II 
107TH CONGRESS 
2D SESSION 
H. R. 2458
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 15, 2002
Received 
AN ACT 
To enhance the management and promotion of electronic 
Government services and processes by establishing a Fed-
eral Chief Information Officer within the Office of Man-
agement and Budget, and by establishing a broad frame-
work of measures that require using Internet-based infor-
mation technology to enhance citizen access to Govern-
ment information and services, and for other purposes.
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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 ‘‘E-
Government Act of 2002’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Findings and purposes. 
TITLE I—OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC 
GOVERNMENT SERVICES 
Sec. 101. Management and promotion of electronic government services. 
Sec. 102. Conforming amendments. 
TITLE II—FEDERAL MANAGEMENT AND PROMOTION OF 
ELECTRONIC GOVERNMENT SERVICES 
Sec. 201. Definitions. 
Sec. 202. Federal agency responsibilities. 
Sec. 203. Compatibility of executive agency methods for use and acceptance of 
electronic signatures. 
Sec. 204. Federal Internet portal. 
Sec. 205. Federal courts. 
Sec. 206. Regulatory agencies. 
Sec. 207. Accessibility, usability, and preservation of government information. 
Sec. 208. Privacy provisions. 
Sec. 209. Federal information technology workforce development. 
Sec. 210. Share-in-savings initiatives. 
Sec. 211. Authorization for acquisition of information technology by State and 
local governments through Federal supply schedules. 
Sec. 212. Integrated reporting study and pilot projects. 
Sec. 213. Community technology centers. 
Sec. 214. Enhancing crisis management through advanced information tech-
nology. 
Sec. 215. Disparities in access to the Internet. 
Sec. 216. Common protocols for geographic information systems. 
TITLE III—INFORMATION SECURITY 
Sec. 301. Information security. 
Sec. 302. Management of information technology. 
Sec. 303. National Institute of Standards and Technology. 
Sec. 304. Information Security and Privacy Advisory Board. 
Sec. 305. Technical and conforming amendments.
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TITLE IV—AUTHORIZATION OF APPROPRIATIONS AND 
EFFECTIVE DATES 
Sec. 401. Authorization of appropriations. 
Sec. 402. Effective dates. 
TITLE V—CONFIDENTIAL INFORMATION PROTECTION AND 
STATISTICAL EFFICIENCY 
Sec. 501. Short title. 
Sec. 502. Definitions. 
Sec. 503. Coordination and oversight of policies. 
Sec. 504. Effect on other laws. 
Subtitle A—Confidential Information Protection 
Sec. 511. Findings and purposes. 
Sec. 512. Limitations on use and disclosure of data and information. 
Sec. 513. Fines and penalties. 
Subtitle B—Statistical Efficiency 
Sec. 521. Findings and purposes. 
Sec. 522. Designation of statistical agencies. 
Sec. 523. Responsibilities of designated statistical agencies. 
Sec. 524. Sharing of business data among designated statistical agencies. 
Sec. 525. Limitations on use of business data provided by designated statistical 
agencies. 
Sec. 526. Conforming amendments.
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds the following: 
(1) The use of computers and the Internet is 
rapidly transforming societal interactions and the re-
lationships among citizens, private businesses, and 
the Government. 
(2) The Federal Government has had uneven 
success in applying advances in information tech-
nology to enhance governmental functions and serv-
ices, achieve more efficient performance, increase ac-
cess to Government information, and increase citizen 
participation in Government.
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(3) Most Internet-based services of the Federal 
Government are developed and presented separately, 
according to the jurisdictional boundaries of an indi-
vidual department or agency, rather than being inte-
grated cooperatively according to function or topic. 
(4) Internet-based Government services involv-
ing interagency cooperation are especially difficult to 
develop and promote, in part because of a lack of 
sufficient funding mechanisms to support such inter-
agency cooperation. 
(5) Electronic Government has its impact 
through improved Government performance and out-
comes within and across agencies. 
(6) Electronic Government is a critical element 
in the management of Government, to be imple-
mented as part of a management framework that 
also addresses finance, procurement, human capital, 
and other challenges to improve the performance of 
Government. 
(7) To take full advantage of the improved Gov-
ernment performance that can be achieved through 
the use of Internet-based technology requires strong 
leadership, better organization, improved interagency 
collaboration, and more focused oversight of agency
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compliance with statutes related to information re-
source management. 
(b) PURPOSES.—The purposes of this Act are the fol-
lowing: 
(1) To provide effective leadership of Federal 
Government efforts to develop and promote elec-
tronic Government services and processes by estab-
lishing an Administrator of a new Office of Elec-
tronic Government within the Office of Management 
and Budget. 
(2) To promote use of the Internet and other 
information technologies to provide increased oppor-
tunities for citizen participation in Government. 
(3) To promote interagency collaboration in 
providing electronic Government services, where this 
collaboration would improve the service to citizens by 
integrating related functions, and in the use of inter-
nal electronic Government processes, where this col-
laboration would improve the efficiency and effec-
tiveness of the processes. 
(4) To improve the ability of the Government to 
achieve agency missions and program performance 
goals. 
(5) To promote the use of the Internet and 
emerging technologies within and across Government
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agencies to provide citizen-centric Government infor-
mation and services. 
(6) To reduce costs and burdens for businesses 
and other Government entities. 
(7) To promote better informed decisionmaking 
by policy makers. 
(8) To promote access to high quality Govern-
ment information and services across multiple chan-
nels. 
(9) To make the Federal Government more 
transparent and accountable. 
(10) To transform agency operations by uti-
lizing, where appropriate, best practices from public 
and private sector organizations. 
(11) To provide enhanced access to Government 
information and services in a manner consistent with 
laws regarding protection of personal privacy, na-
tional security, records retention, access for persons 
with disabilities, and other relevant laws.
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TITLE I—OFFICE OF MANAGE-
MENT 
AND 
BUDGET 
ELEC-
TRONIC GOVERNMENT SERV-
ICES 
SEC. 101. MANAGEMENT AND PROMOTION OF ELECTRONIC 
GOVERNMENT SERVICES. 
(a) IN GENERAL.—Title 44, United States Code, is 
amended by inserting after chapter 35 the following:
‘‘CHAPTER 36—MANAGEMENT AND PRO-
MOTION OF ELECTRONIC GOVERN-
MENT SERVICES
‘‘Sec. 
‘‘3601. Definitions. 
‘‘3602. Office of Electronic Government. 
‘‘3603. Chief Information Officers Council. 
‘‘3604. E-Government Fund. 
‘‘3605. Program to encourage innovative solutions to enhance electronic Govern-
ment services and processes. 
‘‘3606. E-Government report.
‘‘§ 3601. Definitions 
‘‘In this chapter, the definitions under section 3502 
shall apply, and the term—
‘‘(1) ‘Administrator’ means the Administrator 
of the Office of Electronic Government established 
under section 3602; 
‘‘(2) ‘Council’ means the Chief Information Of-
ficers Council established under section 3603; 
‘‘(3) ‘electronic Government’ means the use by 
the Government of web-based Internet applications
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and other information technologies, combined with 
processes that implement these technologies, to—
‘‘(A) enhance the access to and delivery of 
Government information and services to the 
public, other agencies, and other Government 
entities; or 
‘‘(B) bring about improvements in Govern-
ment operations that may include effectiveness, 
efficiency, service quality, or transformation; 
‘‘(4) ‘enterprise architecture’—
‘‘(A) means—
‘‘(i) a strategic information asset 
base, which defines the mission; 
‘‘(ii) the information necessary to per-
form the mission; 
‘‘(iii) the technologies necessary to 
perform the mission; and 
‘‘(iv) the transitional processes for im-
plementing new technologies in response to 
changing mission needs; and 
‘‘(B) includes— 
‘‘(i) a baseline architecture; 
‘‘(ii) a target architecture; and 
‘‘(iii) a sequencing plan;
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‘‘(5) ‘Fund’ means the E-Government Fund es-
tablished under section 3604; 
‘‘(6) ‘interoperability’ means the ability of dif-
ferent operating and software systems, applications, 
and services to communicate and exchange data in 
an accurate, effective, and consistent manner; 
‘‘(7) ‘integrated service delivery’ means the pro-
vision of Internet-based Federal Government infor-
mation or services integrated according to function 
or topic rather than separated according to the 
boundaries of agency jurisdiction; and 
‘‘(8) ‘tribal government’ means—
‘‘(A) the governing body of any Indian 
tribe, band, nation, or other organized group or 
community located in the continental United 
States (excluding the State of Alaska) that is 
recognized as eligible for the special programs 
and services provided by the United States to 
Indians because of their status as Indians, and 
‘‘(B) any Alaska Native regional or village 
corporation established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 
et seq.).
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‘‘(2) Recommend to the Director changes relat-
ing to Governmentwide strategies and priorities for 
electronic Government. 
‘‘(3) Provide overall leadership and direction to 
the executive branch on electronic Government. 
‘‘(4) Promote innovative uses of information 
technology by agencies, particularly initiatives in-
volving multiagency collaboration, through support 
of pilot projects, research, experimentation, and the 
use of innovative technologies. 
‘‘(5) Oversee the distribution of funds from, 
and ensure appropriate administration and coordina-
tion of, the E-Government Fund established under 
section 3604. 
‘‘(6) Coordinate with the Administrator of Gen-
eral Services regarding programs undertaken by the 
General Services Administration to promote elec-
tronic government and the efficient use of informa-
tion technologies by agencies. 
‘‘(7) Lead the activities of the Chief Informa-
tion Officers Council established under section 3603 
on behalf of the Deputy Director for Management, 
who shall chair the council. 
‘‘(8) Assist the Director in establishing policies 
which shall set the framework for information tech-
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nology standards for the Federal Government devel-
oped by the National Institute of Standards and 
Technology and promulgated by the Secretary of 
Commerce under section 11331 of title 40, taking 
into account, if appropriate, recommendations of the 
Chief Information Officers Council, experts, and in-
terested parties from the private and nonprofit sec-
tors and State, local, and tribal governments, and 
maximizing the use of commercial standards as ap-
propriate, including the following: 
‘‘(A) 
Standards 
and 
guidelines 
for 
interconnectivity and interoperability as de-
scribed under section 3504. 
‘‘(B) Consistent with the process under 
section 207(d) of the E-Government Act of 
2002, standards and guidelines for categorizing 
Federal Government electronic information to 
enable efficient use of technologies, such as 
through the use of extensible markup language. 
‘‘(C) Standards and guidelines for Federal 
Government computer system efficiency and se-
curity. 
‘‘(9) Sponsor ongoing dialogue that—
‘‘(A) shall be conducted among Federal, 
State, local, and tribal government leaders on
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electronic Government in the executive, legisla-
tive, and judicial branches, as well as leaders in 
the private and nonprofit sectors, to encourage 
collaboration and enhance understanding of 
best practices and innovative approaches in ac-
quiring, using, and managing information re-
sources; 
‘‘(B) is intended to improve the perform-
ance of governments in collaborating on the use 
of information technology to improve the deliv-
ery of Government information and services; 
and 
‘‘(C) may include— 
‘‘(i) development of innovative mod-
els—
‘‘(I) for electronic Government 
management and Government infor-
mation technology contracts; and 
‘‘(II) that may be developed 
through focused discussions or using 
separately sponsored research; 
‘‘(ii) identification of opportunities for 
public-private collaboration in using Inter-
net-based technology to increase the effi-
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ciency of Government-to-business trans-
actions; 
‘‘(iii) identification of mechanisms for 
providing incentives to program managers 
and other Government employees to de-
velop and implement innovative uses of in-
formation technologies; and 
‘‘(iv) identification of opportunities for 
public, private, and intergovernmental col-
laboration in addressing the disparities in 
access to the Internet and information 
technology. 
‘‘(10) Sponsor activities to engage the general 
public in the development and implementation of 
policies and programs, particularly activities aimed 
at fulfilling the goal of using the most effective cit-
izen-centered strategies and those activities which 
engage multiple agencies providing similar or related 
information and services. 
‘‘(11) Oversee the work of the General Services 
Administration and other agencies in developing the 
integrated Internet-based system under section 204 
of the E-Government Act of 2002.
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‘‘(12) Coordinate with the Administrator for 
Federal Procurement Policy to ensure effective im-
plementation of electronic procurement initiatives. 
‘‘(13) Assist Federal agencies, including the 
General Services Administration, the Department of 
Justice, and the United States Access Board in—
‘‘(A) implementing accessibility standards 
under section 508 of the Rehabilitation Act of 
1973 (29 U.S.C. 794d); and 
‘‘(B) ensuring compliance with those 
standards through the budget review process 
and other means. 
‘‘(14) Oversee the development of enterprise ar-
chitectures within and across agencies. 
‘‘(15) Assist the Director and the Deputy Di-
rector for Management in overseeing agency efforts 
to ensure that electronic Government activities incor-
porate adequate, risk-based, and cost-effective secu-
rity compatible with business processes. 
‘‘(16) Administer the Office of Electronic Gov-
ernment established under this section. 
‘‘(17) Assist the Director in preparing the E-
Government report established under section 3606. 
‘‘(g) The Director shall ensure that the Office of 
Management and Budget, including the Office of Elec-
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tronic Government, the Office of Information and Regu-
latory Affairs, and other relevant offices, have adequate 
staff and resources to properly fulfill all functions under 
the E-Government Act of 2002. 
‘‘§ 3603. Chief Information Officers Council 
‘‘(a) There is established in the executive branch a 
Chief Information Officers Council. 
‘‘(b) The members of the Council shall be as follows: 
‘‘(1) The Deputy Director for Management of 
the Office of Management and Budget, who shall act 
as chairperson of the Council. 
‘‘(2) The Administrator of the Office of Elec-
tronic Government. 
‘‘(3) The Administrator of the Office of Infor-
mation and Regulatory Affairs. 
‘‘(4) The chief information officer of each agen-
cy described under section 901(b) of title 31. 
‘‘(5) The chief information officer of the Cen-
tral Intelligence Agency. 
‘‘(6) The chief information officer of the De-
partment of the Army, the Department of the Navy, 
and the Department of the Air Force, if chief infor-
mation officers have been designated for such de-
partments under section 3506(a)(2)(B).
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‘‘(7) Any other officer or employee of the 
United States designated by the chairperson. 
‘‘(c)(1) The Administrator of the Office of Electronic 
Government shall lead the activities of the Council on be-
half of the Deputy Director for Management. 
‘‘(2)(A) The Vice Chairman of the Council shall be 
selected by the Council from among its members. 
‘‘(B) The Vice Chairman shall serve a 1-year term, 
and may serve multiple terms. 
‘‘(3) The Administrator of General Services shall pro-
vide administrative and other support for the Council. 
‘‘(d) The Council is designated the principal inter-
agency forum for improving agency practices related to 
the design, acquisition, development, modernization, use, 
operation, sharing, and performance of Federal Govern-
ment information resources. 
‘‘(e) In performing its duties, the Council shall con-
sult regularly with representatives of State, local, and trib-
al governments. 
‘‘(f) The Council shall perform functions that include 
the following: 
‘‘(1) Develop recommendations for the Director 
on Government information resources management 
policies and requirements.
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‘‘(2) Share experiences, ideas, best practices, 
and innovative approaches related to information re-
sources management. 
‘‘(3) Assist the Administrator in the identifica-
tion, development, and coordination of multiagency 
projects and other innovative initiatives to improve 
Government performance through the use of infor-
mation technology. 
‘‘(4) Promote the development and use of com-
mon performance measures for agency information 
resources management under this chapter and title 
II of the E-Government Act of 2002. 
‘‘(5) Work as appropriate with the National In-
stitute of Standards and Technology and the Admin-
istrator to develop recommendations on information 
technology standards developed under section 20 of 
the National Institute of Standards and Technology 
Act (15 U.S.C. 278g–3) and promulgated under sec-
tion 11331 of title 40, and maximize the use of com-
mercial standards as appropriate, including the fol-
lowing: 
‘‘(A) 
Standards 
and 
guidelines 
for 
interconnectivity and interoperability as de-
scribed under section 3504.
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‘‘(B) Consistent with the process under 
section 207(d) of the E-Government Act of 
2002, standards and guidelines for categorizing 
Federal Government electronic information to 
enable efficient use of technologies, such as 
through the use of extensible markup language. 
‘‘(C) Standards and guidelines for Federal 
Government computer system efficiency and se-
curity. 
‘‘(6) Work with the Office of Personnel Man-
agement to assess and address the hiring, training, 
classification, and professional development needs of 
the Government related to information resources 
management. 
‘‘(7) Work with the Archivist of the United 
States to assess how the Federal Records Act can be 
addressed effectively by Federal information re-
sources management activities. 
‘‘§ 3604. E-Government Fund 
‘‘(a)(1) There is established in the Treasury of the 
United States the E-Government Fund. 
‘‘(2) The Fund shall be administered by the Adminis-
trator of the General Services Administration to support 
projects approved by the Director, assisted by the Admin-
istrator of the Office of Electronic Government, that en-
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able the Federal Government to expand its ability, through 
the development and implementation of innovative uses of 
the Internet or other electronic methods, to conduct activi-
ties electronically. 
‘‘(3) Projects under this subsection may include ef-
forts to—
‘‘(A) make Federal Government information 
and services more readily available to members of 
the public (including individuals, businesses, grant-
ees, and State and local governments); 
‘‘(B) make it easier for the public to apply for 
benefits, receive services, pursue business opportuni-
ties, submit information, and otherwise conduct 
transactions with the Federal Government; and 
‘‘(C) enable Federal agencies to take advantage 
of information technology in sharing information 
and conducting transactions with each other and 
with State and local governments. 
‘‘(b)(1) The Administrator shall—
‘‘(A) establish procedures for accepting and re-
viewing proposals for funding; 
‘‘(B) consult with interagency councils, includ-
ing the Chief Information Officers Council, the Chief 
Financial Officers Council, and other interagency
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management councils, in establishing procedures and 
reviewing proposals; and 
‘‘(C) assist the Director in coordinating re-
sources that agencies receive from the Fund with 
other resources available to agencies for similar pur-
poses. 
‘‘(2) When reviewing proposals and managing the 
Fund, the Administrator shall observe and incorporate the 
following procedures: 
‘‘(A) A project requiring substantial involve-
ment or funding from an agency shall be approved 
by a senior official with agencywide authority on be-
half of the head of the agency, who shall report di-
rectly to the head of the agency. 
‘‘(B) Projects shall adhere to fundamental cap-
ital planning and investment control processes. 
‘‘(C) Agencies shall identify in their proposals 
resource commitments from the agencies involved 
and how these resources would be coordinated with 
support from the Fund, and include plans for poten-
tial continuation of projects after all funds made 
available from the Fund are expended. 
‘‘(D) After considering the recommendations of 
the interagency councils, the Director, assisted by 
the Administrator, shall have final authority to de-
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termine which of the candidate projects shall be 
funded from the Fund. 
‘‘(E) Agencies shall assess the results of funded 
projects. 
‘‘(c) In determining which proposals to recommend 
for funding, the Administrator—
‘‘(1) shall consider criteria that include whether 
a proposal—
‘‘(A) identifies the group to be served, in-
cluding citizens, businesses, the Federal Gov-
ernment, or other governments; 
‘‘(B) indicates what service or information 
the project will provide that meets needs of 
groups identified under subparagraph (A); 
‘‘(C) ensures proper security and protects 
privacy; 
‘‘(D) is interagency in scope, including 
projects implemented by a primary or single 
agency that—
‘‘(i) could confer benefits on multiple 
agencies; and 
‘‘(ii) have the support of other agen-
cies; and
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‘‘(E) has performance objectives that tie to 
agency missions and strategic goals, and in-
terim results that relate to the objectives; and 
‘‘(2) may also rank proposals based on criteria 
that include whether a proposal—
‘‘(A) has Governmentwide application or 
implications; 
‘‘(B) has demonstrated support by the 
public to be served; 
‘‘(C) integrates Federal with State, local, 
or tribal approaches to service delivery; 
‘‘(D) identifies resource commitments from 
nongovernmental sectors; 
‘‘(E) identifies resource commitments from 
the agencies involved; 
‘‘(F) 
uses 
web-based 
technologies 
to 
achieve objectives; 
‘‘(G) identifies records management and 
records access strategies; 
‘‘(H) supports more effective citizen par-
ticipation in and interaction with agency activi-
ties that further progress toward a more cit-
izen-centered Government;
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‘‘(I) directly delivers Government informa-
tion and services to the public or provides the 
infrastructure for delivery; 
‘‘(J) supports integrated service delivery; 
‘‘(K) describes how business processes 
across agencies will reflect appropriate trans-
formation simultaneous to technology imple-
mentation; and 
‘‘(L) is new or innovative and does not 
supplant existing funding streams within agen-
cies. 
‘‘(d) The Fund may be used to fund the integrated 
Internet-based system under section 204 of the E-Govern-
ment Act of 2002. 
‘‘(e) None of the funds provided from the Fund may 
be transferred to any agency until 15 days after the Ad-
ministrator of the General Services Administration has 
submitted to the Committees on Appropriations of the 
Senate and the House of Representatives, the Committee 
on Governmental Affairs of the Senate, the Committee on 
Government Reform of the House of Representatives, and 
the appropriate authorizing committees of the Senate and 
the House of Representatives, a notification and descrip-
tion of how the funds are to be allocated and how the ex-
penditure will further the purposes of this chapter.
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‘‘(B) submit each proposal, and the assessment 
of the proposal, to the Administrator. 
‘‘(3) The technical assistance team shall not consider 
or evaluate proposals submitted in response to a solicita-
tion for offers for a pending procurement or for a specific 
agency requirement. 
‘‘(4) After receiving proposals and assessments from 
the technical assistance team, the Administrator shall con-
sider recommending appropriate proposals for funding 
under the E-Government Fund established under section 
3604 or, if appropriate, forward the proposal and the as-
sessment of it to the executive agency whose mission most 
coincides with the subject matter of the proposal. 
‘‘§ 3606. E-Government report 
‘‘(a) Not later than March 1 of each year, the Direc-
tor shall submit an E-Government status report to the 
Committee on Governmental Affairs of the Senate and the 
Committee on Government Reform of the House of Rep-
resentatives. 
‘‘(b) The report under subsection (a) shall contain—
‘‘(1) a summary of the information reported by 
agencies under section 202(f) of the E-Government 
Act of 2002; 
‘‘(2) the information required to be reported by 
section 3604(f); and
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‘‘(3) a description of compliance by the Federal 
Government with other goals and provisions of the 
E-Government Act of 2002.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The table of chapters for title 44, United States Code, 
is amended by inserting after the item relating to chapter 
35 the following:
‘‘36. Management and Promotion of Electronic Govern-
ment Services .......................................................... 3601’’.
SEC. 102. CONFORMING AMENDMENTS. 
(a) ELECTRONIC GOVERNMENT AND INFORMATION 
TECHNOLOGIES.—
(1) IN GENERAL.—Chapter 3 of title 40, United 
States Code, is amended by inserting after section 
304 the following new section: 
‘‘§ 305. Electronic Government and information tech-
nologies 
‘‘The Administrator of General Services shall consult 
with the Administrator of the Office of Electronic Govern-
ment on programs undertaken by the General Services Ad-
ministration to promote electronic Government and the ef-
ficient use of information technologies by Federal agen-
cies.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of sections for chapter 3 of such
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title is amended by inserting after the item relating 
to section 304 the following:
‘‘305. Electronic Government and information technologies.’’.
(b) MODIFICATION OF DEPUTY DIRECTOR FOR MAN-
AGEMENT FUNCTIONS.—Section 503(b) of title 31, United 
States Code, is amended—
(1) by redesignating paragraphs (5), (6), (7), 
(8), and (9), as paragraphs (6), (7), (8), (9), and 
(10), respectively; and 
(2) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) Chair the Chief Information Officers 
Council established under section 3603 of title 44.’’. 
(c) OFFICE OF ELECTRONIC GOVERNMENT.—
(1) IN GENERAL.—Chapter 5 of title 31, United 
States Code, is amended by inserting after section 
506 the following: 
‘‘§ 507. Office of Electronic Government 
‘‘The Office of Electronic Government, established 
under section 3602 of title 44, is an office in the Office 
of Management and Budget.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of sections for chapter 5 of title 
31, United States Code, is amended by inserting 
after the item relating to section 506 the following:
‘‘507. Office of Electronic Government.’’.
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TITLE 
II—FEDERAL 
MANAGE-
MENT AND PROMOTION OF 
ELECTRONIC 
GOVERNMENT 
SERVICES 
SEC. 201. DEFINITIONS. 
Except as otherwise provided, in this title the defini-
tions under sections 3502 and 3601 of title 44, United 
States Code, shall apply. 
SEC. 202. FEDERAL AGENCY RESPONSIBILITIES. 
(a) IN GENERAL.—The head of each agency shall be 
responsible for—
(1) complying with the requirements of this Act 
(including the amendments made by this Act), the 
related information resource management policies 
and guidance established by the Director of the Of-
fice of Management and Budget, and the related in-
formation technology standards promulgated by the 
Secretary of Commerce; 
(2) ensuring that the information resource 
management policies and guidance established under 
this Act by the Director, and the related information 
technology standards promulgated by the Secretary 
of Commerce are communicated promptly and effec-
tively to all relevant officials within their agency; 
and
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(3) supporting the efforts of the Director and 
the Administrator of the General Services Adminis-
tration to develop, maintain, and promote an inte-
grated Internet-based system of delivering Federal 
Government information and services to the public 
under section 204. 
(b) PERFORMANCE INTEGRATION.—
(1) Agencies shall develop performance meas-
ures that demonstrate how electronic government en-
ables progress toward agency objectives, strategic 
goals, and statutory mandates. 
(2) In measuring performance under this sec-
tion, agencies shall rely on existing data collections 
to the extent practicable. 
(3) Areas of performance measurement that 
agencies should consider include—
(A) customer service; 
(B) agency productivity; and 
(C) adoption of innovative information 
technology, including the appropriate use of 
commercial best practices. 
(4) Agencies shall link their performance goals, 
as appropriate, to key groups, including citizens, 
businesses, and other governments, and to internal 
Federal Government operations.
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(5) As appropriate, agencies shall work collec-
tively in linking their performance goals to groups 
identified under paragraph (4) and shall use infor-
mation technology in delivering Government infor-
mation and services to those groups. 
(c) AVOIDING DIMINISHED ACCESS.—When promul-
gating policies and implementing programs regarding the 
provision of Government information and services over the 
Internet, agency heads shall consider the impact on per-
sons without access to the Internet, and shall, to the ex-
tent practicable—
(1) ensure that the availability of Government 
information and services has not been diminished for 
individuals who lack access to the Internet; and 
(2) pursue alternate modes of delivery that 
make Government information and services more ac-
cessible to individuals who do not own computers or 
lack access to the Internet. 
(d) ACCESSIBILITY
TO PEOPLE WITH DISABIL-
ITIES.—All actions taken by Federal departments and 
agencies under this Act shall be in compliance with section 
508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d). 
(e) SPONSORED ACTIVITIES.—Agencies shall sponsor 
activities that use information technology to engage the
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public in the development and implementation of policies 
and programs. 
(f) CHIEF INFORMATION OFFICERS.—The Chief In-
formation Officer of each of the agencies designated under 
chapter 36 of title 44, United States Code (as added by 
this Act) shall be responsible for—
(1) participating in the functions of the Chief 
Information Officers Council; and 
(2) monitoring the implementation, within their 
respective agencies, of information technology stand-
ards promulgated by the Secretary of Commerce, in-
cluding common standards for interconnectivity and 
interoperability, categorization of Federal Govern-
ment electronic information, and computer system 
efficiency and security. 
(g) E-GOVERNMENT STATUS REPORT.—
(1) IN GENERAL.—Each agency shall compile 
and submit to the Director an annual E-Government 
Status Report on— 
(A) the status of the implementation by 
the agency of electronic government initiatives; 
(B) compliance by the agency with this 
Act; and
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(C) how electronic Government initiatives 
of the agency improve performance in delivering 
programs to constituencies. 
(2) SUBMISSION.—Each agency shall submit an 
annual report under this subsection— 
(A) to the Director at such time and in 
such manner as the Director requires; 
(B) consistent with related reporting re-
quirements; and 
(C) which addresses any section in this 
title relevant to that agency. 
(h) USE OF TECHNOLOGY.—Nothing in this Act su-
persedes the responsibility of an agency to use or manage 
information technology to deliver Government information 
and services that fulfill the statutory mission and pro-
grams of the agency. 
(i) NATIONAL SECURITY SYSTEMS.—
(1) INAPPLICABILITY.—Except as provided 
under paragraph (2), this title does not apply to na-
tional security systems as defined in section 11103 
of title 40, United States Code. 
(2) APPLICABILITY.—This section, section 203, 
and section 214 do apply to national security sys-
tems to the extent practicable and consistent with 
law.
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SEC. 203. COMPATIBILITY OF EXECUTIVE AGENCY METH-
ODS FOR USE AND ACCEPTANCE OF ELEC-
TRONIC SIGNATURES. 
(a) PURPOSE.—The purpose of this section is to 
achieve interoperable implementation of electronic signa-
tures for appropriately secure electronic transactions with 
Government. 
(b) ELECTRONIC SIGNATURES.—In order to fulfill 
the objectives of the Government Paperwork Elimination 
Act (Public Law 105–277; 112 Stat. 2681–749 through 
2681–751), each Executive agency (as defined under sec-
tion 105 of title 5, United States Code) shall ensure that 
its methods for use and acceptance of electronic signatures 
are compatible with the relevant policies and procedures 
issued by the Director. 
(c) AUTHORITY FOR ELECTRONIC SIGNATURES.—
The Administrator of General Services shall support the 
Director by establishing a framework to allow efficient 
interoperability among Executive agencies when using 
electronic signatures, including processing of digital signa-
tures. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the General Services 
Administration, to ensure the development and operation 
of a Federal bridge certification authority for digital sig-
nature compatibility, and for other activities consistent
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with this section, $8,000,000 or such sums as are nec-
essary in fiscal year 2003, and such sums as are necessary 
for each fiscal year thereafter. 
SEC. 204. FEDERAL INTERNET PORTAL. 
(a) IN GENERAL.—
(1) PUBLIC ACCESS.—The Director shall work 
with the Administrator of the General Services Ad-
ministration and other agencies to maintain and pro-
mote an integrated Internet-based system of pro-
viding the public with access to Government infor-
mation and services. 
(2) CRITERIA.—To the extent practicable, the 
integrated system shall be designed and operated ac-
cording to the following criteria: 
(A) The provision of Internet-based Gov-
ernment information and services directed to 
key groups, including citizens, business, and 
other governments, and integrated according to 
function or topic rather than separated accord-
ing to the boundaries of agency jurisdiction. 
(B) An ongoing effort to ensure that Inter-
net-based Government services relevant to a 
given citizen activity are available from a single 
point.
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(C) Access to Federal Government infor-
mation and services consolidated, as appro-
priate, with Internet-based information and 
services provided by State, local, and tribal gov-
ernments. 
(D) Access to Federal Government infor-
mation held by 1 or more agencies shall be 
made available in a manner that protects pri-
vacy, consistent with law. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the General Services 
Administration $15,000,000 for the maintenance, im-
provement, and promotion of the integrated Internet-
based system for fiscal year 2003, and such sums as are 
necessary for fiscal years 2004 through 2007.
SEC. 205. FEDERAL COURTS. 
(a) INDIVIDUAL COURT WEBSITES.—The Chief Jus-
tice of the United States, the chief judge of each circuit 
and district and of the Court of Federal Claims, and the 
chief bankruptcy judge of each district shall cause to be 
established and maintained, for the court of which the 
judge is chief justice or judge, a website that contains the 
following information or links to websites with the fol-
lowing information:
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(1) Location and contact information for the 
courthouse, including the telephone numbers and 
contact names for the clerk’s office and justices’ or 
judges’ chambers. 
(2) Local rules and standing or general orders 
of the court. 
(3) Individual rules, if in existence, of each jus-
tice or judge in that court. 
(4) Access to docket information for each case. 
(5) Access to the substance of all written opin-
ions issued by the court, regardless of whether such 
opinions are to be published in the official court re-
porter, in a text searchable format. 
(6) Access to documents filed with the court-
house in electronic form, to the extent provided 
under subsection (c). 
(7) Any other information (including forms in 
a format that can be downloaded) that the court de-
termines useful to the public. 
(b) MAINTENANCE OF DATA ONLINE.—
(1) UPDATE OF INFORMATION.—The informa-
tion and rules on each website shall be updated reg-
ularly and kept reasonably current. 
(2) CLOSED CASES.—Electronic files and docket 
information for cases closed for more than 1 year
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are not required to be made available online, except 
all written opinions with a date of issuance after the 
effective date of this section shall remain available 
online. 
(c) ELECTRONIC FILINGS.— 
(1) IN GENERAL.—Except as provided under 
paragraph (2) or in the rules prescribed under para-
graph (3), each court shall make any document that 
is filed electronically publicly available online. A 
court may convert any document that is filed in 
paper form to electronic form. To the extent such 
conversions are made, all such electronic versions of 
the document shall be made available online. 
(2) EXCEPTIONS.—Documents that are filed 
that are not otherwise available to the public, such 
as documents filed under seal, shall not be made 
available online. 
(3) PRIVACY AND SECURITY CONCERNS.—(A)(i) 
The Supreme Court shall prescribe rules, in accord-
ance with sections 2072 and 2075 of title 28, United 
States Code, to protect privacy and security con-
cerns relating to electronic filing of documents and 
the public availability under this subsection of docu-
ments filed electronically.
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(ii) Such rules shall provide to the extent prac-
ticable for uniform treatment of privacy and security 
issues throughout the Federal courts. 
(iii) Such rules shall take into consideration 
best practices in Federal and State courts to protect 
private information or otherwise maintain necessary 
information security. 
(iv) To the extent that such rules provide for 
the redaction of certain categories of information in 
order to protect privacy and security concerns, such 
rules shall provide that a party that wishes to file 
an otherwise proper document containing such infor-
mation may file an unredacted document under seal, 
which shall be retained by the court as part of the 
record, and which, at the discretion of the court and 
subject to any applicable rules issued in accordance 
with chapter 131 of title 28, United States Code, 
shall be either in lieu of, or in addition, to, a re-
dacted copy in the public file. 
(B)(i) Subject to clause (ii), the Judicial Con-
ference of the United States may issue interim rules, 
and interpretive statements relating to the applica-
tion of such rules, which conform to the require-
ments of this paragraph and which shall cease to
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have effect upon the effective date of the rules re-
quired under subparagraph (A). 
(ii) Pending issuance of the rules required 
under subparagraph (A), any rule or order of any 
court, or of the Judicial Conference, providing for 
the redaction of certain categories of information in 
order to protect privacy and security concerns aris-
ing from electronic filing shall comply with, and be 
construed in conformity with, subparagraph (A)(iv). 
(C) Not later than 1 year after the rules pre-
scribed under subparagraph (A) take effect, and 
every 2 years thereafter, the Judicial Conference 
shall submit to Congress a report on the adequacy 
of those rules to protect privacy and security. 
(d) DOCKETS WITH LINKS TO DOCUMENTS.—The 
Judicial Conference of the United States shall explore the 
feasibility of technology to post online dockets with links 
allowing all filings, decisions, and rulings in each case to 
be obtained from the docket sheet of that case. 
(e) COST OF PROVIDING ELECTRONIC DOCKETING 
INFORMATION.—Section 303(a) of the Judiciary Appro-
priations Act, 1992 (28 U.S.C. 1913 note) is amended in 
the first sentence by striking ‘‘shall hereafter’’ and insert-
ing ‘‘may, only to the extent necessary,’’.
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(f) TIME REQUIREMENTS.—Not later than 2 years 
after the effective date of this title, the websites under 
subsection (a) shall be established, except that access to 
documents filed in electronic form shall be established not 
later than 4 years after that effective date. 
(g) DEFERRAL.—
(1) IN GENERAL.—
(A) ELECTION.—
(i) NOTIFICATION.—The Chief Justice 
of the United States, a chief judge, or 
chief bankruptcy judge may submit a noti-
fication to the Administrative Office of the 
United States Courts to defer compliance 
with any requirement of this section with 
respect to the Supreme Court, a court of 
appeals, district, or the bankruptcy court 
of a district. 
(ii) CONTENTS.—A notification sub-
mitted under this subparagraph shall 
state—
(I) the reasons for the deferral; 
and 
(II) the online methods, if any, 
or any alternative methods, such court
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or district is using to provide greater 
public access to information. 
(B) EXCEPTION.—To the extent that the 
Supreme Court, a court of appeals, district, or 
bankruptcy court of a district maintains a 
website under subsection (a), the Supreme 
Court or that court of appeals or district shall 
comply with subsection (b)(1). 
(2) REPORT.—Not later than 1 year after the 
effective date of this title, and every year thereafter, 
the Judicial Conference of the United States shall 
submit a report to the Committees on Governmental 
Affairs and the Judiciary of the Senate and the 
Committees on Government Reform and the Judici-
ary of the House of Representatives that—
(A) contains all notifications submitted to 
the Administrative Office of the United States 
Courts under this subsection; and 
(B) summarizes and evaluates all notifica-
tions. 
SEC. 206. REGULATORY AGENCIES. 
(a) PURPOSES.—The purposes of this section are 
to—
(1) improve performance in the development 
and issuance of agency regulations by using infor-
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mation technology to increase access, accountability, 
and transparency; and 
(2) enhance public participation in Government 
by electronic means, consistent with requirements 
under subchapter II of chapter 5 of title 5, United 
States 
Code, 
(commonly 
referred 
to 
as 
the 
‘‘Administrative Procedures Act’’). 
(b) INFORMATION PROVIDED
BY AGENCIES ON-
LINE.—To the extent practicable as determined by the 
agency in consultation with the Director, each agency (as 
defined under section 551 of title 5, United States Code) 
shall ensure that a publicly accessible Federal Government 
website includes all information about that agency re-
quired to be published in the Federal Register under para-
graphs (1) and (2) of section 552(a) of title 5, United 
States Code. 
(c) SUBMISSIONS BY ELECTRONIC MEANS.—To the 
extent practicable, agencies shall accept submissions under 
section 553(c) of title 5, United States Code, by electronic 
means. 
(d) ELECTRONIC DOCKETING.—
(1) IN GENERAL.—To the extent practicable, as 
determined by the agency in consultation with the 
Director, agencies shall ensure that a publicly acces-
sible Federal Government website contains electronic
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dockets for rulemakings under section 553 of title 5, 
United States Code. 
(2) INFORMATION
AVAILABLE.—Agency elec-
tronic dockets shall make publicly available online to 
the extent practicable, as determined by the agency 
in consultation with the Director— 
(A) all submissions under section 553(c) of 
title 5, United States Code; and 
(B) other materials that by agency rule or 
practice are included in the rulemaking docket 
under section 553(c) of title 5, United States 
Code, whether or not submitted electronically. 
(e) TIME LIMITATION.—Agencies shall implement the 
requirements of this section consistent with a timetable 
established by the Director and reported to Congress in 
the first annual report under section 3606 of title 44 (as 
added by this Act). 
SEC. 207. ACCESSIBILITY, USABILITY, AND PRESERVATION 
OF GOVERNMENT INFORMATION. 
(a) PURPOSE.—The purpose of this section is to im-
prove the methods by which Government information, in-
cluding information on the Internet, is organized, pre-
served, and made accessible to the public. 
(b) DEFINITIONS.—In this section, the term—
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(1) ‘‘Committee’’ means the Interagency Com-
mittee on Government Information established under 
subsection (c); and 
(2) ‘‘directory’’ means a taxonomy of subjects 
linked to websites that—
(A) organizes Government information on 
the Internet according to subject matter; and 
(B) may be created with the participation 
of human editors. 
(c) INTERAGENCY COMMITTEE.—
(1) ESTABLISHMENT.—Not later than 180 days 
after the date of enactment of this title, the Director 
shall establish the Interagency Committee on Gov-
ernment Information. 
(2) MEMBERSHIP.—The Committee shall be 
chaired by the Director or the designee of the Direc-
tor and—
(A) shall include representatives from—
(i) the National Archives and Records 
Administration; 
(ii) the offices of the Chief Informa-
tion Officers from Federal agencies; and 
(iii) other relevant officers from the 
executive branch; and
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(B) may include representatives from the 
Federal legislative and judicial branches. 
(3) FUNCTIONS.—The Committee shall—
(A) engage in public consultation to the 
maximum extent feasible, including consultation 
with interested communities such as public ad-
vocacy organizations; 
(B) conduct studies and submit rec-
ommendations, as provided under this section, 
to the Director and Congress; and 
(C) share effective practices for access to, 
dissemination of, and retention of Federal in-
formation. 
(4) TERMINATION.—The Committee may be 
terminated on a date determined by the Director, ex-
cept the Committee may not terminate before the 
Committee submits all recommendations required 
under this section. 
(d) CATEGORIZING OF INFORMATION.—
(1) COMMITTEE FUNCTIONS.—Not later than 2 
years after the date of enactment of this Act, the 
Committee shall submit recommendations to the Di-
rector on—
(A) the adoption of standards, which are 
open to the maximum extent feasible, to enable
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the organization and categorization of Govern-
ment information—
(i) in a way that is searchable elec-
tronically, including by searchable identi-
fiers; and 
(iii) in ways that are interoperable 
across agencies; 
(B) the definition of categories of Govern-
ment information which should be classified 
under the standards; and 
(C) determining priorities and developing 
schedules for the initial implementation of the 
standards by agencies. 
(2) FUNCTIONS OF THE DIRECTOR.—Not later 
than 1 year after the submission of recommenda-
tions under paragraph (1), the Director shall issue 
policies—
(A) requiring that agencies use standards, 
which are open to the maximum extent feasible, 
to enable the organization and categorization of 
Government information—
(i) in a way that is searchable elec-
tronically, including by searchable identi-
fiers;
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(ii) in ways that are interoperable 
across agencies; and 
(iii) that are, as appropriate, con-
sistent with the provisions under section 
3602(f)(8) of title 44, United States Code; 
(B) defining categories of Government in-
formation which shall be required to be classi-
fied under the standards; and 
(C) determining priorities and developing 
schedules for the initial implementation of the 
standards by agencies. 
(3) MODIFICATION
OF
POLICIES.—After the 
submission of agency reports under paragraph (4), 
the Director shall modify the policies, as needed, in 
consultation with the Committee and interested par-
ties. 
(4) AGENCY
FUNCTIONS.—Each agency shall 
report annually to the Director, in the report estab-
lished under section 202(g), on compliance of that 
agency with the policies issued under paragraph 
(2)(A). 
(e) PUBLIC ACCESS
TO ELECTRONIC INFORMA-
TION.—
(1) COMMITTEE FUNCTIONS.—Not later than 2 
years after the date of enactment of this Act, the
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Committee shall submit recommendations to the Di-
rector and the Archivist of the United States on—
(A) the adoption by agencies of policies 
and procedures to ensure that chapters 21, 25, 
27, 29, and 31 of title 44, United States Code, 
are applied effectively and comprehensively to 
Government information on the Internet and to 
other electronic records; and 
(B) the imposition of timetables for the 
implementation of the policies and procedures 
by agencies. 
(2) FUNCTIONS OF THE ARCHIVIST.—Not later 
than 1 year after the submission of recommenda-
tions by the Committee under paragraph (1), the 
Archivist of the United States shall issue policies—
(A) requiring the adoption by agencies of 
policies and procedures to ensure that chapters 
21, 25, 27, 29, and 31 of title 44, United 
States Code, are applied effectively and com-
prehensively to Government information on the 
Internet and to other electronic records; and 
(B) imposing timetables for the implemen-
tation of the policies, procedures, and tech-
nologies by agencies.
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(3) MODIFICATION
OF
POLICIES.—After the 
submission of agency reports under paragraph (4), 
the Archivist of the United States shall modify the 
policies, as needed, in consultation with the Com-
mittee and interested parties. 
(4) AGENCY
FUNCTIONS.—Each agency shall 
report annually to the Director, in the report estab-
lished under section 202(g), on compliance of that 
agency with the policies issued under paragraph 
(2)(A). 
(f) AGENCY WEBSITES.—
(1) STANDARDS FOR AGENCY WEBSITES.—Not 
later than 2 years after the effective date of this 
title, the Director shall promulgate guidance for 
agency websites that includes—
(A) requirements that websites include di-
rect links to—
(i) descriptions of the mission and 
statutory authority of the agency; 
(ii) information made available to the 
public under subsections (a)(1) and (b) of 
section 552 of title 5, United States Code 
(commonly referred to as the ‘‘Freedom of 
Information Act’’);
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(iii) information about the organiza-
tional structure of the agency; and 
(iv) the strategic plan of the agency 
developed under section 306 of title 5, 
United States Code; and 
(B) minimum agency goals to assist public 
users to navigate agency websites, including—
(i) speed of retrieval of search results; 
(ii) the relevance of the results; 
(iii) 
tools 
to 
aggregate 
and 
disaggregate data; and 
(iv) security protocols to protect infor-
mation. 
(2) AGENCY
REQUIREMENTS.—(A) Not later 
than 2 years after the date of enactment of this Act, 
each agency shall—
(i) consult with the Committee and solicit 
public comment; 
(ii) establish a process for determining 
which Government information the agency in-
tends to make available and accessible to the 
public on the Internet and by other means; 
(iii) develop priorities and schedules for 
making Government information available and 
accessible;
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(iv) make such final determinations, prior-
ities, and schedules available for public com-
ment; 
(v) post such final determinations, prior-
ities, and schedules on the Internet; and 
(vi) submit such final determinations, pri-
orities, and schedules to the Director, in the re-
port established under section 202(g). 
(B) Each agency shall update determinations, 
priorities, and schedules of the agency, as needed, 
after consulting with the Committee and soliciting 
public comment, if appropriate. 
(3) PUBLIC
DOMAIN
DIRECTORY
OF
PUBLIC 
FEDERAL GOVERNMENT WEBSITES.—
(A) ESTABLISHMENT.—Not later than 2 
years after the effective date of this title, the 
Director and each agency shall—
(i) develop and establish a public do-
main directory of public Federal Govern-
ment websites; and 
(ii) post the directory on the Internet 
with a link to the integrated Internet-based 
system established under section 204. 
(B) DEVELOPMENT.—With the assistance 
of each agency, the Director shall—
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(i) direct the development of the direc-
tory through a collaborative effort, includ-
ing input from—
(I) agency librarians; 
(II) information technology man-
agers; 
(III) program managers; 
(IV) records managers; 
(V) Federal depository librarians; 
and 
(VI) other interested parties; and 
(ii) develop a public domain taxonomy 
of subjects used to review and categorize 
public Federal Government websites. 
(C) UPDATE.—With the assistance of each 
agency, the Administrator of the Office of Elec-
tronic Government shall—
(i) update the directory as necessary, 
but not less than every 6 months; and 
(ii) solicit interested persons for im-
provements to the directory. 
(g) ACCESS TO FEDERALLY FUNDED RESEARCH AND 
DEVELOPMENT.—
(1) DEVELOPMENT AND MAINTENANCE OF GOV-
ERNMENTWIDE REPOSITORY AND WEBSITE.—
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(A) REPOSITORY AND WEBSITE.—The Di-
rector of the Office of Management and Budget 
(or the Director’s delegate), in consultation 
with the Director of the Office of Science and 
Technology Policy and other relevant agencies, 
shall ensure the development and maintenance 
of—
(i) a repository that fully integrates, 
to the maximum extent feasible, informa-
tion about research and development fund-
ed by the Federal Government, and the re-
pository shall—
(I) include information about re-
search and development funded by the 
Federal Government, consistent with 
any relevant protections for the infor-
mation under section 552 of title 5, 
United States Code, and performed 
by—
(aa) institutions not a part 
of the Federal Government, in-
cluding State, local, and foreign 
governments; 
industrial 
firms; 
educational institutions; not-for-
profit 
organizations; 
federally
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funded research and development 
centers; and private individuals; 
and 
(bb) entities of the Federal 
Government, including research 
and 
development 
laboratories, 
centers, and offices; and 
(II) integrate information about each 
separate research and development task or 
award, including—
(aa) the dates upon which 
the task or award is expected to 
start and end; 
(bb) a brief summary de-
scribing the objective and the sci-
entific and technical focus of the 
task or award; 
(cc) the entity or institution 
performing the task or award 
and its contact information; 
(dd) the total amount of 
Federal funds expected to be pro-
vided to the task or award over 
its lifetime and the amount of 
funds expected to be provided in
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each fiscal year in which the 
work of the task or award is on-
going; 
(ee) 
any 
restrictions 
at-
tached to the task or award that 
would prevent the sharing with 
the general public of any or all of 
the information required by this 
subsection, and the reasons for 
such restrictions; and 
(ff) such other information 
as may be determined to be ap-
propriate; and 
(ii) 1 or more websites upon which all 
or part of the repository of Federal re-
search and development shall be made 
available to and searchable by Federal 
agencies and non-Federal entities, includ-
ing the general public, to facilitate—
(I) the coordination of Federal 
research and development activities; 
(II) collaboration among those 
conducting Federal research and de-
velopment;
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(III) the transfer of technology 
among Federal agencies and between 
Federal agencies and non-Federal en-
tities; and 
(IV) access by policymakers and 
the public to information concerning 
Federal research and development ac-
tivities. 
(B) OVERSIGHT.—The Director of the Of-
fice of Management and Budget shall issue any 
guidance determined necessary to ensure that 
agencies provide all information requested 
under this subsection. 
(2) AGENCY
FUNCTIONS.—Any agency that 
funds Federal research and development under this 
subsection shall provide the information required to 
populate the repository in the manner prescribed by 
the Director of the Office of Management and Budg-
et. 
(3) COMMITTEE
FUNCTIONS.—Not later than 
18 months after the date of enactment of this Act, 
working with the Director of the Office of Science 
and Technology Policy, and after consultation with 
interested parties, the Committee shall submit rec-
ommendations to the Director on—
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(A) policies to improve agency reporting of 
information for the repository established under 
this subsection; and 
(B) policies to improve dissemination of 
the results of research performed by Federal 
agencies and federally funded research and de-
velopment centers. 
(4) FUNCTIONS OF THE DIRECTOR.—After sub-
mission of recommendations by the Committee under 
paragraph (3), the Director shall report on the rec-
ommendations of the Committee and Director to 
Congress, in the E-Government report under section 
3606 of title 44 (as added by this Act). 
(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for the de-
velopment, maintenance, and operation of the Gov-
ernmentwide repository and website under this sub-
section—
(A) $2,000,000 in each of the fiscal years 
2003 through 2005; and 
(B) such sums as are necessary in each of 
the fiscal years 2006 and 2007. 
SEC. 208. PRIVACY PROVISIONS. 
(a) PURPOSE.—The purpose of this section is to en-
sure sufficient protections for the privacy of personal in-
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formation as agencies implement citizen-centered elec-
tronic Government. 
(b) PRIVACY IMPACT ASSESSMENTS.—
(1) RESPONSIBILITIES OF AGENCIES.—
(A) IN GENERAL.—An agency shall take 
actions described under subparagraph (B) be-
fore—
(i) developing or procuring informa-
tion technology that collects, maintains, or 
disseminates information that is in an 
identifiable form; or 
(ii) initiating a new collection of infor-
mation that—
(I) will be collected, maintained, 
or disseminated using information 
technology; and 
(II) includes any information in 
an identifiable form permitting the 
physical or online contacting of a spe-
cific individual, if identical questions 
have been posed to, or identical re-
porting requirements imposed on, 10 
or more persons, other than agencies, 
instrumentalities, or employees of the 
Federal Government.
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(B) AGENCY ACTIVITIES.—To the extent 
required under subparagraph (A), each agency 
shall—
(i) conduct a privacy impact assess-
ment; 
(ii) ensure the review of the privacy 
impact assessment by the Chief Informa-
tion Officer, or equivalent official, as deter-
mined by the head of the agency; and 
(iii) if practicable, after completion of 
the review under clause (ii), make the pri-
vacy impact assessment publicly available 
through the website of the agency, publica-
tion in the Federal Register, or other 
means. 
(C) SENSITIVE
INFORMATION.—Subpara-
graph (B)(iii) may be modified or waived for se-
curity reasons, or to protect classified, sensitive, 
or private information contained in an assess-
ment. 
(D) COPY TO DIRECTOR.—Agencies shall 
provide the Director with a copy of the privacy 
impact assessment for each system for which 
funding is requested.
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(2) CONTENTS OF A PRIVACY IMPACT ASSESS-
MENT.—
(A) IN
GENERAL.—The Director shall 
issue guidance to agencies specifying the re-
quired contents of a privacy impact assessment. 
(B) GUIDANCE.—The guidance shall—
(i) ensure that a privacy impact as-
sessment is commensurate with the size of 
the information system being assessed, the 
sensitivity of information that is in an 
identifiable form in that system, and the 
risk of harm from unauthorized release of 
that information; and 
(ii) require that a privacy impact as-
sessment address—
(I) what information is to be col-
lected; 
(II) why the information is being 
collected; 
(III) the intended use of the 
agency of the information; 
(IV) with whom the information 
will be shared; 
(V) what notice or opportunities 
for consent would be provided to indi-
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viduals regarding what information is 
collected and how that information is 
shared; 
(VI) how the information will be 
secured; and 
(VII) 
whether 
a 
system 
of 
records is being created under section 
552a of title 5, United States Code, 
(commonly referred to as the ‘‘Privacy 
Act’’). 
(3) RESPONSIBILITIES
OF
THE
DIRECTOR.—
The Director shall—
(A) develop policies and guidelines for 
agencies on the conduct of privacy impact as-
sessments; 
(B) oversee the implementation of the pri-
vacy impact assessment process throughout the 
Government; and 
(C) require agencies to conduct privacy im-
pact assessments of existing information sys-
tems or ongoing collections of information that 
is in an identifiable form as the Director deter-
mines appropriate. 
(c) 
PRIVACY
PROTECTIONS
ON
AGENCY 
WEBSITES.—
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(1) PRIVACY POLICIES ON WEBSITES.—
(A) GUIDELINES FOR NOTICES.—The Di-
rector shall develop guidance for privacy notices 
on agency websites used by the public. 
(B) CONTENTS.—The guidance shall re-
quire that a privacy notice address, consistent 
with section 552a of title 5, United States 
Code—
(i) what information is to be collected; 
(ii) why the information is being col-
lected; 
(iii) the intended use of the agency of 
the information; 
(iv) with whom the information will be 
shared; 
(v) what notice or opportunities for 
consent would be provided to individuals 
regarding what information is collected 
and how that information is shared; 
(vi) how the information will be se-
cured; and 
(vii) the rights of the individual under 
section 552a of title 5, United States Code 
(commonly referred to as the ‘‘Privacy
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Act’’), and other laws relevant to the pro-
tection of the privacy of an individual. 
(2) PRIVACY POLICIES IN MACHINE-READABLE 
FORMATS.—The Director shall issue guidance re-
quiring agencies to translate privacy policies into a 
standardized machine-readable format. 
(d) 
DEFINITION.—In 
this 
section, 
the 
term 
‘‘identifiable form’’ means any representation of informa-
tion that permits the identity of an individual to whom 
the information applies to be reasonably inferred by either 
direct or indirect means. 
SEC. 209. FEDERAL INFORMATION TECHNOLOGY WORK-
FORCE DEVELOPMENT. 
(a) PURPOSE.—The purpose of this section is to im-
prove the skills of the Federal workforce in using informa-
tion technology to deliver Government information and 
services. 
(b) WORKFORCE DEVELOPMENT.—
(1) IN GENERAL.—In consultation with the Di-
rector of the Office of Management and Budget, the 
Chief Information Officers Council, and the Admin-
istrator of General Services, the Director of the Of-
fice of Personnel Management shall—
(A) analyze, on an ongoing basis, the per-
sonnel needs of the Federal Government related
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to information technology and information re-
source management; 
(B) identify where current information 
technology and information resource manage-
ment training do not satisfy the personnel 
needs described in subparagraph (A); 
(C) oversee the development of curricula, 
training methods, and training priorities that 
correspond to the projected personnel needs of 
the Federal Government related to information 
technology and information resource manage-
ment; and 
(D) assess the training of Federal employ-
ees in information technology disciplines in 
order to ensure that the information resource 
management needs of the Federal Government 
are addressed. 
(2) INFORMATION TECHNOLOGY TRAINING PRO-
GRAMS.—The head of each Executive agency, after 
consultation with the Director of the Office of Per-
sonnel Management, the Chief Information Officers 
Council, and the Administrator of General Services, 
shall establish and operate information technology 
training programs consistent with the requirements 
of this subsection. Such programs shall—
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(A) have curricula covering a broad range 
of 
information 
technology 
disciplines 
cor-
responding to the specific information tech-
nology and information resource management 
needs of the agency involved; 
(B) be developed and applied according to 
rigorous standards; and 
(C) be designed to maximize efficiency, 
through the use of self-paced courses, online 
courses, on-the-job training, and the use of re-
mote instructors, wherever such features can be 
applied without reducing the effectiveness of the 
training or negatively impacting academic 
standards. 
(3) GOVERNMENTWIDE POLICIES AND EVALUA-
TION.—The Director of the Office of Personnel 
Management, in coordination with the Director of 
the Office of Management and Budget, shall issue 
policies to promote the development of performance 
standards for training and uniform implementation 
of this subsection by Executive agencies, with due 
regard for differences in program requirements 
among agencies that may be appropriate and war-
ranted in view of the agency mission. The Director 
of the Office of Personnel Management shall evalu-
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ate the implementation of the provisions of this sub-
section by Executive agencies. 
(4) CHIEF
INFORMATION
OFFICER
AUTHORI-
TIES
AND
RESPONSIBILITIES.—Subject to the au-
thority, direction, and control of the head of an Ex-
ecutive agency, the chief information officer of such 
agency shall carry out all powers, functions, and du-
ties of the head of the agency with respect to imple-
mentation of this subsection. The chief information 
officer shall ensure that the policies of the agency 
head established in accordance with this subsection 
are implemented throughout the agency. 
(5) INFORMATION TECHNOLOGY TRAINING RE-
PORTING.—The Director of the Office of Manage-
ment and Budget shall ensure that the heads of Ex-
ecutive agencies collect and maintain standardized 
information on the information technology and infor-
mation resources management workforce related to 
the implementation of this subsection. 
(6) AUTHORITY
TO
DETAIL
EMPLOYEES
TO 
NON-FEDERAL
EMPLOYERS.—In carrying out the 
preceding provisions of this subsection, the Director 
of the Office of Personnel Management may provide 
for a program under which a Federal employee may 
be detailed to a non-Federal employer. The Director
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of the Office of Personnel Management shall pre-
scribe regulations for such program, including the 
conditions for service and duties as the Director con-
siders necessary. 
(7) COORDINATION PROVISION.—An assignment 
described in section 3703 of title 5, United States 
Code, may not be made unless a program under 
paragraph (6) is established, and the assignment is 
made in accordance with the requirements of such 
program. 
(8) EMPLOYEE PARTICIPATION.—Subject to in-
formation resource management needs and the limi-
tations imposed by resource needs in other occupa-
tional areas, and consistent with their overall work-
force development strategies, agencies shall encour-
age employees to participate in occupational infor-
mation technology training. 
(9) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the Of-
fice of Personnel Management for the implementa-
tion of this subsection, $15,000,000 in fiscal year 
2003, and such sums as are necessary for each fiscal 
year thereafter. 
(10) EXECUTIVE AGENCY DEFINED.—For pur-
poses of this subsection, the term ‘‘Executive agen-
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cy’’ has the meaning given the term ‘‘agency’’ under 
section 3701 of title 5, United States Code (as 
added by subsection (c)). 
(c) INFORMATION TECHNOLOGY EXCHANGE PRO-
GRAM.—
(1) IN GENERAL.—Subpart B of part III of 
title 5, United States Code, is amended by adding 
at the end the following: 
‘‘CHAPTER 37—INFORMATION 
TECHNOLOGY EXCHANGE PROGRAM
‘‘Sec. 
‘‘3701. Definitions. 
‘‘3702. General provisions. 
‘‘3703. Assignment of employees to private sector organizations. 
‘‘3704. Assignment of employees from private sector organizations. 
‘‘3705. Application to Office of the Chief Technology Officer of the District of 
Columbia. 
‘‘3706. Reporting requirement. 
‘‘3707. Regulations.
‘‘§ 3701. Definitions 
‘‘For purposes of this chapter—
‘‘(1) the term ‘agency’ means an Executive 
agency, but does not include the General Accounting 
Office; and 
‘‘(2) the term ‘detail’ means—
‘‘(A) the assignment or loan of an em-
ployee of an agency to a private sector organi-
zation without a change of position from the 
agency that employs the individual, or
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‘‘(B) the assignment or loan of an em-
ployee of a private sector organization to an 
agency without a change of position from the 
private sector organization that employs the in-
dividual, 
whichever is appropriate in the context in which 
such term is used. 
‘‘§ 3702. General provisions 
‘‘(a) ASSIGNMENT AUTHORITY.—On request from or 
with the agreement of a private sector organization, and 
with the consent of the employee concerned, the head of 
an agency may arrange for the assignment of an employee 
of the agency to a private sector organization or an em-
ployee of a private sector organization to the agency. An 
eligible employee is an individual who—
‘‘(1) works in the field of information tech-
nology management; 
‘‘(2) is considered an exceptional performer by 
the individual’s current employer; and 
‘‘(3) is expected to assume increased informa-
tion technology management responsibilities in the 
future. 
An employee of an agency shall be eligible to participate 
in this program only if the employee is employed at the 
GS–11 level or above (or equivalent) and is serving under
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a career or career-conditional appointment or an appoint-
ment of equivalent tenure in the excepted service, and ap-
plicable requirements of section 209(b) of the E-Govern-
ment Act of 2002 are met with respect to the proposed 
assignment of such employee. 
‘‘(b) AGREEMENTS.—Each agency that exercises its 
authority under this chapter shall provide for a written 
agreement between the agency and the employee con-
cerned regarding the terms and conditions of the employ-
ee’s assignment. In the case of an employee of the agency, 
the agreement shall—
‘‘(1) require the employee to serve in the civil 
service, upon completion of the assignment, for a pe-
riod equal to the length of the assignment; and 
‘‘(2) provide that, in the event the employee 
fails to carry out the agreement (except for good and 
sufficient reason, as determined by the head of the 
agency from which assigned) the employee shall be 
liable to the United States for payment of all ex-
penses of the assignment. 
An amount under paragraph (2) shall be treated as a debt 
due the United States. 
‘‘(c) TERMINATION.—Assignments may be termi-
nated by the agency or private sector organization con-
cerned for any reason at any time.
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‘‘(d) DURATION.—Assignments under this chapter 
shall be for a period of between 3 months and 1 year, 
and may be extended in 3-month increments for a total 
of not more than 1 additional year, except that no assign-
ment under this chapter may commence after the end of 
the 5-year period beginning on the date of the enactment 
of this chapter. 
‘‘(e) ASSISTANCE.—The Chief Information Officers 
Council, by agreement with the Office of Personnel Man-
agement, may assist in the administration of this chapter, 
including by maintaining lists of potential candidates for 
assignment under this chapter, establishing mentoring re-
lationships for the benefit of individuals who are given as-
signments under this chapter, and publicizing the pro-
gram. 
‘‘(f) CONSIDERATIONS.—In exercising any authority 
under this chapter, an agency shall take into consider-
ation—
‘‘(1) the need to ensure that small business con-
cerns are appropriately represented with respect to 
the assignments described in sections 3703 and 
3704, respectively; and 
‘‘(2) how assignments described in section 3703 
might best be used to help meet the needs of the
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agency for the training of employees in information 
technology management. 
‘‘§ 3703. Assignment of employees to private sector or-
ganizations 
‘‘(a) IN GENERAL.—An employee of an agency as-
signed to a private sector organization under this chapter 
is deemed, during the period of the assignment, to be on 
detail to a regular work assignment in his agency. 
‘‘(b) COORDINATION WITH CHAPTER 81.—Notwith-
standing any other provision of law, an employee of an 
agency assigned to a private sector organization under this 
chapter is entitled to retain coverage, rights, and benefits 
under subchapter I of chapter 81, and employment during 
the assignment is deemed employment by the United 
States, except that, if the employee or the employee’s de-
pendents receive from the private sector organization any 
payment under an insurance policy for which the premium 
is wholly paid by the private sector organization, or other 
benefit of any kind on account of the same injury or death, 
then, the amount of such payment or benefit shall be cred-
ited against any compensation otherwise payable under 
subchapter I of chapter 81. 
‘‘(c) REIMBURSEMENTS.—The assignment of an em-
ployee to a private sector organization under this chapter 
may be made with or without reimbursement by the pri-
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vate sector organization for the travel and transportation 
expenses to or from the place of assignment, subject to 
the same terms and conditions as apply with respect to 
an employee of a Federal agency or a State or local gov-
ernment under section 3375, and for the pay, or a part 
thereof, of the employee during assignment. Any reim-
bursements shall be credited to the appropriation of the 
agency used for paying the travel and transportation ex-
penses or pay. 
‘‘(d) TORT LIABILITY; SUPERVISION.—The Federal 
Tort Claims Act and any other Federal tort liability stat-
ute apply to an employee of an agency assigned to a pri-
vate sector organization under this chapter. The super-
vision of the duties of an employee of an agency so as-
signed to a private sector organization may be governed 
by an agreement between the agency and the organization. 
‘‘(e) SMALL BUSINESS CONCERNS.—
‘‘(1) IN GENERAL.—The head of each agency 
shall take such actions as may be necessary to en-
sure that, of the assignments made under this chap-
ter from such agency to private sector organizations 
in each year, at least 20 percent are to small busi-
ness concerns. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
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‘‘(A) the term ‘small business concern’ 
means a business concern that satisfies the 
definitions and standards specified by the Ad-
ministrator of the Small Business Administra-
tion under section 3(a)(2) of the Small Busi-
ness Act (as from time to time amended by the 
Administrator); 
‘‘(B) the term ‘year’ refers to the 12-
month period beginning on the date of the en-
actment of this chapter, and each succeeding 
12-month period in which any assignments 
under this chapter may be made; and 
‘‘(C) the assignments ‘made’ in a year are 
those commencing in such year. 
‘‘(3) REPORTING
REQUIREMENT.—An agency 
which fails to comply with paragraph (1) in a year 
shall, within 90 days after the end of such year, sub-
mit a report to the Committees on Government Re-
form and Small Business of the House of Represent-
atives and the Committees on Governmental Affairs 
and Small Business of the Senate. The report shall 
include—
‘‘(A) the total number of assignments 
made under this chapter from such agency to 
private sector organizations in the year;
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‘‘(B) of that total number, the number 
(and percentage) made to small business con-
cerns; and 
‘‘(C) the reasons for the agency’s non-
compliance with paragraph (1). 
‘‘(4) EXCLUSION.—This subsection shall not 
apply to an agency in any year in which it makes 
fewer than 5 assignments under this chapter to pri-
vate sector organizations. 
‘‘§ 3704. Assignment of employees from private sector 
organizations 
‘‘(a) IN GENERAL.—An employee of a private sector 
organization assigned to an agency under this chapter is 
deemed, during the period of the assignment, to be on de-
tail to such agency. 
‘‘(b) TERMS AND CONDITIONS.—An employee of a 
private sector organization assigned to an agency under 
this chapter—
‘‘(1) may continue to receive pay and benefits 
from the private sector organization from which he 
is assigned; 
‘‘(2) is deemed, notwithstanding subsection (a), 
to be an employee of the agency for the purposes 
of—
‘‘(A) chapter 73;
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‘‘(B) sections 201, 203, 205, 207, 208, 
209, 603, 606, 607, 643, 654, 1905, and 1913 
of title 18; 
‘‘(C) sections 1343, 1344, and 1349(b) of 
title 31; 
‘‘(D) the Federal Tort Claims Act and any 
other Federal tort liability statute; 
‘‘(E) the Ethics in Government Act of 
1978; 
‘‘(F) section 1043 of the Internal Revenue 
Code of 1986; and 
‘‘(G) section 27 of the Office of Federal 
Procurement Policy Act; 
‘‘(3) may not have access to any trade secrets 
or to any other nonpublic information which is of 
commercial value to the private sector organization 
from which he is assigned; and 
‘‘(4) is subject to such regulations as the Presi-
dent may prescribe. 
The supervision of an employee of a private sector organi-
zation assigned to an agency under this chapter may be 
governed by agreement between the agency and the private 
sector organization concerned. Such an assignment may 
be made with or without reimbursement by the agency for 
the pay, or a part thereof, of the employee during the pe-
HR 2458 RDS 
riod of assignment, or for any contribution of the private 
sector organization to employee benefit systems. 
‘‘(c) COORDINATION WITH CHAPTER 81.—An em-
ployee of a private sector organization assigned to an 
agency under this chapter who suffers disability or dies 
as a result of personal injury sustained while performing 
duties during the assignment shall be treated, for the pur-
pose of subchapter I of chapter 81, as an employee as de-
fined by section 8101 who had sustained the injury in the 
performance of duty, except that, if the employee or the 
employee’s dependents receive from the private sector or-
ganization any payment under an insurance policy for 
which the premium is wholly paid by the private sector 
organization, or other benefit of any kind on account of 
the same injury or death, then, the amount of such pay-
ment or benefit shall be credited against any compensation 
otherwise payable under subchapter I of chapter 81. 
‘‘(d) PROHIBITION AGAINST CHARGING CERTAIN 
COSTS TO THE FEDERAL GOVERNMENT.—A private sec-
tor organization may not charge the Federal Government, 
as direct or indirect costs under a Federal contract, the 
costs of pay or benefits paid by the organization to an 
employee assigned to an agency under this chapter for the 
period of the assignment.
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‘‘§ 3705. Application to Office of the Chief Technology 
Officer of the District of Columbia 
‘‘(a) IN GENERAL.—The Chief Technology Officer of 
the District of Columbia may arrange for the assignment 
of an employee of the Office of the Chief Technology Offi-
cer to a private sector organization, or an employee of a 
private sector organization to such Office, in the same 
manner as the head of an agency under this chapter. 
‘‘(b) TERMS
AND
CONDITIONS.—An assignment 
made pursuant to subsection (a) shall be subject to the 
same terms and conditions as an assignment made by the 
head of an agency under this chapter, except that in apply-
ing such terms and conditions to an assignment made pur-
suant to subsection (a), any reference in this chapter to 
a provision of law or regulation of the United States shall 
be deemed to be a reference to the applicable provision 
of law or regulation of the District of Columbia, including 
the applicable provisions of the District of Columbia Gov-
ernment Comprehensive Merit Personnel Act of 1978 (sec. 
1–601.01 et seq., D.C. Official Code) and section 601 of 
the District of Columbia Campaign Finance Reform and 
Conflict of Interest Act (sec. 1–1106.01, D.C. Official 
Code). 
‘‘(c) DEFINITION.—For purposes of this section, the 
term ‘Office of the Chief Technology Officer’ means the 
office established in the executive branch of the govern-
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ment of the District of Columbia under the Office of the 
Chief Technology Officer Establishment Act of 1998 (sec. 
1–1401 et seq., D.C. Official Code). 
‘‘§ 3706. Reporting requirement 
‘‘(a) IN GENERAL.—The Office of Personnel Manage-
ment shall, not later than April 30 and October 31 of each 
year, prepare and submit to the Committee on Govern-
ment Reform of the House of Representatives and the 
Committee on Governmental Affairs of the Senate a semi-
annual report summarizing the operation of this chapter 
during the immediately preceding 6-month period ending 
on March 31 and September 30, respectively. 
‘‘(b) CONTENT.—Each report shall include, with re-
spect to the 6-month period to which such report relates—
‘‘(1) the total number of individuals assigned 
to, and the total number of individuals assigned 
from, each agency during such period; 
‘‘(2) a brief description of each assignment in-
cluded under paragraph (1), including—
‘‘(A) the name of the assigned individual, 
as well as the private sector organization and 
the agency (including the specific bureau or 
other agency component) to or from which such 
individual was assigned;
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‘‘(B) the respective positions to and from 
which the individual was assigned, including the 
duties and responsibilities and the pay grade or 
level associated with each; and 
‘‘(C) the duration and objectives of the in-
dividual’s assignment; and 
‘‘(3) such other information as the Office con-
siders appropriate. 
‘‘(c) PUBLICATION.—A copy of each report submitted 
under subsection (a)—
‘‘(1) shall be published in the Federal Register; 
and 
‘‘(2) shall be made publicly available on the 
Internet. 
‘‘(d) AGENCY COOPERATION.—On request of the Of-
fice, agencies shall furnish such information and reports 
as the Office may require in order to carry out this sec-
tion. 
‘‘§ 3707. Regulations 
‘‘The Director of the Office of Personnel Manage-
ment shall prescribe regulations for the administration of 
this chapter.’’. 
(2) REPORT.—Not later than 4 years after the 
date of the enactment of this Act, the General Ac-
counting Office shall prepare and submit to the
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Committee on Government Reform of the House of 
Representatives and the Committee on Govern-
mental Affairs of the Senate a report on the oper-
ation of chapter 37 of title 5, United States Code 
(as added by this subsection). Such report shall in-
clude—
(A) an evaluation of the effectiveness of 
the program established by such chapter; and 
(B) a recommendation as to whether such 
program should be continued (with or without 
modification) or allowed to lapse. 
(3) CLERICAL AMENDMENT.—The analysis for 
part III of title 5, United States Code, is amended 
by inserting after the item relating to chapter 35 the 
following:
‘‘37. Information Technology Exchange Program .................................... 3701’’.
(d) ETHICS PROVISIONS.—
(1) ONE-YEAR RESTRICTION ON CERTAIN COM-
MUNICATIONS.—Section 207(c)(2)(A) of title 18, 
United States Code, is amended—
(A) by striking ‘‘or’’ at the end of clause 
(iii); 
(B) by striking the period at the end of 
clause (iv) and inserting ‘‘; or’’; and 
(C) by adding at the end the following:
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‘‘(v) assigned from a private sector organi-
zation to an agency under chapter 37 of title 
5.’’. 
(2) DISCLOSURE OF CONFIDENTIAL INFORMA-
TION.—Section 1905 of title 18, United States Code, 
is amended by inserting ‘‘or being an employee of a 
private sector organization who is or was assigned to 
an agency under chapter 37 of title 5,’’ after ‘‘(15 
U.S.C. 1311–1314),’’. 
(3) CONTRACT ADVICE.—Section 207 of title 
18, United States Code, is amended by adding at 
the end the following: 
‘‘(l) CONTRACT ADVICE
BY FORMER DETAILS.—
Whoever, being an employee of a private sector organiza-
tion assigned to an agency under chapter 37 of title 5, 
within one year after the end of that assignment, know-
ingly represents or aids, counsels, or assists in rep-
resenting any other person (except the United States) in 
connection with any contract with that agency shall be 
punished as provided in section 216 of this title.’’. 
(4) RESTRICTION
ON
DISCLOSURE
OF
PRO-
CUREMENT INFORMATION.—Section 27 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 423) 
is amended in subsection (a)(1) by adding at the end 
the following new sentence: ‘‘In the case of an em-
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ployee of a private sector organization assigned to 
an agency under chapter 37 of title 5, United States 
Code, in addition to the restriction in the preceding 
sentence, such employee shall not, other than as pro-
vided by law, knowingly disclose contractor bid or 
proposal information or source selection information 
during the three-year period after the end of the as-
signment of such employee.’’. 
(e) REPORT ON EXISTING EXCHANGE PROGRAMS.—
(1) EXCHANGE PROGRAM DEFINED.—For pur-
poses of this subsection, the term ‘‘exchange pro-
gram’’ means an executive exchange program, the 
program under subchapter VI of chapter 33 of title 
5, United States Code, and any other program which 
allows for—
(A) the assignment of employees of the 
Federal Government to non-Federal employers; 
(B) the assignment of employees of non-
Federal employers to the Federal Government; 
or 
(C) both. 
(2) REPORTING REQUIREMENT.—Not later than 
1 year after the date of the enactment of this Act, 
the Office of Personnel Management shall prepare 
and submit to the Committee on Government Re-
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form of the House of Representatives and the Com-
mittee on Governmental Affairs of the Senate a re-
port identifying all existing exchange programs. 
(3) SPECIFIC INFORMATION.—The report shall, 
for each such program, include—
(A) a brief description of the program, in-
cluding its size, eligibility requirements, and 
terms or conditions for participation; 
(B) specific citation to the law or other au-
thority under which the program is established; 
(C) the names of persons to contact for 
more information, and how they may be 
reached; and 
(D) any other information which the Office 
considers appropriate. 
(f) REPORT ON THE ESTABLISHMENT OF A GOVERN-
MENTWIDE INFORMATION TECHNOLOGY TRAINING PRO-
GRAM.—
(1) IN GENERAL.—Not later January 1, 2003, 
the Office of Personnel Management, in consultation 
with the Chief Information Officers Council and the 
Administrator of General Services, shall review and 
submit to the Committee on Government Reform of 
the House of Representatives and the Committee on
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Governmental Affairs of the Senate a written report 
on the following: 
(A) The adequacy of any existing informa-
tion technology training programs available to 
Federal employees on a Governmentwide basis. 
(B)(i) If one or more such programs al-
ready exist, recommendations as to how they 
might be improved. 
(ii) If no such program yet exists, rec-
ommendations as to how such a program might 
be designed and established. 
(C) With respect to any recommendations 
under subparagraph (B), how the program 
under chapter 37 of title 5, United States Code, 
might be used to help carry them out. 
(2) COST ESTIMATE.—The report shall, for any 
recommended program (or improvements) under 
paragraph (1)(B), include the estimated costs associ-
ated with the implementation and operation of such 
program as so established (or estimated difference in 
costs of any such program as so improved). 
(g) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) AMENDMENTS TO TITLE 5, UNITED STATES 
CODE.—Title 5, United States Code, is amended—
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(A) in section 3111, by adding at the end 
the following: 
‘‘(d) Notwithstanding section 1342 of title 31, the 
head of an agency may accept voluntary service for the 
United States under chapter 37 of this title and regula-
tions of the Office of Personnel Management.’’; 
(B) in section 4108, by striking subsection 
(d); and 
(C) in section 7353(b), by adding at the 
end the following: 
‘‘(4) Nothing in this section precludes an employee 
of a private sector organization, while assigned to an agen-
cy under chapter 37, from continuing to receive pay and 
benefits from such organization in accordance with such 
chapter.’’. 
(2) AMENDMENT TO TITLE 18, UNITED STATES 
CODE.—Section 209 of title 18, United States Code, 
is amended by adding at the end the following: 
‘‘(g)(1) This section does not prohibit an employee 
of a private sector organization, while assigned to an agen-
cy under chapter 37 of title 5, from continuing to receive 
pay and benefits from such organization in accordance 
with such chapter. 
‘‘(2) For purposes of this subsection, the term 
‘agency’ means an agency (as defined by section 3701 of
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title 5) and the Office of the Chief Technology Officer of 
the District of Columbia.’’. 
(3) OTHER AMENDMENTS.—Section 125(c)(1) 
of Public Law 100–238 (5 U.S.C. 8432 note) is 
amended—
(A) in subparagraph (B), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (C), by striking 
‘‘and’’ at the end and inserting ‘‘or’’; and 
(C) by adding at the end the following: 
‘‘(D) an individual assigned from a Fed-
eral agency to a private sector organization 
under chapter 37 of title 5, United States Code; 
and’’.
SEC. 210. SHARE-IN-SAVINGS INITIATIVES. 
(a) DEFENSE CONTRACTS.—(1) Chapter 137 of title 
10, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 2332. Share-in-savings contracts 
‘‘(a) AUTHORITY TO ENTER INTO SHARE-IN-SAV-
INGS CONTRACTS.—(1) The head of an agency may enter 
into a share-in-savings contract for information technology 
(as defined in section 11101(6) of title 40) in which the 
Government awards a contract to improve mission-related 
or administrative processes or to accelerate the achieve-
HR 2458 RDS 
ment of its mission and share with the contractor in sav-
ings achieved through contract performance. 
‘‘(2)(A) Except as provided in subparagraph (B), a 
share-in-savings contract shall be awarded for a period of 
not more than five years. 
‘‘(B) A share-in-savings contract may be awarded for 
a period greater than five years, but not more than 10 
years, if the head of the agency determines in writing prior 
to award of the contract that—
‘‘(i) the level of risk to be assumed and the in-
vestment to be undertaken by the contractor is likely 
to inhibit the government from obtaining the needed 
information technology competitively at a fair and 
reasonable price if the contract is limited in duration 
to a period of five years or less; and 
‘‘(ii) usage of the information technology to be 
acquired is likely to continue for a period of time 
sufficient to generate reasonable benefit for the gov-
ernment. 
‘‘(3) Contracts awarded pursuant to the authority of 
this section shall, to the maximum extent practicable, be 
performance-based contracts that identify objective out-
comes and contain performance standards that will be 
used to measure achievement and milestones that must 
be met before payment is made.
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‘‘(4) Contracts awarded pursuant to the authority of 
this section shall include a provision containing a quantifi-
able baseline that is to be the basis upon which a savings 
share ratio is established that governs the amount of pay-
ment a contractor is to receive under the contract. Before 
commencement of performance of such a contract, the sen-
ior procurement executive of the agency shall determine 
in writing that the terms of the provision are quantifiable 
and will likely yield value to the Government. 
‘‘(5)(A) The head of the agency may retain savings 
realized through the use of a share-in-savings contract 
under this section that are in excess of the total amount 
of savings paid to the contractor under the contract, but 
may not retain any portion of such savings that is attrib-
utable to a decrease in the number of civilian employees 
of the Federal Government performing the function. Ex-
cept as provided in subparagraph (B), savings shall be 
credited to the appropriation or fund against which 
charges were made to carry out the contract and shall be 
used for information technology. 
‘‘(B) Amounts retained by the agency under this sub-
section shall—
‘‘(i) without further appropriation, remain 
available until expended; and
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‘‘(ii) be applied first to fund any contingent li-
abilities associated with share-in-savings procure-
ments that are not fully funded. 
‘‘(b) CANCELLATION
AND TERMINATION.—(1) If 
funds are not made available for the continuation of a 
share-in-savings contract entered into under this section 
in a subsequent fiscal year, the contract shall be canceled 
or terminated. The costs of cancellation or termination 
may be paid out of—
‘‘(A) appropriations available for the perform-
ance of the contract; 
‘‘(B) appropriations available for acquisition of 
the information technology procured under the con-
tract, and not otherwise obligated; or 
‘‘(C) funds subsequently appropriated for pay-
ments of costs of cancellation or termination, subject 
to the limitations in paragraph (3). 
‘‘(2) The amount payable in the event of cancellation 
or termination of a share-in-savings contract shall be ne-
gotiated with the contractor at the time the contract is 
entered into. 
‘‘(3)(A) Subject to subparagraph (B), the head of an 
agency may enter into share-in-savings contracts under 
this section in any given fiscal year even if funds are not 
made specifically available for the full costs of cancellation
HR 2458 RDS 
or termination of the contract if funds are available and 
sufficient to make payments with respect to the first fiscal 
year of the contract and the following conditions are met 
regarding the funding of cancellation and termination li-
ability: 
‘‘(i) The amount of unfunded contingent liabil-
ity for the contract does not exceed the lesser of—
‘‘(I) 25 percent of the estimated costs of a 
cancellation or termination; or 
‘‘(II) $5,000,000. 
‘‘(ii) Unfunded contingent liability in excess of 
$1,000,000 has been approved by the Director of the 
Office of Management and Budget or the Director’s 
designee.
‘‘(B) The aggregate number of share-in-savings con-
tracts that may be entered into under subparagraph (A) 
by all agencies to which this chapter applies in a fiscal 
year may not exceed 5 in each of fiscal years 2003, 2004, 
and 2005. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘contractor’ means a private en-
tity that enters into a contract with an agency. 
‘‘(2) The term ‘savings’ means—
‘‘(A) monetary savings to an agency; or
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‘‘(B) savings in time or other benefits real-
ized by the agency, including enhanced revenues 
(other than enhanced revenues from the collec-
tion of fees, taxes, debts, claims, or other 
amounts owed the Federal Government). 
‘‘(3) The term ‘share-in-savings contract’ means 
a contract under which—
‘‘(A) a contractor provides solutions for—
‘‘(i) improving the agency’s mission-
related or administrative processes; or 
‘‘(ii) accelerating the achievement of 
agency missions; and 
‘‘(B) the head of the agency pays the con-
tractor an amount equal to a portion of the sav-
ings derived by the agency from—
‘‘(i) any improvements in mission-re-
lated or administrative processes that re-
sult from implementation of the solution; 
or 
‘‘(ii) acceleration of achievement of 
agency missions. 
‘‘(d) TERMINATION.—No share-in-savings contracts 
may be entered into under this section after September 
30, 2005.’’.
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(2) The table of sections at the beginning of such 
chapter is amended by adding at the end of the following 
new item:
‘‘2332. Share-in-savings contracts.’’.
(b) OTHER CONTRACTS.—Title III of the Federal 
Property and Administrative Services Act of 1949 is 
amended by adding at the end the following: 
‘‘SEC. 317. SHARE-IN-SAVINGS CONTRACTS. 
‘‘(a) AUTHORITY TO ENTER INTO SHARE-IN-SAV-
INGS CONTRACTS.—(1) The head of an executive agency 
may enter into a share-in-savings contract for information 
technology (as defined in section 11101(6) of title 40, 
United States Code) in which the Government awards a 
contract to improve mission-related or administrative 
processes or to accelerate the achievement of its mission 
and share with the contractor in savings achieved through 
contract performance. 
‘‘(2)(A) Except as provided in subparagraph (B), a 
share-in-savings contract shall be awarded for a period of 
not more than five years. 
‘‘(B) A share-in-savings contract may be awarded for 
a period greater than five years, but not more than 10 
years, if the head of the agency determines in writing prior 
to award of the contract that—
‘‘(i) the level of risk to be assumed and the in-
vestment to be undertaken by the contractor is likely
HR 2458 RDS 
to inhibit the government from obtaining the needed 
information technology competitively at a fair and 
reasonable price if the contract is limited in duration 
to a period of five years or less; and 
‘‘(ii) usage of the information technology to be 
acquired is likely to continue for a period of time 
sufficient to generate reasonable benefit for the gov-
ernment. 
‘‘(3) Contracts awarded pursuant to the authority of 
this section shall, to the maximum extent practicable, be 
performance-based contracts that identify objective out-
comes and contain performance standards that will be 
used to measure achievement and milestones that must 
be met before payment is made.
‘‘(4) Contracts awarded pursuant to the authority of 
this section shall include a provision containing a quantifi-
able baseline that is to be the basis upon which a savings 
share ratio is established that governs the amount of pay-
ment a contractor is to receive under the contract. Before 
commencement of performance of such a contract, the sen-
ior procurement executive of the agency shall determine 
in writing that the terms of the provision are quantifiable 
and will likely yield value to the Government. 
‘‘(5)(A) The head of the agency may retain savings 
realized through the use of a share-in-savings contract
HR 2458 RDS 
under this section that are in excess of the total amount 
of savings paid to the contractor under the contract, but 
may not retain any portion of such savings that is attrib-
utable to a decrease in the number of civilian employees 
of the Federal Government performing the function. Ex-
cept as provided in subparagraph (B), savings shall be 
credited to the appropriation or fund against which 
charges were made to carry out the contract and shall be 
used for information technology. 
‘‘(B) Amounts retained by the agency under this sub-
section shall—
‘‘(i) without further appropriation, remain 
available until expended; and 
‘‘(ii) be applied first to fund any contingent li-
abilities associated with share-in-savings procure-
ments that are not fully funded. 
‘‘(b) CANCELLATION
AND TERMINATION.—(1) If 
funds are not made available for the continuation of a 
share-in-savings contract entered into under this section 
in a subsequent fiscal year, the contract shall be canceled 
or terminated. The costs of cancellation or termination 
may be paid out of—
‘‘(A) appropriations available for the perform-
ance of the contract;
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‘‘(B) appropriations available for acquisition of 
the information technology procured under the con-
tract, and not otherwise obligated; or 
‘‘(C) funds subsequently appropriated for pay-
ments of costs of cancellation or termination, subject 
to the limitations in paragraph (3). 
‘‘(2) The amount payable in the event of cancellation 
or termination of a share-in-savings contract shall be ne-
gotiated with the contractor at the time the contract is 
entered into. 
‘‘(3)(A) Subject to subparagraph (B), the head of an 
executive agency may enter into share-in-savings contracts 
under this section in any given fiscal year even if funds 
are not made specifically available for the full costs of can-
cellation or termination of the contract if funds are avail-
able and sufficient to make payments with respect to the 
first fiscal year of the contract and the following condi-
tions are met regarding the funding of cancellation and 
termination liability: 
‘‘(i) The amount of unfunded contingent liabil-
ity for the contract does not exceed the lesser of—
‘‘(I) 25 percent of the estimated costs of a 
cancellation or termination; or 
‘‘(II) $5,000,000.
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‘‘(ii) Unfunded contingent liability in excess of 
$1,000,000 has been approved by the Director of the 
Office of Management and Budget or the Director’s 
designee.
‘‘(B) The aggregate number of share-in-savings con-
tracts that may be entered into under subparagraph (A) 
by all executive agencies to which this chapter applies in 
a fiscal year may not exceed 5 in each of fiscal years 2003, 
2004, and 2005. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘contractor’ means a private en-
tity that enters into a contract with an agency. 
‘‘(2) The term ‘savings’ means—
‘‘(A) monetary savings to an agency; or 
‘‘(B) savings in time or other benefits real-
ized by the agency, including enhanced revenues 
(other than enhanced revenues from the collec-
tion of fees, taxes, debts, claims, or other 
amounts owed the Federal Government). 
‘‘(3) The term ‘share-in-savings contract’ means 
a contract under which—
‘‘(A) a contractor provides solutions for—
‘‘(i) improving the agency’s mission-
related or administrative processes; or
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‘‘(ii) accelerating the achievement of 
agency missions; and 
‘‘(B) the head of the agency pays the con-
tractor an amount equal to a portion of the sav-
ings derived by the agency from—
‘‘(i) any improvements in mission-re-
lated or administrative processes that re-
sult from implementation of the solution; 
or 
‘‘(ii) acceleration of achievement of 
agency missions. 
‘‘(d) TERMINATION.—No share-in-savings contracts 
may be entered into under this section after September 
30, 2005.’’.
(c) DEVELOPMENT OF INCENTIVES.—The Director 
of the Office of Management and Budget shall, in con-
sultation with the Committee on Governmental Affairs of 
the Senate, the Committee on Government Reform of the 
House of Representatives, and executive agencies, develop 
techniques to permit an executive agency to retain a por-
tion of the savings (after payment of the contractor’s 
share of the savings) derived from share-in-savings con-
tracts as funds are appropriated to the agency in future 
fiscal years.
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(d) REGULATIONS.—Not later than 270 days after 
the date of the enactment of this Act, the Federal Acquisi-
tion Regulation shall be revised to implement the provi-
sions enacted by this section. Such revisions shall—
(1) provide for the use of competitive proce-
dures in the selection and award of share-in-savings 
contracts to—
(A) ensure the contractor’s share of sav-
ings reflects the risk involved and market condi-
tions; and 
(B) otherwise yield greatest value to the 
government; and 
(2) allow appropriate regulatory flexibility to fa-
cilitate the use of share-in-savings contracts by exec-
utive agencies, including the use of innovative provi-
sions for technology refreshment and nonstandard 
Federal Acquisition Regulation contract clauses. 
(e) ADDITIONAL GUIDANCE.—The Administrator of 
General Services shall—
(1) identify potential opportunities for the use 
of share-in-savings contracts; and 
(2) in consultation with the Director of the Of-
fice of Management and Budget, provide guidance to 
executive agencies for determining mutually bene-
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ficial savings share ratios and baselines from which 
savings may be measured. 
(f) OMB REPORT TO CONGRESS.—In consultation 
with executive agencies, the Director of the Office of Man-
agement and Budget shall, not later than 2 years after 
the date of the enactment of this Act, submit to Congress 
a report containing—
(1) a description of the number of share-in-sav-
ings contracts entered into by each executive agency 
under by this section and the amendments made by 
this section, and, for each contract identified—
(A) the information technology acquired; 
(B) the total amount of payments made to 
the contractor; and 
(C) the total amount of savings or other 
measurable benefits realized; 
(2) a description of the ability of agencies to de-
termine the baseline costs of a project against which 
savings can be measured; and 
(3) any recommendations, as the Director 
deems appropriate, regarding additional changes in 
law that may be necessary to ensure effective use of 
share-in-savings contracts by executive agencies. 
(g) GAO REPORT TO CONGRESS.—The Comptroller 
General shall, not later than 6 months after the report
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required under subsection (f) is submitted to Congress, 
conduct a review of that report and submit to Congress 
a report containing—
(1) the results of the review; 
(2) an independent assessment by the Comp-
troller General of the effectiveness of the use of 
share-in-savings contracts in improving the mission-
related and administrative processes of the executive 
agencies and the achievement of agency missions; 
and 
(3) a recommendation on whether the authority 
to enter into share-in-savings contracts should be 
continued. 
(h) REPEAL
OF SHARE-IN-SAVINGS PILOT PRO-
GRAM.—
(1) REPEAL.—Section 11521 of title 40, United 
States Code, is repealed. 
(2) CONFORMING AMENDMENTS TO PILOT PRO-
GRAM AUTHORITY.—
(A) Section 11501 of title 40, United 
States Code, is amended—
(i) in the section heading, by striking 
‘‘PROGRAMS’’ 
and 
inserting 
‘‘PROGRAM’’;
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(ii) in subsection (a)(1), by striking 
‘‘conduct pilot programs’’ and inserting 
‘‘conduct a pilot program pursuant to the 
requirements of section 11521 of this 
title’’; 
(iii) in subsection (a)(2), by striking 
‘‘each pilot program’’ and inserting ‘‘the 
pilot program’’; 
(iv) in subsection (b), by striking 
‘‘LIMITATIONS.—’’ and all that follows 
through ‘‘$750,000,000.’’ and inserting the 
following: ‘‘LIMITATION
ON
AMOUNT.—
The total amount obligated for contracts 
entered into under the pilot program con-
ducted under this chapter may not exceed 
$375,000,000.’’; and 
(v) in subsection (c)(1), by striking ‘‘a 
pilot’’ and inserting ‘‘the pilot’’. 
(B) The following provisions of chapter 
115 of such title are each amended by striking 
‘‘a pilot’’ each place it appears and inserting 
‘‘the pilot’’: 
(i) Section 11502(a). 
(ii) Section 11502(b). 
(iii) Section 11503(a).
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(iv) Section 11504. 
(C) Section 11505 of such chapter is 
amended by striking ‘‘programs’’ and inserting 
‘‘program’’. 
(3) ADDITIONAL CONFORMING AMENDMENTS.—
(A) Section 11522 of title 40, United 
States Code, is redesignated as section 11521. 
(B) The chapter heading for chapter 115 
of 
such 
title 
is 
amended 
by 
striking 
‘‘PROGRAMS’’ 
and 
inserting 
‘‘PROGRAM’’. 
(C) The subchapter heading for subchapter 
I and for subchapter II of such chapter are 
each amended by striking ‘‘PROGRAMS’’ and 
inserting ‘‘PROGRAM’’. 
(D) The item relating to subchapter I in 
the table of sections at the beginning of such 
chapter is amended to read as follows:
‘‘SUBCHAPTER I—CONDUCT OF PILOT PROGRAM’’.
(E) The item relating to subchapter II in 
the table of sections at the beginning of such 
chapter is amended to read as follows:
‘‘SUBCHAPTER II—SPECIFIC PILOT PROGRAM’’.
(F) The item relating to section 11501 in 
the table of sections at the beginning of such is
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amended by striking ‘‘programs’’ and inserting 
‘‘program’’. 
(G) The table of sections at the beginning 
of such chapter is amended by striking the item 
relating to section 11521 and redesignating the 
item relating to section 11522 as section 
11521. 
(H) The item relating to chapter 115 in 
the table of chapters for subtitle III of title 40, 
United States Code, is amended to read as fol-
lows:
‘‘115. INFORMATION TECHNOLOGY ACQUISITION PILOT 
PROGRAM ................................................................... 11501’’.
(i) DEFINITIONS.—In this section, the terms 
‘‘contractor’’, ‘‘savings’’, and ‘‘share-in-savings contract’’ 
have the meanings given those terms in section 317 of the 
Federal Property and Administrative Services Act of 1949 
(as added by subsection (b)). 
SEC. 211. AUTHORIZATION FOR ACQUISITION OF INFORMA-
TION TECHNOLOGY BY STATE AND LOCAL 
GOVERNMENTS THROUGH FEDERAL SUPPLY 
SCHEDULES. 
(a) AUTHORITY TO USE CERTAIN SUPPLY SCHED-
ULES.—Section 502 of title 40, United States Code, is 
amended by adding at the end the following new sub-
section:
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‘‘(c) USE OF CERTAIN SUPPLY SCHEDULES.—
‘‘(1) IN
GENERAL.—The Administrator may 
provide for the use by State or local governments of 
Federal supply schedules of the General Services Ad-
ministration for automated data processing equip-
ment (including firmware), software, supplies, sup-
port equipment, and services (as contained in Fed-
eral supply classification code group 70). 
‘‘(2) VOLUNTARY USE.—In any case of the use 
by a State or local government of a Federal supply 
schedule pursuant to paragraph (1), participation by 
a firm that sells to the Federal Government through 
the supply schedule shall be voluntary with respect 
to a sale to the State or local government through 
such supply schedule. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) The term ‘State or local government’ 
includes any State, local, regional, or tribal gov-
ernment, 
or 
any 
instrumentality 
thereof 
(including any local educational agency or insti-
tution of higher education). 
‘‘(B) 
The 
term 
‘tribal 
government’ 
means—
‘‘(i) the governing body of any Indian 
tribe, band, nation, or other organized
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group or community located in the conti-
nental United States (excluding the State 
of Alaska) that is recognized as eligible for 
the special programs and services provided 
by the United States to Indians because of 
their status as Indians, and 
‘‘(ii) any Alaska Native regional or 
village corporation established pursuant to 
the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.). 
‘‘(C) The term ‘local educational agency’ 
has the meaning given that term in section 
8013 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7713). 
‘‘(D) The term ‘institution of higher edu-
cation’ has the meaning given that term in sec-
tion 101(a) of the Higher Education Act of 
1965 (20 U.S.C. 1001(a)).’’. 
(b) PROCEDURES.—Not later than 30 days after the 
date of the enactment of this Act, the Administrator of 
General Services shall establish procedures to implement 
section 501(c) of title 40, United States Code (as added 
by subsection (a)). 
(c) REPORT.—Not later than December 31, 2004, the 
Administrator shall submit to the Committee on Govern-
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ment Reform of the House of Representatives and the 
Committee on Governmental Affairs of the Senate a report 
on the implementation and effects of the amendment made 
by subsection (a). 
SEC. 212. INTEGRATED REPORTING STUDY AND PILOT 
PROJECTS. 
(a) PURPOSES.—The purposes of this section are 
to—
(1) enhance the interoperability of Federal in-
formation systems; 
(2) assist the public, including the regulated 
community, in electronically submitting information 
to agencies under Federal requirements, by reducing 
the burden of duplicate collection and ensuring the 
accuracy of submitted information; and 
(3) enable any person to integrate and obtain 
similar information held by 1 or more agencies 
under 1 or more Federal requirements without vio-
lating the privacy rights of an individual. 
(b) DEFINITIONS.—In this section, the term—
(1) ‘‘agency’’ means an Executive agency as de-
fined under section 105 of title 5, United States 
Code; and 
(2) ‘‘person’’ means any individual, trust, firm, 
joint stock company, corporation (including a gov-
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ernment 
corporation), 
partnership, 
association, 
State, municipality, commission, political subdivision 
of a State, interstate body, or agency or component 
of the Federal Government. 
(c) REPORT.—
(1) IN GENERAL.—Not later than 3 years after 
the date of enactment of this Act, the Director shall 
oversee a study, in consultation with agencies, the 
regulated community, public interest organizations, 
and the public, and submit a report to the Com-
mittee on Governmental Affairs of the Senate and 
the Committee on Government Reform of the House 
of Representatives on progress toward integrating 
Federal information systems across agencies. 
(2) CONTENTS.—The report under this section 
shall—
(A) address the integration of data ele-
ments used in the electronic collection of infor-
mation within databases established under Fed-
eral statute without reducing the quality, acces-
sibility, scope, or utility of the information con-
tained in each database; 
(B) address the feasibility of developing, or 
enabling the development of, software, including 
Internet-based tools, for use by reporting per-
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sons in assembling, documenting, and validating 
the accuracy of information electronically sub-
mitted to agencies under nonvoluntary, statu-
tory, and regulatory requirements; 
(C) address the feasibility of developing a 
distributed information system involving, on a 
voluntary basis, at least 2 agencies, that—
(i) provides consistent, dependable, 
and timely public access to the information 
holdings of 1 or more agencies, or some 
portion of such holdings, without requiring 
public users to know which agency holds 
the information; and 
(ii) allows the integration of public in-
formation held by the participating agen-
cies; 
(D) address the feasibility of incorporating 
other elements related to the purposes of this 
section at the discretion of the Director; and 
(E) make any recommendations that the 
Director deems appropriate on the use of inte-
grated reporting and information systems, to 
reduce the burden on reporting and strengthen 
public access to databases within and across 
agencies.
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(d) PILOT PROJECTS TO ENCOURAGE INTEGRATED 
COLLECTION AND MANAGEMENT OF DATA AND INTER-
OPERABILITY OF FEDERAL INFORMATION SYSTEMS.—
(1) IN GENERAL.—In order to provide input to 
the study under subsection (c), the Director shall 
designate, in consultation with agencies, a series of 
no more than 5 pilot projects that integrate data ele-
ments. The Director shall consult with agencies, the 
regulated community, public interest organizations, 
and the public on the implementation of the pilot 
projects. 
(2) GOALS OF PILOT PROJECTS.—
(A) IN
GENERAL.—Each goal described 
under subparagraph (B) shall be addressed by 
at least 1 pilot project each. 
(B) GOALS.—The goals under this para-
graph are to—
(i) reduce information collection bur-
dens by eliminating duplicative data ele-
ments within 2 or more reporting require-
ments; 
(ii) create interoperability between or 
among public databases managed by 2 or 
more agencies using technologies and tech-
niques that facilitate public access; and
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(iii) develop, or enable the develop-
ment of, software to reduce errors in elec-
tronically submitted information. 
(3) INPUT.—Each pilot project shall seek input 
from users on the utility of the pilot project and 
areas for improvement. To the extent practicable, 
the Director shall consult with relevant agencies and 
State, tribal, and local governments in carrying out 
the report and pilot projects under this section. 
(e) PROTECTIONS.—The activities authorized under 
this section shall afford protections for— 
(1) confidential business information consistent 
with section 552(b)(4) of title 5, United States 
Code, and other relevant law; 
(2) personal privacy information under sections 
552(b) (6) and (7)(C) and 552a of title 5, United 
States Code, and other relevant law; 
(3) other information consistent with section 
552(b)(3) of title 5, United States Code, and other 
relevant law; and 
(4) confidential statistical information collected 
under a confidentiality pledge, solely for statistical 
purposes, consistent with the Office of Management 
and Budget’s Federal Statistical Confidentiality 
Order, and other relevant law.
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SEC. 213. COMMUNITY TECHNOLOGY CENTERS. 
(a) PURPOSES.—The purposes of this section are 
to—
(1) study and enhance the effectiveness of com-
munity technology centers, public libraries, and 
other institutions that provide computer and Inter-
net access to the public; and 
(2) promote awareness of the availability of on-
line government information and services, to users of 
community technology centers, public libraries, and 
other public facilities that provide access to com-
puter technology and Internet access to the public. 
(b) STUDY AND REPORT.—Not later than 2 years 
after the effective date of this title, the Administrator 
shall—
(1) ensure that a study is conducted to evaluate 
the best practices of community technology centers 
that have received Federal funds; and 
(2) submit a report on the study to—
(A) the Committee on Governmental Af-
fairs of the Senate; 
(B) the Committee on Health, Education, 
Labor, and Pensions of the Senate; 
(C) the Committee on Government Reform 
of the House of Representatives; and
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(D) the Committee on Education and the 
Workforce of the House of Representatives. 
(c) CONTENTS.—The report under subsection (b) 
may consider—
(1) an evaluation of the best practices being 
used by successful community technology centers; 
(2) a strategy for—
(A) continuing the evaluation of best prac-
tices used by community technology centers; 
and 
(B) establishing a network to share infor-
mation and resources as community technology 
centers evolve; 
(3) the identification of methods to expand the 
use of best practices to assist community technology 
centers, public libraries, and other institutions that 
provide computer and Internet access to the public; 
(4) a database of all community technology cen-
ters that have received Federal funds, including—
(A) each center’s name, location, services 
provided, director, other points of contact, num-
ber of individuals served; and 
(B) other relevant information;
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(5) an analysis of whether community tech-
nology centers have been deployed effectively in 
urban and rural areas throughout the Nation; and 
(6) recommendations of how to—
(A) enhance the development of community 
technology centers; and 
(B) establish a network to share informa-
tion and resources. 
(d) COOPERATION.—All agencies that fund commu-
nity technology centers shall provide to the Administrator 
any information and assistance necessary for the comple-
tion of the study and the report under this section. 
(e) ASSISTANCE.—
(1) IN GENERAL.—The Administrator, in con-
sultation with the Secretary of Education, shall work 
with other relevant Federal agencies, and other in-
terested persons in the private and nonprofit sectors 
to—
(A) assist in the implementation of rec-
ommendations; and 
(B) identify other ways to assist commu-
nity technology centers, public libraries, and 
other institutions that provide computer and 
Internet access to the public.
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(2) TYPES OF ASSISTANCE.—Assistance under 
this subsection may include—
(A) contribution of funds; 
(B) donations of equipment, and training 
in the use and maintenance of the equipment; 
and 
(C) the provision of basic instruction or 
training material in computer skills and Inter-
net usage. 
(f) ONLINE TUTORIAL.—
(1) IN GENERAL.—The Administrator, in con-
sultation with the Secretary of Education, the Direc-
tor of the Institute of Museum and Library Services, 
other relevant agencies, and the public, shall develop 
an online tutorial that—
(A) explains how to access Government in-
formation and services on the Internet; and 
(B) provides a guide to available online re-
sources. 
(2) DISTRIBUTION.—The Administrator, with 
assistance from the Secretary of Education, shall 
distribute information on the tutorial to community 
technology centers, public libraries, and other insti-
tutions that afford Internet access to the public.
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(g) PROMOTION OF COMMUNITY TECHNOLOGY CEN-
TERS.—The Administrator, with assistance from the De-
partment of Education and in consultation with other 
agencies and organizations, shall promote the availability 
of community technology centers to raise awareness within 
each community where such a center is located. 
(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated for the study of best 
practices at community technology centers, for the devel-
opment and dissemination of the online tutorial, and for 
the promotion of community technology centers under this 
section—
(1) $2,000,000 in fiscal year 2003; 
(2) $2,000,000 in fiscal year 2004; and 
(3) such sums as are necessary in fiscal years 
2005 through 2007. 
SEC. 214. ENHANCING CRISIS MANAGEMENT THROUGH AD-
VANCED INFORMATION TECHNOLOGY. 
(a) PURPOSE.—The purpose of this section is to im-
prove how information technology is used in coordinating 
and facilitating information on disaster preparedness, re-
sponse, and recovery, while ensuring the availability of 
such information across multiple access channels. 
(b) IN GENERAL.—
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(1) STUDY ON ENHANCEMENT OF CRISIS RE-
SPONSE.—Not later than 90 days after the date of 
enactment of this Act, the Administrator, in con-
sultation with the Federal Emergency Management 
Agency, shall ensure that a study is conducted on 
using information technology to enhance crisis pre-
paredness, response, and consequence management 
of natural and manmade disasters. 
(2) CONTENTS.—The study under this sub-
section shall address—
(A) a research and implementation strat-
egy for effective use of information technology 
in crisis response and consequence manage-
ment, including the more effective use of tech-
nologies, management of information technology 
research initiatives, and incorporation of re-
search advances into the information and com-
munications systems of—
(i) the Federal Emergency Manage-
ment Agency; and 
(ii) other Federal, State, and local 
agencies responsible for crisis prepared-
ness, response, and consequence manage-
ment; and
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(B) opportunities for research and develop-
ment on enhanced technologies into areas of po-
tential improvement as determined during the 
course of the study. 
(3) REPORT.—Not later than 2 years after the 
date on which a contract is entered into under para-
graph (1), the Administrator shall submit a report 
on the study, including findings and recommenda-
tions to—
(A) the Committee on Governmental Af-
fairs of the Senate; and 
(B) the Committee on Government Reform 
of the House of Representatives. 
(4) INTERAGENCY COOPERATION.—Other Fed-
eral departments and agencies with responsibility for 
disaster relief and emergency assistance shall fully 
cooperate with the Administrator in carrying out 
this section. 
(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for research 
under this subsection, such sums as are necessary 
for fiscal year 2003. 
(c) PILOT PROJECTS.—Based on the results of the 
research conducted under subsection (b), the Adminis-
trator, in consultation with the Federal Emergency Man-
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agement Agency, shall initiate pilot projects or report to 
Congress on other activities that further the goal of maxi-
mizing the utility of information technology in disaster 
management. The Administrator shall cooperate with 
other relevant agencies, and, if appropriate, State, local, 
and tribal governments, in initiating such pilot projects. 
SEC. 215. DISPARITIES IN ACCESS TO THE INTERNET. 
(a) STUDY AND REPORT.—
(1) STUDY.—Not later than 90 days after the 
date of enactment of this Act, the Administrator of 
General Services shall request that the National 
Academy of Sciences, acting through the National 
Research Council, enter into a contract to conduct 
a study on disparities in Internet access for online 
Government services. 
(2) REPORT.—Not later than 2 years after the 
date of enactment of this Act, the Administrator of 
General Services shall submit to the Committee on 
Governmental Affairs of the Senate and the Com-
mittee on Government Reform of the House of Rep-
resentatives a final report of the study under this 
section, which shall set forth the findings, conclu-
sions, and recommendations of the National Re-
search Council.
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(b) CONTENTS.—The report under subsection (a) 
shall include a study of—
(1) how disparities in Internet access influence 
the effectiveness of online Government services, in-
cluding a review of—
(A) the nature of disparities in Internet 
access; 
(B) the affordability of Internet service; 
(C) the incidence of disparities among dif-
ferent groups within the population; and 
(D) changes in the nature of personal and 
public Internet access that may alleviate or ag-
gravate effective access to online Government 
services; 
(2) how the increase in online Government serv-
ices is influencing the disparities in Internet access 
and how technology development or diffusion trends 
may offset such adverse influences; and 
(3) related societal effects arising from the 
interplay of disparities in Internet access and the in-
crease in online Government services. 
(c) RECOMMENDATIONS.—The report shall include 
recommendations on actions to ensure that online Govern-
ment initiatives shall not have the unintended result of
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increasing any deficiency in public access to Government 
services. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $950,000 in fiscal year 
2003 to carry out this section. 
SEC. 216. COMMON PROTOCOLS FOR GEOGRAPHIC INFOR-
MATION SYSTEMS. 
(a) PURPOSES.—The purposes of this section are 
to—
(1) reduce redundant data collection and infor-
mation; and 
(2) promote collaboration and use of standards 
for government geographic information. 
(b) 
DEFINITION.—In 
this 
section, 
the 
term 
‘‘geographic information’’ means information systems that 
involve locational data, such as maps or other geospatial 
information resources. 
(c) IN GENERAL.—
(1) COMMON PROTOCOLS.—The Administrator, 
in consultation with the Secretary of the Interior, 
working with the Director and through an inter-
agency group, and working with private sector ex-
perts, State, local, and tribal governments, commer-
cial and international standards groups, and other 
interested parties, shall facilitate the development of
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common protocols for the development, acquisition, 
maintenance, distribution, and application of geo-
graphic information. If practicable, the Adminis-
trator shall incorporate intergovernmental and public 
private geographic information partnerships into ef-
forts under this subsection. 
(2) INTERAGENCY
GROUP.—The interagency 
group referred to under paragraph (1) shall include 
representatives of the National Institute of Stand-
ards and Technology and other agencies. 
(d) DIRECTOR.—The Director shall oversee—
(1) the interagency initiative to develop common 
protocols; 
(2) the coordination with State, local, and tribal 
governments, public private partnerships, and other 
interested persons on effective and efficient ways to 
align geographic information and develop common 
protocols; and 
(3) the adoption of common standards relating 
to the protocols. 
(e) COMMON PROTOCOLS.—The common protocols 
shall be designed to—
(1) maximize the degree to which unclassified 
geographic information from various sources can be 
made electronically compatible and accessible; and
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(2) promote the development of interoperable 
geographic information systems technologies that 
shall— 
(A) allow widespread, low-cost use and 
sharing of geographic data by Federal agencies, 
State, local, and tribal governments, and the 
public; and 
(B) enable the enhancement of services 
using geographic data. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section, for each of the fiscal years 
2003 through 2007.
TITLE III—INFORMATION 
SECURITY 
SEC. 301. INFORMATION SECURITY. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Federal Information Security Management Act of 2002’’. 
(b) INFORMATION SECURITY.—
(1) IN
GENERAL.—Chapter 35 of title 44, 
United States Code, is amended by adding at the 
end the following new subchapter:
‘‘SUBCHAPTER III—INFORMATION SECURITY 
‘‘§ 3541. Purposes 
‘‘The purposes of this subchapter are to—
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‘‘(1) provide a comprehensive framework for en-
suring the effectiveness of information security con-
trols over information resources that support Fed-
eral operations and assets; 
‘‘(2) recognize the highly networked nature of 
the current Federal computing environment and pro-
vide effective governmentwide management and over-
sight of the related information security risks, in-
cluding coordination of information security efforts 
throughout the civilian, national security, and law 
enforcement communities; 
‘‘(3) provide for development and maintenance 
of minimum controls required to protect Federal in-
formation and information systems; 
‘‘(4) provide a mechanism for improved over-
sight of Federal agency information security pro-
grams; 
‘‘(5) acknowledge that commercially developed 
information security products offer advanced, dy-
namic, robust, and effective information security so-
lutions, reflecting market solutions for the protection 
of critical information infrastructures important to 
the national defense and economic security of the 
nation that are designed, built, and operated by the 
private sector; and
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‘‘(6) recognize that the selection of specific 
technical hardware and software information secu-
rity solutions should be left to individual agencies 
from among commercially developed products. 
‘‘§ 3542. Definitions 
‘‘(a) IN GENERAL.—Except as provided under sub-
section (b), the definitions under section 3502 shall apply 
to this subchapter. 
‘‘(b) ADDITIONAL DEFINITIONS.—As used in this 
subchapter: 
‘‘(1) The term ‘information security’ means 
protecting information and information systems 
from unauthorized access, use, disclosure, disrup-
tion, modification, or destruction in order to pro-
vide—
‘‘(A) integrity, which means guarding 
against improper information modification or 
destruction, and includes ensuring information 
nonrepudiation and authenticity; 
‘‘(B) confidentiality, which means pre-
serving authorized restrictions on access and 
disclosure, including means for protecting per-
sonal privacy and proprietary information; and
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‘‘(C) availability, which means ensuring 
timely and reliable access to and use of infor-
mation. 
‘‘(2)(A) The term ‘national security system’ 
means any information system (including any tele-
communications system) used or operated by an 
agency or by a contractor of an agency, or other or-
ganization on behalf of an agency—
‘‘(i) the function, operation, or use of 
which—
‘‘(I) involves intelligence activities; 
‘‘(II) involves cryptologic activities re-
lated to national security; 
‘‘(III) involves command and control 
of military forces; 
‘‘(IV) involves equipment that is an 
integral part of a weapon or weapons sys-
tem; or 
‘‘(V) subject to subparagraph (B), is 
critical to the direct fulfillment of military 
or intelligence missions; or 
‘‘(ii) is protected at all times by procedures 
established for information that have been spe-
cifically authorized under criteria established by 
an Executive order or an Act of Congress to be
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kept classified in the interest of national de-
fense or foreign policy. 
‘‘(B) Subparagraph (A)(i)(V) does not include a 
system that is to be used for routine administrative 
and business applications (including payroll, finance, 
logistics, and personnel management applications). 
‘‘(3) The term ‘information technology’ has the 
meaning given that term in section 11101 of title 
40. 
‘‘§ 3543. Authority and functions of the Director 
‘‘(a) IN GENERAL.—The Director shall oversee agen-
cy information security policies and practices, including—
‘‘(1) developing and overseeing the implementa-
tion of policies, principles, standards, and guidelines 
on information security, including through ensuring 
timely agency adoption of and compliance with 
standards promulgated under section 11331 of title 
40; 
‘‘(2) requiring agencies, consistent with the 
standards promulgated under such section 11331 
and the requirements of this subchapter, to identify 
and provide information security protections com-
mensurate with the risk and magnitude of the harm 
resulting from the unauthorized access, use, disclo-
sure, disruption, modification, or destruction of—
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‘‘(A) information collected or maintained 
by or on behalf of an agency; or 
‘‘(B) information systems used or operated 
by an agency or by a contractor of an agency 
or other organization on behalf of an agency; 
‘‘(3) coordinating the development of standards 
and guidelines under section 20 of the National In-
stitute of Standards and Technology Act (15 U.S.C. 
278g–3) with agencies and offices operating or exer-
cising control of national security systems (including 
the National Security Agency) to assure, to the max-
imum extent feasible, that such standards and 
guidelines are complementary with standards and 
guidelines developed for national security systems; 
‘‘(4) overseeing agency compliance with the re-
quirements of this subchapter, including through 
any authorized action under section 11303 of title 
40, to enforce accountability for compliance with 
such requirements; 
‘‘(5) reviewing at least annually, and approving 
or disapproving, agency information security pro-
grams required under section 3544(b); 
‘‘(6) coordinating information security policies 
and procedures with related information resources 
management policies and procedures;
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‘‘(7) overseeing the operation of the Federal in-
formation security incident center required under 
section 3546; and 
‘‘(8) reporting to Congress no later than March 
1 of each year on agency compliance with the re-
quirements of this subchapter, including—
‘‘(A) a summary of the findings of evalua-
tions required by section 3545; 
‘‘(B) an assessment of the development, 
promulgation, and adoption of, and compliance 
with, standards developed under section 20 of 
the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278g-3) and promul-
gated under section 11331 of title 40; 
‘‘(C) significant deficiencies in agency in-
formation security practices; 
‘‘(D) planned remedial action to address 
such deficiencies; and 
‘‘(E) a summary of, and the views of the 
Director on, the report prepared by the Na-
tional Institute of Standards and Technology 
under section 20(d)(10) of the National Insti-
tute of Standards and Technology Act (15 
U.S.C. 278g–3).
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‘‘(b) NATIONAL SECURITY SYSTEMS.—Except for the 
authorities described in paragraphs (4) and (8) of sub-
section (a), the authorities of the Director under this sec-
tion shall not apply to national security systems. 
‘‘(c) DEPARTMENT OF DEFENSE AND CENTRAL IN-
TELLIGENCE AGENCY SYSTEMS.—(1) The authorities of 
the Director described in paragraphs (1) and (2) of sub-
section (a) shall be delegated to the Secretary of Defense 
in the case of systems described in paragraph (2) and to 
the Director of Central Intelligence in the case of systems 
described in paragraph (3). 
‘‘(2) The systems described in this paragraph are sys-
tems that are operated by the Department of Defense, a 
contractor of the Department of Defense, or another enti-
ty on behalf of the Department of Defense that processes 
any information the unauthorized access, use, disclosure, 
disruption, modification, or destruction of which would 
have a debilitating impact on the mission of the Depart-
ment of Defense. 
‘‘(3) The systems described in this paragraph are sys-
tems that are operated by the Central Intelligence Agency, 
a contractor of the Central Intelligence Agency, or another 
entity on behalf of the Central Intelligence Agency that 
processes any information the unauthorized access, use, 
disclosure, disruption, modification, or destruction of
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which would have a debilitating impact on the mission of 
the Central Intelligence Agency. 
‘‘§ 3544. Federal agency responsibilities 
‘‘(a) IN GENERAL.—The head of each agency shall—
‘‘(1) be responsible for—
‘‘(A) providing information security protec-
tions commensurate with the risk and mag-
nitude of the harm resulting from unauthorized 
access, use, disclosure, disruption, modification, 
or destruction of—
‘‘(i) information collected or main-
tained by or on behalf of the agency; and 
‘‘(ii) information systems used or op-
erated by an agency or by a contractor of 
an agency or other organization on behalf 
of an agency; 
‘‘(B) complying with the requirements of 
this subchapter and related policies, procedures, 
standards, and guidelines, including—
‘‘(i) information security standards 
promulgated under section 11331 of title 
40; and 
‘‘(ii) information security standards 
and guidelines for national security sys-
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tems issued in accordance with law and as 
directed by the President; and 
‘‘(C) ensuring that information security 
management processes are integrated with 
agency strategic and operational planning proc-
esses; 
‘‘(2) ensure that senior agency officials provide 
information security for the information and infor-
mation systems that support the operations and as-
sets under their control, including through—
‘‘(A) assessing the risk and magnitude of 
the harm that could result from the unauthor-
ized access, use, disclosure, disruption, modi-
fication, or destruction of such information or 
information systems; 
‘‘(B) determining the levels of information 
security appropriate to protect such information 
and information systems in accordance with 
standards promulgated under section 11331 of 
title 40, for information security classifications 
and related requirements; 
‘‘(C) implementing policies and procedures 
to cost-effectively reduce risks to an acceptable 
level; and
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‘‘(D) periodically testing and evaluating in-
formation security controls and techniques to 
ensure that they are effectively implemented; 
‘‘(3) delegate to the agency Chief Information 
Officer established under section 3506 (or com-
parable official in an agency not covered by such 
section) the authority to ensure compliance with the 
requirements imposed on the agency under this sub-
chapter, including—
‘‘(A) designating a senior agency informa-
tion security officer who shall—
‘‘(i) carry out the Chief Information 
Officer’s responsibilities under this section;
‘‘(ii) possess professional qualifica-
tions, including training and experience, 
required to administer the functions de-
scribed under this section; 
‘‘(iii) have information security duties 
as that official’s primary duty; and 
‘‘(iv) head an office with the mission 
and resources to assist in ensuring agency 
compliance with this section; 
‘‘(B) developing and maintaining an agen-
cywide information security program as re-
quired by subsection (b);
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‘‘(C) developing and maintaining informa-
tion security policies, procedures, and control 
techniques to address all applicable require-
ments, including those issued under section 
3543 of this title, and section 11331 of title 40; 
‘‘(D) training and overseeing personnel 
with significant responsibilities for information 
security with respect to such responsibilities; 
and 
‘‘(E) assisting senior agency officials con-
cerning their responsibilities under paragraph 
(2); 
‘‘(4) ensure that the agency has trained per-
sonnel sufficient to assist the agency in complying 
with the requirements of this subchapter and related 
policies, procedures, standards, and guidelines; and 
‘‘(5) ensure that the agency Chief Information 
Officer, in coordination with other senior agency of-
ficials, reports annually to the agency head on the 
effectiveness of the agency information security pro-
gram, including progress of remedial actions. 
‘‘(b) AGENCY PROGRAM.—Each agency shall develop, 
document, and implement an agencywide information se-
curity program, approved by the Director under section 
3543(a)(5), to provide information security for the infor-
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mation and information systems that support the oper-
ations and assets of the agency, including those provided 
or managed by another agency, contractor, or other 
source, that includes—
‘‘(1) periodic assessments of the risk and mag-
nitude of the harm that could result from the unau-
thorized access, use, disclosure, disruption, modifica-
tion, or destruction of information and information 
systems that support the operations and assets of 
the agency; 
‘‘(2) policies and procedures that—
‘‘(A) are based on the risk assessments re-
quired by paragraph (1); 
‘‘(B) cost-effectively reduce information se-
curity risks to an acceptable level; 
‘‘(C) ensure that information security is 
addressed throughout the life cycle of each 
agency information system; and 
‘‘(D) ensure compliance with—
‘‘(i) the requirements of this sub-
chapter; 
‘‘(ii) policies and procedures as may 
be prescribed by the Director, and infor-
mation security standards promulgated 
under section 11331 of title 40;
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‘‘(iii) minimally acceptable system 
configuration requirements, as determined 
by the agency; and 
‘‘(iv) any other applicable require-
ments, including standards and guidelines 
for national security systems issued in ac-
cordance with law and as directed by the 
President; 
‘‘(3) subordinate plans for providing adequate 
information security for networks, facilities, and sys-
tems or groups of information systems, as appro-
priate; 
‘‘(4) security awareness training to inform per-
sonnel, including contractors and other users of in-
formation systems that support the operations and 
assets of the agency, of—
‘‘(A) information security risks associated 
with their activities; and 
‘‘(B) their responsibilities in complying 
with agency policies and procedures designed to 
reduce these risks; 
‘‘(5) periodic testing and evaluation of the ef-
fectiveness of information security policies, proce-
dures, and practices, to be performed with a fre-
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quency depending on risk, but no less than annually, 
of which such testing—
‘‘(A) shall include testing of management, 
operational, and technical controls of every in-
formation system identified in the inventory re-
quired under section 3505(c); and 
‘‘(B) may include testing relied on in a 
evaluation under section 3545; 
‘‘(6) a process for planning, implementing, eval-
uating, and documenting remedial action to address 
any deficiencies in the information security policies, 
procedures, and practices of the agency; 
‘‘(7) procedures for detecting, reporting, and re-
sponding to security incidents, consistent with stand-
ards and guidelines issued pursuant to section 
3546(b), including—
‘‘(A) mitigating risks associated with such 
incidents before substantial damage is done; 
‘‘(B) notifying and consulting with the 
Federal information security incident center re-
ferred to in section 3546; and 
‘‘(C) notifying and consulting with, as ap-
propriate—
‘‘(i) law enforcement agencies and rel-
evant Offices of Inspector General;
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‘‘(ii) an office designated by the Presi-
dent for any incident involving a national 
security system; and 
‘‘(iii) any other agency or office, in ac-
cordance with law or as directed by the 
President; and 
‘‘(8) plans and procedures to ensure continuity 
of operations for information systems that support 
the operations and assets of the agency. 
‘‘(c) AGENCY REPORTING.—Each agency shall—
‘‘(1) report annually to the Director, the Com-
mittees on Government Reform and Science of the 
House of Representatives, the Committees on Gov-
ernmental Affairs and Commerce, Science, and 
Transportation of the Senate, the appropriate au-
thorization and appropriations committees of Con-
gress, and the Comptroller General on the adequacy 
and effectiveness of information security policies, 
procedures, and practices, and compliance with the 
requirements of this subchapter, including compli-
ance with each requirement of subsection (b); 
‘‘(2) address the adequacy and effectiveness of 
information security policies, procedures, and prac-
tices in plans and reports relating to—
‘‘(A) annual agency budgets;
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‘‘(B) information resources management 
under subchapter 1 of this chapter;
‘‘(C) information technology management 
under subtitle III of title 40; 
‘‘(D) program performance under sections 
1105 and 1115 through 1119 of title 31, and 
sections 2801 and 2805 of title 39; 
‘‘(E) financial management under chapter 
9 of title 31, and the Chief Financial Officers 
Act of 1990 (31 U.S.C. 501 note; Public Law 
101–576) (and the amendments made by that 
Act); 
‘‘(F) financial management systems under 
the Federal Financial Management Improve-
ment Act (31 U.S.C. 3512 note); and 
‘‘(G) internal accounting and administra-
tive controls under section 3512 of title 31, 
(known as the ‘Federal Managers Financial In-
tegrity Act’); and 
‘‘(3) report any significant deficiency in a pol-
icy, procedure, or practice identified under para-
graph (1) or (2)—
‘‘(A) as a material weakness in reporting 
under section 3512 of title 31; and
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‘‘(B) if relating to financial management 
systems, as an instance of a lack of substantial 
compliance under the Federal Financial Man-
agement Improvement Act (31 U.S.C. 3512 
note). 
‘‘(d) PERFORMANCE PLAN.—(1) In addition to the 
requirements of subsection (c), each agency, in consulta-
tion with the Director, shall include as part of the per-
formance plan required under section 1115 of title 31 a 
description of—
‘‘(A) the time periods, and 
‘‘(B) the resources, including budget, staffing, 
and training, 
that are necessary to implement the program required 
under subsection (b). 
‘‘(2) The description under paragraph (1) shall be 
based on the risk assessments required under subsection 
(b)(2)(1). 
‘‘(e) PUBLIC NOTICE AND COMMENT.—Each agency 
shall provide the public with timely notice and opportuni-
ties for comment on proposed information security policies 
and procedures to the extent that such policies and proce-
dures affect communication with the public.
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‘‘§ 3545. Annual independent evaluation 
‘‘(a) IN GENERAL.—(1) Each year each agency shall 
have performed an independent evaluation of the informa-
tion security program and practices of that agency to de-
termine the effectiveness of such program and practices. 
‘‘(2) Each evaluation under this section shall in-
clude—
‘‘(A) testing of the effectiveness of information 
security policies, procedures, and practices of a rep-
resentative subset of the agency’s information sys-
tems; 
‘‘(B) an assessment (made on the basis of the 
results of the testing) of compliance with—
‘‘(i) the requirements of this subchapter; 
and 
‘‘(ii) related information security policies, 
procedures, standards, and guidelines; and 
‘‘(C) separate presentations, as appropriate, re-
garding information security relating to national se-
curity systems. 
‘‘(b) INDEPENDENT
AUDITOR.—Subject to sub-
section (c)—
‘‘(1) for each agency with an Inspector General 
appointed under the Inspector General Act of 1978, 
the annual evaluation required by this section shall 
be performed by the Inspector General or by an
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independent external auditor, as determined by the 
Inspector General of the agency; and 
‘‘(2) for each agency to which paragraph (1) 
does not apply, the head of the agency shall engage 
an independent external auditor to perform the eval-
uation. 
‘‘(c) NATIONAL
SECURITY
SYSTEMS.—For each 
agency operating or exercising control of a national secu-
rity system, that portion of the evaluation required by this 
section directly relating to a national security system shall 
be performed—
‘‘(1) only by an entity designated by the agency 
head; and 
‘‘(2) in such a manner as to ensure appropriate 
protection for information associated with any infor-
mation security vulnerability in such system com-
mensurate with the risk and in accordance with all 
applicable laws. 
‘‘(d) EXISTING EVALUATIONS.—The evaluation re-
quired by this section may be based in whole or in part 
on an audit, evaluation, or report relating to programs or 
practices of the applicable agency. 
‘‘(e) AGENCY REPORTING.—(1) Each year, not later 
than such date established by the Director, the head of
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each agency shall submit to the Director the results of 
the evaluation required under this section. 
‘‘(2) To the extent an evaluation required under this 
section directly relates to a national security system, the 
evaluation results submitted to the Director shall contain 
only a summary and assessment of that portion of the 
evaluation directly relating to a national security system. 
‘‘(f) PROTECTION OF INFORMATION.—Agencies and 
evaluators shall take appropriate steps to ensure the pro-
tection of information which, if disclosed, may adversely 
affect information security. Such protections shall be com-
mensurate with the risk and comply with all applicable 
laws and regulations. 
‘‘(g) OMB REPORTS TO CONGRESS.—(1) The Direc-
tor shall summarize the results of the evaluations con-
ducted under this section in the report to Congress re-
quired under section 3543(a)(8). 
‘‘(2) The Director’s report to Congress under this 
subsection shall summarize information regarding infor-
mation security relating to national security systems in 
such a manner as to ensure appropriate protection for in-
formation associated with any information security vulner-
ability in such system commensurate with the risk and in 
accordance with all applicable laws.
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‘‘(3) Evaluations and any other descriptions of infor-
mation systems under the authority and control of the Di-
rector of Central Intelligence or of National Foreign Intel-
ligence Programs systems under the authority and control 
of the Secretary of Defense shall be made available to Con-
gress only through the appropriate oversight committees 
of Congress, in accordance with applicable laws. 
‘‘(h) COMPTROLLER GENERAL.—The Comptroller 
General shall periodically evaluate and report to Congress 
on—
‘‘(1) the adequacy and effectiveness of agency 
information security policies and practices; and 
‘‘(2) implementation of the requirements of this 
subchapter. 
‘‘§ 3546. Federal information security incident center 
‘‘(a) IN GENERAL.—The Director shall ensure the 
operation of a central Federal information security inci-
dent center to—
‘‘(1) provide timely technical assistance to oper-
ators of agency information systems regarding secu-
rity incidents, including guidance on detecting and 
handling information security incidents; 
‘‘(2) compile and analyze information about in-
cidents that threaten information security;
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‘‘(3) inform operators of agency information 
systems about current and potential information se-
curity threats, and vulnerabilities; and 
‘‘(4) consult with the National Institute of 
Standards and Technology, agencies or offices oper-
ating or exercising control of national security sys-
tems (including the National Security Agency), and 
such other agencies or offices in accordance with law 
and as directed by the President regarding informa-
tion security incidents and related matters. 
‘‘(b) NATIONAL SECURITY SYSTEMS.—Each agency 
operating or exercising control of a national security sys-
tem shall share information about information security in-
cidents, threats, and vulnerabilities with the Federal infor-
mation security incident center to the extent consistent 
with standards and guidelines for national security sys-
tems, issued in accordance with law and as directed by 
the President. 
‘‘§ 3547. National security systems 
‘‘The head of each agency operating or exercising 
control of a national security system shall be responsible 
for ensuring that the agency—
‘‘(1) provides information security protections 
commensurate with the risk and magnitude of the 
harm resulting from the unauthorized access, use,
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disclosure, disruption, modification, or destruction of 
the information contained in such system; 
‘‘(2) implements information security policies 
and practices as required by standards and guide-
lines for national security systems, issued in accord-
ance with law and as directed by the President; and 
‘‘(3) complies with the requirements of this sub-
chapter. 
‘‘§ 3548. Authorization of appropriations 
‘‘There are authorized to be appropriated to carry out 
the provisions of this subchapter such sums as may be 
necessary for each of fiscal years 2003 through 2007. 
‘‘§ 3549. Effect on existing law 
‘‘Nothing in this subchapter, section 11331 of title 
40, or section 20 of the National Standards and Tech-
nology Act (15 U.S.C. 278g–3) may be construed as af-
fecting the authority of the President, the Office of Man-
agement and Budget or the Director thereof, the National 
Institute of Standards and Technology, or the head of any 
agency, with respect to the authorized use or disclosure 
of information, including with regard to the protection of 
personal privacy under section 552a of title 5, the disclo-
sure of information under section 552 of title 5, the man-
agement and disposition of records under chapters 29, 31, 
or 33 of title 44, the management of information resources
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under subchapter I of chapter 35 of this title, or the dis-
closure of information to the Congress or the Comptroller 
General of the United States. While this subchapter is in 
effect, subchapter II of this chapter shall not apply.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter 35 is amend-
ed by adding at the end the following:
‘‘SUBCHAPTER III—INFORMATION SECURITY 
‘‘Sec. 
‘‘3541. Purposes. 
‘‘3542. Definitions. 
‘‘3543. Authority and functions of the Director. 
‘‘3544. Federal agency responsibilities. 
‘‘3545. Annual independent evaluation. 
‘‘3546. Federal information security incident center. 
‘‘3547. National security systems. 
‘‘3548. Authorization of appropriations. 
‘‘3549. Effect on existing law.’’.
(c) INFORMATION SECURITY RESPONSIBILITIES OF 
CERTAIN AGENCIES.—
(1) NATIONAL SECURITY RESPONSIBILITIES.—
(A) Nothing in this Act (including any amendment 
made by this Act) shall supersede any authority of 
the Secretary of Defense, the Director of Central In-
telligence, or other agency head, as authorized by 
law and as directed by the President, with regard to 
the operation, control, or management of national 
security systems, as defined by section 3542(b)(2) of 
title 44, United States Code.
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(B) Section 2224 of title 10, United States 
Code, is amended—
(i) in subsection (b), by striking ‘‘(b) 
OBJECTIVES AND MINIMUM REQUIREMENTS.—
(1)’’ and inserting ‘‘(b) OBJECTIVES OF THE 
PROGRAM.—’’; 
(ii) in subsection (b), by striking para-
graph (2); and 
(iii) in subsection (c), in the matter pre-
ceding paragraph (1), by inserting ‘‘, including 
through compliance with subchapter III of 
chapter 35 of title 44’’ after ‘‘infrastructure’’. 
(2) ATOMIC ENERGY ACT OF 1954.—Nothing in 
this Act shall supersede any requirement made by or 
under the Atomic Energy Act of 1954 (42 U.S.C. 
2011 et seq.). Restricted data or formerly restricted 
data shall be handled, protected, classified, down-
graded, and declassified in conformity with the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.). 
SEC. 302. MANAGEMENT OF INFORMATION TECHNOLOGY. 
(a) IN GENERAL.—Section 11331 of title 40, United 
States Code, is amended to read as follows:
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‘‘§ 11331. Responsibilities for Federal information sys-
tems standards 
‘‘(a) STANDARDS AND GUIDELINES.—
‘‘(1) AUTHORITY
TO
PRESCRIBE.—Except as 
provided under paragraph (2), the Secretary of 
Commerce shall, on the basis of standards and 
guidelines developed by the National Institute of 
Standards and Technology pursuant to paragraphs 
(2) and (3) of section 20(a) of the National Institute 
of Standards and Technology Act (15 U.S.C. 278g–
3(a)), prescribe standards and guidelines pertaining 
to Federal information systems. 
‘‘(2) NATIONAL
SECURITY
SYSTEMS.—Stand-
ards and guidelines for national security systems (as 
defined under this section) shall be developed, pre-
scribed, enforced, and overseen as otherwise author-
ized by law and as directed by the President. 
‘‘(b) MANDATORY REQUIREMENTS.—
‘‘(1) AUTHORITY TO MAKE MANDATORY.—Ex-
cept as provided under paragraph (2), the Secretary 
shall make standards prescribed under subsection 
(a)(1) compulsory and binding to the extent deter-
mined necessary by the Secretary to improve the ef-
ficiency of operation or security of Federal informa-
tion systems.
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‘‘(2) REQUIRED MANDATORY STANDARDS.—(A) 
Standards prescribed under subsection (a)(1) shall 
include information security standards that—
‘‘(i) provide minimum information security 
requirements as determined under section 20(b) 
of the National Institute of Standards and 
Technology Act (15 U.S.C. 278g–3(b)); and 
‘‘(ii) are otherwise necessary to improve 
the security of Federal information and infor-
mation systems. 
‘‘(B) Information security standards described 
in subparagraph (A) shall be compulsory and bind-
ing. 
‘‘(c) AUTHORITY TO DISAPPROVE OR MODIFY.—The 
President may disapprove or modify the standards and 
guidelines referred to in subsection (a)(1) if the President 
determines such action to be in the public interest. The 
President’s authority to disapprove or modify such stand-
ards and guidelines may not be delegated. Notice of such 
disapproval or modification shall be published promptly in 
the Federal Register. Upon receiving notice of such dis-
approval or modification, the Secretary of Commerce shall 
immediately rescind or modify such standards or guide-
lines as directed by the President.
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‘‘(d) EXERCISE OF AUTHORITY.—To ensure fiscal 
and policy consistency, the Secretary shall exercise the au-
thority conferred by this section subject to direction by 
the President and in coordination with the Director of the 
Office of Management and Budget. 
‘‘(e) APPLICATION
OF MORE STRINGENT STAND-
ARDS.—The head of an executive agency may employ 
standards for the cost-effective information security for in-
formation systems within or under the supervision of that 
agency that are more stringent than the standards the 
Secretary prescribes under this section if the more strin-
gent standards—
‘‘(1) contain at least the applicable standards 
made compulsory and binding by the Secretary; and 
‘‘(2) are otherwise consistent with policies and 
guidelines issued under section 3543 of title 44. 
‘‘(f) DECISIONS
ON PROMULGATION
OF STAND-
ARDS.—The decision by the Secretary regarding the pro-
mulgation of any standard under this section shall occur 
not later than 6 months after the submission of the pro-
posed standard to the Secretary by the National Institute 
of Standards and Technology, as provided under section 
20 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278g–3). 
‘‘(g) DEFINITIONS.—In this section:
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‘‘(1) FEDERAL
INFORMATION
SYSTEM.—The 
term ‘Federal information system’ means an infor-
mation system used or operated by an executive 
agency, by a contractor of an executive agency, or by 
another organization on behalf of an executive agen-
cy. 
‘‘(2) 
INFORMATION
SECURITY.—The 
term 
‘information security’ has the meaning given that 
term in section 3542(b)(1) of title 44. 
‘‘(3) NATIONAL SECURITY SYSTEM.—The term 
‘national security system’ has the meaning given 
that term in section 3542(b)(2) of title 44.’’. 
(b) CLERICAL AMENDMENT.—The item relating to 
section 11331 in the table of sections at the beginning of 
chapter 113 of such title is amended to read as follows:
‘‘11331. Responsibilities for Federal information systems standards.’’.
SEC. 303. NATIONAL INSTITUTE OF STANDARDS AND TECH-
NOLOGY. 
Section 20 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278g–3), is amended by strik-
ing the text and inserting the following: 
‘‘(a) IN GENERAL.—The Institute shall—
‘‘(1) have the mission of developing standards, 
guidelines, and associated methods and techniques 
for information systems;
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‘‘(2) develop standards and guidelines, includ-
ing minimum requirements, for information systems 
used or operated by an agency or by a contractor of 
an agency or other organization on behalf of an 
agency, other than national security systems (as de-
fined in section 3542(b)(2) of title 44, United States 
Code); and 
‘‘(3) develop standards and guidelines, includ-
ing minimum requirements, for providing adequate 
information security for all agency operations and 
assets, but such standards and guidelines shall not 
apply to national security systems. 
‘‘(b) MINIMUM REQUIREMENTS
FOR STANDARDS 
AND GUIDELINES.—The standards and guidelines re-
quired by subsection (a) shall include, at a minimum—
‘‘(1)(A) standards to be used by all agencies to 
categorize all information and information systems 
collected or maintained by or on behalf of each agen-
cy based on the objectives of providing appropriate 
levels of information security according to a range of 
risk levels; 
‘‘(B) guidelines recommending the types of in-
formation and information systems to be included in 
each such category; and
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‘‘(C) minimum information security require-
ments for information and information systems in 
each such category; 
‘‘(2) a definition of and guidelines concerning 
detection and handling of information security inci-
dents; and 
‘‘(3) guidelines developed in conjunction with 
the Department of Defense, including the National 
Security Agency, for identifying an information sys-
tem as a national security system consistent with ap-
plicable requirements for national security systems, 
issued in accordance with law and as directed by the 
President. 
‘‘(c) DEVELOPMENT
OF STANDARDS
AND GUIDE-
LINES.—In developing standards and guidelines required 
by subsections (a) and (b), the Institute shall—
‘‘(1) consult with other agencies and offices and 
the private sector (including the Director of the Of-
fice of Management and Budget, the Departments of 
Defense and Energy, the National Security Agency, 
the General Accounting Office, and the Secretary of 
Homeland Security) to assure—
‘‘(A) use of appropriate information secu-
rity policies, procedures, and techniques, in 
order to improve information security and avoid
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unnecessary and costly duplication of effort; 
and 
‘‘(B) that such standards and guidelines 
are complementary with standards and guide-
lines employed for the protection of national se-
curity systems and information contained in 
such systems; 
‘‘(2) provide the public with an opportunity to 
comment on proposed standards and guidelines; 
‘‘(3) submit to the Secretary of Commerce for 
promulgation under section 11331 of title 40, 
United States Code—
‘‘(A) standards, as required under sub-
section (b)(1)(A), no later than 12 months after 
the date of the enactment of this section; and 
‘‘(B) minimum information security re-
quirements for each category, as required under 
subsection (b)(1)(C), no later than 36 months 
after the date of the enactment of this section;
‘‘(4) issue guidelines as required under sub-
section (b)(1)(B), no later than 18 months after the 
date of the enactment of this section; 
‘‘(5) to the maximum extent practicable, ensure 
that such standards and guidelines do not require
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the use or procurement of specific products, includ-
ing any specific hardware or software; 
‘‘(6) to the maximum extent practicable, ensure 
that such standards and guidelines provide for suffi-
cient flexibility to permit alternative solutions to pro-
vide equivalent levels of protection for identified in-
formation security risks; and 
‘‘(7) to the maximum extent practicable, use 
flexible, performance-based standards and guidelines 
that permit the use of off-the-shelf commercially de-
veloped information security products. 
‘‘(d) INFORMATION SECURITY FUNCTIONS.—The In-
stitute shall—
‘‘(1) submit standards developed pursuant to 
subsection (a), along with recommendations as to 
the extent to which these should be made compul-
sory and binding, to the Secretary of Commerce for 
promulgation under section 11331 of title 40, 
United States Code; 
‘‘(2) provide technical assistance to agencies, 
upon request, regarding—
‘‘(A) compliance with the standards and 
guidelines developed under subsection (a); 
‘‘(B) detecting and handling information 
security incidents; and
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‘‘(C) information security policies, proce-
dures, and practices; 
‘‘(3) conduct research, as needed, to determine 
the nature and extent of information security 
vulnerabilities and techniques for providing cost-ef-
fective information security; 
‘‘(4) develop and periodically revise performance 
indicators and measures for agency information se-
curity policies and practices; 
‘‘(5) evaluate private sector information secu-
rity policies and practices and commercially available 
information technologies to assess potential applica-
tion by agencies to strengthen information security; 
‘‘(6) assist the private sector, upon request, in 
using and applying the results of activities under 
this section; 
‘‘(7) evaluate security policies and practices de-
veloped for national security systems to assess po-
tential application by agencies to strengthen infor-
mation security; 
‘‘(8) periodically assess the effectiveness of 
standards and guidelines developed under this sec-
tion and undertake revisions as appropriate; 
‘‘(9) solicit and consider the recommendations 
of the Information Security and Privacy Advisory
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Board, established by section 21, regarding stand-
ards and guidelines developed under subsection (a) 
and submit such recommendations to the Secretary 
of Commerce with such standards submitted to the 
Secretary; and 
‘‘(10) prepare an annual public report on activi-
ties undertaken in the previous year, and planned 
for the coming year, to carry out responsibilities 
under this section. 
‘‘(e) DEFINITIONS.—As used in this section—
‘‘(1) the term ‘agency’ has the same meaning as 
provided in section 3502(1) of title 44, United 
States Code; 
‘‘(2) the term ‘information security’ has the 
same meaning as provided in section 3542(b)(1) of 
such title; 
‘‘(3) the term ‘information system’ has the 
same meaning as provided in section 3502(8) of 
such title; 
‘‘(4) the term ‘information technology’ has the 
same meaning as provided in section 11101 of title 
40, United States Code; and 
‘‘(5) the term ‘national security system’ has the 
same meaning as provided in section 3542(b)(2) of 
title 44, United States Code.
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‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of Com-
merce $20,000,000 for each of fiscal years 2003, 2004, 
2005, 2006, and 2007 to enable the National Institute of 
Standards and Technology to carry out the provisions of 
this section.’’. 
SEC. 304. INFORMATION SECURITY AND PRIVACY ADVI-
SORY BOARD. 
Section 21 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278g–4), is amended—
(1) in subsection (a), by striking ‘‘Computer 
System Security and Privacy Advisory Board’’ and 
inserting ‘‘Information Security and Privacy Advi-
sory Board’’; 
(2) in subsection (a)(1), by striking ‘‘computer 
or telecommunications’’ and inserting ‘‘information 
technology’’; 
(3) in subsection (a)(2)—
(A) by striking ‘‘computer or telecommuni-
cations technology’’ and inserting ‘‘information 
technology’’; and
(B) by striking ‘‘computer or telecommuni-
cations equipment’’ and inserting ‘‘information 
technology’’; 
(4) in subsection (a)(3)—
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(A) by striking ‘‘computer systems’’ and 
inserting ‘‘information system’’; and 
(B) by striking ‘‘computer systems secu-
rity’’ and inserting ‘‘information security’’; 
(5) in subsection (b)(1) by striking ‘‘computer 
systems security’’ and inserting ‘‘information secu-
rity’’; 
(6) in subsection (b) by striking paragraph (2) 
and inserting the following: 
‘‘(2) to advise the Institute, the Secretary of 
Commerce, and the Director of the Office of Man-
agement and Budget on information security and 
privacy issues pertaining to Federal Government in-
formation systems, including through review of pro-
posed standards and guidelines developed under sec-
tion 20; and’’; 
(7) in subsection (b)(3) by inserting ‘‘annually’’ 
after ‘‘report’’; 
(8) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) The Board shall hold meetings at such locations 
and at such time and place as determined by a majority 
of the Board.’’; 
(9) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and
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(10) by striking subsection (h), as redesignated 
by paragraph (9), and inserting the following: 
‘‘(h) As used in this section, the terms ‘information 
system’ and ‘information technology’ have the meanings 
given in section 20.’’. 
SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) COMPUTER SECURITY ACT.—Section 11332 of 
title 40, United States Code, and the item relating to that 
section in the table of sections for chapter 113 of such 
title, are repealed. 
(b) FLOYD D. SPENCE NATIONAL DEFENSE AU-
THORIZATION ACT FOR FISCAL YEAR 2001.—The Floyd 
D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (Public Law 106–398) is amended by striking 
section 1062 (44 U.S.C. 3531 note). 
(c) PAPERWORK
REDUCTION
ACT.—(1) Section 
3504(g) of title 44, United States Code, is amended—
(A) by adding ‘‘and’’ at the end of paragraph 
(1); 
(B) in paragraph (2)—
(i) by striking ‘‘sections 11331 and 
11332(b) and (c) of title 40’’ and inserting 
‘‘section 11331 of title 40 and subchapter II of 
this chapter’’; and
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(6) With subtitle A of this title, the sharing of 
business data among the Bureau of the Census, the 
Bureau of Economic Analysis, and the Bureau of 
Labor Statistics continues to ensure the highest level 
of confidentiality for respondents to statistical sur-
veys. 
(b) PURPOSES.—The purposes of this subtitle are the 
following: 
(1) To authorize the sharing of business data 
among the Bureau of the Census, the Bureau of 
Economic Analysis, and the Bureau of Labor Statis-
tics for exclusively statistical purposes. 
(2) To reduce the paperwork burdens imposed 
on businesses that provide requested information to 
the Federal Government. 
(3) To improve the comparability and accuracy 
of Federal economic statistics by allowing the Bu-
reau of the Census, the Bureau of Economic Anal-
ysis, and the Bureau of Labor Statistics to update 
sample frames, develop consistent classifications of 
establishments and companies into industries, im-
prove coverage, and reconcile significant differences 
in data produced by the three agencies. 
(4) To increase understanding of the United 
States economy, especially for key industry and re-