Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Intelligence Authorization Act for Fiscal Year 2004’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—INTELLIGENCE ACTIVITIES
Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Intelligence elements of the Department of the Treasury.
TITLE II—CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
TITLE III—GENERAL PROVISIONS
Subtitle A—Recurring General Provisions
Sec. 301. Increase in employee compensation and benefits authorized by law.
Sec. 302. Restriction on conduct of intelligence activities.
Subtitle B—Intelligence
Sec. 311. Modification of notice and wait requirements on projects to construct
or improve intelligence community facilities.
Subtitle C—Counterintelligence
Sec. 321. Counterintelligence initiatives for the intelligence community.
Subtitle D—Other Matters
Sec. 331. Extension of suspension of reorganization of Diplomatic Tele-
communications Service Program Office.
Sec. 332. Modifications of authorities on explosive materials.
Sec. 333. Modification of prohibition on the naturalization of certain persons.
Sec. 334. Modification to definition of financial institution in the Right to Fi-
nancial Privacy Act.
Sec. 335. Procedural requirements for Central Intelligence Agency relating to
products of Federal prison industries.
Sec. 336. Improvement of information sharing among federal, State, and local
government officials.
Sec. 337. Improvement of recruitment, hiring and retention of ethnic and cul-
tural minorities in the intelligence community.
Subtitle E—Reports and Technical Amendments
Sec. 341. Extension of deadline for final report of the National Commission for
the Review of the Research and Development Programs of the
United States Intelligence Community.
Sec. 342. Modification of various reports required of intelligence community
elements.
Sec. 343. Technical amendments.
Sec. 344. Report on lessons learned from military operations in Iraq.
Sec. 345. Modification of terrorist identification classification system.
TITLE IV—CENTRAL INTELLIGENCE AGENCY
Sec. 401. Protection from tort liability for certain Central Intelligence Agency
personnel.
Sec. 402. Repeal of limitation on use of funds in Central Services Working
Capital Fund.
TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS
Sec. 501. Use of funds for counterdrug and counterterrorism activities for
Colombia.
Sec. 502. Authority to provide living quarters for certain students in coopera-
tive and summer education programs of the National Security
Agency.
Sec. 503. Authority for intelligence community elements of Department of De-
fense to award personal service contracts.
Sec. 504. Protection of certain National Security Agency personnel from tort
liability.
Sec. 505. Measurement and signatures intelligence program.
TITLE I—INTELLIGENCE
ACTIVITIES
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for
fiscal year 2004 for the conduct of the intelligence and
intelligence-related activities of the following elements of
the United States Government:
(1) The Central Intelligence Agency.
(2) The Department of Defense.
(3) The Defense Intelligence Agency.
(4) The National Security Agency.
(5) The National Reconnaissance Office.
(6) The National Imagery and Mapping Agen-
cy.
(7) The Department of the Army, the Depart-
ment of the Navy, and the Department of the Air
Force.
(8) The Department of State.
(9) The Department of the Treasury.
(10) The Department of Energy.
(11) The Department of Justice.
(12) The Federal Bureau of Investigation.
(13) The Department of Homeland Security.
(14) The Coast Guard.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
(a) SPECIFICATIONS OF AMOUNTS AND PERSONNEL
CEILINGS.—The amounts authorized to be appropriated
under section 101, and the authorized personnel ceilings
as of September 30, 2004, for the conduct of the intel-
ligence and intelligence-related activities of the elements
listed in such section, are those specified in the classified
Schedule of Authorizations prepared to accompany the bill
H.R. 2417 of the One Hundred Eighth Congress.
(b) AVAILABILITY OF CLASSIFIED SCHEDULE OF AU-
THORIZATIONS.—The Schedule of Authorizations shall be
made available to the Committees on Appropriations of
the Senate and House of Representatives and to the Presi-
dent. The President shall provide for suitable distribution
of the Schedule, or of appropriate portions of the Sched-
ule, within the executive branch.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
(a) AUTHORITY FOR ADJUSTMENTS.—With the ap-
proval of the Director of the Office of Management and
Budget, the Director of Central Intelligence may authorize
employment of civilian personnel in excess of the number
authorized for fiscal year 2004 under section 102 when
the Director of Central Intelligence determines that such
action is necessary to the performance of important intel-
ligence functions, except that the number of personnel em-
ployed in excess of the number authorized under such sec-
tion may not, for any element of the intelligence commu-
nity, exceed 2 percent of the number of civilian personnel
authorized under such section for such element.
(b) NOTICE TO INTELLIGENCE COMMITTEES.—The
Director of Central Intelligence shall notify promptly the
Permanent Select Committee on Intelligence of the House
of Representatives and the Select Committee on Intel-
ligence of the Senate whenever the Director exercises the
authority granted by this section.
SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT AC-
COUNT.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for the Intelligence Commu-
nity Management Account of the Director of Central Intel-
ligence for fiscal year 2004 the sum of $192,640,000.
Within such amount, funds identified in the classified
Schedule of Authorizations referred to in section 102(a)
for the Advanced Research and Development Committee
shall remain available until September 30, 2005.
(b) AUTHORIZED PERSONNEL LEVELS.—The ele-
ments within the Intelligence Community Management
Account of the Director of Central Intelligence are author-
ized 320 full-time personnel as of September 30, 2004.
Personnel serving in such elements may be permanent em-
ployees of the Intelligence Community Management Ac-
count 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 Ac-
count by subsection (a), there are also authorized to
be appropriated for the Intelligence Community
Management Account for fiscal year 2004 such addi-
tional amounts as are specified in the classified
Schedule of Authorizations referred to in section
102(a). Such additional amounts shall remain avail-
able until September 30, 2004.
(2) AUTHORIZATION OF PERSONNEL.—In addi-
tion to the personnel authorized by subsection (b)
for elements of the Intelligence Community Manage-
ment Account as of September 30, 2004, there are
hereby authorized such additional personnel for such
elements as of that date as are specified in the clas-
sified Schedule of Authorizations.
(d) REIMBURSEMENT.—Except as provided in section
113 of the National Security Act of 1947 (50 U.S.C.
404h), during fiscal year 2004 any officer or employee of
the United States or a member of the Armed Forces who
is detailed to the staff of the Intelligence Community Man-
agement 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 Intel-
ligence.
(e) NATIONAL DRUG INTELLIGENCE CENTER.—
(1) IN GENERAL.—Of the amount authorized to
be appropriated in subsection (a), $34,248,000 shall
be available for the National Drug Intelligence Cen-
ter. Within such amount, funds provided for re-
search, development, testing, and evaluation pur-
poses shall remain available until September 30,
2005, and funds provided for procurement purposes
shall remain available until September 30, 2006.
(2) TRANSFER
OF
FUNDS.—The Director of
Central Intelligence shall transfer to the Attorney
General funds available for the National Drug Intel-
ligence Center under paragraph (1). The Attorney
General shall utilize funds so transferred for the ac-
tivities of the National Drug Intelligence Center.
(3) LIMITATION.—Amounts available for the
National Drug Intelligence Center may not be used
in contravention of the provisions of section
103(d)(1) of the National Security Act of 1947 (50
U.S.C. 403–3(d)(1)).
(4) AUTHORITY.—Notwithstanding any other
provision of law, the Attorney General shall retain
full authority over the operations of the National
Drug Intelligence Center.
SEC. 105. INTELLIGENCE ELEMENTS OF THE DEPARTMENT
OF THE TREASURY.
(a) IN GENERAL.—(1) Title I of the National Secu-
rity Act of 1947 (50 U.S.C. 402 et seq.) is amended by
adding at the end the following new section:
‘‘BUREAU OF INTELLIGENCE AND ENFORCEMENT OF THE
DEPARTMENT OF THE TREASURY
‘‘SEC. 119. (a) IN GENERAL.—There is within the
Department of the Treasury a Bureau of Intelligence and
Enforcement headed by an Assistant Secretary for Intel-
ligence and Enforcement, who shall be appointed by the
President, by and with the advice and consent of the Sen-
ate.
‘‘(b) RESPONSIBILITIES.—(1) The Assistant Sec-
retary for Intelligence and Enforcement shall oversee and
coordinate functions of the Bureau of Intelligence and En-
forcement.
‘‘(2) The Assistant Secretary shall report directly to
the Secretary of the Treasury.
‘‘(c) COMPOSITION OF BUREAU.—The Bureau of In-
telligence and Enforcement shall consist of the following
offices:
‘‘(1) The Office of Intelligence Support.
‘‘(2) The Office of Foreign Assets Control.
‘‘(3) The Financial Crimes Enforcement Net-
work.
‘‘(4) Such other offices as the Assistant Sec-
retary may establish.’’.
(2) The table of contents contained in the first sec-
tion of such Act is amended by inserting after the item
relating to section 118 the following new item:
‘‘Sec. 119. Bureau of Intelligence and Enforcement of the Department of the
Treasury.’’.
(b) CONSULTATION WITH DCI IN APPOINTMENT OF
ASSISTANT SECRETARY
FOR INTELLIGENCE
AND EN-
FORCEMENT.—Section 106(b)(2) of such Act (50 U.S.C.
403–6(b)(2)) is amended by adding at the end the fol-
lowing new subparagraph:
‘‘(E) The Assistant Secretary for Intelligence
and Enforcement.’’.
(c) CONFORMING AMENDMENTS.—(1) Section 3(4) of
such Act (50 U.S.C. 401a(4)) is amended—
(A) by striking ‘‘the Department of the Treas-
ury,’’ in subparagraph (H);
(B) by striking ‘‘and’’ at the end of subpara-
graph (J);
(C) by redesignating subparagraph (K) as sub-
paragraph (L); and
(D) by inserting after subparagraph (J) the fol-
lowing new subparagraph:
‘‘(K) the Bureau of Intelligence and En-
forcement of the Department of the Treasury;
and’’.
(2) Section 5315 of title 5, United States Code, is
amended in the item relating to Assistant Secretaries of
the Treasury by striking ‘‘(7)’’ and inserting ‘‘(8)’’.
TITLE 
II—CENTRAL 
INTEL-
LIGENCE 
AGENCY 
RETIRE-
MENT AND DISABILITY SYS-
TEM
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for the Cen-
tral Intelligence Agency Retirement and Disability Fund
for fiscal year 2004 the sum of $226,400,000.
TITLE III—GENERAL
PROVISIONS
Subtitle A—Recurring General
Provisions
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND
BENEFITS AUTHORIZED BY LAW.
Appropriations authorized by this Act for salary, pay,
retirement, and other benefits for Federal employees may
be increased by such additional or supplemental amounts
as may be necessary for increases in such compensation
or benefits authorized by law.
SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE
ACTIVITIES.
The authorization of appropriations by this Act shall
not be deemed to constitute authority for the conduct of
any intelligence activity which is not otherwise permitted
under the Constitution or authorized pursuant to the laws
of the United States.
Subtitle B—Intelligence
SEC. 311. MODIFICATION OF NOTICE AND WAIT REQUIRE-
MENTS ON PROJECTS TO CONSTRUCT OR IM-
PROVE INTELLIGENCE COMMUNITY FACILI-
TIES.
(a) INCREASE OF THRESHOLDS FOR NOTICE.—Sec-
tion 602(a) of the Intelligence Authorization Act for Fiscal
Year 1995 (Public Law 103–359; 108 Stat. 3432; 50
U.S.C. 403–2b(a)) is amended—
(1) by striking ‘‘$750,000’’ each place it ap-
pears and inserting ‘‘$5,000,000’’;
(2) by striking ‘‘$500,000’’ each place it ap-
pears and inserting ‘‘$1,000,000’’; and
(3) in paragraph (2), as amended by paragraph
(2) 
of 
this 
subsection, 
by 
inserting 
after
‘‘$1,000,000’’ the second place it appears, the fol-
lowing: ‘‘but less than $5,000,000’’.
(b) NOTICE AND WAIT REQUIREMENTS FOR EMER-
GENCY PROJECTS.—Section 602(b)(2) of the Intelligence
Authorization Act for Fiscal Year 1995 (Public Law 103–
359; 108 Stat. 3432; 50 U.S.C. 403–2b(b)(2)) is
amended—
(1) in the third sentence, by striking ‘‘21-day’’
and inserting ‘‘7-day’’; and
(2) by adding at the end the following new sen-
tence: ‘‘Notwithstanding the preceding provisions of
this paragraph, when the Director of Central Intel-
ligence and Secretary of Defense jointly determine
that an emergency relating to the national security
or to the protection of health, safety, or environ-
mental quality exists and that delay would irrep-
arably harm any or all of those interests, the project
may begin on the date the notification is received by
such committees.’’.
Subtitle C—Counterintelligence
SEC. 321. COUNTERINTELLIGENCE INITIATIVES FOR THE
INTELLIGENCE COMMUNITY.
(a) IN GENERAL.—(1) Title XI of the National Secu-
rity Act of 1947 (50 U.S.C. 401 et seq.) is amended by
adding at the end the following new section:
‘‘COUNTERINTELLIGENCE INITIATIVES
‘‘SEC. 1102. (a) INSPECTION PROCESS.—(1) In order
to protect intelligence sources and methods from unau-
thorized disclosure, the Director of Central Intelligence
shall establish and implement an inspection process for all
agencies and departments of the United States that han-
dle classified information relating to the national security
of the United States intended to assure that those agen-
cies and departments maintain effective operational secu-
rity practices and programs directed against counterintel-
ligence activities.
‘‘(2) The Director shall carry out the process through
the Office of the National Counterintelligence Executive.
‘‘(b) FBI COUNTERINTELLIGENCE OFFICE.—The
Attorney General, acting through the Director of the Fed-
eral Bureau of Investigation, shall establish an Office of
Counterintelligence within the Bureau to investigate po-
tential espionage activities within the Bureau.
‘‘(c) ANNUAL REVIEW OF DISSEMINATION LISTS.—
(1) The Director of Central Intelligence shall establish and
implement a process for all elements of the intelligence
community (as defined in section 101(4)) to review, on
an annual basis, individuals included on distribution lists
for access to classified information. Such process shall en-
sure that only individuals who have a particularized ‘need
to know’ (as determined by the Director) are continued
on such distribution lists.
‘‘(2) Not later than October 15 of each year, the Di-
rector shall certify to the congressional intelligence com-
mittees that the review required under paragraph (1) has
been conducted in all elements of the intelligence commu-
nity during the preceding fiscal year.
‘‘(d) REQUIRED COMPLETION OF FINANCIAL DIS-
CLOSURE STATEMENTS.—(1) The Director of Central In-
telligence shall establish and implement a process by which
heads of the elements of the intelligence community (as
defined in section 101(4)) direct that all employees, in
order to be granted access to classified information, sub-
mit financial disclosure forms required under section
1.3(b) of Executive Order No. 12969 (August 2, 1995;
60 F.R. 40245; 50 U.S.C. 435 note).
‘‘(2) The Director shall carry out paragraph (1)
through the Office of the National Counterintelligence Ex-
ecutive.
‘‘(e) ARRANGEMENTS TO HANDLE SENSITIVE IN-
FORMATION.—The Director of Central Intelligence shall
establish, for all elements of the intelligence community
(as defined in section 101(4)), programs and procedures
by which sensitive classified information relating to human
intelligence is safeguarded against unauthorized disclosure
by employees of those elements.’’.
(2) The table of contents contained in the first sec-
tion of such Act is amended in the items relating to title
XI by adding at the end the following new item:
‘‘Sec. 1102. Counterintelligence initiatives.’’.
(b) INTELLIGENCE AND NATIONAL SECURITY AS-
PECTS
OF ESPIONAGE PROSECUTIONS.—The Attorney
General, acting through the Office of Intelligence Policy
and Review of the Department of Justice, in consultation
with the Office of the National Counterintelligence Execu-
tive, shall establish policies and procedures to assist the
Attorney General in the Attorney General’s consideration
of intelligence and national security equities in the devel-
opment of charging documents and related pleadings in
espionage prosecutions.
Subtitle D—Other Matters
SEC. 331. EXTENSION OF SUSPENSION OF REORGANIZA-
TION 
OF 
DIPLOMATIC 
TELECOMMUNI-
CATIONS SERVICE PROGRAM OFFICE.
Section 311 of the Intelligence Authorization Act for
Fiscal Year 2002 (Public Law 107–108; 115 Stat. 1401;
22 U.S.C. 7301 note), as amended by section 351 of the
Intelligence Authorization Act for Fiscal Year 2003 (Pub-
lic Law 107–306; 116 Stat. 2401; 22 U.S.C. 7301 note),
is amended—
(1) in the heading, by striking ‘‘TWO-YEAR’’
before ‘‘SUSPENSION OF REORGANIZATION’’; and
(2) in the text, by striking ‘‘ending on October
1, 2003’’ and inserting ‘‘ending on the date that is
60 days after the date on which appropriate congres-
sional committees of jurisdiction (as defined in sec-
tion 324(d) of that Act (22 U.S.C. 7304(d)) are no-
tified jointly by the Secretary of State (or the Sec-
retary’s designee) and the Director of the Office of
Management and Budget (or the Director’s des-
ignee) that the operational framework for the office
has been terminated’’.
SEC. 332. MODIFICATIONS OF AUTHORITIES ON EXPLOSIVE
MATERIALS.
(a) AUTHORITY TO DISTRIBUTE EXPLOSIVE MATE-
RIALS TO QUALIFIED ALIENS.—Notwithstanding any
other provision of law, it shall be lawful for any person
knowingly to distribute explosive materials to any qualified
alien—
(1) if, in the case of a qualified alien described
in subsection (c)(1), the distribution to, shipment to,
transportation to, receipt by, or possession by the
alien of the explosive materials is in furtherance of
such cooperation; or
(2) if, in the case of a qualified alien described
in subsection (c)(2), the distribution to, shipping to,
transporting to, possession by, or receipt by the
alien of explosive materials is in furtherance of the
authorized military purpose.
(b) AUTHORITY FOR QUALIFIED ALIENS TO SHIP
EXPLOSIVE MATERIALS.—Notwithstanding any other pro-
vision of law, it shall be lawful for a qualified alien to ship
or transport any explosive in or affecting interstate or for-
eign commerce or to receive or possess any explosive which
has been shipped or transported in or affecting interstate
or foreign commerce—
(1) if, in the case of a qualified alien described
in subsection (c)(1), the possession, shipment, or
transportation by the alien of the explosive materials
is in furtherance of such cooperation; or
(2) if, in the case of a qualified alien described
in subsection (c)(2), the possession, shipment, or
transportation by the alien of explosive materials is
in furtherance of the authorized military purpose.
(c) QUALIFIED ALIEN DEFINED.—In this section,
the term ‘‘qualified alien’’ means an alien—
(1) who is lawfully present in the United States
in cooperation with the Director of Central Intel-
ligence; or
(2) who is a member of a North Atlantic Treaty
Organization (NATO), or other friendly foreign mili-
tary force (as determined by the Attorney General
with the concurrence of the Secretary of Defense)
who is present in the United States under military
orders for training or other military purpose author-
ized by the United States.
SEC. 333. MODIFICATION OF PROHIBITION ON THE NATU-
RALIZATION OF CERTAIN PERSONS.
Section 313(e)(4) of the Immigration and Nationality
Act (8 U.S.C. 1424(e)(4)) is amended—
(1) by inserting ‘‘when Department of Defense
activities are relevant to the determination’’ after
‘‘Secretary of Defense’’; and
(2) by inserting ‘‘and the Secretary of Home-
land Security’’ after ‘‘Attorney General’’.
SEC. 334. MODIFICATION TO DEFINITION OF FINANCIAL IN-
STITUTION IN THE RIGHT TO FINANCIAL PRI-
VACY ACT.
(a) IN GENERAL.—Section 1101(1) of the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3401(1)) is
amended by inserting ‘‘, except as provided in section
1114,’’ before ‘‘means any office’’.
(b) DEFINITION.—Section 1114 of such Act (12
U.S.C. 3414) is amended by adding at the end the fol-
lowing:
‘‘(c) For purposes of this section, the term ‘financial
institution’ has the same meaning as in section 5312(a)(2)
of title 31, United States Code, except that, for purposes
of this section, such term shall include only such a finan-
cial institution any part of which is located inside any
State or territory of the United States, the District of Co-
lumbia, Puerto Rico, Guam, American Samoa, or the
United States Virgin Islands.’’.
SEC. 335. PROCEDURAL REQUIREMENTS FOR CENTRAL IN-
TELLIGENCE AGENCY RELATING TO PROD-
UCTS OF FEDERAL PRISON INDUSTRIES.
The Central Intelligence Agency Act of 1949 (50
U.S.C. 403a et seq.) is amended by adding at the end the
following new section:
‘‘PROCEDURAL
REQUIREMENTS
FOR
CENTRAL
INTEL-
LIGENCE AGENCY RELATING TO PRODUCTS OF FED-
ERAL PRISON INDUSTRIES
‘‘SEC. 23. (a) MARKET RESEARCH.—Before pur-
chasing a product listed in the latest edition of the Federal
Prison Industries catalog under section 4124(d) of title
18, United States Code, the Director shall conduct market
research to determine whether the Federal Prison Indus-
tries product is comparable to products available from the
private sector that best meet the Agency’s needs in terms
of price, quality, and time of delivery.
‘‘(b) COMPETITION REQUIREMENT.—If the Director
determines that a Federal Prison Industries product is not
comparable in price, quality, or time of delivery to prod-
ucts available from the private sector that best meet the
Agency’s needs in terms of price, quality, and time of de-
livery, the Director shall use competitive procedures for
the procurement of the product or shall make an indi-
vidual purchase under a multiple award contract. In con-
ducting such a competition or making such a purchase,
the Director shall consider a timely offer from Federal
Prison Industries.
‘‘(c) IMPLEMENTATION BY DIRECTOR.—The Director
shall ensure that—
‘‘(1) the Agency does not purchase a Federal
Prison Industries product or service unless a con-
tracting officer of the Agency determines that the
product or service is comparable to products or serv-
ices available from the private sector that best meet
the Agency’s needs in terms of price, quality, and
time of delivery; and
‘‘(2) Federal Prison Industries performs its
contractual obligations to the same extent as any
other contractor for the Agency.
‘‘(d) MARKET
RESEARCH
DETERMINATION
NOT
SUBJECT TO REVIEW.—A determination by a contracting
officer regarding whether a product or service offered by
Federal Prison Industries is comparable to products or
services available from the private sector that best meet
the Agency’s needs in terms of price, quality, and time
of delivery shall not be subject to review pursuant to sec-
tion 4124(b) of title 18.
‘‘(e) PERFORMANCE AS A SUBCONTRACTOR.—(1) A
contractor or potential contractor of the Agency may not
be required to use Federal Prison Industries as a subcon-
tractor or supplier of products or provider of services for
the performance of a contract of the Agency by any
means, including means such as—
‘‘(A) a contract solicitation provision requiring
a contractor to offer to make use of products or
services of Federal Prison Industries in the perform-
ance of the contract;
‘‘(B) a contract specification requiring the con-
tractor to use specific products or services (or class-
es of products or services) offered by Federal Prison
Industries in the performance of the contract; or
‘‘(C) any contract modification directing the use
of products or services of Federal Prison Industries
in the performance of the contract.
‘‘(2) In this subsection, the term ‘contractor’, with
respect to a contract, includes a subcontractor at any tier
under the contract.
‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE
INFORMATION.—The Director may not enter into any con-
tract with Federal Prison Industries under which an in-
mate worker would have access to—
‘‘(1) any data that is classified;
‘‘(2) any geographic data regarding the location
of—
‘‘(A) surface and subsurface infrastructure
providing communications or water or electrical
power distribution;
‘‘(B) pipelines for the distribution of nat-
ural gas, bulk petroleum products, or other
commodities; or
‘‘(C) other utilities; or
‘‘(3) any personal or financial information
about any individual private citizen, including infor-
mation relating to such person’s real property how-
ever described, without the prior consent of the indi-
vidual.
‘‘(g) APPLICATION OF PROVISION.—This section is
subject to the preceding provisions of this Act, and shall
not be construed as affecting any right or duty of the Di-
rector under those provisions.
‘‘(h) DEFINITIONS.—In this section:
‘‘(1) The terms ‘competitive procedures’ and
‘procurement’ have the meanings given such terms
in section 4 of the Office of Federal Procurement
Policy Act (41 U.S.C. 403).
‘‘(2) The term ‘market research’ means obtain-
ing specific information about the price, quality, and
time of delivery of products available in the private
sector through a variety of means, which may
include—
‘‘(A) contacting knowledgeable individuals
in government and industry;
‘‘(B) interactive communication among in-
dustry, acquisition personnel, and customers;
and
‘‘(C) interchange meetings or pre-solicita-
tion conferences with potential offerors.’’.
SEC. 
336. 
IMPROVEMENT 
OF 
INFORMATION 
SHARING
AMONG FEDERAL, STATE, AND LOCAL GOV-
ERNMENT OFFICIALS.
(a) PILOT PROJECT TO ENCOURAGE STATE AND
LOCAL OFFICIALS, AS WELL AS REPRESENTATIVES OF
CRITICAL INFRASTRUCTURE, TO COLLECT AND SHARE
RELEVANT INFORMATION.—Section 892(c) of the Home-
land Security Act of 2002 (Public Law 107–296; 6 U.S.C.
482) is amended by adding at the end the following new
paragraph:
‘‘(3)(A) The Under Secretary for Information
Analysis and Infrastructure Protection of the De-
partment of Homeland Security, in consultation with
the Director of Central Intelligence, may conduct
projects in several cities to encourage officials of
State and local government, as well as representa-
tives of industries that comprise the critical infra-
structure in those cities to lawfully collect and to
pass on to the appropriate Federal officials informa-
tion vital for the prevention of terrorist attacks
against the United States.
‘‘(B) The Director of Central Intelligence shall
carry out any duty under this paragraph through
the Director of the Terrorist Threat Integration
Center.
‘‘(C) Under the projects, training shall be pro-
vided to such officials and representatives to—
‘‘(i) identify sources of potential threats
through such methods as the Secretary deter-
mines appropriate;
‘‘(ii) report information relating to such
potential threats to the appropriate Federal
agencies in the appropriate form and manner;
and
‘‘(iii) assure that all reported information
is systematically submitted to and passed on by
the Department for use by appropriate Federal
agencies.
‘‘(D) The Under Secretary shall carry out the
pilot project under this paragraph for a period of 3
years.
‘‘(E) Not later than 1 year after the implemen-
tation of the pilot project, and annually thereafter,
the Under Secretary shall submit to Congress a re-
port on the pilot project conducted under this para-
graph. Each such report shall include—
‘‘(i) an assessment of the effectiveness of
the project; and
‘‘(ii) recommendations on the continuation
of the project as well as any recommendations
to improve the effectiveness of information col-
lection and sharing by such officials and rep-
resentatives and the Federal Government.’’.
(b) PILOT PROJECT TO TEST USE OF TEAR-LINE IN-
TELLIGENCE REPORTS.—(1) Subtitle C of title II of the
Homeland Security Act of 2002 (Public Law 107–296)
is amended by adding at the end the following new section:
‘‘SEC. 226. PILOT PROJECT TO TEST USE OF TEAR-LINE IN-
TELLIGENCE REPORTS.
‘‘(a) AUTHORITY.—The Under Secretary for Infor-
mation Analysis and Infrastructure Protection of the De-
partment of Homeland Security, in consultation with the
Director of Central Intelligence, may carry out a pilot pro-
gram under which the Under Secretary may make intel-
ligence information in the possession of the Department
available to officials of State and local governments
through the use of tear-line intelligence reports.
‘‘(b) TEAR-LINE
INTELLIGENCE
REPORTS
DE-
SCRIBED.—For purpose of this section, a tear-line report
is a report containing intelligence gathered by an agency
or department of the United States that is in the posses-
sion of the Department that is prepared in a manner such
that information relating to intelligence sources and meth-
ods is easily severable from the report to protect such
sources and methods from disclosure. Such a report may
be in a paper or an electronic format.
‘‘(c) DURATION OF PROJECT.—The Under Secretary
shall carry out the pilot project under this section for a
period of 3 years.
‘‘(d) REPORTS TO CONGRESS.—Not later than 1 year
after the implementation of the pilot project, and annually
thereafter, the Under Secretary shall submit to Congress
a report on the pilot project conducted under this section,
and shall include in the report an assessment of—
‘‘(1) the effectiveness of the use of the tear-line
reports in providing intelligence information on a
timely basis to State and local authorities; and
‘‘(2) if the use of such tear-line reports were to
be made permanent, whether additional safeguards
are needed with respect to the use of such reports.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Under Secretary
such sums as may be necessary to carry out this section.’’.
(2) The table of contents in section 1(b) of such Act
is amended in subtitle C of title II by adding at the end
the following new item:
‘‘Sec. 226. Pilot project to test use of tear-line intelligence reports.’’.
(c) HOMELAND DEFENDER INTELLIGENCE TRAIN-
ING PROGRAM.—
(1) ESTABLISHMENT
OF
PROGRAM.—The Di-
rector of Central Intelligence may establish a com-
prehensive program of orientation and training to
qualified State and local officials in accessing and
using available resources of the intelligence commu-
nity (as defined in section 3(4) of the National Secu-
rity Act of 1947 (50 U.S.C. 401(4))).
(2) CONSULTATION.—Insofar as the Director
establishes the intelligence training program under
paragraph (1), the Director shall consult and coordi-
nate with the director of the Federal Bureau of In-
vestigation and the Secretary of Homeland Security
on the development and administration of the pro-
gram.
(3) PROGRAM GOALS.—Any intelligence training
program established under paragraph (1) shall pro-
vide qualified State and local officials instruction on
the mission and roles of the intelligence community
to promote more effective information sharing
among Federal, State, and local officials to prevent
terrorist attacks against the United States.
(4) CURRICULUM.—Insofar as the Director es-
tablishes the intelligence training program under
paragraph (1), the Director shall develop a cur-
riculum for the program after consultation with
qualified State and local officials. The curriculum
shall include classroom instruction with respect to
and orientation to the various elements of the intel-
ligence community.
(5) REPORTS TO CONGRESS.—Not later than 1
year after the initial implementation of the intel-
ligence training program under paragraph (1), and
annually thereafter, the Director shall submit to
Congress a report on the program. Each such report
shall include—
(A) an assessment of the effectiveness of
the project; and
(B) recommendations on the continuation
of the project as well as any recommendations
to improve the effectiveness of information col-
lection and sharing by qualified officials and
representatives and the Federal Government.
(6) QUALIFIED STATE AND LOCAL OFFICIALS
DEFINED.—For purposes of this subsection, the
term ‘‘qualified State and local officials’’ means offi-
cials of State and local government agencies that Di-
rector of Central Intelligence determines—
(A) have received appropriate security
clearances from the Director of the Federal Bu-
reau of Investigation for access to classified in-
formation; and
(B) oversee or manage first responders or
counterterrorism activities.
(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to the Direc-
tor such sums as are necessary to carry out the in-
telligence training program under this subsection.
108TH CONGRESS
1ST SESSION
H. R. 2417
AN ACT
To authorize appropriations for fiscal year 2004 for
intelligence and intelligence-related activities of
the United States Government, the Community
Management Account, and the Central Intel-
ligence Agency Retirement and Disability Sys-
tem, and for other purposes.