IB 
Union Calendar No. 80
108TH CONGRESS 
1ST SESSION H. R. 2417
[Report No. 108–163] 
To authorize appropriations for fiscal year 2004 for intelligence and intel-
ligence-related activities of the United States Government, the Commu-
nity Management Account, and the Central Intelligence Agency Retire-
ment and Disability System, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 11, 2003
Mr. GOSS introduced the following bill; which was referred to the Select 
Committee on Intelligence (Permanent Select) 
JUNE 18, 2003
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 11, 2003] 
A BILL 
To authorize appropriations for fiscal year 2004 for intel-
ligence and intelligence-related activities of the United 
States Government, the Community Management Ac-
count, and the Central Intelligence Agency Retirement 
and Disability System, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘In-
telligence Authorization Act for Fiscal Year 2004’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—INTELLIGENCE ACTIVITIES 
Sec. 101. Authorization of appropriations. 
Sec. 102. Classified schedule of authorizations. 
Sec. 103. Personnel ceiling adjustments. 
Sec. 104. Intelligence Community Management Account. 
Sec. 105. Intelligence elements of the Department of the Treasury. 
TITLE II—CENTRAL INTELLIGENCE AGENCY RETIREMENT AND 
DISABILITY SYSTEM 
Sec. 201. Authorization of appropriations. 
TITLE III—GENERAL PROVISIONS 
Subtitle A—Recurring General Provisions 
Sec. 301. Increase in employee compensation and benefits authorized by law. 
Sec. 302. Restriction on conduct of intelligence activities. 
Subtitle B—Intelligence 
Sec. 311. Modification of notice and wait requirements on projects to construct 
or improve intelligence community facilities. 
Subtitle C—Counterintelligence 
Sec. 321. Counterintelligence initiatives for the intelligence community. 
Subtitle D—Other Matters 
Sec. 331. Extension of suspension of reorganization of Diplomatic Telecommuni-
cations Service Program Office. 
Sec. 332. Modifications of authorities on explosive materials. 
Sec. 333. Modification of prohibition on the naturalization of certain persons. 
Sec. 334. Modification to definition of financial institution in the Right to Fi-
nancial Privacy Act. 
Sec. 335. Procedural requirements for Central Intelligence Agency relating to 
products of Federal prison industries. 
Sec. 336. Improvement of information sharing among federal, State, and local 
government officials.
Subtitle E—Reports and Technical Amendments 
Sec. 341. Extension of deadline for final report of the National Commission for 
the Review of the Research and Development Programs of the 
United States Intelligence Community. 
Sec. 342. Modification of various reports required of intelligence community ele-
ments. 
Sec. 343. Technical amendments. 
Sec. 344. Report on lessons learned from military operations in Iraq. 
TITLE IV—CENTRAL INTELLIGENCE AGENCY 
Sec. 401. Protection from tort liability for certain Central Intelligence Agency 
personnel. 
Sec. 402. Repeal of limitation on use of funds in Central Services Working Cap-
ital Fund. 
TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS 
Sec. 501. Use of funds for counterdrug and counterterrorism activities for 
Colombia. 
Sec. 502. Authority to provide living quarters for certain students in cooperative 
and summer education programs of the National Security 
Agency. 
Sec. 503. Authority for intelligence community elements of Department of Defense 
to award personal service contracts. 
Sec. 504. Protection of certain National Security Agency personnel from tort li-
ability. 
Sec. 505. Measurement and signatures intelligence program.
TITLE I—INTELLIGENCE 
ACTIVITIES 
SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for the conduct of the intelligence and intel-
ligence-related activities of the following elements of the 
United States Government: 
(1) The Central Intelligence Agency. 
(2) The Department of Defense. 
(3) The Defense Intelligence Agency. 
(4) The National Security Agency. 
(5) The National Reconnaissance Office.
(6) The National Imagery and Mapping Agency. 
(7) The Department of the Army, the Depart-
ment of the Navy, and the Department of the Air 
Force. 
(8) The Department of State. 
(9) The Department of the Treasury. 
(10) The Department of Energy. 
(11) The Department of Justice. 
(12) The Federal Bureau of Investigation. 
(13) The Department of Homeland Security. 
(14) The Coast Guard. 
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS. 
(a) SPECIFICATIONS OF AMOUNTS AND PERSONNEL 
CEILINGS.—The amounts authorized to be appropriated 
under section 101, and the authorized personnel ceilings as 
of September 30, 2004, for the conduct of the intelligence 
and intelligence-related activities of the elements listed in 
such section, are those specified in the classified Schedule 
of Authorizations prepared to accompany the bill 
H.R. 2417 of the One Hundred Eighth Congress. 
(b) AVAILABILITY OF CLASSIFIED SCHEDULE OF AU-
THORIZATIONS.—The Schedule of Authorizations shall be 
made available to the Committees on Appropriations of the 
Senate and House of Representatives and to the President. 
The President shall provide for suitable distribution of the
Schedule, or of appropriate portions of the Schedule, within 
the executive branch. 
SEC. 103. PERSONNEL CEILING ADJUSTMENTS. 
(a) AUTHORITY FOR ADJUSTMENTS.—With the ap-
proval of the Director of the Office of Management and 
Budget, the Director of Central Intelligence may authorize 
employment of civilian personnel in excess of the number 
authorized for fiscal year 2004 under section 102 when the 
Director of Central Intelligence determines that such action 
is necessary to the performance of important intelligence 
functions, except that the number of personnel employed in 
excess of the number authorized under such section may not, 
for any element of the intelligence community, exceed 2 per-
cent of the number of civilian personnel authorized under 
such section for such element. 
(b) NOTICE TO INTELLIGENCE COMMITTEES.—The Di-
rector of Central Intelligence shall notify promptly the Per-
manent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of 
the Senate whenever the Director exercises the authority 
granted by this section. 
SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT AC-
COUNT. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for the Intelligence Commu-
nity Management Account of the Director of Central Intel-
ligence for fiscal year 2004 the sum of $192,640,000. Within 
such amount, funds identified in the classified Schedule of 
Authorizations referred to in section 102(a) for the Ad-
vanced Research and Development Committee shall remain 
available until September 30, 2005. 
(b) AUTHORIZED PERSONNEL LEVELS.—The elements 
within the Intelligence Community Management Account of 
the Director of Central Intelligence are authorized 320 full-
time personnel as of September 30, 2004. Personnel serving 
in such elements may be permanent employees of the Intel-
ligence Community Management Account or personnel de-
tailed from other elements of the United States Government. 
(c) CLASSIFIED AUTHORIZATIONS.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—In 
addition to amounts authorized to be appropriated 
for the Intelligence Community Management Account 
by subsection (a), there are also authorized to be ap-
propriated for the Intelligence Community Manage-
ment Account for fiscal year 2004 such additional 
amounts as are specified in the classified Schedule of 
Authorizations referred to in section 102(a). Such ad-
ditional amounts shall remain available until Sep-
tember 30, 2004.
(2) AUTHORIZATION OF PERSONNEL.—In addi-
tion to the personnel authorized by subsection (b) for 
elements of the Intelligence Community Management 
Account as of September 30, 2004, there are hereby 
authorized such additional personnel for such ele-
ments as of that date as are specified in the classified 
Schedule of Authorizations. 
(d) REIMBURSEMENT.—Except as provided in section 
113 of the National Security Act of 1947 (50 U.S.C. 404h), 
during fiscal year 2004 any officer or employee of the 
United States or a member of the Armed Forces who is de-
tailed to the staff of the Intelligence Community Manage-
ment Account from another element of the United States 
Government shall be detailed on a reimbursable basis, ex-
cept that any such officer, employee, or member may be de-
tailed on a nonreimbursable basis for a period of less than 
one year for the performance of temporary functions as re-
quired by the Director of Central Intelligence. 
(e) NATIONAL DRUG INTELLIGENCE CENTER.—
(1) IN GENERAL.—Of the amount authorized to 
be appropriated in subsection (a), $34,248,000 shall 
be available for the National Drug Intelligence Cen-
ter. Within such amount, funds provided for research, 
development, testing, and evaluation purposes shall 
remain available until September 30, 2005, and funds
provided for procurement purposes shall remain 
available until September 30, 2006. 
(2) TRANSFER OF FUNDS.—The Director of Cen-
tral Intelligence shall transfer to the Attorney General 
funds available for the National Drug Intelligence 
Center under paragraph (1). The Attorney General 
shall utilize funds so transferred for the activities of 
the National Drug Intelligence Center. 
(3) LIMITATION.—Amounts available for the Na-
tional Drug Intelligence Center may not be used in 
contravention of the provisions of section 103(d)(1) of 
the National Security Act of 1947 (50 U.S.C. 403–
3(d)(1)). 
(4) AUTHORITY.—Notwithstanding any other 
provision of law, the Attorney General shall retain 
full authority over the operations of the National 
Drug Intelligence Center.
SEC. 105. INTELLIGENCE ELEMENTS OF THE DEPARTMENT 
OF THE TREASURY. 
(a) IN GENERAL.—(1) Title I of the National Security 
Act of 1947 (50 U.S.C. 402 et seq.) is amended by adding 
at the end the following new section: 
‘‘BUREAU OF INTELLIGENCE AND ENFORCEMENT OF THE 
DEPARTMENT OF THE TREASURY 
‘‘SEC. 119. (a) IN GENERAL.—There is within the De-
partment of the Treasury a Bureau of Intelligence and En-
forcement headed by an Assistant Secretary for Intelligence 
and Enforcement, who shall be appointed by the President, 
by and with the advice and consent of the Senate. 
‘‘(b) RESPONSIBILITIES.—(1) The Assistant Secretary 
for Intelligence and Enforcement shall oversee and coordi-
nate functions of the Bureau of Intelligence and Enforce-
ment. 
‘‘(2) The Assistant Secretary shall report directly to 
the Secretary of the Treasury. 
‘‘(c) COMPOSITION OF BUREAU.—The Bureau of Intel-
ligence and Enforcement shall consist of the following of-
fices: 
‘‘(1) The Office of Intelligence Support. 
‘‘(2) The Office of Foreign Assets Control. 
‘‘(3) The Financial Crimes Enforcement Net-
work. 
‘‘(4) Such other offices as the Assistant Secretary 
may establish.’’. 
(2) The table of contents contained in the first section 
of such Act is amended by inserting after the item relating 
to section 118 the following new item:
‘‘Sec. 119. Bureau of Intelligence and Enforcement of the Department of the 
Treasury.’’.
(b) CONSULTATION WITH DCI IN APPOINTMENT OF AS-
SISTANT SECRETARY FOR INTELLIGENCE AND ENFORCE-
MENT.—Section 106(b)(2) of such Act (50 U.S.C. 403–
6(b)(2)) is amended by adding at the end the following new 
subparagraph: 
‘‘(E) The Assistant Secretary for Intelligence and 
Enforcement.’’. 
(c) CONFORMING AMENDMENTS.—(1) Section 3(4) of 
such Act (50 U.S.C. 401a(4)) is amended—
(A) by striking ‘‘the Department of the Treas-
ury,’’ in subparagraph (H); 
(B) by striking ‘‘and’’ at the end of subpara-
graph (J); 
(C) by redesignating subparagraph (K) as sub-
paragraph (L); and 
(D) by inserting after subparagraph (J) the fol-
lowing new subparagraph: 
‘‘(K) the Bureau of Intelligence and En-
forcement of the Department of the Treasury; 
and’’. 
(2) Section 5315 of title 5, United States Code, is 
amended in the item relating to Assistant Secretaries of the 
Treasury by striking ‘‘(7)’’ and inserting ‘‘(8)’’.
TITLE 
II—CENTRAL 
INTEL-
LIGENCE 
AGENCY 
RETIRE-
MENT AND DISABILITY SYS-
TEM 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated for the Central 
Intelligence Agency Retirement and Disability Fund for fis-
cal year 2004 the sum of $226,400,000. 
TITLE III—GENERAL 
PROVISIONS 
Subtitle A—Recurring General 
Provisions 
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND 
BENEFITS AUTHORIZED BY LAW. 
Appropriations authorized by this Act for salary, pay, 
retirement, and other benefits for Federal employees may 
be increased by such additional or supplemental amounts 
as may be necessary for increases in such compensation or 
benefits authorized by law. 
SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE 
ACTIVITIES. 
The authorization of appropriations by this Act shall 
not be deemed to constitute authority for the conduct of any 
intelligence activity which is not otherwise permitted under
the Constitution or authorized pursuant to the laws of the 
United States. 
Subtitle B—Intelligence 
SEC. 311. MODIFICATION OF NOTICE AND WAIT REQUIRE-
MENTS ON PROJECTS TO CONSTRUCT OR IM-
PROVE INTELLIGENCE COMMUNITY FACILI-
TIES. 
(a) INCREASE OF THRESHOLDS FOR NOTICE.—Section 
602(a) of the Intelligence Authorization Act for Fiscal Year 
1995 (Public Law 103–359; 108 Stat. 3432; 50 U.S.C. 403–
2b(a)) is amended—
(1) by striking ‘‘$750,000’’ each place it appears 
and inserting ‘‘$5,000,000’’; 
(2) by striking ‘‘$500,000’’ each place it appears 
and inserting ‘‘$1,000,000’’; and 
(3) in paragraph (2), as amended by paragraph 
(2) of this subsection, by inserting after ‘‘$1,000,000’’ 
the second place it appears, the following: ‘‘but less 
than $5,000,000’’. 
(b) NOTICE AND WAIT REQUIREMENTS FOR EMER-
GENCY PROJECTS.—Section 602(b)(2) of the Intelligence 
Authorization Act for Fiscal Year 1995 (Public Law 103–
359; 108 Stat. 3432; 50 U.S.C. 403–2b(b)(2)) is amended—
(1) in the third sentence, by striking ‘‘21-day’’ 
and inserting ‘‘7-day’’; and,
mitted a crime of violence in the presence of such per-
sonnel. 
‘‘(2) In this subsection, the term ‘crime of violence’ has 
the meaning given that term in section 16 of title 18, 
United States Code.’’. 
(b) CONSTRUCTION.—Subsection (d) of section 15, as 
added by subsection (a), shall not be construed as affecting 
the authorities of the Attorney General under the Federal 
Employees Liability Reform and Tort Compensation Act 
of 1988 (Public Law 100–694; 28 U.S.C. 2671, 2674, 
2679(b), 2679(d)). 
SEC. 402. REPEAL OF LIMITATION ON USE OF FUNDS IN 
CENTRAL 
SERVICES 
WORKING 
CAPITAL 
FUND. 
Section 21(f)(2) of the Central Intelligence Agency Act 
of 1949 (50 U.S.C. 403u(f)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘(A) Sub-
ject to subparagraph (B), the Director’’ and inserting 
‘‘The Director’’; and 
(2) by striking subparagraph (B).