E-Government Act of 2002
PL 107-347 (H.R.2458), enacted 12/17/2002

PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2899 
Public Law 107-347 
107th Congress 
An Act 
To enhance the management and promotion of electronic Grovemment services and 
processes by estabhshing a Federal Chief Information Officer within the Office 
Dec. 17, 2002 
of Management and Budget, and by establishing a broad framework of measures 
[jj.R. 2458] 
that require using Internet-based iiiformation technology to enhance citizen access 
to Government information and services, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
E-Government 
_ 
_ 
Act of 2002. 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "E-Government 
44 USC lOi note. 
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 
G O V E R N M E N T 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 elec-
tronic 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 technology. 
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 technolojgy. 
Sec. 303. National Institute of Standards and Technology. 
Sec. 304. Information Security and Privacy Advisory Board. 
Sec. 305. Technical and conforming amendments. 
TITLE IV—AUTHORIZATION OF APPROPRIATIONS AND EFFECTRTE DATES 
Sec. 401. Authorization of appropriations. 
116 STAT. 2900 
PUBLIC LAW 107-347—DEC. 17, 2002 
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. 
44 u s e 3601 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds the following: 
(1) The use of computers and the Internet is rapidly trans-
forming societal interactions and the relationships among citi-
zens, private businesses, and the Government. 
(2) The Federal Government has had uneven success in 
applying advances in information technology to enhance govern-
mental functions and services, achieve more efficient perform-
ance, increase access to Government information, and increase 
citizen participation in Government. 
(3) Most Internet-based services of the Federal Government 
are developed and presented separately, according to the juris-
dictional boundaries of an individual department or agency, 
rather than being integrated cooperatively according to function 
or topic. 
(4) Internet-based Government services involving inter-
agency cooperation are especially difficult to develop and pro-
mote, in part because of a lack of sufficient funding mechanisms 
to support such interagency cooperation. 
(5) Electronic Government has its impact through improved 
Government performance and outcomes within and across agen-
cies. 
(6) Electronic Government is a critical element in the 
management of Government, to be implemented as part of 
a management framework that also addresses finance, procure-
ment, human capital, and other challenges to improve the 
performance of Government. 
(7) To take full advantage of the improved Government 
performance that can be achieved through the use of Internet-
based technology requires strong leadership, better organiza-
tion, improved interagency collaboration, and more focused 
oversight of agency complieuice with statutes related to informa-
tion resource management. 
(b) PURPOSES.—The purposes of this Act are the following: 
(1) To provide effective leadership of Federal Government 
efforts to develop and promote electronic Grovernment services 
and processes by establishing an Administrator of a new Office 
of Electronic Government within the Office of Management 
and Budget. 
;.;>*** »ia*.' 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2901 
(2) To promote use of the Internet and other information 
technologies to provide increased opportunities for citizen 
psirticipation in Government. 
(3) To promote interagency collaboration in providing elec-
tronic Government services, where this collaboration would 
improve the service to citizens by integrating related functions, 
and in the use of internal electronic Government processes, 
where this collaboration would improve the efficiency and 
effectiveness 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 tech-
nologies within and across Government agencies to provide 
citizen-centric Government information 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 Government informa-
tion and services across multiple channels. 
(9) To make the Federal Government more transparent 
and accountable. 
(10) To transform agency operations by utilizing, where 
appropriate, best practices from public and private sector 
organizations. 
(11) To provide enhanced access to Government information 
eind services in a manner consistent with laws regarding protec-
tion of personal privacy, national security, records retention, 
access for persons with disabilities, and other relevant laws. 
TITLE I—OFFICE OF MANAGEMENT AND 
BUDGET ELECTRONIC GOVERNMENT 
SERVICES 
SEC. 101. MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERN-
MENT SERVICES. 
(a) IN GENERAL.—Title 44, United States Code, is amended 
by inserting after chapter 35 the following: 
'^CHAPTER 36—MANAGEMENT AND PROMOTION OF 
ELECTRONIC GOVERNMENT SERVICES 
"Sec. 
: "' '" 
'' 
"3601. Definitions. 
"3602. Office of Electronic Government. 
"3603. Chief Information Officers Council. 
"3604. E-Govemment Fund. 
"3605. Program to encourage innovative solutions to enhance electronic Government 
services and processes. 
"3606. E-Govemment 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; 
116 STAT. 2902 
PUBLIC LAW 107-347—DEC. 17, 2002 
"(2) 'Council' means the Chief Information Officers Council 
established under section 3603; 
"(3) 'electronic Government' means the use by the Govern-
ment of web-based Internet applications 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 Government oper-
ations 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 perform the mis-
sion; 
"(iii) the technologies necessary to perform the mis-
sion; and 
"(iv) the transitional processes for implementing 
new technologies in response to changing mission 
needs; and 
"(B) includes— 
"(i) a baseline architecture; 
"(ii) a target architecture; and 
"(iii) a sequencing plan; 
"(5) 'Fund' means the E-Govemment Fund established 
under section 3604; 
"(6) 'interoperability' means the ability of different oper-
ating and software systems, applications, and services to 
communicate and exchange data in an accurate, effective, and 
consistent manner; 
"(7) 'integrated service delivery' means the provision of 
Internet-based Federal Government information or services 
integrated according to function or topic rather thein 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 continentsJ United States (excluding the State of 
Alaska) that is recognized as eligible for the special pro-
grams 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 Settle-
ment Act (43 U.S.C. 1601 et seq.). 
*
*
§ 3602. Office of Electronic Government 
Establishment. 
"(a) There is established in the Office of Management and 
Government 
Budget an Office of Electronic Government. 
SISdent"''" 
"(b) There shall be at the head of the Office an Administrator 
who shall be appointed by the President. 
"(c) The Administrator shall assist the Director in carrying 
out— 
"(1) all functions under this chapter; 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2903 
"(2) all of the functions assigned to the Director under 
title II of the E-Government Act of 2002; and 
"(3) other electronic government initiatives, consistent with 
other statutes. 
"(d) The Administrator shall assist the Director and the Deputy 
Director for Management and work with the Administrator of the 
Office of Information and Regulatory Affairs in setting strategic 
direction for implementing electronic Government, under relevant 
statutes, including— 
"(1) chapter 35; 
"(2) subtitle III of title 40, United States Code; 
"(3) section 552a of title 5 (commonly referred to as the 
'Privacy Act'); 
"(4) the Government Paperwork Elimination Act (44 U.S.C. 
3504 note); and 
"(5) the Federal Information Security Management Act of 
2002. 
"(e) The Administrator shall work with the Administrator of 
the Office of Information £uid Regulatory Affairs and with other 
offices within the Office of Management and Budget to oversee 
implementation of electronic Government under this chapter, 
chapter 35, the E-Government Act of 2002, and other relevant 
statutes, in a manner consistent with law, relating to— 
"(1) capiteJ planning and investment control for information 
technology; 
"(2) the development of enterprise architectures; 
"(3) information security; 
"(4) privacy; 
"(5) access to, dissemination of, and preservation of Govern-
ment information; 
"(6) accessibility of information technology for persons with 
disabilities; and 
"(7) other areas of electronic Government. 
"(f) Subject to requirements of this chapter, the Administrator 
shall assist the Director by performing electronic Government func-
tions as follows: 
"(1) Advise the Director on the resources required to 
develop and effectively administer electronic Government initia-
tives. 
"(2) Recommend to the Director changes relating to 
Governmentwide strategies and priorities for electronic Govern-
ment. 
"(3) Provide overall leadership and direction to the execu-
tive branch on electronic Grovernment. 
"(4) Promote innovative uses of information technology by 
agencies, 
particularly 
initiatives 
involving 
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 coordination of, the E-Govern-
ment Fund established under section 3604. 
"(6) Coordinate with the Administrator of General Services 
regarding progrsims undert£iken by the General Services 
Administration to promote electronic government and the effi-
cient use of information technologies by agencies. 
116 STAT. 2904 
PUBLIC LAW 107-347—DEC. 17, 2002 
"(7) Lead the activities of the Chief Information Officers 
Council estabHshed 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 technology standards for 
the Federal Government developed 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 Informa-
tion Officers Council, experts, and interested parties from the 
private and nonprofit sectors and State, local, and tribal govern-
ments, and maximizing the use of commercial standards as 
appropriate, including the following: 
"(A) Standards and guidelines for interconnectivity and 
interoperability as described 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 security. 
"(9) Sponsor ongoing dialogue that— 
"(A) shall be conducted among Federal, State, local, 
and tribal government leaders on electronic (government 
in the executive, legislative, 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 acquiring, using, and man-
aging information resources; 
"(B) is intended to improve the performance of govern-
ments in collaborating on the use of information technology 
to improve the delivery of Government information and 
services; and 
"(C) may include— 
"(i) development of innovative models— 
"(I) for electronic Government management 
and Government information technology contracts; 
and 
"(II) that may be developed through focused 
discussions or using separately sponsored research; 
"(ii) identification of opportunities for public-pri-
vate collaboration in using Internet-based technology 
to increase the efficiency of Government-to-business 
transactions; 
"(iii) identification of mechanisms for providing 
incentives to program managers and other Government 
employees to develop and implement innovative uses 
of information technologies; and 
"(iv) identification of opportunities for public, pri-
vate, 
and 
intergovernmental 
collaboration 
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 citizen-centered strategies and those activities 
'*'"^i^^^Mii^' 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2905 
which engage multiple agencies providing simil£ir or related 
information and services. 
"(11) Oversee the work of the General Services Administra-
tion and other agencies in developing the integrated Internet-
based system under section 204 of the E-Government Act of 
2002. 
"(12) Coordinate with the Administrator for 
Federal 
Procurement Policy to ensure effective implementation of elec-
tronic procurement initiatives. 
"(13) Assist Federal agencies, including the General Serv-
ices Administration, the Department of Justice, and the United 
States Access Bogu-d in— 
"(A) implementing accessibility stEindards under sec-
tion 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d); 
and 
"(B) ensuring compliamce with those standards through 
the budget review process and other means. 
"(14) Oversee the development of enterprise architectures 
within and across agencies. 
"(15) Assist the Director and the Deputy Director for 
Management in overseeing agency efforts to ensure that elec-
tronic Government activities incorporate adequate, risk-based, 
and cost-effective security compatible with business processes. 
"(16) Administer the Office of Electronic Government estab-
lished 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 
£ind Budget, including the Office of Electronic Government, the 
Office of Information and Regulatory Affairs, and other relevant 
offices, have adequate steiff and resources to properly fulfill all 
functions under the E-Govemment Act of 2002. 
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§ 3603. Chief Information Officers Council 
"(a) There is established in the executive branch a Chief Establishment. 
Information Officers Council. 
"(b) The members of the Council shedl 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 Electronic Govern-
ment. 
"(3) The Administrator of the Office of Information and 
Regulatory Affairs. 
"(4) The chief information officer of each agency described 
under section 901(b) of title 31. 
"(5) The chief information officer of the Central Intelligence 
Agency. 
"(6) The chief information officer of the Department of 
the Army, the Department of the Navy, and the Department 
of the Air Force, if chief information officers have been des-
ignated for such departments under section 3506(a)(2)(B). 
"(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 behalf of the Deputy 
Director for Management. 
116 STAT. 2906 
PUBLIC LAW 107-347—DEC. 17, 2002 
"(2)(A) The Vice Chairm£in of the Council shall be selected 
by the Council from among its members. 
"(B) The Vice Chsiirman shall serve a 1-year term, and may 
serve multiple terms. 
"(3) The Administrator of General Services shall provide 
administrative and other support for the Council. 
"(d) The Council is designated the principal interagency forvun 
for improving agency practices related to the design, acquisition, 
development, modernization, use, operation, sharing, and perform-
ance of Federal Government information resources. 
"(e) In performing its duties, the Council shall consult regularly 
with representatives of State, local, and tribal governments. 
"(f) The Council shall perform functions that include the fol-
lowing: 
"(1) Develop recommendations for the Director on Govern-
ment information resources management policies and require-
ments. 
"(2) Share experiences, ideas, best practices, and innovative 
approaches related to information resources management. 
"(3) Assist the Administrator in the identification, develop-
ment, and coordination of multiagency projects £ind other 
innovative initiatives to improve Government 
performance 
through the use of information technology. 
"(4) Promote the development and use of common perform-
ance measures for agency information resources management 
under this chapter and title II of the E-Govemment Act of 
2002. 
"(5) Work as appropriate with the National Institute of 
Standeirds and Technology and the Administrator to develop 
recommendations on information technology standards devel-
oped under section 20 of the National Institute of Standards 
and Technology Act (15 U.S.C. 278g-3) and promulgated under 
section 11331 of title 40, and maximize the use of commercial 
standards as appropriate, including the following: 
"(A) Standards and guidelines for interconnectivity and 
interoperability as described 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 security. 
"(6) Work with the Office of Personnel Management 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 resources management activities. 
*
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§ 3604. E-Government Fund 
"(a)(1) There is established in the Treasury of the United States 
the E-Government Fund. 
"(2) The Fimd shall be administered by the Administrator of 
the General Services Administration to support projects approved 
by the Director, assisted by the Administrator of the Office of 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2907 
Electronic Government, that enable the Federal Grovemment to 
expand its ability, through the development and implementation 
of innovative uses of the Internet or other electronic methods, 
to conduct activities electronically. 
"(3) Projects under this subsection may include efforts to— 
"(A) make Federal Government information 2ind services 
more readily available to members of the public (including 
individuals, businesses, grantees, and State and local govern-
ments); 
"(B) make it easier for the public to apply for benefits, 
receive services, pursue business opportunities, submit informa-
tion, 8uid otherwise conduct transactions with the FedereJ 
Government; and 
"(C) enable Federal agencies to take advantage of informa-
tion technology in sharing information and conducting trans-
actions with each other and with State and local governments. 
"(b)(1) The Administrator shall— 
"(A) establish procedures for accepting and reviewing pro- Procedures. 
posals for funding; 
"(B) consult with interagency councils, including the Chief 
Information Officers Council, the Chief Financial Officers 
Council, and other interagency mginagement councils, in estab-
lishing procedures and reviewing proposals; and 
"(C) assist the Director in coordinating resources that agen-
cies receive from the Fund with other resources available to 
agencies for similar piuposes. 
"(2) When reviewing proposals and managing the Fund, the 
Administrator shall observe and incorporate the following proce-
dvires: 
"(A) A project requiring substantisd involvement or funding 
from an agency shall be approved by a senior official with 
agencywide authority on behalf of the head of the agency, 
who shall report directly to the head of the agency. 
"(B) Projects shall adhere to fundamental capital 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 potential continuation of projects after 
all funds made avmlable from the Fund are expended. 
"(D) After considering the recommendations of the inter-
agency councils, the Director, assisted by the Administrator, 
shall have final authority to determine which of the candidate 
projects shall be funded from the Fund. 
"(E) Agencies shall assess the results of fimded 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, including citi-
zens, businesses, the Federal Government, or other govern-
ments; 
"(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; 
116 STAT. 2908 
PUBLIC LAW 107-347—DEC. 17, 2002 
"(D) is interagency in scope, including projects imple-
mented by a primary or single agency that— 
"(i) could confer benefits on multiple agencies; and 
"(ii) have the support of other agencies; and 
"(E) has performance objectives that tie to agency mis-
sions Eind strategic goals, and interim results that relate 
to the objectives; and 
"(2) may also rank proposals based on criteria that include 
whether a proposal— 
"(A) has Govemmentwide application or implications; 
"(B) has demonstrated support by the public to be 
served; 
"(Cj integrates Federal with State, local, or tribed 
approaches to service delivery; 
"(D) identifies resource commitments fi-om nongovern-
mental sectors; 
"(E) identifies resource commitments from the agencies 
involved; 
"(F) uses web-based technologies to achieve objectives; 
"(G) identifies records management £ind records access 
strategies; 
"(H) supports more effective citizen peirticipation in 
and interaction with agency activities that further progress 
toward a more citizen-centered Government; 
"(I) directly delivers Government information and serv-
ices to the public or provides the infrastructure for delivery; 
"(J) supports integrated service delivery; 
"(K) describes how business processes across agencies 
will reflect appropriate transformation simultaneous to 
technology implementation; and 
"(L) is new or innovative and does not supplant existing 
funding streams within agencies. 
"(d) The Fund may be used to fund the integrated Internet-
based system under section 204 of the E-Government Act of 2002. 
Notification. 
"(e) None of the funds provided from the Fund may be trans-
ferred to £uiy agency until 15 days after the Administrator of 
the General Services Administration has submitted to the Commit-
tees on Appropriations of the Senate and the House of Representa-
tives, 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 description of how 
the funds are to be allocated and how the expenditure will further 
the purposes of this chapter. 
Reports. 
"(f)(1) The Director shall report annually to Congress on the 
operation of the Fund, through the report established under section 
3606. 
"(2) The report under paragraph (1) shall describe— 
"(A) EJI projects which the Director has approved for 
funding from the Fund; and 
"(B) the results that have been achieved to date for these 
funded projects. 
"(g)(1) There are authorized to be appropriated to the Fund— 
"(A) $45,000,000 for fiscal year 2003; 
"(B) $50,000,000 for fiscal year 2004; 
"(C) $100,000,000 for fiscal year 2005; 
"(D) $150,000,000 for fiscal year 2006; and 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2909 
"(E) such sums as are necessary for fiscal year 2007. 
"(2) Funds appropriated under this subsection sheill remain 
available until expended. 
"§3605. Program to encourage innovative 
solutions 
to 
enhance electronic Government services 
and 
processes 
"(a) ESTABLISHMENT OF PROGRAM.—The Administrator shall 
establish and promote a Governmentwide program to encourage 
contractor innovation and excellence in facilitating the development 
£ind enhancement of electronic Government services and processes. 
"(b) ISSUANCE OF ANNOUNCEMENTS SEEKING INNOVATIVE SOLU-
TIONS.—Under the program, the Administrator, in consultation with 
the Council and the Administrator for Federal Procurement Policy, 
shall issue announcements seeking unique and innovative solutions 
to facilitate the development and enhancement of electronic Govern-
ment services and processes. 
"(c) 
MULTIAGENCY TECHNICAL ASSISTANCE TEAM.—(1) 
The 
Administrator, in consultation with the Council and the Adminis-
trator for Federsil Procurement Policy, sheill convene a multiagency 
technical assistance team to assist in screening proposals submitted 
to the Administrator to provide unique and innovative solutions 
to facilitate the development and enhancement of electronic Govern-
ment services and processes. The team sheJl be composed of 
employees of the agencies represented on the Council who have 
expertise in scientific and technical disciplines that would facilitate 
the assessment of the feasibility of the proposals. 
"(2) The technical assistance team shall— 
"(A) assess the feasibility, scientific and technical merits, 
and estimated cost of each proposal; and 
"(B) submit each proposal, and the assessment of the pro-
posal, to the Administrator. 
"(3) The technicgJ assistance team shall not consider or evaluate 
proposals submitted in response to a solicitation for offers for a 
pending procurement or for a specific agency requirement. 
"(4) After receiving proposals and assessments from the tech-
nical assistance team, the Administrator shall consider recom-
mending appropriate proposals for funding under the E-Government 
Fund established under section 3604 or, if appropriate, forward 
the proposal and the assessment of it to the executive agency 
whose mission most coincides with the subject matter of the pro-
posal. 
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§ 3606. E-Govemment report 
"(a) Not later than March 1 of each year, the Director shall Deadline, 
submit an E-Government status report to the Committee on Govern-
mental Affairs of the Senate and the Committee on Government 
Reform of the House of Representatives. 
"(b) The report under subsection (a) shall contain— 
"(1) a summary of the information reported by agencies 
under section 202(f) of the E-Govemment Act of 2002; 
"(2) the information required to be reported by section 
3604(f); and 
"(3) a description of compliance by the Federal Government 
with other goals and provisions of the E-Government Act of 
2002.". 
99-194 O - 03 - 16A: QL 3 Part 4 
116 STAT. 2910 
PUBLIC LAW 107-347—DEC. 17, 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 (Jovemment Services 3601". 
SEC. 102. CONFORMING AMENDMENTS. 
(a) 
ELECTRONIC 
GOVERNMENT 
AND 
INFORMATION 
TECH-
NOLOGIES.— 
(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 technologies 
"The Administrator of General Services shall consult with the. 
Administrator of the Office of Electronic Government on programs 
undertaken by the General Services Administration to promote 
electronic Government and the efficient use of information tech-
nologies by Federal agencies.". 
(2) TECHNICAL AND CONFORMING AMENDMENT.—The table 
of sections for chapter 3 of such 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 MANAGEMENT 
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 following: 
"(5) Cheur the Chief Information Officers Coimcil estab-
lished 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: 
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§ 507. Office of Electronic Government 
"The Office of Electronic Government, established under section 
3602 of title 44, is an office in the Office of Memagement and 
Budget.". 
(2) TECHNICAL AND CONFORMING AMENDMENT.—The table 
of sections for chapter 5 of title 31, United States Code, is 
Eimended by inserting after the item relating to section 506 
the following: 
"507. Office of Electronic Government.". 
TITLE II—FEDERAL MANAGEMENT AND 
PROMOTION OF ELECTRONIC GOV-
ERNMENT SERVICES 
44 use 3501 
SEC. 201. DEFINITIONS. 
Except as otherwise provided, in this title the definitions under 
sections 3502 and 3601 of title 44, United States Code, sh£dl apply. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2911 
SEC. 202. FEDERAL AGENCY RESPONSffilLrriES. 
44 USC 3501 
(a) IN GENERAL.—The head of each agency shall be responsible 
for— 
(1) complying with the requirements of this Act (including 
the £imendments made by this Act), the related information 
resource management policies and guidance established by the 
Director of the Office of Management and Budget, and the 
related information technology standsirds promulgated by the 
Secretary of Commerce; 
(2) ensuring that the information resource management 
policies and guidance established imder this Act by the Director, 
and the related information technology stsmdards promulgated 
by the Secretary of Commerce are commiuiicated promptly 
and effectively to all relevant officials within their agency; 
£ind 
(3) supporting the efforts of the Director £uid the Adminis-
trator of the General Services Administration to develop, main-
tain, and promote an integrated Internet-based system of deliv-
ering Federal Government information and services to the 
public under section 204. 
(b) PERFORMANCE INTEGRATION.— 
(1) Agencies shall develop performance measures that dem-
onstrate how electronic government enables progress towsird 
agency objectives, strategic goals, and statutory mandates. 
(2) In measiuing performance under this section, 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; £uid 
(C) adoption of innovative information technology, 
including the appropriate use of commercial best practices. 
(4) Agencies shall link their performance goals, as appro-
priate, to key groups, including citizens, businesses, and other 
governments, and to interned Federal Government operations. 
(5) As appropriate, agencies shall work collectively in 
linking their performance goals to groups identified under para-
graph (4) and shall use information technology in delivering 
Government information and services to those groups. 
(c) AVOIDING DIMINISHED ACCESS.—^When promulgating policies 
Euid implementing programs regarding the provision of Government 
information and services over the Internet, agency heads shall 
consider the impact on persons without access to the Internet, 
and shall, to the extent practicable— 
(1) ensure that the availability of Government information 
Eind services has not been diminished for individuals who lack 
access to the Internet; and 
(2) pursue alternate modes of delivery that make Govern-
ment information and services more accessible to individuals 
who do not own computers or lack access to the Internet. 
(d) ACCESSIBILITY TO PEOPLE WITH DISABILITIES.—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 public in the develop-
ment and implementation of policies and programs. 
116 STAT. 2912 
PUBLIC LAW 107-347—DEC. 17, 2002 
(f) CHIEF 
INFORMATION OFFICERS.—The Chief Information 
Officer of each of the agencies designated under chapter 36 of 
title 44, United States Code (as added by this Act) shall be respon-
sible for— 
(1) participating in the functions of the Chief Information 
Officers Council; and 
(2) monitoring the implementation, within their respective 
agencies, of information technology standards promulgated by 
the Secretary of Commerce, including common standards for 
interconnectivity and interoperability, categorization of Federal 
Government electronic information, and computer system effi-
ciency 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; Eind 
(C) how electronic Government initiatives of the agency 
improve performance in delivering programs to constitu-
encies. 
(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 requirements; and 
(C) which addresses any section in this title releveuit 
to that agency. 
(h) USE OF TECHNOLOGY.—Nothing in this Act supersedes the 
responsibility of an agency to use or manage information technology 
to deliver Government information and services that fulfill the 
statutory mission and programs of the agency. 
(i) NATIONAL SECURITY SYSTEMS.— 
(1) INAPPLICABILITY.—Except as provided under paragraph 
(2), this title does not apply to national 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 systems to the extent prac-
ticable and consistent with law. 
44 use 3501 
SEC. 203. COMPATIBILITY OF EXECUTIVE AGENCY METHODS FOR USE 
note. 
AND ACCEPTANCE OF ELECTRONIC SIGNATURES. 
(a) PURPOSE.—The purpose of this section is to achieve inter-
operable implementation of electronic signatures 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 section 105 of title 5, United States Code) shall 
ensure that its methods for use and acceptance of electronic signa-
tures are compatible with the relevant policies and procedures 
issued by the Director. 
(c) AUTHORITY FOR ELECTRONIC SIGNATURES.—The Adminis-
trator 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 signatures. 
•ilfefjSl'' 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2913 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the General Services Administration, to ensure 
the development and operation of a Federed bridge certification 
authority for digital signature compatibility, and for other activities 
consistent 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. 
44USC3501 
(a) IN GENERAL.— 
(1) PUBLIC ACCESS.—The Director shall work with the 
Administrator of the General Services Administration and other 
agencies to maintain £uid promote an integrated Internet-based 
system of providing the public with access to Government 
information and services. 
(2) CRITERIA.—To the extent practicable, the integrated 
system shall be designed and operated according to the fol-
lowing criteria: 
(A) The provision of Internet-based 
Government 
information and services directed to key groups, including 
citizens, business, and other governments, and integrated 
according to function or topic rather than separated 
according to the boundaries of agency jurisdiction. 
(B) An ongoing effort to ensure that Internet-based 
Government services relevEint to a given citizen activity 
are available from a single point, 
(C) Access to Federal Government information and 
services consolidated, as appropriate, with Internet-based 
information and services provided by State, local, and tribal 
governments. 
(D) Access to Federal Government information held 
by 1 or more agencies shall be made available in a manner 
that protects privacy, consistent with law. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the General Services Administration 
$15,000,000 for the maintenance, improvement, £ind promotion of 
the integrated Internet-based system for fiscal year 2003, and such 
simas as Eire necessary for fisced yeeirs 2004 through 2007. 
SEC. 205. FEDERAL COURTS. 
44 USC 3501 
(a) INDIVIDUAL COURT WEBSITES.—The Chief Justice 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 following information: 
(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 steuiding or general orders of the court. 
(3) Individual rules, if in existence, of each justice or judge 
in that court. 
(4) Access to docket information for each case. 
(5) Access to the substance of all written opinions issued 
by the court, regardless of whether such opinions are to be 
published in the official court reporter, in a text searchable 
format. 
note. 
116 STAT. 2914 
PUBLIC LAW 107-347—DEC. 17, 2002 
Public 
information. 
Regulations. 
(6) Access to dociunents filed with the courthouse in elec-
tronic form, to the extent provided under subsection (c). 
(7) Any other information (including forms in a format 
that can be downloaded) that the court determines useful to 
the public. 
(b) MAINTENANCE OF DATA ONLINE.— 
(1) UPDATE OF INFORMATION.—The information and rules 
on each website shall be updated reguleirly euid kept reasonably 
current. 
(2) CLOSED CASES.—Electronic files and docket information 
for cases closed for more than 1 year 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 paragraph (3), each court 
shall make any document that is filed electronicgdly 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 docu-
ment 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 accordance with sections 2072 
and 2075 of title 28, United States Code, to protect privacy 
Eind security concerns relating to electronic filing of documents 
and the public availability under this subsection of documents 
filed electronicsdly. 
(ii) Such rules shsdl provide to the extent practicable for 
imiform treatment of privacy and security issues throughout 
the Federal courts. 
(iii) Such rules shall take into consideration best practices 
in Federal £ind State courts to protect private information or 
otherwise medntain 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 seciuity concerns, such rules shall provide that a party 
that wishes to file an otherwise proper document containing 
such information may file an unredacted dociunent under seal, 
which shall be retained by the coiu-t 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 redacted copy in the public file. 
(B)(i) Subject to clause (ii), the Judicial Conference of the 
United States may issue interim rules, £uid interpretive state-
ments relating to the application of such rules, which conform 
to the requirements of this paragraph and which shall cease 
to have effect upon the effective date of the rules required 
under subparagraph (A). 
(ii) Pending issuance of the rules required under subpara-
graph (A), any rule or order of £iny court, or of the Judicial 
Conference, providing for the redaction of certain categories 
of information in order to protect privacy and seciuity concerns 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2915 
arising from electronic filing shall comply with, and be con-
strued in conformity with, subparagraph (A)(iv). 
(C) Not later than 1 yeair after the rules prescribed 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 Con-
ference of the United States shall explore the feasibility of tech-
nology to post online dockets with links allowing aJ.1 filings, 
decisions, and rulings in each case to be obtained from the docket 
sheet of that case. 
(e) 
COST OF PROVIDING ELECTRONIC DOCKETING 
INFORMA-
TION.—Section 303(a) of the Judiciary Appropriations Act, 1992 
(28 U.S.C. 1913 note) is amended in the first sentence by striking 
"shall hereafter" £ind inserting "may, only to the extent necessary,". 
(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 sifter 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 notification to the Administrative Office of 
the United States Courts to defer compliance with 
£iny 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 submitted under 
this subp£iragraph shall state— 
(I) the reasons for the deferral; and 
(II) the online methods, if any, or £iny Edter-
native methods, such court 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 theresifter, 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 Judiciary of 
the House of Representatives that— 
(A) contains all notifications submitted to the Adminis-
trative Office of the United States Courts under this sub-
section; and 
(B) siunmarizes and evaluates all notifications. 
SEC. 206. REGULATORY AGENCIES. 
(a) PURPOSES.—The purposes of this section £ire to— 
(1) improve performance in the development and issuemce 
of agency regulations by using information technology to 
increase access, accountability, and transpeirency; and 
Deadlines. 
Reports. 
Deadlines. 
Deadline. 
44 use 3501 
note. 
116 STAT. 2916 
PUBLIC LAW 107-347—DEC. 17, 2002 
(2) enhance public participation in Government by elec-
tronic 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 ONLINE.—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) shedl ensure that a publicly accessible 
Federal Government website includes all information about that 
agency required to be published in the Federal Register under 
paragraphs (1) and (2) of section 552(a) of title 5, United States 
Code. 
(c) SUBMISSIONS BY ELECTRONIC MEANS.—To the extent prac-
ticable, 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 accessible Federal Government website 
contains electronic dockets for rulemakings under section 553 
of title 5, United States Code. 
(2) INFORMATION AVAILABLE.—^Agency electronic 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 require-
ments 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). 
44 use 3501 
SEC. 207. ACCESSffiELITY, USABILITY, AND PRESERVATION OF 
note. 
GOVERNMENT INFORMATION. 
(a) PURPOSE.—The purpose of this section is to improve the 
methods by which Government information, including information 
on the Internet, is organized, preserved, and made accessible to 
the public. 
(b) DEFINITIONS.—In this section, the term— 
(1) "Committee" means the Interagency Committee on 
Government Information established imder 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 peirticipation of human 
editors. 
(c) INTERAGENCY COMMITTEE.— 
Deadline. 
(1) ESTABLISHMENT.—Not later than 180 days after the 
date of enactment of this title, the Director shall establish 
the Interagency Committee on Government Information. 
(2) MEMBERSHIP.—The Committee shall be chaired by the 
Director or the designee of the Director and— 
(A) shall include representatives from— 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2917 
(i) the National Archives £ind Records Administra-
tion; 
(ii) the offices of the Chief Information Officers 
from Federal agencies; and 
(iii) other relevant officers from the executive 
branch; and 
(B) may include representatives from the Federal legis-
lative 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 advocacy organizations; 
(B) conduct studies and submit recommendations, as 
provided under this section, to the Director and Congress; 
and 
(C) share effective practices for access to, dissemination 
of, and retention of Federal information. 
(4) TERMINATION.—The Committee may be terminated on 
a date determined by the Director, except the Committee may 
not terminate before the Committee submits all recommenda-
tions 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 sheill submit 
recommendations to the Director on— 
(A) the adoption of 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 electronically, 
including by searchable identifiers; and 
(ii) in ways that are interoperable across agencies; 
(B) the definition of categories of Government informa-
tion 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 recommendations 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 se£irchable electronically, 
including by searchable identifiers; 
(ii) in ways that are interoperable across agencies; 
and 
(iii) that are, as appropriate, consistent with the 
provisions imder section 3602(f)(8) of title 44, United 
States Code; 
(B) defining categories of Government information 
which shall be required to be classified under the stand-
ards; and 
(C) determining priorities and developing schedules 
for the initied implementation of the standards by agencies. 
(3) MODIFICATION OF POLICIES.—After the submission of 
agency reports under paragraph (4), the Director shall modify 
Deadline. 
Deadline. 
Policies. 
116 STAT. 2918 
PUBLIC LAW 107-347—DEC. 17, 2002 
Reports. 
Deadline. 
Deadline. 
Policies. 
Reports. 
Deadline. 
Gmdelines. 
the policies, as needed, in consultation with the Committee 
£ind interested parties. 
(4) AGENCY FUNCTIONS.—Each agency shall report einnually 
to the Director, in the report established imder section 202(g), 
on compliance of that agency with the policies issued under 
paragraph (2)(A). 
(e) PUBLIC ACCESS TO ELECTRONIC INFORMATION.— 
(1) COMMITTEE FUNCTIONS.—Not later than 2 years after 
the date of enactment of this Act, the Committee shall submit 
recommendations to the Director £ind 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 £uid com-
prehensively 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 recommendations 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 comprehensively to Government information on the 
Internet and to other electronic records; and 
(B) imposing timetables for the implementation of the 
policies, procedures, and technologies by agencies. 
(3) MODIFICATION OF POLICIES.—^After the submission of 
agency reports under peiragraph (4), the Archivist of the United 
States sh£ill modify the policies, as needed, in consultation 
with the Committee and interested pairties. 
(4) AGENCY FUNCTIONS.—Each agency shall report annually 
to the Director, in the report established under section 202(g), 
on complieince 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 direct links 
to— 
(i) descriptions of the mission and 
statutory 
authority of the agency; 
(ii) information made available to the public under 
subsections (a)(1) £ind (b) of section 552 of title 5, 
United States Code (commonly referred to as the 
"Freedom of Information Act"); 
(iii) information about the organizational 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; 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2919 
(iii) tools to aggregate and disaggregate data; and 
(iv) security protocols to protect information. 
(2) AGENCY REQUIREMENTS.—(A) Not later than 2 years Deadline, 
after the date of enactment of this Act, each agency shall— 
(i) consult with the Committee and solicit public com-
ment; 
(ii) establish a process for determining which Govern-
ment information the agency intends to make available 
and accessible to the public on the Internet and by other 
me£ins; 
(iii) develop priorities and schedules for making 
Government information available and accessible; 
(iv) make such fined determinations, priorities, and 
schedules available for public comment; 
(v) post such final determinations, priorities, and 
schedules on the Internet; and 
(vi) submit such final determinations, priorities, and 
schedules to the Director, in the report established under 
section 202(g). 
(B) Each agency shall update determinations, priorities, 
and schedules of the agency, as needed, sifter consulting with 
the Committee and soliciting public comment, if appropriate. 
(3) PUBLIC DOMAIN DIRECTORY OF PUBLIC FEDERAL GOVERN-
MENT WEBSITES.— 
(A) ESTABLISHMENT.—Not later than 2 years after the Deadline, 
effective date of this title, the Director and each agency 
shall— 
(i) develop and establish a public domain directory 
of public Federal Government 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 
assisteuice of each 
agency, the Director shedl— 
(i) direct the development of the directory through 
a collaborative effort, including input fi*om— 
(I) agency librarians; 
(II) information technology managers; 
(III) program managers; 
(IV) records managers; 
(V) Federal depository librarians; £uid 
(VI) other interested parties; and 
(ii) develop a public domain taxonomy of subjects 
used to review gind categorize public Federal Govern-
ment websites. 
(C) UPDATE.—^With the assistemce of each agency, the 
Administrator of the Office of Electronic Government 
shall— 
(i) update the directory as necessary, but not less Deadline, 
than every 6 months; and 
(ii) solicit interested persons for improvements to 
the directory, 
(g) ACCESS TO FEDERALLY FUNDED RESEARCH AND DEVELOP-
MENT.— 
(1) DEVELOPMENT AND MAINTENANCE OF GOVERNMENTWIDE 
REPOSITORY AND WEBSITE.— 
116 STAT. 2920 
PUBLIC LAW 107-347—DEC. 17, 2002 
(A) REPOSITORY AND WEBSITE.—The Director of 
the 
Office of Management and Budget (or the Director's dele-
gate), 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 max-
imum extent feasible, information about research and 
development funded by the Federal Government, and 
the repository shall— 
(I) include information about research and 
development funded by the Federal Grovernment, 
consistent with any relevant protections for the 
information under section 552 of title 5, United 
States Code, and performed by— 
(aa) institutions not a part of the Federal 
Government, including State, local, and for-
eign 
governments; 
industrial 
firms; 
edu-
cational institutions; not-for-profit organiza-
tions; federally funded research and develop-
ment centers; and private individuals; and 
(bb) entities of the Federal Government, 
including research and development labora-
tories, centers, and offices; and 
(II) integrate information about each separate 
research 
and 
development 
task 
or 
aw£ird, 
including— 
(aa) the dates upon which the task or 
award is expected to start and end; 
(bb) a brief summary describing the objec-
tive and the scientific 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 provided to the task or award 
over its lifetime and the amount of funds 
expected to be provided in each fiscal year 
in which the work of the task or aw£ird is 
ongoing; 
(ee) £my restrictions attached to the task 
• 
or award that would prevent the sharing with 
the general public of any or all of the informa-
tion required by this subsection, and the rea-
sons for such restrictions; and 
(ff) such other information as may be 
determined to be appropriate; and 
Public 
(ii) 1 or more websites upon which all or part 
information. 
of the repository of Federal research and development 
shall be made available to £uid searchable by Federal 
agencies and non-Federal entities, including the gen-
eral public, to facilitate— 
(I) the coordination of Federal research £ind 
development activities; 
(II) collaboration among those conducting Fed-
eral research and development; 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2921 
(III) the transfer of technology among Federal 
agencies £ind between Federsd agencies and non-
Federal entities; and 
(IV) access by policymakers amd the public 
to information concerning Federal research and 
development activities, 
(B) OVERSIGHT.—The Director of the Office of Manage-
ment and Budget shall issue any guidance determined 
necessEiry 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 
meinner prescribed by the Director of the Office of Management 
and Budget. 
(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 con-
sultation with interested peirties, the Committee shsdl submit 
recommendations to the Director on— 
(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 eind development centers. 
(4) FUNCTIONS OF THE DIRECTOR.—^After submission of rec-
ommendations by the Committee under paragraph (3), the 
Director shsdl report on the recommendations 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 author-
ized to be appropriated for the development, maintenance, Euid 
operation of the Governmentwide repository and website under 
this subsection— 
(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 pmpose of this section is to ensure sufficient 
protections for the privacy of personal information as agencies 
implement citizen-centered electronic Government. 
(b) PRIVACY IMPACT ASSESSMENTS.— 
(1) RESPONSIBILITIES OF AGENCIES.— 
(A) IN GENERAL.—^An agency shall take 
actions 
described under subparagraph (B) before— 
(i) developing or procuring information technology 
that collects, maintains, or (hsseminates information 
that is in an identifiable form; or 
(ii) initiating a new collection of information that— 
(I) will be collected, maintained, or dissemi-
nated using information technology; and 
(II) includes £iny information in an identifiable 
form permitting the physical or online contacting 
of a specific individual, if identical questions have 
been posed to, or identical reporting requirements 
Guidelines. 
Deadline. 
Reports. 
44 use 3501 
note. 
116 STAT. 2922 
PUBLIC LAW 107-347—DEC. 17, 2002 
imposed on, 10 or more persons, other than agen-
cies, instrumentahties, or employees of the Federal 
Government. 
(B) AGENCY ACTIVITIES.—To the extent required under 
subparagraph (A), each agency shall— 
(i) conduct a privacy impact assessment; 
(ii) ensure the review of the privacy impact assess-
ment by the Chief Information Officer, or equivalent 
official, as determined by the head of the agency; and 
Public 
(iii) if practicable, after completion of the review 
i»^rmation. 
under clause (ii), make the privacy impact assessment 
DubUcatim ^'^^' 
publicly available through the website of the agency, 
publication in the Federal Register, or other means. 
(C) SENSITIVE INFORMATION.—Subparagraph (B)(iii) 
may be modified or waived for security reasons, or to 
protect classified, sensitive, or private information con-
tained in £in assessment. 
(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. 
(2) CONTENTS OF A PRIVACY IMPACT ASSESSMENT.— 
(A) IN GENERAL.—The Director shall issue guidance 
to agencies specifying the required contents of a privacy 
impact assessment. 
(B) GUIDANCE.—The guidance shall— 
(i) ensure that a privacy impact assessment is 
commensiwate with the size of the information system 
being assessed, the sensitivity of information that is 
"^ 
in £in identifiable form in that system, and the risk 
of hzirm from unauthorized release of that information; 
and 
(ii) require that a privacy impact assessment 
address— 
(I) what information is to be collected; 
(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 individuals regarding what 
information is collected and how that information 
is shared; 
(VI) how the information will be secured; £uid 
(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— 
Guidelines. 
(A) develop policies and guidelines for agencies on the 
conduct of privacy impact assessments; 
(B) oversee the implementation of the privacy impact 
assessment process throughout the Government; and 
(C) require agencies to conduct privacy impact assess-
ments of existing information systems or ongoing collections 
of information that is in an identifiable form as the Director 
determines appropriate. 
(c) PRIVACY PROTECTIONS ON AGENCY WEBSITES.— 
:.;-,;jj£jtfi4|^ '
°
'
"
' 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2923 
(1) PRIVACY POLICIES ON WEBSITES.— 
(A) GUIDELINES FOR NOTICES.—The Director shall 
develop guidance for privacy notices on agency websites 
used by the public. 
(B) CONTENTS.—The guidance shall require that a pri-
vacy 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 collected; 
(iii) the intended use of the agency of the informa-
tion; 
(iv) with whom the information will be shared; 
(v) what notice or opportunities for consent would 
be provided to individu^s regarding what information 
is collected and how that information is shared; 
(vi) how the information will be secured; and 
(vii) the rights of the individusJ under section 552a 
of title 5, United States Code (commonly referred to 
as the "Privacy Act"), and other laws relevant to the 
protection of the privacy of an individual. 
(2) PRIVACY POLICIES IN MACHINE-READABLE FORMATS.— Guidelines. 
The Director shsdl issue guideuice requiring agencies to trans-
late privacy policies into a standardized machine-readable for-
mat. 
(d) DEFINITION.—In this section, the term "identifiable form" 
means any representation of information that permits the identity 
of an individusd to whom the information applies to be reasonably 
inferred by either direct or indirect means. 
SEC. 
209. 
FEDERAL 
INFORMATION 
TECHNOLOGY 
WORKFORCE 44USC3501 
DEVELOPMENT. 
note. 
(a) PURPOSE.—The purpose of this section is to improve the 
skills of the Federsd workforce in using information technology 
to deliver Government information and services. 
(b) WORKFORCE DEVELOPMENT.— 
(1) IN GENERAL.—In consultation with the Director of the 
Office of Management £uid Budget, the Chief Information Offi-
cers Council, and the Administrator of General Services, the 
Director of the Office of Personnel Management shall— 
(A) analyze, on an ongoing basis, the personnel needs 
of the Federal Government related to information tech-
nology and information resource management; 
(B) identify where current information technology and 
information resource management training do not satisfy 
the personnel needs described in subpeu-agraph (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 
management; and 
(D) assess the treiining of Federal employees in 
information technology disciplines in order to ensure that 
the information resource management needs of the Federail 
Government are addressed. 
(2) INFORMATION TECHNOLOGY TRAINING PROGRAMS.—The 
head of each Executive agency, after consultation with the 
Director of the Office of Personnel Management, the Chief 
116 STAT. 2924 
PUBLIC LAW 107-347—DEC. 17, 2002 
Records. 
Regulations. 
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— 
(A) have curricula covering a broad range of informa-
tion technology disciplines corresponding to the specific 
information technology and information resource manage-
ment 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 remote instructors, wherever such 
features can be applied without reducing the effectiveness 
of the training or negatively impacting academic standards. 
(3) 
GOVERNMENTWIDE POLICIES AND EVALUATION.—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 
standeirds for training and uniform implementation of this sub-
section by Executive agencies, with due regard for differences 
in program requirements among agencies that may be appro-
priate and warranted in view of the agency mission. The 
Director of the Office of Personnel Management shall eveduate 
the implementation of the provisions of this subsection by 
Executive agencies. 
(4) CHIEF INFORMATION OFFICER AUTHORITIES AND RESPON-
SIBILITIES.—Subject to the authority, direction, and control of 
the head of an Executive agency, the chief information officer 
of such agency shall carry out all powers, functions, and duties 
of the head of the agency with respect to implementation 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 REPORTING.—The 
Director of the Office of Management and Budget shall ensure 
that the heads of Executive agencies collect and maintain 
standardized information on the information technology and 
information resources management workforce related to the 
implementation of this subsection. 
(6) AUTHORITY TO DETAIL EMPLOYEES TO NON-FEDERAL 
EMPLOYERS.—In canying 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 of 
the Office of Personnel Mginagement shall prescribe regulations 
for such program, including the conditions for service and duties 
as the Director considers 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 
information 
resource management needs and the limitations imposed by 
resource needs in other occupational areas, and consistent with 
their overall workforce development strategies, agencies shall 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2925 
encourage employees to participate in occupational information 
technology training. 
(9) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to the Office of Personnel Management 
for the implementation 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 purposes of this 
subsection, the term "Executive agency" 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 PROGRAM.— 
(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. Appucation to Office of the Chief Technology Officer of the District of Colum-
bia. 
"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 employee of an 
agency to a private sector orgsuiization without a change 
of position from the agency that employs the individual, 
or 
"(B) the assignment or loEin of an employee of a private 
sector organization to an agency without a change of posi-
tion from the private sector organization that employs the 
individual, 
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 employee of a private sector organization 
to the agency. An eligible employee is an individual who— 
"(1) works in the field of information technology manage-
ment; 
"(2) is considered an exceptional performer by the individ-
ual's ciurent employer; and 
"(3) is expected to assume increased information technology 
management responsibilities in the future. 
An employee of an agency shall be eligible to participate in this Eligibility. 
program only if the employee is employed at the GS-11 level 
116 STAT. 2926 
PUBLIC LAW 107-347—DEC. 17, 2002 
or above (or equivalent) and is serving under a career or cgireer-
conditional appointment or an appointment of equivalent tenure 
in the excepted service, and applicable requirements of section 
209(b) of the E-Government 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 concerned regarding the terms gind 
conditions of the employee'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 period equal to the 
length of the assignment; and 
"(2) provide that, in the event the employee fedls 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 pajonent 
of all expenses of the assignment. 
An amount under paragraph (2) shall be treated as a debt due 
the United States. 
"(c) TERMINATION.—^Assignments may be terminated by the 
agency or private sector organization concerned for any reason 
at any time. 
"(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 assignment 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 Coimcil, by 
agreement with the Office of Personnel Management, may assist 
in the administration of this chapter, including by maintaining 
lists of potential candidates for assignment under this chapter, 
establishing mentoring relationships for the benefit of individusds 
who are given assignments under this chapter, £ind publicizing 
the program. 
"(f) CONSIDERATIONS.—In exercising any authority under this 
chapter, an agency shall take into consideration— 
"(1) the need to ensure that small business concerns 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 agency for the training 
of employees in information technology management. 
^§ 3703. Assignment of employees to private sector oi^aniza-
tions 
"(a) IN GENERAL.—^An employee of an agency assigned to a 
private sector organization luider 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.—Notwithstanding any 
other provision of law, £in 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 emplo5anent during the assignment is deemed emplo3mient 
by the United States, except that, if the employee or the employee's 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2927 
dependents receive from the private sector organization any pay-
ment under an insursince policy for which the premitmi is wholly 
paid by the private sector organization, or other benefit of smy 
kind on account of the same injury or death, then, the amount 
of such payment or benefit shall be credited against any compensa-
tion otherwise payable under subchapter I of chapter 81. 
"(c) REIMBURSEMENTS.—The assignment of an employee to a 
private sector organization under this chapter may be made with 
or without reimbursement by the private 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 government under section 3375, and for the pay, or a part 
thereof, of the employee during assignment. Any reimbursements 
shall be credited to the appropriation of the agency used for paying 
the travel and transportation expenses or pay. 
"(d) TORT LIABILITY; SUPERVISION.—The Federal Tort Claims 
Act and any other Federal tort liability statute apply to an employee 
of an agency assigned to a private sector organization under this 
chapter. The supervision of the duties of an employee of an agency 
so assigned 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 ensure that, of the assign-
ments made under this chapter from such agency to private 
sector organizations in each year, at least 20 percent are to 
small business concerns. 
"(2) DEFINITIONS.—For purposes of this subsection— 
"(A) the term 'small business concern' means a business 
concern that satisfies the definitions and stsindards speci-
fied by the Administrator of the Small Business Adminis-
tration under section 3(a)(2) of the Small Business Act 
(as from time to time amended by the Administrator); 
"(B) the term 'year' refers to the 12-month period begin-
ning on the date of the enactment 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 com-
mencing in such year. 
"(3) REPORTING REQUIREMENT.—^An agency which fails to Deadline. 
comply with paragraph (1) in a year shall, within 90 days 
after the end of such year, submit a report to the Committees 
on Government Reform and Small Business of the House of 
Representatives and the Committees on Governmentgd Affairs 
£ind Small Business of the Senate. The report shall include— 
"(A) the toted number of assignments made under this 
chapter from such agency to private sector orggoiizations 
in the year; 
"(B) of that total number, the number (£uid percentage) 
made to small business concerns; and 
"(C) the reasons for the agency's noncompliance 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 private sector organizations. 
116 STAT. 2928 
PUBLIC LAW 107-347—DEC. 17, 2002 
^§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 detsiil 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 o
f
— 
"(A) chapter 73; 
"(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 fi-om which he is assigned; and 
"(4) is subject to such regulations as the President may 
prescribe. 
The supervision of an employee of a private sector organization 
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 period of assignment, or for any contribu-
tion of the private sector organization to employee benefit systems. 
"(c) COORDINATION WITH CHAPTER 81.—^An employee of a pri-
vate 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 purpose of subchapter I of chapter 81, as £in employee 
as defined by section 8101 who had sustgdned the injury in the 
performance of duty, except that, if the employee or the employee's 
dependents receive from the private sector orgEinization any pay-
ment 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 credited against any compensa-
tion otherwise payable under subchapter I of chapter 81. 
"(d) PROHIBITION AGAINST CHARGING CERTAIN COSTS TO THE 
FEDERAL GOVERNMENT.—^A private sector 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 organiza-
tion to an employee assigned to an agency under this chapter 
for the period of the assignment. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2929 
"§ 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 Officer 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 pursuEuit 
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 applying such terms and conditions to aui 
assignment made pursuant 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 Government Com-
prehensive Merit Personnel Act of 1978 (sec. 1-601.01 et seq., 
D.C. Official Code) and section 601 of the District of Columbia 
Campaign Finaince 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 government of the District of Colimibia 
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 Management shall. Deadline. 
not later than April 30 and October 31 of each year, prepare 
and submit to the Committee on Government Reform of the House 
of Representatives and the Committee on Governmental Affairs 
of the Senate a semiannual report summarizing the operation of 
this chapter during the immediately preceding 6-month period 
ending on March 31 £uid September 30, respectively. 
"(b) CONTENT.—Each report shall include, with respect to the 
6-month period to which such report relates— 
"(1) the total number of individuals assigned to, £uid the 
total number of individuals assigned from, each agency during 
such period; 
"(2) a brief description of each assignment included 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; 
"(B) the respective positions to and from which the 
individual was assigned, including the duties and respon-
sibilities and the pay grade or level associated with each; 
and 
"(C) the duration and objectives of the individual's 
assignment; and 
"(3) such other information as the Office considers appro-
priate. 
"(c) PUBLICATION.—^A copy of each report submitted under sub-
section (a)— 
"(1) shall be published in the Federed Register; and 
Federal Register, 
publication. 
116 STAT. 2930 
PUBLIC LAW 107-347—DEC. 17, 2002 
Public 
"(2) shall be made publicly available on the Internet, 
information. 
"(d) AGENCY COOPERATION.—On request of the Office, agencies 
shall furnish such information and reports as the Office may require 
in order to carry out this section. 
*
*
§ 3707. Regulations 
"The Director of the Office of Personnel Management shall 
prescribe regulations for the administration of this chapter.". 
Deadline. 
(2) REPORT.—Not later than 4 years after the date of the 
enactment of this Act, the General Accounting Office shall 
prepare and submit to the Committee on Government Reform 
of the House of Representatives and the Committee on Govern-
mental Affairs of the Senate a report on the operation of chapter 
37 of title 5, United States Code (as added by this subsection). 
Such report shall include— 
(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 COMMUNICATIONS.— 
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: 
"(v) assigned from a private sector organization to an 
agency under chapter 37 of title 5.". 
(2) DISCLOSURE OF CONFIDENTIAL INFORMATION.—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: 
"(1) CONTRACT ADVICE BY FORMER DETAILS.—Whoever, being 
an employee of a private sector organization assigned to an agency 
under chapter 37 of title 5, within one year after the end of that 
assignment, knowingly represents or aids, counsels, or assists in 
representing any other person (except the United States) in connec-
tion with any contract with that agency shall be punished as pro-
vided in section 216 of this title.". 
(4) RESTRICTION ON DISCLOSURE OF PROCUREMENT INFORMA-
TION.—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 
employee 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 
shadl not, other than as provided by law, knowingly disclose 
contractor bid or proposal information or source selection 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2931 
information during the three-year period after the end of the 
assignment of such employee.". 
(e) REPORT ON EXISTING EXCHANGE PROGRAMS.— 
(1) EXCHANGE PROGRAM DEFINED.—For purposes of this 
subsection, the term "exchange program" meems 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 Govern-
ment 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 prepaire and submit to the Committee on 
Grovernment Reform of the House of Representatives and the 
Committee on Governmental Affairs of the Senate a report 
identifying all existing exchange programs. 
(3) SPECIFIC INFORMATION.—The report shall, for each such 
program, include— 
(A) a brief description of the program, including its 
size, eligibility requirements, £uid terms or conditions for 
participation; 
(B) specific citation to the law or other authority under 
which the progrsim is established; 
(C) the names of persons to contact for more informa-
tion, and how they may be reached; and 
(D) any other information which the Office considers 
appropriate. 
(f) REPORT ON THE ESTABLISHMENT OF A GOVERNMENTWIDE 
INFORMATION TECHNOLOGY TRAINING PROGRAM.— 
(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 Govern-
ment Reform of the House of Representatives eind the Com-
mittee on Governmental Affairs of the Senate a written report 
on the following: 
(A) The adequacy of any existing information tech-
nology training programs available to Federed employees 
on a Governmentwide basis. 
(B)(i) If one or more such programs already exist, rec-
ommendations as to how they might be improved. 
(ii) If no such program yet exists, recommendations 
as to how such a program might be designed and estab-
lished. 
(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 associated with the implementation £ind 
operation of such program as so established (or estimated dif-
ference in costs of any such program as so improved). 
(g) TECHNICAL AND CONFORMING AMENDMENTS.— 
Deadline. 
Deadline. 
116 STAT. 2932 
PUBLIC LAW 107-347—DEC. 17, 2002 
(1) AMENDMENTS TO TITLE 5, UNITED STATES CODE.—Title 
5, United States Code, is Eimended— 
(A) in section 3111, by adding at the end the following: 
"(d) Notwithstanding section 1342 of title 31, the head of £in 
agency may accept voluntary service for the United States under 
chapter 37 of this title auid regulations 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 fol-
lowing: 
"(4) Nothing in this section precludes an employee of a private 
sector organization, while assigned to an agency under chapter 
37, from continuing to receive pay and benefits from such organiza-
tion in accordance with such chapter.". 
(2) AMENDMENT TO TITLE IS, 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 £in agency under chapter 
37 of title 5, from continuing to receive pay euid 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 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 Federal agency 
to a private sector organization under chapter 37 of title 
5, United States Code; and". 
44 use 3501 
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-SAVINGS 
CON-
TRACTS.—(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 accel-
erate 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 investment 
to be undertaken by the contractor is likely to inhibit the 
government from obtaining the needed information technology 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2933 
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 government. 
"(3) Contracts awarded pursuant to the authority of this section 
shedl, to the maximum extent practicable, be performance-based 
contracts that identify objective outcomes and contain performance 
steindards 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 quantifiable baseline that 
is to be the basis upon which a savings share ratio is established 
that governs the amount of payment a contractor is to receive 
under the contract. Before commencement of performance of such 
a contract, the senior procurement executive of the agency shall 
determine in writing that the terms of the provision are quantifiable 
and will likely 3deld 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 attributable to a decrease in the number 
of civilian employees of the Federal Government performing the 
function. Except as provided in subparagraph (B), savings shall 
be credited to the appropriation or fimd against which charges 
were made to csury out the contract and shall be used for informa-
tion technology, 
"(B) Amounts retained by the agency under this subsection 
shall— 
"(i) without further appropriation, remain avadlable until 
expended; 
and 
"(ii) be applied first to fund any contingent liabilities associ-
ated with sh£ire-in-savings procurements 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 o
f
— 
"(A) appropriations available for the performance of the 
contract; 
"(B) appropriations available for acquisition of the informa-
tion technology procured under the contract, and not otherwise 
obligated; or 
"(C) funds subsequently appropriated for payments of costs 
of cancellation or termination, subject to the limitations in 
paragraph (3). 
"(2) The amount payable in the event of cancellation or termi-
nation of a share-in-savings contract shall be negotiated with the 
contractor at the time the contract is entered into. 
"(3)(A) Subject to subpEiragraph (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 avail-
able for the full costs of cancellation or termination of the contract 
if funds are avcdlable and sufficient to make pajonents with respect 
to the first fiscal year of the contract and the following conditions 
116 STAT. 2934 
PUBLIC LAW 107-347—DEC. 17, 2002 
are met regarding the funding of cancellation and termination 
liability: 
"(i) The amount of luifiinded contingent liability for the 
contract does not exceed the lesser o
f
— 
"(I) 25 percent of the estimated costs of a cancellation 
or termination; or 
"(ID $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 contracts 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 entity 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 realized by the 
agency, including enhanced revenues (other than enhanced 
revenues from the collection 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 mis-
sions; and 
"(B) the head of the agency pays the contractor an 
amount equal to a portion of the savings derived by the 
agency from— 
"(i) any improvements in mission-related or 
administrative processes that result from implementa-
tion of the solution; or 
"(ii) acceleration of achievement of agency mis-
sions. 
"(d) TERMINATION.—No share-in-savings contracts may be 
entered into under this section after September 30, 2005.". 
(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: 
41 use 266a. 
"SEC. 317. SHARE-XN-SAVINGS CONTRACTS. 
"(a) 
AUTHORITY TO ENTER 
INTO 
SHARE-IN-SAVINGS 
CON-
TRACTS.—(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. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2935 
"(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 investment 
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; £ind 
"(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 government. 
"(3) Contracts awarded pursuant to the authority of this section 
shall, to the maximum extent practicable, be performance-based 
contracts that identify objective outcomes and contain performsince 
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 quantifiable baseline that 
is to be the basis upon which a savings share ratio is established 
that governs the amount of payment a contractor is to receive 
under the contract. Before commencement of performance of such 
a contract, the senior 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 attributable to a decrease in the niunber 
of civilian employees of the Federal Government performing the 
function. Except 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 informa-
tion technology. 
"(B) Amounts retained by the agency under this subsection 
shall— 
"(i) without further appropriation, remain available until 
expended; and 
"(ii) be applied first to fund any contingent liabilities associ-
ated with share-in-savings procurements that eu-e 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 CEincellation 
or termination may be paid out o
f
— 
"(A) appropriations available for the performance of the 
contract; 
"(B) appropriations available for acquisition of the informa-
tion technology procured under the contract, and not otherwise 
obligated; or 
116 STAT. 2936 
PUBLIC LAW 107-347—DEC. 17, 2002 
"(C) fiinds subsequently appropriated for pa5anents of costs 
of cancellation or termination, subject to the limitations in 
paragraph (3). 
"(2) The amount payable in the event of cancellation or termi-
nation of a share-in-savings contract shall be negotiated 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 shsire-in-savings contracts under this section 
in any given fiscal year even if funds Eire not made specificedly 
available for the full costs of cancellation 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 regeirding the funding of cancellation and termi-
nation liability: 
"(i) The amount of unfunded contingent liability for the 
contract does not exceed the lesser o
f
— 
"(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 shEO-e-in-savings contracts that 
may be entered into under subparagraph (A) by all executive agen-
cies to which this chapter applies in a fiscsQ 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 entity 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 realized by the 
agency, including enhanced revenues (other than enhanced 
revenues from the collection 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 mis-
sions; and 
"(B) the head of the agency pays the contractor an 
amount equal to a portion of the savings derived by the 
agency fi'om— 
"(i) guiy improvements in mission-related or 
administrative processes that result fi*om implementa-
tion of the solution; or 
"(ii) acceleration of achievement of agency mis-
sions. 
"(d) TERMINATION.—No share-in-savings contracts may be 
entered into under this section eifter September 30, 2005.". 
(c) DEVELOPMENT OF INCENTIVES.—The Director of the Office 
of Management and Budget shall, in consultation with the Com-
mittee 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 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2937 
a portion of the savings (after payment of the contractor's share 
of the savings) derived from share-in-savings contracts as funds 
are appropriated to the agency in future fiscal years. 
(d) REGULATIONS.—Not later than 270 days after the date of Deadline, 
the enactment of this Act, the Federal Acqioisition Regulation shall 
be revised to implement the provisions enacted by this section. 
Such revisions shall— 
(1) provide for the use of competitive procedures in the 
selection Eind award of share-in-savings contracts to— 
(A) ensure the contractor's share of savings reflects 
the risk involved eind market conditions; and 
(B) otherwise yield greatest vadue to the government; 
and 
(2) allow appropriate regulatory flexibility to facilitate the 
use of sheire-in-savings contracts by executive agencies, 
including the use of innovative provisions for technology 
refreshment eind nonsteindard Federal Acquisition Regulation 
contract clauses. 
(e) ADDITIONAL GUIDANCE.—The Administrator of General Serv-
ices shall— 
(1) identify potential opportunities for the use of shsire-
in-savings contracts; and 
(2) in consultation with the Director of the Office of 
Management and Budget, provide guidance to executive agen-
cies for determining mutually beneficial savings share ratios 
and baselines from which savings may be measured. 
(f) 0MB REPORT TO CONGRESS.—In consultation with executive Deadline, 
agencies, the Director of the Office of Management £ind Budget 
shall, not later than 2 years after the date of the enactment of 
this Act, submit to Congress a report contedning— 
(1) a description of the number of share-in-savings contracts 
entered into by each executive agency under by this section 
and the Eimendments made by this section, and, for each con-
tract identified— 
(A) the information technology acquired; 
(B) the total amount of payments made to the con-
tractor; and 
(C) the total amount of savings or other measurable 
benefits realized; 
(2) a description of the ability of agencies to determine 
the baseline costs of a project aggdnst which savings can be 
measured; and 
(3) £iny recommendations, as the Director deems appro-
priate, regarding additional changes in law that may be nec-
essary to ensure effective use of share-in-savings contracts by 
executive agencies. 
(g) GAO REPORT TO CONGRESS.—The Comptroller General shall. Deadline. 
not later than 6 months after the report 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 Comptroller 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 mis-
sions; and 
116 STAT. 2938 
PUBLIC LAW 107-347—DEC. 17, 2002 
(3) a recommendation on whether the authority to enter 
into share-in-savings contracts should be continued, 
(h) REPEAL OF SHARE-IN-SAVINGS PILOT PROGRAM.— 
(1) REPEAL.—Section 11521 of title 40, United States Code, 
is repealed. 
(2) 
CONFORMING 
AMENDMENTS 
TO 
PILOT 
PROGRAM 
AUTHORITY.— 
(A) Section 11501 of title 40, United States Code, is 
amended— 
(i) in the section heading, by striking "PROGRAMS" 
and inserting "PROGRAM"; 
(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 conducted 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). 
(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 simended 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 amended by striking 
"programs" £ind inserting "program". 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2939 
(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 follows: 
"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 Administra-
tive Services Act of 1949 (as added by subsection (b)). 
SEC. 211. AUTHORIZATION FOR ACQUISITION OF INFORMATION TECH- 44 USC 3501 
NOLOGY BY STATE AND LOCAL GOVERNMENTS THROUGH note. 
FEDERAL SUPPLY SCHEDULES. 
(a) AUTHORITY TO USE CERTAIN SUPPLY SCHEDULES.—Section 
502 of title 40, United States Code, is amended by adding at 
the end the following new subsection: 
"(c) USE OF CERTAIN SUPPLY SCHEDULES.— 
"(1) IN GENERAL.—The Administrator may provide for the 
use by State or locEil governments of Federgd supply schedules 
of the General Services Administration for automated data 
processing equipment (including firmware), software, supplies, 
support equipment, and services (as contedned in Federal 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 
Federgd Government through the supply schedule shall be vol-
untary with respect to a sale to the State or IOCEQ government 
through such supply schedule. 
"(3) DEFINITIONS.—In this subsection: 
"(A) The term 'State or local government' includes any 
State, local, regional, or tribal government, or any 
instrumentality thereof (including any local educational 
agency or institution of higher education). 
"(B) The term 'tribsd government' means— 
"(i) 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 £ind services provided by the United States 
to Indians because of their status as Indians, and 
"(ii) any Alaska Native regioned or village corpora-
tion 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 Education Act of 1965 (20 U.S.C. 7713). 
"(D) The term 'institution of higher education' has the 
mesming given that term in section 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 Deadline, 
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)). 
116 STAT. 2940 
PUBLIC LAW 107-347—DEC. 17, 2002 
Deadline. 
44 use 3501 
note. 
Deadline. 
(c) REPORT.—Not later than December 31, 2004, the Adminis-
trator shall submit to the Committee on Government 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 information sys-
tems; 
(2) assist the public, including the regulated community, 
in electronically submitting information to agencies under Fed-
eral requirements, by reducing the burden of duplicate collec-
tion 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 violating the privacy rights of an indi-
vidual. 
(b) DEFINITIONS.—In this section, the term— 
(1) "agency" means an Executive agency as defined under 
section 105 of title 5, United States Code; and 
(2) "person" means any individual, trust, firm, joint stock 
company, corporation (including a government corporation), 
partnership, association, State, municipality, commission, polit-
ical subdivision of a State, interstate body, or agency or compo-
nent 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 Committee on Governmental Affairs of the Senate and 
the Committee on Government Reform of the House of Rep-
resentatives on progress toward integrating Federal informa-
tion systems across agencies. 
(2) CONTENTS.—The report under this section shall— 
(A) address the integration of data elements used in 
the electronic collection of information within databases 
established under Federal statute without reducing the 
quedity, accessibility, scope, or utility of the information 
contained in each database; 
(B) address the feasibility of developing, or enabling 
the development of, software, including Internet-based 
tools, for use by reporting persons in assembling, docu-
menting, and validating the accuracy of information elec-
tronically submitted to agencies under nonvoluntary, statu-
tory, and regulatory requirements; 
(C) adcfi-ess 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 information 
held by the participating agencies; 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2941 
(D) address the feasibility of incorporating other ele-
ments related to the purposes of this section at the discre-
tion of the Director; and 
(E) make any recommendations that the Director 
deems appropriate on the use of integrated reporting and 
information systems, to reduce the burden on reporting 
and strengthen public access to databases within and across 
agencies. 
(d) PILOT PROJECTS TO ENCOURAGE INTEGRATED COLLECTION 
AND MANAGEMENT OF DATA AND INTEROPERABILITY OF FEDERAL 
INFORMATION SYSTEMS.— 
(1) IN GENERAL.—In order to provide input to the study 
under subsection (c), the Director shall designate, in consulta-
tion with agencies, a series of no more than 5 pilot projects 
that integrate data elements. The Director shall consult with 
agencies, the regulated community, public interest organiza-
tions, and the public on the implementation of the pilot projects. 
(2) GOALS OF PILOT PROJECTS.— 
(A) IN GENERAL.—Each goal described under subpara-
graph (B) shall be addressed by at least 1 pilot project 
each. 
(B) GOALS.—The goals under this paragraph are to— 
(i) reduce information collection burdens by elimi-
nating duplicative data elements within 2 or more 
reporting requirements; 
(ii) create interoperability between or among public 
datalaases managed by 2 or more agencies using tech-
nologies and techniques that facilitate public access; 
and 
(iii) develop, or enable the development of, software 
to reduce errors in electronically submitted informa-
tion. 
(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 rel-
evant 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 relevEuit 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 Statisticed 
Confidentiality Order, and other relevant law. 
SEC. 213. COMMUNITY TECHNOLOGY CENTERS. 
44USC3501 
(a) PURPOSES.—The purposes of this section are to— 
^°^' 
(1) study and enhance the effectiveness of community tech-
nology centers, public libraries, and other institutions that pro-
vide computer and Internet access to the public; and 
99-194 O - 03 - 17A: QL 3 Part 4 
116 STAT. 2942 
PUBLIC LAW 107-347—DEC. 17, 2002 
(2) promote awareness of the availability of on-line govern-
ment information and services, to users of community tech-
nology centers, public libraries, and other public facilities that 
provide access to computer technology and Internet access to 
the public. 
Deadline. 
(b) STUDY AND REPORT.—Not later than 2 years after the effec-
tive 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 Affairs 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 
(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 commimity technology centers; 
(2) a strategy for— 
(A) continuing the evEduation of best practices used 
by community technology centers; and 
(B) establishing a network to share information 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 centers that 
have received Federal funds, including— 
(A) each center's name, location, services provided, 
director, other points of contact, number of individuals 
served; £uid 
(B) other relevant information; 
(5) an analysis of whether community technology 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 information Eoid 
resources. 
(d) COOPERATION.—^All agencies that fund community tech-
nology centers shall provide to the Administrator any information 
and assistance necessary for the completion of the study and the 
report under this section. 
(e) ASSISTANCE.— 
(1) IN GENERAL.—The Administrator, in consultation with 
the Secretary of Education, shall work with other relevant 
Federal agencies, and other interested persons in the private 
and nonprofit sectors to— 
(A) assist in the implementation of recommendations; 
and 
. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2943 
(B) identify other ways to assist community technology 
centers, pubUc hbraries, and other institutions that provide 
computer and Internet access to the pubHc. 
(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 mate-
rial in computer skills and Internet usage. 
(f) ONLINE TUTORIAL.— 
(1) IN GENERAL.—The Administrator, in consultation with 
the Secretary of Education, the Director 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 Grovernment information 
and services on the Internet; and 
(B) provides a guide to available online resources. 
(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 institutions that afford Internet access to 
the public. 
(g) PROMOTION OF COMMUNITY TECHNOLOGY CENTERS.—The 
Administrator, with assistance from the Department 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 development 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 ADVANCED 44USC3501 
INFORMATION TECHNOLOGY. 
note. 
(a) PURPOSE.—The purpose of this section is to improve how 
information technology is used in coordinating and facilitating 
information on disaster preparedness, response, £uid recovery, while 
ensuring the availability of such information across multiple access 
channels. 
(b) IN GENERAL.— 
(1) STUDY ON ENHANCEMENT OF CRISIS RESPONSE.—Not Deadline. 
later than 90 days after the date of enactment of this Act, 
the Administrator, in consultation with the Federal Emergency 
Management Agency, shall ensure that a study is conducted 
on using information technology to enhance crisis preparedness, 
response, and consequence management of natural and man-
made disasters. 
(2) CONTENTS.—The study under this subsection shall 
address— 
(A) a research and implementation strategy for effec-
tive use of information technology in crisis response and 
116 STAT. 2944 
PUBLIC LAW 107-347—DEC. 17, 2002 
consequence management, including the more effective use 
of technologies, management of information technology 
research initiatives, and incorporation of research advances 
into the information and commimications systems o
f
— 
(i) the Federal Emergency Management Agency; 
and 
(ii) other Federal, State, and local agencies respon-
sible for crisis preparedness, response, and con-
sequence management; and 
(B) opportunities for research and development on 
enhanced technologies into areas of potential improvement 
as determined during the course of the study. 
Deadline. 
(3) REPORT.—Not later than 2 years after the date on 
which a contract is entered into under paragraph (1), the 
Administrator shall submit a report on the study, including 
findings and recommendations to— 
(A) the Committee on Governmental Affairs of the 
Senate; and 
(B) the Committee on Government Reform of the House 
of Representatives. 
(4) INTERAGENCY COOPERATION.—Other Federal depart-
ments and agencies with responsibility for disaster relief and 
emergency assistance shall fully cooperate with the Adminis-
trator in carrying out this section. 
(5) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized 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 con-
ducted under subsection (b), the Administrator, in consultation 
with the Federal Emergency Management Agency, shall initiate 
pilot projects or report to Congress on other activities that further 
the go£d of maximizing 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. 
44 use 3501 
SEC. 215. DISPARITIES IN ACCESS TO THE INTERNET. 
Deadlines. 
(a) STUDY AND REPORT.— 
(1) STUDY.—Not later than 90 days after the date of enact-
ment 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 enact-
ment of this Act, the Administrator of General Services shedl 
submit to the Committee on Grovemmental Affeirs of the Senate 
and the Committee on Grovernment Reform of the House of 
Representatives a final report of the study under this section, 
which shall set forth the findings, conclusions, and rec-
ommendations of the Nationed Research Council. 
(b) CONTENTS.—The report under subsection (a) shall include 
a study of— 
(1) how disparities in Internet access influence the effective-
ness of online Government services, including a review of— 
(A) the nature of disparities in Internet access; 
(B) the affbrdability of Internet service; 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2945 
(C) the incidence of disparities among different groups 
within the population; and 
(D) chgmges in the nature of personal and public Inter-
net access that may alleviate or aggravate effective access 
to online Government services; 
(2) how the increase in online Government services is influ-
encing the dispguities in Internet access and how technology 
development or diffusion trends may offset such adverse influ-
ences; and 
• 
(3) related societal effects arising from the interplay of 
disparities in Internet access and the increase in online Govern-
ment services. 
(c) RECOMMENDATIONS.—The report shall include recommenda-
tions on actions to ensure that online Government initiatives shall 
not have the unintended result of 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 GEOGRAPfflC INFORMATION SYS- 
44 USC 3501 
TEMS. 
note. 
(a) PURPOSES.—The purposes of this section are to— 
(1) reduce redundant data collection and information; and 
(2) promote collaboration and use of standards for govern-
ment geographic information. 
(b) DEFINITION.—In this section, the term "geographic informa-
tion" means information systems that involve locational data, such 
as maps or other geospatial information resources. 
(c) IN GENERAL.— 
(1) COMMON PROTOCOLS.—The Administrator, in consulta-
tion with the Secretguy of the Interior, working with the 
Director and through £in interagency group, and working with 
private sector experts. State, local, £uid tribal governments, 
commercial and international standards groups, and other 
interested psirties, shall facilitate the development of common 
protocols for the development, acquisition, maintenance, dis-
tribution, and application of geographic information. If prac-
ticable, the Administrator shall incorporate intergovernmental 
and public private geographic information paulnerships into 
efforts under this subsection. 
(2) INTERAGENCY GROUP.—The interagency group referred 
to under peu-agraph (1) shall include representatives of the 
National Institute of Standards and Technology and other agen-
cies. 
(d) DIRECTOR.—The Director shall oversee— 
(1) the interagency initiative to develop common protocols; 
(2) the coordination with State, local, and tribal govern-
ments, public private psirtnerships, and other interested per-
sons on effective and efficient ways to align geographic informa-
tion and develop common protocols; and 
(3) the adoption of common standards relating to the proto-
cols. 
(e) COMMON PROTOCOLS.—The common protocols shall be 
designed to— 
116 STAT. 2946 
PUBLIC LAW 107-347—DEC. 17, 2002 
(1) maximize the degree to which unclassified geographic 
information from various sources can be made electronically 
compatible and accessible; and 
(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, aind 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 necessary to carry out this 
section, for each of the fiscal years 2003 through 2007. 
Federal 
Information 
Security 
Management 
Act of 2002. 
44 u s e 101 note. 
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— 
"(1) provide a comprehensive framework for ensuring the 
effectiveness of information secinity controls over information 
resources that support Federal operations and assets; 
"(2) recognize the highly networked nature of the current 
Federal 
computing 
environment 
and 
provide 
effective 
governmentwide management and oversight of the related 
information security risks, including coordination of information 
security efforts throughout the civilian, national security, and 
law enforcement commimities; 
"(3) provide for development and maintenance of minimum 
controls required to protect Federal information and informa-
tion systems; 
"(4) provide a mechanism for improved oversight of Federal 
agency information security programs; 
"(5) acknowledge that commercially developed information 
security products offer advanced, d)aiamic, robust, and effective 
information security solutions, 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 
"(6) recognize that the selection of specific technical hard-
ware and software information security solutions should be 
left to individual agencies from among commercially developed 
products. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2947 
*
*
§ 3542. Definitions 
"(a) IN GENERAL.—Except as provided under subsection (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, disruption, modification, or destruction in order 
to provide— 
"(A) integrity, which means guarding against improper 
information modification or destruction, and includes 
ensuring information nonrepudiation and authenticity; 
"(B) confidentiality, which means preserving author-
ized restrictions on access and disclosure, including means 
for protecting personal privacy and proprietary information; 
and 
"(C) availability, which means ensuring timely and 
reliable access to and use of information. 
"(2)(A) The term 'national security system' means any 
information system (including any telecommunications system) 
used or operated by an agency or by a contractor of £in agency, 
or other organization on behalf of an agency— 
"(i) the function, operation, or use of which— 
"(I) involves intelligence activities; 
"(II) involves cryptologic activities related to 
national security; 
"(III) involves command and control of military 
forces; 
"(IV) involves equipment that is an integral part 
of a weapon or weapons system; 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 specifically authorized under 
criteria established by an Executive order or an Act of 
Congress to be kept classified in the interest of national 
defense or foreign policy. 
"(B) Subparagraph (A)(i)(V) does not include a system that 
is to be used for routine administrative and business applica-
tions (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 agency informa-
tion security policies and practices, including— 
"(1) developing and overseeing the implementation of poli-
cies, principles, standards, and guidelines on information secu-
rity, 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 commensurate with the risk and magnitude of the 
116 STAT. 2948 
PUBLIC LAW 107-347—DEC. 17, 2002 
harm resulting from the unauthorized access, use, disclosure, 
disruption, modification, or destruction o
f
— 
"(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 guide-
lines under section 20 of the National Institute of Standards 
and Technology Act (15 U.S.C. 278g-3) with agencies and offices 
operating or exercising 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 requirements 
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 euinually, and approving or dis-
approving, agency information security programs required 
under section 3544(b); 
"(6) coordinating information security policies and proce-
dures with related information resources management policies 
and procedures; 
"(7) overseeing the operation of the Federal information 
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 requirements of this sub-
chapter, including— 
"(A) a simamary of the findings of evaluations 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 Technology Act (15 U.S.C. 278g-3) and promulgated 
under section 11331 of title 40; 
"(C) significant deficiencies in agency information secu-
rity practices; 
"(D) planned remedial action to address such defi-
ciencies; and 
"(E) a summary of, and the views of the Director on, 
the report prepared by the National Institute of Standards 
and Technology under section 20(d)(10) of the National 
Institute of Standards and Technology Act (15 U.S.C. 278g-
3). 
"(b) NATIONAL SECURITY SYSTEMS.—Except for the authorities 
described in paragraphs (4) and (8) of subsection (a), the authorities 
of the Director under this section shgdl not apply to national security 
systems. 
"(c) DEPARTMENT OF DEFENSE AND CENTRAL INTELLIGENCE 
AGENCY SYSTEMS.—(1) The authorities of the Director described 
in paragraphs (1) and (2) of subsection (a) shall be delegated to 
the Secretary of Defense in the case of systems described in para-
graph (2) and to the Director of Central Intelligence in the case 
of systems described in paragraph (3). 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2949 
"(2) The systems described in this p£iragraph are systems that 
are operated by the Depari;ment of Defense, a contractor of the 
Department of Defense, or another entity on behalf of the Depart-
ment 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 
Department of Defense. 
"(3) The systems described in this paragraph are systems that 
are operated by the Central Intelligence Agency, a contractor of 
the Central Intelligence Agency, or Einother entity on behalf of 
the Central Intelligence Agency that processes any information 
the unauthorized access, use, (fisclosure, disruption, modification, 
or destruction of 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 
protections 
commensurate with the risk and magnitude of the harm 
resulting from unauthorized access, use, disclosure, disrup-
tion, modification, or destruction o
f
— 
"(i) information collected or maintained by or on 
behalf of the agency; and 
"(ii) information systems used or operated by an 
agency or by a contractor of an agency or other 
organization on behalf of £in agency; 
"(B) complying with the requirements of this sub-
chapter 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 nationsQ security systems 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 oper-
ational planning processes; 
"(2) ensure that senior agency officials provide information 
security for the information and information systems that sup-
port the operations and assets under their control, including 
through— 
"(A) assessing the risk and magnitude of the harm 
that could result from the unauthorized access, use, disclo-
sure, disruption, modification, 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 classifica-
tions and related requirements; 
"(C) implementing policies and procedures to cost-effec-
tively reduce risks to an acceptable level; and 
"(D) periodically testing and evaluating information 
security controls and techniques to ensure that they are 
effectively implemented; 
116 STAT. 2950 
PUBLIC LAW 107-347—DEC. 17, 2002 
"(3) delegate to the agency Chief Information Officer estab-
lished under section 3506 (or comparable 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 information security 
officer who shall— 
"(i) carry out the Chief Information 
Officer's 
responsibilities under this section; 
"(ii) possess professional qualifications, including 
training and experience, required to administer the 
functions described under this section; 
"(iii) have information security duties as that offi-
cial's primary duty; and 
"(iv) head an office with the mission and resources 
to assist in ensuring agency compliance with this sec-
tion; 
"(B) developing and maintaining 
an 
agencywide 
information security program as required by subsection 
(b); 
"(C) developing and mainteiining information security 
policies, procedures, and control techniques to address all 
applicable requirements, including those issued under sec-
tion 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 concerning their 
responsibilities under paragraph (2); 
"(4) ensure that the agency has trained personnel 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 officials, reports annually 
to the agency head on the effectiveness of the agency informa-
tion security program, including progress of remedial actions. 
"(b) AGENCY PROGRAM.—Each agency shall develop, document, 
and implement an agencywide information security program, 
approved by the Director iinder section 3543(a)(5), to provide 
information security for the information and information systems 
that support the operations 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 magnitude of 
the harm that could result fi*om the unauthorized access, use, 
disclosure, disruption, modification, or destruction of informa-
tion and information systems that support the operations £ind 
assets of the agency; 
"(2) policies and procedures that— 
"(A) are based on the risk assessments required by 
paragraph (1); 
"(B) cost-effectively reduce information security risks 
to an acceptable level; 
"(C) ensure that information security is addressed 
throughout the life cycle of each agency information system; 
and 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2951 
"(D) ensure compliance with— 
"(i) the requirements of this subchapter; 
"(ii) poHcies and procedures as may be prescribed 
by the Director, and information security standsirds 
promulgated under section 11331 of title 40; 
"(iii) minimally acceptable system configuration 
requirements, as determined by the agency; and 
"(iv) any other applicable requirements, including 
standeirds and guidelines for national security systems 
issued in accordance with law and as directed by the 
President; 
"(3) subordinate plans for providing adequate information 
security for networks, facilities, and systems or groups of 
information systems, as appropriate; 
"(4) security awareness training to inform personnel, 
including contractors and other users of information systems 
that support the operations and assets of the agency, of— 
"(A) information security risks associated with their 
activities; and 
"(B) their responsibilities in compl)dng with agency 
policies and procedures designed to reduce these risks; 
"(5) periodic testing and evaluation of the effectiveness 
of information security policies, procedures, and practices, to 
be performed with a frequency depending on risk, but no less 
than annually, of which such testing— 
"(A) shall include testing of mgmagement, operational, 
and technical controls of every information system identi-
fied in the inventory required under section 3505(c); and 
"(B) may include testing relied on in a evaluation under 
section 3545; 
"(6) a process for planning, implementing, evaluating, 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 responding 
to security incidents, consistent with standsirds 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 informa-
tion security incident center referred to in section 3546; 
and 
"(C) notifying and consulting with, as appropriate— 
"(i) law enforcement agencies and relevant Offices 
of Inspector General; 
"(ii) an office designated by the President for any 
incident involving a national security system; and 
"(iii) any other agency or office, in accordance 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 Committees on 
Government Reform and Science of the House of Representa-
tives, the Committees on Governmental Affairs and Commerce, 
Science, and Transportation of the Senate, the appropriate 
116 STAT. 2952 
PUBLIC LAW 107-347—DEC. 17, 2002 
authorization and appropriations committees of Congress, 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 
compliance with each requirement of subsection (b); 
"(2) address the adequacy and effectiveness of information 
security policies, procedures, and practices in plans and reports 
relating to— 
"(A) annual agency budgets; 
"(B) information resources management under sub-
chapter 1 of this chapter; 
"(C) information technology management under sub-
title III of title 40; 
"(D) program performance luider 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 Improvement Act (31 U.S.C. 3512 
note); and 
"(G) internal accounting and administrative controls 
under section 3512 of title 31, (known as the 'Federal 
Managers Financial Integrity Act'); and 
"(3) report any significant deficiency in a policy, procedure, 
or practice identified under paragraph (1) or (2)— 
"(A) as a material wealmess in reporting under section 
3512oftitle31;and 
"(B) if relating to financial management systems, as 
an instance of a lack of substantial compliance under the 
Federal Financial Management Improvement Act (31 
U.S.C. 3512 note). 
"(d) PERFORMANCE PLAN.—(1) In addition to the requirements 
of subsection (c), each agency, in consultation with the Director, 
shall include as part of the performance 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 sub-
section (b). 
"(2) The description under paragraph (1) shgdl be based on 
the risk assessments required under subsection (b)(2)(l). 
"(e) PUBLIC NOTICE AND COMMENT.—Each agency shall provide 
the public with timely notice and opportunities for comment on 
proposed information seciuity policies and procedures to the extent 
that such policies £uid procedures £iffect communication with the 
public. 
^§ 3545. Annual independent evaluation 
"(a) IN GENERAL.—(1) Each year each agency shall have per-
formed an independent evaluation of the information security pro-
gram and practices of that agency to determine the effectiveness 
of such program and practices. 
"(2) Each evaluation under this section shall include— 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2953 
"(A) testing of the effectiveness of information security 
policies, procedures, and practices of a representative subset 
of the agency's information systems; 
"(B) £in 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, regarding 
information security relating to national security systems. 
"(b) INDEPENDENT AUDITOR.—Subject to subsection (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 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 evaluation. 
"(c) NATIONAL SECURITY SYSTEMS.—For each agency operating 
or exercising control of a national security 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 Euiy information security vulner-
ability in such system commensurate with the risk and in 
accordEuice with all applicable laws. 
"(d) EXISTING EVALUATIONS.—The evaluation required 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 Deadline. 
date established by the Director, the head of 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 assess-
ment of that portion of the eveiluation directly relating to a national 
security system. 
"(f) PROTECTION OF iNFORMATiON.^Agencies and evaluators 
shall take appropriate steps to ensure the protection of information 
which, if disclosed, may adversely affect information security. Such 
protections shall be commensurate with the risk and comply with 
all applicable laws and regulations. 
"(g) 0MB 
REPORTS TO CONGRESS.—(1) The Director shall 
summarize the results of the evaluations conducted under this 
section in the report to Congress required under section 3543(a)(8). 
"(2) The Director's report to Congress under this subsection 
shall 
summarize 
information 
regarding 
information 
security 
relating to national security systems in such a manner as to ensure 
appropriate protection for information associated with any informa-
tion security vulnerability in such system commensurate with the 
risk and in accordance with all applicable laws. 
"(3) Evaluations and any other descriptions of information sys-
tems under the authority and control of the Director of Central 
116 STAT. 2954 
PUBLIC LAW 107-347—DEC. 17, 2002 
Intelligence or of National Foreign Intelligence Programs systems 
under the authority and control of the Secretary of Defense shall 
be made available to Congress only through the appropriate over-
sight committees of Congress, in accordance with applicable laws. 
Reports. 
"(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 incident center to— 
"(1) provide timely technical assistance to operators of 
agency information 
systems regarding security incidents, 
including guidance on detecting and handling information secu-
rity incidents; 
"(2) compile and analyze information about incidents that 
threaten information security; 
"(3) inform operators of agency information systems about 
current 
and potential information 
security threats, 
and 
vulnerabilities; and 
"(4) consult with the National Institute of Standards and 
Technology, agencies or offices operating or exercising control 
of national security systems (including the National Security 
Agency), and such other agencies or offices in accordance with 
law and as directed by the President regarding information 
security incidents and related matters. 
"(b) NATIONAL SECURITY SYSTEMS.—Each agency operating or 
exercising control of a nationsd security system shall share informa-
tion 
about 
information 
security 
incidents, 
threats, 
and 
vulnerabilities with the Federal information security incident center 
to the extent consistent with standards and guidelines for national 
security systems, 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 commensu-
rate with the risk and magnitude of the harm resulting from 
the unauthorized access, use, disclosure, disruption, modifica-
tion, or destruction of the information contained in such system; 
"(2) implements information security policies and practices 
as required by standards and guidelines for national security 
systems, issued in accordance with law and as directed by 
the President; and 
"(3) complies with the requirements of this subchapter. 
*
*
§ 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. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2955 
"§ 3549. Effect on existing law 
"Nothing in this subchapter, section 11331 of title 40, or section 
20 of the National Standards and Technology Act (15 U.S.C. 278g-
3) may be construed as affecting the authority of the President, 
the Office of Management 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 disclosiu'e 
of information, including with regard to the protection of personal 
privacy under section 552a of title 5, the disclosure of information 
under section 552 of title 5, the management £uid disposition of 
records under chapters 29, 31, or 33 of title 44, the management 
of information resources under subchapter I of chapter 35 of this 
title, or the disclosure of information to the Congress or the Comp-
troller 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 sections at the 
beginning of such chapter 35 is amended 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 AGEN-
CIES.— 
(1) NATIONAL SECURITY RESPONSIBILITIES.—(A) Nothing in 44USC350i 
this Act (including any amendment made by this Act) shall "ote. 
supersede any authority of the Secretary of Defense, the 
Director of Central Intelligence, or other agency head, as 
authorized by law and as directed by the President, with regard 
to the operation, control, or mguiagement of national security 
systems, as defined by section 3542(b)(2) of title 44, United 
States Code. 
(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) 
OBJEC-
TIVES OF THE PROGRAM.—"; 
(ii) in subsection (b), by striking paragraph (2); and 
(iii) in subsection (c), in the matter preceding para-
graph (1), by inserting ", including through compliance 
with subchapter III of chapter 35 of title 44" after "infra-
structure". 
(2) ATOMIC ENERGY ACT OF 1954.—Nothing in this Act shall 44 USC 3501 
supersede any requirement made by or under the Atomic "ote. 
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Restricted data 
or formerly restricted data shall be handled, protected, classi-
fied, downgraded, and declassified in conformity with the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). 
116 STAT. 2956 
PUBLIC LAW 107-347—DEC. 17, 2002 
SEC. 302. MANAGEMENT OF INFORMATION TECHNOLOGY. 
(a) IN GENERAL.—Section 11331 of title 40, United States Code, 
is amended to read as follows: 
*
*
§ 11331. Responsibilities for Federal information systems 
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.—Standards and guide-
lines for national security systems (as defined under this sec-
tion) shall be developed, prescribed, enforced, and overseen 
as otherwise authorized by law and as directed by the Presi-
dent. 
"(b) MANDATORY REQUIREMENTS.— 
"(1) AUTHORITY TO MAKE MANDATORY.—Except as provided 
under paragraph (2), the Secretary shall make standards pre-
scribed under subsection (a)(1) compulsory and binding to the 
extent determined necessary by the Secretary to improve the 
efficiency of operation or security of Federal information sys-
tems. 
"(2) REQUIRED MANDATORY STANDARDS.—(A) Standards pre-
scribed under subsection (a)(1) shall include information secu-
rity standards that— 
"(i) provide minimiun information security require-
ments as determined luider 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 information systems. 
"(B) Information security standards described in subpara-
graph (A) shall be compulsory £ind binding. 
"(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 
Federal Register, 
modify such standards and guidelines may not be delegated. Notice 
publication. 
of such disapproval or modification shall be published promptly 
in the Federal Register. Upon receiving notice of such disapproval 
or modification, the Secretary of Commerce shall immediately 
rescind or modify such st£indards or guidelines as directed by the 
President. 
"(d) EXERCISE OF AUTHORITY.—TO ensure fiscal and policy 
consistency, the Secretary shall exercise the authority conferred 
by this section subject to direction by the President and in coordina-
tion with the Director of the Office of Management and Budget. 
"(e) APPLICATION OF MORE STRINGENT STANDARDS.—The head 
of an executive agency may employ standards for the cost-effective 
information security for information systems within or under the 
supervision of that agency that are more stringent th£in the stand-
ards the Secretary prescribes under this section if the more strin-
gent standards— 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2957 
"(1) contain at least the applicable standards made compul-
sory 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 STANDARDS.—The decision Deadline. 
by the Secretary regarding the promulgation of any standard under 
this section shall occur not later than 6 months after the submission 
of the proposed 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: 
"(1) FEDERAL INFORMATION SYSTEM.—The term 'Federal 
information system' meeuis an information system used or oper-
ated by an executive agency, by a contractor of an executive 
agency, or by another organization on behalf of an executive 
agency. 
"(2) INFORMATION SECURITY.—The term 'information secu-
rity' has the meaning given that term in section 3542(b)(1) 
of title 44. 
"(3) NATIONAL SECURITY SYSTEM.—The term 'nationeJ secu-
rity 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 TECHNOLOGY. 
Section 20 of the National Institute of StEindards and Tech-
nology Act (15 U.S.C. 278g-3), is amended by striking the text 
and inserting the following: 
"(a) IN GENERAL.—The Institute shall— 
"(1) have the mission of developing standards, guidelines, 
Eind associated methods and techniques for information sys-
tems; 
"(2) develop stsindards and guidelines, including 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 defined in section 3542(b)(2) of title 44, United States Code); 
eind 
"(3) develop standards and guidelines, including minimum 
reqmrements, for providing adequate information secvuity for 
all agency operations and assets, but such standards and guide-
lines shall not apply to national security systems. 
"(b) 
MINIMUM REQUIREMENTS FOR STANDARDS AND GUIDE-
LINES.—The standards and guidelines required by subsection (a) 
shall include, at a minimvun— 
"(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 agency based on the objectives of 
providing appropriate levels of information security according 
to a rginge of risk levels; 
"(B) guidelines recommending the types of information and 
information systems to be included in each such category; and 
116 STAT. 2958 
PUBLIC LAW 107-347—DEC. 17, 2002 
"(C) minimum information 
security requirements for 
information and information systems in each such category; 
"(2) a definition of and guideUnes concerning detection 
and handhng of information security incidents; and 
"(3) guidelines developed in conjunction with the Depart-
ment of Defense, including the National Security Agency, for 
identifying an information system as a national security system 
consistent with applicable reqmrements for national security 
systems, issued in accordsuice with law and as directed by 
the President. 
"(c) DEVELOPMENT OF STANDARDS AND GUIDELINES.—In devel-
oping standards emd 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 Office of Management 
and Budget, the Departments of Defense and Energy, the 
National Security Agency, the General Accounting Office, and 
the Secretary of Homeland Seciunty) to assure— 
"(A) use of appropriate information security policies, 
procedures, and techniques, in order to improve information 
seciuity and avoid unnecessary and costly duplication of 
effort; and 
"(B) that such standards and guidelines are com-
plementary with standards and guidelines employed for 
the protection of national security systems and information 
contained in such systems; 
"(2) provide the public with an opportunity to comment 
on proposed standards and guidelines; 
Deadlines. 
"(3) submit to the Secretary of Commerce for promulgation 
under section 11331 of title 40, United States Code—-
"(A) standards, as required under subsection (b)(1)(A), 
no later than 12 months after the date of the enactment 
of this section; £uid 
"(B) minimum information security requirements for 
each category, as required under subsection (b)(1)(C), no 
later than 36 months after the date of the enactment 
of this section; 
Deadline. 
"(4) issue guidelines as required under subsection (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 
stEuideirds and guidelines do not require the use or procurement 
of specific products, including any specific hardware or software; 
"(6) to the maximum extent practicable, ensure that such 
standards and guidelines provide for sufficient flexibility to 
permit £iltemative solutions to provide equivalent levels of 
protection for identified information security risks; and 
"(7) to the maximum extent practicable, use flexible, 
performance-based stEuideirds and guidelines that permit the 
use of off-the-shelf commercially developed information security 
products. 
"(d) INFORMATION SECURITY FUNCTIONS.—The Institute shall— 
"(1) submit steindards developed pursuant to subsection 
(a), along with recommendations as to the extent to which 
these should be made compulsory and binding, to the Secretary 
of Commerce for promulgation under section 11331 of title 
40, United States Code; 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2959 
"(2) provide technical assistance to agencies, upon request, 
regarding— 
"(A) compliance with the standards and guidelines 
developed under subsection (a); 
"(B) detecting £ind handling information 
security 
incidents; and 
"(C) information security policies, procedures, and prac-
tices; 
"(3) conduct research, as needed, to determine the nature 
and extent of information security vulnerabilities £ind tech-
niques for providing cost-effective information security; 
"(4) develop and periodically revise performance indicators 
Eind measures for agency information security policies and prac-
tices; 
"(5) evaluate private sector information security policies 
and practices and commercially available information tech-
nologies to assess potential 
application by agencies 
to 
strengthen information security; 
"(6) assist the private sector, upon request, in using and 
appljdng the results of activities under this section; 
"(7) evaluate security policies and practices developed for 
national security systems to assess potential application by 
agencies to strengthen information security; 
"(8) periodically assess the effectiveness of standards and 
guidelines developed luider this section and undertake revisions 
as appropriate; 
"(9) solicit and consider the recommendations of the 
Information Security and Privacy Advisory BoEird, established 
by section 21, regarding standards and guidelines developed 
under subsection (a) and submit such recommendations to the 
Secretary of Commerce with such standards submitted to the 
Secretary; £uid 
"(10) prepare an annual public report on activities under-
taken 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 SEime 
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. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary of Commerce $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 ADVISORY BOARD. 
Section 21 of the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278g-4), is amended— 
116 STAT. 2960 
PUBLIC LAW 107-347—DEC. 17, 2002 
(1) in subsection (a), by striking "Computer System Security 
and Privacy Advisory Board" and inserting "Information Secu-
rity and Privacy Advisory Bo£ird"; 
(2) in subsection (a)(1), by striking "computer or tele-
communications" and inserting "information technology"; 
(3) in subsection (a)(2)— 
(A) by striking "computer or telecommunications tech-
nology" and inserting "information technology"; and 
(B) by striking "computer or telecommunications equip-
ment" and inserting "information technology"; 
(4) in subsection (a)(3)— 
(A) by striking "computer systems" and inserting 
"information system"; and 
(B) by striking "computer systems security" and 
inserting "information security"; 
(5) in subsection (b)(1) by striking "computer systems secu-
rity" and inserting "information security"; 
(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 Management and Budget 
on information security and privacy issues pertaining to Federal 
Government information systems, including through review of 
proposed standards and guidelines developed under section 20; 
and"; 
(7) in subsection (b)(3) by inserting "annually" after 
"report"; 
(8) by inserting after subsection (e) the following new sub-
section: 
"(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; £ind 
(10) by striking subsection (h), as redesignated by para-
graph (9), and inserting the following: 
"(h) As used in this section, the terms 'information system' 
and 'information technology' have the mesuiings 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, Eire repealed. 
(b) FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT 
FOR FISCAL YEAR 2001.—The Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Pubhc 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 
(ii) by striking "; and" and inserting a period; smd 
(C) by striking paragraph (3). 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2961 
(2) Section 3505 of such title is amended by adding at the 
end— 
"(c) INVENTORY OF MAJOR INFORMATION SYSTEMS.—(1) The head 
of each agency shall develop and maintain an inventory of major 
information systems (including major national seciuity systems) 
operated by or under the control of such agency. 
"(2) The identification of information systems in an inventory 
under this subsection shall include an identification of the interfaces 
between each such system and all other systems or networks, 
including those not operated by or under the control of the agency. 
"(3) Such inventory shall be— 
"(A) updated at least annually; 
"(B) made available to the Comptroller General; and 
"(C) used to support information resources management, 
including— 
"(i) preparation and maintenance of the inventory of 
information resources under section 3506(b)(4); 
"(ii) 
information 
technology 
planning, 
budgeting, 
acquisition, and management under section 3506(h), sub-
title III of title 40, and related laws and guideuice; 
"(iii) monitoring, testing, and evaluation of information 
security controls under subchapter II; 
"(iv) preparation of the index of major information 
systems required under section 552(g) of title 5, United 
States Code; and 
"(v) preparation of information system inventories 
required for records management under chapters 21, 29, 
31, and 33. 
"(4) The Director shall issue guidance for and oversee the 
implementation of the requirements of this subsection.". 
(3) Section 3506(g) of such title is amended— 
(A) by adding "and" at the end of paragraph (1); 
(B) in paragraph (2)— 
(i) by striking "section 11332 of title 40" £uid inserting 
"subchapter II of this chapter"; and 
(ii) by striking "; and" and inserting a period; and 
(C) by striking paragraph (3). 
TITLE IV—AUTHORIZATION OF APPRO-
PRIATIONS AND EFFECTIVE DATES 
SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 
Except for those purposes for which an authorization of appro-
priations is specificEdly provided in title I or II, including the amend-
ments made by such titles, there are authorized to be appropriated 
such sums as are necessary to CEury out titles I £uid II for each 
of fiscal years 2003 through 2007. 
SEC. 402. EFFECTIVE DATES. 
(a) TITLES I AND II.— 
44 use 360i 
(1) IN GENERAL.—Except as provided under paragraph (2), note. 
titles I and II and the amendments made by such titles shgdl 
take effect 120 days aft;er the date of enactment of this Act. 
(2) IMMEDIATE ENACTMENT.—Sections 207, 214, and 
215 
shall take effect on the date of enactment of this Act. 
116 STAT. 2962 
PUBLIC LAW 107-347—DEC. 17, 2002 
44 use 3541 
(b) TITLES III AND IV.—Title III and this title shall take effect 
note. 
on the date of enactment of this Act. 
Confidential 
Information 
Protection and 
Statistical 
Efficiency Act of 
2002. 
44 use 3501 
note. 
44 use 3501 
note. 
TITLE V—CONFIDENTIAL INFORMATION 
PROTECTION AND STATISTICAL EFFI-
CIENCY 
SEC. 501. SHORT TITLE. 
This title may be cited as the "Confidential Information Protec-
tion and Statistical Efficiency Act of 2002". 
SEC. 502. DEFINITIONS. 
As used in this title: 
(1) The term "agency" meeins any entity that falls within 
the definition of the term "executive agency" as defined in 
section 102 of title 31, United States Code, or "agency", as 
defined in section 3502 of title 44, United States Code. 
(2) The term "agent" means an individual— 
(A)(i) who is an employee of a private organization 
or a researcher affiliated with an institution of higher 
learning (including a person granted specisil sworn status 
by the Bureau of the Census under section 23(c) of title 
13, United States Code), £tnd with whom a contract or 
other agreement is executed, on a temporary basis, by 
an executive agency to perform exclusively statistical activi-
ties under the control and supervision of an officer or 
employee of that agency; 
(ii) who is working under the authority of a government 
entity with which a contract or other agreement is executed 
by an executive agency to perform exclusively statistical 
activities under the control of an officer or employee of 
that agency; 
(iii) who is a self-employed researcher, a consultant, 
a contractor, or an employee of a contractor, and with 
whom a contract or other agreement is executed by an 
executive agency to perform a statistical activity under 
the control of an officer or employee of that agency; or 
(iv) who is a contractor or an employee of a contractor, 
and who is engaged by the agency to design or maintain 
the systems for handling or storage of data received under 
this title; and 
(B) who agrees in writing to comply with all provisions 
of law that affect information acquired by that agency. 
(3) The term "business data" means operating and financial 
data and information about businesses, tax-exempt organiza-
tions, and government entities. 
(4) The term "identifiable form" means any representation 
of information that permits the identity of the respondent to 
whom the information applies to be reasonably inferred by 
either direct or indirect mesins. 
(5) The term "nonstatistical purpose"— 
(A) means the use of data in identifiable form for 
any purpose that is not a statistical purpose, including 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2963 
any administrative, regulatory, law enforcement, adjudica-
tory, or other purpose that affects the rights, privileges, 
or benefits of a particul£ir identifiable respondent; and 
(B) includes the disclosure under section 552 of title 
5, United States Code (popularly known as the Freedom 
of Information Act) of data that are acquired for exclusively 
statistical purposes under a pledge of confidentiality. 
(6) The term "respondent" means a person who, or organiza-
tion that, is requested or required to supply information to 
an agency, is the subject of information requested or required 
to be supplied to an agency, or provides that information to 
an agency. 
(7) llie term "statistical activities"— 
(A) means the collection, compilation, processing, or 
analysis of data for the purpose of describing or m ^ n g 
estimates concerning the whole, or relevant groups or 
components within, the economy, society, or the natural 
environment; and 
(B) includes the development of methods or resources 
that 
support those activities, such as 
measurement 
methods, models, statistical classifications, or sampling 
fi-ames. 
(8) The term "statistical agency or unit" means an agency 
or organizational unit of the executive branch whose activities 
are predominantly the collection, compilation, processing, or 
analysis of information for statistical purposes. 
(9) The term "statistical purpose"— 
(A) means the description, estimation, or anedysis of 
the characteristics of groups, without identifying the 
individuals or organizations that comprise such groups; 
and 
(B) includes the development, implementation, or 
maintenance of methods, technical or administrative proce-
dures, or information resources that support the purposes 
described in subpEU'agraph (A). 
SEC. 503. COORDINATION AND OVERSIGHT OF POLICIES. 
44 USC 3501 
(a) IN GENERAL.—The Director of the Office of Management 
and Budget shall coordinate and oversee the confidentiality and 
disclosure policies established by this title. The Director may 
promulgate rules or provide other guidsuice to ensure consistent 
interpretation of this title by the affected agencies. 
(b) AGENCY RULES.—Subject to subsection (c), agencies may 
promulgate rules to implement this title. Rules governing disclo-
sures of information that are authorized by this title shall be 
promulgated by the agency that originally collected the information. 
(c) REVIEW AND APPROVAL OF RULES.—The Director shall review 
any rules proposed by an agency pursuant to this title for consist-
ency with the provisions of this title and chapter 35 of title 44, 
United States Code, and such rules shall be subject to the approval 
of the Director. 
(d) REPORTS.— 
(1) The head of each agency shall provide to the Director 
of the Office of Management and Budget such reports Euid 
other information as the Director requests. 
(2) Each Designated Statistical Agency referred to in sec-
tion 522 shedl report annusdly to the Director of the Office 
116 STAT. 2964 
PUBLIC LAW 107-347—DEC. 17, 2002 
of Management and Budget, the Committee on Government 
Reform of the House of Representatives, and the Committee 
on Governmental Affairs of the Senate on the actions it has 
taken to implement sections 523 and 524. The report shall 
include copies of each written agreement entered into pursuant 
to section 524(a) for the applicable ye£ir. 
(3) The Director of the Office of Management and Budget 
shall include a summEiry of reports submitted to the Director 
under paragraph (2) and actions taken by the Director to 
advance the purposes of this title in the annual report to 
the Congress on statistical programs prepared under section 
3504(e)(2) of title 44, United States Code. 
44 use 3501 
SEC. 504. EFFECT ON OTHER LAWS. 
^°^' 
(a) TITLE 44, UNITED STATES CODE.—This title, including 
amendments made by this title, does not diminish the authority 
under section 3510 of title 44, United States Code, of the Director 
of the Office of Meinagement and Budget to direct, and of an 
agency to make, disclosures that are not inconsistent with any 
applicable law. 
(b) TITLE 13 AND TITLE 44, UNITED STATES CODE.—This title, 
including amendments made by this title, does not diminish the 
authority of the Bureau of the Census to provide information in 
accordance with sections 8, 16, 301, £uid 401 of title 13, United 
States Code, and section 2108 of title 44, United States Code. 
(c) TITLE 13, UNITED STATES CODE.—This title, including 
amendments made by this title, shall not be construed as author-
izing the disclosure for nonstatistical purposes of demographic data 
or information collected by the Census Bureau pursuemt to section 
9 of title 13, United States Code. 
(d) VARIOUS ENERGY STATUTES.—Data or information acquired 
by the Energy Information Administration under a pledge of con-
fidentiality and designated by the Energy Information Administra-
tion to be used for exclusively statistical purposes sheill not be 
disclosed in identifiable form for nonstatisticed purposes under— 
(1) section 12, 20, or 59 of the Federal Energy Administra-
tion Act of 1974 (15 U.S.C. 771, 779, 790h); 
(2) section 11 of the Energy Supply £ind Environmental 
Coordination Act of 1974 (15 U.S.C. 796); or 
(3) section 205 or 407 of the Department of the Energy 
Organization Act of 1977 (42 U.S.C. 7135, 7177). 
(e) SECTION 201 OF CONGRESSIONAL BUDGET ACT OF 1974.— 
This title, including amendments made by this title, shall not 
be construed to limit any authorities of the Congressional Budget 
Office to work (consistent with laws governing the confidentiality 
of information the disclosure of which would be a violation of 
law) with databases of Designated Statistical Agencies (as defined 
in section 522), either separately or, for data that may be shared 
pursuant to section 524 of this title or other authority, jointly 
in order to improve the general utility of these databases for the 
statistical purpose of smalyzing pension and health care financing 
issues. 
(f) PREEMPTION OF STATE LAW.—Nothing in this title shall 
preempt applicable State law regarding the confidentiality of data 
collected by the States. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2965 
(g) 
STATUTES 
REGARDING 
FALSE 
STATEMENTS.—Notwith-
standing section 512, information collected by an agency for exclu-
sively statistical purposes under a pledge of confidentiality may 
be provided by the collecting agency to a law enforcement agency 
for the prosecution of submissions to the collecting agency of false 
statistical information under statutes that authorize criminal pen-
alties (such as section 221 of title 13, United States Code) or 
civil peneJties for the provision of false statistical information, 
unless such disclosure or use would otherwise be prohibited under 
Federal law. 
(h) CONSTRUCTION.—Nothing in this title shall be construed 
as restricting or diminishing any confidentiality protections or pen-
alties for unauthorized disclosure that otherwise apply to data 
or information collected for statistical purposes or nonstatistical 
purposes, including, but not limited to, section 6103 of the Internal 
Revenue Code of 1986 (26 U.S.C. 6103). 
(i) AUTHORITY OF CONGRESS.—Nothing in this title shall be 
construed to affect the authority of the Congress, including its 
committees, members, or agents, to obtain data or information 
for a statistical purpose, including for oversight of an agency's 
statistical activities. 
Subtitle A—Confidential Information 
Protection 
SEC. 511. FINDINGS AND PURPOSES. 
44 USC 3501 
(a) FINDINGS.—The Congress finds the following: 
(1) Individuals, businesses, £ind other organizations have 
var)dng degrees of legal protection when providing information 
to the agencies for strictly statistical purposes. 
(2) Pledges of confidentiality by agencies provide assur-
ances to the public that information about individuals or 
organizations or provided by individuals or organizations for 
exclusively statistical p\u*poses will be held in confidence and 
will not be used against such individuals or organizations in 
any agency action. 
(3) Protecting the confidentiality interests of individuals 
or organizations who provide information under a pledge of 
confidentiality for Federal statistical programs serves both the 
interests of the public and the needs of society. 
(4) Declining trust of the public in the protection of informa-
tion provided under a pledge of confidentiality to the agencies 
adversely affects both the accuracy and completeness of statis-
tical analyses. 
(5) Ensuring that information provided under a pledge 
of confidentiality for statistical purposes receives protection 
is essential in continuing public cooperation in statistical pro-
grams. 
(b) PURPOSES.—The purposes of this subtitle are the following: 
(1) To ensure that information supplied by individuals or 
organizations to an agency for statistical pm-poses under a 
pledge of confidentiality is used exclusively for statistical pur-
poses. 
(2) To ensure that individuals or organizations who supply 
information under a pledge of confidentiality to agencies for 
statistical purposes will neither have that information disclosed 
116 STAT. 2966 
PUBLIC LAW 107-347—DEC. 17, 2002 
in identifiable form to anyone not authorized by this title nor 
have that information used for any purpose other thein a statis-
tical purpose. 
(3) To saifeguard the confidentiality of individually identifi-
able information acquired under a pledge of confidentiality 
for statistical purposes by controlling access to, and uses made 
of, such information. 
44 use 3501 
SEC. 512. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND 
note. 
INFORMATION. 
(a) USE OF STATISTICAL DATA OR INFORMATION.—Data 
or 
information acquired by an agency under a pledge of confidentisdity 
and for exclusively statistical purposes shall be used by officers, 
employees, or agents of the agency exclusively for statistical pur-
poses. 
(b) DISCLOSURE OF STATISTICAL DATA OR INFORMATION.— 
(1) Data or information acquired by an agency under a 
pledge of confidentiedity for exclusively statistical purposes shall 
not be disclosed by an agency in identifiable form, for any 
use other than an exclusively statistical purpose, except with 
the informed consent of the respondent. 
(2) A disclosure pursuant to paragraph (1) is authorized 
only when the head of the agency approves such disclosure 
and the disclosiu"e is not prohibited by any other law. 
(3) This section does not restrict or diminish any confiden-
tiality protections in law that otherwise apply to data or 
information acquired by an agency under a pledge of confiden-
tiality for exclusively statistical purposes. 
(c) RULE FOR USE OF DATA OR INFORMATION FOR NONSTATIS-
TICAL PURPOSES.—^A statistical agency or unit shall clearly distin-
guish any data or information it collects for nonstatistical purposes 
(as authorized by law) and provide notice to the public, before 
the data or information is collected, that the data or information 
could be used for nonstatistical purposes. 
(d) DESIGNATION OF AGENTS.—^A statistical agency or unit may 
designate agents, by contract or by entering into a special agreement 
containing the provisions required under section 502(2) for treat-
ment as an agent under that section, who may perform exclusively 
statistical activities, subject to the limitations and penalties 
described in this title. 
44 use 3501 
SEC. 513. FINES AND PENALTIES. 
Whoever, being an officer, employee, or agent of an agency 
acquiring information for exclusively statistical purposes, having 
taken and subscribed the oath of office, or having sworn to observe 
the limitations imposed by section 512, comes into possession of 
such information by reason of his or her being an officer, employee, 
or agent and, knowing that the disclosure of the specific information 
is prohibited under the provisions of this title, willfully discloses 
the information in any manner to a person or agency not entitled 
to receive it, shall be guilty of a class E felony and imprisoned 
for not more th£in 5 yesirs, or fined not more than $250,000, or 
both. 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2967 
Subtitle B—Statistical Efficiency 
SEC. 521. FINDINGS AND PURPOSES. 
44 USC 3501 
(a) FINDINGS.—The Congress finds the following: 
(1) Federal statistics are an important source of information 
for public and private decision-makers such as policymaikers, 
consumers, businesses, investors, and workers. 
(2) Federal statistical agencies should continuously seek 
to improve their efficiency. Statutory constraints limit the 
ability of these agencies to share data £ind thus to achieve 
higher efficiency for Federal statistical programs. 
(3) The quality of Federal statistics depends on the willing-
ness of businesses to respond to statistical surveys. Reducing 
reporting burdens will increase response rates, and therefore 
lead to more accurate characterizations of the economy. 
(4) Enhanced sharing of business data among the Bureau 
of the Census, the Bureau of Economic Analysis, and the 
Bureau of Labor Statistics for exclusively statistical purposes 
will improve their ability to track more accurately the large 
and rapidly changing nature of United States business. In 
particular, the statistical agencies will be able to better ensure 
that businesses are consistently classified in appropriate indus-
tries, resolve data anomalies, produce statistical samples that 
are consistently adjusted for the entry and exit of new 
businesses in a timely manner, and correct faulty reporting 
errors quickly and efficiently. 
(5) The Congress enacted the International Investment and 
Trade in Services Act of 1990 that allowed the Bureau of 
the Census, the Bureau of Economic Analysis, and the Bureau 
of Labor Statistics to share data on foreign-owned companies. 
The Act not only expanded detailed industry coverage from 
135 industries to over 800 industries with no increase in the 
data collected from respondents but also demonstrated how 
data sharing can result in the creation of valuable data prod-
ucts. 
(6) With subtitle A of this title, the sharing of business 
data Eimong 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 
surveys. 
(b) PURPOSES.—The purposes of this subtitle are the following: 
(1) To authorize the sharing of business data £imong the 
Bureau of the Census, the Bureau of Economic Analysis, and 
the Bureau of Labor Statistics for exclusively statistical pur-
poses. 
(2) To reduce the paperwork burdens imposed on businesses 
that provide requested information to the Federal Government. 
(3) To improve the comparability £aid accuracy of Federal 
economic statistics by allowing the Bureau of the Census, the 
Bureau of Economic Analysis, and the Bureau of Labor Statis-
tics to update sample frames, develop consistent classifications 
of establishments and companies into industries, improve cov-
erage, 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 regional statistics. 
116 STAT. 2968 
PUBLIC LAW 107-347—DEC. 17, 2002 
to develop more accurate measures of the impact of technology 
on productivity growth, £ind to enhance the reliability of the 
Nation's most important economic indicators, such as the 
National Income and Product Accounts. 
44 use 3501 
SEC. 522. DESIGNATION OF STATISTICAL AGENCIES. 
For purposes of this subtitle, the term "Designated Statistical 
Agency" means each of the following: 
(1) The Bureau of the Census of the Department of Com-
merce. 
(2) The Bureau of Economic Analysis of the Department 
of Commerce. 
(3) The Bureau of Labor Statistics of the Department of 
Labor. 
44 use 3501 
SEC. 523. RESPONSIBILITIES OF DESIGNATED STATISTICAL AGENCIES. 
The head of each of the Designated Statistical Agencies shall— 
(1) identify opportunities to eliminate duplication and 
otherwise reduce reporting burden and cost imposed on the 
public in providing information for statistical purposes; 
(2) enter into joint statistical projects to improve the quality 
Eind reduce the cost of statistical programs; and 
(3) protect the confidentiality of individually identifiable 
information acquired for statistical purposes by adhering to 
safeguEird principles, including— 
(A) emphasizing to their officers, employees, and agents 
the importance of protecting the confidentiedity of informa-
tion in cases where the identity of individual respondents 
can reasonably be inferred by either direct or indirect 
means; 
(B) training their officers, employees, and agents in 
their legal obligations to protect the confidentiality of 
individually identifiable information and in the procedures 
that must be followed to provide access to such information; 
(C) implementing appropriate measures to assure the 
physical and electronic security of confidential data; 
(D) establishing a system of records that identifies 
individuals accessing confidential data and the project for 
which the data were required; and 
(E) being prepeired to document their compliance with 
safeguard principles to other agencies authorized by law 
to monitor such compliguice. 
44 use 3501 
SEC. 524. SHARING OF BUSINESS DATA AMONG DESIGNATED STATIS-
note. 
TICAL AGENCIES. 
(a) IN GENERAL.—^A Designated StatisticsJ Agency may provide 
business data in an identifiable form to einother Designated Statis-
tical Agency under the terms of a written agreement among the 
agencies sharing the business data that specifies— 
(1) the business data to be shared; 
(2) the statistical purposes for which the business data 
are to be used; 
(3) the officers, employees, and agents authorized to 
examine the business data to be shared; and 
(4) appropriate security procedures to safeguard the con-
fidentiality of the business data. 
(b) RESPONSIBILITIES OF AGENCIES UNDER OTHER LAWS.—The 
provision of business data by am agency to a Designated Statistical 
PUBLIC LAW 107-347—DEC. 17, 2002 
116 STAT. 2969 
Agency under this subtitle shall in no way alter the responsibility 
of the agency providing the data luider other statutes (including 
section 552 of title 5, United States Code (popularly known as 
the Freedom of Information Act), and section 552b of title 5, United 
States Code (popularly known as the Privacy Act of 1974)) with 
respect to the provision or withholding of such information by 
the agency providing the data. 
(c) RESPONSIBILITIES OF OFFICERS, EMPLOYEES, AND AGENTS.— 
Examination of business data in identifiable form shall be limited 
to the officers, employees, and agents authorized to examine the 
individual reports in accordance with written agreements pursuant 
to this section. Officers, employees, and agents of a Designated 
Statistical Agency who receive data pursuant to this subtitle shall 
be subject to all provisions of law, including penalties, that relate— 
(1) to the unlawful provision of the business data that 
would apply to the officers, employees, and agents of the agency 
that originally obtained the information; and 
(2) to the unlawful disclosure of the business data that 
would apply to officers, employees, and agents of the agency 
that originally obtained the information. 
(d) NOTICE.—^Whenever a written agreement concerns data that Public 
respondents were required by law to report and the respondents 
information. 
were not informed that the data could be shared among the Des-
ignated Statistical Agencies, for exclusively statistical purposes, 
the terms of such agreement shall be described in a public notice 
issued by the agency that intends to provide the data. Such notice 
shall EJIOW a minimum of 60 days for public comment. 
SEC. 525. LIMITATIONS ON USE OF BUSINESS DATA PROVIDED BY DES- 
44 USC 3501 
IGNATED STATISTICAL AGENCIES. 
note. 
(a) USE, GENERALLY.—Business data provided by a Designated 
Statistical Agency pursuant to this subtitle shall be used exclusively 
for statistical piuposes. 
(b) PUBLICATION.—Publication of business data acquired by a 
Designated Statistical Agency shall occur in a manner whereby 
the data furnished by £iny particular respondent are not in identifi-
able form. 
SEC. 526. CONFORMING AMENDMENTS. 
44 USC 3501 
(a) DEPARTMENT OF COMMERCE.—Section 1 of the Act of 
^°^' 
January 27, 1938 (15 U.S.C. 176a) is amended by striking "The" 
and inserting "Except as provided in the Confidential Information 
Protection and Statistical Efficiency Act of 2002, the". 
(b) TITLE 13.—Chapter 10 of title 13, United States Code, 
is amended— 
(1) by adding after section 401 the following: 
'^§402. Providing business data to Designated Statistical 
^ e n c i e s 
"The Bureau of the Census may provide business data to the 
Bureau of Economic Analysis and the Bureau of Labor Statistics 
('Designated Statistical Agencies') if such information is required 
for an authorized statistical piu-pose and the provision is the subject 
of a written agreement with that Designated Statistical Agency, 
or their successors, as defined in the Confidential Information 
Protection and Statistical Efficiency Act of 2002."; and 
116 STAT. 2970 
PUBLIC LAW 107-347—DEC. 17, 2002 
(2) in the table of sections for the chapter by adding after 
the item relating to section 401 the following: 
"402. Providing business data to Designated Statistical Agencies.". 
Approved December 17, 2002. 
LEGISLATIVE HISTORY—H.R. 2458 (S. 803): 
HOUSE REPORTS: No. 107-787, Pt. 1 (Comm. on Government Reform). 
SENATE REPORTS: No. 107-174 accompanying S. 803 (Comm. on Governmental 
Affairs). 
CONGRESSIONAL RECORD, Vol. 148 (2002): 
Nov. 14, considered and passed House. 
Nov. 15, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002): 
Dec. 17, Presidential statement. 
o