3258 
ø‘‘(d)(1) Any individual who files a report 
required to be filed under this title more than 
30 days after the later of— 
ø‘‘(A) the date such report is required 
to be filed pursuant to the provisions of 
this title and the rules and regulations 
promulgated thereunder; or 
ø‘‘(B) if a filing extension is granted 
to such individual under section 301(g), 
the last day of the filing extension period, 
shall, at the direction of and pursuant to 
regulations issued by the Office of Gov-
ernment Ethics, pay a filing fee of $500. 
All such fees shall be deposited in the 
miscellaneous receipts of the Treasury. 
The authority under this paragraph to di-
rect the payment of a filing fee may be 
delegated by the Office of Government 
Ethics to other agencies in the executive 
branch. 
ø‘‘(2) The Office of Government Ethics 
may waive the filing fee under this subsection 
for good cause shown.
3259 
ø‘‘SEC. 305. CUSTODY OF AND PUBLIC ACCESS TO REPORTS. 
ø‘‘Any report filed with or transmitted to 
an agency or the Office of Government Ethics 
pursuant to this title shall be retained by such 
agency or Office, as the case may be, for a pe-
riod of 6 years after receipt of the report. 
After such 6-year period the report shall be 
destroyed unless needed in an ongoing inves-
tigation, except that in the case of an indi-
vidual who filed the report pursuant to sec-
tion 301(b) and was not subsequently con-
firmed by the Senate, such reports shall be de-
stroyed 1 year after the individual is no 
longer under consideration by the Senate, un-
less needed in an ongoing investigation. 
ø‘‘SEC. 306. REVIEW OF REPORTS. 
ø‘‘(a) Each designated agency ethics offi-
cial or Secretary concerned shall make provi-
sions to ensure that each report filed with 
him under this title is reviewed within 60 
days after the date of such filing, except that 
the Director of the Office of Government Eth-
ics shall review only those reports required to 
be transmitted to him under this title within 
60 days after the date of transmittal.
3260 
ø‘‘(b)(1) If after reviewing any report 
under subsection (a), the Director of the Of-
fice of Government Ethics, the Secretary con-
cerned, or the designated agency ethics offi-
cial, as the case may be, is of the opinion that 
on the basis of information contained in such 
report the individual submitting such report 
is in compliance with applicable laws and reg-
ulations, he shall state such opinion on the re-
port, and shall sign such report. 
ø‘‘(2) If the Director of the Office of Gov-
ernment Ethics, the Secretary concerned, or 
the designated agency ethics official after re-
viewing any report under subsection (a)— 
ø‘‘(A) believes additional information 
is required to be submitted to complete 
the form or to perform a conflict of inter-
est analysis, he shall notify the individual 
submitting such report what additional 
information is required and the time by 
which it must be submitted, or 
ø‘‘(B) is of the opinion, on the basis of 
information submitted, that the indi-
vidual is not in compliance with applica-
ble laws and regulations, he shall notify
3261 
the individual, afford a reasonable oppor-
tunity for a written or oral response, and 
after consideration of such response, 
reach an opinion as to whether or not, on 
the basis of information submitted, the 
individual is in compliance with such 
laws and regulations. 
ø‘‘(3) If the Director of the Office of Gov-
ernment Ethics, the Secretary concerned, or 
the designated agency ethics official reaches 
an opinion under paragraph (2)(B) that an in-
dividual is not in compliance with applicable 
laws and regulations, the official shall notify 
the individual of that opinion and, after an 
opportunity for personal consultation (if 
practicable), determine and notify the indi-
vidual of which steps, if any, would in the 
opinion of such official be appropriate for as-
suring compliance with such laws and regula-
tions and the date by which such steps should 
be taken. Such steps may include, as appro-
priate— 
ø‘‘(A) divestiture, 
ø‘‘(B) restitution,
3262 
ø‘‘(C) the establishment of a blind 
trust, 
ø‘‘(D) request for an exemption under 
section 208(b) of title 18, United States 
Code, or 
ø‘‘(E) voluntary request for transfer, 
reassignment, limitation of duties, or res-
ignation. 
The use of any such steps shall be in accord-
ance with such rules or regulations as the Of-
fice of Government Ethics may prescribe. 
ø‘‘(4) If steps for assuring compliance with 
applicable laws and regulations are not taken 
by the date set under paragraph (3) by a mem-
ber of the Foreign Service or the uniformed 
services, the Secretary concerned shall take 
appropriate action. 
ø‘‘(5) If steps for assuring compliance with 
applicable laws and regulations are not taken 
by the date set under paragraph (3) by any 
other officer or employee, the matter shall be 
referred to the head of the appropriate agen-
cy for appropriate action. 
ø‘‘(6) The Office of Government Ethics 
may render advisory opinions interpreting
3263 
this title. Notwithstanding any other provi-
sion of law, the individual to whom a public 
advisory opinion is rendered in accordance 
with this paragraph, and any other individual 
covered by this title who is involved in a fact 
situation which is indistinguishable in all ma-
terial aspects, and who acts in good faith in 
accordance with the provisions and findings 
of such advisory opinion shall not, as a result 
of such act, be subject to any penalty or sanc-
tion provided by this title. 
ø‘‘SEC. 307. CONFIDENTIAL REPORTS AND OTHER ADDI-
TIONAL REQUIREMENTS. 
ø‘‘(a)(1) The Office of Government Ethics 
may require officers and employees of the ex-
ecutive branch (including special Govern-
ment employees as defined in section 202 of 
title 18, United States Code) to file confiden-
tial financial disclosure reports, in such form 
as it may prescribe. The information required 
to be reported under this subsection by the of-
ficers and employees of any department or 
agency listed in section 301(e) shall be set 
forth in rules or regulations prescribed by the 
Office of Government Ethics, and may be less
3264 
extensive than otherwise required by this 
title, or more extensive when determined by 
the Office of Government Ethics to be nec-
essary and appropriate in light of sections 202 
through 209 of title 18, United States Code, 
regulations promulgated thereunder, or the 
authorized activities of such officers or em-
ployees. Any individual required to file a re-
port pursuant to section 301 shall not be re-
quired to file a confidential report pursuant 
to this subsection, except with respect to in-
formation which is more extensive than infor-
mation otherwise required by this title. Sec-
tion 305 shall not apply with respect to any 
such report. 
ø‘‘(2) Any information required to be pro-
vided by an individual under this subsection 
shall be confidential and shall not be dis-
closed to the public. 
ø‘‘(3) Nothing in this subsection exempts 
any individual otherwise covered by the re-
quirement to file a public financial disclosure 
report under this title from such requirement. 
ø‘‘(b) The provisions of this title requiring 
the reporting of information shall supersede
3265 
any general requirement under any other pro-
vision of law or regulation with respect to the 
reporting of information required for pur-
poses of preventing conflicts of interest or ap-
parent conflicts of interest. Such provisions of 
this title shall not supersede the requirements 
of section 7342 of title 5, United States Code. 
ø‘‘(c) Nothing in this Act requiring report-
ing of information shall be deemed to author-
ize the receipt of income, gifts, or reimburse-
ments; the holding of assets, liabilities, or po-
sitions; or the participation in transactions 
that are prohibited by law, Executive order, 
rule, or regulation. 
ø‘‘SEC. 308. AUTHORITY OF COMPTROLLER GENERAL. 
ø‘‘The Comptroller General shall have ac-
cess to financial disclosure reports filed 
under this title for the purposes of carrying 
out his statutory responsibilities. 
ø‘‘SEC. 309. DEFINITIONS. 
ø‘‘For the purposes of this title— 
ø‘‘(1) 
the 
term 
‘dependent 
child’ 
means, when used with respect to any re-
porting individual, any individual who is
3266 
a son, daughter, stepson, or stepdaughter 
and who— 
ø‘‘(A) is unmarried and under age 
21 and is living in the household of 
such reporting individual; or 
ø‘‘(B) is a dependent of such re-
porting individual within the mean-
ing of section 152 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 152); 
ø‘‘(2) the term ‘designated agency eth-
ics official’ means an officer or employee 
who is designated to administer the pro-
visions of this title within an agency; 
ø‘‘(3) the term ‘executive branch’ in-
cludes— 
ø‘‘(A) each Executive agency (as 
defined in section 105 of title 5, 
United States Code), other than the 
General Accounting Office; and 
ø‘‘(B) any other entity or adminis-
trative unit in the executive branch; 
ø‘‘(4) the term ‘gift’ means a payment, 
advance, forbearance, rendering, or de-
posit of money, or any thing of value, un-
less consideration of equal or greater
3267 
value is received by the donor, but does 
not include— 
ø‘‘(A) bequests and other forms of 
inheritance; 
ø‘‘(B) suitable mementos of a func-
tion honoring the reporting indi-
vidual; 
ø‘‘(C) 
food, 
lodging, 
transpor-
tation, and entertainment provided 
by a foreign government within a for-
eign country or by the United States 
Government, the District of Colum-
bia, or a State or local government or 
political subdivision thereof; 
ø‘‘(D) food and beverages which 
are not consumed in connection with 
a gift of overnight lodging; 
ø‘‘(E) communications to the of-
fices of a reporting individual, includ-
ing subscriptions to newspapers and 
periodicals; or 
ø‘‘(F) items that are accepted pur-
suant to or are required to be re-
ported by the reporting individual
3268 
under section 7342 of title 5, United 
States Code. 
ø‘‘(5) the term ‘honorarium’ means a 
payment of money or anything of value 
for an appearance, speech, or article; 
ø‘‘(6) the term ‘income’ means all in-
come from whatever source derived, in-
cluding but not limited to the following 
items: compensation for services, includ-
ing fees, commissions, and similar items; 
gross income derived from business (and 
net income if the individual elects to in-
clude it); gains derived from dealings in 
property; interest; rents; royalties; prizes 
and awards; dividends; annuities; income 
from life insurance and endowment con-
tracts; pensions; income from discharge 
of indebtedness; distributive share of 
partnership income; and income from an 
interest in an estate or trust; 
ø‘‘(7) the term ‘personal hospitality of 
any individual’ means hospitality ex-
tended for a nonbusiness purpose by an 
individual, not a corporation or organiza-
tion, at the personal residence of that in-
3269 
dividual or his family or on property or 
facilities owned by that individual or his 
family; 
ø‘‘(8) the term ‘reimbursement’ means 
any payment or other thing of value re-
ceived by the reporting individual, other 
than gifts, to cover travel-related ex-
penses of such individual other than 
those which are— 
ø‘‘(A) provided by the United 
States Government, the District of 
Columbia, or a State or local govern-
ment or political subdivision thereof; 
ø‘‘(B) required to be reported by 
the reporting individual under sec-
tion 7342 of title 5, United States 
Code; or 
ø‘‘(C) required to be reported 
under section 304 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 
434); 
ø‘‘(9) the term ‘relative’ means an in-
dividual who is related to the reporting 
individual, as father, mother, son, daugh-
ter, brother, sister, uncle, aunt, great
3270 
aunt, great uncle, first cousin, nephew, 
niece, husband, wife, grandfather, grand-
mother, grandson, granddaughter, father- 
in-law, mother-in-law, son-in-law, daugh-
ter-in-law, brother-in-law, sister-in-law, 
stepfather, 
stepmother, 
stepson, 
step-
daughter, stepbrother, stepsister, half 
brother, half sister, or who is the grand-
father or grandmother of the spouse of 
the reporting individual, and shall be 
deemed to include the fiance´ or fiance´e 
of the reporting individual; 
ø‘‘(10) the term ‘Secretary concerned’ 
has the meaning set forth in section 
101(a)(9) of title 10, United States Code; 
and 
ø‘‘(11) the term ‘value’ means a good 
faith estimate of the dollar value if the 
exact value is neither known nor easily 
obtainable by the reporting individual. 
ø‘‘SEC. 310. NOTICE OF ACTIONS TAKEN TO COMPLY WITH 
ETHICS AGREEMENTS. 
ø‘‘(a) In any case in which an individual 
agrees with that individual’s designated agen-
cy ethics official, the Office of Government
3271 
Ethics, or a Senate confirmation committee, 
to take any action to comply with this Act or 
any other law or regulation governing con-
flicts of interest of, or establishing standards 
of conduct applicable with respect to, officers 
or employees of the Government, that indi-
vidual shall notify in writing the designated 
agency ethics official, the Office of Govern-
ment Ethics, or the appropriate committee of 
the Senate, as the case may be, of any action 
taken by the individual pursuant to that 
agreement. Such notification shall be made 
not later than the date specified in the agree-
ment by which action by the individual must 
be taken, or not later than 3 months after the 
date of the agreement, if no date for action is 
so specified. If all actions agreed to have not 
been completed by the date of this notifica-
tion, such notification shall continue on a 
monthly basis thereafter until the individual 
has met the terms of the agreement. 
ø‘‘(b) If an agreement described in sub-
section (a) requires that the individual recuse 
himself or herself from particular categories 
of agency or other official action, the indi-
3272 
vidual shall reduce to writing those subjects 
regarding which the recusal agreement will 
apply and the process by which it will be de-
termined whether the individual must recuse 
himself or herself in a specific instance. An in-
dividual shall be considered to have complied 
with the requirements of subsection (a) with 
respect to such recusal agreement if such in-
dividual files a copy of the document setting 
forth the information described in the pre-
ceding sentence with such individual’s des-
ignated agency ethics official or the Office of 
Government Ethics within the time pre-
scribed in the penultimate sentence of sub-
section (a). 
ø‘‘SEC. 311. ADMINISTRATION OF PROVISIONS. 
ø‘‘The Office of Government Ethics shall 
issue regulations, develop forms, and provide 
such guidance as is necessary to implement 
and interpret this title.’’. 
ø(b) EXEMPTION FROM PUBLIC ACCESS TO FI-
NANCIAL
DISCLOSURES.—Section 105(a)(1) of 
such Act is amended by inserting ‘‘the Office 
of the National Intelligence Director,’’ before 
‘‘the Central Intelligence Agency’’.
3273 
ø(c) 
CONFORMING
AMENDMENT.—Section 
101(f) of such Act is amended— 
ø(1) in paragraph (12), by striking the 
period at the end and inserting a semi-
colon; and 
ø(2) by adding at the end the fol-
lowing: 
‘‘but do not include any officer or employee of 
any department or agency listed in section 
301(e).’’. 
øSEC. 5044. REDUCTION OF POSITIONS REQUIRING AP-
POINTMENT WITH SENATE CONFIRMATION. 
ø(a) DEFINITION.—In this section, the term 
‘‘agency’’ means an Executive agency, as de-
fined under section 105 of title 5, United 
States Code. 
ø(b) REDUCTION PLAN.— 
ø(1) IN GENERAL.—Not later than 180 
days after the date of enactment of this 
Act, the head of each agency shall submit 
a Presidential appointment reduction 
plan to— 
ø(A) the President; 
ø(B) the Committee on Govern-
mental Affairs of the Senate; and
3274 
ø(C) the Committee on Govern-
ment Reform of the House of Rep-
resentatives. 
ø(2) CONTENT.—The plan under this 
subsection shall provide for the reduc-
tion of— 
ø(A) the number of positions with-
in that agency that require an ap-
pointment by the President, by and 
with the advice and consent of the 
Senate; and 
ø(B) the number of levels of such 
positions within that agency. 
øSEC. 5045. EFFECTIVE DATES. 
ø(a) SECTION 5043.— 
ø(1) IN
GENERAL.—Subject to para-
graph (2), the amendments made by sec-
tion 5043 shall take effect on January 1 of 
the year following the year in which oc-
curs the date of enactment of this Act. 
ø(2) LATER
DATE.—If this Act is en-
acted on or after July 1 of a year, the 
amendments made by section 301 shall 
take effect on July 1 of the following 
year.
3275 
ø(b) SECTION
5044.—Section 5044 shall 
take effect on the date of enactment of this 
Act. 
øCHAPTER 2—FEDERAL BUREAU OF 
INVESTIGATION REVITALIZATION 
øSEC. 5051. MANDATORY SEPARATION AGE. 
ø(a) CIVIL SERVICE RETIREMENT SYSTEM.— 
Section 8335(b) of title 5, United States Code, 
is amended— 
ø(1) by striking ‘‘(b)’’ and inserting 
‘‘(b)(1)’’; and 
ø(2) by adding at the end the fol-
lowing: 
ø‘‘(2) In the case of employees of the Fed-
eral Bureau of Investigation, the second sen-
tence of paragraph (1) shall be applied by sub-
stituting ‘65 years of age’ for ‘60 years of age’. 
The authority to grant exemptions in accord-
ance with the preceding sentence shall cease 
to be available after December 31, 2009.’’. 
ø(b) FEDERAL EMPLOYEES’ RETIREMENT SYS-
TEM.—Section 8425(b) of title 5, United States 
Code, is amended— 
ø(1) by striking ‘‘(b)’’ and inserting 
‘‘(b)(1)’’; and
3276 
ø(2) by adding at the end the fol-
lowing: 
ø‘‘(2) In the case of employees of the Fed-
eral Bureau of Investigation, the second sen-
tence of paragraph (1) shall be applied by sub-
stituting ‘65 years of age’ for ‘60 years of age’. 
The authority to grant exemptions in accord-
ance with the preceding sentence shall cease 
to be available after December 31, 2009.’’. 
øSEC. 5052. RETENTION AND RELOCATION BONUSES. 
ø(a) IN GENERAL.—Subchapter IV of chap-
ter 57 of title 5, United States Code, is amend-
ed by adding at the end the following: 
ø‘‘§ 5759. Retention and relocation bonuses for the 
Federal Bureau of Investigation 
ø‘‘(a) AUTHORITY.—The Director of the Fed-
eral Bureau of Investigation, after consulta-
tion with the Director of the Office of Per-
sonnel Management, may pay, on a case-by- 
case basis, a bonus under this section to an 
employee of the Bureau if— 
ø‘‘(1)(A) the unusually high or unique 
qualifications of the employee or a spe-
cial need of the Bureau for the employ-
3277 
ee’s services makes it essential to retain 
the employee; and 
ø‘‘(B) the Director of the Federal Bu-
reau of Investigation determines that, in 
the absence of such a bonus, the em-
ployee would be likely to leave— 
ø‘‘(i) the Federal service; or 
ø‘‘(ii) for a different position in 
the Federal service; or 
ø‘‘(2) the individual is transferred to a 
different geographic area with a higher 
cost of living (as determined by the Di-
rector of the Federal Bureau of Investiga-
tion). 
ø‘‘(b) SERVICE AGREEMENT.—Payment of a 
bonus under this section is contingent upon 
the employee entering into a written service 
agreement with the Bureau to complete a pe-
riod of service with the Bureau. Such agree-
ment shall include— 
ø‘‘(1) the period of service the indi-
vidual shall be required to complete in 
return for the bonus; and 
ø‘‘(2) the conditions under which the 
agreement may be terminated before the
3278 
agreed-upon service period has been 
completed, and the effect of the termi-
nation. 
ø‘‘(c) LIMITATION ON AUTHORITY.—A bonus 
paid under this section may not exceed 50 
percent of the employee’s basic pay. 
ø‘‘(d) IMPACT ON BASIC PAY.—A retention 
bonus is not part of the basic pay of an em-
ployee for any purpose. 
ø‘‘(e) TERMINATION OF AUTHORITY.—The au-
thority to grant bonuses under this section 
shall cease to be available after December 31, 
2009.’’. 
ø(b) CLERICAL AMENDMENT.—The analysis 
for chapter 57 of title 5, United States Code, 
is amended by adding at the end the fol-
lowing: 
ø‘‘5759. Retention and relocation bonuses for the Federal Bu-
reau of Investigation.’’. 
øSEC. 5053. FEDERAL BUREAU OF INVESTIGATION RE-
SERVE SERVICE. 
ø(a) IN GENERAL.—Chapter 35 of title 5, 
United States Code, is amended by adding at 
the end the following:
3279 
ø‘‘SUBCHAPTER VII—RETENTION OF RE-
TIRED SPECIALIZED EMPLOYEES AT 
THE FEDERAL BUREAU OF INVESTIGA-
TION 
ø‘‘§ 3598. Federal Bureau of Investigation Reserve 
Service 
ø‘‘(a) ESTABLISHMENT.—The Director of the 
Federal Bureau of Investigation may provide 
for the establishment and training of a Fed-
eral Bureau of Investigation Reserve Service 
(hereinafter in this section referred to as the 
‘FBI Reserve Service’) for temporary reem-
ployment of employees in the Bureau during 
periods of emergency, as determined by the 
Director. 
ø‘‘(b) MEMBERSHIP.—Membership in the 
FBI Reserve Service shall be limited to indi-
viduals who previously served as full-time em-
ployees of the Bureau. 
ø‘‘(c) ANNUITANTS.—If an individual receiv-
ing an annuity from the Civil Service Retire-
ment and Disability Fund on the basis of such 
individual’s service becomes temporarily re-
employed pursuant to this section, such annu-
ity shall not be discontinued thereby. An indi-
3280 
vidual so reemployed shall not be considered 
an employee for the purposes of chapter 83 or 
84. 
ø‘‘(d) NO IMPACT
ON BUREAU PERSONNEL 
CEILING.—FBI Reserve Service members re-
employed on a temporary basis pursuant to 
this section shall not count against any per-
sonnel ceiling applicable to the Bureau. 
ø‘‘(e) EXPENSES.—The Director may pro-
vide members of the FBI Reserve Service 
transportation and per diem in lieu of subsist-
ence, in accordance with applicable provi-
sions of this title, for the purpose of partici-
pating in any training that relates to service 
as a member of the FBI Reserve Service. 
ø‘‘(f) LIMITATION
ON MEMBERSHIP.—Mem-
bership of the FBI Reserve Service is not to 
exceed 500 members at any given time.’’. 
ø(b) CLERICAL AMENDMENT.—The analysis 
for chapter 35 of title 5, United States Code, 
is amended by adding at the end the fol-
lowing: 
ø‘‘SUBCHAPTER VII—RETENTION OF RETIRED SPECIALIZED 
EMPLOYEES AT THE FEDERAL BUREAU OF INVESTIGATION 
ø‘‘3598. Federal Bureau of Investigation Reserve Service.’’.
3281 
øSEC. 5054. CRITICAL POSITIONS IN THE FEDERAL BUREAU 
OF INVESTIGATION INTELLIGENCE DIREC-
TORATE. 
øSection 5377(a)(2) of title 5, United States 
Code, is amended— 
ø(1) by striking ‘‘and’’ at the end of 
subparagraph (E); 
ø(2) by striking the period at the end 
of subparagraph (F) and inserting ‘‘; and’’; 
and 
ø(3) by inserting after subparagraph 
(F) the following: 
ø‘‘(G) a position at the Federal 
Bureau of Investigation, the primary 
duties and responsibilities of which 
relate to intelligence functions (as de-
termined by the Director of the Fed-
eral Bureau of Investigation).’’. 
øCHAPTER 3—MANAGEMENT AUTHORITY 
øSEC. 5061. MANAGEMENT AUTHORITY. 
ø(a) 
MANAGEMENT
AUTHORITY.—Section 
7103(b)(1)(A) of title 5, United States Code, is 
amended by adding ‘‘homeland security,’’ 
after ‘‘investigative,’’.
3282 
ø(b) EXCLUSIONARY
AUTHORITY.—Section 
842 of the Homeland Security Act (Public Law 
107–296; 6 U.S.C. 412) is repealed. 
øSubtitle F—Security Clearance 
Modernization 
øSEC. 5071. DEFINITIONS. 
øIn this subtitle: 
ø(1) The term ‘‘Director’’ means the 
National Intelligence Director. 
ø(2) The term ‘‘agency’’ means— 
ø(A) an executive agency, as de-
fined in section 105 of title 5, United 
States Code; 
ø(B) a military department, as de-
fined in section 102 of title 5, United 
States Code; and 
ø(C) elements of the intelligence 
community, as defined in section 3(4) 
of the National Security Act of 1947 
(50 U.S.C. 401a(4)). 
ø(3) The term ‘‘authorized investiga-
tive agency’’ means an agency authorized 
by law, regulation or direction of the Di-
rector to conduct a counterintelligence 
investigation or investigation of persons
3283 
who are proposed for access to classified 
information to ascertain whether such 
persons satisfy the criteria for obtaining 
and retaining access to such information. 
ø(4) The term ‘‘authorized adjudica-
tive agency’’ means an agency authorized 
by law, regulation or direction of the Di-
rector to determine eligibility for access 
to classified information in accordance 
with Executive Order 12968. 
ø(5) The term ‘‘highly sensitive pro-
gram’’ means— 
ø(A) a government program des-
ignated as a Special Access Program 
(as defined by section 4.1(h) of Execu-
tive Order 12958); and 
ø(B) a government program that 
applies restrictions required for— 
ø(i) Restricted Data (as de-
fined by section 11 y. of the Atom-
ic Energy Act of 1954 (42 U.S.C. 
2014(y)); or 
ø(ii) other information com-
monly referred to as ‘‘Sensitive 
Compartmented Information’’.
3284 
ø(6) The term ‘‘current investigation 
file’’ means, with respect to a security 
clearance, a file on an investigation or 
adjudication that has been conducted 
during— 
ø(A) the 5-year period beginning 
on the date the security clearance 
was granted, in the case of a Top Se-
cret Clearance, or the date access was 
granted to a highly sensitive pro-
gram; 
ø(B) the 10-year period beginning 
on the date the security clearance 
was granted in the case of a Secret 
Clearance; and 
ø(C) the 15-year period beginning 
on the date the security clearance 
was granted in the case of a Con-
fidential Clearance. 
ø(7) The term ‘‘personnel security in-
vestigation’’ means any investigation re-
quired for the purpose of determining the 
eligibility of any military, civilian, or gov-
ernment contractor personnel to access 
classified information.
3285 
ø(8) The term ‘‘periodic reinvestiga-
tions’’ means— 
ø(A) investigations conducted for 
the purpose of updating a previously 
completed 
background 
investiga-
tion— 
ø(i) every five years in the 
case of a Top Secret Clearance or 
access to a highly sensitive pro-
gram; 
ø(ii) every 10 years in the case 
of a Secret Clearance; and 
ø(iii) every 15 years in the 
case of a Confidential Clearance; 
ø(B) on-going investigations to 
identify personnel security risks as 
they develop, pursuant to section 
105(c). 
ø(9) The term ‘‘appropriate commit-
tees of Congress’’ means— 
ø(A) the Permanent Select Com-
mittee on Intelligence and the Com-
mittees on Armed Services, Judiciary, 
and Government Reform of the House 
of Representatives; and
3286 
ø(B) the Select Committee on In-
telligence and the Committees on 
Armed Services, Judiciary, and Gov-
ernmental Affairs of the Senate. 
øSEC. 5072. SECURITY CLEARANCE AND INVESTIGATIVE 
PROGRAMS OVERSIGHT AND ADMINISTRA-
TION. 
øThe Deputy National Intelligence Direc-
tor for Community Management and Re-
sources shall have responsibility for the fol-
lowing: 
ø(1) Directing day-to-day oversight of 
investigations and adjudications for per-
sonnel security clearances to highly sen-
sitive programs throughout the Federal 
Government. 
ø(2) Developing and implementing 
uniform and consistent policies and pro-
cedures to ensure the effective, efficient, 
and timely completion of security clear-
ances and determinations for access to 
highly sensitive programs, including the 
standardization 
of 
security 
question-
naires, financial disclosure requirements
3287 
for security clearance applicants, and 
polygraph policies and procedures. 
ø(3) Serving as the final authority to 
designate 
an 
authorized 
investigative 
agency or authorized adjudicative agency 
pursuant to section 5074(d). 
ø(4) Ensuring reciprocal recognition 
of access to classified information among 
agencies, including acting as the final au-
thority to arbitrate and resolve disputes 
involving 
the 
reciprocity 
of 
security 
clearances and access to highly sensitive 
programs. 
ø(5) Ensuring, to the maximum extent 
practicable, that sufficient resources are 
available in each agency to achieve clear-
ance and investigative program goals. 
ø(6) Reviewing and coordinating the 
development of tools and techniques for 
enhancing the conduct of investigations 
and granting of clearances. 
øSEC. 5073. RECIPROCITY OF SECURITY CLEARANCE AND 
ACCESS DETERMINATIONS. 
ø(a) REQUIREMENT
FOR RECIPROCITY.—(1) 
All security clearance background investiga-
3288 
tions and determinations completed by an au-
thorized investigative agency or authorized 
adjudicative agency shall be accepted by all 
agencies. 
ø(2) All security clearance background in-
vestigations initiated by an authorized inves-
tigative agency shall be transferable to any 
other authorized investigative agency. 
ø(b) PROHIBITION
ON ESTABLISHING ADDI-
TIONAL REQUIREMENTS.—(1) An authorized in-
vestigative agency or authorized adjudicative 
agency may not establish additional inves-
tigative or adjudicative requirements (other 
than requirements for the conduct of a poly-
graph examination) that exceed requirements 
specified in Executive Orders establishing se-
curity requirements for access to classified in-
formation. 
ø(2) Notwithstanding the paragraph (1), 
the Director may establish additional require-
ments as needed for national security pur-
poses. 
ø(c) PROHIBITION
ON DUPLICATIVE INVES-
TIGATIONS.—An authorized investigative agen-
cy or authorized adjudicative agency may not
3289 
conduct an investigation for purposes of de-
termining whether to grant a security clear-
ance to an individual where a current inves-
tigation or clearance of equal level already ex-
ists or has been granted by another author-
ized adjudicative agency. 
øSEC. 5074. ESTABLISHMENT OF NATIONAL DATABASE . 
ø(a) ESTABLISHMENT.—Not later than 12 
months after the date of the enactment of this 
Act, the Director of the Office of Personnel 
Management, in cooperation with the Direc-
tor, shall establish, and begin operating and 
maintaining, an integrated, secure, national 
database into which appropriate data rel-
evant to the granting, denial, or revocation of 
a security clearance or access pertaining to 
military, civilian, or government contractor 
personnel shall be entered from all author-
ized investigative and adjudicative agencies. 
ø(b) INTEGRATION.—The national database 
established under subsection (a) shall func-
tion to integrate information from existing 
Federal clearance tracking systems from 
other authorized investigative and adjudica-
3290 
tive agencies into a single consolidated data-
base. 
ø(c) REQUIREMENT TO CHECK DATABASE.— 
Each authorized investigative or adjudicative 
agency shall check the national database es-
tablished under subsection (a) to determine 
whether an individual the agency has identi-
fied as requiring a security clearance has al-
ready been granted or denied a security clear-
ance, or has had a security clearance revoked, 
by any other authorized investigative or adju-
dicative agency. 
ø(d) CERTIFICATION OF AUTHORIZED INVES-
TIGATIVE AGENCIES OR AUTHORIZED ADJUDICA-
TIVE AGENCIES.—The Director shall evaluate 
the extent to which an agency is submitting 
information to, and requesting information 
from, the national database established under 
subsection (a) as part of a determination of 
whether to certify the agency as an author-
ized investigative agency or authorized adju-
dicative agency. 
ø(e) EXCLUSION OF CERTAIN INTELLIGENCE 
OPERATIVES.—The Director may authorize an 
agency to withhold information about certain
3291 
individuals from the database established 
under subsection (a) if the Director deter-
mines it is necessary for national security 
purposes. 
ø(f) COMPLIANCE.—The Director shall es-
tablish a review procedure by which agencies 
can seek review of actions required under 
section 5073. 
ø(g) AUTHORIZATION OF APPROPRIATIONS.— 
There is authorized to be appropriated such 
sums as may be necessary for fiscal year 2005 
and each subsequent fiscal year for the imple-
mentation, maintenance and operation of the 
database established in subsection (a). 
øSEC. 5075. USE OF AVAILABLE TECHNOLOGY IN CLEAR-
ANCE INVESTIGATIONS. 
ø(a) INVESTIGATIONS.—Not later than 12 
months after the date of the enactment of this 
Act, each authorized investigative agency 
that conducts personnel security clearance 
investigations shall use, to the maximum ex-
tent practicable, available information tech-
nology and databases to expedite investiga-
tive processes and to verify standard informa-
3292 
tion submitted as part of an application for a 
security clearance. 
ø(b) INTERIM CLEARANCE.—If the applica-
tion of an applicant for an interim clearance 
has been processed using the technology 
under subsection (a), the interim clearances 
for the applicant at the secret, top secret, and 
special access program levels may be granted 
before the completion of the appropriate in-
vestigation. Any request to process an interim 
clearance shall be given priority, and the au-
thority granting the interim clearance shall 
ensure that final adjudication on the applica-
tion is made within 90 days after the initial 
clearance is granted. 
ø(c) ON-GOING MONITORING OF INDIVIDUALS 
WITH SECURITY CLEARANCES.—(1) Authorized 
investigative agencies and authorized adju-
dicative agencies shall establish procedures 
for the regular, ongoing verification of per-
sonnel with security clearances in effect for 
continued access to classified information. 
Such procedures shall include the use of 
available technology to detect, on a regularly 
recurring basis, any issues of concern that
3293 
may arise involving such personnel and such 
access. 
ø(2) Such regularly recurring verification 
may be used as a basis for terminating a secu-
rity clearance or access and shall be used in 
periodic reinvestigations to address emerging 
threats and adverse events associated with in-
dividuals with security clearances in effect to 
the maximum extent practicable. 
ø(3) If the Director certifies that the na-
tional security of the United States is not 
harmed by the discontinuation of periodic re-
investigations, 
the 
regularly 
recurring 
verification under this section may replace 
periodic reinvestigations. 
øSEC. 5076. REDUCTION IN LENGTH OF PERSONNEL SECU-
RITY CLEARANCE PROCESS. 
ø(a) 60-DAY PERIOD FOR DETERMINATION ON 
CLEARANCES.—Each authorized adjudicative 
agency shall make a determination on an ap-
plication for a personnel security clearance 
within 60 days after the date of receipt of the 
completed application for a security clear-
ance by an authorized investigative agency. 
The 60-day period shall include—
3294 
ø(1) a period of not longer than 40 
days to complete the investigative phase 
of the clearance review; and 
ø(2) a period of not longer than 20 
days to complete the adjudicative phase 
of the clearance review. 
ø(b) EFFECTIVE DATE AND PHASE-IN.— 
ø(1) EFFECTIVE
DATE.—Subsection (a) 
shall take effect 5 years after the date of 
the enactment of this Act. 
ø(2) PHASE-IN.—During the period be-
ginning on a date not later than 2 years 
after the date after the enactment of this 
Act and ending on the date on which sub-
section (a) takes effect as specified in 
paragraph (1), each authorized adjudica-
tive agency shall make a determination 
on an application for a personnel secu-
rity clearance pursuant to this title with-
in 120 days after the date of receipt of the 
application for a security clearance by an 
authorized investigative agency. The 120- 
day period shall include—
3295 
ø(A) a period of not longer than 
90 days to complete the investigative 
phase of the clearance review; and 
ø(B) a period of not longer than 
30 days to complete the adjudicative 
phase of the clearance review. 
øSEC. 5077. SECURITY CLEARANCES FOR PRESIDENTIAL 
TRANSITION. 
ø(a) CANDIDATES FOR NATIONAL SECURITY 
POSITIONS.—(1) The President-elect shall sub-
mit to the Director the names of candidates 
for high-level national security positions, for 
positions at the level of under secretary of ex-
ecutive departments and above, as soon as 
possible after the date of the general elections 
held to determine the electors of President 
and Vice President under section 1 or 2 of 
title 3, United States Code. 
ø(2) The Director shall be responsible for 
the expeditious completion of the background 
investigations necessary to provide appro-
priate security clearances to the individuals 
who are candidates described under para-
graph (1) before the date of the inauguration 
of the President-elect as President and the in-
3296 
auguration of the Vice-President-elect as Vice 
President. 
ø(b) SECURITY CLEARANCES FOR TRANSITION 
TEAM MEMBERS.—(1) In this section, the term 
‘‘major party’’ has the meaning provided 
under section 9002(6) of the Internal Revenue 
Code of 1986. 
ø(2) Each major party candidate for Presi-
dent, except a candidate who is the incum-
bent President, shall submit, before the date 
of the general presidential election, requests 
for security clearances for prospective transi-
tion team members who will have a need for 
access to classified information to carry out 
their responsibilities as members of the Presi-
dent-elect’s transition team. 
ø(3) Necessary background investigations 
and eligibility determinations to permit ap-
propriate prospective transition team mem-
bers to have access to classified information 
shall be completed, to the fullest extent prac-
ticable, by the day after the date of the gen-
eral presidential election.
3297 
øSEC. 5078. REPORTS. 
øNot later than February 15, 2006, and an-
nually thereafter through 2016, the Director 
shall submit to the appropriate committees of 
Congress a report on the progress made dur-
ing the preceding year toward meeting the re-
quirements specified in this Act. The report 
shall include— 
ø(1) the periods of time required by 
the authorized investigative agencies and 
authorized adjudicative agencies during 
the year covered by the report for con-
ducting 
investigations, 
adjudicating 
cases, and granting clearances, from date 
of submission to ultimate disposition and 
notification to the subject and the sub-
ject’s employer; 
ø(2) a discussion of any impediments 
to the smooth and timely functioning of 
the implementation of this title; and 
ø(3) such other information or rec-
ommendations as the Deputy Director 
deems appropriate.
3298 
øSubtitle G—Emergency Financial 
Preparedness 
øSEC. 5081. DELEGATION AUTHORITY OF THE SECRETARY 
OF THE TREASURY. 
øSubsection (d) of section 306 of title 31, 
United States Code, is amended by inserting 
‘‘or employee’’ after ‘‘another officer’’. 
øSEC. 5082. EXTENSION OF EMERGENCY ORDER AUTHOR-
ITY OF THE SECURITIES AND EXCHANGE 
COMMISSION. 
ø(a) EXTENSION OF AUTHORITY.—Paragraph 
(2) of section 12(k) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78l(k)(2)) is amended to 
read as follows: 
ø‘‘(2) EMERGENCY
ORDERS.—(A) The 
Commission, in an emergency, may by 
order summarily take such action to 
alter, supplement, suspend, or impose re-
quirements or restrictions with respect to 
any matter or action subject to regula-
tion by the Commission or a self-regu-
latory organization under the securities 
laws, as the Commission determines is 
necessary in the public interest and for 
the protection of investors—
3299 
ø‘‘(i) to maintain or restore fair 
and orderly securities markets (other 
than markets in exempted securities); 
ø‘‘(ii) to ensure prompt, accurate, 
and safe clearance and settlement of 
transactions in securities (other than 
exempted securities); or 
ø‘‘(iii) to reduce, eliminate, or pre-
vent the substantial disruption by the 
emergency of (I) securities markets 
(other than markets in exempted se-
curities), investment companies, or 
any other significant portion or seg-
ment of such markets, or (II) the 
transmission or processing of securi-
ties transactions (other than trans-
actions in exempted securities). 
ø‘‘(B) An order of the Commission 
under this paragraph (2) shall continue 
in effect for the period specified by the 
Commission, and may be extended. Ex-
cept as provided in subparagraph (C), the 
Commission’s action may not continue in 
effect for more than 30 business days, in-
cluding extensions.
3300 
ø‘‘(C) An order of the Commission 
under this paragraph (2) may be ex-
tended to continue in effect for more 
than 30 business days if, at the time of 
the extension, the Commission finds that 
the emergency still exists and determines 
that the continuation of the order beyond 
30 business days is necessary in the pub-
lic interest and for the protection of in-
vestors to attain an objective described 
in clause (i), (ii), or (iii) of subparagraph 
(A). In no event shall an order of the 
Commission under this paragraph (2) 
continue in effect for more than 90 cal-
endar days. 
ø‘‘(D) If the actions described in sub-
paragraph (A) involve a security futures 
product, the Commission shall consult 
with and consider the views of the Com-
modity Futures Trading Commission. In 
exercising its authority under this para-
graph, the Commission shall not be re-
quired to comply with the provisions of 
section 553 of title 5, United States Code,
3301 
or with the provisions of section 19(c) of 
this title. 
ø‘‘(E) Notwithstanding the exclusion 
of exempted securities (and markets 
therein) from the Commission’s authority 
under subparagraph (A), the Commission 
may use such authority to take action to 
alter, supplement, suspend, or impose re-
quirements or restrictions with respect to 
clearing agencies for transactions in such 
exempted securities. In taking any action 
under this subparagraph, the Commis-
sion shall consult with and consider the 
views of the Secretary of the Treasury.’’. 
ø(b) CONSULTATION; DEFINITION OF EMER-
GENCY.—Section 12(k) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78l(k)) is further 
amended by striking paragraph (6) and in-
serting the following: 
ø‘‘(6) CONSULTATION.—Prior to taking 
any action described in paragraph (1)(B), 
the Commission shall consult with and 
consider the views of the Secretary of the 
Treasury, Board of Governors of the Fed-
eral Reserve System, and the Commodity
3302 
Futures Trading Commission, unless such 
consultation is impracticable in light of 
the emergency. 
ø‘‘(7) DEFINITIONS.— 
ø‘‘(A) EMERGENCY.—For purposes 
of this subsection, the term ‘emer-
gency’ means— 
ø‘‘(i) a major market disturb-
ance characterized by or consti-
tuting— 
ø‘‘(I) sudden and excessive 
fluctuations 
of 
securities 
prices generally, or a substan-
tial 
threat 
thereof, 
that 
threaten fair and orderly mar-
kets; or 
ø‘‘(II) a substantial disrup-
tion of the safe or efficient op-
eration of the national system 
for clearance and settlement 
of transactions in securities, 
or a substantial threat there-
of; or
3303 
ø‘‘(ii) a major disturbance that 
substantially disrupts, or threat-
ens to substantially disrupt— 
ø‘‘(I) the functioning of se-
curities markets, investment 
companies, or any other sig-
nificant portion or segment of 
the securities markets; or 
ø‘‘(II) the transmission or 
processing of securities trans-
actions. 
ø‘‘(B) SECURITIES
LAWS.—Notwith-
standing section 3(a)(47), for pur-
poses of this subsection, the term ‘se-
curities laws’ does not include the 
Public Utility Holding Company Act 
of 1935 (15 U.S.C. 79a et seq.).’’. 
øSEC. 5083. PARALLEL AUTHORITY OF THE SECRETARY OF 
THE TREASURY WITH RESPECT TO GOVERN-
MENT SECURITIES. 
øSection 15C of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o–5) is amended by 
adding at the end the following new sub-
section:
3304 
ø‘‘(h) EMERGENCY
AUTHORITY.—The Sec-
retary may by order take any action with re-
spect to a matter or action subject to regula-
tion by the Secretary under this section, or 
the rules of the Secretary thereunder, involv-
ing a government security or a market there-
in (or significant portion or segment of that 
market), that the Commission may take under 
section 12(k)(2) of this title with respect to 
transactions in securities (other than exempt-
ed securities) or a market therein (or signifi-
cant portion or segment of that market).’’. 
øSubtitle H—Other Matters 
øCHAPTER 1—PRIVACY MATTERS 
øSEC. 5091. REQUIREMENT THAT AGENCY RULEMAKING 
TAKE INTO CONSIDERATION IMPACTS ON IN-
DIVIDUAL PRIVACY. 
ø(a) SHORT TITLE.—This section may be 
cited as the ‘‘Federal Agency Protection of 
Privacy Act of 2004’’. 
ø(b) IN GENERAL.—Title 5, United States 
Code, is amended by adding after section 553 
the following new section:
3305 
ø‘‘§ 553a. Privacy impact assessment in rulemaking 
ø‘‘(a) INITIAL
PRIVACY
IMPACT
ASSESS-
MENT.— 
ø‘‘(1) IN GENERAL.—Whenever an agen-
cy is required by section 553 of this title, 
or any other law, to publish a general no-
tice of proposed rulemaking for a pro-
posed rule, or publishes a notice of pro-
posed rulemaking for an interpretative 
rule involving the internal revenue laws 
of the United States, and such rule or 
proposed rulemaking pertains to the col-
lection, maintenance, use, or disclosure 
of personally identifiable information 
from 10 or more individuals, other than 
agencies, instrumentalities, or employees 
of the Federal government, the agency 
shall prepare and make available for pub-
lic comment an initial privacy impact as-
sessment that describes the impact of the 
proposed rule on the privacy of individ-
uals. Such assessment or a summary 
thereof shall be signed by the senior 
agency official with primary responsi-
bility for privacy policy and be published 
in the Federal Register at the time of the
3306 
publication of a general notice of pro-
posed rulemaking for the rule. 
ø‘‘(2) CONTENTS.—Each initial privacy 
impact assessment required under this 
subsection shall contain the following: 
ø‘‘(A) A description and analysis 
of the extent to which the proposed 
rule will impact the privacy interests 
of individuals, including the extent to 
which the proposed rule— 
ø‘‘(i) provides notice of the 
collection of personally identifi-
able information, and specifies 
what personally identifiable in-
formation is to be collected and 
how it is to be collected, main-
tained, used, and disclosed; 
ø‘‘(ii) allows access to such in-
formation by the person to whom 
the personally identifiable infor-
mation pertains and provides an 
opportunity to correct inaccura-
cies; 
ø‘‘(iii) prevents such informa-
tion, which is collected for one
3307 
purpose, from being used for an-
other purpose; and 
ø‘‘(iv) provides security for 
such information. 
ø‘‘(B) A description of any signifi-
cant alternatives to the proposed rule 
which accomplish the stated objec-
tives of applicable statutes and which 
minimize any significant privacy im-
pact of the proposed rule on individ-
uals. 
ø‘‘(b) FINAL PRIVACY IMPACT ASSESSMENT.— 
ø‘‘(1) IN GENERAL.—Whenever an agen-
cy promulgates a final rule under section 
553 of this title, after being required by 
that section or any other law to publish a 
general notice of proposed rulemaking, 
or promulgates a final interpretative rule 
involving the internal revenue laws of 
the United States, and such rule or pro-
posed rulemaking pertains to the collec-
tion, maintenance, use, or disclosure of 
personally identifiable information from 
10 or more individuals, other than agen-
cies, instrumentalities, or employees of
3308 
the Federal government, the agency shall 
prepare a final privacy impact assess-
ment, signed by the senior agency official 
with primary responsibility for privacy 
policy. 
ø‘‘(2) CONTENTS.—Each final privacy 
impact assessment required under this 
subsection shall contain the following: 
ø‘‘(A) A description and analysis 
of the extent to which the final rule 
will impact the privacy interests of 
individuals, including the extent to 
which such rule— 
ø‘‘(i) provides notice of the 
collection of personally identifi-
able information, and specifies 
what personally identifiable in-
formation is to be collected and 
how it is to be collected, main-
tained, used, and disclosed; 
ø‘‘(ii) allows access to such in-
formation by the person to whom 
the personally identifiable infor-
mation pertains and provides an
3309 
opportunity to correct inaccura-
cies; 
ø‘‘(iii) prevents such informa-
tion, which is collected for one 
purpose, from being used for an-
other purpose; and 
ø‘‘(iv) provides security for 
such information. 
ø‘‘(B) A summary of any signifi-
cant issues raised by the public com-
ments in response to the initial pri-
vacy impact assessment, a summary 
of the analysis of the agency of such 
issues, 
and 
a 
statement 
of 
any 
changes made in such rule as a result 
of such issues. 
ø‘‘(C) A description of the steps 
the agency has taken to minimize the 
significant privacy impact on individ-
uals consistent with the stated objec-
tives of applicable statutes, including 
a statement of the factual, policy, and 
legal reasons for selecting the alter-
native adopted in the final rule and 
why each one of the other significant
3310 
alternatives to the rule considered by 
the agency which affect the privacy 
interests of individuals was rejected. 
ø‘‘(3) AVAILABILITY
TO
PUBLIC.—The 
agency shall make copies of the final pri-
vacy 
impact 
assessment 
available 
to 
members of the public and shall publish 
in the Federal Register such assessment 
or a summary thereof. 
ø‘‘(c) WAIVERS.— 
ø‘‘(1) EMERGENCIES.—An agency head 
may waive or delay the completion of 
some or all of the requirements of sub-
sections (a) and (b) to the same extent as 
the agency head may, under section 608, 
waive or delay the completion of some or 
all of the requirements of sections 603 
and 604, respectively. 
ø‘‘(2) NATIONAL SECURITY.—An agency 
head may, for national security reasons, 
or to protect from disclosure classified 
information, confidential commercial in-
formation, or information the disclosure 
of which may adversely affect a law en-
forcement effort, waive or delay the com-
3311 
pletion of some or all of the following re-
quirements: 
ø‘‘(A) The requirement of sub-
section (a)(1) to make an assessment 
available for public comment. 
ø‘‘(B) The requirement of sub-
section (a)(1) to have an assessment 
or summary thereof published in the 
Federal Register. 
ø‘‘(C) The requirements of sub-
section (b)(3). 
ø‘‘(d) PROCEDURES
FOR GATHERING COM-
MENTS.—When any rule is promulgated which 
may have a significant privacy impact on in-
dividuals, or a privacy impact on a substan-
tial number of individuals, the head of the 
agency promulgating the rule or the official of 
the agency with statutory responsibility for 
the promulgation of the rule shall assure that 
individuals have been given an opportunity to 
participate in the rulemaking for the rule 
through techniques such as— 
ø‘‘(1) the inclusion in an advance no-
tice of proposed rulemaking, if issued, of 
a statement that the proposed rule may
3312 
have a significant privacy impact on indi-
viduals, or a privacy impact on a substan-
tial number of individuals; 
ø‘‘(2) the publication of a general no-
tice of proposed rulemaking in publica-
tions of national circulation likely to be 
obtained by individuals; 
ø‘‘(3) the direct notification of inter-
ested individuals; 
ø‘‘(4) the conduct of open conferences 
or public hearings concerning the rule 
for individuals, including soliciting and 
receiving comments over computer net-
works; and 
ø‘‘(5) the adoption or modification of 
agency procedural rules to reduce the 
cost or complexity of participation in the 
rulemaking by individuals. 
ø‘‘(e) PERIODIC REVIEW OF RULES.— 
ø‘‘(1) IN GENERAL.—Each agency shall 
carry out a periodic review of the rules 
promulgated by the agency that have a 
significant privacy impact on individuals, 
or a privacy impact on a substantial num-
ber of individuals. Under such periodic
3313 
review, the agency shall determine, for 
each such rule, whether the rule can be 
amended or rescinded in a manner that 
minimizes any such impact while remain-
ing in accordance with applicable stat-
utes. For each such determination, the 
agency shall consider the following fac-
tors: 
ø‘‘(A) The continued need for the 
rule. 
ø‘‘(B) The nature of complaints or 
comments received from the public 
concerning the rule. 
ø‘‘(C) The complexity of the rule. 
ø‘‘(D) The extent to which the rule 
overlaps, duplicates, or conflicts with 
other Federal rules, and, to the extent 
feasible, with State and local govern-
mental rules. 
ø‘‘(E) The length of time since the 
rule was last reviewed under this 
subsection. 
ø‘‘(F) The degree to which tech-
nology, economic conditions, or other 
factors have changed in the area af-
3314 
fected by the rule since the rule was 
last reviewed under this subsection. 
ø‘‘(2) PLAN
REQUIRED.—Each agency 
shall carry out the periodic review re-
quired by paragraph (1) in accordance 
with a plan published by such agency in 
the Federal Register. Each such plan 
shall provide for the review under this 
subsection of each rule promulgated by 
the agency not later than 10 years after 
the date on which such rule was pub-
lished as the final rule and, thereafter, 
not later than 10 years after the date on 
which such rule was last reviewed under 
this subsection. The agency may amend 
such plan at any time by publishing the 
revision in the Federal Register. 
ø‘‘(3) 
ANNUAL
PUBLICATION.—Each 
year, each agency shall publish in the 
Federal Register a list of the rules to be 
reviewed by such agency under this sub-
section during the following year. The 
list shall include a brief description of 
each such rule and the need for and legal 
basis of such rule and shall invite public
3315 
comment upon the determination to be 
made under this subsection with respect 
to such rule. 
ø‘‘(f) JUDICIAL REVIEW.— 
ø‘‘(1) IN GENERAL.—For any rule sub-
ject to this section, an individual who is 
adversely affected or aggrieved by final 
agency action is entitled to judicial re-
view of agency compliance with the re-
quirements of subsections (b) and (c) in 
accordance with chapter 7. Agency com-
pliance with subsection (d) shall be judi-
cially reviewable in connection with judi-
cial review of subsection (b). 
ø‘‘(2) JURISDICTION.—Each court hav-
ing jurisdiction to review such rule for 
compliance with section 553, or under 
any other provision of law, shall have ju-
risdiction to review any claims of non-
compliance with subsections (b) and (c) 
in accordance with chapter 7. Agency 
compliance with subsection (d) shall be 
judicially reviewable in connection with 
judicial review of subsection (b). 
ø‘‘(3) LIMITATIONS.—
3316 
ø‘‘(A) An individual may seek such 
review during the period beginning 
on the date of final agency action and 
ending 1 year later, except that 
where a provision of law requires 
that an action challenging a final 
agency action be commenced before 
the expiration of 1 year, such lesser 
period shall apply to an action for ju-
dicial review under this subsection. 
ø‘‘(B) In the case where an agency 
delays the issuance of a final privacy 
impact assessment pursuant to sub-
section (c), an action for judicial re-
view under this section shall be filed 
not later than— 
ø‘‘(i) 1 year after the date the 
assessment is made available to 
the public; or 
ø‘‘(ii) where a provision of law 
requires 
that 
an 
action 
chal-
lenging a final agency regulation 
be commenced before the expira-
tion of the 1-year period, the 
number of days specified in such
3317 
provision of law that is after the 
date 
the 
assessment 
is 
made 
available to the public. 
ø‘‘(4) RELIEF.—In granting any relief 
in an action under this subsection, the 
court shall order the agency to take cor-
rective action consistent with this section 
and chapter 7, including, but not limited 
to— 
ø‘‘(A) remanding the rule to the 
agency; and 
ø‘‘(B) deferring the enforcement 
of the rule against individuals, unless 
the court finds that continued en-
forcement of the rule is in the public 
interest. 
ø‘‘(5) RULE
OF
CONSTRUCTION.—Noth-
ing in this subsection shall be construed 
to limit the authority of any court to stay 
the effective date of any rule or provision 
thereof under any other provision of law 
or to grant any other relief in addition to 
the requirements of this subsection. 
ø‘‘(6) RECORD
OF
AGENCY
ACTION.—In 
an action for the judicial review of a rule,
3318 
the privacy impact assessment for such 
rule, including an assessment prepared 
or corrected pursuant to paragraph (4), 
shall constitute part of the entire record 
of agency action in connection with such 
review. 
ø‘‘(7) 
EXCLUSIVITY.—Compliance 
or 
noncompliance by an agency with the 
provisions of this section shall be subject 
to judicial review only in accordance 
with this subsection. 
ø‘‘(8) SAVINGS CLAUSE.—Nothing in this 
subsection bars judicial review of any 
other impact statement or similar assess-
ment required by any other law if judi-
cial review of such statement or assess-
ment is otherwise permitted by law. 
ø‘‘(g) DEFINITION.—For purposes of this 
section, the term ‘personally identifiable in-
formation’ means information that can be 
used to identify an individual, including such 
individual’s name, address, telephone num-
ber, photograph, social security number or 
other identifying information. It includes in-
3319 
formation about such individual’s medical or 
financial condition.’’. 
ø(c) PERIODIC REVIEW TRANSITION PROVI-
SIONS.— 
ø(1) INITIAL
PLAN.—For each agency, 
the plan required by subsection (e) of sec-
tion 553a of title 5, United States Code (as 
added by subsection (a)), shall be pub-
lished not later than 180 days after the 
date of the enactment of this Act. 
ø(2) In the case of a rule promulgated 
by an agency before the date of the enact-
ment of this Act, such plan shall provide 
for the periodic review of such rule be-
fore the expiration of the 10-year period 
beginning on the date of the enactment of 
this Act. For any such rule, the head of 
the agency may provide for a 1-year ex-
tension of such period if the head of the 
agency, before the expiration of the pe-
riod, certifies in a statement published in 
the Federal Register that reviewing such 
rule before the expiration of the period is 
not feasible. The head of the agency may 
provide for additional 1-year extensions
3320 
of the period pursuant to the preceding 
sentence, but in no event may the period 
exceed 15 years. 
ø(d) 
CONGRESSIONAL
REVIEW.—Section 
801(a)(1)(B) of title 5, United States Code, is 
amended— 
ø(1) by redesignating clauses (iii) and 
(iv) as clauses (iv) and (v), respectively; 
and 
ø(2) by inserting after clause (ii) the 
following new clause: 
ø‘‘(iii) the agency’s actions relevant to 
section 553a;’’. 
ø(e) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 5 of title 
5, United States Code, is amended by adding 
after the item relating to section 553 the fol-
lowing new item: 
ø‘‘553a. Privacy impact assessment in rulemaking.’’. 
øSEC. 5092. CHIEF PRIVACY OFFICERS FOR AGENCIES WITH 
LAW ENFORCEMENT OR ANTI-TERRORISM 
FUNCTIONS. 
ø(a) IN GENERAL.—There shall be within 
each Federal agency with law enforcement or 
anti-terrorism functions a chief privacy offi-
cer, who shall have primary responsibility
3321 
within that agency for privacy policy. The 
agency chief privacy officer shall be des-
ignated by the head of the agency. 
ø(b) RESPONSIBILITIES.—The responsibil-
ities of each agency chief privacy officer shall 
include— 
ø(1) ensuring that the use of tech-
nologies sustains, and does not erode, pri-
vacy protections relating to the use, col-
lection, and disclosure of personally iden-
tifiable information; 
ø(2) ensuring that personally identifi-
able information contained in systems of 
records is handled in full compliance 
with fair information practices as set out 
in section 552a of title 5, United States 
Code; 
ø(3) evaluating legislative and regu-
latory proposals involving collection, use, 
and disclosure of personally identifiable 
information by the Federal Government; 
ø(4) conducting a privacy impact as-
sessment of proposed rules of the agency 
on the privacy of personally identifiable 
information, including the type of person-
3322 
ally identifiable information collected 
and the number of people affected; 
ø(5) preparing and submitting a re-
port to Congress on an annual basis on 
activities of the agency that affect pri-
vacy, including complaints of privacy vio-
lations, implementation of section 552a of 
title 5, United States Code, internal con-
trols, and other relevant matters; 
ø(6) ensuring that the agency protects 
personally identifiable information and 
information systems from unauthorized 
access, use, disclosure, disruption, modi-
fication, or destruction in order to pro-
vide— 
ø(A) 
integrity, 
which 
means 
guarding against improper informa-
tion modification or destruction, and 
includes ensuring information non-
repudiation and authenticity; 
ø(B) confidentially, which means 
preserving authorized restrictions on 
access 
and 
disclosure, 
including 
means for protecting personal pri-
vacy and proprietary information;
3323 
ø(C) availability, which means en-
suring timely and reliable access to 
and use of that information; and 
ø(D) authentication, which means 
utilizing digital credentials to assure 
the identity of users and validate 
their access; and 
ø(7) advising the head of the agency 
and the Director of the Office of Manage-
ment and Budget on information security 
and privacy issues pertaining to Federal 
Government information systems. 
øSEC. 5093. DATA-MINING REPORT. 
ø(a) DEFINITIONS.—In this section: 
ø(1) DATA-MINING.—The term ‘‘data- 
mining’’ means a query or search or other 
analysis of 1 or more electronic data-
bases, where— 
ø(A) at least 1 of the databases 
was obtained from or remains under 
the control of a non-Federal entity, or 
the information was acquired ini-
tially by another department or agen-
cy of the Federal Government for
3324 
purposes other than intelligence or 
law enforcement; 
ø(B) the search does not use a 
specific individual’s personal identi-
fiers to acquire information con-
cerning that individual; and 
ø(C) a department or agency of 
the 
Federal 
Government 
is 
con-
ducting the query or search or other 
analysis to find a pattern indicating 
terrorist or other criminal activity. 
ø(2) DATABASE.—The term ‘‘database’’ 
does not include telephone directories, 
information publicly available via the 
Internet or available by any other means 
to any member of the public without pay-
ment of a fee, or databases of judicial and 
administrative opinions. 
ø(b) REPORTS
ON
DATA-MINING
ACTIVI-
TIES.— 
ø(1) REQUIREMENT
FOR
REPORT.—The 
head of each department or agency of the 
Federal Government that is engaged in 
any activity to use or develop data-min-
ing technology shall each submit a public
3325 
report to Congress on all such activities 
of the department or agency under the 
jurisdiction of that official. 
ø(2) CONTENT
OF
REPORT.—A report 
submitted under paragraph (1) shall in-
clude, for each activity to use or develop 
data-mining technology that is required 
to be covered by the report, the following 
information: 
ø(A) A thorough description of the 
data-mining technology and the data 
that will be used. 
ø(B) A thorough discussion of the 
plans for the use of such technology 
and the target dates for the deploy-
ment of the data-mining technology. 
ø(C) An assessment of the likely 
efficacy 
of 
the 
data-mining 
tech-
nology in providing accurate and val-
uable information consistent with the 
stated plans for the use of the tech-
nology. 
ø(D) An assessment of the likely 
impact of the implementation of the
3326 
data-mining technology on privacy 
and civil liberties. 
ø(E) A list and analysis of the 
laws and regulations that govern the 
information to be collected, reviewed, 
gathered, and analyzed with the data- 
mining technology and a description 
of any modifications of such laws that 
will be required to use the informa-
tion in the manner proposed under 
such program. 
ø(F) A thorough discussion of the 
policies, procedures, and guidelines 
that are to be developed and applied 
in the use of such technology for 
data-mining in order to— 
ø(i) protect the privacy and 
due process rights of individuals; 
and 
ø(ii) ensure that only accurate 
information is collected and used. 
ø(G) A thorough discussion of the 
procedures 
allowing 
individuals 
whose personal information will be 
used in the data-mining technology to
3327 
be informed of the use of their per-
sonal information and what proce-
dures are in place to allow for indi-
viduals to opt out of the technology, 
and, if no such procedures are in 
place, a thorough explanation as to 
why not. 
ø(H) Any necessary classified in-
formation in an annex that shall be 
available to the Committee on Gov-
ernmental Affairs, the Committee on 
the Judiciary, and the Committee on 
Appropriations of the Senate and the 
Committee on Homeland Security, 
the Committee on the Judiciary, and 
the Committee on Appropriations of 
the House of Representatives. 
ø(3) TIME
FOR
REPORT.—Each report 
required under paragraph (1) shall be— 
ø(A) submitted not later than 90 
days after the date of the enactment 
of this Act; and 
ø(B) updated once a year and in-
clude any new data-mining tech-
nologies.
3328 
øSEC. 5094. PRIVACY AND CIVIL LIBERTIES OVERSIGHT 
BOARD. 
ø(a) IN
GENERAL.—There is established 
within the Executive Branch an Independent 
Privacy and Civil Liberties Oversight Board 
(referred to in this section as the ‘‘Board’’). 
ø(b) FINDINGS.—Consistent with the report 
of the National Commission on Terrorist At-
tacks Upon the United States, Congress 
makes the following findings: 
ø(1) In conducting the war on ter-
rorism, the Government may need addi-
tional powers and may need to enhance 
the use of its existing powers. 
ø(2) This shift of power and authority 
to the Government calls for an enhanced 
system of checks and balances to protect 
the precious liberties that are vital to our 
way of life and to ensure that the Govern-
ment uses its powers for the purposes for 
which the powers were given. 
ø(c) PURPOSE.—The Board shall— 
ø(1) analyze and review actions the 
Executive Branch takes to protect the 
Nation from terrorism as such actions 
pertain to privacy or civil liberties; and
3329 
ø(2) ensure that privacy and civil lib-
erties concerns are appropriately consid-
ered in the development and implementa-
tion of laws, regulations, and policies re-
lated to efforts to protect the Nation 
against terrorism. 
ø(d) FUNCTIONS.— 
ø(1) ADVICE
AND
COUNSEL
ON
POLICY 
DEVELOPMENT
AND
IMPLEMENTATION.—The 
Board shall— 
ø(A) review the privacy and civil 
liberties implications of proposed leg-
islation, regulations, and policies re-
lated to efforts to protect the Nation 
from terrorism, including the devel-
opment and adoption of information 
sharing guidelines under section 892 
of the Homeland Security Act; 
ø(B) review the privacy and civil 
liberties implications of the imple-
mentation of new and existing legisla-
tion, regulations, and policies related 
to efforts to protect the Nation from 
terrorism, including the implementa-
tion of information sharing guide-
3330 
lines under section 892 of the Home-
land Security Act; 
ø(C) advise the President and 
Federal executive departments and 
agencies to ensure that privacy and 
civil liberties are appropriately con-
sidered in the development and im-
plementation of such legislation, reg-
ulations, policies, and guidelines; and 
ø(D) in providing advice on pro-
posals to retain or enhance a par-
ticular governmental power, consider 
whether the executive department or 
agency has explained— 
ø(i) that the power actually 
materially enhances security; and 
ø(ii) that there is adequate su-
pervision of the executive’s use of 
the power to ensure protection of 
privacy and civil liberties. 
ø(2) OVERSIGHT.—The Board shall con-
tinually review— 
ø(A) the regulations, policies, and 
procedures and the implementation 
of the regulations, policies, proce-
3331 
dures, and related laws of Federal ex-
ecutive departments and agencies to 
ensure that privacy and civil liberties 
are protected; 
ø(B) 
the 
information 
sharing 
practices of Federal executive depart-
ments and agencies to determine 
whether they appropriately protect 
privacy and civil liberties and adhere 
to the information sharing guidelines 
promulgated under section 892 of the 
Homeland Security Act and to other 
governing laws, regulations, and poli-
cies regarding privacy and civil lib-
erties; and 
ø(C) other actions by the Execu-
tive Branch related to efforts to pro-
tect the Nation from terrorism to de-
termine whether such actions— 
ø(i) appropriately protect pri-
vacy and civil liberties; and 
ø(ii) are consistent with gov-
erning laws, regulations, and poli-
cies regarding privacy and civil 
liberties.
3332 
ø(3) RELATIONSHIP WITH PRIVACY OFFI-
CERS.—The Board shall— 
ø(A) review and assess reports 
and other information from privacy 
officers described in section 5092; 
ø(B) when appropriate, make rec-
ommendations to such privacy offi-
cers regarding their activities; and 
ø(C) when appropriate, coordi-
nate the activities of such privacy of-
ficers on relevant interagency mat-
ters. 
ø(4) TESTIMONY.—The Members of the 
Board shall appear and testify before 
Congress upon request. 
ø(e) REPORTS.— 
ø(1) IN GENERAL.—The Board shall— 
ø(A) receive and review reports 
from privacy and civil liberties offi-
cers described in section 5092(b)(5); 
and 
ø(B) periodically submit, not less 
than semiannually, reports to Con-
gress and the President.
3333 
ø(2) CONTENTS.—Not less than 2 re-
ports submitted each year under para-
graph (1)(B) shall include— 
ø(A) a description of the major ac-
tivities of the Board during the rel-
evant period; and 
ø(B) information on the findings, 
conclusions, and recommendations of 
the Board resulting from its advice 
and oversight functions under sub-
section (d). 
ø(f) INFORMING
THE PUBLIC.—The Board 
shall hold public hearings, release public re-
ports, and otherwise inform the public of its 
activities, as appropriate and in a manner 
consistent with the protection of classified in-
formation, applicable law, and national secu-
rity. 
ø(g) ACCESS TO INFORMATION.— 
ø(1) 
AUTHORIZATION.—If 
determined 
by the Board to be necessary to carry out 
its responsibilities under this section, the 
Board may— 
ø(A) secure directly from any Fed-
eral executive department or agency,
3334 
or any Federal officer or employee, 
all relevant records, reports, audits, 
reviews, documents, papers, or rec-
ommendations, 
including 
classified 
information consistent with applica-
ble law; 
ø(B) interview, take statements 
from, or take public testimony from 
personnel of any Federal executive 
department or agency or any Federal 
officer or employee; and 
ø(C) request information or assist-
ance from any State, tribal, or local 
government. 
ø(2) 
OBTAINING
OFFICIAL
INFORMA-
TION.— 
ø(A) REQUIREMENT
TO
FURNISH.— 
Except as provided in subparagraph 
(B), if the Board submits a request to 
a Federal department or agency for 
information necessary to enable the 
Board to carry out this section, the 
head of such department or agency 
shall furnish that information to the 
Board.
3335 
ø(B) EXCEPTION FOR NATIONAL SE-
CURITY.—If the National Intelligence 
Director, in consultation with the At-
torney General, determines that it is 
necessary to withhold requested in-
formation from disclosure to protect 
the national security interests of the 
United States, the department or 
agency head shall not furnish that in-
formation to the Board. 
ø(h) MEMBERSHIP.— 
ø(1) MEMBERS.—The Board shall be 
composed of a chairman and 4 additional 
members, who shall be appointed by the 
President, by and with the advice and 
consent of the Senate. 
ø(2) POLITICAL AFFILIATION.—Not more 
than 3 members of the Board shall be of 
the same political party. 
ø(3) QUALIFICATIONS.—Members of the 
Board shall be selected solely on the 
basis of their professional qualifications, 
achievements, public stature, and rel-
evant experience, and without regard to 
political 
affiliation. 
Members 
of 
the
3336 
Board shall also have extensive experi-
ence in the areas of privacy and civil 
rights and liberties. 
ø(4) INCOMPATIBLE
OFFICE.—An indi-
vidual appointed to the Board may not, 
while serving on the Board, be an elected 
official, an officer, or an employee of the 
Federal Government, other than in the 
capacity as a member of the Board. 
ø(5) 
TERM.—Each 
member 
of 
the 
Board shall serve a term of six years, ex-
cept that— 
ø(A) a member appointed to a 
term of office after the commence-
ment of such term may serve under 
such appointment only for the re-
mainder of such term; 
ø(B) upon the expiration of the 
term of office of a member, the mem-
ber shall continue to serve until the 
member’s successor has been ap-
pointed and qualified, except that no 
member may serve under this sub-
paragraph—
3337 
ø(i) for more than 60 days 
when Congress is in session un-
less a nomination to fill the va-
cancy shall have been submitted 
to the Senate; or 
ø(ii) after the adjournment 
sine die of the session of the Sen-
ate in which such nomination is 
submitted; and 
ø(C) the members initially ap-
pointed under this subsection shall 
serve terms of two, three, four, five, 
and six years, respectively, from the 
effective date of this Act, with the 
term of each such member to be des-
ignated by the President. 
ø(i) QUORUM AND MEETINGS.—After its ini-
tial meeting, the Board shall meet upon the 
call of the chairman or a majority of its mem-
bers. Three members of the Board shall con-
stitute a quorum. 
ø(j) 
COMPENSATION
AND
TRAVEL
EX-
PENSES.— 
ø(1) COMPENSATION.—