of higher education that receives a grant 

pursuant to subsection (a)(1)(D) shall give special consideration to 

applicants who are employees of the Federal Government. 

‘‘(4) For purposes of this subsection, the Foreign Language Center of the Defense Language Institute and any other educational inVerDate 0ct 31 2002 06:00 Nov 16, 2002 Jkt 019006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6603 E:\HR\OC\HR789.XXX HR789
15

stitution that provides training in foreign languages operated by the 

Department of Defense or an agency in the intelligence community 

is deemed to be an institution of higher education, and may carry 

out the types of activities permitted under the National Flagship 

Language Initiative.’’. 

(3) INAPPLICABILITY OF FUNDING ALLOCATION RULES.—Subsection (a)(2) of such section is amended by adding at the end 

the following flush sentences:

‘‘The funding allocation under this paragraph shall not apply 

to grants under paragraph (1)(D) for the National Flagship 

Language Initiative described in subsection (i). For the authorization of appropriations for the National Flagship Language 

Initiative, see section 811.’’. 

(4) BOARD REQUIREMENT.—Section 803(d)(4) of such Act 

(50 U.S.C. 1903(d)(4)) is amended—

(A) by striking ‘‘and’’ at the end of subparagraph (C); 

(B) by striking the period at the end of subparagraph 

(D) and inserting ‘‘; and’’; and 

(C) by adding at the end the following new subparagraph: 

‘‘(E) which foreign languages are critical to the national security interests of the United States for purposes of 

section 802(a)(1)(D) (relating to grants for the National 

Flagship Language Initiative).’’. 

(b) FUNDING.—The David L. Boren National Security Education Act of 1991 (50 U.S.C. 1901 et seq.) is amended by adding 

at the end the following new section: 

‘‘SEC. 811. ADDITIONAL ANNUAL AUTHORIZATION OF APPROPRIATIONS. 

‘‘(a) IN GENERAL.—In addition to amounts that may be made 

available to the Secretary under the Fund for a fiscal year, there is 

authorized to be appropriated to the Secretary for each fiscal year, 

beginning with fiscal year 2003, $10,000,000, to carry out the grant 

program for the National Flagship Language Initiative under section 802(a)(1)(D). 

‘‘(b) AVAILABILITY OF APPROPRIATED FUNDS.—Amounts appropriated pursuant to the authorization of appropriations under subsection (a) shall remain available until expended.’’. 

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

shall take effect on the date the Secretary of Defense submits the report required under section 334 of this Act and notifies the appropriate committees of Congress (as defined in subsection (c) of that 

section) that the programs carried out under the David L. Boren 

National Security Education Act of 1991 are being managed in a 

fiscally and programmatically sound manner. 

(d) CONSTRUCTION.—Nothing in this section shall be construed 

as affecting any program or project carried out under the David L. 

Boren National Security Education Act of 1991 as in effect on the 

date that precedes the date of the enactment of this Act. 

SEC. 334. REPORT ON THE NATIONAL SECURITY EDUCATION PROGRAM. 

(a) IN GENERAL.—Not later than 180 days after the date of the 

enactment of this Act, the Secretary of Defense shall submit to the 

appropriate committees of Congress a report on the matters deVerDate 0ct 31 2002 06:00 Nov 16, 2002 Jkt 019006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6603 E:\HR\OC\HR789.XXX HR789
16

scribed in subsection (b) with respect to the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1901 et seq.). 

(b) COVERED MATTERS.—The matters described in this subsection are as follows: 

(1) EFFECTIVENESS OF PROGRAM.—An evaluation of the National Security Education Program, including an assessment of 

the effectiveness of the program in meeting its goals and an assessment of the administrative costs of the program in relation 

to the amounts of scholarships, fellowships, and grants awarded. 

(2) CONVERSION OF FUNDING.—An assessment of the advisability of converting funding of the National Security Education 

Program from funding through the National Security Education Trust Fund under section 804 of that Act (50 U.S.C. 

1904) to funding through appropriations. 

(3) RECOMMENDATIONS.—On any matter covered by paragraph (1) or (2), such recommendations for legislation with respect to such matter as the Secretary considers appropriate. 

(c) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In this 

section, the term ‘‘appropriate committees of Congress’’ means—

(1) the Select Committee on Intelligence and the Committees on Armed Services and Appropriations of the Senate; and 

(2) the Permanent Select Committee on Intelligence and the 

Committees on Armed Services and Appropriations of the House 

of Representatives. 

Subtitle E—Terrorism 

SEC. 341. FOREIGN TERRORIST ASSET TRACKING CENTER. 

(a) ESTABLISHMENT.—The Director of Central Intelligence, acting as the head of the intelligence community, shall establish in the 

Central Intelligence Agency an element responsible for conducting 

all-source intelligence analysis of information relating to the financial capabilities, practices, and activities of individuals, groups, and 

nations associated with international terrorism in their activities relating to international terrorism. 

(b) DESIGNATION.—The element established under subsection (a) 

shall be known as the Foreign Terrorist Asset Tracking Center. 

(c) DEADLINE FOR ESTABLISHMENT.—The element required by 

subsection (a) shall be established as soon as practicable after the 

date of the enactment of this Act, but not later than 90 days after 

that date. 

SEC. 342. SEMIANNUAL REPORT ON FINANCIAL INTELLIGENCE ON 

TERRORIST ASSETS (FITA). 

(a) SEMIANNUAL REPORT.—

(1) IN GENERAL.—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: 

‘‘SEMIANNUAL REPORT ON FINANCIAL INTELLIGENCE ON TERRORIST

ASSETS

‘‘SEC. 118. (a) SEMIANNUAL REPORT.—On a semiannual basis, 

the Secretary of the Treasury (acting through the head of the Office 

of Intelligence Support) shall submit a report to the appropriate 

congressional committees that fully informs the committees conVerDate 0ct 31 2002 06:00 Nov 16, 2002 Jkt 019006 PO 00000 Frm 00016 Fmt 6659 Sfmt 6603 E:\HR\OC\HR789.XXX HR789
17

cerning operations against terrorist financial networks. Each such 

report shall include with respect to the preceding six-month period—

‘‘(1) the total number of asset seizures, designations, and 

other actions against individuals or entities found to have engaged in financial support of terrorism;

‘‘(2) the total number of applications for asset seizure and 

designations of individuals or entities suspected of having engaged in financial support of terrorist activities that were 

granted, modified, or denied; 

‘‘(3) the total number of physical searches of offices, residences, or financial records of individuals or entities suspected 

of having engaged in financial support for terrorist activity; 

and 

‘‘(4) whether the financial intelligence information seized in 

these cases has been shared on a full and timely basis with all 

departments, agencies, and other entities of the United States 

Government involved in intelligence activities participating in 

the Foreign Terrorist Asset Tracking Center. 

‘‘(b) IMMEDIATE NOTIFICATION FOR EMERGENCY DESIGNATION.—

In the case of a designation of an individual or entity, or the assets 

of an individual or entity, as having been found to have engaged 

in terrorist activities, the Secretary of the Treasury shall report such 

designation within 24 hours of such a designation to the appropriate congressional committees. 

‘‘(c) SUBMITTAL DATE OF REPORTS TO CONGRESSIONAL INTELLIGENCE COMMITTEES.—In the case of the reports required to be 

submitted under subsection (a) to the congressional intelligence committees, the submittal dates for such reports shall be as provided in 

section 507. 

‘‘(d) APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.—In 

this section, the term ‘appropriate congressional committees’ means 

the following: 

‘‘(1) The Permanent Select Committee on Intelligence, the 

Committee on Appropriations, and the Committee on Financial 

Services of the House of Representatives. 

‘‘(2) The Select Committee on Intelligence, the Committee on 

Appropriations, and the Committee on Banking, Housing, and 

Urban Affairs of the Senate.’’. 

(2) CLERICAL AMENDMENT.—The table of contents contained 

in the first section of such Act is amended by inserting after the 

item relating to section 117 the following new item:

‘‘Sec. 118. Semiannual report on financial intelligence on terrorist assets.’’.

(b) CONFORMING AMENDMENT.—Section 501(f) of the National 

Security Act of 1947 (50 U.S.C. 413(f)) is amended by inserting before the period the following: ‘‘, and includes financial intelligence 

activities’’. 

SEC. 343. TERRORIST IDENTIFICATION CLASSIFICATION SYSTEM. 

(a) REQUIREMENT.—(1) The Director of Central Intelligence, acting as head of the Intelligence Community, shall— (A) establish and maintain a list of individuals who are 

known or suspected international terrorists, and of organizations that are known or suspected international terrorist organizations; and 

18

(B) ensure that pertinent information on the list is shared 

with the departments, agencies, and organizations described by 

subsection (c). 

(2) The list under paragraph (1), and the mechanisms for sharing information on the list, shall be known as the ‘‘Terrorist Identification Classification System’’. (b) ADMINISTRATION.—(1) The Director shall prescribe requirements for the inclusion of an individual or organization on the list 

required by subsection (a), and for the deletion or omission from the 

list of an individual or organization currently on the list. 

(2) The Director shall ensure that the information utilized to determine the inclusion, or deletion or omission, of an individual or 

organization on or from the list is derived from all-source intelligence. 

(3) The Director shall ensure that the list is maintained in accordance with existing law and regulations governing the collection, 

storage, and dissemination of intelligence concerning United States 

persons. 

(c) INFORMATION SHARING.—Subject to section 103(c)(6) of the 

National Security Act of 1947 (50 U.S.C. 403–3(c)(6)), relating to the 

protection of intelligence sources and methods, the Director shall 

provide for the sharing of the list, and information on the list, with 

such departments and agencies of the Federal Government, State 

and local government agencies, and entities of foreign governments 

and international organizations as the Director considers appropriate. 

(d) REPORTING AND CERTIFICATION.—(1) The Director shall review on an annual basis the information provided by various departments and agencies for purposes of the list under subsection (a) 

in order to determine whether or not the information so provided is 

derived from the widest possible range of intelligence available to 

such departments and agencies. 

(2) The Director shall, as a result of each review under paragraph (1), certify whether or not the elements of the intelligence community responsible for the collection of intelligence related to the list 

have provided information for purposes of the list that is derived 

from the widest possible range of intelligence available to such department and agencies. 

(e) REPORT ON CRITERIA FOR INFORMATION SHARING.—(1) Not 

later then March 1, 2003, the Director shall submit to the congressional intelligence committees a report describing the criteria used 

to determine which types of information on the list required by subsection (a) are to be shared, and which types of information are not 

to be shared, with various departments and agencies of the Federal 

Government, State and local government agencies, and entities of 

foreign governments and international organizations. 

(2) The report shall include a description of the circumstances 

in which the Director has determined that sharing information on 

the list with the departments and agencies of the Federal Government, and of State and local governments, described by subsection 

(c) would be inappropriate due to the concerns addressed by section 

103(c)(6) of the National Security Act of 1947, relating to the protection of sources and methods, and any instance in which the sharing 

of information on the list has been inappropriate in light of such 

concerns. 

19

(f) SYSTEM ADMINISTRATION REQUIREMENTS.—(1) The Director 

shall, to the maximum extent practicable, ensure the interoperability 

of the Terrorist Identification Classification System with relevant 

information systems of the departments and agencies of the Federal 

Government, and of State and local governments, described by subsection (c). 

(2) The Director shall ensure that the System utilizes technologies that are effective in aiding the identification of individuals 

in the field. 

(g) REPORT ON STATUS OF SYSTEM.—(1) Not later than one year 

after the date of the enactment of this Act, the Director shall, in consultation with the Director of Homeland Security, submit to the congressional intelligence committees a report on the status of the Terrorist Identification Classification System. The report shall contain 

a certification on the following: 

(A) Whether the System contains the intelligence information necessary to facilitate the contribution of the System to the 

domestic security of the United States. 

(B) Whether the departments and agencies having access to 

the System have access in a manner that permits such departments and agencies to carry out appropriately their domestic security responsibilities. 

(C) Whether the System is operating in a manner that 

maximizes its contribution to the domestic security of the 

United States.

(D) If a certification under subparagraph (A), (B), or (C) is 

in the negative, the modifications or enhancements of the System necessary to ensure a future certification in the positive. 

(2) The report shall be submitted in unclassified form, but may 

include a classified annex. 

(h) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED.—In 

this section, the term ‘‘congressional intelligence committees’’

means—

(1) the Select Committee on Intelligence of the Senate; and 

(2) the Permanent Select Committee on Intelligence of the 

House of Representatives. 

Subtitle F—Other Matters 

SEC. 351. ADDITIONAL ONE-YEAR SUSPENSION OF REORGANIZATION 

OF DIPLOMATIC TELECOMMUNICATIONS SERVICE PROGRAM OFFICE. 

Section 311 of the Intelligence Authorization Act for Fiscal Year 

2002 (Public Law 107–108; 22 U.S.C. 7301 note; 115 Stat. 1401) is 

amended—

(1) in the heading, by striking ‘‘ONE-YEAR’’ and inserting 

‘‘TWO-YEAR’’; and 

(2) in the text, by striking ‘‘October 1, 2002’’ and inserting 

‘‘October 1, 2003’’. 

SEC. 352. STANDARDIZED TRANSLITERATION OF NAMES INTO THE 

ROMAN ALPHABET. 

(a) METHOD OF TRANSLITERATION REQUIRED.—Not later than 

180 days after the date of the enactment of this Act, the Director of 

Central Intelligence shall provide for a standardized method for 

transliterating into the Roman alphabet personal and place names 

20

originally rendered in any language that uses an alphabet other 

than the Roman alphabet. 

(b) USE BY INTELLIGENCE COMMUNITY.—The Director shall ensure the use of the method established under subsection (a) in— (1) all communications among the elements of the intelligence community; and 

(2) all intelligence products of the intelligence community. 

SEC. 353. DEFINITION OF CONGRESSIONAL INTELLIGENCE COMMITTEES IN NATIONAL SECURITY ACT OF 1947. 

(a) IN GENERAL.—Section 3 of the National Security Act of 1947 

(50 U.S.C. 401a) is amended by adding at the end the following 

new paragraph: ‘‘(7) The term ‘congressional intelligence committees’ means—‘‘(A) the Select Committee on Intelligence of the Senate; 

and ‘‘(B) the Permanent Select Committee on Intelligence of 

the House of Representatives.’’. (b) CONFORMING AMENDMENTS.—(1) That Act is further amended by striking ‘‘Select Committee on Intelligence of the Senate and 

the Permanent Select Committee on Intelligence of the House of Representatives’’ and inserting ‘‘congressional intelligence committees’’ in each of the following provisions: 

(A) Section 104(d)(4) (50 U.S.C. 403–4(d)(4)). 

(B) Section 603(a) (50 U.S.C. 423(a)). 

(2) That Act is further amended by striking ‘‘Permanent Select 

Committee on Intelligence of the House of Representatives and the 

Select Committee on Intelligence of the Senate’’ and inserting ‘‘congressional intelligence committees’’ in each of the following provisions: 

(A) Section 301(j) (50 U.S.C. 409a(j)). 

(B) Section 801(b)(2) (50 U.S.C. 435(b)(2)). 

(C) Section 903 (50 U.S.C. 441b). 

(3) That Act is further amended by striking ‘‘intelligence committees’’ and inserting ‘‘congressional intelligence committees’’ each 

place it appears in each of the following provisions: 

(A) Section 501 (50 U.S.C. 413). 

(B) Section 502 (50 U.S.C. 413a). 

(C) Section 503 (50 U.S.C. 413b). 

(D) Section 504(d)(2) (50 U.S.C. 414(d)(2)). 

(4) Section 104(d)(5) of that Act (50 U.S.C. 403–4(d)(5)) is 

amended by striking ‘‘Select Committee on Intelligence of the Senate 

and to the Permanent Select Committee on Intelligence of the House 

of Representatives’’ and inserting ‘‘congressional intelligence committees’’. 

(5) Section 105C(a)(3)(C) of that Act (50 U.S.C. 403–5c(a)(3)(C)) 

is amended—

(A) by striking clauses (i) and (ii) and inserting the following new clause (i): 

‘‘(i) The congressional intelligence committees.’’; and 

(B) by redesignating clauses (iii), (iv), (v), and (vi) as 

clauses (ii), (iii), (iv), and (v), respectively. 

(6) Section 114 of that Act (50 U.S.C. 404i), as amended by section 324, is amended by striking subsection (d), as so redesignated, 

and inserting the following new subsection (d): 

21

‘‘(d) CONGRESSIONAL LEADERSHIP DEFINED.—In this section, the 

term ‘congressional leadership’ means the Speaker and the minority 

leader of the House of Representatives and the majority leader and 

the minority leader of the Senate.’’. 

(7) Section 501(a) of that Act (50 U.S.C. 413(a)), as amended 

by paragraph (3) of this subsection, is further amended—

(A) by striking paragraph (2); and 

(B) by redesignating paragraph (3) as paragraph (2). 

(8) Section 503(c)(4) of that Act (50 U.S.C. 413b(c)(4)) is amended by striking ‘‘intelligence committee’’ and inserting ‘‘congressional 

intelligence committee’’. 

(9) Section 602(c) of that Act (50 U.S.C. 422(c)) is amended by 

striking ‘‘the Select Committee on Intelligence of the Senate or to the 

Permanent Select Committee on Intelligence of the House of Representatives’’ and inserting ‘‘either congressional intelligence committee’’. 

(10) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is amended by striking ‘‘intelligence committees of the Congress’’ and inserting ‘‘congressional intelligence committees’’. 

TITLE IV—CENTRAL INTELLIGENCE AGENCY 

SEC. 401. TWO-YEAR EXTENSION OF CENTRAL INTELLIGENCE AGENCY 

VOLUNTARY SEPARATION PAY ACT. 

Section 2 of the Central Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 403–4 note) is amended—

(1) in subsection (f), by striking ‘‘September 30, 2003’’ and 

inserting ‘‘September 30, 2005’’; and 

(2) in subsection (i), by striking ‘‘or 2003’’ and inserting 

‘‘2003, 2004, or 2005’’. 

SEC. 402. IMPLEMENTATION OF COMPENSATION REFORM PLAN. 

(a) DELAY ON IMPLEMENTATION ON COMPENSATION REFORM

PLAN.—(1) The Director of Central Intelligence may not implement 

before the implementation date (described in paragraph (2)) a plan 

for the compensation of employees of the Central Intelligence Agency 

that differs from the plan in effect on October 1, 2002. 

(2) The implementation date referred to in paragraph (1) is February 1, 2004, or the date on which the Director submits to the congressional intelligence committees a report on the pilot project conducted under subsection (b), whichever is later. 

(3) It is the sense of Congress that an employee performance 

evaluation mechanism with evaluation training for managers and 

employees of the Central Intelligence Agency should be phased in before the implementation of any new compensation plan. 

(b) PILOT PROJECT.—(1) The Director shall conduct a pilot 

project to test the efficacy and fairness of a plan for the compensation of employees of the Central Intelligence Agency that differs from 

the plan in effect on October 1, 2002, within any one component of 

the Central Intelligence Agency selected by the Director, other than 

a component for which a pilot project on employee compensation has 

been previously conducted. 

(2) The pilot project under paragraph (1) shall be conducted for 

a period of at least 1 year. 

(3) Not later than the date that is 45 days after the completion 

of the pilot project under paragraph (1), the Director shall submit 

22

to the congressional intelligence committees a report that contains 

an evaluation of the project and such recommendations as the Director considers appropriate for the modification of the plans for the 

compensation of employees throughout the Agency which are in effect on such date. 

(c) SENSE OF CONGRESS ON IMPLEMENTATION OF COMPENSATION REFORM PLAN FOR THE NATIONAL SECURITY AGENCY.—It is 

the sense of Congress that—

(1) the Director of the National Security Agency should not 

implement before February 1, 2004, a plan for the compensation 

of employees of the National Security Agency that differs from 

the plan in effect on October 1, 2002; and 

(2) an employee performance evaluation mechanism with 

evaluation training for managers and employees of the National 

Security Agency should be phased in before the implementation 

of any new compensation plan. 

(d) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED.—In 

this section, the term ‘‘congressional intelligence committees’’ means 

the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives. 

TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE 

ACTIVITIES 

SEC. 501. USE OF FUNDS FOR COUNTERDRUG AND 

COUNTERTERRORISM ACTIVITIES FOR COLOMBIA. 

(a) AUTHORITY.—Funds designated for intelligence or intelligence-related purposes for assistance to the Government of Colombia for counterdrug activities for fiscal years 2002 and 2003, and 

any unobligated funds available to any element of the intelligence 

community for such activities for a prior fiscal year, shall be available to support a unified campaign against narcotics trafficking 

and against activities by organizations designated as terrorist organizations (such as the Revolutionary Armed Forces of Colombia 

(FARC), the National Liberation Army (ELN), and the United SelfDefense Forces of Colombia (AUC)), and to take actions to protect 

human health and welfare in emergency circumstances, including 

undertaking rescue operations. 

(b) REQUIREMENT FOR CERTIFICATION.—(1) The authorities provided in subsection (a) shall not be exercised until the Secretary of 

Defense certifies to the Congress that the provisions of paragraph (2) 

have been complied with.

(2) In order to ensure the effectiveness of United States support 

for such a unified campaign, prior to the exercise of the authority 

contained in subsection (a), the Secretary of State shall report to the 

appropriate committees of Congress that the newly elected President 

of Colombia has—

(A) committed, in writing, to establish comprehensive 

policies to combat illicit drug cultivation, manufacturing, 

and trafficking (particularly with respect to providing economic opportunities that offer viable alternatives to illicit 

crops) and to restore government authority and respect for 

human rights in areas under the effective control of paramilitary and guerrilla organizations; 

23

(B) committed, in writing, to implement significant 

budgetary and personnel reforms of the Colombian Armed 

Forces; and 

(C) committed, in writing, to support substantial additional Colombian financial and other resources to implement such policies and reforms, particularly to meet the 

country’s previous commitments under ‘‘Plan Colombia’’.

In this paragraph, the term ‘‘appropriate committees of Congress’’

means the Permanent Select Committee on Intelligence and the 

Committees on Appropriations and Armed Services of the House of 

Representatives and the Select Committee on Intelligence and the 

Committees on Appropriations and Armed Services of the Senate. 

(c) TERMINATION OF AUTHORITY.—The authority provided in 

subsection (a) shall cease to be effective if the Secretary of Defense 

has credible evidence that the Colombian Armed Forces are not conducting vigorous operations to restore government authority and respect for human rights in areas under the effective control of paramilitary and guerrilla organizations. 

(d) APPLICATION OF CERTAIN PROVISIONS OF LAW.—Sections 

556, 567, and 568 of Public Law 107–115, section 8093 of the Department of Defense Appropriations Act, 2002, and the numerical 

limitations on the number of United States military personnel and 

United States individual civilian contractors in section 3204(b)(1) of 

Public Law 106–246 shall be applicable to funds made available 

pursuant to the authority contained in subsection (a). 

(e) LIMITATION ON PARTICIPATION OF UNITED STATES PERSONNEL.—No United States Armed Forces personnel or United 

States civilian contractor employed 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 in self 

defense or rescuing any United States citizen to include United 

States Armed Forces personnel, United States civilian employees, 

and civilian contractors employed by the United States. 

SEC. 502. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL RECONNAISSANCE OFFICE. 

(a) IN GENERAL.—Title I of the National Security Act of 1947 

(50 U.S.C. 402 et seq.) is amended by inserting after section 105C 

(50 U.S.C. 403–5c) the following new section: 

‘‘PROTECTION OF OPERATIONAL FILES OF THE NATIONAL

RECONNAISSANCE OFFICE

‘‘SEC. 105D. (a) EXEMPTION OF CERTAIN OPERATIONAL FILES

FROM SEARCH, REVIEW, PUBLICATION, OR DISCLOSURE.—(1) The Director of the National Reconnaissance Office, with the coordination 

of the Director of Central Intelligence, may exempt operational files 

of the National Reconnaissance Office from the provisions of section 

552 of title 5, United States Code, which require publication, disclosure, search, or review in connection therewith. 

‘‘(2)(A) Subject to subparagraph (B), for the purposes of this section, the term ‘operational files’ means files of the National Reconnaissance Office (hereafter in this section referred to as ‘NRO’) that 

document the means by which foreign intelligence or counterintelligence is collected through scientific and technical systems. 

24

‘‘(B) Files which are the sole repository of disseminated intelligence are not operational files. ‘‘(3) Notwithstanding paragraph (1), exempted operational files 

shall continue to be subject to search and review for information 

concerning—

‘‘(A) United States citizens or aliens lawfully admitted for 

permanent residence who have requested information on themselves pursuant to the provisions of section 552 or 552a of title 

5, United States Code; ‘‘(B) any special activity the existence of which is not exempt from disclosure under the provisions of section 552 of title 

5, United States Code; or ‘‘(C) the specific subject matter of an investigation by any 

of the following for any impropriety, or violation of law, Executive order, or Presidential directive, in the conduct of an intelligence activity: ‘‘(i) The Permanent Select Committee on Intelligence of 

the House of Representatives. ‘‘(ii) The Select Committee on Intelligence of the Senate. 

‘‘(iii) The Intelligence Oversight Board. 

‘‘(iv) The Department of Justice. 

‘‘(v) The Office of General Counsel of NRO. 

‘‘(vi) The Office of the Director of NRO. ‘‘(4)(A) Files that are not exempted under paragraph (1) which 

contain information derived or disseminated from exempted operational files shall be subject to search and review. ‘‘(B) The inclusion of information from exempted operational 

files in files that are not exempted under paragraph (1) shall not 

affect the exemption under paragraph (1) of the originating operational files from search, review, publication, or disclosure. ‘‘(C) The declassification of some of the information contained 

in exempted operational files shall not affect the status of the operational file as being exempt from search, review, publication, or disclosure. 

‘‘(D) Records from exempted operational files which have been 

disseminated to and referenced in files that are not exempted under 

paragraph (1) and which have been returned to exempted operational files for sole retention shall be subject to search and review. 

‘‘(5) The provisions of paragraph (1) may not be superseded except by a provision of law which is enacted after the date of the enactment of this section, and which specifically cites and repeals or 

modifies its provisions. 

‘‘(6)(A) Except as provided in subparagraph (B), whenever any 

person who has requested agency records under section 552 of title 

5, United States Code, alleges that NRO has withheld records improperly because of failure to comply with any provision of this section, judicial review shall be available under the terms set forth in 

section 552(a)(4)(B) of title 5, United States Code. 

‘‘(B) Judicial review shall not be available in the manner provided for under subparagraph (A) as follows: 

‘‘(i) In any case in which information specifically authorized under criteria established by an Executive order to be kept 

secret in the interests of national defense or foreign relations is 

filed with, or produced for, the court by NRO, such information 

shall be examined ex parte, in camera by the court. 

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‘‘(ii) The court shall, to the fullest extent practicable, determine the issues of fact based on sworn written submissions of 

the parties. ‘‘(iii) When a complainant alleges that requested records 

are improperly withheld because of improper placement solely 

in exempted operational files, the complainant shall support 

such allegation with a sworn written submission based upon 

personal knowledge or otherwise admissible evidence. ‘‘(iv)(I) When a complainant alleges that requested records 

were improperly withheld because of improper exemption of 

operational files, NRO shall meet its burden under section 

552(a)(4)(B) of title 5, United States Code, by demonstrating to 

the court by sworn written submission that exempted operational files likely to contain responsible records currently perform the functions set forth in paragraph (2). ‘‘(II) The court may not order NRO to review the content of 

any exempted operational file or files in order to make the demonstration required under subclause (I), unless the complainant 

disputes NRO’s showing with a sworn written submission based 

on personal knowledge or otherwise admissible evidence. ‘‘(v) In proceedings under clauses (iii) and (iv), the parties 

may not obtain discovery pursuant to rules 26 through 36 of the 

Federal Rules of Civil Procedure, except that requests for admissions may be made pursuant to rules 26 and 36. ‘‘(vi) If the court finds under this paragraph that NRO has 

improperly withheld requested records because of failure to 

comply with any provision of this subsection, the court shall 

order NRO to search and review the appropriate exempted operational file or files for the requested records and make such 

records, or portions thereof, available in accordance with the 

provisions of section 552 of title 5, United States Code, and 

such order shall be the exclusive remedy for failure to comply 

with this subsection. ‘‘(vii) If at any time following the filing of a complaint pursuant to this paragraph NRO agrees to search the appropriate 

exempted operational file or files for the requested records, the 

court shall dismiss the claim based upon such complaint. 

‘‘(viii) Any information filed with, or produced for the court 

pursuant to clauses (i) and (iv) shall be coordinated with the 

Director of Central Intelligence prior to submission to the court. 

‘‘(b) DECENNIAL REVIEW OF EXEMPTED OPERATIONAL FILES.—

(1) Not less than once every 10 years, the Director of the National 

Reconnaissance Office and the Director of Central Intelligence shall 

review the exemptions in force under subsection (a)(1) to determine 

whether such exemptions may be removed from the category of exempted files or any portion thereof. The Director of Central Intelligence must approve any determination to remove such exemptions. 

‘‘(2) The review required by paragraph (1) shall include consideration of the historical value or other public interest in the subject 

matter of the particular category of files or portions thereof and the 

potential for declassifying a significant part of the information contained therein. ‘‘(3) A complainant that alleges that NRO has improperly withheld records because of failure to comply with this subsection may 

seek judicial review in the district court of the United States of the 

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district in which any of the parties reside, or in the District of Columbia. In such a proceeding, the court’s review shall be limited to 

determining the following: ‘‘(A) Whether NRO has conducted the review required by 

paragraph (1) before the expiration of the 10-year period beginning on the date of the enactment of this section or before the 

expiration of the 10-year period beginning on the date of the 

most recent review. ‘‘(B) Whether NRO, in fact, considered the criteria set forth 

in paragraph (2) in conducting the required review.’’. (b) CLERICAL AMENDMENT.—The table of sections for that Act is 

amended by inserting after the item relating to section 105C the following new item:

‘‘Sec. 105D. Protection of operational files of the National Reconnaissance Office.’’.

SEC. 503. ELIGIBILITY OF EMPLOYEES IN INTELLIGENCE SENIOR 

LEVEL POSITIONS FOR PRESIDENTIAL RANK AWARDS. 

Section 1607 of title 10, United States Code, is amended by 

adding at the end the following new subsection: 

‘‘(c) AWARD OF RANK TO EMPLOYEES IN INTELLIGENCE SENIOR

LEVEL POSITIONS.—The President, based on the recommendations of 

the Secretary of Defense, may award a rank referred to in section 

4507a of title 5 to employees in Intelligence Senior Level positions 

designated under subsection (a). The award of such rank shall be 

made in a manner consistent with the provisions of that section.’’.

TITLE VI—NATIONAL COMMISSION ON TERRORIST 

ATTACKS UPON THE UNITED STATES 

SEC. 601. ESTABLISHMENT OF COMMISSION. 

There is established in the legislative branch the National Commission on Terrorist Attacks Upon the United States (in this title 

referred to as the ‘‘Commission’’). 

SEC. 602. PURPOSES. 

The purposes of the Commission are to—

(1) examine and report upon the facts and causes relating 

to the terrorist attacks of September 11, 2001, occurring at the 

World Trade Center in New York, New York, in Somerset County, Pennsylvania, and at the Pentagon in Virginia; 

(2) ascertain, evaluate, and report on the evidence developed by all relevant governmental agencies regarding the facts 

and circumstances surrounding the attacks; 

(3) build upon the investigations of other entities, and 

avoid unnecessary duplication, by reviewing the findings, conclusions, and recommendations of—

(A) the Joint Inquiry of the Select Committee on Intelligence of the Senate and the Permanent Select Committee 

on Intelligence of the House of Representatives regarding 

the terrorist attacks of September 11, 2001, (hereinafter in 

this title referred to as the ‘‘Joint Inquiry’’); and 

(B) other executive branch, congressional, or independent commission investigations into the terrorist attacks 

of September 11, 2001, other terrorist attacks, and terrorism generally; 

(4) make a full and complete accounting of the circumstances surrounding the attacks, and the extent of the 

27

United States’ preparedness for, and immediate response to, the 

attacks; and 

(5) investigate and report to the President and Congress on 

its findings, conclusions, and recommendations for corrective 

measures that can be taken to prevent acts of terrorism. 

SEC. 603. COMPOSITION OF COMMISSION. 

(a) MEMBERS.—The Commission shall be composed of 10 members, of whom—

(1) 1 member shall be appointed by the President, who 

shall serve as chairman of the Commission; 

(2) 1 member shall be appointed by the leader of the Senate 

(majority or minority leader, as the case may be) of the Democratic Party, in consultation with the leader of the House of 

Representatives (majority or minority leader, as the case may 

be) of the Democratic Party, who shall serve as vice chairman 

of the Commission; 

(3) 2 members shall be appointed by the senior member of 

the Senate leadership of the Democratic Party; 

(4) 2 members shall be appointed by the senior member of 

the leadership of the House of Representatives of the Republican 

Party; 

(5) 2 members shall be appointed by the senior member of 

the Senate leadership of the Republican Party; and 

(6) 2 members shall be appointed by the senior member of 

the leadership of the House of Representatives of the Democratic 

Party. 

(b) QUALIFICATIONS; INITIAL MEETING.—

(1) POLITICAL PARTY AFFILIATION.—Not more than 5 members of the Commission shall be from the same political party. 

(2) NONGOVERNMENTAL APPOINTEES.—An individual appointed to the Commission may not be an officer or employee of 

the Federal Government or any State or local government. 

(3) OTHER QUALIFICATIONS.—It is the sense of Congress 

that individuals appointed to the Commission should be prominent United States citizens, with national recognition and significant depth of experience in such professions as governmental 

service, law enforcement, the armed services, law, public administration, intelligence gathering, commerce (including aviation 

matters), and foreign affairs. 

(4) DEADLINE FOR APPOINTMENT.—All members of the Commission shall be appointed on or before December 15, 2002. 

(5) INITIAL MEETING.—The Commission shall meet and 

begin the operations of the Commission as soon as practicable. 

(c) QUORUM; VACANCIES.—After its initial meeting, the Commission shall meet upon the call of the chairman or a majority of its 

members. Six members of the Commission shall constitute a 

quorum. Any vacancy in the Commission shall not affect its powers, 

but shall be filled in the same manner in which the original appointment was made. 

SEC. 604. FUNCTIONS OF COMMISSION. 

(a) IN GENERAL.—The functions of the Commission are to—

(1) conduct an investigation that—

(A) investigates relevant facts and circumstances relating to the terrorist attacks of September 11, 2001, including 

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any relevant legislation, Executive Order, regulation, plan, 

policy, practice, or procedure; and 

(B) may include relevant facts and circumstances relating to— (i) intelligence agencies; 

(ii) law enforcement agencies; 

(iii) diplomacy; 

(iv) immigration, nonimmigrant visas, and border 

control; 

(v) the flow of assets to terrorist organizations; 

(vi) commercial aviation; 

(vii) the role of congressional oversight and resource allocation; and 

(viii) other areas of the public and private sectors 

determined relevant by the Commission for its inquiry; 

(2) identify, review, and evaluate the lessons learned from 

the terrorist attacks of September 11, 2001, regarding the structure, coordination, management policies, and procedures of the 

Federal Government, and, if appropriate, State and local governments and nongovernmental entities, relative to detecting, 

preventing, and responding to such terrorist attacks; and 

(3) submit to the President and Congress such reports as 

are required by this title containing such findings, conclusions, 

and recommendations as the Commission shall determine, including proposing organization, coordination, planning, management arrangements, procedures, rules, and regulations. 

(b) RELATIONSHIP TO INTELLIGENCE COMMITTEES’ INQUIRY.— When investigating facts and circumstances relating to the intelligence community, the Commission shall— (1) first review the information compiled by, and the findings, conclusions, and recommendations of, the Joint Inquiry; 

and 

(2) after that review pursue any appropriate area of inquiry 

if the Commission determines that— (A) the Joint Inquiry had not investigated that area; 

(B) the Joint Inquiry’s investigation of that area had 

not been complete; or 

(C) new information not reviewed by the Joint Inquiry 

had become available with respect to that area. 

SEC. 605. POWERS OF COMMISSION. 

(a) IN GENERAL.—

(1) HEARINGS AND EVIDENCE.—The Commission or, on the 

authority of the Commission, any subcommittee or member 

thereof, may, for the purpose of carrying out this title—

(A) hold such hearings and sit and act at such times 

and places, take such testimony, receive such evidence, administer such oaths; and 

(B) subject to paragraph (2)(A), require, by subpoena or 

otherwise, the attendance and testimony of such witnesses 

and the production of such books, records, correspondence, 

memoranda, papers, and documents, as the Commission or 

such designated subcommittee or designated member may 

determine advisable. 

(2) SUBPOENAS.—

(A) ISSUANCE.—

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(i) IN GENERAL.—A subpoena may be issued under 

this subsection only— (I) by the agreement of the chairman and the 

vice chairman; or 

(II) by the affirmative vote of 6 members of the 

Commission. 

(ii) SIGNATURE.—Subject to clause (i), subpoenas 

issued under this subsection may be issued under the 

signature of the chairman or any member designated 

by a majority of the Commission, and may be served 

by any person designated by the chairman or by a 

member designated by a majority of the Commission. 

(B) ENFORCEMENT.— (i) IN GENERAL.—In the case of contumacy or failure to obey a subpoena issued under subsection (a), the 

United States district court for the judicial district in 

which the subpoenaed person resides, is served, or may 

be found, or where the subpoena is returnable, may 

issue an order requiring such person to appear at any 

designated place to testify or to produce documentary 

or other evidence. Any failure to obey the order of the 

court may be punished by the court as a contempt of 

that court. 

(ii) ADDITIONAL ENFORCEMENT.—In the case of any 

failure of any witness to comply with any subpoena or 

to testify when summoned under authority of this section, the Commission may, by majority vote, certify a 

statement of fact constituting such failure to the appropriate United States attorney, who may bring the matter before the grand jury for its action, under the same 

statutory authority and procedures as if the United 

States attorney had received a certification under sections 102 through 104 of the Revised Statutes of the 

United States (2 U.S.C. 192 through 194). 

(b) CONTRACTING.—The Commission may, to such extent and in 

such amounts as are provided in appropriation Acts, enter into contracts to enable the Commission to discharge its duties under this 

title. 

(c) INFORMATION FROM FEDERAL AGENCIES.— (1) IN GENERAL.—The Commission is authorized to secure 

directly from any executive department, bureau, agency, board, 

commission, office, independent establishment, or instrumentality of the Government, information, suggestions, estimates, 

and statistics for the purposes of this title. Each department, 

bureau, agency, board, commission, office, independent establishment, or instrumentality shall, to the extent authorized by 

law, furnish such information, suggestions, estimates, and statistics directly to the Commission, upon request made by the 

chairman, the chairman of any subcommittee created by a majority of the Commission, or any member designated by a majority of the Commission. 

(2) RECEIPT, HANDLING, STORAGE, AND DISSEMINATION.—Information shall only be received, handled, stored, and disseminated by members of the Commission and its staff consistent 

with all applicable statutes, regulations, and Executive Orders. 

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(d) ASSISTANCE FROM FEDERAL AGENCIES.—

(1) GENERAL SERVICES ADMINISTRATION.—The Administrator of General Services shall provide to the Commission on 

a reimbursable basis administrative support and other services 

for the performance of the Commission’s functions.

(2) OTHER DEPARTMENTS AND AGENCIES.—In addition to 

the assistance prescribed in paragraph (1), departments and 

agencies of the United States may provide to the Commission 

such services, funds, facilities, staff, and other support services 

as they may determine advisable and as may be authorized by 

law. 

(e) GIFTS.—The Commission may accept, use, and dispose of 

gifts or donations of services or property. 

(f) POSTAL SERVICES.—The Commission may use the United 

States mails in the same manner and under the same conditions as 

departments and agencies of the United States. 

SEC. 606. NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE 

ACT. 

(a) IN GENERAL.—The Federal Advisory Committee Act (5 

U.S.C. App.) shall not apply to the Commission. 

(b) PUBLIC MEETINGS AND RELEASE OF PUBLIC VERSIONS OF

REPORTS.—The Commission shall—

(1) hold public hearings and meetings to the extent appropriate; and 

(2) release public versions of the reports required under section 610 (a) and (b). 

(c) PUBLIC HEARINGS.—Any public hearings of the Commission 

shall be conducted in a manner consistent with the protection of information provided to or developed for or by the Commission as required by any applicable statute, regulation, or Executive Order. 

SEC. 607. STAFF OF COMMISSION. 

(a) IN GENERAL.—

(1) APPOINTMENT AND COMPENSATION.—The chairman, in 

consultation with vice chairman, in accordance with rules 

agreed upon by the Commission, may appoint and fix the compensation of a staff director and such other personnel as may 

be necessary to enable the Commission to carry out its functions, without regard to the provisions of title 5, United States 

Code, governing appointments in the competitive service, and 

without regard to the provisions of chapter 51 and subchapter 

III of chapter 53 of such title relating to classification and General Schedule pay rates, except that no rate of pay fixed under 

this subsection may exceed the equivalent of that payable for a 

position at level V of the Executive Schedule under section 5316 

of title 5, United States Code. 

(2) PERSONNEL AS FEDERAL EMPLOYEES.—

(A) IN GENERAL.—The executive director and any personnel of the Commission who are employees shall be employees under section 2105 of title 5, United States Code, 

for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 

of that title. 

(B) MEMBERS OF COMMISSION.—Subparagraph (A) 

shall not be construed to apply to members of the Commission. 

31

(b) DETAILEES.—Any Federal Government employee may be detailed to the Commission without reimbursement from the Commission, and such detailee shall retain the rights, status, and privileges 

of his or her regular employment without interruption. 

(c) CONSULTANT SERVICES.—The Commission is authorized to 

procure the services of experts and consultants in accordance with 

section 3109 of title 5, United States Code, but at rates not to exceed 

the daily rate paid a person occupying a position at level IV of the 

Executive Schedule under section 5315 of title 5, United States 

Code. 

SEC. 608. COMPENSATION AND TRAVEL EXPENSES. 

(a) COMPENSATION.—Each member of the Commission may be 

compensated at not to exceed the daily equivalent of the annual rate 

of basic pay in effect for a position at level IV of the Executive 

Schedule under section 5315 of title 5, United States Code, for each 

day during which that member is engaged in the actual performance of the duties of the Commission. 

(b) TRAVEL EXPENSES.—While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service 

are allowed expenses under section 5703(b) of title 5, United States 

Code. 

SEC. 609. SECURITY CLEARANCES FOR COMMISSION MEMBERS AND 

STAFF. 

The appropriate Federal agencies or departments shall cooperate with the Commission in expeditiously providing to the Commission members and staff appropriate security clearances to the extent 

possible pursuant to existing procedures and requirements, except 

that no person shall be provided with access to classified information under this title without the appropriate security clearances. 

SEC. 610. REPORTS OF COMMISSION; TERMINATION. 

(a) INTERIM REPORTS.—The Commission may submit to the 

President and Congress interim reports containing such findings, 

conclusions, and recommendations for corrective measures as have 

been agreed to by a majority of Commission members. 

(b) FINAL REPORT.—Not later than 18 months after the date of 

the enactment of this Act, the Commission shall submit to the President and Congress a final report containing such findings, conclusions, and recommendations for corrective measures as have been 

agreed to by a majority of Commission members. 

(c) TERMINATION.—

(1) IN GENERAL.—The Commission, and all the authorities 

of this title, shall terminate 60 days after the date on which the 

final report is submitted under subsection (b). 

(2) ADMINISTRATIVE ACTIVITIES BEFORE TERMINATION.—The 

Commission may use the 60-day period referred to in paragraph (1) for the purpose of concluding its activities, including 

providing testimony to committees of Congress concerning its reports and disseminating the final report. 

SEC. 611. FUNDING. 

(a) TRANSFER FROM THE NATIONAL FOREIGN INTELLIGENCE

PROGRAM.—Of the amounts authorized to be appropriated by this 

32

Act and made available in public law 107–248 (Department of Defense Appropriations Act, 2003) for the National Foreign Intelligence Program, not to exceed $3,000,000 shall be available for 

transfer to the Commission for purposes of the activities of the Commission under this title. 

(b) DURATION OF AVAILABILITY.—Amounts made available to 

the Commission under subsection (a) shall remain available until 

the termination of the Commission. 

TITLE VII—INFORMATION SHARING 

SEC. 701. SHORT TITLE. 

This title may be cited as the ‘‘Homeland Security Information 

Sharing Act’’. 

SEC. 702. FINDINGS AND SENSE OF CONGRESS. 

(a) FINDINGS.—The Congress finds the following: 

(1) The Federal Government is required by the Constitution 

to provide for the common defense, which includes defense 

against terrorist attacks. 

(2) The Federal Government relies on State and local personnel to protect against terrorist attacks. 

(3) The Federal Government collects, creates, manages, and 

protects classified and sensitive but unclassified information to 

enhance homeland security. 

(4) Some homeland security information is needed by the 

State and local personnel to prevent and prepare for terrorist 

attacks. 

(5) The needs of State and local personnel to have access 

to relevant homeland security information to combat terrorism 

must be reconciled with the need to preserve the protected status 

of such information and to protect the sources and methods 

used to acquire such information. 

(6) Granting security clearances to certain State and local 

personnel is one way to facilitate the sharing of information regarding specific terrorist threats among Federal, State, and 

local levels of government.

(7) Methods exist to declassify, redact, or otherwise adapt 

classified information so it may be shared with State and local 

personnel without the need for granting additional security 

clearances. 

(8) State and local personnel have capabilities and opportunities to gather information on suspicious activities and terrorist threats not possessed by Federal agencies. 

(9) The Federal Government and State and local governments and agencies in other jurisdictions may benefit from such 

information. 

(10) Federal, State, and local governments and intelligence, 

law enforcement, and other emergency preparation and response agencies must act in partnership to maximize the benefits of information gathering and analysis to prevent and respond to terrorist attacks. 

(11) Information systems, including the National Law Enforcement Telecommunications System and the Terrorist Threat 

Warning System, have been established for rapid sharing of 

33

classified and sensitive but unclassified information among 

Federal, State, and local entities. 

(12) Increased efforts to share homeland security information should avoid duplicating existing information systems. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that Federal, State, and local entities should share homeland security information to the maximum extent practicable, with special emphasis 

on hard-to-reach urban and rural communities. 

SEC. 703. FACILITATING HOMELAND SECURITY INFORMATION SHARING PROCEDURES. 

(a) PROCEDURES FOR DETERMINING EXTENT OF SHARING OF

HOMELAND SECURITY INFORMATION.—(1) The President shall prescribe and implement procedures under which relevant Federal 

agencies determine—

(A) whether, how, and to what extent homeland security information may be shared with appropriate State and local personnel, and with which such personnel it may be shared; 

(B) how to identify and safeguard homeland security information that is sensitive but unclassified; and 

(C) to the extent such information is in classified form, 

whether, how, and to what extent to remove classified information, as appropriate, and with which such personnel it may be 

shared after such information is removed. 

(2) The President shall ensure that such procedures apply to all 

agencies of the Federal Government. 

(3) Such procedures shall not change the substantive requirements for the classification and safeguarding of classified information. 

(4) Such procedures shall not change the requirements and authorities to protect sources and methods. 

(b) PROCEDURES FOR SHARING OF HOMELAND SECURITY INFORMATION.—(1) Under procedures prescribed by the President, all appropriate agencies, including the intelligence community, shall, 

through information sharing systems, share homeland security information with appropriate State and local personnel to the extent 

such information may be shared, as determined in accordance with 

subsection (a), together with assessments of the credibility of such 

information. 

(2) Each information sharing system through which information is shared under paragraph (1) shall—

(A) have the capability to transmit unclassified or classified 

information, though the procedures and recipients for each capability may differ; 

(B) have the capability to restrict delivery of information to 

specified subgroups by geographic location, type of organization, 

position of a recipient within an organization, or a recipient’s 

need to know such information; 

(C) be configured to allow the efficient and effective sharing 

of information; and 

(D) be accessible to appropriate State and local personnel. 

(3) The procedures prescribed under paragraph (1) shall establish conditions on the use of information shared under paragraph 

(1)—

34

(A) to limit the redissemination of such information to ensure that such information is not used for an unauthorized purpose; 

(B) to ensure the security and confidentiality of such information; 

(C) to protect the constitutional and statutory rights of any 

individuals who are subjects of such information; and 

(D) to provide data integrity through the timely removal 

and destruction of obsolete or erroneous names and information. 

(4) The procedures prescribed under paragraph (1) shall ensure, 

to the greatest extent practicable, that the information sharing system through which information is shared under such paragraph include existing information sharing systems, including, but not limited to, the National Law Enforcement Telecommunications System, 

the Regional Information Sharing System, and the Terrorist Threat 

Warning System of the Federal Bureau of Investigation. 

(5) Each appropriate Federal agency, as determined by the 

President, shall have access to each information sharing system 

through which information is shared under paragraph (1), and 

shall therefore have access to all information, as appropriate, 

shared under such paragraph. 

(6) The procedures prescribed under paragraph (1) shall ensure 

that appropriate State and local personnel are authorized to use 

such information sharing systems— (A) to access information shared with such personnel; and 

(B) to share, with others who have access to such information sharing systems, the homeland security information of 

their own jurisdictions, which shall be marked appropriately as 

pertaining to potential terrorist activity.

(7) Under procedures prescribed jointly by the Director of Central Intelligence and the Attorney General, each appropriate Federal 

agency, as determined by the President, shall review and assess the 

information shared under paragraph (6) and integrate such information with existing intelligence. 

(c) SHARING OF CLASSIFIED INFORMATION AND SENSITIVE BUT

UNCLASSIFIED INFORMATION WITH STATE AND LOCAL PERSONNEL.— (1) The President shall prescribe procedures under which Federal 

agencies may, to the extent the President considers necessary, share 

with appropriate State and local personnel homeland security information that remains classified or otherwise protected after the determinations prescribed under the procedures set forth in subsection 

(a). 

(2) It is the sense of Congress that such procedures may include 

one or more of the following means: 

(A) Carrying out security clearance investigations with respect to appropriate State and local personnel. 

(B) With respect to information that is sensitive but unclassified, entering into nondisclosure agreements with appropriate 

State and local personnel. 

(C) Increased use of information-sharing partnerships that 

include appropriate State and local personnel, such as the Joint 

Terrorism Task Forces of the Federal Bureau of Investigation, 

the Anti-Terrorism Task Forces of the Department of Justice, 

and regional Terrorism Early Warning Groups. 

35

(d) RESPONSIBLE OFFICIALS.—For each affected Federal agency, 

the head of such agency shall designate an official to administer 

this title with respect to such agency. 

(e) FEDERAL CONTROL OF INFORMATION.—Under procedures 

prescribed under this section, information obtained by a State or 

local government from a Federal agency under this section shall remain under the control of the Federal agency, and a State or local 

law authorizing or requiring such a government to disclose information shall not apply to such information. 

(f) DEFINITIONS.—As used in this section: 

(1) The term ‘‘homeland security information’’ means any 

information (other than information that includes individually 

identifiable information collected solely for statistical purposes) 

possessed by a Federal, State, or local agency that—

(A) relates to the threat of terrorist activity; 

(B) relates to the ability to prevent, interdict, or disrupt 

terrorist activity; 

(C) would improve the identification or investigation of 

a suspected terrorist or terrorist organization; or 

(D) would improve the response to a terrorist act. 

(2) The term ‘‘intelligence community’’ has the meaning 

given such term in section 3(4) of the National Security Act of 

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

(3) The term ‘‘State and local personnel’’ means any of the 

following persons involved in prevention, preparation, or response for terrorist attacks: 

(A) State Governors, mayors, and other locally elected 

officials. 

(B) State and local law enforcement personnel and firefighters. 

(C) Public health and medical professionals. 

(D) Regional, State, and local emergency management 

agency personnel, including State adjutant generals. 

(E) Other appropriate emergency response agency personnel. 

(F) Employees of private sector entities that affect critical infrastructure, cyber, economic, or public health security, as designated by the Federal Government in procedures developed pursuant to this section. 

(4) The term ‘‘State’’ includes the District of Columbia and 

any commonwealth, territory, or possession of the United 

States. 

SEC. 704. REPORT. 

(a) REPORT REQUIRED.—Not later than 12 months after the 

date of the enactment of this Act, the President shall submit to the 

congressional committees specified in subsection (b) a report on the 

implementation of section 703. The report shall include any recommendations for additional measures or appropriation requests, 

beyond the requirements of section 703, to increase the effectiveness 

of sharing of information between and among Federal, State, and 

local entities. 

(b) SPECIFIED CONGRESSIONAL COMMITTEES.—The congressional committees referred to in subsection (a) are the following 

committees: 

36

(1) The Permanent Select Committee on Intelligence and 

the Committee on the Judiciary of the House of Representatives. 

(2) The Select Committee on Intelligence and the Committee 

on the Judiciary of the Senate. 

SEC. 705. AUTHORIZATION OF APPROPRIATIONS. 

There is authorized to be appropriated such sums as may be 

necessary to carry out section 703.

SEC. 706. COORDINATION PROVISION. 

(a) PRIOR ENACTMENT.—If this Act is enacted before the Homeland Security Act of 2002, then upon the date of the enactment of 

the Homeland Security Act of 2002, this title shall be deemed for 

all purposes not to have taken effect and shall cease to be in effect. 

(b) SUBSEQUENT ENACTMENT.—If the Homeland Security Act of 

2002 is enacted before this Act, then this title shall not take effect.

TITLE VIII—REPORTING REQUIREMENTS 

Subtitle A—Overdue Reports 

SEC. 801. DEADLINE FOR SUBMITTAL OF VARIOUS OVERDUE REPORTS. 

(a) DEADLINE.—The reports described in subsection (c) shall be 

submitted to Congress not later than 180 days after the date of the 

enactment of this Act.

(b) NONCOMPLIANCE.—(1) If all the reports described in subsection (c) are not submitted to Congress by the date specified in 

subsection (a), amounts available to be obligated or expended after 

that date to carry out the functions or duties of the Office of the Director of Central Intelligence shall be reduced by 1⁄3. (2) The reduction applicable under paragraph (1) shall not 

apply if the Director of Central Intelligence certifies to Congress by 

the date referred to in subsection (a) that all reports referred to in 

subsection (c) have been submitted to Congress. 

(c) REPORTS DESCRIBED.—The reports referred to in subsection 

(a) are reports mandated by law for which the Director of Central 

Intelligence has sole or primary responsibility to prepare, coordinate, and submit to Congress which, as of the date of the enactment 

of this Act, have not been submitted to Congress. 

Subtitle B—Submittal of Reports to Intelligence Committees 

SEC. 811. DATES FOR SUBMITTAL OF VARIOUS ANNUAL AND SEMIANNUAL REPORTS TO THE CONGRESSIONAL INTELLIGENCE COMMITTEES. 

(a) IN GENERAL.—(1) Title V of the National Security Act of 

1947 (50 U.S.C. 413 et seq.), as amended by section 311 of this Act, 

is further amended by adding at the end the following new section: 

‘‘DATES FOR SUBMITTAL OF VARIOUS ANNUAL AND SEMIANNUAL

REPORTS TO THE CONGRESSIONAL INTELLIGENCE COMMITTEES

‘‘SEC. 507. (a) ANNUAL REPORTS.—(1) The date for the submittal to the congressional intelligence committees of the following 

annual reports shall be the date each year provided in subsection 

(c)(1)(A): 

‘‘(A) The annual evaluation of the performance and responsiveness of certain elements of the intelligence community required by section 105(d). 

37

‘‘(B) The annual report on intelligence required by section 

109. ‘‘(C) The annual report on intelligence community cooperation with Federal law enforcement agencies required by section 

114(a)(2). ‘‘(D) The annual report on the protection of the identities of 

covert agents required by section 603. ‘‘(E) The annual report of the Inspectors Generals of the intelligence community on proposed resources and activities of 

their offices required by section 8H(g) of the Inspector General 

Act of 1978. ‘‘(F) The annual report on commercial activities as security 

for intelligence collection required by section 437(c) of title 10, 

United States Code. ‘‘(G) The annual report on expenditures for postemployment 

assistance for terminated intelligence employees required by section 1611(e)(2) of title 10, United States Code. ‘‘(H) The annual update on foreign industrial espionage required by section 809(b) of the Counterintelligence and Security 

Enhancements Act of 1994 (title VIII of Public Law 103–359; 50 

U.S.C. App. 2170b(b)). ‘‘(I) The annual report on coordination of counterintelligence matters with the Federal Bureau of Investigation required by section 811(c)(6) of the Counterintelligence and Security Enhancements Act of 1994 (50 U.S.C. 402a(c)(6)). ‘‘(J) The annual report on foreign companies involved in 

the proliferation of weapons of mass destruction that raise 

funds in the United States capital markets required by section 

827 of the Intelligence Authorization Act for Fiscal Year 2003. ‘‘(K) The annual report on certifications for immunity in 

interdiction of aircraft engaged in illicit drug trafficking required by section 1012(c)(2) of the National Defense Authorization Act for Fiscal Year 1995 (22 U.S.C. 2291–4(c)(2)). ‘‘(L) The annual report on exceptions to consumer disclosure 

requirements for national security investigations under section 

604(b)(4)(E) of the Fair Credit Reporting Act (15 U.S.C. 

1681b(b)(4)(E)). 

‘‘(M) The annual report on activities under the David L. 

Boren National Security Education Act of 1991 (title VIII of 

Public Law 102–183; 50 U.S.C. 1901 et seq.) required by section 

806(a) of that Act (50 U.S.C. 1906(a)). 

‘‘(N) The annual report on hiring and retention of minority 

employees in the intelligence community required by section 

114(c). 

‘‘(2) The date for the submittal to the congressional intelligence 

committees of the following annual reports shall be the date each 

year provided in subsection (c)(1)(B): 

‘‘(A) The annual report on the safety and security of Russian nuclear facilities and nuclear military forces required by 

section 114(b). 

‘‘(B) The annual report on the threat of attack on the 

United States from weapons of mass destruction required by 

section 114(d). 

‘‘(C) The annual report on covert leases required by section 

114(e). 

38

‘‘(D) The annual report on improvements of the financial 

statements of the intelligence community for auditing purposes 

required by section 114A. ‘‘(E) The annual report on activities of personnel of the Federal Bureau of Investigation outside the United States required 

by section 540C(c)(2) of title 28, United States Code. ‘‘(F) The annual report on intelligence activities of the People’s Republic of China required by section 308(c) of the Intelligence Authorization Act for Fiscal Year 1998 (Public Law 

105–107; 50 U.S.C. 402a note). 

‘‘(G) The annual report on counterdrug intelligence matters 

required by section 826 of the Intelligence Authorization Act for 

Fiscal Year 2003. 

‘‘(b) SEMIANNUAL REPORTS.—The dates for the submittal to the 

congressional intelligence committees of the following semiannual 

reports shall be the dates each year provided in subsection (c)(2): ‘‘(1) The periodic reports on intelligence provided to the 

United Nations required by section 112(b). ‘‘(2) The semiannual reports on the Office of the Inspector 

General of the Central Intelligence Agency required by section 

17(d)(1) of the Central Intelligence Agency Act of 1949 (50 

U.S.C. 403q(d)(1)). ‘‘(3) The semiannual reports on decisions not to prosecute 

certain violations of law under the Classified Information Procedures Act (18 U.S.C. App.) as required by section 13 of that 

Act. ‘‘(4) The semiannual reports on the acquisition of technology relating to weapons of mass destruction and advanced 

conventional munitions required by section 721(b) of the Combatting Proliferation of Weapons of Mass Destruction Act of 

1996 (title VII of Public Law 104–293; 50 U.S.C. 2366(b)). ‘‘(5) The semiannual reports on the activities of the Diplomatic Telecommunications Service Program Office (DTS–PO) 

required by section 322(a)(6)(D)(ii) of the Intelligence Authorization Act for Fiscal Year 2001 (22 U.S.C. 7302(a)(6)(D)(ii)). 

‘‘(6) The semiannual reports on the disclosure of information and consumer reports to the Federal Bureau of Investigation for counterintelligence purposes required by section 

624(h)(2) of the Fair Credit Reporting Act (15 U.S.C. 

1681u(h)(2)). 

‘‘(7) The semiannual provision of information on requests 

for financial information for foreign counterintelligence purposes required by section 1114(a)(5)(C) of the Right to Financial 

Privacy Act of 1978 (12 U.S.C. 3414(a)(5)(C)). 

‘‘(8) The semiannual report on financial intelligence on terrorist assets required by section 118. 

‘‘(c) SUBMITTAL DATES FOR REPORTS.—(1)(A) Except as provided in subsection (d), each annual report listed in subsection 

(a)(1) shall be submitted not later than February 1. ‘‘(B) Except as provided in subsection (d), each annual report 

listed in subsection (a)(2) shall be submitted not later than December 1. ‘‘(2) Except as provided in subsection (d), each semiannual report listed in subsection (b) shall be submitted not later than February 1 and August 1. 

39

‘‘(d) POSTPONEMENT OF SUBMITTAL.—(1) Subject to paragraph 

(3), the date for the submittal of— ‘‘(A) an annual report listed in subsection (a)(1) may be 

postponed until March 1; ‘‘(B) an annual report listed in subsection (a)(2) may be 

postponed until January 1; and ‘‘(C) a semiannual report listed in subsection (b) may be 

postponed until March 1 or September 1, as the case may be, 

if the official required to submit such report submits to the congressional intelligence committees a written notification of such postponement. ‘‘(2)(A) Notwithstanding any other provision of law and subject 

to paragraph (3), the date for the submittal to the congressional intelligence committees of any report described in subparagraph (B) 

may be postponed by not more than 30 days from the date otherwise 

specified in the provision of law for the submittal of such report if 

the official required to submit such report submits to the congressional intelligence committees a written notification of such postponement. ‘‘(B) A report described in this subparagraph is any report on 

intelligence or intelligence-related activities of the United States 

Government that is submitted under a provision of law requiring 

the submittal of only a single report. ‘‘(3)(A) The date for the submittal of a report whose submittal 

is postponed under paragraph (1) or (2) may be postponed beyond 

the time provided for the submittal of such report under such paragraph if the official required to submit such report submits to the 

congressional intelligence committees a written certification that 

preparation and submittal of such report at such time will impede 

the work of officers or employees of the intelligence community in a 

manner that will be detrimental to the national security of the 

United States. ‘‘(B) A certification with respect to a report under subparagraph 

(A) shall include a proposed submittal date for such report, and 

such report shall be submitted not later than that date.’’. 

(2) The table of sections for the National Security Act of 1947, 

as amended by section 311 of this Act, is further amended by inserting after the item relating to section 506 the following new item: 

‘‘Sec. 507. Dates for submittal of various annual and semiannual reports to the congressional intelligence committees.’’.

(b) CONFORMING AMENDMENTS TO EXISTING REPORTING REQUIREMENTS.—

(1) NATIONAL SECURITY ACT OF 1947.—(A) Subsection (d) of 

section 105 of the National Security Act of 1947 (50 U.S.C. 403–

5) is amended to read as follows: 

‘‘(d) ANNUAL EVALUATION OF PERFORMANCE AND RESPONSIVENESS OF CERTAIN ELEMENTS OF INTELLIGENCE COMMUNITY.—(1) 

Not later each year than the date provided in section 507, the Director shall submit to the congressional intelligence committees the 

evaluation described in paragraph (3). ‘‘(2) The Director shall submit each year to the Committee on 

Foreign Intelligence of the National Security Council, and to the 

Committees on Armed Services and Appropriations of the Senate 

and House of Representatives, the evaluation described in paragraph (3). 

40

‘‘(3) An evaluation described in this paragraph is an evaluation 

of the performance and responsiveness of the National Security 

Agency, the National Reconnaissance Office, and the National Imagery and Mapping Agency in meeting their respective national missions.‘‘(4) The Director shall submit each evaluation under this subsection in consultation with the Secretary of Defense and the Chairman of the Joint Chiefs of Staff.’’. (B) Section 109 of that Act (50 U.S.C. 404d) is amended— (i) in subsection (a), by striking paragraph (1) and inserting the following new paragraph (1): ‘‘(1)(A) Not later each year than the date provided in section 

507, the President shall submit to the congressional intelligence 

committees a report on the requirements of the United States for intelligence and the activities of the intelligence community. ‘‘(B) Not later than January 31 each year, and included with 

the budget of the President for the next fiscal year under section 

1105(a) of title 31, United States Code, the President shall submit 

to the appropriate congressional committees the report described in 

subparagraph (A).’’; 

(ii) in subsection (c), as amended by section 803(a) of 

the Intelligence Renewal and Reform Act of 1996 (title VIII 

of Public Law 104–293; 110 Stat. 3475)— (I) in paragraph (1), by striking ‘‘The Select Committee on Intelligence, the Committee on Appropriations,’’ and inserting ‘‘The Committee on Appropriations’’; and 

(II) in paragraph (2), by striking ‘‘The Permanent 

Select Committee on Intelligence, the Committee on Appropriations,’’ and inserting ‘‘The Committee on Appropriations’’; and 

(iii) by striking subsection (c), as added by section 

304(a) of the Intelligence Authorization Act for Fiscal Year 

1994 (Public Law 103–178; 107 Stat. 2034). 

(C) Section 112(b) of that Act (50 U.S.C. 404g(b)) is amended by adding at the end the following new paragraph: 

‘‘(3) In the case of periodic reports required to be submitted 

under the first sentence of paragraph (1) to the congressional intelligence committees, the submittal dates for such reports shall be as 

provided in section 507.’’. 

(D) Section 114 of that Act (50 U.S.C. 404i) is amended—

(i) in subsection (a)—

(I) in paragraph (1), by striking ‘‘the congressional 

intelligence committees and’’; 

(II) by redesignating paragraphs (2) and (3) as 

paragraphs (3) and (4), respectively; and 

(III) by inserting after paragraph (1) the following 

new paragraph (2): 

‘‘(2) Not later each year than the date provided in section 507, 

the Director shall submit to the congressional intelligence committees the report required to be submitted under paragraph (1) during 

the preceding year.’’; and 

(ii) in subsection (b)(1), by striking ‘‘, on an annual 

basis’’ and all that follows through ‘‘leadership’’ and inserting ‘‘submit to the congressional leadership on an annual 

41

basis, and to the congressional intelligence committees on 

the date each year provided in section 507,’’. 

(E) Section 603 of that Act (50 U.S.C. 423) is amended—

(i) in subsection (a), by adding at the end the following 

new sentence: ‘‘The date for the submittal of the report shall 

be the date provided in section 507.’’; and 

(ii) in subsection (b), by striking the second sentence. 

(2) CENTRAL INTELLIGENCE AGENCY ACT OF 1949.—Section 

17(d)(1) of the Central Intelligence Agency Act of 1949 (50 

U.S.C. 403q(d)(1)) is amended in the second sentence by striking ‘‘Within thirty days of receipt of such reports,’’ and inserting 

‘‘Not later than the dates each year provided for the transmittal 

of such reports in section 507 of the National Security Act of 

1947,’’. 

(3) CLASSIFIED INFORMATION PROCEDURES ACT.—Section 13 

of the Classified Information Procedures Act (18 U.S.C. App.) 

is amended—

(A) by redesignating subsection (b) as subsection (c); 

and 

(B) by inserting after subsection (a) the following new 

subsection (b): 

‘‘(b) In the case of the semiannual reports (whether oral or written) required to be submitted under subsection (a) to the Permanent 

Select Committee on Intelligence of the House of Representatives 

and the Select Committee on Intelligence of the Senate, the submittal dates for such reports shall be as provided in section 507 of 

the National Security Act of 1947.’’. 

(4) TITLE 10, UNITED STATES CODE.—(A) Section 437 of title 

10, United States Code, is amended—

(i) in subsection (c), by striking ‘‘Not later than’’ and 

all that follows through ‘‘of Congress’’ and inserting ‘‘Not 

later each year than the date provided in section 507 of the 

National Security Act of 1947, the Secretary shall submit 

to the congressional intelligence committees (as defined in 

section 3 of that Act (50 U.S.C. 401a))’’; and 

(ii) by striking subsection (d). 

(B) Section 1611(e) of that title is amended—

(i) in paragraph (1), by striking ‘‘paragraph (2)’’ and 

inserting ‘‘paragraph (3)’’; 

(ii) by redesignating paragraph (2) as paragraph (3); 

and 

(iii) by inserting after paragraph (1) the following new 

paragraph (2): 

‘‘(2) In the case of a report required to be submitted under paragraph (1) to the Select Committee on Intelligence of the Senate and 

the Permanent Select Committee on Intelligence of the House of Representatives, the date for the submittal of such report shall be as 

provided in section 507 of the National Security Act of 1947.’’.

(5) INTELLIGENCE AUTHORIZATION ACTS.—(A) Section 809 of 

the Counterintelligence and Security Enhancements Act of 1994 

(title VIII of Public Law 103–359; 108 Stat. 3454; 50 U.S.C. 

App. 2170b) is amended by striking subsection (b) and inserting 

the following new subsection (b): 

‘‘(b) ANNUAL UPDATE.—

42

‘‘(1) SUBMITTAL TO CONGRESSIONAL INTELLIGENCE COMMIT- TEES.—Not later each year than the date provided in section 

507 of the National Security Act of 1947, the President shall 

submit to the congressional intelligence committees a report updating the information referred to in subsection (a)(1)(D). ‘‘(2) SUBMITTAL TO CONGRESSIONAL LEADERSHIP.—Not later 

than April 14 each year, the President shall submit to the congressional leadership a report updating the information referred to in subsection (a)(1)(D). ‘‘(3) DEFINITIONS.—In this subsection: ‘‘(A) CONGRESSIONAL INTELLIGENCE COMMITTEES.—The 

term ‘congressional intelligence committees’ has the meaning given that term in section 3 of the National Security 

Act of 1947 (50 U.S.C. 401a). ‘‘(B) CONGRESSIONAL LEADERSHIP.—The term ‘congressional leadership’ means the Speaker and the minority leader of the House of Representatives and the majority leader and the minority leader of the Senate.’’. (B) Paragraph (6) of section 811(c) of that Act (50 U.S.C. 

402a(c)) is amended to read as follows: 

‘‘(6)(A) Not later each year than the date provided in section 507 

of the National Security Act of 1947, the Director of the Federal Bureau of Investigation shall submit to the congressional intelligence 

committees (as defined in section 3 of that Act (50 U.S.C. 401a)) a 

report with respect to compliance with paragraphs (1) and (2) during the previous calendar year. ‘‘(B) Not later than February 1 each year, the Director shall, in 

accordance with applicable security procedures, submit to the Committees on the Judiciary of the Senate and House of Representatives 

a report with respect to compliance with paragraphs (1) and (2) 

during the previous calendar year. ‘‘(C) The Director of the Federal Bureau of Investigation shall 

submit each report under this paragraph in consultation with the 

Director of Central Intelligence and the Secretary of Defense.’’. 

(C) Section 721 of the Combatting Proliferation of Weapons 

of Mass Destruction Act of 1996 (title VII of Public Law 104–

293; 110 Stat. 3474; 50 U.S.C. 2366) is amended—

(i) in subsection (a), by striking ‘‘Not later than’’ and 

all that follows through ‘‘the Director’’ and inserting ‘‘The 

Director’’; 

(ii) by redesignating subsection (b) as subsection (c); 

(iii) by inserting after subsection (a) the following new 

subsection (b): 

‘‘(b) SUBMITTAL DATES.—(1) The report required by subsection 

(a) shall be submitted each year to the congressional intelligence 

committees and the congressional leadership on a semiannual basis 

on the dates provided in section 507 of the National Security Act of 

1947. 

‘‘(2) In this subsection: ‘‘(A) The term ‘congressional intelligence committees’ has 

the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 401a). ‘‘(B) The term ‘congressional leadership’ means the Speaker 

and the minority leader of the House of Representatives and the 

majority leader and the minority leader of the Senate.’’; and 

43

(iv) in subsection (c), as so redesignated, by striking ‘‘The reports’’ and inserting ‘‘Each report’’. (D) Section 308 of the Intelligence Authorization Act for 

Fiscal Year 1998 (Public Law 105–107; 111 Stat. 2253; 50 

U.S.C. 402a note) is amended— (i) in subsection (a)— (I) by striking ‘‘Not later than’’ and all that follows 

through ‘‘the Director of Central Intelligence’’ and inserting ‘‘The Director of Central Intelligence’’; and 

(II) by inserting ‘‘on an annual basis’’ after ‘‘to 

Congress’’; and 

(ii) by adding at the end the end the following new 

subsection (c): ‘‘(c) SUBMITTAL DATE OF REPORT TO LEADERSHIP OF CONGRES- SIONAL INTELLIGENCE COMMITTEES.—The date each year for the 

submittal to the Chairman and Ranking Member of the Permanent 

Select Committee on Intelligence of the House of Representatives 

and the Chairman and Vice Chairman of the Select Committee on 

Intelligence of the Senate of the report required by subsection (a) 

shall be the date provided in section 507 of the National Security 

Act of 1947.’’. (E) Section 322(a)(6)(D) of the Intelligence Authorization 

Act for Fiscal Year 2001 (Public Law 106–567; 114 Stat. 2844; 

22 U.S.C. 7302(a)(6)(D)) is amended— (i) in clause (i), by striking ‘‘Beginning on’’ and inserting ‘‘Except as provided in clause (ii), beginning on’’; 

(ii) by redesignating clause (ii) as clause (iii); 

(iii) by inserting after clause (i) the following new 

clause (ii): ‘‘(ii) SUBMITTAL DATE OF REPORTS TO CONGRES- SIONAL INTELLIGENCE COMMITTEES.—In the case of reports required to be submitted under clause (i) to the 

congressional intelligence committees (as defined in 

section 3 of the National Security Act of 1947 (50 

U.S.C. 401a)), the submittal dates for such reports 

shall be as provided in section 507 of that Act.’’; and 

(iv) in clause (iii), as so redesignated, by striking 

‘‘report’’ and inserting ‘‘reports’’.

(6) PUBLIC LAW 103–337.—Section 1012(c) of the National 

Defense Authorization Act for Fiscal Year 1995 (22 U.S.C. 

2291–4(c)) is amended— (A) in paragraph (1), by striking ‘‘Not later than’’ and 

inserting ‘‘Except as provided in paragraph (2), not later 

than’’; 

(B) by redesignating paragraph (2) as paragraph (3); 

and 

(C) by inserting after paragraph (1) the following new 

paragraph (2): ‘‘(2) In the case of a report required to be submitted under paragraph (1) to the congressional intelligence committees (as defined in 

section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), the 

submittal date for such report shall be as provided in section 507 

of that Act.’’. 

(7) DAVID L. BOREN NATIONAL SECURITY EDUCATION ACT OF

1991.—The David L. Boren National Security Education Act of 

44

1991 (title VIII of Public Law 102–183; 50 U.S.C. 1901 et seq.) 

is amended— (A) in section 806(a) (50 U.S.C. 1906(a))— (i) by inserting ‘‘(1)’’ before ‘‘The Secretary’’; 

(ii) in paragraph (1), as so designated, by striking ‘‘the Congress’’ and inserting ‘‘the congressional intelligence committees’’; 

(iii) by designating the second sentence as paragraph (2) and by aligning such paragraph with the 

paragraph added by clause (v); 

(iv) in paragraph (2), as so designated, by inserting ‘‘submitted to the President’’ after ‘‘The report’’; and 

(v) by adding at the end the following new paragraph (3): ‘‘(3) The report submitted to the congressional intelligence committees shall be submitted on the date provided in section 507 of the 

National Security Act of 1947.’’; and 

(B) in section 808 (50 U.S.C. 1908), by adding at the 

end the following new paragraph (5): 

‘‘(5) The term ‘congressional intelligence committees’ means—‘‘(A) the Select Committee on Intelligence of the Senate; 

and ‘‘(B) the Permanent Select Committee on Intelligence of 

the House of Representatives.’’. (8) FAIR CREDIT REPORTING ACT.—(A) Section 604(b)(4) of 

the Fair Credit Reporting Act (15 U.S.C. 1681b(b)(4)) is amended— (i) in subparagraph (D), by striking ‘‘Not later than’’ and inserting ‘‘Except as provided in subparagraph (E), not 

later than’’; 

(ii) by redesignating subparagraph (E) as subparagraph (F); and 

(iii) by inserting after subparagraph (D) the following 

new subparagraph (E): 

‘‘(E) REPORTS TO CONGRESSIONAL INTELLIGENCE COM- MITTEES.—In the case of a report to be submitted under 

subparagraph (D) to the congressional intelligence committees (as defined in section 3 of the National Security Act of 

1947 (50 U.S.C. 401a)), the submittal date for such report 

shall be as provided in section 507 of that Act.’’. (B) Section 625(h) of that Act (15 U.S.C. 1681u(h)) is 

amended—

(i) by inserting ‘‘(1)’’ before ‘‘On a semiannual basis,’’; 

and 

(ii) by adding at the end the following new paragraph: ‘‘(2) In the case of the semiannual reports required to be submitted under paragraph (1) to the Permanent Select Committee on 

Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate, the submittal dates for such reports shall be as provided in section 507 of the National Security 

Act of 1947.’’. 

(9) RIGHT TO FINANCIAL PRIVACY ACT OF 1978.—Section 

1114(a)(5)(C) of the Right to Financial Privacy Act of 1978 (12 

U.S.C. 3414(a)(5)(C)) is amended by striking ‘‘On a semiVerDate 0ct 31 2002 06:00 Nov 16, 2002 Jkt 019006 PO 00000 Frm 00044 Fmt 6659 Sfmt 6603 E:\HR\OC\HR789.XXX HR789
45

annual’’ and all that follows through ‘‘the Senate’’ and inserting 

‘‘On the dates provided in section 507 of the National Security 

Act of 1947, the Attorney General shall fully inform the congressional intelligence committees (as defined in section 3 of that 

Act (50 U.S.C. 401a))’’.

Subtitle C—Recurring Annual Reports 

SEC. 821. ANNUAL REPORT ON THREAT OF ATTACK ON THE UNITED 

STATES USING WEAPONS OF MASS DESTRUCTION. 

Section 114 of the National Security Act of 1947, as amended 

by section 353(b)(6) of this Act, is further amended—

(1) by redesignating subsection (d) as subsection (e); and 

(2) by inserting after subsection (c) the following new subsection (d): 

‘‘(d) ANNUAL REPORT ON THREAT OF ATTACK ON THE UNITED

STATES USING WEAPONS OF MASS DESTRUCTION.—(1) Not later 

each year than the date provided in section 507, the Director shall 

submit to the congressional committees specified in paragraph (3) a 

report assessing the following: 

‘‘(A) The current threat of attack on the United States using 

ballistic missiles or cruise missiles. 

‘‘(B) The current threat of attack on the United States using 

a chemical, biological, or nuclear weapon delivered by a system 

other than a ballistic missile or cruise missile. 

‘‘(2) Each report under paragraph (1) shall be a national intelligence estimate, or have the formality of a national intelligence estimate. 

‘‘(3) The congressional committees referred to in paragraph (1) 

are the following: 

‘‘(A) The congressional intelligence committees. 

‘‘(B) The Committees on Foreign Relations and Armed 

Services of the Senate.

‘‘(C) The Committees on International Relations and Armed 

Services of the House of Representatives.’’. 

SEC. 822. ANNUAL REPORT ON COVERT LEASES. 

Section 114 of the National Security Act of 1947, as amended 

by section 821 of this Act, is further amended—

(1) by redesignating subsection (e) as subsection (f); and 

(2) by inserting after subsection (d) the following new subsection (e): 

‘‘(e) ANNUAL REPORT ON COVERT LEASES.—(1) Not later each 

year than the date provided in section 507, the Director shall submit to the congressional intelligence committees a report on each 

covert lease of an element of the intelligence community that is in 

force as of the end of the preceding year. 

‘‘(2) Each report under paragraph (1) shall include the following: 

‘‘(A) A list of each lease described by that paragraph. 

‘‘(B) For each lease—

‘‘(i) the cost of such lease; 

‘‘(ii) the duration of such lease; 

‘‘(iii) the purpose of such lease; and 

‘‘(iv) the directorate or office that controls such lease.’’. 

46

SEC. 823. ANNUAL REPORT ON IMPROVEMENT OF FINANCIAL STATEMENTS OF CERTAIN ELEMENTS OF THE INTELLIGENCE 

COMMUNITY FOR AUDITING PURPOSES. 

(a) IN GENERAL.—Title I of the National Security Act of 1947 

(50 U.S.C. 402 et seq.) is amended by inserting after section 114 the 

following new section: 

‘‘ANNUAL REPORT ON IMPROVEMENT OF FINANCIAL STATEMENTS FOR

AUDITING PURPOSES

‘‘SEC. 114A. Not later each year than the date provided in section 507, the Director of Central Intelligence, the Director of the National Security Agency, the Director of the Defense Intelligence Agency, and the Director of the National Imagery and Mapping Agency 

shall each submit to the congressional intelligence committees a report describing the activities being undertaken by such official to ensure that the financial statements of such agency can be audited in 

accordance with applicable law and requirements of the Office of 

Management and Budget.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for the National Security Act of 1947 is amended by inserting after the item 

relating to section 114 the following new item:

‘‘Sec. 114A. Annual report on improvement of financial statements for auditing purposes.’’.

SEC. 824. ANNUAL REPORT ON ACTIVITIES OF FEDERAL BUREAU OF 

INVESTIGATION PERSONNEL OUTSIDE THE UNITED 

STATES. 

(a) ANNUAL REPORT.—Chapter 33 of title 28, United States 

Code, is amended by adding at the end the following new section: 

‘‘§ 540C. Annual report on activities of Federal Bureau of Investigation personnel outside the United States 

‘‘(a) The Director of the Federal Bureau of Investigation shall 

submit to the appropriate committees of Congress each year a report 

on the activities of personnel of the Federal Bureau of Investigation 

outside the United States. 

‘‘(b) The report under subsection (a) shall include the following: 

‘‘(1) For the year preceding the year in which the report is 

required to be submitted—

‘‘(A) the number of personnel of the Bureau posted or 

detailed outside the United States during the year; 

‘‘(B) a description of the coordination of the investigations, asset handling, liaison, and operational activities of 

the Bureau during the year with other elements of the intelligence community; and 

‘‘(C) a description of the extent to which information 

derived from activities described in subparagraph (B) was 

shared with other elements of the intelligence community. 

‘‘(2) For the year in which the report is required to be submitted—

‘‘(A) a description of the plans, if any, of the Director—

‘‘(i) to modify the number of personnel of the Bureau posted or detailed outside the United States; or 

‘‘(ii) to modify the scope of the activities of personnel of the Bureau posted or detailed outside the 

United States; and 

47

‘‘(B) a description of the manner and extent to which 

information derived from activities of the Bureau described 

in paragraph (1)(B) during the year will be shared with 

other elements of the intelligence community. 

‘‘(c) The date of the submittal each year of the report required 

by subsection (a) shall be the date provided in section 507 of the National Security Act of 1947. 

‘‘(d) In this section, the term ‘appropriate committees of Congress’ means—

‘‘(1) the Committees on the Judiciary of the Senate and 

House of Representatives; and 

‘‘(2) the congressional intelligence committees (as defined in 

section 3 of the National Security Act of 1947 (50 U.S.C. 

401a)).’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 33 of that title is amended by inserting after the 

item relating to section 540B the following new item:

‘‘540C. Annual report on activities of Federal Bureau of Investigation personnel outside the United States.’’.

SEC. 825. ANNUAL REPORTS OF INSPECTORS GENERAL OF THE INTELLIGENCE COMMUNITY ON PROPOSED RESOURCES AND 

ACTIVITIES OF THEIR OFFICES. 

Section 8H of the Inspector General Act of 1978 (5 U.S.C. App.) 

is amended—

(1) in subsection (f), by striking ‘‘this section’’ and inserting 

‘‘subsections (a) through (e)’’; 

(2) by redesignating subsection (g) as subsection (h); and 

(3) by inserting after subsection (f) the following new subsection (g): 

‘‘(g)(1) The Inspector General of the Defense Intelligence Agency, 

the National Imagery and Mapping Agency, the National Reconnaissance Office, and the National Security Agency shall each submit to the congressional intelligence committees each year a report 

that sets forth the following: 

‘‘(A) The personnel and funds requested by such Inspector 

General for the fiscal year beginning in such year for the activities of the office of such Inspector General in such fiscal year. 

‘‘(B) The plan of such Inspector General for such activities, 

including the programs and activities scheduled for review by 

the office of such Inspector General during such fiscal year. 

‘‘(C) An assessment of the current ability of such Inspector 

General to hire and retain qualified personnel for the office of 

such Inspector General. 

‘‘(D) Any matters that such Inspector General considers appropriate regarding the independence and effectiveness of the office of such Inspector General. 

‘‘(2) The submittal date for a report under paragraph (1) each 

year shall be the date provided in section 507 of the National Security Act of 1947. 

‘‘(3) In this subsection, the term ‘congressional intelligence committees’ shall have the meaning given that term in section 3 of the 

National Security Act of 1947 (50 U.S.C. 401a).’’. 

48

SEC. 826. ANNUAL REPORT ON COUNTERDRUG INTELLIGENCE MATTERS. 

(a) ANNUAL REPORT.—The Counterdrug Intelligence Coordinating Group shall submit to the appropriate committees of Congress each year a report on current counterdrug intelligence matters. 

The report shall include the recommendations of the Counterdrug 

Intelligence Coordinating Group on the appropriate number of permanent staff, and of detailed personnel, for the staff of the 

Counterdrug Intelligence Executive Secretariat. 

(b) SUBMITTAL DATE.—The date of the submittal each year of 

the report required by subsection (a) shall be the date provided in 

section 507 of the National Security Act of 1947, as added by section 

811 of this Act. 

(c) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In this 

section, the term ‘‘appropriate committees of Congress’’ means—

(1) the Committees on Appropriations of the Senate and 

House of Representatives; and 

(2) the congressional intelligence committees (as defined in 

section 3 of the National Security Act of 1947 (50 U.S.C. 401a)). 

SEC. 827. ANNUAL REPORT ON FOREIGN COMPANIES INVOLVED IN 

THE PROLIFERATION OF WEAPONS OF MASS DESTRUCTION THAT RAISE FUNDS IN THE UNITED STATES CAPITAL MARKETS. 

(a) ANNUAL REPORT REQUIRED.—The Director of Central Intelligence shall submit to the appropriate committees of Congress on 

an annual basis a report setting forth each foreign company described in subsection (b) that raised or attempted to raise funds in 

the United States capital markets during the preceding year. 

(b) COVERED FOREIGN COMPANIES.—A foreign company described in this subsection is any foreign company determined by the 

Director to be engaged or involved in the proliferation of weapons 

of mass destruction (including nuclear, biological, or chemical 

weapons) or the means to deliver such weapons. 

(c) SUBMITTAL DATE.—The date each year for the submittal of 

the report required by subsection (a) shall be the date provided in 

section 507 of the National Security Act of 1947, as added by section 

811 of this Act. 

(d) FORM OF REPORTS.—Each report under subsection (a) shall 

be submitted in unclassified form, but may include a classified 

annex. 

(e) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In this 

section, the term ‘‘appropriate committees of Congress’’ means—

(1) the Select Committee on Intelligence of the Senate and 

the Permanent Select Committee on Intelligence of the House of 

Representatives; 

(2) the Committees on Armed Services, Banking, Housing, 

and Urban Affairs, Governmental Affairs, and Foreign Relations of the Senate; and 

(3) the Committees on Armed Services, Financial Services, 

Government Reform, and International Relations of the House 

of Representatives.

49

Subtitle D—Other Reports 

SEC. 831. REPORT ON EFFECT OF COUNTRY-RELEASE RESTRICTIONS 

ON ALLIED INTELLIGENCE-SHARING RELATIONSHIPS. 

(a) REPORT.—Not later than 90 days after the date of the enactment of this Act, the Director of Central Intelligence shall, in consultation with the Secretary of Defense, submit to the congressional 

intelligence committees a report containing an assessment of the effect of the use of ‘‘NOFORN’’ classifications, and of other countryrelease policies, procedures, and classification restrictions, on intelligence-sharing relationships and coordinated intelligence operations and military operations between the United States and its allies. The report shall include an assessment of the effect of the use 

of such classifications, and of such policies, procedures, and restrictions, on counterterrorism operations in Afghanistan and elsewhere. 

(b) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED.—In 

this section, the term ‘‘congressional intelligence committee’’

means—

(1) the Select Committee on Intelligence of the Senate; and

(2) the Permanent Select Committee on Intelligence of the 

House of Representatives. 

SEC. 832. EVALUATION OF POLICIES AND PROCEDURES OF DEPARTMENT OF STATE ON PROTECTION OF CLASSIFIED INFORMATION AT DEPARTMENT HEADQUARTERS. 

(a) EVALUATION REQUIRED.—Not later than December 31 of 

2002, 2003, and 2004, the Inspector General of the Department of 

State shall conduct an evaluation of the policies and procedures of 

the Department on the protection of classified information at the 

Headquarters of the Department, including compliance with the directives of the Director of Central Intelligence (DCIDs) regarding the 

storage and handling of Sensitive Compartmented Information 

(SCI) material. 

(b) ANNUAL REPORT.—Except as provided in subsection (c), not 

later than February 1 of 2003, 2004, and 2005, the Inspector General shall submit to the following committees a report on the evaluation conducted under subsection (a) during the preceding year: 

(1) The congressional intelligence committees. 

(2) The Committee on Foreign Relations of the Senate and 

the Committee on International Relations of the House of Representatives. 

(c) EXCEPTION.—The date each year for the submittal of a report under subsection (b) may be postponed in accordance with section 507(d) of the National Security Act of 1947, as added by section 

811 of this Act. 

(d) CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED.—In 

this section, the term ‘‘congressional intelligence committees’’

means—

(1) the Select Committee on Intelligence of the Senate; and 

(2) the Permanent Select Committee on Intelligence of the 

House of Representatives.

50

Subtitle E—Repeal of Certain Report Requirements 

SEC. 841. REPEAL OF CERTAIN REPORT REQUIREMENTS. 

(a) ANNUAL REPORT ON THE DETAIL OF INTELLIGENCE COMMUNITY PERSONNEL.—Section 113 of the National Security Act of 1947 

(50 U.S.C. 404h) is amended by striking subsection (c). 

(b) ANNUAL REPORT ON EXERCISE OF NATIONAL SECURITY

AGENCY VOLUNTARY SEPARATION PAY AUTHORITY.—Section 301(j) 

of the National Security Act of 1947 (50 U.S.C. 409a(j)), as amended by section 353(b)(2)(A) of this Act, is further amended—

(1) by striking ‘‘REPORTING REQUIREMENTS.—’’ and all that follows through ‘‘The Director may’’ and 

inserting ‘‘NOTIFICATION OF EXERCISE OF AUTHORITY.—The Director may’’; and 

(2) by striking paragraph (2). 

(c) ANNUAL REPORT ON TRANSFERS OF AMOUNTS FOR ACQUISITION OF LAND BY THE CENTRAL INTELLIGENCE AGENCY.—Section 

5(c)(2) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 

403f(c)(2)) is amended by striking ‘‘an annual report on the transfers of sums described in paragraph (1).’’ and inserting ‘‘a report on 

the transfer of sums described in paragraph (1) each time that authority is exercised.’’. 

(d) ANNUAL REPORT ON USE OF CIA PERSONNEL AS SPECIAL

POLICEMEN.—Section 15(a) of the Central Intelligence Agency Act of 

1949 (50 U.S.C. 403o(a)) is amended by striking paragraph (5). 

(e) ANNUAL AUDIT OF THE CENTRAL SERVICES PROGRAM OF THE

CENTRAL INTELLIGENCE AGENCY.—Section 21 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403u) is amended—

(1) by striking subsection (g); and 

(2) by redesignating subsection (h) as subsection (g). 

(f) ANNUAL REPORT ON SPECIAL POLICE AUTHORITY FOR THE

NATIONAL SECURITY AGENCY.—Section 11(a)(5) of the National Security Agency Act of 1959 (50 U.S.C. 402 note) is amended by inserting ‘‘through 2004’’ after ‘‘Not later than July 1 each year’’.

TITLE IX—COUNTERINTELLIGENCE ACTIVITIES 

SEC. 901. SHORT TITLE; PURPOSE. 

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

‘‘Counterintelligence Enhancement Act of 2002’’. 

(b) PURPOSE.—The purpose of this title is to facilitate the enhancement of the counterintelligence activities of the United States 

Government by—

(1) enabling the counterintelligence community of the 

United States Government to fulfill better its mission of identifying, assessing, prioritizing, and countering the intelligence 

threats to the United States; 

(2) ensuring that the counterintelligence community of the 

United States Government acts in an efficient and effective 

manner; and 

(3) providing for the integration of all the counterintelligence activities of the United States Government. 

SEC. 902. NATIONAL COUNTERINTELLIGENCE EXECUTIVE. 

(a) ESTABLISHMENT.—(1) There shall be a National Counterintelligence Executive, who shall be appointed by the President. 

51

(2) It is the sense of Congress that the President should seek the 

views of the Attorney General, Secretary of Defense, and Director of 

Central Intelligence in selecting an individual for appointment as 

the Executive. 

(b) MISSION.—The mission of the National Counterintelligence 

Executive shall be to serve as the head of national counterintelligence for the United States Government. 

(c) DUTIES.—Subject to the direction and control of the President, the duties of the National Counterintelligence Executive are as 

follows:

(1) To carry out the mission referred to in subsection (b). 

(2) To act as chairperson of the National Counterintelligence Policy Board under section 811 of the Counterintelligence and Security Enhancements Act of 1994 (title VIII of 

Public Law 103–359; 50 U.S.C. 402a), as amended by section 

903 of this Act. 

(3) To act as head of the Office of the National Counterintelligence Executive under section 904. 

(4) To participate as an observer on such boards, committees, and entities of the executive branch as the President considers appropriate for the discharge of the mission and functions of the Executive and the Office of the National Counterintelligence Executive under section 904. 

SEC. 903. NATIONAL COUNTERINTELLIGENCE POLICY BOARD. 

(a) CHAIRPERSON.—Section 811 of the Counterintelligence and 

Security Enhancements Act of 1994 (title VII of Public Law 103–

359; 50 U.S.C. 402a), as amended by section 811(b)(5)(B) of this 

Act, is further amended—

(1) by striking subsection (b); 

(2) by redesignating subsection (c) as subsection (e); and 

(3) by inserting after subsection (a) the following new subsection (b): 

‘‘(b) CHAIRPERSON.—The National Counterintelligence Executive 

under section 902 of the Counterintelligence Enhancement Act of 

2002 shall serve as the chairperson of the Board.’’.

(b) MEMBERSHIP.—That section is further amended by inserting 

after subsection (b), as amended by subsection (a)(3) of this section, 

the following new subsection (c): 

‘‘(c) MEMBERSHIP.—The membership of the National Counterintelligence Policy Board shall consist of the following: 

‘‘(1) The National Counterintelligence Executive. 

‘‘(2) Senior personnel of departments and elements of the 

United States Government, appointed by the head of the department or element concerned, as follows: 

‘‘(A) The Department of Justice, including the Federal 

Bureau of Investigation. 

‘‘(B) The Department of Defense, including the Joint 

Chiefs of Staff. 

‘‘(C) The Department of State. 

‘‘(D) The Department of Energy. 

‘‘(E) The Central Intelligence Agency. 

‘‘(F) Any other department, agency, or element of the 

United States Government specified by the President.’’. 

52

(c) FUNCTIONS AND DISCHARGE OF FUNCTIONS.—That section is 

further amended by inserting after subsection (c), as amended by 

subsection (b) of this section, the following new subsection: ‘‘(d) FUNCTIONS AND DISCHARGE OF FUNCTIONS.—(1) The Board 

shall— ‘‘(A) serve as the principal mechanism for— ‘‘(i) developing policies and procedures for the approval 

of the President to govern the conduct of counterintelligence 

activities; and ‘‘(ii) upon the direction of the President, resolving conflicts that arise between elements of the Government conducting such activities; and 

‘‘(B) act as an interagency working group to— ‘‘(i) ensure the discussion and review of matters relating to the implementation of the Counterintelligence Enhancement Act of 2002; and ‘‘(ii) provide advice to the National Counterintelligence 

Executive on priorities in the implementation of the National Counterintelligence Strategy produced by the Office 

of the National Counterintelligence Executive under section 

904(e)(2) of that Act. 

‘‘(2) The Board may, for purposes of carrying out its functions 

under this section, establish such interagency boards and working 

groups as the Board considers appropriate.’’. 

SEC. 904. OFFICE OF THE NATIONAL COUNTERINTELLIGENCE EXECUTIVE. 

(a) ESTABLISHMENT.—There shall be an Office of the National 

Counterintelligence Executive. 

(b) HEAD OF OFFICE.—The National Counterintelligence Executive shall be the head of the Office of the National Counterintelligence Executive. 

(c) LOCATION OF OFFICE.—The Office of the National Counterintelligence Executive shall be located in the Office of the Director 

of Central Intelligence. 

(d) GENERAL COUNSEL.—(1) There shall be in the Office of the 

National Counterintelligence Executive a general counsel who shall 

serve as principal legal advisor to the National Counterintelligence 

Executive. 

(2) The general counsel shall—

(A) provide legal advice and counsel to the Executive on 

matters relating to functions of the Office; 

(B) ensure that the Office complies with all applicable laws, 

regulations, Executive orders, and guidelines; and 

(C) carry out such other duties as the Executive may specify. 

(e) FUNCTIONS.—Subject to the direction and control of the National Counterintelligence Executive, the functions of the Office of 

the National Counterintelligence Executive shall be as follows: 

(1) NATIONAL THREAT IDENTIFICATION AND PRIORITIZATION

ASSESSMENT.—Subject to subsection (f), in consultation with 

appropriate department and agencies of the United States Government, and private sector entities, to produce on an annual 

basis a strategic planning assessment of the counterintelligence 

requirements of the United States to be known as the National 

Threat Identification and Prioritization Assessment.

53

(2) NATIONAL COUNTERINTELLIGENCE STRATEGY.—Subject 

to subsection (f), in consultation with appropriate department 

and agencies of the United States Government, and private sector entities, and based on the most current National Threat 

Identification and Prioritization Assessment under paragraph 

(1), to produce on an annual basis a strategy for the counterintelligence programs and activities of the United States Government to be known as the National Counterintelligence Strategy. 

(3) IMPLEMENTATION OF NATIONAL COUNTERINTELLIGENCE

STRATEGY.—To evaluate on an ongoing basis the implementation of the National Counterintelligence Strategy and to submit 

to the President periodic reports on such evaluation, including 

a discussion of any shortfalls in the implementation of the 

Strategy and recommendations for remedies for such shortfalls. 

(4) NATIONAL COUNTERINTELLIGENCE STRATEGIC ANALYSES.—As directed by the Director of Central Intelligence and 

in consultation with appropriate elements of the departments 

and agencies of the United States Government, to oversee and 

coordinate the production of strategic analyses of counterintelligence matters, including the production of counterintelligence 

damage assessments and assessments of lessons learned from 

counterintelligence activities. 

(5) NATIONAL COUNTERINTELLIGENCE PROGRAM BUDGET.—

In consultation with the Director of Central Intelligence—

(A) to coordinate the development of budgets and resource allocation plans for the counterintelligence programs 

and activities of the Department of Defense, the Federal Bureau of Investigation, the Central Intelligence Agency, and 

other appropriate elements of the United States Government; 

(B) to ensure that the budgets and resource allocation 

plans developed under subparagraph (A) address the objectives and priorities for counterintelligence under the National Counterintelligence Strategy; and 

(C) to submit to the National Security Council periodic 

reports on the activities undertaken by the Office under 

subparagraphs (A) and (B). 

(6) NATIONAL COUNTERINTELLIGENCE COLLECTION AND TARGETING COORDINATION.—To develop priorities for counterintelligence investigations and operations, and for collection of counterintelligence, for purposes of the National Counterintelligence 

Strategy, except that the Office may not—

(A) carry out any counterintelligence investigations or 

operations; or 

(B) establish its own contacts, or carry out its own activities, with foreign intelligence services. 

(7) NATIONAL COUNTERINTELLIGENCE OUTREACH, WATCH, 

AND WARNING.—

(A) COUNTERINTELLIGENCE VULNERABILITY SURVEYS.—

To carry out and coordinate surveys of the vulnerability of 

the United States Government, and the private sector, to intelligence threats in order to identify the areas, programs, 

and activities that require protection from such threats. 

54

(B) OUTREACH.—To carry out and coordinate outreach 

programs and activities on counterintelligence to other elements of the United States Government, and the private 

sector, and to coordinate the dissemination to the public of 

warnings on intelligence threats to the United States. 

(C) RESEARCH AND DEVELOPMENT.—To ensure that research and development programs and activities of the 

United States Government, and the private sector, direct attention to the needs of the counterintelligence community 

for technologies, products, and services. 

(D) TRAINING AND PROFESSIONAL DEVELOPMENT.—To 

develop policies and standards for training and professional development of individuals engaged in counterintelligence activities and to manage the conduct of joint training exercises for such personnel. 

(f) ADDITIONAL REQUIREMENTS REGARDING NATIONAL THREAT

IDENTIFICATION AND PRIORITIZATION ASSESSMENT AND NATIONAL

COUNTERINTELLIGENCE STRATEGY.—(1) A National Threat Identification and Prioritization Assessment under subsection (e)(1), and 

any modification of such assessment, shall not go into effect until 

approved by the President. 

(2) A National Counterintelligence Strategy under subsection 

(e)(2), and any modification of such strategy, shall not go into effect 

until approved by the President. 

(3) The National Counterintelligence Executive shall submit to 

the congressional intelligence committees each National Threat 

Identification and Prioritization Assessment, or modification thereof, and each National Counterintelligence Strategy, or modification 

thereof, approved under this section. 

(4) In this subsection, the term ‘‘congressional intelligence committees’’ means—

(A) the Select Committee on Intelligence of the Senate; and 

(B) the Permanent Select Committee on Intelligence of the 

House of Representatives. 

(g) PERSONNEL.—(1) Personnel of the Office of the National 

Counterintelligence Executive may consist of personnel employed by 

the Office or personnel on detail from any other department, agency, 

or element of the Federal Government. Any such detail may be on 

a reimbursable or nonreimbursable basis, at the election of the head 

of the agency detailing such personnel. 

(2) Notwithstanding section 104(d) or any other provision of 

law limiting the period of the detail of personnel on a nonreimbursable basis, the detail of an officer or employee of United States or 

a member of the Armed Forces under paragraph (1) on a nonreimbursable basis may be for any period in excess of one year that 

the National Counterintelligence Executive and the head of the department, agency, or element concerned consider appropriate. 

(3) The employment of personnel by the Office, including the appointment, compensation and benefits, management, and separation 

of such personnel, shall be governed by the provisions of law on 

such matters with respect to the personnel of the Central Intelligence 

Agency, except that, for purposes of the applicability of such provisions of law to personnel of the Office, the National Counterintelligence Executive shall be treated as the head of the Office. 

55

(4) Positions in the Office shall be excepted service positions for 

purposes of title 5, United States Code. 

(h) SUPPORT.—(1) The Attorney General, Secretary of Defense, 

and Director of Central Intelligence may each provide the Office of 

the National Counterintelligence Executive such support as may be 

necessary to permit the Office to carry out its functions under this 

section. 

(2) Subject to any terms and conditions specified by the Director 

of Central Intelligence, the Director may provide administrative and 

contract support to the Office as if the Office were an element of the 

Central Intelligence Agency. 

(3) Support provided under this subsection may be provided on 

a reimbursable or nonreimbursable basis, at the election of the official providing such support. 

(i) AVAILABILITY OF FUNDS FOR REIMBURSEMENT.—The National Counterintelligence Executive may, from amounts available 

for the Office, transfer to a department or agency detailing personnel under subsection (g), or providing support under subsection 

(h), on a reimbursable basis amounts appropriate to reimburse such 

department or agency for the detail of such personnel or the provision of such support, as the case may be. 

(j) CONTRACTS.—(1) Subject to paragraph (2), the National 

Counterintelligence Executive may enter into any contract, lease, cooperative agreement, or other transaction that the Executive considers appropriate to carry out the functions of the Office of the National Counterintelligence Executive under this section. 

(2) The authority under paragraph (1) to enter into contracts, 

leases, cooperative agreements, and other transactions shall be subject to any terms, conditions, and limitations applicable to the Central Intelligence Agency under law with respect to similar contracts, 

leases, cooperative agreements, and other transactions. 

(k) TREATMENT OF ACTIVITIES UNDER CERTAIN ADMINISTRATIVE

LAWS.—The files of the Office shall be treated as operational files 

of the Central Intelligence Agency for purposes of section 701 of the 

National Security Act of 1947 (50 U.S.C. 431) to the extent such 

files meet criteria under subsection (b) of that section for treatment 

of files as operational files of an element of the Agency. 

(l) OVERSIGHT BY CONGRESS.—The location of the Office of the 

National Counterintelligence Executive within the Office of the Director of Central Intelligence shall not be construed as affecting access by Congress, or any committee of Congress, to—

(1) any information, document, record, or paper in the possession of the Office; or 

(2) any personnel of the Office. 

(m) CONSTRUCTION.—Nothing in this section shall be construed 

as affecting the authority of the Director of Central Intelligence, the 

Secretary of Defense, the Secretary of State, the Attorney General, 

or the Director of the Federal Bureau of Investigation as provided 

or specified under the National Security Act of 1947 or under other 

provisions of law.

56

TITLE X—NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT PROGRAMS OF THE 

UNITED STATES INTELLIGENCE COMMUNITY 

SEC. 1001. FINDINGS. 

Congress makes the following findings:

(1) Research and development efforts under the purview of 

the intelligence community are vitally important to the national 

security of the United States. 

(2) The intelligence community must operate in a dynamic, 

highly-challenging environment, characterized by rapid technological growth, against a growing number of hostile, technically-sophisticated threats. Research and development programs under the purview of the intelligence community are critical to ensuring that intelligence agencies, and their personnel, 

are provided with important technological capabilities to detect, 

characterize, assess, and ultimately counter the full range of 

threats to the national security of the United States. 

(3) There is a need to review the full range of current research and development programs under the purview of the intelligence community, evaluate such programs against the scientific and technological fields judged to be of most importance, 

and articulate program and resource priorities for future research and development activities to ensure a unified and coherent research and development program across the entire intelligence community. 

SEC. 1002. NATIONAL COMMISSION FOR THE REVIEW OF THE RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED 

STATES INTELLIGENCE COMMUNITY. 

(a) ESTABLISHMENT.—There is established a commission to be 

known as the ‘‘National Commission for the Review of the Research 

and Development Programs of the United States Intelligence Community’’ (in this title referred to as the ‘‘Commission’’). 

(b) COMPOSITION.—The Commission shall be composed of 12 

members, as follows: 

(1) The Deputy Director of Central Intelligence for Community Management. 

(2) A senior intelligence official of the Office of the Secretary of Defense, as designated by the Secretary of Defense. 

(3) Three members appointed by the majority leader of the 

Senate, in consultation with the Chairman of the Select Committee on Intelligence of the Senate, one from Members of the 

Senate and two from private life. 

(4) Two members appointed by the minority leader of the 

Senate, in consultation with the Vice Chairman of the Select 

Committee on Intelligence of the Senate, one from Members of 

the Senate and one from private life. 

(5) Three members appointed by the Speaker of the House 

of Representatives, in consultation with the Chairman of the 

Permanent Select Committee on Intelligence of the House of 

Representatives, one from Members of the House of Representatives and two from private life. 

(6) Two members appointed by the minority leader of the 

House of Representatives, in consultation with the ranking 

member of the Permanent Select Committee on Intelligence of 

57

the House of Representatives, one from Members of the House 

of Representatives and one from private life. 

(c) MEMBERSHIP.—(1) The individuals appointed from private 

life as members of the Commission shall be individuals who are nationally recognized for expertise, knowledge, or experience in— (A) research and development programs; 

(B) technology discovery and insertion; 

(C) use of intelligence information by national policymakers 

and military leaders; or 

(D) the implementation, funding, or oversight of the national security policies of the United States. 

(2) An official who appoints members of the Commission may 

not appoint an individual as a member of the Commission if, in the 

judgment of the official, such individual possesses any personal or 

financial interest in the discharge of any of the duties of the Commission. 

(3) All members of the Commission appointed from private life 

shall possess an appropriate security clearance in accordance with 

applicable laws and regulations concerning the handling of classified information. 

(d) CO-CHAIRS.—(1) The Commission shall have two co-chairs, 

selected from among the members of the Commission. 

(2) One co-chair of the Commission shall be a member of the 

Democratic Party, and one co-chair shall be a member of the Republican Party. 

(3) The individuals who serve as the co-chairs of the Commission shall be jointly agreed upon by the President, the majority 

leader of the Senate, the minority leader of the Senate, the Speaker 

of the House of Representatives, and the minority leader of the 

House of Representatives. 

(e) APPOINTMENT; INITIAL MEETING.—(1) Members of the Commission shall be appointed not later than 45 days after the date of 

the enactment of this Act. 

(2) The Commission shall hold its initial meeting on the date 

that is 60 days after the date of the enactment of this Act. 

(f) MEETINGS; QUORUM; VACANCIES.—(1) After its initial meeting, the Commission shall meet upon the call of the co-chairs of the 

Commission. 

(2) Six members of the Commission shall constitute a quorum 

for purposes of conducting business, except that two members of the 

Commission shall constitute a quorum for purposes of receiving testimony. 

(3) Any vacancy in the Commission shall not affect its powers, 

but shall be filled in the same manner in which the original appointment was made. 

(4) If vacancies in the Commission occur on any day after 45 

days after the date of the enactment of this Act, a quorum shall consist of a majority of the members of the Commission as of such day. 

(g) ACTIONS OF COMMISSION.—(1) The Commission shall act by 

resolution agreed to by a majority of the members of the Commission voting and present. 

(2) The Commission may establish panels composed of less than 

the full membership of the Commission for purposes of carrying out 

the duties of the Commission under this title. The actions of any 

such panel shall be subject to the review and control of the CommisVerDate 0ct 31 2002 06:00 Nov 16, 2002 Jkt 019006 PO 00000 Frm 00057 Fmt 6659 Sfmt 6603 E:\HR\OC\HR789.XXX HR789
58

sion. Any findings and determinations made by such a panel shall 

not be considered the findings and determinations of the Commission unless approved by the Commission. 

(3) Any member, agent, or staff of the Commission may, if authorized by the co-chairs of the Commission, take any action which 

the Commission is authorized to take pursuant to this title. 

(h) DUTIES.—The duties of the Commission shall be— (1) to conduct, until not later than the date on which the 

Commission submits the report under section 1007(a), the review described in subsection (i); and 

(2) to submit to the congressional intelligence committees, 

the Director of Central Intelligence, and the Secretary of Defense a final report on the results of the review. 

(i) REVIEW.—The Commission shall review the status of research and development programs and activities within the intelligence community, including— (1) an assessment of the advisability of modifying the scope 

of research and development for purposes of such programs and 

activities; 

(2) a review of the particular individual research and development activities under such programs; 

(3) an evaluation of the current allocation of resources for 

research and development, including whether the allocation of 

such resources for that purpose should be modified; 

(4) an identification of the scientific and technological 

fields judged to be of most importance to the intelligence community; 

(5) an evaluation of the relationship between the research 

and development programs and activities of the intelligence 

community and the research and development programs and 

activities of other departments and agencies of the Federal Government; and 

(6) an evaluation of the relationship between the research 

and development programs and activities of the intelligence 

community and the research and development programs and 

activities of the private sector. 

SEC. 1003. POWERS OF COMMISSION. 

(a) IN GENERAL.—(1) The Commission or, on the authorization 

of the Commission, any subcommittee or member thereof, may, for 

the purpose of carrying out the provisions of this title— (A) hold such hearings and sit and act at such times and 

places, take such testimony, receive such evidence, and administer such oaths; and 

(B) require, by subpoena or otherwise, the attendance and 

testimony of such witnesses and the production of such books, 

records, correspondence, memoranda, papers, and documents, 

as the Commission or such designated subcommittee or designated member considers necessary. 

(2) Subpoenas may be issued under subparagraph (1)(B) under 

the signature of the co-chairs of the Commission, and may be served 

by any person designated by such co-chairs. 

(3) The provisions of sections 102 through 104 of the Revised 

Statutes of the United States (2 U.S.C. 192–194) shall apply in the 

case of any failure of a witness to comply with any subpoena or to 

testify when summoned under authority of this section. 

59

(b) CONTRACTING.—The Commission may, to such extent and in 

such amounts as are provided in advance in appropriation Acts, 

enter into contracts to enable the Commission to discharge its duties 

under this title. 

(c) INFORMATION FROM FEDERAL AGENCIES.—The Commission 

may secure directly from any executive department, agency, bureau, 

board, commission, office, independent establishment, or instrumentality of the Government information, suggestions, estimates, and 

statistics for the purposes of this title. Each such department, agency, bureau, board, commission, office, establishment, or instrumentality shall, to the extent authorized by law, furnish such information, suggestions, estimates, and statistics directly to the Commission, upon request of the co-chairs of the Commission. The Commission shall handle and protect all classified information provided to 

it under this section in accordance with applicable statutes and regulations. 

(d) ASSISTANCE FROM FEDERAL AGENCIES.—(1) The Director of 

Central Intelligence shall provide to the Commission, on a nonreimbursable basis, such administrative services, funds, staff, facilities, and other support services as are necessary for the performance 

of the Commission’s duties under this title. 

(2) The Secretary of Defense may provide the Commission, on 

a nonreimbursable basis, with such administrative services, staff, 

and other support services as the Commission may request. 

(3) In addition to the assistance set forth in paragraphs (1) and 

(2), other departments and agencies of the United States may provide the Commission such services, funds, facilities, staff, and other 

support as such departments and agencies consider advisable and 

as may be authorized by law. 

(4) The Commission shall receive the full and timely cooperation of any official, department, or agency of the United States Government whose assistance is necessary for the fulfillment of the duties of the Commission under this title, including the provision of 

full and current briefings and analyses. 

(e) PROHIBITION ON WITHHOLDING INFORMATION.—No department or agency of the Government may withhold information from 

the Commission on the grounds that providing the information to 

the Commission would constitute the unauthorized disclosure of 

classified information or information relating to intelligence sources 

or methods. 

(f) POSTAL SERVICES.—The Commission may use the United 

States mails in the same manner and under the same conditions as 

the departments and agencies of the United States.

(g) GIFTS.—The Commission may accept, use, and dispose of 

gifts or donations of services or property in carrying out its duties 

under this title. 

SEC. 1004. STAFF OF COMMISSION. 

(a) IN GENERAL.—(1) The co-chairs of the Commission, in accordance with rules agreed upon by the Commission, shall appoint 

and fix the compensation of a staff director and such other personnel as may be necessary to enable the Commission to carry out 

its duties, without regard to the provisions of title 5, United States 

Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of 

chapter 53 of such title relating to classification and General SchedVerDate 0ct 31 2002 06:00 Nov 16, 2002 Jkt 019006 PO 00000 Frm 00059 Fmt 6659 Sfmt 6603 E:\HR\OC\HR789.XXX HR789
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ule pay rates, except that no rate of pay fixed under this subsection 

may exceed the equivalent of that payable to a person occupying a 

position at level V of the Executive Schedule under section 5316 of 

such title. 

(2) Any Federal Government employee may be detailed to the 

Commission without reimbursement from the Commission, and 

such detailee shall retain the rights, status, and privileges of his or 

her regular employment without interruption. 

(3) All staff of the Commission shall possess a security clearance in accordance with applicable laws and regulations concerning 

the handling of classified information. 

(b) CONSULTANT SERVICES.—(1) The Commission may procure 

the services of experts and consultants in accordance with section 

3109 of title 5, United States Code, but at rates not to exceed the 

daily rate paid a person occupying a position at level IV of the Executive Schedule under section 5315 of such title. 

(2) All experts and consultants employed by the Commission 

shall possess a security clearance in accordance with applicable 

laws and regulations concerning the handling of classified information.

SEC. 1005. COMPENSATION AND TRAVEL EXPENSES. 

(a) COMPENSATION.—(1) Except as provided in paragraph (2), 

each member of the Commission may be compensated at not to exceed the daily equivalent of the annual rate of basic pay in effect 

for a position at level IV of the Executive Schedule under section 

5315 of title 5, United States Code, for each day during which that 

member is engaged in the actual performance of the duties of the 

Commission under this title. 

(2) Members of the Commission who are officers or employees 

of the United States or Members of Congress shall receive no additional pay by reason of their service on the Commission. 

(b) TRAVEL EXPENSES.—While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission may be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service 

are allowed expenses under section 5703 of title 5, United States 

Code. 

SEC. 1006. TREATMENT OF INFORMATION RELATING TO NATIONAL SECURITY. 

(a) IN GENERAL.—(1) The Director of Central Intelligence shall 

assume responsibility for the handling and disposition of any information related to the national security of the United States that is 

received, considered, or used by the Commission under this title. 

(2) Any information related to the national security of the 

United States that is provided to the Commission by a congressional 

intelligence committee may not be further provided or released without the approval of the chairman of such committee. 

(b) ACCESS AFTER TERMINATION OF COMMISSION.—Notwithstanding any other provision of law, after the termination of the 

Commission under section 1007, only the Members and designated 

staff of the congressional intelligence committees, the Director of 

Central Intelligence (and the designees of the Director), and such 

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ignate shall have access to information related to the national security of the United States that is received, considered, or used by the 

Commission.

SEC. 1007. FINAL REPORT; TERMINATION. 

(a) FINAL REPORT.—Not later than September 1, 2003, the 

Commission shall submit to the congressional intelligence committees, the Director of Central Intelligence, and the Secretary of Defense a final report as required by section 1002(h)(2). 

(b) TERMINATION.—(1) The Commission, and all the authorities 

of this title, shall terminate at the end of the 120-day period beginning on the date on which the final report under subsection (a) is 

transmitted to the congressional intelligence committees. 

(2) The Commission may use the 120-day period referred to in 

paragraph (1) for the purposes of concluding its activities, including 

providing testimony to Congress concerning the final report referred 

to in that paragraph and disseminating the report. 

SEC. 1008. ASSESSMENTS OF FINAL REPORT. 

Not later than 60 days after receipt of the final report under 

section 1007(a), the Director of Central Intelligence and the Secretary of Defense shall each submit to the congressional intelligence 

committees an assessment by the Director or the Secretary, as the 

case may be, of the final report. Each assessment shall include such 

comments on the findings and recommendations contained in the 

final report as the Director or Secretary, as the case may be, considers appropriate. 

SEC. 1009. INAPPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS. 

(a) FEDERAL ADVISORY COMMITTEE ACT.—The provisions of the 

Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to 

the activities of the Commission under this title. 

(b) FREEDOM OF INFORMATION ACT.—The provisions of section 

552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), shall not apply to the activities, records, 

and proceedings of the Commission under this title. 

SEC. 1010. FUNDING. 

(a) TRANSFER FROM THE COMMUNITY MANAGEMENT ACCOUNT.—Of the amounts authorized to be appropriated by this Act 

for the Intelligence Technology Innovation Center of the Community 

Management Account, the Deputy Director of Central Intelligence 

for Community Management shall transfer to the Director of Central Intelligence $2,000,000 for purposes of the activities of the Commission under this title. 

(b) AVAILABILITY IN GENERAL.—The Director of Central Intelligence shall make available to the Commission, from the amount 

transferred to the Director under subsection (a), such amounts as 

the Commission may require for purposes of the activities of the 

Commission under this title. 

(c) DURATION OF AVAILABILITY.—Amounts made available to 

the Commission under subsection (b) shall remain available until 

expended. 

SEC. 1011. DEFINITIONS. 

In this title: 

62

(1) CONGRESSIONAL INTELLIGENCE COMMITTEES.—The term ‘‘congressional intelligence committees’’ means— (A) the Select Committee on Intelligence of the Senate; 

and 

(B) the Permanent Select Committee on Intelligence of 

the House of Representatives. 

(2) INTELLIGENCE COMMUNITY.—The term ‘‘intelligence 

community’’ has the meaning given that term in section 3(4) of 

the National Security Act of 1947 (50 U.S.C. 401a(4)).

And the Senate agree to the same.

From the Permanent Select Committee on Intelligence, for 

consideration of the House bill and the Senate amendment, and modifications committed to conference: 

PORTER J. GOSS, 

DOUG BEREUTER, 

MICHAEL N. CASTLE, 

SHERWOOD BOEHLERT, 

JIM GIBBONS, 

RANDY ‘‘DUKE’’ CUNNINGHAM, 

PETE HOEKSTRA, 

RICHARD BURR, 

SAXBY CHAMBLISS, 

TERRY EVERETT, 

NANCY PELOSI, 

SANFORD D. BISHOP, Jr., 

JANE HARMAN, 

TIM ROEMER, 

SILVESTRE REYES, 

LEONARD L. BOSWELL, 

COLLIN C. PETERSON, 

From the Committee on Armed Services, for consideration 

of defense tactical intelligence and related activities: 

ROBERT STUMP, 

DUNCAN HUNTER, 

Managers on the Part of the House.

BOB GRAHAM, 

JAY ROCKEFELLER, 

DIANNE FEINSTEIN, 

RON WYDEN, 

DICK DURBIN, 

JOHN EDWARDS, 

RICHARD SHELBY, 

JON KYL, 

MIKE DEWINE, 

FRED THOMPSON, 

DICK LUGAR, 

Managers on the Part of the Senate.

(63)

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF 

CONFERENCE 

The managers on the part of the House and the Senate at the 

conference on the disagreeing votes of the two Houses on the 

amendment of the Senate to the bill (H.R. 4628), to authorize appropriations for fiscal year 2003 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, submit the following joint statement to the House and the Senate in explanation 

of the effect of the action agreed upon by the managers and recommended in the accompanying conference report: 

The Senate amendment struck all of the House bill after the 

enacting clause and inserted a substitute text. 

The House recedes from its disagreement to the amendment of 

the Senate with an amendment that is a substitute for the House 

bill and the Senate amendment. The differences between the House 

bill, the Senate amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming 

changes made necessary by agreements reached by the conferees, 

and minor drafting and clarifying changes. 

THE NATION’S INTELLIGENCE CAPABILITIES—A NEW PERSPECTIVE

The conferees note that, in the wake of the September 11, 2001 

terrorist attacks, the fiscal year 2003 budget submitted by the 

President includes the most substantial increase for programs 

funded in the National Foreign Intelligence Program in history. 

This authorization bill supports that investment by focusing on authorizations that enhance programs and information sharing across 

the various Intelligence Community (IC) agencies. Further, the 

President’s funding increase appears to respond to congressional 

exhortations to develop a long-term funding program to correct serious IC deficiencies that have developed over the past decade. The 

conferees recognize that these deficiencies existed prior to September 11 and, indeed, the intelligence committees have been consistently highlighting these shortfalls for the past eight years. Put 

simply, although the end of the Cold War warranted a reordering 

of national priorities, the steady decline in intelligence funding 

since the mid-1990s left the nation with a diminished ability to address emerging threats—such as global terrorism—and the technical challenges of the 21st Century. Further, the IC’s lack of a corporate approach to addressing enduring intelligence problems 

helped to create a culture that hindered data collection (especially 

human intelligence collection), data sharing, and collaborative 

analysis.

In this budget, the conferees seek to highlight four priority 

areas that must receive significant, sustained attention beginning 

64

immediately if intelligence is to fulfill its role in our national security strategy. Those are: (1) improving information sharing and allsource analysis; (2) improving IC professional training with a major 

emphasis on developing language skills; (3) ensuring national imagery collection program viability and effectiveness; and (4) correcting enduring systemic problems, deficiencies in human intelligence, and rebuilding a robust research and development program. 

The conferees’ top priority last year was the revitalization of 

the NSA. Although this continues to be one of the conferees’ priority concerns, the focus this year must be on information sharing 

and cross-community analysis. The conferees note that the individual intelligence agencies and, moreover, their extremely talented and dedicated people, labor continuously to provide the absolute best intelligence products possible in defense of the nation. 

These efforts are, however, generally conducted in isolation from 

one another, and, most disturbingly, existing rules and procedures 

often restrict information from the community’s depth and breadth 

of analytic talent. Therefore, those individual efforts can usually 

only piece together fragments of the overall intelligence puzzle. 

What is critical in the post-9/11 era is having a community that is, 

to the maximum extent possible, devoid of information sharing restrictions and one that fosters a greater culture focused on collaborative analysis. The conferees have included detailed language on 

the need for the IC to breakdown information sharing barriers and 

the need to cease the practice of allowing agencies to routinely restrict ‘‘their data’’ from other agencies, including law enforcement. 

In order to maximize the IC’s analytic effectiveness and output 

further, we must ensure that the dedicated professionals of the IC 

are properly trained and provided the skills necessary for the tasks 

that are required to fight the global war on terrorism and other 

emerging threats. For a number of years, the House and Senate Intelligence Committees, separately and jointly, have stated specific 

concerns about the dearth of language skills throughout the IC. 

The lack of depth in the so-called ‘low density’ languages was 

acutely experienced during operations in Afghanistan. The conferees believe this is unacceptable and have put a great deal of emphasis in training efforts, particularly on foreign language training. 

With respect to the nation’s imagery architecture, the conferees 

are very concerned about the viability and effectiveness of a future 

overhead architecture, given the apparent lack of a comprehensive 

architectural plan for the overhead system of systems, specifically 

in the area of imagery. For example, the conferees believe the administration is facing a major challenge in addressing technical 

and funding problems with the Future Imagery Architecture (FIA) 

program that could force untenable trades between critical future 

capabilities and legacy systems. In this conference report, the conferees have addressed the known FIA problems as well as the need 

to develop imagery alternatives if developmental problems exist or 

persist. The conferees note, however, a continuing pattern by which 

many individual programs have been justified and provided resources with little or no regard to the entire set of IC collection capabilities, including space-based and airborne. The conferees believe that, although individual systems may have specific merit, 

65

the real measure of merit is in what the overall collective mix 

brings to bear against the range of threats to U.S. national security. Moreover, the ability to fund all legacy, developmental, and 

desired systems has a finite limit. Therefore, there is a critical 

need to review each program in the context of the others, so that 

viable trades can be made based on substance, and long-term funding of healthy programs can be provided. 

Finally, the conferees have focused their attention for a number of years on a number of enduring IC challenges. Once again, 

the Conferees have addressed in this bill such issues as the need 

to improve NSA acquisition efforts, the need to improve the depth 

and breadth of HUMINT, and improving research and development 

(R&D). With respect to the NSA, the conferees are pleased with the 

Director’s attempts to baseline current capabilities so that future 

needs can be properly identified and resulting acquisition decisions 

made. The conferees have provided incentives to complete these 

later two efforts. In terms of improving HUMINT, the conferees 

have focused on improving training, providing technical resources 

to operations, and properly funding analytic efforts. All of these capabilities are supported by R&D efforts. Therefore, the conferees 

have supported the administration’s increases to agencies’ basic 

R&D programs. The conferees note that this funding support is 

based on the perspective that the IC must continue to renew itself 

of the ever-changing world. The new perspective on national security is that intelligence is the first line of defense against an illusive and unstructured threat that uses asymmetric means to harm 

America. It is from that perspective that the conferees have made 

the decision contained herein. 

TITLE I—INTELLIGENCE ACTIVITIES 

Sec. 101. Authorization of appropriations 

Section 101 of the conference report lists the departments, 

agencies, and other elements of the United States Government for 

whose intelligence and intelligence-related activities the Act authorizes appropriations for fiscal year 2003. 

Sec. 102. Classified schedule of authorizations 

Section 102 of the conference report makes clear that the details of the amounts authorized to be appropriated for intelligence 

and intelligence-related activities and applicable personnel ceilings 

covered under this title for fiscal year 2003 are contained in a classified Schedule of Authorizations. The classified Schedule of Authorizations is incorporated into the Act by this section. 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 classified annex provides details of the Schedule. Section 102 is identical to section 102 of the House bill.

Sec. 103. Personnel ceiling adjustments 

Section 103 of the conference report authorizes the Director of 

Central Intelligence, with the approval of the Director of the Office 

of Management and Budget, in fiscal year 2003 to authorize employment of civilian personnel in excess of the personnel ceilings 

66

applicable to the components of the Intelligence Community under 

section 102 by an amount not to exceed two percent of the total of 

the ceilings applicable under section 102. The Director of Central 

Intelligence may exercise this authority only if necessary to the 

performance of important intelligence functions. Any exercise of 

this authority must be reported to the intelligence committees of 

the Congress. 

The managers emphasize that the authority conferred by section 103 is not intended to permit wholesale increase in personnel 

strength in any intelligence component. Rather, the section provides the Director of Central Intelligence with flexibility to adjust 

personnel levels temporarily for contingencies and for overages 

caused by an imbalance between hiring new employees and attrition of current employees. The managers do not expect the Director 

of Central Intelligence to allow heads of intelligence components to 

plan to exceed levels set in the Schedule of Authorizations except 

for the satisfaction of clearly identified hiring needs that are consistent with the authorization of personnel strengths in this bill. In 

no case is this authority to be used to provide for positions denied 

by this bill. Section 103 is identical to section 103 of the House bill 

and section 103 of the Senate amendment. 

Sec. 104. Intelligence Community Management Account 

Section 104 of the conference report authorizes appropriations 

for the Intelligence Community Management Account (CMA) of the 

Director of Central Intelligence (DCI) and sets the personnel endstrength for the Intelligence Community management staff for fiscal year 2003. 

Subsection (a) authorizes appropriations of $158,254,000 for 

fiscal year 2003 for the activities of the CMA of the DCI. 

Subsection (b) authorizes 322 full-time personnel for the Intelligence Community Management Staff for fiscal year 2003 and provides that such personnel may be permanent employees of the Staff 

or detailed from various elements of the United States Government. 

Subsection (c) authorizes additional appropriations and personnel for the CMA as specified in the classified Schedule of Authorizations and permits these additional amounts to remain available through September 30, 2004. 

Subsection (d) requires that, except as provided in Section 113 

of the National Security Act of 1947, personnel from another element of the United States Government be detailed to an element 

of the CMA on a reimbursable basis, or for temporary situations of 

less than one year on a non-reimbursable basis. 

Subsection (e) authorizes $34,100,000 of the amount authorized 

in subsection (a) to be made available for the National Drug Intelligence Center (NDIC). Subsection (e) requires the DCI to transfer 

these funds to the Department of Justice to be used for NDIC activities under the authority of the Attorney General and subject to 

section 103(d)(1) of the National Security Act. Subsection (e) is 

similar to subsection (e) of the House bill.

67

Sec. 105. Authorization of emergency supplemental appropriations 

for fiscal year 2002

Section 105 is identical to Section 105 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 106. Additional authorizations of appropriations for intelligence for the war on terrorism 

Section 106 is identical to Section 106 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 107. Specific authorization of funds for intelligence or intelligence-related activities for which fiscal year 2003 appropriations exceed amounts authorized 

Section 107 authorizes, solely for the purposes of reprogramming under Section 504(a)(3) of the National Security Act of 1947 

(50 U.S.C. 414(a)(3)) those funds appropriated for an intelligence or 

intelligence-related activity in fiscal year 2003 in excess of the 

amount specified for such activity in the classified Schedule of Authorizations to accompany this conference report. 

Sec. 108. Incorporation of reporting requirements 

Section 108 is similar to Section 105 of the Senate amendment. 

The House bill had no similar provision. Section 107 incorporates 

into the Act each requirement to submit a report contained in the 

joint explanatory statement to accompany the conference report or 

in the classified annex to the Act. 

Sec. 109. Preparation and submittal of reports, reviews, studies, 

and plans relating to intelligence activities of Department of 

Defense or Department of Energy 

Section 109 is identical to Section 106 of the Senate amendment. The House bill had no similar provision. The House recedes. 

TITLE II—CENTRAL INTELLIGENCE AGENCY RETIREMENT 

AND DISABILITY SYSTEM 

Sec. 201. Authorization of appropriations 

Section 201 authorizes appropriations of $225,500,000 for the 

Central Intelligence Agency Retirement and Disability Fund.

TITLE III—GENERAL PROVISIONS 

Subtitle A—Intelligence Community 

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

Section 301 is identical to Section 301 of the Senate amendment and Section 301 of the House bill. 

Sec. 302. Restriction of conduct of intelligence activities 

Section 302 is identical to Section 302 of the Senate amendment and Section 302 of the House bill. 

68

Sec. 303. Sense of Congress on Intelligence Community contracting 

Section 303 is identical to Section 303 of the Senate amendment. The House bill had no similar provision. The Senate recedes. 

Subtitle B—Intelligence 

Sec. 311. Specificity of National Foreign Intelligence Program budget amounts for counterterrorism, counterproliferation, 

counternarcotices, and counterintelligence 

Section 311 is identical to section 304 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 312. Prohibition on compliance with request for information 

submitted by foreign governments 

Section 312 is identical to Section 307 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 313. National Virtual Translation Center 

Section 313 is identical to Section 311 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Subtitle C—Personnel

Sec. 321. Standards and qualifications for the performance of intelligence activities 

Section 321 is similar to Section 308 of the Senate amendment. 

The House bill had no similar provisions. The House recedes. 

Sec. 322. Modification of accepted agency voluntary leave transfer 

authority 

Section 322 is similar of Section 305 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 323. Sense of Congress on diversity in the workforce of intelligence community agencies 

Section 323 is identical of Section 312 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 324. Annual report on hiring and retention of minority employees in the intelligence community 

Section 324 is identical to Section 313 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 325. Report on establishment of a civilian linguist reserve corps 

Section 325 is identical 311 of the House bill. The Senate 

amendment had no similar provision. The Senate recedes. 

Subtitle D—Education 

Sec. 331. Scholarships and work study for pursuit of graduate degrees in science and technology 

Section 331 is identical to Section 310 of the Senate amendment. The House bill had no similar provision. The House recedes. 

69

Sec. 332. Cooperative relationship between the National Security 

Education Program and the Foreign Language Center of the 

Defense Language Institute 

Section 332 is identical to Section 308 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes.

Sec. 333. Establishment of a national flagship language initiative 

within the National Security Education Program 

Section 333 includes Section 309 of the House bill. Section 309 

of the Senate amendment also created a national foreign language 

initiative. The Senate recedes. 

Sec. 334. Report on the National Security Education Program 

Section 334 is similar to the reporting requirement of Section 

309 of the Senate amendment. Section 334 requires the Secretary 

of Defense to submit a report in 180 days after enactment of the 

program of scholarship, fellowships, and grants under the David L. 

Boren National Security Education Act of 1991, including an assessment of the effectiveness of the program in meeting its goals 

and its administrative costs, and the advisability of converting 

funding of the program from funding through the National Security 

Education Trust Fund to funding through appropriations. 

Subtitle E—Terrorism 

Sec. 341. Foreign Terrorist Asset Tracking Center 

Section 341 is identical to Section 312 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 342. Semiannual Report on Financial Intelligence on Terrorist 

Assets (FITA) 

Section 342 is identical to Section 304 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 343. Terrorist Identification Classification System 

Section 343 is identical to Section 313 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Subtitle F—Other Matters 

Sec. 351. Additional one-year suspension of reorganization of Diplomatic Telecommunications Service Program Office 

Section 351 is identical to Section 306 of the House bill and 

similar to Section 316 of the Senate amendment. The Senate recedes.

Sec. 352. Standardized transliteration of names into the roman alphabet 

Section 352 is similar to Section 307 of the Senate amendment. 

The House bill had no similar provision. The House recedes with 

modifications. 

70

Sec. 353. Definition of congressional intelligence committees in 

National Security Act of 1947

Section 353 is similar to Section 303 of the Senate amendment. 

The House bill had no similar provision. The House recedes with 

modifications. 

TITLE IV—CENTRAL INTELLIGENCE AGENCY 

Sec. 401. Two-year extension of Central Intelligence Agency Voluntary Separation Pay Act 

Section 401 is identical to Section 401 of the House bill and 

Section 315 of the Senate amendment. 

Sec. 402. Implementation of compensation reform plan 

Section 402 is similar to Section 402 of the House bill. The 

Senate amendment had no similar provision. Section 402 delays 

implementation of the Central Intelligence Agency’s proposed compensation reform plan until February 1, 2004 or the submission of 

a report on a compensation pilot project, whichever is later. The Director of Central Intelligence shall conduct the pilot project to assess the efficacy and fairness of a revised personnel compensation 

plan, and report to the congressional intelligence committees 45 

days after completion of the pilot project. Section 402 includes a 

sense of the Congress that an employee personnel evaluation mechanism with evaluation training for managers and employees of the 

CIA and the National Security Agency should be phased in first, 

and then followed by the introduction of a new compensation plan. 

TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE 

ACTIVITIES 

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

Section 501 is similar to Section 501 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes.

Sec. 502. Protection of operational files of the National Reconnaissance Office 

Section 502 is identical to Section 502 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

Sec. 502. Eligibility of employees in intelligence senior level positions for Presidential rank awards. 

Section 503 is identical to Section 503 of the House bill. The 

Senate amendment had no similar provision. The Senate recedes. 

TITLE VI—NATIONAL COMMISSION ON TERRORIST 

ATTACKS 

Title VI is substantially similar to Title VI of the House bill 

as well as language found in Senate amendment 4694 to H.R. 5005, 

a bill to establish the Department of Homeland Security 

71

TITLE VII—INFORMATION SHARING 

Title VII is similar to Title VII of the House bill and H.R. 4598, 

the Homeland Security Information Sharing Act, which passed the 

House on June 26, 2002 in a 422–2 vote. Title VII is also similar 

to sections 891–894 of H.R. 5710, establishing the Department of 

Homeland Security, which passed the House on November 13, 

2002. Section 706 has been add by the conferees to coordinate the 

different versions of the Homeland Information Sharing Act, which 

are found in this bill and in H.R. 5710. 

The Senate amendment had no similar provision. The Senate 

recedes. 

TITLE VIII—REPORTING REQUIREMENTS 

Subtitle A—Overdue Reports 

Sec. 801. Deadline for submittal of various overdue reports 

Section 801 is similar to Section 310 of the House bill. Section 

801 reduces by one-third the amounts available to be obligated or 

expended by the Office of the Director of Central Intelligence if certain reports are not submitted to the Congress 180 days after enactment. The reports referred to in this section are reports mandated by law for which the DCI has sole or primary responsibility 

to prepare or coordinate and submit to Congress, which, as of the 

date of enactment, have not been submitted to Congress if mandated to be submitted prior to the date of enactment. The fence will 

not be imposed if the DCI certifies in writing to the intelligence 

committees that all overdue reports specified in Section 801 are 

completed. The Senate amendment had no similar provision. The 

Senate recedes.

Subtitle B—Submittal of Reports to Intelligence Committees 

Sec. 811. Dates for submittal of various annual and semi-annual reports to the congressional intelligence committees 

Section 811 is similar to Section 401 of the Senate amendment. 

The House bill had no similar provision. The House recedes with 

modifications. 

Subtitle C—Recurring Annual Reports 

Sec. 821. Annual report on threat of attack on the United States 

using weapons of mass destruction 

Section 821 is identical to Section 412 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 822. Annual report on convert leases 

Section 822 is identical to Section 413 of the Senate amendment. The House bill had no similar provision. The House recedes. 

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Sec. 823. Annual report on improvement of financial statements of 

certain elements of the Intelligence Community for auditing 

purposes 

Section 823 is identical to Section 414 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 824. Annual report on activities of Federal Bureau of Investigation personnel outside the United States 

Section 824 is identical to Section 415 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 825. Annual reports of Inspectors General of the Intelligence 

Community on proposed resources and activities of their offices 

Section 825 is identical to Section 416 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 826. Annual report on counterdrug intelligence matters 

Section 826 is identical to Section 417 of the Senate amendment. The House bill had no similar provision. The House recedes.

Sec. 827. Annual report on foreign companies involved in the proliferation of weapons of mass destruction that raise funds in the 

United States capital markets 

Section 827 is identical to Section 314 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Subtitle D—Other Reports 

Sec. 831. Report on effect of country-release restrictions on allied intelligence-sharing relationships 

Section 831 is identical to Section 431 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 832. Evaluation of policies and procedures of Department of 

State on protection of classified information at department 

headquarters 

Section 832 is identical to Section 432 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Subtitle E—Repeal of Certain Report Requirements 

Sec. 841. Repeal of certain report requirements 

Section 841 is substantially similar to Section 441 of the Senate amendment, although the conferees have agreed to repeal certain additional Intelligence Community reporting requirements. 

The House bill had no similar provision. The House recedes with 

modifications. 

TITLE IX—COUNTERINTELLIGENCE ACTIVITIES 

Sec. 901. Short title; purpose 

Section 901 is identical to Section 501 of the Senate amendment. The House bill had no similar provision. The House recedes. 

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Sec. 902. National counterintelligence executive 

Section 902 is identical to Section 502 of the Senate amendment. The House bill had no similar provision. The House recedes.

Sec. 903. National Counterintelligence Policy Board 

Section 903 is identical to Section 503 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 904. Office of the National Counterintelligence Executive 

Section 904 is similar to Section 504 of the Senate amendment. 

The House bill had no similar provision. The conferees agree to 

place the Office of the National Counterintelligence Executive within the Office of the Director of Central Intelligence. Further, the 

provision makes clear that nothing in this section shall be construed as affecting the authority of the Director of Central Intelligence, the Secretary of Defense, the Secretary of State, the Attorney General, or the Director of the FBI as provided or specified 

under the National Security Act of 1947 or under other provisions 

of law. The House recedes with modifications. 

TITLE X—NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED 

STATES INTELLIGENCE COMMUNITY 

Sec. 1001. Findings 

Section 1001 is identical to Section 601 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 1002. National Commission for review of research and development programs of the United States Intelligence Community 

Section 1002 is identical to Section 602 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 1003. Powers of Commission 

Section 1003 is identical to Section 603 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 1004. Staff of Commission 

Section 1004 is identical to Section 604 of the Senate amendment. The House bill had no similar provision. The House recedes.

Sec. 1005. Compensation and travel expenses 

Section 1005 is identical to Section 605 of the Senate amendment. The House bill had no similar provision. The House recedes. 

Sec. 1006. Treatment of information relating to national security 

Section 1006 is identical to Section 606 of the Senate amendment. The House bill has no similar provision. The House recedes. 

Sec. 1007. Final report; termination 

Section 1007 is identical to Section 607 of the Senate amendment. The House bill has no similar provision. The House recedes. 

74

Sec. 1008. Assessments of final report 

Section 1008 is identical to Section 608 of the Senate amendment. The House bill has no similar provision. The House recedes. 

Sec. 1009. Inapplicability of certain administrative provisions 

Section 1009 is identical to Section 609 of the Senate amendment. The House bill has no similar provision. The House recedes. 

Sec. 1010. Funding 

Section 1010 is identical to Section 610 of the Senate amendment. The House bill has no similar provision. The House recedes. 

Sec. 1011. Definitions 

Section 1011 is identical to Section 611 of the Senate amendment. The House bill had no similar provision. The House recedes. 

ITEMS NOT INCLUDED

Section 305 of the Senate amendment contained a provision to 

clarify Section 504 of the National Security Act of 1947 with respect to the reprogramming of funds from one intelligence activity 

to another. The House bill had no similar provisions. The Senate 

recedes. 

Section 306 of the Senate amendment required disclosure to 

Congress of information regarding pending criminal investigations 

and prosecutions that is currently subject to statutory and other 

disclosure prohibitions, such as grand jury matters under Rule 6(e) 

of the Federal Rules of Criminal Procedure, communications intercepted under Title III domestic wiretap provisions, and other sensitive law enforcement information. The House bill had no similar 

provisions. The Senate recedes.

From the Permanent Select Committee on Intelligence, for 

consideration of the House bill and the Senate amendment, and modifications committed to conference: 

PORTER J. GOSS,

DOUG BEREUTER,

MICHAEL N. CASTLE,

SHERWOOD BOEHLERT,

JIM GIBBONS,

RANDY ‘‘DUKE’’ CUNNINGHAM, PETE HOEKSTRA, RICHARD BURR, SAXBY CHAMBLISS, TERRY EVERETT, NANCY PELOSI,

SANFORD D. BISHOP, Jr., 

JANE HARMAN,

TIM ROEMER,

SILVESTRE REYES,

LEONARD L. BOSWELL,

COLLIN C. PETERSON,

From the Committee on Armed Services, for consideration 

of defense tactical intelligence and related activities: 

ROBERT STUMP,

75

DUNCAN HUNTER, Managers on the Part of the House.

BOB GRAHAM,

JAY ROCKEFELLER,

DIANNE FEINSTEIN,

RON WYDEN, 

DICK DURBIN,

JOHN EDWARDS,

RICHARD SHELBY,

JON KYL,

MIKE DEWINE,

FRED THOMPSON,

DICK LUGAR,

Managers on the Part of the Senate.

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