Article 1 
The Schengen Information System set up pursuant to the provisions of Title IV of the 1990 Schengen Convention, shall be replaced by a new system, the Schengen Information System II (SIS II), which shall allow for new Member States to be integrated into the system.
Article 2 
The SIS II, which shall be a single integrated system, shall be developed by the Commission, in accordance with the procedures set out in this Regulation. The development comprises the preparation of technical integration into SIS II, in particular of the Member States which have acceded to the European Union in 2004.
Article 3 
The measures necessary for the development of SIS II shall be adopted in accordance with the management procedure referred to in Article 5(2) where they concern matters other than those listed in Article 4.
Article 4 
The measures necessary for the development of SIS II concerning the following matters shall be taken in accordance with the regulatory procedure referred to in Article 5(3): (a) the design of the physical architecture of the system, including its communication network; (b) technical aspects which have a bearing on the protection of personal data; (c) technical aspects which have serious financial implications for the budgets of the Member States or which have serious technical implications for the national systems of the Member States; (d) the development of security requirements.
Article 4A 
1. Without prejudice to the Commission's responsibility for the development of SIS II, the central unit of SIS II shall be located in Strasbourg (France) and the back-up central unit in Sankt Johann im Pongau (Austria) during the development of the system. 2. France and Austria shall provide the appropriate infrastructure and means to host the central unit and the back-up central unit of SIS II respectively during the development of the system. 3. The national authority providing for the infrastructure and means referred to in paragraph 2 may receive a Community grant for the preparation and maintenance of the site or for providing other services necessary for hosting SIS II during its development.
Article 5 
1. The Commission shall be assisted by a Management or Regulatory committee respectively. 2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply. The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at two months. 3. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply. The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at two months. 4. The respective committees shall adopt their rules of procedure.
Article 6 
The Commission shall submit by the end of every six month period, and for the first time by the end of the second six month period of 2002, a progress report to the Council and the European Parliament concerning the development of SIS II.
Article 7 
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Communities . Den udløber den 31. december 2008. This Regulation shall be binding in its entirety and directly applicable in all Member States