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SEC. 307. REPORTS ON FOREIGN INDUSTRIAL ESPIONAGE.
(a) IN GENERAL.—(1) In order to assist Congress in
its oversight functions with respect to this Act and to im-
prove the awareness of United States industry of foreign
industrial espionage and the ability of such industry to pro-
tect against such espionage, the President shall submit to
Congress a report that describes, as of the time of the report,
the following:
(A) The respective policy functions and oper-
ational roles of the agencies of the executive branch of
the Federal Government in identifying and counter-
ing threats to United States industry of foreign in-
dustrial espionage, including the manner in which
such functions and roles are coordinated.
(B) The means by which the Federal Government
communicates information on such threats, and on
methods to protect against such threats, to United
States industry in general and to United States com-
panies known to be targets of foreign industrial espio-
nage.
(C) The specific measures that are being or could
be undertaken in order to improve the activities re-
ferred to in subparagraphs (A) and (B), including
proposals for any modifications of law necessary to
facilitate the undertaking of such activities.
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(D) The threat to United States industry of for-
eign industrial espionage and any trends in that
threat, including—
(i) the number and identity of the foreign
governments conducting foreign industrial espio-
nage;
(ii) the industrial sectors and types of infor-
mation and technology targeted by such espio-
nage; and
(iii) the methods used to conduct such espio-
nage.
(2) The President shall submit the report required
under this subsection not later than 6 months after the date
of the enactment of this Act.
(b) ANNUAL UPDATE.—Not later than 1 year after the
date referred to in paragraph (2) of subsection (a), and on
the expiration of each year thereafter, the President shall
submit to Congress a report updating the information re-
ferred to in paragraph (1)(D) of that subsection.
(c) FORM
OF REPORTS.—To the maximum extent
practicable, the reports referred to in subsections (a) and
(b) shall be submitted in an unclassified form, but may be
accompanied by a classified appendix.
(d) REPORT UNDER DEFENSE PRODUCTION ACT.—
Section 721(k)(1)(B) of the Defense Production Act of 1950
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(50 U.S.C. App. 2170(k)(1)(B)) is amended by inserting
‘‘or directly assisted’’ after ‘‘directed’’.
(e) DEFINITION.—For the purposes of this section,
‘‘foreign industrial espionage’’ means industrial espionage
conducted by a foreign government or by a foreign company
with direct assistance of a foreign government against a
private United States company and aimed at obtaining
commercial secrets.
TITLE 
IV—ADDITIONAL 
COM-
MERCE DEPARTMENT PROVI-
SIONS
SEC. 401. DEPARTMENT OF COMMERCE TECHNOLOGY ADVI-
SORY BOARD.
The Stevenson-Wydler Technology Innovation Act of
1980 (as amended by sections 211 and 213 of this Act) is
further amended by inserting after section 103 (as added
by section 211 of this Act) the following new section:
‘‘SEC. 104. DEPARTMENT OF COMMERCE TECHNOLOGY AD-
VISORY BOARD.
‘‘(a) ESTABLISHMENT.—There is established a Depart-
ment of Commerce Technology Advisory Board (in this sec-
tion referred to as the ‘Advisory Board’), the purpose of
which is to advise the Secretary, Under Secretary, and Di-
rector on the plans, programs, and policies of the Tech-
nology Administration, including ways in which to—
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‘‘(1) promote the development and rapid appli-
cation of advanced commercial technologies, including
advanced manufacturing technologies such as skill-
based production technologies;
‘‘(2) strengthen the programs of the Technology
Administration; and
‘‘(3) generally improve the global competitiveness
of industries within the United States.
‘‘(b) COMPOSITION.—The Advisory Board shall be
composed of at least 17 members, appointed by the Under
Secretary from among individuals who, because of their ex-
perience and accomplishments in technology development,
business development, or finance are exceptionally qualified
to analyze and formulate policy that would improve the
global competitiveness of industries in the United States.
The Under Secretary shall designate one member to serve
as chairman. Membership of the Advisory Board shall be
composed of—
‘‘(1) representatives of—
‘‘(A) United States small businesses;
‘‘(B) United States manufacturers;
‘‘(C) research universities and independent
research institutes;
‘‘(D) State and local government agencies
involved in industrial extension;
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‘‘(E) national laboratories;
‘‘(F) industrial, worker, and technical and
professional organizations; and
‘‘(G) financial organizations; and
‘‘(2) other individuals that possess important in-
sight to issues of national competitiveness.
The Under Secretary shall make an effort to ensure the ap-
pointment of socially and economically disadvantaged indi-
viduals (within the meaning of section 8(a) (5) and (6) of
the Small Business Act, and including women) to the Advi-
sory Board.
‘‘(c) MEETINGS.—(1) The chairman shall call the first
meeting of the Advisory Board not later than 90 days after
the date of enactment of this section.
‘‘(2) The Advisory Board shall meet at least once every
6 months, and at the call of the Under Secretary.
‘‘(d) TRAVEL EXPENSES.—Members of the Advisory
Board, other than full-time employees of the United States,
shall be allowed travel expenses in accordance with sub-
chapter I of chapter 57 of title 5, United Stated Code, while
engaged in the business of the Advisory Board.
‘‘(e) CONSULTATION.—In carrying out this section, the
Under Secretary shall consult with other agencies, as ap-
propriate. The Advisory Board, as appropriate, shall estab-
lish communication and coordination mechanisms with
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other Federal advisory committees to help ensure integrated
Federal-private consideration of technology and manufac-
turing policies and programs.
‘‘(f) TERMINATION.—Section 14 of the Federal Advi-
sory Committee Act shall not apply to the Advisory Board.
‘‘(g) SECRETARIAL
DISCRETION.—Notwithstanding
any other provision of this section, the Secretary shall have
the discretion to decide whether to establish the Advisory
Board or create a more cost-effective way to achieve the goal
of closer cooperation with industry. If the Secretary exer-
cises such discretion and establishes an alternative mecha-
nism, the Under Secretary shall make an effort to ensure
the participation of socially and economically disadvan-
taged individuals (within the meaning of section 8(a) (5)
and (6) of the Small Business Act, and including women)
in the alternative mechanism.’’.
SEC. 402. INTERNATIONAL STANDARDIZATION.
(a) FINDINGS.—The Congress finds that—
(1) private sector consensus standards are essen-
tial to the timely development of competitive products;
(2) Federal Government contribution of resources
and more active participation in the voluntary stand-
ards process in the United States can increase the
quality of United States standards, increase their
compatibility with the standards of other countries,
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and ease access of products manufactured by United
States manufacturers to foreign markets; and
(3) the Federal Government, working in coopera-
tion with private sector organizations including trade
associations, engineering societies, technical organiza-
tions, and other standards-setting bodies can effec-
tively promote Federal Government use of United
States consensus standards and, where appropriate,
the adoption and Federal Government use of inter-
national standards.
(b) STANDARDS PILOT PROGRAM.—Section 104(e) of
the American Technology Preeminence Act of 1991 (Public
Law 102–245; 106 Stat. 10) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Pursuant to the’’;
(2) by striking ‘‘matching funds’’ and inserting
in lieu thereof ‘‘financial contributions deemed appro-
priate by the Secretary’’; and
(3) by adding at the end the following new para-
graph:
‘‘(2) As necessary and appropriate, the Institute shall
expand the program established under section 112 of the
National Institute of Standards and Technology Authoriza-
tion Act for Fiscal Year 1989 (15 U.S.C. 272 note) by ex-
tending the existing program to include other countries that
request assistance with standards-related activities from of-
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ficial representatives of the United States Government. The
Institute may enter into additional contracts with non-Fed-
eral organizations representing United States companies
described in section 28(d)(9)(B) of the National Institute
of 
Standards 
and 
Technology 
Act 
(15 
U.S.C.
278n(d)(9)(B)) or with United States-based professional so-
cieties and other standards-setting bodies that participate
in the development of standards. Such contracts shall re-
quire cost sharing between Federal and non-Federal sources
for such purposes. In awarding such contracts, the Institute
shall seek to promote and support the dissemination of
United States technical standards to additional foreign
countries and shall seek, as the Director deems appropriate,
to promote the adoption of international standards sup-
ported by United States industry, and shall seek to assist
private sector developers of standards, including engineer-
ing societies which participate in the development of stand-
ards in expediting the development of domestic and other
standards which enable the introduction of technologies,
products, or technology-based services which are being de-
layed due to the lack of available standards. The Institute
and such contractors shall, in carrying out the preceding
sentence, cooperate with governmental bodies, private orga-
nizations (including standards setting organizations and
industry), and multinational institutions that promote eco-
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nomic development. The organizations receiving such con-
tracts may establish training programs to bring to the
United States foreign standards experts for the purpose of
receiving in-depth training in the United States standards
system.’’.
(c) REPORT
ON GLOBAL STANDARDS.—(1) Section
508(a) of the American Technology Preeminence Act of
1991 (15 U.S.C. 3701 note) is amended—
(A) by inserting ‘‘standards development and
international’’ after ‘‘a thorough review of inter-
national’’;
(B) by redesignating paragraphs (1) through (5)
as paragraphs (2) through (6), respectively; and
(C) by inserting before paragraph (2), as so re-
designated, the following new paragraph:
‘‘(1) Current and potential future roles of the Federal
Government in the development and promulgation of do-
mestic and global product and process standards.’’.
(2) The Secretary, in consultation with the Institute
and the Department of Commerce Technology Advisory
Board established under section 104 of the Stevenson-
Wydler Technology Innovation Act of 1980 (as added by
section 401 of this Act) and with, as appropriate, the active
participation of the private sector, shall submit to the Con-
gress a report describing the appropriate roles of the De-
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partment of Commerce in aid to United States companies
in achieving conformity assessment and accreditation and
otherwise qualifying their products in foreign markets,
through the development and promulgation of domestic and
global product and quality standards, and through Depart-
ment of Commerce programs related to conformity assess-
ment and accreditation procedures based upon such stand-
ards, including a discussion of the extent to which each of
the policy options provided in the March 1992 Office of
Technology Assessment report on global standards, contrib-
utes to meeting the goals of—
(A) increasing the international adoption of
standards beneficial to United States industries; and
(B) improving the coordination of United States
representation at international standards setting bod-
ies.
SEC. 403. MALCOLM BALDRIGE AWARD AMENDMENTS.
(a) RESTRICTIONS.—Section 111(c)(3) of the Steven-
son-Wydler Technology Innovation Act of 1980, as so redes-
ignated by section 213(5) of this Act, is amended to read
as follows:
‘‘(3) No award shall be made within any category or
subcategory if there are no qualifying enterprises in that
category or subcategory.’’.
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(b) CATEGORIES IN WHICH AWARD MAY BE GIVEN.—
(1) Section 111(c)(1) of the Stevenson-Wydler Technology
Innovation Act of 1980, as so redesignated by section 213(5)
of this Act, is amended by adding at the end the following
new subparagraph:
‘‘(D) Educational institutions.’’.
(2)(A) Within 2 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report
containing—
(i) criteria for qualification for a Malcolm
Baldrige National Quality Award by various classes
of educational institutions;
(ii) criteria for the evaluation of applications for
such awards under section 111(d)(1) of the Stevenson-
Wydler Technology Innovation Act of 1980, as so re-
designated by section 213(5) of this Act; and
(iii) a plan for funding awards described in
clause (i).
(B) In preparing the report required under subpara-
graph (A), the Secretary shall consult with the National
Science Foundation and other public and private entities
with appropriate expertise, and shall provide for public no-
tice and comment.
(C) The Secretary shall not accept applications for
awards described in subparagraph (A)(i) until after the re-
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port required under subparagraph (A) is submitted to Con-
gress.
SEC. 404. COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENTS.
Section 202(d)(2)(A) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980, as so redesignated by section
213(7) of this Act, by inserting ‘‘including Federal test and
evaluation facilities,’’ after ‘‘by a Federal agency,’’.
SEC. 405. PROGRAM EVALUATIONS.
Section 101 of the Stevenson-Wydler Technology Inno-
vation Act of 1980, as so redesignated by section 213(2)
of this Act and as amended by this Act, is further amended
by adding at the end the following new subsection:
‘‘(g) PROGRAM EVALUATIONS.—(1) The Secretary,
through the Under Secretary, shall—
‘‘(A) provide for the conduct of research and
analyses to advance knowledge of the ways in which
the economic competitiveness of United States compa-
nies can be enhanced through Federal programs estab-
lished under the National Competitiveness Act of 1994
or the amendments made by that Act; and
‘‘(B) as appropriate, provide for evaluations of
Federal technology programs established or expanded
under the National Competitiveness Act of 1994 or the
amendments made by that Act in order to judge their
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effectiveness and make recommendations to improve
their contribution to United States competitiveness.
‘‘(2) All executive departments and agencies shall as-
sist the Secretary in carrying out this subsection as appro-
priate.
‘‘(3) Nothing in this subsection shall authorize the re-
lease of information to, or the use of information by, the
Secretary or Under Secretary in a manner inconsistent
with law or any procedure established pursuant thereto.
‘‘(4) The head of any Federal agency may detail such
personnel and may provide such services, with or without
reimbursement, as the Secretary may request to assist in
carrying out the activities required under this subsection.’’.
SEC. 406. STUDY OF SEMICONDUCTOR LITHOGRAPHY TECH-
NOLOGIES.
Within 9 months after the date of enactment of this
Act, the Critical Technologies Institute established under
section 822 of the National Defense Authorization Act for
Fiscal Year 1991 (42 U.S.C. 6686) shall, after consultation
with the private sector and appropriate officials from other
Federal agencies, submit to Congress a report on advanced
lithography technologies for the production of semiconductor
devices. The report shall include the Critical Technologies
Institute’s evaluation of the likely technical and economic
advantages and disadvantages of each such technology, an
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analysis of current private and Government research to de-
velop each such technology, and any recommendations the
Critical Technologies Institute may have regarding future
Federal support for research and development in advanced
lithography.
SEC. 407. CLEARINGHOUSE ON STATE AND LOCAL INITIA-
TIVES.
Section 105(a) of the Stevenson-Wydler Technology In-
novation Act of 1980, as so redesignated by section 213(5)
of this Act, is amended by striking ‘‘Office of Productivity,
Technology, and Innovation’’ and inserting in lieu thereof
‘‘Technology Administration’’.
SEC. 408. WIND ENGINEERING RESEARCH PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Wind Engineering Program Act of 1994’’.
(b) FINDINGS.—Congress finds and declares the follow-
ing:
(1) Hurricanes and tornadoes kill more Ameri-
cans and destroy more property than any other natu-
ral disaster.
(2) Each year, in the United States, extreme
winds cause billions of dollars of damage to homes,
schools, and other buildings, roads and bridges, elec-
trical power distribution networks, and communica-
tions networks.
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(3) Research on wind and wind engineering has
resulted in improved methods for making buildings
and other structures less vulnerable to extreme winds,
but additional research funding is needed to develop
new, improved, and more cost-effective methods of
wind-resistant construction.
(4) Federal funding for wind engineering re-
search has decreased drastically over the last 20 years.
(5) Wind research has been hampered by a lack
of data on near-surface wind speed and distribution
during hurricanes, tornadoes, and other severe storms.
(6) Many existing methods for wind-resistant
construction are inexpensive and easy to implement
but often they are not applied because the construc-
tion industry and the general public are unaware of
such methods.
(7) Various Federal agencies have important
roles to play in wind engineering research, but at
present there is little interagency cooperation in this
area.
(8) Establishment of a Federal Wind Engineer-
ing Program would result in new technologies for
wind-resistant construction, broader application of
such technologies in construction, and ultimately de-
creased loss of life and property due to extreme winds.
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(c) PURPOSE.—The purpose of this section is to create
a Wind Engineering Program within the National Institute
of Standards and Technology, which would—
(1) provide for wind engineering research;
(2) serve as a clearinghouse for information on
wind engineering; and
(3) improve interagency coordination on wind
engineering research between the National Institute of
Standards and Technology, the National Oceanic and
Atmospheric Administration, the National Science
Foundation, the Federal Aviation Administration,
and other appropriate agencies.
(d) ESTABLISHMENT.—Within the National Institute
of Standards and Technology, there shall be established a
Wind Engineering Program which shall—
(1) conduct research and development, in co-
operation with the private sector and academia, on
new methods for mitigating wind damage due to tor-
nadoes, hurricanes, and other severe storms;
(2) fund construction and maintenance of wind
tunnels and other research facilities needed for wind
engineering research;
(3) promote the application of existing methods
for, and research results on, reducing wind damage to
buildings that are usually incompletely- or non-engi-
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neered, such as single family dwellings, mobile homes,
light industrial buildings, and small commercial
structures;
(4) transfer technology developed in wind engi-
neering research to the private sector so that it may
be applied in building codes, design practice, and
construction;
(5) conduct, in conjunction with the National
Oceanic and Atmospheric Administration, post-disas-
ter research following hurricanes, tornadoes, and other
severe storms to evaluate the vulnerability of different
types of buildings to extreme winds;
(6) serve as a point of contact for dissemination
of research information on wind engineering and
work with the private sector to develop education and
training programs on construction techniques, devel-
oped from research results, for reducing wind damage;
(7) work with the National Oceanic and Atmos-
pheric Administration, the Federal Aviation Admin-
istration, and other agencies as is appropriate, on
meteorology programs to collect and disseminate more
data on extreme wind events; and
(8) work with the National Science Foundation
to support and expand basic research on wind engi-
neering.
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SEC. 409. ENVIRONMENTALLY SENSITIVE CONSTRUCTION
TECHNOLOGIES.
(a) SHORT TITLE.—This section may be cited as the
‘‘Environmentally Sensitive Construction Act of 1994’’.
(b) FINDINGS AND PURPOSES.—Congress finds the fol-
lowing:
(1) As the world economy develops, environ-
mental concerns are becoming increasingly critical.
(2) Developing the world economy through the
use of environmentally sound technologies will pay
dividends for years to come.
(3) The United States should be a leader in de-
veloping environmentally sound technologies.
(4) As shelter is a basic human need, the devel-
opment of environmentally sound construction tech-
niques should be a priority area.
(5) Establishment of a Federal Environmentally
Sensitive Construction Program within the Institute
would result in new technologies for environmentally
sensitive construction, broader application of such
technologies in construction, and an improved world
economy and environment.
(c) ESTABLISHMENT.—Within the Institute, there shall
be established a Federal Environmentally Sensitive Con-
struction Program which shall—
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(1) conduct research and development, in co-
operation with the private sector and academia, on
construction materials and techniques which result in
structures which pose low environmental and health
risks for their occupants and minimize waste genera-
tion and other environmental problems;
(2) as appropriate and permitted by appropria-
tions, support academic research projects in regions
around the Nation to develop and demonstrate envi-
ronmentally sensitive construction; and
(3) disseminate information on environmentally
sensitive construction technology.
SEC. 410. AMERICAN WORKFORCE QUALITY.
(a) WORKFORCE ACTIVITIES.—In addition to existing
responsibilities and authorities prescribed by law, the Sec-
retary, through the Director and after consultation with the
Secretary of Labor, shall ensure that Regional Centers for
the Transfer of Manufacturing Technology and Manufac-
turing Outreach Centers utilize, when appropriate, their ex-
pertise and capability to assist managers and workers of
manufacturers in the United States in effectively utilizing
and operating advanced manufacturing technologies and
modern technologies—
(1) by making available assessments of the needs
of manufacturers in the United States for worker
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training in the effective utilization and operation of
specific technologies the manufacturers have adopted
or are planning to adopt;
(2) by making available to manufacturers in the
United States information on commercially and pub-
licly provided worker training services, including
those provided by United States sources of tech-
nologies, in the effective utilization and operation of
specific technologies the manufacturers have adopted
or are planning to adopt; and
(3) by providing information to client firms and
their workers to enable them effectively to utilize and
operate specific technologies that the firms have
adopted or plan to adopt.
(b) WORKFORCE ANALYSIS AND INFORMATION DIS-
SEMINATION.—In addition to existing responsibilities and
authorities prescribed by law, the Secretary, through the Di-
rector and in consultation with the Secretary of Labor and
other appropriate Federal officials and with leaders of in-
dustry and labor, shall assist managers and other workers
of manufacturers in the United States in effectively utiliz-
ing and operating advanced manufacturing technologies
and modern technologies—
(1) by establishing and managing a clearing-
house for information, to be available through an ap-
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propriate entity to the Regional Centers for the
Transfer of Manufacturing Technology, to the Manu-
facturing Outreach Centers when they are established,
to other technology training entities, or directly to
manufacturers, on the best available training mate-
rial and services for the effective utilization and oper-
ation of specific advanced manufacturing technologies
and modern technologies;
(2) by encouraging United States providers of
advanced manufacturing technologies and modern
technologies for manufacturers to develop training
material specifically designed for the managers and
other workers responsible for utilizing and operating
such technologies; and
(3) by establishing as an important criterion in
the assessment of advanced manufacturing tech-
nologies and modern technologies the availability of
training material specifically designed for the man-
agers and other workers responsible for utilizing and
operating such technologies.
SEC. 411. SEVERABILITY.
If any provision of this Act or the amendments made
by this Act, or the application thereof to any person or cir-
cumstance, is held invalid, the remainder of this Act and
the amendments made by this Act, and the application
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thereof to other persons or circumstances, shall not be af-
fected thereby.
SEC. 412. USE OF DOMESTIC PRODUCTS.
(a) PROHIBITION AGAINST FRAUDULENT USE
OF
‘‘MADE IN AMERICA’’ LABELS.—(1) A person shall not in-
tentionally affix a label bearing the inscription of ‘‘Made
in America’’, or any inscription with that meaning, to any
product sold in or shipped to the United States, if that
product is not a domestic product.
(2) A person who violates paragraph (1) shall not be
eligible for any contract for a procurement carried out with
amounts authorized under this Act, or under any amend-
ment made by this Act, including any subcontract under
such a contract pursuant to the debarment, suspension, and
ineligibility procedures in subpart 9.4 of chapter 1 of title
48, Code of Federal Regulations, or any successor proce-
dures thereto.
(b) COMPLIANCE WITH BUY AMERICAN ACT.—(1) Ex-
cept as provided in paragraph (2), the head of each agency
which conducts procurements shall ensure that such pro-
curements are conducted in compliance with sections 2
through 4 of the Act of March 3, 1933 (41 U.S.C. 10a
through 10c, popularly known as the ‘‘Buy American Act’’).
(2) This subsection shall apply only to procurements
made for which—
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(A) amounts are authorized by this Act, or by
any amendment made by this Act, to be made avail-
able; and
(B) solicitations for bids are issued after the date
of enactment of this Act.
(3) The Secretary, before January 1, 1995, shall report
to the Congress on procurements covered under this sub-
section of products that are not domestic products.
(c) PURCHASE OF AMERICAN MADE EQUIPMENT AND
PRODUCTS.—(1) It is the sense of Congress that any recipi-
ent of a grant under this Act, or under any amendment
made by this Act, should, when practical, purchase only
American made equipment and products when expending
grant monies.
(2) In allocating grants under this Act, or under any
amendment made by this Act, the Secretary shall provide
to each recipient a notice describing the statement made
in paragraph (1) by the Congress.
(d) DEFINITION.—For the purposes of this section, the
term ‘‘domestic product’’ means a product—
(1) that is manufactured or produced in the
United States; and
(2) at least 50 percent of the cost of the articles,
materials, or supplies of which are mined, produced,
or manufactured in the United States.
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SEC. 413. PERSONNEL.
Notwithstanding any other provision of law, the per-
sonnel management demonstration project, established
under section 10 of the National Bureau of Standards Au-
thorization Act for Fiscal Year 1987 (15 U.S.C. 275 note),
is extended until December 31, 1998.
TITLE V—AUTHORIZATIONS OF
APPROPRIATIONS
SEC. 501. TECHNOLOGY ADMINISTRATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary, to carry out
the activities of the Under Secretary and the Assistant Sec-
retary of Commerce for Technology Policy, in addition to
any other amounts authorized for such purposes, for the Of-
fice of the Under Secretary—
(1) $6,000,000 for fiscal year 1994;
(2) $11,300,000 for fiscal year 1995, of which
$2,000,000 are authorized for program evaluations
under section 101(g) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980, as added by section
405 of this Act; and
(3) $14,000,000 for fiscal year 1996.
(b) NATIONAL TECHNICAL INFORMATION SERVICE FA-
CILITIES STUDY.—As part of its modernization effort and
before signing any lease for a new facility, the National
Technical Information Service, in consultation with the
100
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General Services Administration, shall study and report to
Congress on the feasibility of accomplishing all or part of
its modernization by signing a long-term lease with an or-
ganization that agrees to supply a facility and supply and
periodically upgrade modern equipment which permits the
National Technical Information Service to receive, store,
and manipulate in electronic form, and print, electroni-
cally-created documents and reports and to carry out the
other functions assigned to the National Technical Informa-
tion Service.
SEC. 502. NATIONAL INSTITUTE OF STANDARDS AND TECH-
NOLOGY.
(a) INTRAMURAL SCIENTIFIC
AND TECHNICAL RE-
SEARCH AND SERVICES.—(1) There are authorized to be ap-
propriated to the Secretary, to carry out the intramural
scientific and technical research and services activities of
the 
Institute, 
$240,988,000 
for 
fiscal 
year 
1994,
$320,000,000 for fiscal year 1995, and $350,000,000 for fis-
cal year 1996.
(2) Of the amounts authorized under paragraph (1)—
(A) $1,000,000 for each of the fiscal years 1994,
1995, and 1996 are authorized only for the evaluation
of nonenergy-related inventions;
(B) $8,054,000 for fiscal year 1994 and
$8,113,000 for each of the fiscal years 1995 and 1996
101
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are authorized only for the technical competence fund;
and
(C) $5,000,000 for each of the fiscal years 1994,
1995, and 1996 are authorized only for the standards
pilot project established under section 104(e) of the
American Technology Preeminence Act of 1991 (Pub-
lic Law 102–245; 106 Stat. 10).
(b) FACILITIES.—In addition to the amounts author-
ized under subsection (a), there are authorized to be appro-
priated to the Secretary $62,000,000 for fiscal year 1994,
$110,392,000 for fiscal year 1995, and $112,000,000 for fis-
cal year 1996, for the renovation and upgrading of the In-
stitute’s facilities. The Institute may enter into a contract
for the design work for such purposes only if Federal Gov-
ernment payments under the contract are limited to
amounts provided in advance in appropriations Acts.
(c) EXTRAMURAL INDUSTRIAL TECHNOLOGY SERV-
ICES.—(1) In addition to the amounts authorized under
subsections (a) and (b), there are authorized to be appro-
priated to the Secretary, to carry out the extramural indus-
trial technology services activities of the Institute—
(A) for the Manufacturing Extension Partner-
ship, $40,000,000 for fiscal year 1994, $70,000,000
for fiscal year 1995, and $100,000,000 for fiscal year
1996;
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(B) for the Advanced Technology Program,
$200,000,000 for fiscal year 1994, $475,000,000 for
fiscal year 1995, and $575,000,000 for fiscal year
1996; and
(C) for quality programs at the Institute,
$2,800,000 for fiscal year 1994, $10,000,000 for fiscal
year 1995, and $10,000,000 for fiscal year 1996.
(2) The Secretary shall ensure that audits are per-
formed by outside auditors on the programs for which funds
are appropriated pursuant to this subsection. The summary
results of such audits shall be submitted to Congress by the
end of each of the fiscal years 1994 and 1995, and not more
than $2,000,000, or 2 percent of the aggregate amount made
available under this subsection, whichever is greater, shall
be used in each such fiscal year for performing the audits.
(d) TRANSFERS.—(1) Funds may be transferred
among the line items listed in subsection (a) and among
the line items listed in subsection (c) so long as—
(A) the net funds transferred to or from any line
item do not exceed 10 percent of the amount author-
ized for that line item in such subsection;
(B) the aggregate amount authorized under sub-
section (a) is not changed; and
(C) the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
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Science, Space, and Technology of the House of Rep-
resentatives are notified in advance of any such
transfer.
(2) The Secretary may propose transfers to or from
any line item listed in subsection (a) exceeding 10 percent
of the amount authorized from such line item, but such pro-
posed transfer may not be made unless—
(A) a full and complete explanation of any such
proposed transfer and the reason therefor are trans-
mitted in writing to the Speaker of the House of Rep-
resentatives, the President of the Senate, and the ap-
propriate authorizing committees of the House of
Representatives and the Senate; and
(B) 30 days have passed following the trans-
mission of such written explanation.
(e) WIND ENGINEERING.—(1) There are authorized to
be appropriated to the Institute for the purposes of section
408 of this Act, $1,000,000 for fiscal year 1994 and
$3,000,000 for each of the fiscal years 1995 and 1996.
(2) Of the amounts appropriated under paragraph (1),
no less than 50 percent shall be used for cooperative agree-
ments with the National Oceanic and Atmospheric Admin-
istration, the National Science Foundation, and the Federal
Aviation Administration, or other agencies, for wind engi-
neering research, development of improved practices for
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structures, and the collection and dissemination of meteoro-
logical data needed for wind engineering.
(f) ENVIRONMENTALLY
SENSITIVE
CONSTRUCTION
PROGRAM.—There are authorized to be appropriated to the
Institute for the purposes of section 409, $1,000,000 for fis-
cal year 1994 and $3,000,000 for fiscal year 1995.
SEC. 503. ADDITIONAL ACTIVITIES OF THE TECHNOLOGY
ADMINISTRATION.
In addition to the amounts authorized under sections
501 and 502, there are authorized to be appropriated to
the Secretary to carry out additional duties of the Under
Secretary—
(1) for the establishment and management of a
technology training clearinghouse, $2,000,000 for each
of the fiscal years 1994 and 1995 and $3,000,000 for
fiscal year 1996;
(2) for the support of policy experiments relating
to intelligent manufacturing systems, $2,000,000 for
fiscal year 1995 and $4,000,000 for fiscal year 1996;
(3) for carrying out responsibilities for tech-
nology monitoring and competitiveness assessment,
$10,000,000 for each of the fiscal years 1994 and
1995 and $12,000,000 for fiscal year 1996;
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(4) for the National Technical Information Serv-
ice revolving fund, $20,000,000 for each of the fiscal
years 1995 and 1996; and
(4) for the purpose of carrying out the technology
financing 
pilot 
program 
under 
section 
306,
$2,000,000 for fiscal year 1994 to prepare the operat-
ing plan and promulgate regulations required under
that section and $50,000,000 for each of the fiscal
years 1995 and 1996 to carry out the provisions of
that section.
SEC. 504. NATIONAL SCIENCE FOUNDATION.
In addition to such other sums as may be authorized
by other provisions of law to be appropriated to the Director
of the National Science Foundation, there are authorized
to be appropriated to that Director, to carry out the provi-
sions of section 221, $50,000,000 for fiscal year 1994 and
$75,000,000 for each of the fiscal years 1995 and 1996.
SEC. 505. AVAILABILITY OF APPROPRIATIONS.
Appropriations made under the authority provided in
this title shall remain available for obligation, for expendi-
ture, or for obligation and expenditure for periods specified
in the Acts making such appropriations.
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TITLE VI—INFORMATION
TECHNOLOGY APPLICATIONS
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Information Technology
Applications Act of 1994’’.
SEC. 602. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds and declares the follow-
ing:
(1) High-performance computing and high-speed
networks have proven to be powerful tools for improv-
ing America’s national security, industrial competi-
tiveness, and research capabilities.
(2) Federal programs, such as the National
High-Performance Computing Program established by
Congress in 1991, have played a key role in main-
taining United States leadership in high-performance
computing, especially in the defense and research sec-
tors.
(3) High-performance computing and high-speed
networking have the potential to revolutionize many
fields, including education, libraries, health care, and
manufacturing, if adequate resources are invested in
developing the technology needed to do so.
(4) The Federal Government should ensure that
the technology developed under research and develop-
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ment programs such as the National High-Perform-
ance Computing Program can be widely applied for
the benefit of all Americans, including Americans
with disabilities.
(5) The Federal Government, in cooperation with
computer users, private industry, and others, should
support research and development projects which will
provide large economic and social benefits. These
projects, designed to address major National Chal-
lenges, should include the development of computing
tools for teaching, digital libraries of electronic infor-
mation, computer systems to improve the delivery of
health care, and computer and networking technology
to promote United States competitiveness. These ap-
plications should be designed and operated in ways
which protect privacy and intellectual property
rights.
(b) PURPOSE.—It is the purpose of this title to expand
the scope of the National High-Performance Computing
Program to identify and promote the development of appli-
cations of high-performance computing and high-speed
networking which will provide large economic and social
benefits to the Nation.
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SEC. 603. INFORMATION TECHNOLOGY APPLICATIONS.
(a) FINDINGS, PURPOSE, AND DEFINITIONS OF HIGH-
PERFORMANCE COMPUTING ACT.—The High-Performance
Computing Act of 1991 (15 U.S.C. 5501 et seq.) is amend-
ed—
(1) in section 2, by amending paragraph (4) to
read as follows:
‘‘(4) High-capacity and high-speed computer networks
would provide researchers and educators with access to com-
puter and information resources and act as test beds for
further research and development.’’;
(2) in section 3—
(A) by amending paragraph (1)(A) to read
as follows:
‘‘(A) accelerate the creation of a universally ac-
cessible communications network for the Nation;’’;
(B) in paragraph (1)(C), by striking
‘‘available for use through the Network’’;
(C) in paragraph (1)(G), by inserting ‘‘and
National Challenges’’ after ‘‘Grand Challenges’’;
and
(D) by striking ‘‘and’’ at the end of para-
graph (1)(I); by striking the period at the end of
paragraph (2) and inserting in lieu thereof ‘‘;
and’’; and by adding after paragraph (2) the fol-
lowing new paragraph:
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‘‘(3) promoting the widest possible application of high-
performance computing and high-speed networking by—
‘‘(A) identifying and addressing specific Na-
tional Challenges, and generally expanding Federal
support for research and development of high-perform-
ance computing and high-speed networking, in order
to—
‘‘(i) improve education at all levels, from
preschool to adult education, including the devel-
opment of new educational technologies;
‘‘(ii) build digital libraries of electronic in-
formation accessible over computer networks;
‘‘(iii) improve the provision of health care,
including furnishing health care providers and
their patients with better, more accurate, and
more timely information; and
‘‘(iv) increase the productivity of the Na-
tion’s industry, especially in the manufacturing
sector; and
‘‘(B) improving coordination of Federal efforts to
deploy these technologies in cooperation with the pri-
vate sector as part of an advanced national informa-
tion infrastructure.’’;
(3) in section 4, by striking paragraph (4); by
redesignating paragraph (5) as paragraph (7); and
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by inserting after paragraph (3) the following new
paragraphs:
‘‘(4) ‘information infrastructure’ means a network of
communications systems and computer systems designed to
exchange information among all citizens and residents of
the United States;
‘‘(5) ‘National Challenge’ means a technical or oper-
ational difficulty or problem which, if successfully solved,
will result in an application of high-performance comput-
ing or high-speed networking that will provide large eco-
nomic and social benefits to a broad segment of the Nation’s
populace;
‘‘(6) ‘Network Program’ means the National Research
and Education Network Program established under section
102; and’’.
(b) NATIONAL HIGH-PERFORMANCE COMPUTING PRO-
GRAM.—Section 101 of the High-Performance Computing
Act of 1991 is amended—
(1) in subsection (a)(2)—
(A) by amending subparagraphs (A) and
(B) to read as follows:
‘‘(A) foster and encourage competition and
private-sector investment in networking within
the telecommunications industry;
‘‘(B) encourage—
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‘‘(i) a diversity of public and private
sources for information products and serv-
ices based on government information; and
‘‘(ii) the dissemination of government
information to the public on a timely, equi-
table, and affordable basis and in a manner
that will promote the usefulness of the infor-
mation to the public;’’; and
(B) by striking ‘‘and’’ at the end of sub-
paragraph (H); by striking the period at the end
of subparagraph (I) and inserting in lieu thereof
a semicolon; and by inserting after subpara-
graph (I) the following new subparagraphs:
‘‘(J) provide for the development and, as
appropriate, implementation of applications of
high-performance computing and high-speed
networking, through projects which address Na-
tional Challenges in the fields of education, li-
brary science, health care, manufacturing, provi-
sion of government information, and other ap-
propriate fields;
‘‘(K) identify each Program agency’s re-
sponsibility for addressing National Challenges
in high-performance computing and high-speed
networking; and
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‘‘(L) provide for the development, to the ex-
tent technologically feasible, of technology to pro-
tect privacy, security, and intellectual property
rights (including copyrights).’’;
(2) in subsection (a)(4)(C), by inserting ‘‘devel-
opment of applications technology,’’ after ‘‘develop-
ment,’’; and by inserting ‘‘Program established in sec-
tion 102’’ after ‘‘Network’’; and
(3) in subsection (a)(4), by striking ‘‘and’’ at the
end of subparagraph (D); by striking the period at
the end of subparagraph (E) and inserting in lieu
thereof a semicolon; and by adding at the end the fol-
lowing new subparagraphs:
‘‘(F) include a summary of the achieve-
ments of Federal efforts during the preceding fis-
cal year to develop technologies needed for an ad-
vanced information infrastructure;
‘‘(G) identify steps agencies are taking to
develop technology to protect privacy, security,
and intellectual property rights (including copy-
rights) for computer networks; and
‘‘(H) provide any recommendations regard-
ing additional action or legislation which may
be required to assist in achieving the purposes of
this title.’’; and
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(4) by inserting after subsection (c) the following
new subsection:
‘‘(d) COPYRIGHT LAW.—Nothing in this Act shall be
construed to modify or otherwise change any provision of
title 17, United States Code.’’.
SEC. 604. APPLICATIONS FOR EDUCATION AND LIBRARIES.
(a) NATIONAL SCIENCE FOUNDATION ACTIVITIES.—
Section 201 of the High-Performance Computing Act of
1991 (15 U.S.C. 5521) is amended—
(1) in subsection (a), by striking ‘‘and’’ at the
end of paragraph (3); by striking the period at the
end of paragraph (4) and inserting in lieu thereof a
semicolon; and by adding at the end the following
new paragraphs:
‘‘(5) the National Science Foundation and the Depart-
ment of Education, in cooperation with other appropriate
agencies, shall provide for the development of advanced com-
puting and networking technology for use in education at
all levels; and
‘‘(6) the National Science Foundation, the Department
of Education, and other appropriate agencies shall provide
for the development and use of technologies needed for digi-
tal libraries of computerized data and information and, as
appropriate, may work with private and nonprofit institu-
tions to develop prototype digital libraries to serve as test
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beds for advanced computing systems, software, standards,
and methods.’’; and
(2) in subsection (b), by striking ‘‘$305,000,000’’
and inserting in lieu thereof ‘‘$339,000,000’’; and by
striking ‘‘$354,000,000’’ and inserting in lieu thereof
‘‘$404,000,000’’.
(b) NATIONAL AERONAUTICS AND SPACE ADMINISTRA-
TION ACTIVITIES.—(1) Section 202(a) of the High-Perform-
ance Computing Act of 1991 (15 U.S.C. 5522(a)) is amend-
ed to read as follows:
‘‘(a) GENERAL RESPONSIBILITIES.—As part of the
Program described in title I, the National Aeronautics and
Space Administration shall—
‘‘(1) conduct basic and applied research in high-
performance computing, particularly in the field of
computational science, with emphasis on aerospace
sciences, earth and space sciences, and remote explo-
ration and experimentation; and
‘‘(2) provide for the development of technologies
needed for digital libraries and electronic informa-
tion.’’.
(2) Section 202(b) of the High-Performance Comput-
ing Act of 1991 (15 U.S.C. 5522(b)) is amended by striking
‘‘$134,000,000’’ 
and 
inserting 
in 
lieu 
thereof
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‘‘$154,000,000’’; and by striking ‘‘$151,000,000’’ and in-
serting in lieu thereof ‘‘$181,000,000’’.
(c) ROLE OF DEPARTMENT OF EDUCATION.—Section
206 of the High-Performance Computing Act of 1991 (15
U.S.C. 5526) is amended to read as follows:
‘‘SEC. 206. ROLE OF THE DEPARTMENT OF EDUCATION.
‘‘(a) GENERAL RESPONSIBILITIES.—As part of the
Program described in title I—
‘‘(1) the Secretary of Education is authorized to
conduct basic and applied research in computational
research with the emphasis on the coordination of ac-
tivities with libraries, school facilities, and edu-
cational research groups with respect to the advance-
ment and dissemination of computer science and the
development, evaluation, and application of software
capabilities; and
‘‘(2) the Department of Education, in coopera-
tion with the National Science Foundation and other
agencies as appropriate, shall provide for the develop-
ment of advanced computing and networking tech-
nology at all educational levels; the development and
use of technologies needed for digital libraries of com-
puterized data and information; and the development
and implementation of training programs for teach-
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ers, students, and librarians in the use of local and
national computer networks.
‘‘(b) AUTHORIZATIONS OF APPROPRIATIONS.—From
sums otherwise authorized to be appropriated to the Depart-
ment of Education, there are authorized to be appropriated
for the purposes of carrying out responsibilities under sub-
section (a) of this section, $11,900,000 for fiscal year 1994;
$22,100,000 for fiscal year 1995; and $2,300,000 for fiscal
year 1996.’’.
SEC. 605. APPLICATIONS FOR MANUFACTURING AND IN-
FORMATION.
Section 204 of the High-Performance Computing Act
of 1991 (15 U.S.C. 5524) is amended—
(1) in subsection (a)(1), by striking ‘‘and’’ at the
end of subparagraph (B), and by inserting after sub-
paragraph (C) the following new subparagraph:
‘‘(D) develop, refine, test, and transfer, in
coordination with other agencies when appro-
priate, advanced computer-integrated, electroni-
cally-networked manufacturing technologies and
associated applications; and’’;
(2) in subsection (a), by striking the period at
the end of paragraph (2) and inserting in lieu thereof
‘‘; and’’; and by adding at the end the following new
paragraph:
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‘‘(3) the Secretary of Commerce and, as appropriate,
other Federal officials shall, in consultation with the Super-
intendent of Documents, identify and support projects to
develop and apply high-performance computing and high-
speed networking technologies to provide improved public
access to information generated by Federal, State, and local
governments, including environmental monitoring informa-
tion.’’; and
(3) in subsection (d)—
(A) in paragraph (1), by inserting ‘‘(other
than Advanced Manufacturing Program activi-
ties)’’ after ‘‘Program’’ and by striking ‘‘and’’ at
the end of the paragraph;
(B) by striking the period at the end of
paragraph (2) and inserting in lieu thereof ‘‘;
and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) to the Secretary of Commerce to carry out Pro-
gram activities under subsection (a)(3), $30,000,000 for fis-
cal year 1994 and $50,000,000 for fiscal year 1995.’’.
SEC. 606. APPLICATIONS IN ENERGY AND OTHER AREAS.
Section 203 of the High-Performance Computing Act
of 1991 (15 U.S.C. 5523) is amended by adding at the end
the following new subsection:
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‘‘(f) APPLICATIONS.—(1) The Secretary of Energy
shall, consistent with the Program, develop, test, and apply
high-performance computing and high-speed networking
technologies in areas within the Department’s missions, in-
cluding—
‘‘(A) energy demand management and control,
including vehicle efficiency and utilization, energy ef-
ficiency in commercial and residential buildings, and
industry energy use and practices;
‘‘(B) environmental monitoring, modeling, and
remediation;
‘‘(C) manufacturing;
‘‘(D) materials;
‘‘(E) the generation of electricity and the produc-
tion and consumption of oil, natural gas, and coal;
and
‘‘(F) other areas in which the Department’s com-
puting expertise may assist industry and others, in-
cluding applications in health care, education and
training, financial services, and law enforcement.
‘‘(2) The Secretary of Energy shall provide for cooper-
ative projects involving the Department of Energy and one
or more Department of Energy laboratories and appro-
priate non-Federal entities in carrying out this subsection.
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‘‘(3) In carrying out projects under paragraph (2), the
Secretary of Energy shall, where appropriate, seek to ad-
dress the technical and other considerations critical to fur-
ther development of the technologies and applications useful
for a national information infrastructure.
‘‘(4) There is authorized to be appropriated to the Sec-
retary of Energy for purposes of this subsection,
$50,000,000 for fiscal year 1994, $100,000,000 for fiscal
year 1995, and $150,000,000 for fiscal year 1996.’’.
SEC 607. APPLICATIONS FOR HEALTH CARE; ACCESS TO
NETWORKS.
The High-Performance Computing Act of 1991 (15
U.S.C. 5501 et seq.) is amended—
(1) by redesignating sections 207 and 208 as sec-
tions 209 and 210, respectively; and
(2) by adding after section 206 the following new
sections:
‘‘SEC. 207. ROLE OF THE DEPARTMENT OF HEALTH AND
HUMAN SERVICES.
‘‘(a) GENERAL RESPONSIBILITIES.—As part of the
Program described in title I, the Secretary of Health and
Human Services shall, through the Public Health Service,
the National Institutes of Health, the National Library of
Medicine, and the Centers for Disease Control and Preven-
tion, in cooperation with the National Science Foundation
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and other appropriate agencies, develop and support the de-
velopment of interoperable technologies for applications of
high-performance computing and high-speed networking in
the health care sector. In developing these technologies, em-
phasis shall be placed on applications that can produce sig-
nificant savings in national health care costs. Such tech-
nologies shall, when feasible, build on existing Federal pro-
grams for developing information technology applications
in the health care sector.
‘‘(b) AUTHORIZATION
OF APPROPRIATIONS.—From
sums otherwise authorized to be appropriated, there are au-
thorized to be appropriated to the Department of Health
and Human Services for the purposes of this section,
$9,000,000 for fiscal year 1993, $30,000,000 for fiscal year
1994, and $50,000,000 for fiscal year 1995.
‘‘SEC. 208. ACCESS TO NETWORKS.
‘‘(a) CONNECTIONS PROGRAM.—The National Science
Foundation, the Department of Education, Department of
Commerce, particularly the National Telecommunications
and Information Administration, and other appropriate
agencies shall—
‘‘(1) foster the creation of computer networks, in-
cluding but not limited to high-performance computer
networks, in geographical areas which will connect
institutions of higher education, elementary and sec-
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ondary schools, libraries and depository libraries, and
Federal, State, and local governments to each other;
and
‘‘(2) provide for connection of such networks to
other networks.
‘‘(b) TRAINING.—The National Science Foundation,
the Department of Education, the Department of Com-
merce, particularly the National Telecommunications and
Information Administration, and other appropriate agen-
cies shall provide for programs to train teachers, students,
librarians, and Federal, State, and local government per-
sonnel in the use of local and national computer networks.
Training programs for librarians shall be designed to pro-
vide skills and training materials needed by librarians to
instruct the public in the use of hardware and software for
accessing and using local and national computer networks.
‘‘(c) REPORT.—The Director shall, within 1 year after
the date of enactment of the Information Technology Appli-
cations Act of 1994, submit a report to Congress which shall
include—
‘‘(1) findings of an examination of the extent to
which the education and library communities and
State and local governments have access to local and
national networks;
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‘‘(2) a statement of the extent to which connec-
tions to local and national networks exist for the edu-
cation and library communities and State and local
governments;
‘‘(3) an assessment of the factors limiting access
by schools, libraries, and State and local governments
to local and national networks and an estimate of the
cost of providing universal access for those institu-
tions to those networks; and
‘‘(4) recommendations for collaborative programs
among Federal, State, and local governments and the
private sector to expand connectivity to local and na-
tional computer networks for educational institutions,
libraries, and Federal, State, and local governments.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—To carry
out the purposes of this section, there are authorized to be
appropriated—
‘‘(1) to the National Science Foundation,
$5,000,000 for fiscal year 1994 and $12,500,000 for
fiscal year 1995; and
‘‘(2) to the Department of Education, $5,000,000
for fiscal year 1994 and $12,500,000 for fiscal year
1995.’’.
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SEC. 608. HIGH-PERFORMANCE COMPUTING AND APPLICA-
TIONS ADVISORY COMMITTEE.
Section 101(b) of the High-Performance Computing
Act of 1991 (15 U.S.C. 5511(b)) is amended to read as fol-
lows:
‘‘(b) HIGH-PERFORMANCE COMPUTING AND APPLICA-
TIONS ADVISORY COMMITTEE.—The Director shall establish
an advisory committee on high-performance computing and
applications consisting of non-Federal members, including
representatives of the research, elementary and secondary
education, higher education, and library communities,
consumer and public interest groups, network providers,
and the computer, telecommunications, information and
publishing industries, and other groups who use networks,
who are specially qualified to provide the Director with ad-
vice and information on high-performance computing and
on applications of computing and networking. The Director
shall consider the recommendations of the advisory commit-
tee in reviewing and revising the Program. The advisory
committee shall provide the Director with an independent
assessment of—
‘‘(1) progress in implementing the Program;
‘‘(2) the need to revise the Program;
‘‘(3) the balance between the components of the
activities undertaken pursuant to this Act;
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‘‘(4) whether the research, development, and dem-
onstration projects undertaken pursuant to this Act
are helping to maintain United States leadership in
computing and networking technologies and in the
application of those technologies;
‘‘(5) whether the applications and technologies
developed under the Program are successfully address-
ing the needs of targeted populations, including as-
sessment of the number of users served by those appli-
cations; and
‘‘(6) other issues identified by the Director.’’.
SEC. 609. NATIONAL RESEARCH AND EDUCATION NETWORK
PROGRAM.
Section 102 of the High-Performance Computing Act
of 1991 (15 U.S.C. 5512) is amended to read as follows:
‘‘SEC. 102. NATIONAL RESEARCH AND EDUCATION NET-
WORK PROGRAM.
‘‘(a) ESTABLISHMENT.—As part of the Program de-
scribed in section 101, the National Science Foundation,
the Department of Defense, the Department of Energy, the
Department of Commerce, the National Aeronautics and
Space Administration, the Department of Education, and
other agencies participating in the Program shall, in con-
sultation with the Superintendent of Documents, support
the establishment of the National Research and Education
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Network Program. The Network Program shall consist of
the following components:
‘‘(1) Research and development of software and
hardware for high-performance computing and high-
speed networks.
‘‘(2) Support of experimental test bed networks
for—
‘‘(A) developing and demonstrating ad-
vanced networking technologies resulting from
the activities described in paragraph (1); and
‘‘(B) providing connections and associated
network services for purposes consistent with this
Act.
‘‘(3) Provision of support for researchers, edu-
cators, students, libraries, and other appropriate in-
stitutions in order to ensure their access and use of
networks.
‘‘(4) Federal networks for linking Federal agency
facilities and personnel to each other and to non-Fed-
eral networks.
‘‘(b) PROGRAM REQUIREMENTS.—The Network Pro-
gram shall—
‘‘(1) be closely coordinated with the computer
hardware, computer software, telecommunications,
and information industries, and network users in
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and data bases can contribute to the national infor-
mation infrastructure.
‘‘(c) NETWORK ACCESS PLAN.—The Federal agencies
participating in activities under this section shall develop
a plan with specific goals for implementing the require-
ments of subsection (a)(3), including provision for financial
assistance to educational institutions, public libraries, and
other appropriate entities. This plan shall be submitted to
the Congress not later than one year after the date of enact-
ment of the Information Technology Applications Act of
1994. Each year thereafter, the Director shall report to Con-
gress on progress in implementing subsection (a)(3).
‘‘(d) DEPARTMENT OF DEFENSE RESPONSIBILITIES.—
As part of the Program, the Department of Defense, through
the Advanced Research Projects Agency, shall support re-
search and development of advanced fiber optics technology,
switches, and protocols.
‘‘(e) INFORMATION SERVICES.—The Director shall as-
sist the President in coordinating the activities of appro-
priate agencies to promote the development of information
services that could be provided over computer networks con-
sistent with the purposes of this Act. These services may
include the provision of directories of the users and services
on computer networks, data bases of unclassified Federal
data, training of users of data bases and computer net-
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works, and technology to support computer-based collabora-
tion that facilitates research and education. In carrying out
this section, the Director shall consult with the Super-
intendent of Documents in order to facilitate compatibility
of information systems and eliminate unnecessary redun-
dancy.
‘‘(f) USE OF GRANT FUNDS.—All Federal agencies and
departments are authorized to allow recipients of Federal
research grants to use grant funds to pay for computer
networking expenses.
‘‘(g) USE OF PROGRAM FUNDS.—(1) Each agency in
the Program, when using Program funds for the procure-
ment of communications networking services for Program
activities, shall develop, provide access to, or use commu-
nications networks through the acquisition of commercially
available network services or through contracting for cus-
tomized services when such acquisition cannot satisfy agen-
cy requirements. Nothing in this section shall be construed
to modify or otherwise change the Federal Property and Ad-
ministrative Services Act of 1949.
‘‘(2) In using Program funds to provide grants or as-
sistance to non-Federal entities for the support of commu-
nications networking services, the head of each agency in
the Program shall provide funding only to non-Federal en-
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tities which agree to develop, provide access to, or use com-
munications networks—
‘‘(A) through the acquisition of commercially
available communications networking services; or
‘‘(B) if no such services are satisfactorily avail-
able, through contracting for customized services, with
the determination of satisfactory availability includ-
ing consideration of geographic access to and afford-
ability of service, and timeliness and technical per-
formance standards in providing services.
In neither subparagraph (A) or (B) may the grantee use
Federal funds for purposes other than the purposes for
which they are awarded.
‘‘(3) The provisions of this subsection shall apply only
to procurements, grants, or agreements for assistance en-
tered into by Program agencies for Program activities after
the date of enactment of the Information Technology Appli-
cations Act of 1994.’’.
SEC. 610. SUPPORT FOR COMPUTER EDUCATION PRO-
GRAMS.
(a) EDUCATION PROJECT.—The Administrator of the
National Aeronautics and Space Administration (hereafter
in this section referred to as the ‘Administrator’) shall es-
tablish a Computer Technologies for K–12 Education
Project (hereafter in this section referred to as the ‘Project’)
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to test and demonstrate educational applications of ad-
vanced computer technologies, including but not limited to
high-performance computing technologies, in public school
systems providing precollege education. The Project shall
award, on a competitive basis, grants to plan, deploy, man-
age, and operate advanced educational applications of com-
puter technologies in K–12 public school systems in the
United States in response to proposals requested by the Ad-
ministrator. The Administrator shall ensure that non-Fed-
eral funds committed to support such proposals shall
amount to not less than 30 percent of the Federal grant
from the Project.
(b) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the National Aeronautics
and Space Administration $8,000,000 for each of the fiscal
years 1994 and 1995, to carry out the provisions of para-
graph (1). No funds shall be awarded under the Project
other than through the competitive process established by
the Administrator pursuant to this section.
SEC. 611. SUPPORT FOR STATE-BASED DIGITAL LIBRARIES.
(a) PROGRAM TO SUPPORT DIGITAL LIBRARIES.—The
National Science Foundation, in consultation with the De-
partment of Education, the Department of Commerce, the
Advanced Research Projects Agency, the Library of Con-
gress, the Superintendent of Documents, and other appro-
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priate agencies, is authorized to initiate a competitive,
merit-based program to support the efforts of States and,
as appropriate, libraries to develop electronic libraries. In
carrying out this section, the National Science Foundation
shall consult with the Superintendent of Documents in
order to facilitate compatibility of Federal information sys-
tems and eliminate unnecessary redundancy. These librar-
ies shall provide delivery of and access to a variety of
databases, computer programs, and interactive multimedia
presentations, including educational materials, research in-
formation, statistics and reports developed by Federal,
State, and local governments, and other information and
informational services which can be carried over computer
networks.
(b) AUTHORIZATION OF APPROPRIATIONS.—To carry
out the provisions of this section, there are authorized to
the 
Director 
of 
the 
National 
Science 
Foundation
$10,000,000 for fiscal year 1994, and $25,000,000 for fiscal
year 1995.
(c) COPYRIGHT LAW.—Nothing in this section shall be
construed to modify or otherwise change any provision of
title 17, United States Code.
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SEC. 612. SUPPORT FOR COMPUTING ACTIVITIES AT TRIBAL
COLLEGES.
The Director of the National Science Foundation shall
design and implement a pilot program to provide financial
assistance, through competitive selection processes, to States
in which are located two or more tribally-controlled commu-
nity colleges. The objective of the pilot program shall be to
institute interactive telecommunications systems among
such tribally controlled community colleges in such States,
so as to assist the tribal community in education, job train-
ing, and other appropriate activities.
SEC. 613. DEPARTMENT OF EDUCATION SUPPORT FOR COM-
PUTER EDUCATION PROGRAMS.
(a) EDUCATION PROJECT.—In addition to the general
responsibilities set forth in section 206 of the High-Perform-
ance Computing Act of 1991 (15 U.S.C. 5526), the Depart-
ment of Education, in cooperation as appropriate with
other Federal agencies, shall establish a project to test and
demonstrate educational applications of advanced computer
technologies, including but not limited to high-performance
computing and networking technologies, in school systems
providing precollege education. This project shall award, on
a competitive basis, grants to plan, deploy, manage, and
operate advanced educational applications of computer
technologies in response to proposals requested by the Sec-
retary of Education. The Secretary of Education shall en-
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sure that non-Federal funds committed to such proposals
shall amount to not less than 30 percent of the Federal
grant.
(b) AUTHORIZATION
OF
APPROPRIATIONS.—From
sums otherwise authorized to be appropriated to the Depart-
ment of Education, there are authorized to be appropriated
to carry out the provisions of this section, $8,000,000 for
each of the fiscal years 1994 and 1995. No funds shall be
awarded under the provisions of subsection (a) other than
through the competitive process established by the Secretary
of Education pursuant to this section.
TITLE VII—FASTENER QUALITY
ACT AMENDMENTS
SEC. 701. FASTENER QUALITY ACT AMENDMENTS.
(a) TECHNICAL AMENDMENTS.—(1) Section 3 of the
Fastener Quality Act (15 U.S.C. 5402) is amended—
(A) in paragraph (8), by striking ‘‘Standard’’
and inserting in lieu thereof ‘‘Standards’’; and
(B) in paragraph (14), by striking ‘‘which de-
fines or describes’’ and all that follows through ‘‘of
any fastener’’.
(2) Section 5(b)(1) of the Fastener Quality Act (15
U.S.C. 5404(b)(1)) is amended by striking ‘‘section 6; un-
less’’ and inserting in lieu thereof ‘‘section 6, unless’’.
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(3) Section 7(c)(2) of the Fastener Quality Act (15
U.S.C. 5406(c)(2)) is amended by inserting ‘‘to the same’’
before ‘‘extent’’.
(b) 
CLARIFYING
AMENDMENTS.—(1) 
Section
5(a)(1)(B) of the Fastener Quality Act (15 U.S.C.
5404(a)(1)(B)) is amended by striking ‘‘subsections (b) and
(c)’’ and inserting in lieu thereof ‘‘subsections (b), (c), and
(d)’’.
(2) Section 5(a)(2)(A)(i) of the Fastener Quality Act
(15 U.S.C. 5404(a)(2)(A)(i)) is amended by striking ‘‘sub-
sections (b) and (c)’’ and inserting in lieu thereof ‘‘sub-
sections (b), (c), and (d)’’.
(3) Section 5(c)(4) of the Fastener Quality Act (15
U.S.C. 5404(c)(4)) is amended by inserting ‘‘except as pro-
vided in subsection (d),’’ before ‘‘state’’.
(4) Section 5 of the Fastener Quality Act (15 U.S.C.
5404) is amended by adding at the end the following new
subsection:
‘‘(d) ALTERNATIVE
PROCEDURE
FOR
CHEMICAL
CHARACTERISTICS.—Notwithstanding the requirements of
subsections (b) and (c), a manufacturer shall be deemed to
have demonstrated, for purposes of subsection (a)(1), that
the chemical characteristics of a lot conform to the stand-
ards and specifications to which the manufacturer rep-
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resents such lot has been manufactured if the following re-
quirements are met:
‘‘(1) The coil or heat number of metal from
which such lot was fabricated has been inspected and
tested with respect to its chemical characteristics by
a laboratory accredited in accordance with the proce-
dures and conditions specified by the Secretary under
section 6.
‘‘(2) Such laboratory has provided to the manu-
facturer, either directly or through the metal manu-
facturer, a written inspection and testing report,
which shall be in a form prescribed by the Secretary
by regulation, listing the chemical characteristics of
such coil or heat number.
‘‘(3) The report described in paragraph (2) indi-
cates that the chemical characteristics of such coil or
heat number conform to those required by the stand-
ards and specifications to which the manufacturer
represents such lot has been manufactured.
‘‘(4) The manufacturer demonstrates that such
lot has been fabricated from the coil or heat number
of metal to which the report described in paragraphs
(2) and (3) relates.
In prescribing the form of report required by subsection (c),
the Secretary shall provide for an alternative to the state-
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ment required by subsection (c)(4), insofar as such state-
ment pertains to chemical characteristics, for cases in which
a manufacturer elects to use the procedure permitted by this
subsection.’’.
(c) SALE OF FASTENERS SUBSEQUENT TO MANUFAC-
TURE.—Section 7 of the Fastener Quality Act (15 U.S.C.
5406) is amended—
(1) in subsection (e)(1)—
(A) by striking ‘‘or any person who pur-
chases any quantity of fasteners for resale at
wholesale’’ and inserting in lieu thereof ‘‘, im-
porter, or private label distributor’’; and
(B) by striking ‘‘or such person’’ and insert-
ing in lieu thereof ‘‘, importer, or private label
distributor’’;
(2) by adding at the end of subsection (e) the fol-
lowing new paragraph:
‘‘(3) Notwithstanding paragraph (1), fasteners may be
sold to an end user in commingled lots if—
‘‘(A) any packaging of such fastener includes a
conspicuous disclaimer message indicating that the
fasteners are manufactured and tested in compliance
with this Act but have been commingled with like
items from different lots; and
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‘‘(B) the person selling such fasteners has a writ-
ten statement from the end user purchasing such fas-
teners granting permission to the seller to provide
commingled lots.
A written statement described in subparagraph (B) shall
be kept on file for at least 10 years for any later review
or audit.’’; and
(3) by amending subsection (f) to read as follows:
‘‘(f) SUBSEQUENT PURCHASER.—It shall be unlawful
for any person to sell fasteners, of any quantity, to any
end user who requests lot traceability, unless the container
of fasteners sold is conspicuously marked with the number
of the lot from which such fasteners were taken.’’.
TITLE VIII—PRIVATE CARRIAGE
OF URGENT LETTERS
SEC. 801. PRIVATE CARRIAGE OF URGENT LETTERS.
It is the sense of the Congress that the United States
Postal Service, in the administration of chapter 6 of title
39, United States Code, shall suspend its audits by the Post-
al Inspection Service of private businesses or individuals
who use private express for the private carriage of any letter
which such business or individual determines is urgent,
until the Congress receives and considers a report by the
General Accounting Office regarding the potential financial
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impact on the Postal Service of permanently suspending en-
forcement of chapter 6, of title 39, United States Code.
TITLE IX—REGULATORY
FLEXIBILITY ANALYSIS
SEC. 901. DEFINITIONS.
Section 601 of title 5, United States Code is amend-
ed—
(1) in paragraph (5) by striking out ‘‘and’’ at
the end thereof;
(2) in paragraph (6) by striking out the period
and inserting in lieu thereof a semicolon and ‘‘and’’;
and
(3) by adding at the end thereof the following
new paragraph:
‘‘(7) the term ‘impact’ means effects of a pro-
posed or final rule which an agency can anticipate at
the time of publication, and includes those effects
which are directly and indirectly imposed by the pro-
posed or final rule and are beneficial and negative.’’.
SAC. 902. INITIAL REGULATORY FLEXIBILITY ANALYSIS.
Section 603 of title 5, United States Code, is amend-
ed—
(1) in subsection (a)—
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(A) in the first sentence by inserting ‘‘as de-
fined under section 601(2)’’ after ‘‘any proposed
rule’’; and
(B) in the second sentence by striking out
‘‘the impact’’ and inserting thereof ‘‘both the di-
rect and indirect impacts’’;
(2) in subsection (b)(3) by striking out ‘‘apply’’
and inserting in lieu thereof ‘‘directly apply and an
estimate of the number of small entities to which the
rule will indirectly apply’’; and
(3) in subsection (c) in the first sentence by in-
serting before the period ‘‘either directly or indirectly
effected’’.
SEC. 903. FINAL REGULATORY FLEXIBILITY ANALYSIS.
Section 604(a) of title 5, United States Code, is
amended in the first sentence by striking out ‘‘under section
553 of this title, after being required by that section or any
other law to publish a general notice of proposed rule-
making’’ and inserting in lieu thereof ‘‘as defined under
section 610(2)’’.
SEC. 904. JUDICIAL REVIEW.
Section 611(b) of title 5, United States Code, is re-
pealed.
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TITLE X—COUNTER-
INTELLIGENCE
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘Counterintelligence Im-
provements Act of 1994’’.
SEC. 1002. AMENDMENT TO THE NATIONAL SECURITY ACT
OF 1947.
The National Security Act of 1947 (50 U.S.C. 401 et
seq.) is amended by inserting at the end thereof the follow-
ing new title:
‘‘TITLE VIII—ACCESS TO TOP SECRET
INFORMATION
‘‘ELIGIBILITY FOR ACCESS TO TOP SECRET INFORMATION
‘‘SEC. 801. (a) The President and Vice President,
Members of the Congress, Justices of the Supreme Court and
judges of other courts of the United States established pursu-
ant to Article III of the Constitution, shall, by virtue of
their elected or appointed positions, be entitled to access to
Top Secret information needed for the performance of their
governmental functions without regard to the other provi-
sions of this title.
‘‘(b) Among employees of the United States Govern-
ment, access to Top Secret information shall be limited to
employees;
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‘‘(1) who have been granted access to such infor-
mation pursuant to this title;
‘‘(2) who are citizens of the United States who
require routine access to such information for the per-
formance of official governmental functions; and
‘‘(3) who have been determined to be trustworthy
based upon a background investigation and appro-
priate reinvestigations and have otherwise satisfied
the requirements of section 802, below.
‘‘(c) Access to Top Secret information by persons other
than those identified in subsections (a) and (b) shall be per-
mitted only in accordance with the regulations issued by
the President pursuant to section 802 below.
IMPLEMENTING REGULATIONS
‘‘Sec. 802. The President shall, within 180 days of en-
actment of this title, issue regulations to implement this
title which shall be binding upon all departments, agencies,
and offices of the Executive branch. These regulations shall,
at a minimum provide that—
(A) no employee of the United States Govern-
ment shall be given access to Top Secret information
owned, originated or possessed by United States, after
the effective date of this title, by any department,
agency, or entity of the United States Government
unless such person has been subject to an appropriate
background investigation and has—
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‘‘(1) provided consent to the investigative
agency responsible for conducting the security
investigation of such person, during the initial
background investigation and for such times as
access to such information is maintained, and
for 5 years thereafter, permitting access to—
(a) financial records concerning the
subject pursuant to section 1104 of the
Right to Financial Privacy Act of 1978;
‘‘(b) consumer reports concerning the
subject pursuant to section 1681b of the
Consumer Credit Protection Act; and
‘‘(c) records maintained by commercial
entities within the United States pertaining
to any travel by the subject outside the
United States: Provided, That—
‘‘(i) no information may be re-
quested by an authorized investigative
agency pursuant to this section for any
purpose other than making a security
determination;
‘‘(ii) where the person concerned
no longer has access to Top Secret in-
formation, no information may be re-
quested by an authorized investigative
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agency pursuant to this section unless
such agency has reasonable grounds to
believe, 
based 
upon 
specific 
and
articulable facts available to it, that
such person may pose a threat to the
continued security of the information
to which he or she had previously had
access; and
‘‘(iii) any information obtained
by an authorized investigative agency
pursuant to this section shall not be
disseminated to any other department,
agency, or entity for any purpose other
than for making a security determina-
tion, or for foreign counterintelligence
or law enforcement purposes;
‘‘(2) agreed, during the period of his or her
access, to report to the department, agency, or
entity granting such access in accordance with
applicable regulations, any travel to foreign
countries which has not been authorized as part
of the subject’s official duties;
‘‘(3) agreed to report to the Federal Bureau
of Investigation, or to appropriate investigative
authorities of the department, agency, or entity
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concerned, any unauthorized contacts with per-
sons known to be foreign nationals or persons
representing foreign nationals, where an effort to
acquire classified information is made by the
foreign national, or where such contacts appear
intended for this purpose. For purposes of this
subsection, the term ‘unauthorized contacts’ does
not include contacts made within the context of
an authorized diplomatic relationship. Failure
by the employee to comply with any of the re-
quirements of this subsection shall constitute
grounds for denial or termination of access to the
Top Secret information concerned.
‘‘(B) all employees granted access to Top Secret
information pursuant to this subsection shall also be
subject to—
‘‘(1) additional background investigations
by appropriate governmental authorities during
the period of access at no less frequent interval
than every 5 years, except that any failure to
satisfy this requirement that is not solely attrib-
utable to the subject of the investigation shall not
result in a loss or denial of access; and
‘‘(2) investigation by appropriate govern-
mental authority at any time during the period
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of access to ascertain whether such persons con-
tinue to meet the requirements for access.
‘‘(C) access to Top Secret information by cat-
egories of persons who do not meet the requirements
of subsections (A) and (B) of this section may be per-
mitted only where the President, or officials des-
ignated by the President for this purpose, determine
that such access is essential to protect or further the
national security interests of the United States.
‘‘(D) a single office within the Executive branch
shall be designated to monitor the implementation
and operation of this title within the Executive
branch. This office shall submit an annual report to
the President and appropriate committees of the Con-
gress, describing the operation of this title and rec-
ommending needed improvements. A copy of the regu-
lations implementing this title shall be provided to
the Select Committee on Intelligence of the Senate and
the Permanent Select Committee on Intelligence of the
House of Representatives thirty days prior to their ef-
fective date.
‘‘WAIVERS FOR INDIVIDUAL CASES
‘‘SEC. 803. In extraordinary circumstances, when es-
sential to protect or further the national security interests
of the United States, the President (or officials designated
by the President for this purpose) may waive the provisions
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of this title, or the provisions of the regulations issued pur-
suant to section 802, above, in individual cases involving
persons who are citizens of the United States or are persons
admitted into the United States for permanent residence:
Provided, That all such waivers shall be made a matter of
record and reported to the office designated pursuant to sec-
tion 802(D), above, and shall be available for review by the
Select Committee on Intelligence of the Senate and the Per-
manent Select Committee of the House of Representatives.
‘‘DEFINITIONS
‘‘SEC. 804. For purposes of this title—
‘‘(a) the term ‘national security’ refers to the na-
tional defense and foreign relations of the United
States;
‘‘(b) the phrases ‘information classified in the in-
terest of national security’ or ‘classified information’
means any information originated by or on behalf of
the United States Government, the unauthorized dis-
closure of which would cause damage to the national
security, which has been marked and is controlled
pursuant to the Executive Order 12356 of April 2,
1982, or successor orders, or the Atomic Energy Act
of 1954;
‘‘(c) the term ‘Top Secret information’ means in-
formation classified in the interests of national secu-
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rity, the unauthorized disclosure of which would cause
exceptionally grave damage to the national security;
‘‘(d) the term ‘employee’ includes any person
who receives a salary or compensation of any kind
from the United States Government, is a contractor
of the United States Government, is an unpaid con-
sultant of the United States Government, or otherwise
acts for or on behalf of the United States Government,
but does not include the President or Vice President
of the United States, Members of the Congress of the
United States, Justices of the Supreme Court or
judges of other federal courts established pursuant to
Article III of the Constitution; and
‘‘(e) the term ‘‘authorized investigative agency’’
means an agency authorized by law or regulation to
conduct investigations of persons who are proposed
for access to Top Secret information to ascertain
whether such persons satisfy the criteria for obtaining
and retaining access to such information.
‘‘EFFECTIVE DATE
‘‘SEC. 805. This title shall take effect 180 days after
the date of its enactment.’’.
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SEC. 1003. PROTECTION OF CRYPTOGRAPHIC INFORMA-
TION.
The National Security Act of 1947 (50 U.S.C. 401 et
seq.), as amended by section 1002, is further amended by
inserting at the end the following new title:
‘‘TITLE IX—PROTECTION OF CRYPTOGRAPHIC
INFORMATION
‘‘SEC. 901. (a) REQUIREMENTS FOR ACCESS TO CRYP-
TOGRAPHIC INFORMATION.—(1) Any employee of a depart-
ment or agency within the Executive branch who is granted
access to classified cryptographic information or routine,
recurring access to any space in which classified cryp-
tographic key is produced or processed, or is assigned re-
sponsibilities as a custodian of classified cryptographic key,
shall, as a condition of receiving such access, or being as-
signed such responsibilities, and at a minimum:
‘‘(A) meet the requirements applicable to persons
having access to Top Secret information, as defined
in subsection 804(c) of this Act, (as added by section
1002 of the Counterintelligence Improvements Act of
1994); and
‘‘(B) be subject to periodic polygraph examina-
tions conducted by appropriate governmental authori-
ties, limited in scope to questions of a counterintel-
ligence nature, during the period of access.
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‘‘(2) Failure to submit to an examination required
under paragraph (1) shall be grounds for removal from ac-
cess to cryptographic information or spaces.
‘‘(3) No person shall be removed from access to cryp-
tographic information or spaces based solely upon the inter-
pretation of the results produced by a polygraph instru-
ment, measuring physiological resources, unless, after fur-
ther investigation, the head of the department or agency
concerned determines the risk to the national security in
permitting such access to be so potentially grave that access
must nonetheless be denied.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘classified cryptographic informa-
tion’ means any information classified by the United
States Government pursuant to law or Executive
order concerning the details of (A) the nature, prepa-
ration, or use of any code, cipher, or cryptographic
system of the United States; or (B) the design, con-
struction, use, maintenance, or repair of any cryp-
tographic equipment; Provided, however, That the
term does not include information concerning the use
of cryptographic systems or equipment required for
personal or office use;
‘‘(2) the phrase ‘custodian of classified cryp-
tographic key’ means positions that require access to
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classified cryptographic key beyond that required to
use or operate cryptographic equipment for personal
or office use, future editions of classified cryp-
tographic key, or classified cryptographic key used for
multiple devices;
‘‘(3) the term ‘classified cryptographic key’
means any information (usually a sequence of ran-
dom binary digits), in any form, classified by the
United States Government pursuant to law or Execu-
tive order that is used to set up and periodically
change the operations performed by any cryp-
tographic equipment;
‘‘(4) the term ‘cryptographic equipment’ means
any device, apparatus or appliance used, or prepared,
or planned for use by the United States for the pur-
pose of authenticating communications or disguising
or concealing the contents, significance, or meanings
of communications;
‘‘(5) the term ‘employee’ includes any person
who receives a salary or compensation of any kind
from a department or agency of the Executive branch,
or is a contractor or unpaid consultant of such de-
partment or agency;
‘‘(6) the term ‘head of a department or agency’
refers to the highest official who exercises supervisory
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control over the employee concerned, and does not in-
clude any intermediate supervisory officials who may
otherwise qualify as heads of agencies within depart-
ments; and
‘‘(7) the phrase ‘questions of a counterintelligence
nature’ means questions specified to the subject in ad-
vance of a polygraph examination solely to ascertain
whether the subject is engaged in, or planning, espio-
nage against the United States on behalf of a foreign
government or knows persons who are so engaged.
‘‘SEC. 
902. 
IMPLEMENTING
REGULATIONS.—The
President shall, within 180 days of the date of enactment
of this title, promulgate regulations to implement the provi-
sions of this title. The President shall provide copies of such
regulations to the Select Committee on Intelligence of the
Senate and the Permanent Select Committee on Intelligence
of the House of Representatives.’’.
SEC. 1004. AMENDMENT TO RIGHT TO FINANCIAL PRIVACY
ACT.
Section 1104 of the Right to Financial Privacy Act
of 1978 (12 U.S.C. 3404) is amended by adding at the end
thereof the following new subsection:
‘‘(d)(1) Notwithstanding the provisions of subsection
(a), a customer who is the subject of a personnel security
investigation conducted by an authorized investigative
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agency of the U.S. Government as a condition of being
granted or maintaining access to Top Secret information,
as defined by section 804(c) of the National Security Act
of 1947 (as added by section 1002 of the Counterintelligence
Improvements Act of 1994), may authorize nonrevokable
disclosure of all financial records maintained by financial
institutions for the period of the customer’s access to such
information and for up to 5 years after access to such infor-
mation has been terminated, by the investigative agency re-
sponsible for the conduct of such investigation, for an au-
thorized security purpose.
‘‘(2) Such authority shall be contained in a signed and
dated statement of the customer which identifies the finan-
cial records which are authorized to be disclosed. Such state-
ment may also authorize the disclosure of financial records
of accounts opened during the period covered by the consent
agreement which are not identifiable at the time such con-
sent is provided. A copy of such statement shall be provided
by the investigative agency concerned to the financial insti-
tution from which disclosure is sought, together with the
certification required pursuant to section 1103(b) (12
U.S.C. 3403(b)).
‘‘(3) The rights of the customer established by sub-
section (c), above, shall pertain to any disclosures made
pursuant to this subsection.
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‘‘(4) On an annual basis, the office designated by
President pursuant to section 802(D) of the National Secu-
rity Act of 1947 (as added by section 1002 of the Counter-
intelligence Improvements Act of 1994), shall fully inform
the Permanent Select Committee on Intelligence of the
House of Representatives and the Select Committee on Intel-
ligence of the Senate concerning the number of requests for
financial records made pursuant to this section.’’.
SEC. 1005. NEW CRIMINAL OFFENSE FOR THE POSSESSION
OF ESPIONAGE DEVICES.
(a) IN GENERAL.—Chapter 37 of title 18, United
States Code, is amended by inserting at the end thereof the
following new section:
‘‘POSSESSION OF ESPIONAGE DEVICES
‘‘SEC. 799a. Whoever knowingly maintains possession
of any electronic, mechanical, or other device or equipment
the design and capability of which renders it primarily use-
ful for the purpose of surreptitiously collecting or commu-
nicating information, with the intent of utilizing such de-
vice or equipment to undertake actions which would violate
section 793, 794, 794a (as added by section 1006 of the
Counterintelligence Improvements Act of 1994), or 798 of
this title, or section 783(b) of title 50, United States Code,
shall be fined not more than $10,000 or imprisoned not
more than 5 years, or both.’’.
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(b) AMENDMENTS TO TABLE OF SECTIONS.—The table
of sections for chapter 37 of title 18, United States Code,
is amended by adding at the end thereof the following new
item:
‘‘799a. Possession of espionage devices.’’.
SEC. 1006. NEW OFFENSE FOR SALE OR TRANSFER TO FOR-
EIGN 
GOVERNMENTS 
DOCUMENTS 
AND
OTHER MATERIALS DESIGNATED AS TOP SE-
CRET.
(a) IN
GENERAL.—Chapter 37 of title 18, United
States Code, is amended by inserting after section 794 the
following new section:
‘‘SALE OR TRANSFER OF DOCUMENTS OR MATERIALS
MARKED AS ‘TOP SECRET’
‘‘SEC. 794a. (a)(1) No person shall knowingly sell or
otherwise transfer for any valuable consideration to any
person whom he knows or has reason to believe to be an
agent or representative of a foreign government—
‘‘(A) any document, writing, code book, sketch,
photograph, map, model, instrument, equipment, elec-
tronic storage media, or other material, or portion
thereof, knowing that it is marked or otherwise des-
ignated in any manner, pursuant to applicable law
and Executive order, as ‘Top Secret’, or
‘‘(B) any such document, writing, code book,
sketch, photograph, map, model, instrument, equip-
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ment, electronic storage media, or other material, or
portion thereof, which has had such marking or des-
ignation removed without authority and the person
making the sale or transfer is aware of such removal.
‘‘(2) Paragraph (1) shall not be deemed to be violated
by a person who makes such transfer pursuant to applicable
law or executive branch authority.
‘‘(b) In any prosecution under this section, whether or
not the information or material in question has been prop-
erly marked or designated as ‘‘TOP SECRET’’ pursuant
to applicable law or Executive order shall not be an element
of the offense: Provided, however, That it shall be a defense
to any prosecution under this section that the information
or document in question has been officially released to the
public by an authorized representative of the United States
prior to the sale or transfer in question.
‘‘(c) Violation of this section shall be punishable by
imprisonment for a maximum of 15 years.’’.
(b) AMENDMENTS TO TABLE OF SECTIONS.—The table
of sections for chapter 37 of title 18, United States Code,
is amended by inserting after the item relating to section
794 the following new item:
‘‘794a. Sale or transfer of documents or materials marked as ‘Top Secret’.’’
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SEC. 1007. LESSER CRIMINAL OFFENSE FOR THE REMOVAL
OF TOP SECRET DOCUMENTS BY GOVERN-
MENT EMPLOYEES AND CONTRACTORS.
(a) IN GENERAL.—Chapter 93 of title 18, United
States Code, is amended by inserting at the end thereof the
following new section:
‘‘REMOVAL AND RETENTION OF ‘TOP SECRET’ DOCUMENTS
OR MATERIAL
‘‘SEC. 1924. Whoever, being an officer, employee, con-
tractor or consultant, of the United States, and having, by
virtue of his office, employment, position, or contract, be-
comes possessed of documents or materials classified at the
level of ‘Top Secret’ pursuant to applicable law or Executive
order, knowingly removes such documents or materials
without authority and retains such documents or materials
at an unauthorized location shall be fined not more than
$1,000, or imprisoned for not more than one year, or both.’’.
(b) AMENDMENT TO TABLE OF SECTIONS.—The table
of sections for chapter 93 of title 18, United States Code,
is amended by adding at the end thereof the following new
item:
‘‘1924. Removal of ‘Top Secret’ documents or material.’’
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SEC. 1008. JURISDICTION OF UNITED STATES COURTS TO
TRY CASES INVOLVING ESPIONAGE OUTSIDE
THE UNITED STATES.
(a) Chapter 211 of title 18 of the United States Code
is amended by adding a new section 3239 as follows:
‘‘§ 3239. Jurisdiction for espionage and related of-
fenses
‘‘The trial for any offense involving a violation of—
‘‘(a) section 793, 794, 794a (as added by section
1006 of the Counterintelligence Improvements Act of
1994), 798, 798a (as added by section 1005 of the
Counterintelligence Improvements Act of 1994), or
subsection 1030(a)(1) of this title;
‘‘(b) section 601 of the National Security Act of
1947 as added by the Intelligence Identities Protec-
tion Act of 1982 (50 U.S.C. 421); or
‘‘(c) subsections 4(b) or 4(c) of the Subversive Ac-
tivities Control Act of 1950 (U.S.C. 783(b) or 783(c));
begun or committed upon the high seas or elsewhere out of
the jurisdiction of any particular state or district, may be
prosecuted in the District of Columbia, or in the Eastern
District of Virginia, or in any other district authorized by
law.’’.
(b) The chapter analysis for chapter 211 of title 18
of the United States Code is amended by striking out
‘‘[3239. Repealed.]’’
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and inserting in lieu thereof:
‘‘3239. Jurisdiction for espionage and related offenses.’’
SEC. 1009. EXPANSION OF EXISTING STATUTE REGARDING
FORFEITURE OF COLLATERAL PROFITS OF
CRIME 
TO 
ADDITIONAL 
ESPIONAGE 
OF-
FENSES.
Section 3681 of title 18, United States Code, is amend-
ed—
(1) in subsection (a), by striking out ‘‘section
794 of this title’’ and inserting in lieu thereof ‘‘sec-
tions 793, 794, 794a (as added by section 1006 of the
Counterintelligence Improvements Act of 1994), 798,
and 799a (as added by section 1005 of the Counter-
intelligence Improvements Act of 1994) of this title
and section 783 of title 50, United States Code’’; and
(2) by adding at the end thereof the following
new subsection:
‘‘(e) For purposes of this section, convictions pursuant
to military courts-martial for offenses comparable to viola-
tions of sections 793, 794, 794a (as added by section 1006
of the Counterintelligence Improvements Act of 1994), 798,
and 799a (as added by section 1005 of the Counterintel-
ligence Improvements Act of 1994) of this title, or a viola-
tion of section 783 of title 50, or convictions by foreign
courts for offenses which, if perpetrated within the United
States, would constitute offenses under sections 793, 794,
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794a (as added by section 1006 of the Counterintelligence
Improvements Act of 1994), 798, and 799a (as added by
section 1005 of the Counterintelligence Improvements Act
of 1994) of this title, or a violation of section 783 of title
50 shall be considered as convictions for which actions may
be ordered pursuant to this section.’’.
SEC. 1010. DENIAL OF ANNUITIES OR RETIRED PAY TO PER-
SONS CONVICTED OF ESPIONAGE IN FOREIGN
COURTS INVOLVING UNITED STATES INFOR-
MATION.
Section 8312 of title 5, United States Code, is amended
by adding at the end thereof the following new subsection:
‘‘(d) For purposes of subsections (b)(1) and (c)(1), an
offense within the meaning of such subsections is established
if the Attorney General certifies to the agency employing
or formerly employing the person concerned—
‘‘(i) that an individual subject to this chapter
has been convicted by an impartial court of appro-
priate jurisdiction within a foreign country in cir-
cumstances in which the conduct violates the provi-
sions of law enumerated in subsections (b)(1) and
(c)(1), or would violate such provisions, had such con-
duct taken place within the United States, and that
such conviction is not being appealed or that final ac-
tion has been taken on such appeal;
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‘‘(2) that such conviction was obtained in ac-
cordance with procedures that provided the defendant
due process rights comparable to such rights provided
by the United States Constitution, and such convic-
tion was based upon evidence which would have been
admissible in the courts of the United States; and
‘‘(3) that such conviction occurred after the date
of enactment of this subsection:
Provided, That any certification made pursuant to this
paragraph shall be subject to review by the United States
Court of Claims based upon the application of the individ-
ual concerned, or his or her attorney, alleging that any of
the conditions set forth in subsections (1), (2), (3), herein,
as certified by the Attorney General, have not been satisfied
in his or her particular circumstances. Should the court de-
termine that any of these conditions has not been satisfied
in such case, the court shall order any annuity or retire-
ment benefit to which the person concerned is entitled to
be restored and shall order that any payments which may
have been previously denied or withheld to be paid by the
department or agency concerned.
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SEC. 1011. AUTHORIZING THE FBI TO OBTAIN CONSUMER
REPORTS ON PERSONS BELIEVED TO BE
AGENTS OF FOREIGN POWERS.
Section 608 of the Consumer Credit Protection Act (15
U.S.C. 1681f) is amended—
(1) by inserting ‘‘(a)’’ before ‘‘Notwithstanding’’;
and
(2) by inserting at the end thereof the following
new subsections:
‘‘(b) Notwithstanding the provisions of section 604, a
consumer reporting agency shall, upon request, furnish a
consumer report to the Federal Bureau of Investigation, if
the Director of the Federal Bureau of Investigation, or the
Director’s designee, certifies in writing to the consumer re-
porting agency that such records are sought in connection
with an authorized foreign counterintelligence investigation
and that there are specific and articulable facts giving rea-
son to believe that the person to whom the requested
consumer report relates is an agent of a foreign power, as
defined in section 101 of the Foreign Intelligence Surveil-
lance Act of 1978 (50 U.S.C. 1801).
‘‘(c) Notwithstanding the provisions of section 604, a
consumer reporting agency shall furnish identifying infor-
mation respecting any consumer, limited to name, address,
former addresses, places of employment, or former places
of employment, to a representative of the Federal Bureau
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of Investigation when presented with a written request
signed by the Director of the Federal Bureau of Investiga-
tion, or the Director’s designee, stating that the information
is necessary to the conduct of an authorized foreign counter-
intelligence investigation.
‘‘(d) No consumer reporting agency, or officer, em-
ployee, or agent of such institution shall disclose to any per-
son that the Federal Bureau of Investigation has sought or
obtained a consumer report or identifying information re-
specting any consumer under this section.
‘‘(e) On an annual basis the Director of the Federal
Bureau of Investigation shall fully inform the Permanent
Select Committee on Intelligence of the House of Represent-
atives and the Select Committee on Intelligence of the Sen-
ate concerning all requests made under subsections (b) and
(c).’’.
SEC. 1012. TO PROVIDE FOR REWARDS FOR INFORMATION
CONCERNING ESPIONAGE.
(a) IN GENERAL.—Chapter 204 of title 18, United
States Code, is amended—
(1) by inserting at the end of the chapter head-
ing ‘‘AND ESPIONAGE’’;
(2) in section 3071, by inserting ‘‘(a)’’ imme-
diately before ‘‘With respect to’’;
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(3) in section 3071, adding at the end thereof the
following new subsection:
‘‘(b) With respect to acts of espionage involving or di-
rected at United States information classified in the inter-
est of national security, the Attorney General may reward
any individual who furnishes information—
‘‘(1) leading to the arrest or conviction, in any
country, of any individual or individuals for commis-
sion of an act of espionage against the United States;
‘‘(2) leading to the arrest or conviction, in any
country, of any individual or individuals for conspir-
ing or attempting to commit an act of espionage
against the United States; or
‘‘(3) leading to the prevention or frustration of
an act of espionage against the United States.’’.
(b) AMOUNT OF REWARDS.—Section 3072 of title 18,
United States Code, is amended by striking out ‘‘$500,000’’
and inserting in lieu thereof ‘‘$1,000,000’’.
(c) DEFINITIONS.—Section 3077 of title 18, United
States Code, is amended by inserting at the end thereof the
following new paragraphs:
‘‘(8) ‘act of espionage’ means an activity that is
a violation of sections 794, 794a (as added by section
1006 of the Counterintelligence Improvements Act of
1994), 798, or 799a (as added by section 1005 of the
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Counterintelligence Improvements Act of 1994) of this
title or section 783 of title 50, United States Code.
‘‘(9) ‘United States information classified in the
interests of national security’ means information
originated, owned, or possessed by the United States
Government concerning the national defense and for-
eign relations of the United States that has been de-
termined pursuant to law or Executive order to re-
quire protection against unauthorized disclosure and
that has been so designated.’’.
SEC. 1013. TO PROVIDE A COURT ORDER PROCESS FOR
PHYSICAL SEARCHES UNDERTAKEN FOR FOR-
EIGN INTELLIGENCE PURPOSES.
The Foreign Intelligence Surveillance Act of 1978 is
amended by inserting at the end thereof the following new
title:
‘‘TITLE IV—PHYSICAL SEARCHES WITHIN THE
UNITED 
STATES 
FOR 
FOREIGN 
INTEL-
LIGENCE PURPOSES
‘‘AUTHORIZATION OF PHYSICAL SEARCHES FOR FOREIGN
INTELLIGENCE PURPOSES
‘‘SEC. 401. (a) Applications for a court order under
this title are authorized if the President has, in writing,
empowered the Attorney General to approve applications
to the Foreign Intelligence Surveillance Court, and a judge
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of that court to whom application is made may, notwith-
standing any other law, grant an order, in conformity with
section 403, approving a physical search in the United
States, for the purpose of collecting foreign intelligence in-
formation of—
‘‘(1) the property, information or material of a
foreign power as defined in section 101(a)(1), (2),
and (3) of this Act, or
‘‘(2) the premises, property, information or ma-
terial of an agent of a foreign power or a foreign
power as defined in section 101(a)(4), (5), and (6) of
this Act.
‘‘(b) The Foreign Intelligence Surveillance Court shall
have jurisdiction to hear applications for and grant orders
approving a physical search for the purpose of obtaining
foreign intelligence information anywhere within the Unit-
ed States under the procedures set forth in this title, except
that no judge shall hear the same application which has
been denied previously by another judge. If any judge denies
an application for an order authorizing a physical search
under this title, such judge shall provide immediately for
the record a written statement of each reason for his deci-
sion and, on motion of the United States, the record shall
be transmitted, under seal, to the Court of Review.
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‘‘(c) The Court of Review shall have jurisdiction to re-
view the denial of any application made under this title.
If such court determines that the application was properly
denied, the Court shall immediately provide for the record
a written statement of each reason for its decision and, on
petition of the United States for a writ of certiorari, the
record shall be transmitted under seal to the Supreme
Court, which shall have jurisdiction to review such decision.
‘‘(d) Judicial proceedings under this title shall be con-
cluded as expeditiously as possible. The record of proceed-
ings under this title, including applications made and or-
ders granted, shall be maintained under security measures
established by the Chief Justice of the United States in con-
sultation with the Attorney General and the Director of
Central Intelligence.
‘‘APPLICATION FOR AN ORDER
‘‘SEC. 402. (a) Each application for an order approv-
ing a physical search under this title shall be made by a
Federal officer in writing upon oath or affirmation to a
judge of the Foreign Intelligence Surveillance Court. Each
application shall require the approval of the Attorney Gen-
eral based upon the Attorney General’s finding that it satis-
fied the criteria and requirements for such application as
set forth in this title. It shall include—
‘‘(1) the identity, if known, or a description of
the target of the search;
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‘‘(2) the authority conferred on the Attorney
General by the President of the United States and the
approval of the Attorney General to make the applica-
tion;
‘‘(3) the identity of the Federal officer making
the application and a detailed description of the
premises or property to be searched and of the infor-
mation, material, or property to be seized, repro-
duced, or altered;
‘‘(4) a statement of the facts and circumstances
relied upon by the applicant to justify the applicant’s
belief that—
‘‘(A) the target of the physical search is a
foreign power or an agent of a foreign power;
‘‘(B) the premises or property to be searched
contains foreign intelligence information;
‘‘(C) the premises or property to be searched
is owned, used, possessed by, or is in transit to
or from a foreign power or an agent of a foreign
power;
‘‘(5) a statement of the proposed minimization
procedures;
‘‘(6) a statement of the manner in which the
physical search is to be conducted;
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‘‘(7) a statement of the facts concerning all pre-
vious applications that have been made to any judge
under this title involving any of the persons, prem-
ises, or property specified in the application, and the
action taken on each previous applications;
‘‘(8) a statement of the facts concerning any
search described in section 406(b), below, which in-
volves any of the persons, premises, or property speci-
fied in the application; and
‘‘(9) a statement that the purpose of the physical
search is to obtain foreign intelligence information.
‘‘(b) The judge may require the applicant to furnish
such other information as may be necessary to make the
determinations required by section 403.
‘‘ISSUANCE OF AN ORDER
‘‘SEC. 403. (a) Upon an application made pursuant
to section 402, the judge shall enter an ex parte order as
requested or as modified approving the physical search if
the judge finds that—
‘‘(1) the President has authorized the Attorney
General to approve applications for physical searches
for foreign intelligence purposes;
‘‘(2) the application has been made by a Federal
officer and approved by the Attorney General;
‘‘(3) on the basis of the facts submitted by the
applicant there is probable cause to believe that—
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‘‘(A) the target of the physical search is a
foreign power or an agent of a foreign power:
Provided, That no United States person may be
considered an agent of a foreign power solely
upon the basis of activities protected by the first
amendment to the Constitution of the United
States;
‘‘(B) the premises or property to be searched
are owned, used, possessed by, or is in transit to
or from an agent of a foreign power or a foreign
power; and
‘‘(C) physical search of such premises or
property can reasonably be expected to yield for-
eign intelligence information which cannot rea-
sonably be obtained by normal investigative
means; and
‘‘(4) the proposed minimization procedures meet
the definition of minimization contained in this title;
and
‘‘(5) the application which has been filed con-
tains all statements required by section 402.
‘‘(b) An order approving a physical search under this
section shall—
‘‘(1) specify—
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‘‘(A) the Federal officer or officers author-
ized to conduct the physical search and the iden-
tity, if known, or a description of the target of
the physical search;
‘‘(B) the premises or property to be searched
and the information, material, or property to be
seized, altered, or reproduced;
‘‘(C) the type of foreign intelligence infor-
mation sought to be acquired; and
‘‘(D) a statement of the manner in which
the physical search is to be conducted and, when-
ever more than one physical search is authorized
under the order, the authorized scope of each
search and what minimization procedures shall
apply to the information acquired by each
search;
‘‘(2) direct—
‘‘(A) that the minimization procedures be
followed;
‘‘(B) that, upon the request of the applicant,
a specified landlord, custodian, or other specified
person furnish the applicant forthwith all infor-
mation, facilities, or assistance necessary to ac-
complish the physical search in such a manner
as will protect its secrecy and produce a mini-
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mum of interference with the activities of the
landlord, custodian, or other person; and that
such landlord, custodian or other person main-
tain under security procedures approved by the
Attorney General and the Director of Central In-
telligence any records concerning the search or
the aid furnished that such person wishes to re-
tain;
‘‘(C) that the physical search be undertaken
within 30 days of the date of the order, or, if the
physical search is of the property, information or
material of a foreign power as defined in section
101(a)(1), (2), or (3) of this Act, that such search
be undertaken within one year of the order; and
‘‘(D) that the federal officer conducting the
physical search promptly report to the court the
circumstances and results of the physical search.
‘‘(c) At any time after a physical search has been car-
ried out, the judge to whom the return has been made may
assess compliance with the minimization procedures by re-
viewing the circumstances under which information con-
cerning United States persons was acquired, retained, or
disseminated.
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‘‘(d) Application made and orders granted under this
title shall be retained for a period of at least ten years from
the date of the application.
‘‘(e) Not more than 60 days after a physical search
of the residence of a United States person authorized by
this title, or such a search in the circumstances described
in section 406(b), has been conducted, the Attorney General
shall provide the United States person with an inventory
which shall include—
‘‘(1) existence or not of a court order authorizing
the physical search and the date of the order;
‘‘(2) the date of the physical search and an iden-
tification of the premises or property searched; and
‘‘(3) a list of any information, material, or
property seized, altered, or reproduced.
‘‘(f) On an ex parte showing of good cause by the Attor-
ney General to a judge of the Foreign Intelligence Surveil-
lance Court the provision of the inventory required by sub-
section (e) may be postponed for a period not to exceed 90
days. At the end of such period the provision of the inven-
tory may, upon a similar showing, be postponed indefi-
nitely. The denial of a request for such postponements may
be reviewed as provided in section 401.
‘‘USE OF INFORMATION
‘‘SEC. 404. (a) Information acquired from a physical
search conducted pursuant to this title concerning any
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United States person may be used and disclosed by Federal
officers and employees without the consent of the United
States person only in accordance with the minimization
procedures required by this title. No information acquired
from a physical search pursuant to this title may be used
or disclosed by Federal officers or employees except for law-
ful purposes.
‘‘(b) No information acquired pursuant to this title
shall be disclosed for law enforcement purposes unless such
disclosure is accompanied by a statement that such infor-
mation, or any information derived therefrom, may only
be used in a criminal proceeding with the advance author-
ization of the Attorney General.
‘‘(c) Whenever the United States intends to enter into
evidence or otherwise use or disclose in any trial, hearing,
or other proceeding in or before any court, department, offi-
cer, agency, regulatory body, or other authority of the Unit-
ed States, against an aggrieved person, any information ob-
tained or derived from a physical search of the premises
or property of that aggrieved person pursuant to the author-
ity of this title, the United States shall, prior to the trial,
hearing, or the other proceeding or at a reasonable time
prior to an effort to so disclose or so use that information
or submit it in evidence, notify the aggrieved person and
the court or other authority in which the information is
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to be disclosed or used that the United States intends to
so disclose or so use such information.
‘‘(d) Whenever any State or political subdivision there-
of intends to enter into evidence or otherwise use of disclose
in any trial, hearing, or other proceeding in or before any
court, department, officer, agency, regulatory body, or other
authority of a State or a political subdivision thereof
against an aggrieved person any information obtained or
derived from a physical search of the premises or property
of that aggrieved person pursuant to the authority of this
title, the State or political subdivision thereof shall notify
the aggrieved person, the court or other authority in which
the information is to be disclosed or used, and the Attorney
General that the State or political subdivision thereof in-
tends to so disclose or so use such information.
‘‘(e) Any person against whom evidence obtained or
derived from a physical search to which he is an aggrieved
person is to be, or has been, introduced or otherwise used
or disclosed in any trial, hearing, or other proceeding in
or before any court, department, officer, agency, regulatory
body, or other authority of the United States, a State, or
a political subdivision thereof, may move to suppress the
evidence obtained or derived from such search on the
grounds that—
‘‘(1) the information was unlawfully acquired; or
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‘‘(2) the physical search was not made in con-
formity with an order of authorization or approval.
Such a motion shall be made before the trial, hearing, or
other proceeding unless there was no opportunity to make
such a motion or the person was not aware of the grounds
of the motion.
‘‘(f) Whenever a court of other authority is notified
pursuant to subsection (c) or (d), or whenever a motion is
made pursuant to subsection (e), or whenever any motion
or request is made by an aggrieved person pursuant to any
other statute or rule of the United States or any State before
any court or other authority of the United States or any
State to discover or obtain applications or orders or other
materials relating to a physical search authorized by this
title or to discover, obtain, or suppress evidence or informa-
tion obtained or derived from a physical search authorized
by this title, the United States district court or, where the
motion is made before another authority, the United States
district court in the same district as the authority shall,
notwithstanding any other law, if the Attorney General files
an affidavit under oath that disclosure or an adversary
hearing would harm the national security of the United
States, review in camera and ex parte the application,
order, and such other materials relating to the physical
search as may be necessary to determine whether the phys-
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ical search of the aggrieved person was lawfully authorized
and conducted. In making this determination, the court
may disclose to the aggrieved person, under appropriate se-
curity procedures and protective orders, portions of the ap-
plication, order, or other materials relating to the physical
search only where such disclosure is necessary to make an
accurate determination of the legality of the physical search.
‘‘(g) If the United States district court pursuant to
subsection (f) determines that the physical search was not
lawfully authorized or conducted, it shall, in accordance
with the requirements of law, suppress the evidence which
was unlawfully obtained or derived from the physical search
of the aggrieved person or otherwise grant the motion of
the aggrieved person. If the court determines that the phys-
ical search was lawfully authorized or conducted, it shall
deny the motion of the aggrieved person except to the extent
that due process requires discovery or disclosure.
‘‘(h) Orders granting motions or requests under sub-
section (g), decisions under this section that a physical
search was not lawfully authorized or conducted, and orders
of the United States district court requiring review or
granting disclosure of applications, orders or other mate-
rials relating to the physical search shall be final orders
and binding upon all courts of the United States and the
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several States except a United States court of appeals and
the Supreme Court.
‘‘(i) The provisions of this section regarding the use
or disclosure of information obtained or derived from a
physical search shall apply to information obtained or de-
rived from a search conducted without a court order to ob-
tain foreign intelligence information which is not a phys-
ical search as defined in this title solely because the exist-
ence of exigent circumstances would not require a warrant
for law enforcement purposes.
‘‘OVERSIGHT
‘‘SEC. 405. (a) On a semiannual basis the Attorney
General shall fully inform the House Permanent Select
Committee on Intelligence and the Senate Select Committee
on Intelligence concerning all physical searches conducted
pursuant to this title, and all other searches, except those
reported under section 108 of this Act, conducted in the
United States for foreign intelligence purposes. On an an-
nual basis the Attorney General shall also provide to those
committees a report setting forth with respect to the preced-
ing calendar year—
‘‘(1) the total number of applications made for
orders approving physical searches under this title;
and
‘‘(2) the total number of such orders either grant-
ed, modified, or denied.
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‘‘(b) Whenever a search is conducted without a court
order to obtain foreign intelligence information which is not
a physical search as defined in this title solely because the
existence of exigent circumstances would not require a war-
rant for law enforcement purposes, a full report of such
search, including a description of the exigent circumstances,
shall be maintained by the Attorney General. Each such
report shall be transmitted to the Foreign Intelligence Sur-
veillance Court promptly after the search is conducted.
‘‘AUTHORITY FOR INTELLIGENCE SEARCHES
‘‘SEC. 406. (a) The procedures contained in this title
shall be the exclusive means by which a physical search,
as defined in this title, may be conducted in the United
States for foreign intelligence purposes, and an order issued
under this title authorizing a physical search shall con-
stitute a search warrant authorized by law for purposes of
any other law.
‘‘(b) Searches conducted in the United States to collect
foreign intelligence information, other than physical
searches as defined in this title and electronic surveillance
as defined in this Act, and physical searches conducted in
the United States without a court order to collect foreign
intelligence information may be conducted only pursuant
to regulations issued by the Attorney General. Such regula-
tions, and any changes thereto, shall be provided to the Se-
lect Committee on Intelligence of the Senate and the Perma-
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nent Select Committee on Intelligence of the House of Rep-
resentatives at least 14 days prior to the taking effect. Any
regulations issued by the Attorney General regarding such
searches which were in effect as of June 1, 1990, shall be
deemed to be regulations required by this subsection.
‘‘PENALTIES
‘‘SEC. 407. (a) OFFENSE.—A person is guilty of an
offense if he intentionally—
‘‘(1) under color of law for the purpose of obtain-
ing foreign intelligence information, engages in phys-
ical search within the United States except as author-
ized by statute; or
‘‘(2) discloses or uses information obtained under
color of law by physical search within the United
States, knowing or having reason to know that the in-
formation was obtained through physical search not
authorized by statute, for the purpose of obtaining in-
telligence information.
‘‘(b) DEFENSE.—It is a defense to a prosecution under
subsection (a) that the defendant was a law enforcement
or investigative officer engaged in the course of his official
duties and the physical search was authorized by and con-
ducted pursuant to a search warrant or court order of a
court of competent jurisdiction.
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‘‘(c) PENALTY.—An offense described in this section is
punishable by a fine of not more than $10,000 or imprison-
ment for not more than five years, or both.
‘‘(d) JURISDICTION.—There is Federal jurisdiction
over an offense under this section if the person committing
the offense was an officer or employee of the United States
at the time the offense was committed.
‘‘CIVIL LIABILITY
‘‘SEC. 408. CIVIL ACTION.—An aggrieved person, other
than a foreign power or an agent of a foreign power, as
defined in section 101 (a) or (b)(1)(A), respectively, of this
Act, whose premises, property, information, or material has
been subjected to a physical search within the United States
or about whom information obtained by such a physical
search has been disclosed or used in violation of section 407
shall have a cause of action against any person who com-
mitted such violation and shall be entitled to recover—
‘‘(a) actual damages;
‘‘(b) punitive damages; and
‘‘(c) reasonable attorney’s fees and other inves-
tigative and litigation costs reasonably incurred.
‘‘DEFINITIONS
‘‘SEC. 409. As used in this title:
‘‘(a) The terms ‘foreign power,’ ‘agent of a for-
eign power,’ ‘international terrorism,’ ‘sabotage,’ ‘for-
eign intelligence information,’ ‘Attorney General,’
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‘United States person,’ ‘United States’,’ ‘person,’ and
‘State’ shall have the same meaning as in Section 101
of this Act.
‘‘(b) ‘Physical search’ means any physical intru-
sion into premises or property (including examina-
tion of the interior of property by technical means)
or any seizure, reproduction or alteration of informa-
tion, material or property, under circumstances in
which a person has a reasonable expectation of pri-
vacy and a warrant would be required for law en-
forcement purposes, but does not include ‘electronic
surveillance’ as defined in subsection 101(f) of this
Act.
‘‘(c) ‘Minimization procedures’ with respect to
physical search, means—
‘‘(1) specific procedures, which shall be
adopted by the Attorney General, that are rea-
sonably designed in light of the purposes and
technique of the particular physical search, to
minimize the acquisition and retention, and pro-
hibit the dissemination, of non-publicly available
information concerning unconsenting United
States persons consistent with the need of the
United States persons consistent with the need of