[Congressional Record Volume 148, Number 147 (Thursday, November 14, 2002)]
[House]
[Pages H8764-H8784]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          PERSONAL EXPLANATION

  Mr. TIAHRT. Mr. Speaker, today November 14, I was unavoidably 
detained and missed two rollcall votes numbered 479 and 480.
  Rollcall No. 479 was a vote on ordering the Previous Question 
concerning the Rule for H.R. 5063. Had I been present, I would have 
voted ``yea.''
  Rollcall No. 480 was on passage of H. Res. 609, the ``Rule Providing 
for Consideration of the Armed Forced Tax Fairness Act of 2002.'' Had I 
been present I would have voted ``yea'' on H. Res. 609.

                  Conference Report (H. Rept. 107-789)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4628), to authorize appropriations for fiscal year 2003 for 
     intelligence and intelligence-related activities of the 
     United States Government, the Community Management Account, 
     and the Central Intelligence Agency Retirement and Disability 
     System, and for other purposes, having met after full and 
     free conference, having agreed to recommend and do recommend 
     to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same and with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Intelligence Authorization Act for Fiscal Year 2003''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Authorization of emergency supplemental appropriations for 
              fiscal year 2002.
Sec. 106. Additional authorizations of appropriations for intelligence 
              for the war on terrorism.
Sec. 107. Specific authorization of funds for intelligence or 
              intelligence-related activities for which fiscal year 
              2003 appropriations exceed amounts authorized.
Sec. 108. Incorporation of reporting requirements.
Sec. 109. Preparation and submittal of reports, reviews, studies, and 
              plans relating to intelligence activities of Department 
              of Defense or Department of Energy.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                     TITLE III--GENERAL PROVISIONS

                Subtitle A--Recurring General Provisions

Sec. 301. Increase in employee compensation and benefits authorized by 
              law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Sense of Congress on intelligence community contracting.

                        Subtitle B--Intelligence

Sec. 311. Specificity of National Foreign Intelligence Program budget 
              amounts for counterterrorism, counterproliferation, 
              counternarcotics, and counterintelligence.
Sec. 312. Prohibition on compliance with requests for information 
              submitted by foreign governments.
Sec. 313. National Virtual Translation Center.

                         Subtitle C--Personnel

Sec. 321. Standards and qualifications for the performance of 
              intelligence activities.
Sec. 322. Modification of excepted agency voluntary leave transfer 
              authority.
Sec. 323. Sense of Congress on diversity in the workforce of 
              intelligence community agencies.
Sec. 324. Annual report on hiring and retention of minority employees 
              in the intelligence community.
Sec. 325. Report on establishment of a Civilian Linguist Reserve Corps.

                         Subtitle D--Education

Sec. 331. Scholarships and work-study for pursuit of graduate degrees 
              in science and technology.
Sec. 332. Cooperative relationship between the National Security 
              Education Program and the Foreign Language Center of the 
              Defense Language Institute.
Sec. 333. Establishment of National Flagship Language Initiative within 
              the National Security Education Program.
Sec. 334. Report on the National Security Education Program.

                         Subtitle E--Terrorism

Sec. 341. Foreign Terrorist Asset Tracking Center.
Sec. 342. Semiannual report on financial intelligence on terrorist 
              assets (FITA).
Sec. 343. Terrorist Identification Classification System.

                       Subtitle F--Other Matters

Sec. 351. Additional one-year suspension of reorganization of 
              Diplomatic Telecommunications Service Program Office.
Sec. 352. Standardized transliteration of names into the Roman 
              alphabet.

[[Page H8765]]

Sec. 353. Definition of congressional intelligence committees in 
              National Security Act of 1947.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Two-year extension of Central Intelligence Agency Voluntary 
              Separation Pay Act.
Sec. 402. Implementation of compensation reform plan.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

Sec. 501. Use of funds for counterdrug and counterterrorism activities 
              for Colombia.
Sec. 502. Protection of operational files of the National 
              Reconnaissance Office.
Sec. 503. Eligibility of employees in Intelligence Senior Level 
              positions for Presidential Rank Awards.

  TITLE VI--NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED 
                                STATES.

Sec. 601. Establishment of Commission.
Sec. 602. Purposes.
Sec. 603. Composition of Commission.
Sec. 604. Functions of Commission.
Sec. 605. Powers of Commission.
Sec. 606. Nonapplicability of Federal Advisory Committee Act.
Sec. 607. Staff of Commission.
Sec. 608. Compensation and travel expenses.
Sec. 609. Security clearances for Commission members and staff.
Sec. 610. Reports of Commission; termination.
Sec. 611. Funding.

                     TITLE VII--INFORMATION SHARING

Sec. 701. Short title.
Sec. 702. Findings and sense of Congress.
Sec. 703. Facilitating homeland security information sharing 
              procedures.
Sec. 704. Report.
Sec. 705. Authorization of appropriations.
Sec. 706. Coordination provision.

                   TITLE VIII--REPORTING REQUIREMENTS

                      Subtitle A--Overdue Reports

Sec. 801. Deadline for submittal of various overdue reports.

      Subtitle B--Submittal of Reports to Intelligence Committees

Sec. 811. Dates for submittal of various annual and semiannual reports 
              to the congressional intelligence committees.

                  Subtitle C--Recurring Annual Reports

Sec. 821. Annual report on threat of attack on the United States using 
              weapons of mass destruction.
Sec. 822. Annual report on covert leases.
Sec. 823. Annual report on improvement of financial statements of 
              certain elements of the intelligence community for 
              auditing purposes.
Sec. 824. Annual report on activities of Federal Bureau of 
              Investigation personnel outside the United States.
Sec. 825. Annual reports of inspectors general of the intelligence 
              community on proposed resources and activities of their 
              offices.
Sec. 826. Annual report on counterdrug intelligence matters.
Sec. 827. Annual report on foreign companies involved in the 
              proliferation of weapons of mass destruction that raise 
              funds in the United States capital markets.

                       Subtitle D--Other Reports

Sec. 831. Report on effect of country-release restrictions on allied 
              intelligence-sharing relationships.
Sec. 832. Evaluation of policies and procedures of Department of State 
              on protection of classified information at department 
              headquarters.

           Subtitle E--Repeal of Certain Report Requirements

Sec. 841. Repeal of certain report requirements.

                TITLE IX--COUNTERINTELLIGENCE ACTIVITIES

Sec. 901. Short title; purpose.
Sec. 902. National Counterintelligence Executive.
Sec. 903. National Counterintelligence Policy Board.
Sec. 904. Office of the National Counterintelligence Executive.

  TITLE X--NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT 
          PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY

Sec. 1001. Findings.
Sec. 1002. National Commission for the Review of the Research and 
              Development Programs of the United States Intelligence 
              Community.
Sec. 1003. Powers of Commission.
Sec. 1004. Staff of Commission.
Sec. 1005. Compensation and travel expenses.
Sec. 1006. Treatment of information relating to national security.
Sec. 1007. Final report; termination.
Sec. 1008. Assessments of final report.
Sec. 1009. Inapplicability of certain administrative provisions.
Sec. 1010. Funding.
Sec. 1011. Definitions.

                    TITLE I--INTELLIGENCE ACTIVITIES

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the conduct of the intelligence and 
     intelligence-related activities of the following elements of 
     the United States Government:
       (1) The Central Intelligence Agency.
       (2) The Department of Defense.
       (3) The Defense Intelligence Agency.
       (4) The National Security Agency.
       (5) The Department of the Army, the Department of the Navy, 
     and the Department of the Air Force.
       (6) The Department of State.
       (7) The Department of the Treasury.
       (8) The Department of Energy.
       (9) The Federal Bureau of Investigation.
       (10) The National Reconnaissance Office.
       (11) The National Imagery and Mapping Agency.
       (12) The Coast Guard.

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Ceilings.--The 
     amounts authorized to be appropriated under section 101, and 
     the authorized personnel ceilings as of September 30, 2003, 
     for the conduct of the intelligence and intelligence-related 
     activities of the elements listed in such section, are those 
     specified in the classified Schedule of Authorizations 
     prepared to accompany the conference report on H.R. 4628 of 
     the One Hundred Seventh Congress.
       (b) Availability of Classified Schedule of 
     Authorizations.--The Schedule of Authorizations shall be made 
     available to the Committees on Appropriations of the Senate 
     and House of Representatives and to the President. The 
     President shall provide for suitable distribution of the 
     Schedule, or of appropriate portions of the Schedule, within 
     the executive branch.

     SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

       (a) Authority for Adjustments.--With the approval of the 
     Director of the Office of Management and Budget, the Director 
     of Central Intelligence may authorize employment of civilian 
     personnel in excess of the number authorized for fiscal year 
     2003 under section 102 when the Director of Central 
     Intelligence determines that such action is necessary to the 
     performance of important intelligence functions, except that 
     the number of personnel employed in excess of the number 
     authorized under such section may not, for any element of the 
     intelligence community, exceed 2 percent of the number of 
     civilian personnel authorized under such section for such 
     element.
       (b) Notice to Intelligence Committees.--The Director of 
     Central Intelligence shall notify promptly the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives and the Select Committee on Intelligence of 
     the Senate whenever the Director exercises the authority 
     granted by this section.

     SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Intelligence Community Management 
     Account of the Director of Central Intelligence for fiscal 
     year 2003 the sum of $158,254,000. Within such amount, funds 
     identified in the classified Schedule of Authorizations 
     referred to in section 102(a) for advanced research and 
     development shall remain available until September 30, 2004.
       (b) Authorized Personnel Levels.--The elements within the 
     Intelligence Community Management Account of the Director of 
     Central Intelligence are authorized 322 full-time personnel 
     as of September 30, 2003. Personnel serving in such elements 
     may be permanent employees of the Intelligence Community 
     Management Account or personnel detailed from other elements 
     of the United States Government.
       (c) Classified Authorizations.--
       (1) Authorization of appropriations.--In addition to 
     amounts authorized to be appropriated for the Intelligence 
     Community Management Account by subsection (a), there are 
     also authorized to be appropriated for the Intelligence 
     Community Management Account for fiscal year 2003 such 
     additional amounts as are specified in the classified 
     Schedule of Authorizations referred to in section 102(a). 
     Such additional amounts for research and development shall 
     remain available until September 30, 2004.
       (2) Authorization of personnel.--In addition to the 
     personnel authorized by subsection (b) for elements of the 
     Intelligence Community Management Account as of September 30, 
     2003, there are hereby authorized such additional personnel 
     for such elements as of that date as are specified in the 
     classified Schedule of Authorizations.
       (d) Reimbursement.--Except as provided in section 113 of 
     the National Security Act of 1947 (50 U.S.C. 404h), during 
     fiscal year 2003 any officer or employee of the United States 
     or a member of the Armed Forces who is detailed to the staff 
     of the Intelligence Community Management Account from another 
     element of the United States Government shall be detailed on 
     a reimbursable basis, except that any such officer, employee, 
     or member may be detailed on a nonreimbursable basis for a 
     period of less than one year for the performance of temporary 
     functions as required by the Director of Central 
     Intelligence.
       (e) National Drug Intelligence Center.--
       (1) In general.--Of the amount authorized to be 
     appropriated in subsection (a), $34,100,000 shall be 
     available for the National Drug Intelligence Center. Within 
     such amount, funds provided for research, development, 
     testing, and evaluation purposes shall remain available until 
     September 30, 2004, and funds provided for procurement 
     purposes shall remain available until September 30, 2005.
       (2) Transfer of funds.--The Director of Central 
     Intelligence shall transfer to the Attorney General funds 
     available for the National Drug Intelligence Center under 
     paragraph (1). The Attorney General shall utilize funds so 
     transferred for the activities of the National Drug 
     Intelligence Center.
       (3) Limitation.--Amounts available for the National Drug 
     Intelligence Center may not be used in contravention of the 
     provisions of section 103(d)(1) of the National Security Act 
     of 1947 (50 U.S.C. 403-3(d)(1)).

[[Page H8766]]

       (4) Authority.--Notwithstanding any other provision of law, 
     the Attorney General shall retain full authority over the 
     operations of the National Drug Intelligence Center.

     SEC. 105. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 2002.

       (a) Authorization.--Amounts authorized to be appropriated 
     for fiscal year 2002 under section 101 of the Intelligence 
     Authorization Act for Fiscal Year 2002 (Public Law 107-108) 
     for the conduct of the intelligence activities of elements of 
     the United States Government listed in such section are 
     hereby increased, with respect to any such authorized amount, 
     by the amount by which appropriations pursuant to such 
     authorization were increased by the following:
       (1) The Emergency Supplemental Act, 2002 (contained in 
     division B of Public Law 107-117), including section 304 of 
     such Act (115 Stat. 2300).
       (2) The 2002 Supplemental Appropriations Act for Further 
     Recovery From and Response To Terrorist Attacks on the United 
     States (Public Law 107-206), for such amounts as are 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).
       (b) Ratification.--For purposes of section 504 of the 
     National Security Act of 1947 (50 U.S.C. 414), any obligation 
     or expenditure of those amounts deemed to have been 
     specifically authorized by the Acts referred to in subsection 
     (a) is hereby ratified and confirmed.

     SEC. 106. ADDITIONAL AUTHORIZATIONS OF APPROPRIATIONS FOR 
                   INTELLIGENCE FOR THE WAR ON TERRORISM.

       (a) In General.--Subject to subsection (b), the amounts 
     requested in the letter dated July 3, 2002, of the President 
     to the Speaker of the House of Representatives, related to 
     the Defense Emergency Response Fund and that are designated 
     for the incremental costs of intelligence and intelligence-
     related activities for the war on terrorism are authorized.
       (b) Limitations.--The amounts referred to in subsection 
     (a)--
       (1) are authorized only for activities directly related to 
     identifying, responding to, or protecting against acts or 
     threatened acts of terrorism;
       (2) are not authorized to correct programmatic or fiscal 
     deficiencies in major acquisition programs which will not 
     achieve initial operational capabilities within two years of 
     the date of the enactment of this Act; and
       (3) are not available until the end of the 10-day period 
     that begins on the date written notice is provided to the 
     Select Committee on Intelligence and the Committee on 
     Appropriations of the Senate and the Permanent Select 
     Committee on Intelligence and the Committee on Appropriations 
     of the House of Representatives.

     SEC. 107. SPECIFIC AUTHORIZATION OF FUNDS FOR INTELLIGENCE OR 
                   INTELLIGENCE-RELATED ACTIVITIES FOR WHICH 
                   FISCAL YEAR 2003 APPROPRIATIONS EXCEED AMOUNTS 
                   AUTHORIZED.

       Funds appropriated for an intelligence or intelligence-
     related activity for fiscal year 2003 in excess of the amount 
     specified for such activity in the classified Schedule of 
     Authorizations prepared to accompany this Act shall be deemed 
     to be specifically authorized by Congress for purposes of 
     section 504(a)(3) of the National Security Act of 1947 (50 
     U.S.C. 414(a)(3)).

     SEC. 108. INCORPORATION OF REPORTING REQUIREMENTS.

       (a) In General.--Each requirement to submit a report to the 
     congressional intelligence committees that is included in the 
     joint explanatory statement to accompany the conference 
     report on the bill H.R. 4628 of the One Hundred Seventh 
     Congress, or in the classified annex to this Act, is hereby 
     incorporated into this Act, and is hereby made a requirement 
     in law.
       (b) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

     SEC. 109. PREPARATION AND SUBMITTAL OF REPORTS, REVIEWS, 
                   STUDIES, AND PLANS RELATING TO INTELLIGENCE 
                   ACTIVITIES OF DEPARTMENT OF DEFENSE OR 
                   DEPARTMENT OF ENERGY.

       (a) Consultation in Preparation.--(1) The Director of 
     Central Intelligence shall ensure that any report, review, 
     study, or plan required to be prepared or conducted by a 
     provision of this Act, including a provision of the 
     classified Schedule of Authorizations referred to in section 
     102(a) or the classified annex to this Act, that involves the 
     intelligence or intelligence-related activities of the 
     Department of Defense or the Department of Energy is prepared 
     or conducted in consultation with the Secretary of Defense or 
     the Secretary of Energy, as appropriate.
       (2) The Secretary of Defense or the Secretary of Energy may 
     carry out any consultation required by this subsection 
     through an official of the Department of Defense or the 
     Department of Energy, as the case may be, designated by such 
     Secretary for that purpose.
       (b) Submittal.--Any report, review, study, or plan referred 
     to in subsection (a) shall be submitted, in addition to any 
     other committee of Congress specified for submittal in the 
     provision concerned, to the following committees of 
     Congress:
       (1) The Committees on Armed Services and Appropriations and 
     the Select Committee on Intelligence of the Senate.
       (2) The Committees on Armed Services and Appropriations and 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for the Central 
     Intelligence Agency Retirement and Disability Fund for fiscal 
     year 2003 the sum of $222,500,000.

                     TITLE III--GENERAL PROVISIONS

                Subtitle A--Recurring General Provisions

     SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS 
                   AUTHORIZED BY LAW.

       Appropriations authorized by this Act for salary, pay, 
     retirement, and other benefits for Federal employees may be 
     increased by such additional or supplemental amounts as may 
     be necessary for increases in such compensation or benefits 
     authorized by law.

     SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

       The authorization of appropriations by this Act shall not 
     be deemed to constitute authority for the conduct of any 
     intelligence activity which is not otherwise authorized by 
     the Constitution or the laws of the United States.

     SEC. 303. SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY 
                   CONTRACTING.

       It is the sense of Congress that the Director of Central 
     Intelligence should continue to direct that elements of the 
     intelligence community, whenever compatible with the national 
     security interests of the United States and consistent with 
     operational and security concerns related to the conduct of 
     intelligence activities, and where fiscally sound, should 
     competitively award contracts in a manner that maximizes the 
     procurement of products properly designated as having been 
     made in the United States.

                        Subtitle B--Intelligence

     SEC. 311. SPECIFICITY OF NATIONAL FOREIGN INTELLIGENCE 
                   PROGRAM BUDGET AMOUNTS FOR COUNTERTERRORISM, 
                   COUNTERPROLIFERATION, COUNTERNARCOTICS, AND 
                   COUNTERINTELLIGENCE.

       (a) In General.--Title V of the National Security Act of 
     1947 (50 U.S.C. 413 et seq.) is amended by adding at the end 
     the following new section:


 ``specificity of national foreign intelligence program budget amounts 
   for counterterrorism, counterproliferation, counternarcotics, and 
                          counterintelligence

       ``Sec. 506. (a) In General.--The budget justification 
     materials submitted to Congress in support of the budget of 
     the President for a fiscal year that is submitted to Congress 
     under section 1105(a) of title 31, United States Code, shall 
     set forth separately the aggregate amount requested for that 
     fiscal year for the National Foreign Intelligence Program for 
     each of the following:
       ``(1) Counterterrorism.
       ``(2) Counterproliferation.
       ``(3) Counternarcotics.
       ``(4) Counterintelligence.
       ``(b) Election of Classified or Unclassified Form.--Amounts 
     set forth under subsection (a) may be set forth in 
     unclassified form or classified form, at the election of the 
     Director of Central Intelligence.''.
       (b) Clerical Amendment.--The table of sections for that Act 
     is amended by inserting after the item relating to section 
     505 the following new item:

``Sec. 506. Specificity of National Foreign Intelligence Program budget 
              amounts for counterterrorism, counterproliferation, 
              counternarcotics, and counterintelligence.''.

     SEC. 312. PROHIBITION ON COMPLIANCE WITH REQUESTS FOR 
                   INFORMATION SUBMITTED BY FOREIGN GOVERNMENTS.

       Section 552(a)(3) of title 5, United States Code, is 
     amended--
       (1) in subparagraph (A) by inserting ``and except as 
     provided in subparagraph (E),'' after ``of this 
     subsection,''; and
       (2) by adding at the end the following:
       ``(E) An agency, or part of an agency, that is an element 
     of the intelligence community (as that term is defined in 
     section 3(4) of the National Security Act of 1947 (50 U.S.C. 
     401a(4))) shall not make any record available under this 
     paragraph to--
       ``(i) any government entity, other than a State, territory, 
     commonwealth, or district of the United States, or any 
     subdivision thereof; or
       ``(ii) a representative of a government entity described in 
     clause (i).''.

     SEC. 313. NATIONAL VIRTUAL TRANSLATION CENTER.

       (a) Establishment.--The Director of Central Intelligence, 
     acting as the head of the intelligence community, shall 
     establish in the intelligence community an element with the 
     function of connecting the elements of the intelligence 
     community engaged in the acquisition, storage, translation, 
     or analysis of voice or data in digital form.
       (b) Designation.--The element established under subsection 
     (a) shall be known as the National Virtual Translation 
     Center.
       (c) Administrative Matters.--(1) The Director shall retain 
     direct supervision and control over the element established 
     under subsection (a).
       (2) The element established under subsection (a) shall 
     connect elements of the intelligence community utilizing 
     the most current available information technology that is 
     applicable to the function of the element.

[[Page H8767]]

       (d) Deadline for Establishment.--The element required by 
     subsection (a) shall be established as soon as practicable 
     after the date of the enactment of this Act, but not later 
     than 90 days after that date.

                         Subtitle C--Personnel

     SEC. 321. STANDARDS AND QUALIFICATIONS FOR THE PERFORMANCE OF 
                   INTELLIGENCE ACTIVITIES.

       Section 104 of the National Security Act of 1947 (50 U.S.C. 
     403-4) is amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) Standards and Qualifications for Performance of 
     Intelligence Activities.--The Director, acting as the head of 
     the intelligence community, shall, in consultation with the 
     heads of effected agencies, develop standards and 
     qualifications for persons engaged in the performance of 
     intelligence activities within the intelligence community.''.

     SEC. 322. MODIFICATION OF EXCEPTED AGENCY VOLUNTARY LEAVE 
                   TRANSFER AUTHORITY.

       (a) In General.--Section 6339 of title 5, United States 
     Code, is amended--
       (1) by striking subsection (b);
       (2) by redesignating subsection (c) as subsection (b); and
       (3) by inserting after subsection (b) (as so redesignated 
     by paragraph (2)) the following:
       ``(c)(1) Notwithstanding any provision of subsection (b), 
     the head of an excepted agency may, at his sole discretion, 
     by regulation establish a program under which an individual 
     employed in or under such excepted agency may participate in 
     a leave transfer program established under the provisions of 
     this subchapter outside of this section, including provisions 
     permitting the transfer of annual leave accrued or 
     accumulated by such employee to, or permitting such employee 
     to receive transferred leave from, an employee of any other 
     agency (including another excepted agency having a program 
     under this subsection).
       ``(2) To the extent practicable and consistent with the 
     protection of intelligence sources and methods, any program 
     established under paragraph (1) shall be consistent with the 
     provisions of this subchapter outside of this section and 
     with any regulations issued by the Office of Personnel 
     Management implementing this subchapter.''.
       (b) Conforming Amendments.--Section 6339 of such title is 
     amended--
       (1) in paragraph (2) of subsection (b) (as so redesignated 
     by subsection (a)(2)), by striking ``under this section'' and 
     inserting ``under this subsection''; and
       (2) in subsection (d), by striking ``of Personnel 
     Management''.

     SEC. 323. SENSE OF CONGRESS ON DIVERSITY IN THE WORKFORCE OF 
                   INTELLIGENCE COMMUNITY AGENCIES.

       (a) Findings.--Congress finds the following:
       (1) The United States is engaged in a war against terrorism 
     that requires the active participation of the intelligence 
     community.
       (2) Certain intelligence agencies, among them the Federal 
     Bureau of Investigation and the Central Intelligence Agency, 
     have announced that they will be hiring several hundred new 
     agents to help conduct the war on terrorism.
       (3) Former Directors of the Federal Bureau of 
     Investigation, the Central Intelligence Agency, the National 
     Security Agency, and the Defense Intelligence Agency have 
     stated that a more diverse intelligence community would be 
     better equipped to gather and analyze information on diverse 
     communities.
       (4) The Central Intelligence Agency and the National 
     Security Agency were authorized to establish an undergraduate 
     training program for the purpose of recruiting and training 
     minority operatives in 1987.
       (5) The Defense Intelligence Agency was authorized to 
     establish an undergraduate training program for the purpose 
     of recruiting and training minority operatives in 1988.
       (6) The National Imagery and Mapping Agency was authorized 
     to establish an undergraduate training program for the 
     purpose of recruiting and training minority operatives in 
     2000.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Director of the Federal Bureau of Investigation 
     (with respect to the intelligence and intelligence-related 
     activities of the Bureau), the Director of Central 
     Intelligence, the Director of the National Security Agency, 
     and the Director of the Defense Intelligence Agency should 
     make the creation of a more diverse workforce a priority in 
     hiring decisions; and
       (2) the Director of Central Intelligence, the Director of 
     the National Security Agency, the Director of the Defense 
     Intelligence Agency, and the Director of the National Imagery 
     and Mapping Agency should increase their minority recruitment 
     efforts through the undergraduate training program provided 
     for under law.

     SEC. 324. ANNUAL REPORT ON HIRING AND RETENTION OF MINORITY 
                   EMPLOYEES IN THE INTELLIGENCE COMMUNITY.

       Section 114 of the National Security Act of 1947 (50 U.S.C. 
     404i) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Annual Report on Hiring and Retention of Minority 
     Employees.--(1) The Director of Central Intelligence shall, 
     on an annual basis, submit to Congress a report on the 
     employment of covered persons within each element of the 
     intelligence community for the preceding fiscal year.
       ``(2) Each such report shall include disaggregated data by 
     category of covered person from each element of the 
     intelligence community on the following:
       ``(A) Of all individuals employed in the element during the 
     fiscal year involved, the aggregate percentage of such 
     individuals who are covered persons.
       ``(B) Of all individuals employed in the element during the 
     fiscal year involved at the levels referred to in clauses (i) 
     and (ii), the percentage of covered persons employed at such 
     levels:
       ``(i) Positions at levels 1 through 15 of the General 
     Schedule.
       ``(ii) Positions at levels above GS-15.
       ``(C) Of all individuals hired by the element involved 
     during the fiscal year involved, the percentage of such 
     individuals who are covered persons.
       ``(3) Each such report shall be submitted in unclassified 
     form, but may contain a classified annex.
       ``(4) Nothing in this subsection shall be construed as 
     providing for the substitution of any similar report required 
     under another provision of law.
       ``(5) In this subsection, the term `covered persons' 
     means--
       ``(A) racial and ethnic minorities;
       ``(B) women; and
       ``(C) individuals with disabilities.''.

     SEC. 325. REPORT ON ESTABLISHMENT OF A CIVILIAN LINGUIST 
                   RESERVE CORPS.

       (a) Report.--The Secretary of Defense, acting through the 
     Director of the National Security Education Program, shall 
     prepare a report on the feasibility of establishing a 
     Civilian Linguist Reserve Corps comprised of individuals with 
     advanced levels of proficiency in foreign languages who are 
     United States citizens who would be available upon a call of 
     the President to perform such service or duties with respect 
     to such foreign languages in the Federal Government as the 
     President may specify. In preparing the report, the Secretary 
     shall consult with such organizations having expertise in 
     training in foreign languages as the Secretary determines 
     appropriate.
       (b) Matters Considered.--
       (1) In general.--In conducting the study, the Secretary 
     shall develop a proposal for the structure and operations of 
     the Civilian Linguist Reserve Corps. The proposal shall 
     establish requirements for performance of duties and levels 
     of proficiency in foreign languages of the members of the 
     Civilian Linguist Reserve Corps, including maintenance of 
     language skills and specific training required for 
     performance of duties as a linguist of the Federal 
     Government, and shall include recommendations on such other 
     matters as the Secretary determines appropriate.
       (2) Consideration of use of defense language institute and 
     language registries.--In developing the proposal under 
     paragraph (1), the Secretary shall consider the 
     appropriateness of using--
       (A) the Defense Language Institute to conduct testing for 
     language skills proficiency and performance, and to provide 
     language refresher courses; and
       (B) foreign language skill registries of the Department of 
     Defense or of other agencies or departments of the United 
     States to identify individuals with sufficient proficiency in 
     foreign languages.
       (3) Consideration of the model of the reserve components of 
     the armed forces.--In developing the proposal under paragraph 
     (1), the Secretary shall consider the provisions of title 10, 
     United States Code, establishing and governing service in the 
     Reserve Components of the Armed Forces, as a model for the 
     Civilian Linguist Reserve Corps.
       (c) Completion of Report.--Not later than 6 months after 
     the date of the enactment of this Act, the Secretary shall 
     submit to Congress the report prepared under subsection (a).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Defense $300,000 to 
     carry out this section.

                         Subtitle D--Education

     SEC. 331. SCHOLARSHIPS AND WORK-STUDY FOR PURSUIT OF GRADUATE 
                   DEGREES IN SCIENCE AND TECHNOLOGY.

       (a) Program Authorized.--The National Security Act of 1947 
     is amended--
       (1) by redesignating title X as title XI;
       (2) by redesignating section 1001 as section 1101; and
       (3) by inserting after title IX the following new title X:

        ``TITLE X--EDUCATION IN SUPPORT OF NATIONAL INTELLIGENCE


   ``scholarships and work-study for pursuit of graduate degrees in 
                         science and technology

       ``Sec. 1001. (a) Program Authorized.--The Director of 
     Central Intelligence may carry out a program to provide 
     scholarships and work-study for individuals who are pursuing 
     graduate degrees in fields of study in science and technology 
     that are identified by the Director as appropriate to meet 
     the future needs of the intelligence community for qualified 
     scientists and engineers.
       ``(b) Administration.--If the Director carries out the 
     program under subsection (a), the Director shall administer 
     the program through the Assistant Director of Central 
     Intelligence for Administration.
       ``(c) Identification of Fields of Study.--If the Director 
     carries out the program under subsection (a), the Director 
     shall identify fields of study under subsection (a) in 
     consultation with the other heads of the elements of the 
     intelligence community.
       ``(d) Eligibility for Participation.--An individual 
     eligible to participate in the program is any individual 
     who--
       ``(1) either--
       ``(A) is an employee of the intelligence community; or

[[Page H8768]]

       ``(B) meets criteria for eligibility for employment in the 
     intelligence community that are established by the Director;
       ``(2) is accepted in a graduate degree program in a field 
     of study in science or technology identified under subsection 
     (a); and
       ``(3) is eligible for a security clearance at the level of 
     Secret or above.
       ``(e) Regulations.--If the Director carries out the program 
     under subsection (a), the Director shall prescribe 
     regulations for purposes of the administration of this 
     section.''.
       (b) Clerical Amendment.--The table of sections for the 
     National Security Act of 1947 is amended by striking the 
     items relating to title X and section 1001 and inserting the 
     following new items:

        ``TITLE X--EDUCATION IN SUPPORT OF NATIONAL INTELLIGENCE

``Sec. 1001. Scholarships and work-study for pursuit of graduate 
              degrees in science and technology.

                      ``TITLE XI--OTHER PROVISIONS

``Sec. 1101. Applicability to United States intelligence activities of 
              Federal laws implementing international treaties and 
              agreements.''.

     SEC. 332. COOPERATIVE RELATIONSHIP BETWEEN THE NATIONAL 
                   SECURITY EDUCATION PROGRAM AND THE FOREIGN 
                   LANGUAGE CENTER OF THE DEFENSE LANGUAGE 
                   INSTITUTE.

       Section 802 of the David L. Boren National Security 
     Education Act of 1991 (50 U.S.C. 1902) is amended by adding 
     at the end the following new subsection:
       ``(h) Use of Awards To Attend the Foreign Language Center 
     of the Defense Language Institute.--(1) The Secretary shall 
     provide for the admission of award recipients to the Foreign 
     Language Center of the Defense Language Institute 
     (hereinafter in this subsection referred to as the `Center'). 
     An award recipient may apply a portion of the applicable 
     scholarship or fellowship award for instruction at the Center 
     on a space-available basis as a Department of Defense 
     sponsored program to defray the additive instructional costs.
       ``(2) Except as the Secretary determines necessary, an 
     award recipient who receives instruction at the Center shall 
     be subject to the same regulations with respect to 
     attendance, discipline, discharge, and dismissal as apply to 
     other persons attending the Center.
       ``(3) In this subsection, the term `award recipient' means 
     an undergraduate student who has been awarded a scholarship 
     under subsection (a)(1)(A) or a graduate student who has been 
     awarded a fellowship under subsection (a)(1)(B) who--
       ``(A) is in good standing;
       ``(B) has completed all academic study in a foreign 
     country, as provided for under the scholarship or fellowship; 
     and
       ``(C) would benefit from instruction provided at the 
     Center.''.

     SEC. 333. ESTABLISHMENT OF NATIONAL FLAGSHIP LANGUAGE 
                   INITIATIVE WITHIN THE NATIONAL SECURITY 
                   EDUCATION PROGRAM.

       (a) National Flagship Language Initiative.--
       (1) Expansion of grant program authority.--Subsection 
     (a)(1) of section 802 of the David L. Boren National Security 
     Education Act of 1991 (50 U.S.C. 1902) is amended--
       (A) by striking ``and'' at the end of subparagraph (B)(ii);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(D) awarding grants to institutions of higher education 
     to carry out activities under the National Flagship Language 
     Initiative (described in subsection (i)).''.
       (2) Provisions of national flagship language initiative.--
     Such section, as amended by section 332, is further amended 
     by adding at the end the following new subsection:
       ``(i) National Flagship Language Initiative.--(1) Under the 
     National Flagship Language Initiative, institutions of higher 
     education shall establish, operate, or improve activities 
     designed to train students in programs in a range of 
     disciplines to achieve advanced levels of proficiency in 
     those foreign languages that the Secretary identifies as 
     being the most critical in the interests of the national 
     security of the United States.
       ``(2) An undergraduate student who has been awarded a 
     scholarship under subsection (a)(1)(A) or a graduate student 
     who has been awarded a fellowship under subsection (a)(1)(B) 
     may participate in the activities carried out under the 
     National Flagship Language Initiative.
       ``(3) An institution of higher education that receives a 
     grant pursuant to subsection (a)(1)(D) shall give special 
     consideration to applicants who are employees of the Federal 
     Government.
       ``(4) For purposes of this subsection, the Foreign Language 
     Center of the Defense Language Institute and any other 
     educational institution that provides training in foreign 
     languages operated by the Department of Defense or an agency 
     in the intelligence community is deemed to be an institution 
     of higher education, and may carry out the types of 
     activities permitted under the National Flagship Language 
     Initiative.''.
       (3) Inapplicability of funding allocation rules.--
     Subsection (a)(2) of such section is amended by adding at the 
     end the following flush sentences:

     ``The funding allocation under this paragraph shall not apply 
     to grants under paragraph (1)(D) for the National Flagship 
     Language Initiative described in subsection (i). For the 
     authorization of appropriations for the National Flagship 
     Language Initiative, see section 811.''.
       (4) Board requirement.--Section 803(d)(4) of such Act (50 
     U.S.C. 1903(d)(4)) is amended--
       (A) by striking ``and'' at the end of subparagraph (C);
       (B) by striking the period at the end of subparagraph (D) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) which foreign languages are critical to the national 
     security interests of the United States for purposes of 
     section 802(a)(1)(D) (relating to grants for the National 
     Flagship Language Initiative).''.
       (b) Funding.--The David L. Boren National Security 
     Education Act of 1991 (50 U.S.C. 1901 et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 811. ADDITIONAL ANNUAL AUTHORIZATION OF 
                   APPROPRIATIONS.

       ``(a) In General.--In addition to amounts that may be made 
     available to the Secretary under the Fund for a fiscal year, 
     there is authorized to be appropriated to the Secretary for 
     each fiscal year, beginning with fiscal year 2003, 
     $10,000,000, to carry out the grant program for the National 
     Flagship Language Initiative under section 802(a)(1)(D).
       ``(b) Availability of Appropriated Funds.--Amounts 
     appropriated pursuant to the authorization of appropriations 
     under subsection (a) shall remain available until 
     expended.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date the Secretary of Defense 
     submits the report required under section 334 of this Act and 
     notifies the appropriate committees of Congress (as defined 
     in subsection (c) of that section) that the programs carried 
     out under the David L. Boren National Security Education Act 
     of 1991 are being managed in a fiscally and programmatically 
     sound manner.
       (d) Construction.--Nothing in this section shall be 
     construed as affecting any program or project carried out 
     under the David L. Boren National Security Education Act of 
     1991 as in effect on the date that precedes the date of the 
     enactment of this Act.

     SEC. 334. REPORT ON THE NATIONAL SECURITY EDUCATION PROGRAM.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the appropriate committees of Congress a report on 
     the matters described in subsection (b) with respect to the 
     David L. Boren National Security Education Act of 1991 (50 
     U.S.C. 1901 et seq.).
       (b) Covered Matters.--The matters described in this 
     subsection are as follows:
       (1) Effectiveness of program.--An evaluation of the 
     National Security Education Program, including an assessment 
     of the effectiveness of the program in meeting its goals and 
     an assessment of the administrative costs of the program in 
     relation to the amounts of scholarships, fellowships, and 
     grants awarded.
       (2) Conversion of funding.--An assessment of the 
     advisability of converting funding of the National Security 
     Education Program from funding through the National Security 
     Education Trust Fund under section 804 of that Act (50 U.S.C. 
     1904) to funding through appropriations.
       (3) Recommendations.--On any matter covered by paragraph 
     (1) or (2), such recommendations for legislation with respect 
     to such matter as the Secretary considers appropriate.
       (c) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Select Committee on Intelligence and the Committees 
     on Armed Services and Appropriations of the Senate; and
       (2) the Permanent Select Committee on Intelligence and the 
     Committees on Armed Services and Appropriations of the House 
     of Representatives.

                         Subtitle E--Terrorism

     SEC. 341. FOREIGN TERRORIST ASSET TRACKING CENTER.

       (a) Establishment.--The Director of Central Intelligence, 
     acting as the head of the intelligence community, shall 
     establish in the Central Intelligence Agency an element 
     responsible for conducting all-source intelligence analysis 
     of information relating to the financial capabilities, 
     practices, and activities of individuals, groups, and nations 
     associated with international terrorism in their activities 
     relating to international terrorism.
       (b) Designation.--The element established under subsection 
     (a) shall be known as the Foreign Terrorist Asset Tracking 
     Center.
       (c) Deadline for Establishment.--The element required by 
     subsection (a) shall be established as soon as practicable 
     after the date of the enactment of this Act, but not later 
     than 90 days after that date.

     SEC. 342. SEMIANNUAL REPORT ON FINANCIAL INTELLIGENCE ON 
                   TERRORIST ASSETS (FITA).

       (a) Semiannual Report.--
       (1) In general.--Title I of the National Security Act of 
     1947 (50 U.S.C. 402 et seq.) is amended by adding at the end 
     the following new section:


   ``semiannual report on financial intelligence on terrorist assets

       ``Sec. 118. (a) Semiannual Report.--On a semiannual basis, 
     the Secretary of the Treasury (acting through the head of the 
     Office of Intelligence Support) shall submit a report to the 
     appropriate congressional committees that fully informs the 
     committees concerning operations against terrorist financial 
     networks. Each such report shall include with respect to the 
     preceding six-month period--
       ``(1) the total number of asset seizures, designations, and 
     other actions against individuals or entities found to have 
     engaged in financial support of terrorism;

[[Page H8769]]

       ``(2) the total number of applications for asset seizure 
     and designations of individuals or entities suspected of 
     having engaged in financial support of terrorist activities 
     that were granted, modified, or denied;
       ``(3) the total number of physical searches of offices, 
     residences, or financial records of individuals or entities 
     suspected of having engaged in financial support for 
     terrorist activity; and
       ``(4) whether the financial intelligence information seized 
     in these cases has been shared on a full and timely basis 
     with the all departments, agencies, and other entities of the 
     United States Government involved in intelligence activities 
     participating in the Foreign Terrorist Asset Tracking Center.
       ``(b) Immediate Notification for Emergency Designation.--In 
     the case of a designation of an individual or entity, or the 
     assets of an individual or entity, as having been found to 
     have engaged in terrorist activities, the Secretary of the 
     Treasury shall report such designation within 24 hours of 
     such a designation to the appropriate congressional 
     committees.
       ``(c) Submittal Date of Reports to Congressional 
     Intelligence Committees.--In the case of the reports required 
     to be submitted under subsection (a) to the congressional 
     intelligence committees, the submittal dates for such reports 
     shall be as provided in section 507.
       ``(d) Appropriate Congressional Committees Defined.--In 
     this section, the term `appropriate congressional committees' 
     means the following:
       ``(1) The Permanent Select Committee on Intelligence, the 
     Committee on Appropriations, and the Committee on Financial 
     Services of the House of Representatives.
       ``(2) The Select Committee on Intelligence, the Committee 
     on Appropriations, and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate.''.
       (2) Clerical amendment.--The table of contents contained in 
     the first section of such Act is amended by inserting after 
     the item relating to section 117 the following new item:

``Sec. 118. Semiannual report on financial intelligence on terrorist 
              assets.''.

       (b) Conforming Amendment.--Section 501(f) of the National 
     Security Act of 1947 (50 U.S.C. 413(f)) is amended by 
     inserting before the period the following: ``, and includes 
     financial intelligence activities''.

     SEC. 343. TERRORIST IDENTIFICATION CLASSIFICATION SYSTEM.

       (a) Requirement.--(1) The Director of Central Intelligence, 
     acting as head of the Intelligence Community, shall--
       (A) establish and maintain a list of individuals who are 
     known or suspected international terrorists, and of 
     organizations that are known or suspected international 
     terrorist organizations; and
       (B) ensure that pertinent information on the list is shared 
     with the departments, agencies, and organizations described 
     by subsection (c).
       (2) The list under paragraph (1), and the mechanisms for 
     sharing information on the list, shall be known as the 
     ``Terrorist Identification Classification System''.
       (b) Administration.--(1) The Director shall prescribe 
     requirements for the inclusion of an individual or 
     organization on the list required by subsection (a), and for 
     the deletion or omission from the list of an individual or 
     organization currently on the list.
       (2) The Director shall ensure that the information utilized 
     to determine the inclusion, or deletion or omission, of an 
     individual or organization on or from the list is derived 
     from all-source intelligence.
       (3) The Director shall ensure that the list is maintained 
     in accordance with existing law and regulations governing the 
     collection, storage, and dissemination of intelligence 
     concerning United States persons.
       (c) Information Sharing.--Subject to section 103(c)(6) of 
     the National Security Act of 1947 (50 U.S.C. 403-3(c)(6)), 
     relating to the protection of intelligence sources and 
     methods, the Director shall provide for the sharing of the 
     list, and information on the list, with such departments and 
     agencies of the Federal Government, State and local 
     government agencies, and entities of foreign governments and 
     international organizations as the Director considers 
     appropriate.
       (d) Reporting and Certification.--(1) The Director shall 
     review on an annual basis the information provided by various 
     departments and agencies for purposes of the list under 
     subsection (a) in order to determine whether or not the 
     information so provided is derived from the widest possible 
     range of intelligence available to such departments and 
     agencies.
       (2) The Director shall, as a result of each review under 
     paragraph (1), certify whether or not the elements of the 
     intelligence community responsible for the collection of 
     intelligence related to the list have provided information 
     for purposes of the list that is derived from the widest 
     possible range of intelligence available to such department 
     and agencies.
       (e) Report on Criteria for Information Sharing.--(1) Not 
     later then March 1, 2003, the Director shall submit to the 
     congressional intelligence committees a report describing the 
     criteria used to determine which types of information on the 
     list required by subsection (a) are to be shared, and which 
     types of information are not to be shared, with various 
     departments and agencies of the Federal Government, State and 
     local government agencies, and entities of foreign 
     governments and international organizations.
       (2) The report shall include a description of the 
     circumstances in which the Director has determined that 
     sharing information on the list with the departments and 
     agencies of the Federal Government, and of State and local 
     governments, described by subsection (c) would be 
     inappropriate due to the concerns addressed by section 
     103(c)(6) of the National Security Act of 1947, relating to 
     the protection of sources and methods, and any instance in 
     which the sharing of information on the list has been 
     inappropriate in light of such concerns.
       (f) System Administration Requirements.--(1) The Director 
     shall, to the maximum extent practicable, ensure 
     the interoperability of the Terrorist Identification 
     Classification System with relevant information systems of 
     the departments and agencies of the Federal Government, 
     and of State and local governments, described by 
     subsection (c).
       (2) The Director shall ensure that the System utilizes 
     technologies that are effective in aiding the identification 
     of individuals in the field.
       (g) Report on Status of System.--(1) Not later than one 
     year after the date of the enactment of this Act, the 
     Director shall, in consultation with the Director of Homeland 
     Security, submit to the congressional intelligence committees 
     a report on the status of the Terrorist Identification 
     Classification System. The report shall contain a 
     certification on the following:
       (A) Whether the System contains the intelligence 
     information necessary to facilitate the contribution of the 
     System to the domestic security of the United States.
       (B) Whether the departments and agencies having access to 
     the System have access in a manner that permits such 
     departments and agencies to carry out appropriately their 
     domestic security responsibilities.
       (C) Whether the System is operating in a manner that 
     maximizes its contribution to the domestic security of the 
     United States.
       (D) If a certification under subparagraph (A), (B), or (C) 
     is in the negative, the modifications or enhancements of the 
     System necessary to ensure a future certification in the 
     positive.
       (2) The report shall be submitted in unclassified form, but 
     may include a classified annex.
       (h) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

                       Subtitle F--Other Matters

     SEC. 351. ADDITIONAL ONE-YEAR SUSPENSION OF REORGANIZATION OF 
                   DIPLOMATIC TELECOMMUNICATIONS SERVICE PROGRAM 
                   OFFICE.

       Section 311 of the Intelligence Authorization Act for 
     Fiscal Year 2002 (Public Law 107-108; 22 U.S.C. 7301 note; 
     115 Stat. 1401) is amended--
       (1) in the heading, by striking ``ONE-YEAR'' and inserting 
     ``TWO-YEAR''; and
       (2) in the text, by striking ``October 1, 2002'' and 
     inserting ``October 1, 2003''.

     SEC. 352. STANDARDIZED TRANSLITERATION OF NAMES INTO THE 
                   ROMAN ALPHABET.

       (a) Method of Transliteration Required.--Not later than 180 
     days after the date of the enactment of this Act, the 
     Director of Central Intelligence shall provide for a 
     standardized method for transliterating into the Roman 
     alphabet personal and place names originally rendered in any 
     language that uses an alphabet other than the Roman alphabet.
       (b) Use by Intelligence Community.--The Director shall 
     ensure the use of the method established under subsection (a) 
     in--
       (1) all communications among the elements of the 
     intelligence community; and
       (2) all intelligence products of the intelligence 
     community.

     SEC. 353. DEFINITION OF CONGRESSIONAL INTELLIGENCE COMMITTEES 
                   IN NATIONAL SECURITY ACT OF 1947.

       (a) In General.--Section 3 of the National Security Act of 
     1947 (50 U.S.C. 401a) is amended by adding at the end the 
     following new paragraph:
       ``(7) The term `congressional intelligence committees' 
     means--
       ``(A) the Select Committee on Intelligence of the Senate; 
     and
       ``(B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.''.
       (b) Conforming Amendments.--(1) That Act is further amended 
     by striking ``Select Committee on Intelligence of the Senate 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives'' and inserting ``congressional 
     intelligence committees'' in each of the following 
     provisions:
       (A) Section 104(d)(4) (50 U.S.C. 403-4(d)(4)).
       (B) Section 603(a) (50 U.S.C. 423(a)).
       (2) That Act is further amended by striking ``Permanent 
     Select Committee on Intelligence of the House of 
     Representatives and the Select Committee on Intelligence of 
     the Senate'' and inserting ``congressional intelligence 
     committees'' in each of the following provisions:
       (A) Section 301(j) (50 U.S.C. 409a(j)).
       (B) Section 801(b)(2) (50 U.S.C. 435(b)(2)).
       (C) Section 903 (50 U.S.C. 441b).
       (3) That Act is further amended by striking ``intelligence 
     committees'' and inserting ``congressional intelligence 
     committees'' each place it appears in each of the following 
     provisions:
       (A) Section 501 (50 U.S.C. 413).
       (B) Section 502 (50 U.S.C. 413a).
       (C) Section 503 (50 U.S.C. 413b).
       (D) Section 504(d)(2) (50 U.S.C. 414(d)(2)).
       (4) Section 104(d)(5) of that Act (50 U.S.C. 403-4(d)(5)) 
     is amended by striking ``Select Committee on Intelligence of 
     the Senate and to the Permanent Select Committee on 
     Intelligence of the House of Representatives'' and inserting 
     ``congressional intelligence committees''.
       (5) Section 105C(a)(3)(C) of that Act (50 U.S.C. 403-
     5c(a)(3)(C)) is amended--
       (A) by striking clauses (i) and (ii) and inserting the 
     following new clause (i):
       ``(i) The congressional intelligence committees.''; and
       (B) by redesignating clauses (iii), (iv), (v), and (vi) as 
     clauses (ii), (iii), (iv), and (v), respectively.

[[Page H8770]]

       (6) Section 114 of that Act (50 U.S.C. 404i), as amended by 
     section 324, is amended by striking subsection (d), as so 
     redesignated, and inserting the following new subsection (d):
       ``(d) Congressional Leadership Defined.--In this section, 
     the term `congressional leadership' means the Speaker and the 
     minority leader of the House of Representatives and the 
     majority leader and the minority leader of the Senate.''.
       (7) Section 501(a) of that Act (50 U.S.C. 413(a)), as 
     amended by paragraph (3) of this subsection, is further 
     amended--
       (A) by striking paragraph (2); and
       (B) by redesignating paragraph (3) as paragraph (2).
       (8) Section 503(c)(4) of that Act (50 U.S.C. 413b(c)(4)) is 
     amended by striking ``intelligence committee'' and inserting 
     ``congressional intelligence committee''.
       (9) Section 602(c) of that Act (50 U.S.C. 422(c)) is 
     amended by striking ``the Select Committee on Intelligence of 
     the Senate or to the Permanent Select Committee on 
     Intelligence of the House of Representatives'' and inserting 
     ``either congressional intelligence committee''.
       (10) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is 
     amended by striking ``intelligence committees of the 
     Congress'' and inserting ``congressional intelligence 
     committees''.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     SEC. 401. TWO-YEAR EXTENSION OF CENTRAL INTELLIGENCE AGENCY 
                   VOLUNTARY SEPARATION PAY ACT.

       Section 2 of the Central Intelligence Agency Voluntary 
     Separation Pay Act (50 U.S.C. 403-4 note) is amended--
       (1) in subsection (f), by striking ``September 30, 2003'' 
     and inserting ``September 30, 2005''; and
       (2) in subsection (i), by striking ``or 2003'' and 
     inserting ``2003, 2004, or 2005''.

     SEC. 402. IMPLEMENTATION OF COMPENSATION REFORM PLAN.

       (a) Delay on Implementation on Compensation Reform Plan.--
     (1) The Director of Central Intelligence may not implement 
     before the implementation date (described in paragraph (2)) a 
     plan for the compensation of employees of the Central 
     Intelligence Agency that differs from the plan in effect on 
     October 1, 2002.
       (2) The implementation date referred to in paragraph (1) is 
     February 1, 2004, or the date on which the Director submits 
     to the congressional intelligence committees a report on the 
     pilot project conducted under subsection (b), whichever is 
     later.
       (3) It is the sense of Congress that an employee 
     performance evaluation mechanism with evaluation training for 
     managers and employees of the Central Intelligence Agency 
     should be phased in before the implementation of any new 
     compensation plan.
       (b) Pilot Project.--(1) The Director shall conduct a pilot 
     project to test the efficacy and fairness of a plan for the 
     compensation of employees of the Central Intelligence Agency 
     that differs from the plan in effect on October 1, 2002, 
     within any one component of the Central Intelligence Agency 
     selected by the Director, other than a component for which a 
     pilot project on employee compensation has been previously 
     conducted.
       (2) The pilot project under paragraph (1) shall be 
     conducted for a period of at least 1 year.
       (3) Not later than the date that is 45 days after the 
     completion of the pilot project under paragraph (1), the 
     Director shall submit to the congressional intelligence 
     committees a report that contains an evaluation of the 
     project and such recommendations as the Director considers 
     appropriate for the modification of the plans for the 
     compensation of employees throughout the Agency which are in 
     effect on such date.
       (c) Sense of Congress on Implementation of Compensation 
     Reform Plan for the National Security Agency.--It is the 
     sense of Congress that--
       (1) the Director of the National Security Agency should not 
     implement before February 1, 2004, a plan for the 
     compensation of employees of the National Security Agency 
     that differs from the plan in effect on October 1, 2002; and
       (2) an employee performance evaluation mechanism with 
     evaluation training for managers and employees of the 
     National Security Agency should be phased in before the 
     implementation of any new compensation plan.
       (d) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means the Select Committee on Intelligence of the Senate and 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

     SEC. 501. USE OF FUNDS FOR COUNTERDRUG AND COUNTERTERRORISM 
                   ACTIVITIES FOR COLOMBIA.

       (a) Authority.--Funds designated for intelligence or 
     intelligence-related purposes for assistance to the 
     Government of Colombia for counterdrug activities for fiscal 
     years 2002 and 2003, and any unobligated funds available to 
     any element of the intelligence community for such activities 
     for a prior fiscal year, shall be available to support a 
     unified campaign against narcotics trafficking and against 
     activities by organizations designated as terrorist 
     organizations (such as the Revolutionary Armed Forces of 
     Colombia (FARC), the National Liberation Army (ELN), and the 
     United Self-Defense Forces of Colombia (AUC)), and to take 
     actions to protect human health and welfare in emergency 
     circumstances, including undertaking rescue operations.
       (b) Requirement for Certification.--(1) The authorities 
     provided in subsection (a) shall not be exercised until the 
     Secretary of Defense certifies to the Congress that the 
     provisions of paragraph (2) have been complied with.
       (2) In order to ensure the effectiveness of United States 
     support for such a unified campaign, prior to the exercise of 
     the authority contained in subsection (a), the Secretary of 
     State shall report to the appropriate committees of Congress 
     that the newly elected President of Colombia has--
       (A) committed, in writing, to establish comprehensive 
     policies to combat illicit drug cultivation, manufacturing, 
     and trafficking (particularly with respect to providing 
     economic opportunities that offer viable alternatives to 
     illicit crops) and to restore government authority and 
     respect for human rights in areas under the effective control 
     of paramilitary and guerrilla organizations;
       (B) committed, in writing, to implement significant 
     budgetary and personnel reforms of the Colombian Armed 
     Forces; and
       (C) committed, in writing, to support substantial 
     additional Colombian financial and other resources to 
     implement such policies and reforms, particularly to meet the 
     country's previous commitments under ``Plan Colombia''.

     In this paragraph, the term ``appropriate committees of 
     Congress'' means the Permanent Select Committee on 
     Intelligence and the Committees on Appropriations and Armed 
     Services of the House of Representatives and the Select 
     Committee on Intelligence and the Committees on 
     Appropriations and Armed Services of the Senate.
       (c) Termination of Authority.--The authority provided in 
     subsection (a) shall cease to be effective if the Secretary 
     of Defense has credible evidence that the Colombian Armed 
     Forces are not conducting vigorous operations to restore 
     government authority and respect for human rights in areas 
     under the effective control of paramilitary and guerrilla 
     organizations.
       (d) Application of Certain Provisions of Law.--Sections 
     556, 567, and 568 of Public Law 107-115, section 8093 of the 
     Department of Defense Appropriations Act, 2002, and the 
     numerical limitations on the number of United States military 
     personnel and United States individual civilian contractors 
     in section 3204(b)(1) of Public Law 106-246 shall be 
     applicable to funds made available pursuant to the authority 
     contained in subsection (a).
       (e) Limitation on Participation of United States 
     Personnel.--No United States Armed Forces personnel or United 
     States civilian contractor employed by the United States will 
     participate in any combat operation in connection with 
     assistance made available under this section, except for the 
     purpose of acting in self defense or rescuing any United 
     States citizen to include United States Armed Forces 
     personnel, United States civilian employees, and civilian 
     contractors employed by the United States.

     SEC. 502. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL 
                   RECONNAISSANCE OFFICE.

       (a) In General.--Title I of the National Security Act of 
     1947 (50 U.S.C. 402 et seq.) is amended by inserting after 
     section 105C (50 U.S.C. 403-5c) the following new section:


``protection of operational files of the national reconnaissance office

       ``Sec. 105D. (a) Exemption of Certain Operational Files 
     From Search, Review, Publication, or Disclosure.--(1) The 
     Director of the National Reconnaissance Office, with the 
     coordination of the Director of Central Intelligence, may 
     exempt operational files of the National Reconnaissance 
     Office from the provisions of section 552 of title 5, United 
     States Code, which require publication, disclosure, search, 
     or review in connection therewith.
       ``(2)(A) Subject to subparagraph (B), for the purposes of 
     this section, the term `operational files' means files of the 
     National Reconnaissance Office (hereafter in this section 
     referred to as `NRO') that document the means by which 
     foreign intelligence or counterintelligence is collected 
     through scientific and technical systems.
       ``(B) Files which are the sole repository of disseminated 
     intelligence are not operational files.
       ``(3) Notwithstanding paragraph (1), exempted operational 
     files shall continue to be subject to search and review for 
     information concerning--
       ``(A) United States citizens or aliens lawfully admitted 
     for permanent residence who have requested information on 
     themselves pursuant to the provisions of section 552 or 552a 
     of title 5, United States Code;
       ``(B) any special activity the existence of which is not 
     exempt from disclosure under the provisions of section 552 of 
     title 5, United States Code; or
       ``(C) the specific subject matter of an investigation by 
     any of the following for any impropriety, or violation of 
     law, Executive order, or Presidential directive, in the 
     conduct of an intelligence activity:
       ``(i) The Permanent Select Committee on Intelligence of the 
     House of Representatives.
       ``(ii) The Select Committee on Intelligence of the Senate.
       ``(iii) The Intelligence Oversight Board.
       ``(iv) The Department of Justice.
       ``(v) The Office of General Counsel of NRO.
       ``(vi) The Office of the Director of NRO.
       ``(4)(A) Files that are not exempted under paragraph (1) 
     which contain information derived or disseminated from 
     exempted operational files shall be subject to search and 
     review.
       ``(B) The inclusion of information from exempted 
     operational files in files that are not exempted under 
     paragraph (1) shall not affect the exemption under paragraph 
     (1) of the originating operational files from search, review, 
     publication, or disclosure.
       ``(C) The declassification of some of the information 
     contained in exempted operational files shall not affect the 
     status of the operational file as being exempt from search, 
     review, publication, or disclosure.

[[Page H8771]]

       ``(D) Records from exempted operational files which have 
     been disseminated to and referenced in files that are not 
     exempted under paragraph (1) and which have been returned to 
     exempted operational files for sole retention shall be 
     subject to search and review.
       ``(5) The provisions of paragraph (1) may not be superseded 
     except by a provision of law which is enacted after the date 
     of the enactment of this section, and which specifically 
     cites and repeals or modifies its provisions.
       ``(6)(A) Except as provided in subparagraph (B), whenever 
     any person who has requested agency records under section 552 
     of title 5, United States Code, alleges that NRO has withheld 
     records improperly because of failure to comply with any 
     provision of this section, judicial review shall be available 
     under the terms set forth in section 552(a)(4)(B) of title 5, 
     United States Code.
       ``(B) Judicial review shall not be available in the manner 
     provided for under subparagraph (A) as follows:
       ``(i) In any case in which information specifically 
     authorized under criteria established by an Executive order 
     to be kept secret in the interests of national defense or 
     foreign relations is filed with, or produced for, the court 
     by NRO, such information shall be examined ex parte, in 
     camera by the court.
       ``(ii) The court shall, to the fullest extent practicable, 
     determine the issues of fact based on sworn written 
     submissions of the parties.
       ``(iii) When a complainant alleges that requested records 
     are improperly withheld because of improper placement solely 
     in exempted operational files, the complainant shall support 
     such allegation with a sworn written submission based upon 
     personal knowledge or otherwise admissible evidence.
       ``(iv)(I) When a complainant alleges that requested records 
     were improperly withheld because of improper exemption of 
     operational files, NRO shall meet its burden under section 
     552(a)(4)(B) of title 5, United States Code, by demonstrating 
     to the court by sworn written submission that exempted 
     operational files likely to contain responsible records 
     currently perform the functions set forth in paragraph 
     (2).
       ``(II) The court may not order NRO to review the content of 
     any exempted operational file or files in order to make the 
     demonstration required under subclause (I), unless the 
     complainant disputes NRO's showing with a sworn written 
     submission based on personal knowledge or otherwise 
     admissible evidence.
       ``(v) In proceedings under clauses (iii) and (iv), the 
     parties may not obtain discovery pursuant to rules 26 through 
     36 of the Federal Rules of Civil Procedure, except that 
     requests for admissions may be made pursuant to rules 26 and 
     36.
       ``(vi) If the court finds under this paragraph that NRO has 
     improperly withheld requested records because of failure to 
     comply with any provision of this subsection, the court shall 
     order NRO to search and review the appropriate exempted 
     operational file or files for the requested records and make 
     such records, or portions thereof, available in accordance 
     with the provisions of section 552 of title 5, United States 
     Code, and such order shall be the exclusive remedy for 
     failure to comply with this subsection.
       ``(vii) If at any time following the filing of a complaint 
     pursuant to this paragraph NRO agrees to search the 
     appropriate exempted operational file or files for the 
     requested records, the court shall dismiss the claim based 
     upon such complaint.
       ``(viii) Any information filed with, or produced for the 
     court pursuant to clauses (i) and (iv) shall be coordinated 
     with the Director of Central Intelligence prior to submission 
     to the court.
       ``(b) Decennial Review of Exempted Operational Files.--(1) 
     Not less than once every 10 years, the Director of the 
     National Reconnaissance Office and the Director of Central 
     Intelligence shall review the exemptions in force under 
     subsection (a)(1) to determine whether such exemptions may be 
     removed from the category of exempted files or any portion 
     thereof. The Director of Central Intelligence must approve 
     any determination to remove such exemptions.
       ``(2) The review required by paragraph (1) shall include 
     consideration of the historical value or other public 
     interest in the subject matter of the particular category of 
     files or portions thereof and the potential for declassifying 
     a significant part of the information contained therein.
       ``(3) A complainant that alleges that NRO has improperly 
     withheld records because of failure to comply with this 
     subsection may seek judicial review in the district court of 
     the United States of the district in which any of the parties 
     reside, or in the District of Columbia. In such a proceeding, 
     the court's review shall be limited to determining the 
     following:
       ``(A) Whether NRO has conducted the review required by 
     paragraph (1) before the expiration of the 10-year period 
     beginning on the date of the enactment of this section or 
     before the expiration of the 10-year period beginning on the 
     date of the most recent review.
       ``(B) Whether NRO, in fact, considered the criteria set 
     forth in paragraph (2) in conducting the required review.''.
       (b) Clerical Amendment.--The table of sections for that Act 
     is amended by inserting after the item relating to section 
     105C the following new item:

``Sec. 105D. Protection of operational files of the National 
              Reconnaissance Office.''.

     SEC. 503. ELIGIBILITY OF EMPLOYEES IN INTELLIGENCE SENIOR 
                   LEVEL POSITIONS FOR PRESIDENTIAL RANK AWARDS.

       Section 1607 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c) Award of Rank to Employees in Intelligence Senior 
     Level Positions.--The President, based on the recommendations 
     of the Secretary of Defense, may award a rank referred to in 
     section 4507a of title 5 to employees in Intelligence Senior 
     Level positions designated under subsection (a). The award of 
     such rank shall be made in a manner consistent with the 
     provisions of that section.''.

  TITLE VI--NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED 
                                 STATES

     SEC. 601. ESTABLISHMENT OF COMMISSION.

       There is established in the legislative branch the National 
     Commission on Terrorist Attacks Upon the United States (in 
     this title referred to as the ``Commission'').

     SEC. 602. PURPOSES.

       The purposes of the Commission are to--
       (1) examine and report upon the facts and causes relating 
     to the terrorist attacks of September 11, 2001, occurring at 
     the World Trade Center in New York, New York, in Somerset 
     County, Pennsylvania, and at the Pentagon in Virginia;
       (2) ascertain, evaluate, and report on the evidence 
     developed by all relevant governmental agencies regarding the 
     facts and circumstances surrounding the attacks;
       (3) build upon the investigations of other entities, and 
     avoid unnecessary duplication, by reviewing the findings, 
     conclusions, and recommendations of--
       (A) the Joint Inquiry of the Select Committee on 
     Intelligence of the Senate and the Permanent Select Committee 
     on Intelligence of the House of Representatives regarding the 
     terrorist attacks of September 11, 2001, (hereinafter in this 
     title referred to as the ``Joint Inquiry''); and
       (B) other executive branch, congressional, or independent 
     commission investigations into the terrorist attacks of 
     September 11, 2001, other terrorist attacks, and terrorism 
     generally;
       (4) make a full and complete accounting of the 
     circumstances surrounding the attacks, and the extent of the 
     United States' preparedness for, and immediate response to, 
     the attacks; and
       (5) investigate and report to the President and Congress on 
     its findings, conclusions, and recommendations for corrective 
     measures that can be taken to prevent acts of terrorism.

     SEC. 603. COMPOSITION OF COMMISSION.

       (a) Members.--The Commission shall be composed of 10 
     members, of whom--
       (1) 1 member shall be appointed by the President, who shall 
     serve as chairman of the Commission;
       (2) 1 member shall be appointed by the leader of the Senate 
     (majority or minority leader, as the case may be) of the 
     Democratic Party, in consultation with the leader of the 
     House of Representatives (majority or minority leader, as the 
     case may be) of the Democratic Party, who shall serve as vice 
     chairman of the Commission;
       (3) 2 members shall be appointed by the senior member of 
     the Senate leadership of the Democratic Party;
       (4) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives of the 
     Republican Party;
       (5) 2 members shall be appointed by the senior member of 
     the Senate leadership of the Republican Party; and
       (6) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives of the 
     Democratic Party.
       (b) Qualifications; Initial Meeting.--
       (1) Political party affiliation.--Not more than 5 members 
     of the Commission shall be from the same political party.
       (2) Nongovernmental appointees.--An individual appointed to 
     the Commission may not be an officer or employee of the 
     Federal Government or any State or local government.
       (3) Other qualifications.--It is the sense of Congress that 
     individuals appointed to the Commission should be prominent 
     United States citizens, with national recognition and 
     significant depth of experience in such professions as 
     governmental service, law enforcement, the armed services, 
     law, public administration, intelligence gathering, commerce 
     (including aviation matters), and foreign affairs.
       (4) Deadline for appointment.--All members of the 
     Commission shall be appointed on or before December 15, 2002.
       (5) Initial meeting.--The Commission shall meet and begin 
     the operations of the Commission as soon as practicable.
       (c) Quorum; Vacancies.--After its initial meeting, the 
     Commission shall meet upon the call of the chairman or a 
     majority of its members. Six members of the Commission shall 
     constitute a quorum. Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner in 
     which the original appointment was made.

     SEC. 604. FUNCTIONS OF COMMISSION.

       (a) In General.--The functions of the Commission are to--
       (1) conduct an investigation that--
       (A) investigates relevant facts and circumstances relating 
     to the terrorist attacks of September 11, 2001, including any 
     relevant legislation, Executive Order, regulation, plan, 
     policy, practice, or procedure; and
       (B) may include relevant facts and circumstances relating 
     to--
       (i) intelligence agencies;
       (ii) law enforcement agencies;
       (iii) diplomacy;
       (iv) immigration, nonimmigrant visas, and border control;
       (v) the flow of assets to terrorist organizations;
       (vi) commercial aviation;
       (vii) the role of congressional oversight and resource 
     allocation; and
       (viii) other areas of the public and private sectors 
     determined relevant by the Commission for its inquiry;

[[Page H8772]]

       (2) identify, review, and evaluate the lessons learned from 
     the terrorist attacks of September 11, 2001, regarding the 
     structure, coordination, management policies, and procedures 
     of the Federal Government, and, if appropriate, State and 
     local governments and nongovernmental entities, relative to 
     detecting, preventing, and responding to such terrorist 
     attacks; and
       (3) submit to the President and Congress such reports as 
     are required by this title containing such findings, 
     conclusions, and recommendations as the Commission shall 
     determine, including proposing organization, coordination, 
     planning, management arrangements, procedures, rules, and 
     regulations.
       (b) Relationship to Intelligence Committees' Inquiry.--When 
     investigating facts and circumstances relating to the 
     intelligence community, the Commission shall--
       (1) first review the information compiled by, and the 
     findings, conclusions, and recommendations of, the Joint 
     Inquiry; and
       (2) after that review pursue any appropriate area of 
     inquiry if the Commission determines that--
       (A) the Joint Inquiry had not investigated that area;
       (B) the Joint Inquiry's investigation of that area had not 
     been complete; or
       (C) new information not reviewed by the Joint Inquiry had 
     become available with respect to that area.

     SEC. 605. POWERS OF COMMISSION.

       (a) In General.--
       (1) Hearings and evidence.--The Commission or, on the 
     authority of the Commission, any subcommittee or member 
     thereof, may, for the purpose of carrying out this title--
       (A) hold such hearings and sit and act at such times and 
     places, take such testimony, receive such evidence, 
     administer such oaths; and
       (B) subject to paragraph (2)(A), require, by subpoena or 
     otherwise, the attendance and testimony of such witnesses and 
     the production of such books, records, correspondence, 
     memoranda, papers, and documents, as the Commission or such 
     designated subcommittee or designated member may determine 
     advisable.
       (2) Subpoenas.--
       (A) Issuance.--
       (i) In general.--A subpoena may be issued under this 
     subsection only--

       (I) by the agreement of the chairman and the vice chairman; 
     or
       (II) by the affirmative vote of 6 members of the 
     Commission.

       (ii) Signature.--Subject to clause (i), subpoenas issued 
     under this subsection may be issued under the signature of 
     the chairman or any member designated by a majority of the 
     Commission, and may be served by any person designated by the 
     chairman or by a member designated by a majority of the 
     Commission.
       (B) Enforcement.--
       (i) In general.--In the case of contumacy or failure to 
     obey a subpoena issued under subsection (a), the United 
     States district court for the judicial district in which the 
     subpoenaed person resides, is served, or may be found, or 
     where the subpoena is returnable, may issue an order 
     requiring such person to appear at any designated place to 
     testify or to produce documentary or other evidence. Any 
     failure to obey the order of the court may be punished by the 
     court as a contempt of that court.
       (ii) Additional enforcement.--In the case of any failure of 
     any witness to comply with any subpoena or to testify when 
     summoned under authority of this section, the Commission may, 
     by majority vote, certify a statement of fact constituting 
     such failure to the appropriate United States attorney, who 
     may bring the matter before the grand jury for its action, 
     under the same statutory authority and procedures as if the 
     United States attorney had received a certification under 
     sections 102 through 104 of the Revised Statutes of the 
     United States (2 U.S.C. 192 through 194).
       (b) Contracting.--The Commission may, to such extent and in 
     such amounts as are provided in appropriation Acts, enter 
     into contracts to enable the Commission to discharge its 
     duties under this title.
       (c) Information From Federal Agencies.--
       (1) In general.--The Commission is authorized to secure 
     directly from any executive department, bureau, agency, 
     board, commission, office, independent establishment, or 
     instrumentality of the Government, information, suggestions, 
     estimates, and statistics for the purposes of this title. 
     Each department, bureau, agency, board, commission, office, 
     independent establishment, or instrumentality shall, to the 
     extent authorized by law, furnish such information, 
     suggestions, estimates, and statistics directly to the 
     Commission, upon request made by the chairman, the chairman 
     of any subcommittee created by a majority of the Commission, 
     or any member designated by a majority of the Commission.
       (2) Receipt, handling, storage, and dissemination.--
     Information shall only be received, handled, stored, and 
     disseminated by members of the Commission and its staff 
     consistent with all applicable statutes, regulations, and 
     Executive Orders.
       (d) Assistance From Federal Agencies.--
       (1) General services administration.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis administrative support and other services 
     for the performance of the Commission's functions.
       (2) Other departments and agencies.--In addition to the 
     assistance prescribed in paragraph (1), departments and 
     agencies of the United States may provide to the Commission 
     such services, funds, facilities, staff, and other support 
     services as they may determine advisable and as may be 
     authorized by law.
       (e) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (f) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as departments and agencies of the United States.

     SEC. 606. NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

       (a) In General.--The Federal Advisory Committee Act (5 
     U.S.C. App.) shall not apply to the Commission.
       (b) Public Meetings and Release of Public Versions of 
     Reports.--The Commission shall--
       (1) hold public hearings and meetings to the extent 
     appropriate; and
       (2) release public versions of the reports required under 
     section 610 (a) and (b).
       (c) Public Hearings.--Any public hearings of the Commission 
     shall be conducted in a manner consistent with the protection 
     of information provided to or developed for or by the 
     Commission as required by any applicable statute, regulation, 
     or Executive Order.

     SEC. 607. STAFF OF COMMISSION.

       (a) In General.--
       (1) Appointment and compensation.--The chairman, in 
     consultation with vice chairman, in accordance with rules 
     agreed upon by the Commission, may appoint and fix the 
     compensation of a staff director and such other personnel as 
     may be necessary to enable the Commission to carry out its 
     functions, without regard to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service, and without regard to the provisions of chapter 51 
     and subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates, except that no 
     rate of pay fixed under this subsection may exceed the 
     equivalent of that payable for a position at level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       (2) Personnel as federal employees.--
       (A) In general.--The executive director and any personnel 
     of the Commission who are employees shall be employees under 
     section 2105 of title 5, United States Code, for purposes of 
     chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.
       (B) Members of commission.--Subparagraph (A) shall not be 
     construed to apply to members of the Commission.
       (b) Detailees.--Any Federal Government employee may be 
     detailed to the Commission without reimbursement from the 
     Commission, and such detailee shall retain the rights, 
     status, and privileges of his or her regular employment 
     without interruption.
       (c) Consultant Services.--The Commission is authorized to 
     procure the services of experts and consultants in accordance 
     with section 3109 of title 5, United States Code, but at 
     rates not to exceed the daily rate paid a person occupying a 
     position at level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.

     SEC. 608. COMPENSATION AND TRAVEL EXPENSES.

       (a) Compensation.--Each member of the Commission may be 
     compensated at not to exceed the daily equivalent of the 
     annual rate of basic pay in effect for a position at level IV 
     of the Executive Schedule under section 5315 of title 5, 
     United States Code, for each day during which that member is 
     engaged in the actual performance of the duties of the 
     Commission.
       (b) Travel Expenses.--While away from their homes or 
     regular places of business in the performance of services for 
     the Commission, members of the Commission shall be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     in the same manner as persons employed intermittently in the 
     Government service are allowed expenses under section 
     5703(b) of title 5, United States Code.

     SEC. 609. SECURITY CLEARANCES FOR COMMISSION MEMBERS AND 
                   STAFF.

       The appropriate Federal agencies or departments shall 
     cooperate with the Commission in expeditiously providing to 
     the Commission members and staff appropriate security 
     clearances to the extent possible pursuant to existing 
     procedures and requirements, except that no person shall be 
     provided with access to classified information under this 
     title without the appropriate security clearances.

     SEC. 610. REPORTS OF COMMISSION; TERMINATION.

       (a) Interim Reports.--The Commission may submit to the 
     President and Congress interim reports containing such 
     findings, conclusions, and recommendations for corrective 
     measures as have been agreed to by a majority of Commission 
     members.
       (b) Final Report.--Not later than 18 months after the date 
     of the enactment of this Act, the Commission shall submit to 
     the President and Congress a final report containing such 
     findings, conclusions, and recommendations for corrective 
     measures as have been agreed to by a majority of Commission 
     members.
       (c) Termination.--
       (1) In general.--The Commission, and all the authorities of 
     this title, shall terminate 60 days after the date on which 
     the final report is submitted under subsection (b).
       (2) Administrative activities before termination.--The 
     Commission may use the 60-day period referred to in paragraph 
     (1) for the purpose of concluding its activities, including 
     providing testimony to committees of Congress concerning its 
     reports and disseminating the final report.

     SEC. 611. FUNDING.

       (a) Transfer From the National Foreign Intelligence 
     Program.--Of the amounts authorized to be appropriated by 
     this Act and made available in public law 107-248 (Department 
     of Defense Appropriations Act, 2003) for the National Foreign 
     Intelligence Program, not to exceed $3,000,000 shall be 
     available for transfer to the Commission for purposes of the 
     activities of the Commission under this title.

[[Page H8773]]

       (b) Duration of Availability.--Amounts made available to 
     the Commission under subsection (a) shall remain available 
     until the termination of the Commission.

                     TITLE VII--INFORMATION SHARING

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Homeland Security 
     Information Sharing Act''.

     SEC. 702. FINDINGS AND SENSE OF CONGRESS.

       (a) Findings.--The Congress finds the following:
       (1) The Federal Government is required by the Constitution 
     to provide for the common defense, which includes defense 
     against terrorist attacks.
       (2) The Federal Government relies on State and local 
     personnel to protect against terrorist attacks.
       (3) The Federal Government collects, creates, manages, and 
     protects classified and sensitive but unclassified 
     information to enhance homeland security.
       (4) Some homeland security information is needed by the 
     State and local personnel to prevent and prepare for 
     terrorist attacks.
       (5) The needs of State and local personnel to have access 
     to relevant homeland security information to combat terrorism 
     must be reconciled with the need to preserve the protected 
     status of such information and to protect the sources and 
     methods used to acquire such information.
       (6) Granting security clearances to certain State and local 
     personnel is one way to facilitate the sharing of information 
     regarding specific terrorist threats among Federal, State, 
     and local levels of government.
       (7) Methods exist to declassify, redact, or otherwise adapt 
     classified information so it may be shared with State and 
     local personnel without the need for granting additional 
     security clearances.
       (8) State and local personnel have capabilities and 
     opportunities to gather information on suspicious activities 
     and terrorist threats not possessed by Federal agencies.
       (9) The Federal Government and State and local governments 
     and agencies in other jurisdictions may benefit from such 
     information.
       (10) Federal, State, and local governments and 
     intelligence, law enforcement, and other emergency 
     preparation and response agencies must act in partnership to 
     maximize the benefits of information gathering and analysis 
     to prevent and respond to terrorist attacks.
       (11) Information systems, including the National Law 
     Enforcement Telecommunications System and the Terrorist 
     Threat Warning System, have been established for rapid 
     sharing of classified and sensitive but unclassified 
     information among Federal, State, and local entities.
       (12) Increased efforts to share homeland security 
     information should avoid duplicating existing information 
     systems.
       (b) Sense of Congress.--It is the sense of Congress that 
     Federal, State, and local entities should share homeland 
     security information to the maximum extent practicable, with 
     special emphasis on hard-to-reach urban and rural 
     communities.

     SEC. 703. FACILITATING HOMELAND SECURITY INFORMATION SHARING 
                   PROCEDURES.

       (a) Procedures for Determining Extent of Sharing of 
     Homeland Security Information.--(1) The President shall 
     prescribe and implement procedures under which relevant 
     Federal agencies determine--
       (A) whether, how, and to what extent homeland security 
     information may be shared with appropriate State and local 
     personnel, and with which such personnel it may be shared;
       (B) how to identify and safeguard homeland security 
     information that is sensitive but unclassified; and
       (C) to the extent such information is in classified form, 
     whether, how, and to what extent to remove classified 
     information, as appropriate, and with which such personnel it 
     may be shared after such information is removed.
       (2) The President shall ensure that such procedures apply 
     to all agencies of the Federal Government.
       (3) Such procedures shall not change the substantive 
     requirements for the classification and safeguarding of 
     classified information.
       (4) Such procedures shall not change the requirements and 
     authorities to protect sources and methods.
       (b) Procedures for Sharing of Homeland Security 
     Information.--(1) Under procedures prescribed by the 
     President, all appropriate agencies, including the 
     intelligence community, shall, through information sharing 
     systems, share homeland security information with appropriate 
     State and local personnel to the extent such information may 
     be shared, as determined in accordance with subsection (a), 
     together with assessments of the credibility of such 
     information.
       (2) Each information sharing system through which 
     information is shared under paragraph (1) shall--
       (A) have the capability to transmit unclassified or 
     classified information, though the procedures and recipients 
     for each capability may differ;
       (B) have the capability to restrict delivery of information 
     to specified subgroups by geographic location, type of 
     organization, position of a recipient within an organization, 
     or a recipient's need to know such information;
       (C) be configured to allow the efficient and effective 
     sharing of information; and
       (D) be accessible to appropriate State and local personnel.
       (3) The procedures prescribed under paragraph (1) shall 
     establish conditions on the use of information shared under 
     paragraph (1)--
       (A) to limit the redissemination of such information to 
     ensure that such information is not used for an unauthorized 
     purpose;
       (B) to ensure the security and confidentiality of such 
     information;
       (C) to protect the constitutional and statutory rights of 
     any individuals who are subjects of such information; and
       (D) to provide data integrity through the timely removal 
     and destruction of obsolete or erroneous names and 
     information.
       (4) The procedures prescribed under paragraph (1) shall 
     ensure, to the greatest extent practicable, that the 
     information sharing system through which information is 
     shared under such paragraph include existing information 
     sharing systems, including, but not limited to, the National 
     Law Enforcement Telecommunications System, the Regional 
     Information Sharing System, and the Terrorist Threat Warning 
     System of the Federal Bureau of Investigation.
       (5) Each appropriate Federal agency, as determined by the 
     President, shall have access to each information sharing 
     system through which information is shared under paragraph 
     (1), and shall therefore have access to all information, as 
     appropriate, shared under such paragraph.
       (6) The procedures prescribed under paragraph (1) shall 
     ensure that appropriate State and local personnel are 
     authorized to use such information sharing systems--
       (A) to access information shared with such personnel; and
       (B) to share, with others who have access to such 
     information sharing systems, the homeland security 
     information of their own jurisdictions, which shall be marked 
     appropriately as pertaining to potential terrorist activity.
       (7) Under procedures prescribed jointly by the Director of 
     Central Intelligence and the Attorney General, each 
     appropriate Federal agency, as determined by the President, 
     shall review and assess the information shared under 
     paragraph (6) and integrate such information with existing 
     intelligence.
       (c) Sharing of Classified Information and Sensitive but 
     Unclassified Information With State and Local Personnel.--(1) 
     The President shall prescribe procedures under which Federal 
     agencies may, to the extent the President considers 
     necessary, share with appropriate State and local personnel 
     homeland security information that remains classified or 
     otherwise protected after the determinations prescribed under 
     the procedures set forth in subsection (a).
       (2) It is the sense of Congress that such procedures may 
     include one or more of the following means:
       (A) Carrying out security clearance investigations with 
     respect to appropriate State and local personnel.
       (B) With respect to information that is sensitive but 
     unclassified, entering into nondisclosure agreements with 
     appropriate State and local personnel.
       (C) Increased use of information-sharing partnerships that 
     include appropriate State and local personnel, such as the 
     Joint Terrorism Task Forces of the Federal Bureau of 
     Investigation, the Anti-Terrorism Task Forces of the 
     Department of Justice, and regional Terrorism Early Warning 
     Groups.
       (d) Responsible Officials.--For each affected Federal 
     agency, the head of such agency shall designate an official 
     to administer this title with respect to such agency.
       (e) Federal Control of Information.--Under procedures 
     prescribed under this section, information obtained by a 
     State or local government from a Federal agency under this 
     section shall remain under the control of the Federal agency, 
     and a State or local law authorizing or requiring such a 
     government to disclose information shall not apply to such 
     information.
       (f) Definitions.--As used in this section:
       (1) The term ``homeland security information'' means any 
     information (other than information that includes 
     individually identifiable information collected solely for 
     statistical purposes) possessed by a Federal, State, or local 
     agency that--
       (A) relates to the threat of terrorist activity;
       (B) relates to the ability to prevent, interdict, or 
     disrupt terrorist activity;
       (C) would improve the identification or investigation of a 
     suspected terrorist or terrorist organization; or
       (D) would improve the response to a terrorist act.
       (2) The term ``intelligence community'' has the meaning 
     given such term in section 3(4) of the National Security Act 
     of 1947 (50 U.S.C. 401a(4)).
       (3) The term ``State and local personnel'' means any of the 
     following persons involved in prevention, preparation, or 
     response for terrorist attacks:
       (A) State Governors, mayors, and other locally elected 
     officials.
       (B) State and local law enforcement personnel and 
     firefighters.
       (C) Public health and medical professionals.
       (D) Regional, State, and local emergency management agency 
     personnel, including State adjutant generals.
       (E) Other appropriate emergency response agency personnel.
       (F) Employees of private sector entities that affect 
     critical infrastructure, cyber, economic, or public health 
     security, as designated by the Federal Government in 
     procedures developed pursuant to this section.
       (4) The term ``State'' includes the District of Columbia 
     and any commonwealth, territory, or possession of the United 
     States.

     SEC. 704. REPORT.

       (a) Report Required.--Not later than 12 months after the 
     date of the enactment of this Act, the President shall submit 
     to the congressional committees specified in subsection (b) a 
     report on the implementation of section 703. The report shall 
     include any recommendations for additional measures or 
     appropriation requests, beyond the requirements of section 
     703, to increase the effectiveness of sharing of information 
     between and among Federal, State, and local entities.

[[Page H8774]]

       (b) Specified Congressional Committees.--The congressional 
     committees referred to in subsection (a) are the following 
     committees:
       (1) The Permanent Select Committee on Intelligence and the 
     Committee on the Judiciary of the House of Representatives.
       (2) The Select Committee on Intelligence and the Committee 
     on the Judiciary of the Senate.

     SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated such sums as may be 
     necessary to carry out section 703.

     SEC. 706. COORDINATION PROVISION.

       (a) Prior Enactment.--If this Act is enacted before the 
     Homeland Security Act of 2002, then upon the date of the 
     enactment of the Homeland Security Act of 2002, this title 
     shall be deemed for all purposes not to have taken effect and 
     shall cease to be in effect.
       (b) Subsequent Enactment.--If the Homeland Security Act of 
     2002 is enacted before this Act, then this title shall not 
     take effect.

                   TITLE VIII--REPORTING REQUIREMENTS

                      Subtitle A--Overdue Reports

     SEC. 801. DEADLINE FOR SUBMITTAL OF VARIOUS OVERDUE REPORTS.

       (a) Deadline.--The reports described in subsection (c) 
     shall be submitted to Congress not later than 180 days after 
     the date of the enactment of this Act.
       (b) Noncompliance.--(1) If all the reports described in 
     subsection (c) are not submitted to Congress by the date 
     specified in subsection (a), amounts available to be 
     obligated or expended after that date to carry out the 
     functions or duties of the Office of the Director of Central 
     Intelligence shall be reduced by \1/3\.
       (2) The reduction applicable under paragraph (1) shall not 
     apply if the Director of Central Intelligence certifies to 
     Congress by the date referred to in subsection (a) that all 
     reports referred to in subsection (c) have been submitted to 
     Congress.
       (c) Reports Described.--The reports referred to in 
     subsection (a) are reports mandated by law for which the 
     Director of Central Intelligence has sole or primary 
     responsibility to prepare, coordinate, and submit to Congress 
     which, as of the date of the enactment of this Act, have not 
     been submitted to Congress.

      Subtitle B--Submittal of Reports to Intelligence Committees

     SEC. 811. DATES FOR SUBMITTAL OF VARIOUS ANNUAL AND 
                   SEMIANNUAL REPORTS TO THE CONGRESSIONAL 
                   INTELLIGENCE COMMITTEES.

       (a) In General.--(1) Title V of the National Security Act 
     of 1947 (50 U.S.C. 413 et seq.), as amended by section 311 of 
     this Act, is further amended by adding at the end the 
     following new section:


 ``dates for submittal of various annual and semiannual reports to the 
                 congressional intelligence committees

       ``Sec. 507. (a) Annual Reports.--(1) The date for the 
     submittal to the congressional intelligence committees of the 
     following annual reports shall be the date each year provided 
     in subsection (c)(1)(A):
       ``(A) The annual evaluation of the performance and 
     responsiveness of certain elements of the intelligence 
     community required by section 105(d).
       ``(B) The annual report on intelligence required by section 
     109.
       ``(C) The annual report on intelligence community 
     cooperation with Federal law enforcement agencies required by 
     section 114(a)(2).
       ``(D) The annual report on the protection of the identities 
     of covert agents required by section 603.
       ``(E) The annual report of the Inspectors Generals of the 
     intelligence community on proposed resources and activities 
     of their offices required by section 8H(g) of the Inspector 
     General Act of 1978.
       ``(F) The annual report on commercial activities as 
     security for intelligence collection required by section 
     437(c) of title 10, United States Code.
       ``(G) The annual report on expenditures for postemployment 
     assistance for terminated intelligence employees required by 
     section 1611(e)(2) of title 10, United States Code.
       ``(H) The annual update on foreign industrial espionage 
     required by section 809(b) of the Counterintelligence and 
     Security Enhancements Act of 1994 (title VIII of Public Law 
     103-359; 50 U.S.C. App. 2170b(b)).
       ``(I) The annual report on coordination of 
     counterintelligence matters with the Federal Bureau of 
     Investigation required by section 811(c)(6) of the 
     Counterintelligence and Security Enhancements Act of 1994 (50 
     U.S.C. 402a(c)(6)).
       ``(J) The annual report on foreign companies involved in 
     the proliferation of weapons of mass destruction that raise 
     funds in the United States capital markets required by 
     section 827 of the Intelligence Authorization Act for Fiscal 
     Year 2003.
       ``(K) The annual report on certifications for immunity in 
     interdiction of aircraft engaged in illicit drug trafficking 
     required by section 1012(c)(2) of the National Defense 
     Authorization Act for Fiscal Year 1995 (22 U.S.C. 2291-
     4(c)(2)).
       ``(L) The annual report on exceptions to consumer 
     disclosure requirements for national security investigations 
     under section 604(b)(4)(E) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681b(b)(4)(E)).
       ``(M) The annual report on activities under the David L. 
     Boren National Security Education Act of 1991 (title VIII of 
     Public Law 102-183; 50 U.S.C. 1901 et seq.) required by 
     section 806(a) of that Act (50 U.S.C. 1906(a)).
       ``(N) The annual report on hiring and retention of minority 
     employees in the intelligence community required by section 
     114(c).
       ``(2) The date for the submittal to the congressional 
     intelligence committees of the following annual reports shall 
     be the date each year provided in subsection (c)(1)(B):
       ``(A) The annual report on the safety and security of 
     Russian nuclear facilities and nuclear military forces 
     required by section 114(b).
       ``(B) The annual report on the threat of attack on the 
     United States from weapons of mass destruction required by 
     section 114(d).
       ``(C) The annual report on covert leases required by 
     section 114(e).
       ``(D) The annual report on improvements of the financial 
     statements of the intelligence community for auditing 
     purposes required by section 114A.
       ``(E) The annual report on activities of personnel of the 
     Federal Bureau of Investigation outside the United States 
     required by section 540C(c)(2) of title 28, United States 
     Code.
       ``(F) The annual report on intelligence activities of the 
     People's Republic of China required by section 308(c) of the 
     Intelligence Authorization Act for Fiscal Year 1998 (Public 
     Law 105-107; 50 U.S.C. 402a note).
       ``(G) The annual report on counterdrug intelligence matters 
     required by section 826 of the Intelligence Authorization Act 
     for Fiscal Year 2003.
       ``(b) Semiannual Reports.--The dates for the submittal to 
     the congressional intelligence committees of the 
     following semiannual reports shall be the dates each year 
     provided in subsection (c)(2):
       ``(1) The periodic reports on intelligence provided to the 
     United Nations required by section 112(b).
       ``(2) The semiannual reports on the Office of the Inspector 
     General of the Central Intelligence Agency required by 
     section 17(d)(1) of the Central Intelligence Agency Act of 
     1949 (50 U.S.C. 403q(d)(1)).
       ``(3) The semiannual reports on decisions not to prosecute 
     certain violations of law under the Classified Information 
     Procedures Act (18 U.S.C. App.) as required by section 13 of 
     that Act.
       ``(4) The semiannual reports on the acquisition of 
     technology relating to weapons of mass destruction and 
     advanced conventional munitions required by section 721(b) of 
     the Combatting Proliferation of Weapons of Mass Destruction 
     Act of 1996 (title VII of Public Law 104-293; 50 U.S.C. 
     2366(b)).
       ``(5) The semiannual reports on the activities of the 
     Diplomatic Telecommunications Service Program Office (DTS-PO) 
     required by section 322(a)(6)(D)(ii) of the Intelligence 
     Authorization Act for Fiscal Year 2001 (22 U.S.C. 
     7302(a)(6)(D)(ii)).
       ``(6) The semiannual reports on the disclosure of 
     information and consumer reports to the Federal Bureau of 
     Investigation for counterintelligence purposes required by 
     section 624(h)(2) of the Fair Credit Reporting Act (15 U.S.C. 
     1681u(h)(2)).
       ``(7) The semiannual provision of information on requests 
     for financial information for foreign counterintelligence 
     purposes required by section 1114(a)(5)(C) of the Right to 
     Financial Privacy Act of 1978 (12 U.S.C. 3414(a)(5)(C)).
       ``(8) The semiannual report on financial intelligence on 
     terrorist assets required by section 118.
       ``(c) Submittal Dates for Reports.--(1)(A) Except as 
     provided in subsection (d), each annual report listed in 
     subsection (a)(1) shall be submitted not later than February 
     1.
       ``(B) Except as provided in subsection (d), each annual 
     report listed in subsection (a)(2) shall be submitted not 
     later than December 1.
       ``(2) Except as provided in subsection (d), each semiannual 
     report listed in subsection (b) shall be submitted not later 
     than February 1 and August 1.
       ``(d) Postponement of Submittal.--(1) Subject to paragraph 
     (3), the date for the submittal of--
       ``(A) an annual report listed in subsection (a)(1) may be 
     postponed until March 1;
       ``(B) an annual report listed in subsection (a)(2) may be 
     postponed until January 1; and
       ``(C) a semiannual report listed in subsection (b) may be 
     postponed until March 1 or September 1, as the case may be,
     if the official required to submit such report submits to the 
     congressional intelligence committees a written notification 
     of such postponement.
       ``(2)(A) Notwithstanding any other provision of law and 
     subject to paragraph (3), the date for the submittal to the 
     congressional intelligence committees of any report described 
     in subparagraph (B) may be postponed by not more than 30 days 
     from the date otherwise specified in the provision of law for 
     the submittal of such report if the official required to 
     submit such report submits to the congressional intelligence 
     committees a written notification of such postponement.
       ``(B) A report described in this subparagraph is any report 
     on intelligence or intelligence-related activities of the 
     United States Government that is submitted under a provision 
     of law requiring the submittal of only a single report.
       ``(3)(A) The date for the submittal of a report whose 
     submittal is postponed under paragraph (1) or (2) may be 
     postponed beyond the time provided for the submittal of such 
     report under such paragraph if the official required to 
     submit such report submits to the congressional intelligence 
     committees a written certification that preparation and 
     submittal of such report at such time will impede the work of 
     officers or employees of the intelligence community in a 
     manner that will be detrimental to the national security of 
     the United States.
       ``(B) A certification with respect to a report under 
     subparagraph (A) shall include a proposed submittal date for 
     such report, and such report shall be submitted not later 
     than that date.''.
       (2) The table of sections for the National Security Act of 
     1947, as amended by section 311 of this Act, is further 
     amended by inserting after the item relating to section 506 
     the following new item:


[[Page H8775]]


``Sec. 507. Dates for submittal of various annual and semiannual 
              reports to the congressional intelligence committees.''.

       (b) Conforming Amendments to Existing Reporting 
     Requirements.--
       (1) National security act of 1947.--(A) Subsection (d) of 
     section 105 of the National Security Act of 1947 (50 U.S.C. 
     403-5) is amended to read as follows:
       ``(d) Annual Evaluation of Performance and Responsiveness 
     of Certain Elements of Intelligence Community.--(1) Not later 
     each year than the date provided in section 507, the Director 
     shall submit to the congressional intelligence committees the 
     evaluation described in paragraph (3).
       ``(2) The Director shall submit each year to the Committee 
     on Foreign Intelligence of the National Security Council, and 
     to the Committees on Armed Services and Appropriations of the 
     Senate and House of Representatives, the evaluation described 
     in paragraph (3).
       ``(3) An evaluation described in this paragraph is an 
     evaluation of the performance and responsiveness of the 
     National Security Agency, the National Reconnaissance Office, 
     and the National Imagery and Mapping Agency in meeting their 
     respective national missions.
       ``(4) The Director shall submit each evaluation under this 
     subsection in consultation with the Secretary of Defense and 
     the Chairman of the Joint Chiefs of Staff.''.
       (B) Section 109 of that Act (50 U.S.C. 404d) is amended--
       (i) in subsection (a), by striking paragraph (1) and 
     inserting the following new paragraph (1):
       ``(1)(A) Not later each year than the date provided in 
     section 507, the President shall submit to the congressional 
     intelligence committees a report on the requirements of the 
     United States for intelligence and the activities of the 
     intelligence community.
       ``(B) Not later than January 31 each year, and included 
     with the budget of the President for the next fiscal year 
     under section 1105(a) of title 31, United States Code, the 
     President shall submit to the appropriate congressional 
     committees the report described in subparagraph (A).'';
       (ii) in subsection (c), as amended by section 803(a) of the 
     Intelligence Renewal and Reform Act of 1996 (title VIII of 
     Public Law 104-293; 110 Stat. 3475)--
       (I) in paragraph (1), by striking ``The Select Committee on 
     Intelligence, the Committee on Appropriations,'' and 
     inserting ``The Committee on Appropriations''; and
       (II) in paragraph (2), by striking ``The Permanent Select 
     Committee on Intelligence, the Committee on Appropriations,'' 
     and inserting ``The Committee on Appropriations''; and
       (iii) by striking subsection (c), as added by section 
     304(a) of the Intelligence Authorization Act for Fiscal Year 
     1994 (Public Law 103-178; 107 Stat. 2034).
       (C) Section 112(b) of that Act (50 U.S.C. 404g(b)) is 
     amended by adding at the end the following new paragraph:
       ``(3) In the case of periodic reports required to be 
     submitted under the first sentence of paragraph (1) to the 
     congressional intelligence committees, the submittal dates 
     for such reports shall be as provided in section 507.''.
       (D) Section 114 of that Act (50 U.S.C. 404i) is amended--
       (i) in subsection (a)--
       (I) in paragraph (1), by striking ``the congressional 
     intelligence committees and'';
       (II) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (III) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) Not later each year than the date provided in section 
     507, the Director shall submit to the congressional 
     intelligence committees the report required to be submitted 
     under paragraph (1) during the preceding year.''; and
       (ii) in subsection (b)(1), by striking ``, on an annual 
     basis'' and all that follows through ``leadership'' and 
     inserting ``submit to the congressional leadership on an 
     annual basis, and to the congressional intelligence 
     committees on the date each year provided in section 507,''.
       (E) Section 603 of that Act (50 U.S.C. 423) is amended--
       (i) in subsection (a), by adding at the end the following 
     new sentence: ``The date for the submittal of the report 
     shall be the date provided in section 507.''; and
       (ii) in subsection (b), by striking the second sentence.
       (2) Central intelligence agency act of 1949.--Section 
     17(d)(1) of the Central Intelligence Agency Act of 1949 (50 
     U.S.C. 403q(d)(1)) is amended in the second sentence by 
     striking ``Within thirty days of receipt of such reports,'' 
     and inserting ``Not later than the dates each year provided 
     for the transmittal of such reports in section 507 of the 
     National Security Act of 1947,''.
       (3) Classified information procedures act.--Section 13 of 
     the Classified Information Procedures Act (18 U.S.C. App.) is 
     amended--
       (A) by redesignating subsection (b) as subsection (c); and
       (B) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) In the case of the semiannual reports (whether oral 
     or written) required to be submitted under subsection (a) to 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives and the Select Committee on Intelligence 
     of the Senate, the submittal dates for such reports shall be 
     as provided in section 507 of the National Security Act of 
     1947.''.
       (4) Title 10, united states code.--(A) Section 437 of title 
     10, United States Code, is amended--
       (i) in subsection (c), by striking ``Not later than'' and 
     all that follows through ``of Congress'' and inserting ``Not 
     later each year than the date provided in section 507 of the 
     National Security Act of 1947, the Secretary shall submit to 
     the congressional intelligence committees (as defined in 
     section 3 of that Act (50 U.S.C. 401a))''; and
       (ii) by striking subsection (d).
       (B) Section 1611(e) of that title is amended--
       (i) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraph (3)'';
       (ii) by redesignating paragraph (2) as paragraph (3); and
       (iii) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) In the case of a report required to be submitted 
     under paragraph (1) to the Select Committee on Intelligence 
     of the Senate and the Permanent Select Committee on 
     Intelligence of the House of Representatives, the date for 
     the submittal of such report shall be as provided in section 
     507 of the National Security Act of 1947.''.
       (5) Intelligence authorization acts.--(A) Section 809 of 
     the Counterintelligence and Security Enhancements Act of 1994 
     (title VIII of Public Law 103-359; 108 Stat. 3454; 50 U.S.C. 
     App. 2170b) is amended by striking subsection (b) and 
     inserting the following new subsection (b):
       ``(b) Annual Update.--
       ``(1) Submittal to congressional intelligence committees.--
     Not later each year than the date provided in section 507 of 
     the National Security Act of 1947, the President shall submit 
     to the congressional intelligence committees a report 
     updating the information referred to in subsection (a)(1)(D).
       ``(2) Submittal to congressional leadership.--Not later 
     than April 14 each year, the President shall submit to the 
     congressional leadership a report updating the information 
     referred to in subsection (a)(1)(D).
       ``(3) Definitions.--In this subsection:
       ``(A) Congressional intelligence committees.--The term 
     `congressional intelligence committees' has the meaning given 
     that term in section 3 of the National Security Act of 1947 
     (50 U.S.C. 401a).
       ``(B) Congressional leadership.--The term `congressional 
     leadership' means the Speaker and the minority leader of the 
     House of Representatives and the majority leader and the 
     minority leader of the Senate.''.
       (B) Paragraph (6) of section 811(c) of that Act (50 U.S.C. 
     402a(c)) is amended to read as follows:
       ``(6)(A) Not later each year than the date provided in 
     section 507 of the National Security Act of 1947, the 
     Director of the Federal Bureau of Investigation shall submit 
     to the congressional intelligence committees (as defined in 
     section 3 of that Act (50 U.S.C. 401a)) a report with respect 
     to compliance with paragraphs (1) and (2) during the previous 
     calendar year.
       ``(B) Not later than February 1 each year, the Director 
     shall, in accordance with applicable security procedures, 
     submit to the Committees on the Judiciary of the Senate and 
     House of Representatives a report with respect to compliance 
     with paragraphs (1) and (2) during the previous calendar 
     year.
       ``(C) The Director of the Federal Bureau of Investigation 
     shall submit each report under this paragraph in consultation 
     with the Director of Central Intelligence and the Secretary 
     of Defense.''.
       (C) Section 721 of the Combatting Proliferation of Weapons 
     of Mass Destruction Act of 1996 (title VII of Public Law 104-
     293; 110 Stat. 3474; 50 U.S.C. 2366) is amended--
       (i) in subsection (a), by striking ``Not later than'' and 
     all that follows through ``the Director'' and inserting ``The 
     Director'';
       (ii) by redesignating subsection (b) as subsection (c);
       (iii) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Submittal Dates.--(1) The report required by 
     subsection (a) shall be submitted each year to the 
     congressional intelligence committees and the congressional 
     leadership on a semiannual basis on the dates provided in 
     section 507 of the National Security Act of 1947.
       ``(2) In this subsection:
       ``(A) The term `congressional intelligence committees' has 
     the meaning given that term in section 3 of the National 
     Security Act of 1947 (50 U.S.C. 401a).
       ``(B) The term `congressional leadership' means the Speaker 
     and the minority leader of the House of Representatives and 
     the majority leader and the minority leader of the Senate.''; 
     and
       (iv) in subsection (c), as so redesignated, by striking 
     ``The reports'' and inserting ``Each report''.
       (D) Section 308 of the Intelligence Authorization Act for 
     Fiscal Year 1998 (Public Law 105-107; 111 Stat. 2253; 50 
     U.S.C. 402a note) is amended--
       (i) in subsection (a)--
       (I) by striking ``Not later than'' and all that follows 
     through ``the Director of Central Intelligence'' and 
     inserting ``The Director of Central Intelligence''; and
       (II) by inserting ``on an annual basis'' after ``to 
     Congress''; and
       (ii) by adding at the end the end the following new 
     subsection (c):
       ``(c) Submittal Date of Report to Leadership of 
     Congressional Intelligence Committees.--The date each year 
     for the submittal to the Chairman and Ranking Member of the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives and the Chairman and Vice Chairman of the 
     Select Committee on Intelligence of the Senate of the report 
     required by subsection (a) shall be the date provided in 
     section 507 of the National Security Act of 1947.''.
       (E) Section 322(a)(6)(D) of the Intelligence Authorization 
     Act for Fiscal Year 2001 (Public Law 106-567; 114 Stat. 2844; 
     22 U.S.C. 7302(a)(6)(D)) is amended--
       (i) in clause (i), by striking ``Beginning on'' and 
     inserting ``Except as provided in clause (ii), beginning 
     on'';

[[Page H8776]]

       (ii) by redesignating clause (ii) as clause (iii);
       (iii) by inserting after clause (i) the following new 
     clause (ii):
       ``(ii) Submittal date of reports to congressional 
     intelligence committees.--In the case of reports required to 
     be submitted under clause (i) to the congressional 
     intelligence committees (as defined in section 3 of the 
     National Security Act of 1947 (50 U.S.C. 401a)), the 
     submittal dates for such reports shall be as provided in 
     section 507 of that Act.''; and
       (iv) in clause (iii), as so redesignated, by striking 
     ``report'' and inserting ``reports''.
       (6) Public law 103-337.--Section 1012(c) of the National 
     Defense Authorization Act for Fiscal Year 1995 (22 U.S.C. 
     2291-4(c)) is amended--
       (A) in paragraph (1), by striking ``Not later than'' and 
     inserting ``Except as provided in paragraph (2), not later 
     than'';
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) In the case of a report required to be submitted 
     under paragraph (1) to the congressional intelligence 
     committees (as defined in section 3 of the National Security 
     Act of 1947 (50 U.S.C. 401a)), the submittal date for such 
     report shall be as provided in section 507 of that Act.''.
       (7) David l. boren national security education act of 
     1991.--The David L. Boren National Security Education Act of 
     1991 (title VIII of Public Law 102-183; 50 U.S.C. 1901 et 
     seq.) is amended--
       (A) in section 806(a) (50 U.S.C. 1906(a))--
       (i) by inserting ``(1)'' before ``The Secretary'';
       (ii) in paragraph (1), as so designated, by striking ``the 
     Congress'' and inserting ``the congressional intelligence 
     committees'';
       (iii) by designating the second sentence as paragraph (2) 
     and by aligning such paragraph with the paragraph added by 
     clause (v);
       (iv) in paragraph (2), as so designated, by inserting 
     ``submitted to the President'' after ``The report''; and
       (v) by adding at the end the following new paragraph (3):
       ``(3) The report submitted to the congressional 
     intelligence committees shall be submitted on the date 
     provided in section 507 of the National Security Act of 
     1947.''; and
       (B) in section 808 (50 U.S.C. 1908), by adding at the end 
     the following new paragraph (5):
       ``(5) The term `congressional intelligence committees' 
     means--
       ``(A) the Select Committee on Intelligence of the Senate; 
     and
       ``(B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.''.
       (8) Fair credit reporting act.--(A) Section 604(b)(4) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681b(b)(4)) is 
     amended--
       (i) in subparagraph (D), by striking ``Not later than'' and 
     inserting ``Except as provided in subparagraph (E), not later 
     than'';
       (ii) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (iii) by inserting after subparagraph (D) the following new 
     subparagraph (E):
       ``(E) Reports to congressional intelligence committees.--In 
     the case of a report to be submitted under subparagraph (D) 
     to the congressional intelligence committees (as defined in 
     section 3 of the National Security Act of 1947 (50 U.S.C. 
     401a)), the submittal date for such report shall be as 
     provided in section 507 of that Act.''.
       (B) Section 625(h) of that Act (15 U.S.C. 1681u(h)) is 
     amended--
       (i) by inserting ``(1)'' before ``On a semiannual basis,''; 
     and
       (ii) by adding at the end the following new paragraph:
       ``(2) In the case of the semiannual reports required to be 
     submitted under paragraph (1) to the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate, the 
     submittal dates for such reports shall be as provided in 
     section 507 of the National Security Act of 1947.''.
       (9) Right to financial privacy act of 1978.--Section 
     1114(a)(5)(C) of the Right to Financial Privacy Act of 1978 
     (12 U.S.C. 3414(a)(5)(C)) is amended by striking ``On a 
     semiannual'' and all that follows through ``the Senate'' and 
     inserting ``On the dates provided in section 507 of the 
     National Security Act of 1947, the Attorney General shall 
     fully inform the congressional intelligence committees (as 
     defined in section 3 of that Act (50 U.S.C. 401a))''.

                  Subtitle C--Recurring Annual Reports

     SEC. 821. ANNUAL REPORT ON THREAT OF ATTACK ON THE UNITED 
                   STATES USING WEAPONS OF MASS DESTRUCTION.

       Section 114 of the National Security Act of 1947, as 
     amended by section 353(b)(6) of this Act, is further 
     amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Annual Report on Threat of Attack on the United 
     States Using Weapons of Mass Destruction.--(1) Not later each 
     year than the date provided in section 507, the Director 
     shall submit to the congressional committees specified in 
     paragraph (3) a report assessing the following:
       ``(A) The current threat of attack on the United States 
     using ballistic missiles or cruise missiles.
       ``(B) The current threat of attack on the United States 
     using a chemical, biological, or nuclear weapon delivered by 
     a system other than a ballistic missile or cruise missile.
       ``(2) Each report under paragraph (1) shall be a national 
     intelligence estimate, or have the formality of a national 
     intelligence estimate.
       ``(3) The congressional committees referred to in paragraph 
     (1) are the following:
       ``(A) The congressional intelligence committees.
       ``(B) The Committees on Foreign Relations and Armed 
     Services of the Senate.
       ``(C) The Committees on International Relations and Armed 
     Services of the House of Representatives.''.

     SEC. 822. ANNUAL REPORT ON COVERT LEASES.

       Section 114 of the National Security Act of 1947, as 
     amended by section 821 of this Act, is further amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e) Annual Report on Covert Leases.--(1) Not later each 
     year than the date provided in section 507, the Director 
     shall submit to the congressional intelligence committees a 
     report on each covert lease of an element of the intelligence 
     community that is in force as of the end of the preceding 
     year.
       ``(2) Each report under paragraph (1) shall include the 
     following:
       ``(A) A list of each lease described by that paragraph.
       ``(B) For each lease--
       ``(i) the cost of such lease;
       ``(ii) the duration of such lease;
       ``(iii) the purpose of such lease; and
       ``(iv) the directorate or office that controls such 
     lease.''.

     SEC. 823. ANNUAL REPORT ON IMPROVEMENT OF FINANCIAL 
                   STATEMENTS OF CERTAIN ELEMENTS OF THE 
                   INTELLIGENCE COMMUNITY FOR AUDITING PURPOSES.

       (a) In General.--Title I of the National Security Act of 
     1947 (50 U.S.C. 402 et seq.) is amended by inserting after 
     section 114 the following new section:


  ``annual report on improvement of financial statements for auditing 
                                purposes

       ``Sec. 114A. Not later each year than the date provided in 
     section 507, the Director of Central Intelligence, the 
     Director of the National Security Agency, the Director of the 
     Defense Intelligence Agency, and the Director of the National 
     Imagery and Mapping Agency shall each submit to the 
     congressional intelligence committees a report describing the 
     activities being undertaken by such official to ensure that 
     the financial statements of such agency can be audited in 
     accordance with applicable law and requirements of the Office 
     of Management and Budget.''.
       (b) Clerical Amendment.--The table of sections for the 
     National Security Act of 1947 is amended by inserting after 
     the item relating to section 114 the following new item:

``Sec. 114A. Annual report on improvement of financial statements for 
              auditing purposes.''.

     SEC. 824. ANNUAL REPORT ON ACTIVITIES OF FEDERAL BUREAU OF 
                   INVESTIGATION PERSONNEL OUTSIDE THE UNITED 
                   STATES.

       (a) Annual Report.--Chapter 33 of title 28, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 540C. Annual report on activities of Federal Bureau of 
       Investigation personnel outside the United States

       ``(a) The Director of the Federal Bureau of Investigation 
     shall submit to the appropriate committees of Congress each 
     year a report on the activities of personnel of the Federal 
     Bureau of Investigation outside the United States.
       ``(b) The report under subsection (a) shall include the 
     following:
       ``(1) For the year preceding the year in which the report 
     is required to be submitted--
       ``(A) the number of personnel of the Bureau posted or 
     detailed outside the United States during the year;
       ``(B) a description of the coordination of the 
     investigations, asset handling, liaison, and operational 
     activities of the Bureau during the year with other elements 
     of the intelligence community; and
       ``(C) a description of the extent to which information 
     derived from activities described in subparagraph (B) was 
     shared with other elements of the intelligence community.
       ``(2) For the year in which the report is required to be 
     submitted--
       ``(A) a description of the plans, if any, of the Director--
       ``(i) to modify the number of personnel of the Bureau 
     posted or detailed outside the United States; or
       ``(ii) to modify the scope of the activities of personnel 
     of the Bureau posted or detailed outside the United States; 
     and
       ``(B) a description of the manner and extent to which 
     information derived from activities of the Bureau described 
     in paragraph (1)(B) during the year will be shared with other 
     elements of the intelligence community.
       ``(c) The date of the submittal each year of the report 
     required by subsection (a) shall be the date provided in 
     section 507 of the National Security Act of 1947.
       ``(d) In this section, the term `appropriate committees of 
     Congress' means--
       ``(1) the Committees on the Judiciary of the Senate and 
     House of Representatives; and
       ``(2) the congressional intelligence committees (as defined 
     in section 3 of the National Security Act of 1947 (50 U.S.C. 
     401a)).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 33 of that title is amended by inserting 
     after the item relating to section 540B the following new 
     item:

``540C. Annual report on activities of Federal Bureau of Investigation 
              personnel outside the United States.''.

     SEC. 825. ANNUAL REPORTS OF INSPECTORS GENERAL OF THE 
                   INTELLIGENCE COMMUNITY ON PROPOSED RESOURCES 
                   AND ACTIVITIES OF THEIR OFFICES.

       Section 8H of the Inspector General Act of 1978 (5 U.S.C. 
     App.) is amended--

[[Page H8777]]

       (1) in subsection (f), by striking ``this section'' and 
     inserting ``subsections (a) through (e)'';
       (2) by redesignating subsection (g) as subsection (h); and
       (3) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g)(1) The Inspector General of the Defense Intelligence 
     Agency, the National Imagery and Mapping Agency, the National 
     Reconnaissance Office, and the National Security Agency shall 
     each submit to the congressional intelligence committees each 
     year a report that sets forth the following:
       ``(A) The personnel and funds requested by such Inspector 
     General for the fiscal year beginning in such year for the 
     activities of the office of such Inspector General in such 
     fiscal year.
       ``(B) The plan of such Inspector General for such 
     activities, including the programs and activities scheduled 
     for review by the office of such Inspector General during 
     such fiscal year.
       ``(C) An assessment of the current ability of such 
     Inspector General to hire and retain qualified personnel for 
     the office of such Inspector General.
       ``(D) Any matters that such Inspector General considers 
     appropriate regarding the independence and effectiveness of 
     the office of such Inspector General.
       ``(2) The submittal date for a report under paragraph (1) 
     each year shall be the date provided in section 507 of the 
     National Security Act of 1947.
       ``(3) In this subsection, the term `congressional 
     intelligence committees' shall have the meaning given that 
     term in section 3 of the National Security Act of 1947 (50 
     U.S.C. 401a).''.

     SEC. 826. ANNUAL REPORT ON COUNTERDRUG INTELLIGENCE MATTERS.

       (a) Annual Report.--The Counterdrug Intelligence 
     Coordinating Group shall submit to the appropriate committees 
     of Congress each year a report on current counterdrug 
     intelligence matters. The report shall include the 
     recommendations of the Counterdrug Intelligence Coordinating 
     Group on the appropriate number of permanent staff, and of 
     detailed personnel, for the staff of the Counterdrug 
     Intelligence Executive Secretariat.
       (b) Submittal Date.--The date of the submittal each year of 
     the report required by subsection (a) shall be the date 
     provided in section 507 of the National Security Act of 1947, 
     as added by section 811 of this Act.
       (c) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committees on Appropriations of the Senate and 
     House of Representatives; and
       (2) the congressional intelligence committees (as defined 
     in section 3 of the National Security Act of 1947 (50 U.S.C. 
     401a)).

     SEC. 827. ANNUAL REPORT ON FOREIGN COMPANIES INVOLVED IN THE 
                   PROLIFERATION OF WEAPONS OF MASS DESTRUCTION 
                   THAT RAISE FUNDS IN THE UNITED STATES CAPITAL 
                   MARKETS.

       (a) Annual Report Required.--The Director of Central 
     Intelligence shall submit to the appropriate committees of 
     Congress on an annual basis a report setting forth each 
     foreign company described in subsection (b) that raised or 
     attempted to raise funds in the United States capital markets 
     during the preceding year.
       (b) Covered Foreign Companies.--A foreign company described 
     in this subsection is any foreign company determined by the 
     Director to be engaged or involved in the proliferation of 
     weapons of mass destruction (including nuclear, biological, 
     or chemical weapons) or the means to deliver such weapons.
       (c) Submittal Date.--The date each year for the submittal 
     of the report required by subsection (a) shall be the date 
     provided in section 507 of the National Security Act of 1947, 
     as added by section 811 of this Act.
       (d) Form of Reports.--Each report under subsection (a) 
     shall be submitted in unclassified form, but may include a 
     classified annex.
       (e) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Select Committee on Intelligence of the Senate and 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives;
       (2) the Committees on Armed Services, Banking, Housing, and 
     Urban Affairs, Governmental Affairs, and Foreign Relations of 
     the Senate; and
       (3) the Committees on Armed Services, Financial Services, 
     Government Reform, and International Relations of the House 
     of Representatives.

                       Subtitle D--Other Reports

     SEC. 831. REPORT ON EFFECT OF COUNTRY-RELEASE RESTRICTIONS ON 
                   ALLIED INTELLIGENCE-SHARING RELATIONSHIPS.

       (a) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Director of Central Intelligence 
     shall, in consultation with the Secretary of Defense, submit 
     to the congressional intelligence committees a report 
     containing an assessment of the effect of the use of 
     ``NOFORN'' classifications, and of other country-release 
     policies, procedures, and classification restrictions, on 
     intelligence-sharing relationships and coordinated 
     intelligence operations and military operations between the 
     United States and its allies. The report shall include an 
     assessment of the effect of the use of such classifications, 
     and of such policies, procedures, and restrictions, on 
     counterterrorism operations in Afghanistan and elsewhere.
       (b) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committee'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

     SEC. 832. EVALUATION OF POLICIES AND PROCEDURES OF DEPARTMENT 
                   OF STATE ON PROTECTION OF CLASSIFIED 
                   INFORMATION AT DEPARTMENT HEADQUARTERS.

       (a) Evaluation Required.--Not later than December 31 of 
     2002, 2003, and 2004, the Inspector General of the Department 
     of State shall conduct an evaluation of the policies and 
     procedures of the Department on the protection of classified 
     information at the Headquarters of the Department, including 
     compliance with the directives of the Director of Central 
     Intelligence (DCIDs) regarding the storage and handling of 
     Sensitive Compartmented Information (SCI) material.
       (b) Annual Report.--Except as provided in subsection (c), 
     not later than February 1 of 2003, 2004, and 2005, the 
     Inspector General shall submit to the following committees a 
     report on the evaluation conducted under subsection (a) 
     during the preceding year:
       (1) The congressional intelligence committees.
       (2) The Committee on Foreign Relations of the Senate and 
     the Committee on International Relations of the House of 
     Representatives.
       (c) Exception.--The date each year for the submittal of a 
     report under subsection (b) may be postponed in accordance 
     with section 507(d) of the National Security Act of 1947, as 
     added by section 811 of this Act.
       (d) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

           Subtitle E--Repeal of Certain Report Requirements

     SEC. 841. REPEAL OF CERTAIN REPORT REQUIREMENTS.

       (a) Annual Report on the Detail of Intelligence Community 
     Personnel.--Section 113 of the National Security Act of 1947 
     (50 U.S.C. 404h) is amended by striking subsection (c).
       (b) Annual Report on Exercise of National Security Agency 
     Voluntary Separation Pay Authority.--Section 301(j) of the 
     National Security Act of 1947 (50 U.S.C. 409a(j)), as amended 
     by section 353(b)(2)(A) of this Act, is further amended--
       (1) by striking ``Reporting Require-
     ments.--'' and all that follows through ``The Director may'' 
     and inserting ``Notification of Exercise of Authority.--The 
     Director may''; and
       (2) by striking paragraph (2).
       (c) Annual Report on Transfers of Amounts for Acquisition 
     of Land by the Central Intelligence Agency.--Section 5(c)(2) 
     of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
     403f(c)(2)) is amended by striking ``an annual report on the 
     transfers of sums described in paragraph (1).'' and inserting 
     ``a report on the transfer of sums described in paragraph (1) 
     each time that authority is exercised.''.
       (d) Annual Report on Use of CIA Personnel as Special 
     Policemen.--Section 15(a) of the Central Intelligence Agency 
     Act of 1949 (50 U.S.C. 403o(a)) is amended by striking 
     paragraph (5).
       (e) Annual Audit of the Central Services Program of the 
     Central Intelligence Agency.--Section 21 of the Central 
     Intelligence Agency Act of 1949 (50 U.S.C. 403u) is amended--
       (1) by striking subsection (g); and
       (2) by redesignating subsection (h) as subsection (g).
       (f) Annual Report on Special Police Authority for the 
     National Security Agency.--Section 11(a)(5) of the National 
     Security Agency Act of 1959 (50 U.S.C. 402 note) is amended 
     by inserting ``through 2004'' after ``Not later than July 1 
     each year''.

                TITLE IX--COUNTERINTELLIGENCE ACTIVITIES

     SEC. 901. SHORT TITLE; PURPOSE.

       (a) Short Title.--This title may be cited as the 
     ``Counterintelligence Enhancement Act of 2002''.
       (b) Purpose.--The purpose of this title is to facilitate 
     the enhancement of the counterintelligence activities of the 
     United States Government by--
       (1) enabling the counterintelligence community of the 
     United States Government to fulfill better its mission of 
     identifying, assessing, prioritizing, and countering the 
     intelligence threats to the United States;
       (2) ensuring that the counterintelligence community of the 
     United States Government acts in an efficient and effective 
     manner; and
       (3) providing for the integration of all the 
     counterintelligence activities of the United States 
     Government.

     SEC. 902. NATIONAL COUNTERINTELLIGENCE EXECUTIVE.

       (a) Establishment.--(1) There shall be a National 
     Counterintelligence Executive, who shall be appointed by the 
     President.
       (2) It is the sense of Congress that the President should 
     seek the views of the Attorney General, Secretary of Defense, 
     and Director of Central Intelligence in selecting an 
     individual for appointment as the Executive.
       (b) Mission.--The mission of the National 
     Counterintelligence Executive shall be to serve as the head 
     of national counterintelligence for the United States 
     Government.
       (c) Duties.--Subject to the direction and control of the 
     President, the duties of the National Counterintelligence 
     Executive are as follows:
       (1) To carry out the mission referred to in subsection (b).
       (2) To act as chairperson of the National 
     Counterintelligence Policy Board under section 811 of the 
     Counterintelligence and Security Enhancements Act of 1994 
     (title VIII of Public Law 103-359; 50 U.S.C. 402a), as 
     amended by section 903 of this Act.

[[Page H8778]]

       (3) To act as head of the Office of the National 
     Counterintelligence Executive under section 904.
       (4) To participate as an observer on such boards, 
     committees, and entities of the executive branch as the 
     President considers appropriate for the discharge of the 
     mission and functions of the Executive and the Office of the 
     National Counterintelligence Executive under section 904.

     SEC. 903. NATIONAL COUNTERINTELLIGENCE POLICY BOARD.

       (a) Chairperson.--Section 811 of the Counterintelligence 
     and Security Enhancements Act of 1994 (title VII of Public 
     Law 103-359; 50 U.S.C. 402a), as amended by section 
     811(b)(5)(B) of this Act, is further amended--
       (1) by striking subsection (b);
       (2) by redesignating subsection (c) as subsection (e); and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Chairperson.--The National Counterintelligence 
     Executive under section 902 of the Counterintelligence 
     Enhancement Act of 2002 shall serve as the chairperson of the 
     Board.''.
       (b) Membership.--That section is further amended by 
     inserting after subsection (b), as amended by subsection 
     (a)(3) of this section, the following new subsection (c):
       ``(c) Membership.--The membership of the National 
     Counterintelligence Policy Board shall consist of the 
     following:
       ``(1) The National Counterintelligence Executive.
       ``(2) Senior personnel of departments and elements of the 
     United States Government, appointed by the head of the 
     department or element concerned, as follows:
       ``(A) The Department of Justice, including the Federal 
     Bureau of Investigation.
       ``(B) The Department of Defense, including the Joint Chiefs 
     of Staff.
       ``(C) The Department of State.
       ``(D) The Department of Energy.
       ``(E) The Central Intelligence Agency.
       ``(F) Any other department, agency, or element of the 
     United States Government specified by the President.''.
       (c) Functions and Discharge of Functions.--That section is 
     further amended by inserting after subsection (c), as amended 
     by subsection (b) of this section, the following new 
     subsection:
       ``(d) Functions and Discharge of Functions.--(1) The Board 
     shall--
       ``(A) serve as the principal mechanism for--
       ``(i) developing policies and procedures for the approval 
     of the President to govern the conduct of counterintelligence 
     activities; and
       ``(ii) upon the direction of the President, resolving 
     conflicts that arise between elements of the Government 
     conducting such activities; and
       ``(B) act as an interagency working group to--
       ``(i) ensure the discussion and review of matters relating 
     to the implementation of the Counterintelligence Enhancement 
     Act of 2002; and
       ``(ii) provide advice to the National Counterintelligence 
     Executive on priorities in the implementation of the National 
     Counterintelligence Strategy produced by the Office of the 
     National Counterintelligence Executive under section 
     904(e)(2) of that Act.
       ``(2) The Board may, for purposes of carrying out its 
     functions under this section, establish such interagency 
     boards and working groups as the Board considers 
     appropriate.''.

     SEC. 904. OFFICE OF THE NATIONAL COUNTERINTELLIGENCE 
                   EXECUTIVE.

       (a) Establishment.--There shall be an Office of the 
     National Counterintelligence Executive.
       (b) Head of Office.--The National Counterintelligence 
     Executive shall be the head of the Office of the National 
     Counterintelligence Executive.
       (c) Location of Office.--The Office of the National 
     Counterintelligence Executive shall be located in the Office 
     of the Director of Central Intelligence.
       (d) General Counsel.--(1) There shall be in the Office of 
     the National Counterintelligence Executive a general counsel 
     who shall serve as principal legal advisor to the National 
     Counterintelligence Executive.
       (2) The general counsel shall--
       (A) provide legal advice and counsel to the Executive on 
     matters relating to functions of the Office;
       (B) ensure that the Office complies with all applicable 
     laws, regulations, Executive orders, and guidelines; and
       (C) carry out such other duties as the Executive may 
     specify.
       (e) Functions.--Subject to the direction and control of the 
     National Counterintelligence Executive, the functions of the 
     Office of the National Counterintelligence Executive shall be 
     as follows:
       (1) National threat identification and prioritization 
     assessment.--Subject to subsection (f), in consultation with 
     appropriate department and agencies of the United States 
     Government, and private sector entities, to produce on an 
     annual basis a strategic planning assessment of the 
     counterintelligence requirements of the United States to be 
     known as the National Threat Identification and 
     Prioritization Assessment.
       (2) National counterintelligence strategy.--Subject to 
     subsection (f), in consultation with appropriate department 
     and agencies of the United States Government, and private 
     sector entities, and based on the most current National 
     Threat Identification and Prioritization Assessment under 
     paragraph (1), to produce on an annual basis a strategy for 
     the counterintelligence programs and activities of the United 
     States Government to be known as the National 
     Counterintelligence Strategy.
       (3) Implementation of national counterintelligence 
     strategy.--To evaluate on an ongoing basis the implementation 
     of the National Counterintelligence Strategy and to submit to 
     the President periodic reports on such evaluation, including 
     a discussion of any shortfalls in the implementation of the 
     Strategy and recommendations for remedies for such 
     shortfalls.
       (4) National counterintelligence strategic analyses.--As 
     directed by the Director of Central Intelligence and in 
     consultation with appropriate elements of the departments and 
     agencies of the United States Government, to oversee and 
     coordinate the production of strategic analyses of 
     counterintelligence matters, including the production of 
     counterintelligence damage assessments and assessments of 
     lessons learned from counterintelligence activities.
       (5) National counterintelligence program budget.--In 
     consultation with the Director of Central Intelligence--
       (A) to coordinate the development of budgets and resource 
     allocation plans for the counterintelligence programs and 
     activities of the Department of Defense, the Federal Bureau 
     of Investigation, the Central Intelligence Agency, and other 
     appropriate elements of the United States Government;
       (B) to ensure that the budgets and resource allocation 
     plans developed under subparagraph (A) address the objectives 
     and priorities for counterintelligence under the National 
     Counterintelligence Strategy; and
       (C) to submit to the National Security Council periodic 
     reports on the activities undertaken by the Office under 
     subparagraphs (A) and (B).
       (6) National counterintelligence collection and targeting 
     coordination.--To develop priorities for counterintelligence 
     investigations and operations, and for collection of 
     counterintelligence, for purposes of the National 
     Counterintelligence Strategy, except that the Office may 
     not--
       (A) carry out any counterintelligence investigations or 
     operations; or
       (B) establish its own contacts, or carry out its own 
     activities, with foreign intelligence services.
       (7) National counterintelligence outreach, watch, and 
     warning.--
       (A) Counterintelligence vulnerability surveys.--To carry 
     out and coordinate surveys of the vulnerability of the United 
     States Government, and the private sector, to intelligence 
     threats in order to identify the areas, programs, and 
     activities that require protection from such threats.
       (B) Outreach.--To carry out and coordinate outreach 
     programs and activities on counterintelligence to other 
     elements of the United States Government, and the private 
     sector, and to coordinate the dissemination to the public of 
     warnings on intelligence threats to the United States.
       (C) Research and development.--To ensure that research and 
     development programs and activities of the United States 
     Government, and the private sector, direct attention to the 
     needs of the counterintelligence community for technologies, 
     products, and services.
       (D) Training and professional development.--To develop 
     policies and standards for training and professional 
     development of individuals engaged in counterintelligence 
     activities and to manage the conduct of joint training 
     exercises for such personnel.
       (f) Additional Requirements Regarding National Threat 
     Identification and Prioritization Assessment and National 
     Counterintelligence Strategy.--(1) A National Threat 
     Identification and Prioritization Assessment under subsection 
     (e)(1), and any modification of such assessment, shall not go 
     into effect until approved by the President.
       (2) A National Counterintelligence Strategy under 
     subsection (e)(2), and any modification of such strategy, 
     shall not go into effect until approved by the President.
       (3) The National Counterintelligence Executive shall submit 
     to the congressional intelligence committees each National 
     Threat Identification and Prioritization Assessment, or 
     modification thereof, and each National Counterintelligence 
     Strategy, or modification thereof, approved under this 
     section.
       (4) In this subsection, the term ``congressional 
     intelligence committees'' means--
       (A) the Select Committee on Intelligence of the Senate; and
       (B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (g) Personnel.--(1) Personnel of the Office of the National 
     Counterintelligence Executive may consist of personnel 
     employed by the Office or personnel on detail from any other 
     department, agency, or element of the Federal Government. Any 
     such detail may be on a reimbursable or nonreimbursable 
     basis, at the election of the head of the agency detailing 
     such personnel.
       (2) Notwithstanding section 104(d) or any other provision 
     of law limiting the period of the detail of personnel on a 
     nonreimbursable basis, the detail of an officer or employee 
     of United States or a member of the Armed Forces under 
     paragraph (1) on a nonreimbursable basis may be for any 
     period in excess of one year that the National 
     Counterintelligence Executive and the head of the department, 
     agency, or element concerned consider appropriate.
       (3) The employment of personnel by the Office, including 
     the appointment, compensation and benefits, management, and 
     separation of such personnel, shall be governed by the 
     provisions of law on such matters with respect to the 
     personnel of the Central Intelligence Agency, except that, 
     for purposes of the applicability of such provisions of law 
     to personnel of the Office, the National Counterintelligence 
     Executive shall be treated as the head of the Office.
       (4) Positions in the Office shall be excepted service 
     positions for purposes of title 5, United States Code.

[[Page H8779]]

       (h) Support.--(1) The Attorney General, Secretary of 
     Defense, and Director of Central Intelligence may each 
     provide the Office of the National Counterintelligence 
     Executive such support as may be necessary to permit the 
     Office to carry out its functions under this section.
       (2) Subject to any terms and conditions specified by the 
     Director of Central Intelligence, the Director may provide 
     administrative and contract support to the Office as if the 
     Office were an element of the Central Intelligence Agency.
       (3) Support provided under this subsection may be provided 
     on a reimbursable or nonreimbursable basis, at the election 
     of the official providing such support.
       (i) Availability of Funds for Reimbursement.--The National 
     Counterintelligence Executive may, from amounts available for 
     the Office, transfer to a department or agency detailing 
     personnel under subsection (g), or providing support under 
     subsection (h), on a reimbursable basis amounts appropriate 
     to reimburse such department or agency for the detail of such 
     personnel or the provision of such support, as the case may 
     be.
       (j) Contracts.--(1) Subject to paragraph (2), the National 
     Counterintelligence Executive may enter into any contract, 
     lease, cooperative agreement, or other transaction that the 
     Executive considers appropriate to carry out the functions of 
     the Office of the National Counterintelligence Executive 
     under this section.
       (2) The authority under paragraph (1) to enter into 
     contracts, leases, cooperative agreements, and other 
     transactions shall be subject to any terms, conditions, and 
     limitations applicable to the Central Intelligence Agency 
     under law with respect to similar contracts, leases, 
     cooperative agreements, and other transactions.
       (k) Treatment of Activities Under Certain Administrative 
     Laws.--The files of the Office shall be treated as 
     operational files of the Central Intelligence Agency for 
     purposes of section 701 of the National Security Act of 1947 
     (50 U.S.C. 431) to the extent such files meet criteria under 
     subsection (b) of that section for treatment of files as 
     operational files of an element of the Agency.
       (l) Oversight by Congress.--The location of the Office of 
     the National Counterintelligence Executive within the Office 
     of the Director of Central Intelligence shall not be 
     construed as affecting access by Congress, or any committee 
     of Congress, to--
       (1) any information, document, record, or paper in the 
     possession of the Office; or
       (2) any personnel of the Office.
       (m) Construction.--Nothing in this section shall be 
     construed as affecting the authority of the Director of 
     Central Intelligence, the Secretary of Defense, the Secretary 
     of State, the Attorney General, or the Director of the 
     Federal Bureau of Investigation as provided or specified 
     under the National Security Act of 1947 or under other 
     provisions of law.

  TITLE X--NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT 
          PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY

     SEC. 1001. FINDINGS.

       Congress makes the following findings:
       (1) Research and development efforts under the purview of 
     the intelligence community are vitally important to the 
     national security of the United States.
       (2) The intelligence community must operate in a dynamic, 
     highly-challenging environment, characterized by rapid 
     technological growth, against a growing number of hostile, 
     technically-sophisticated threats. Research and development 
     programs under the purview of the intelligence community are 
     critical to ensuring that intelligence agencies, and their 
     personnel, are provided with important technological 
     capabilities to detect, characterize, assess, and ultimately 
     counter the full range of threats to the national security of 
     the United States.
       (3) There is a need to review the full range of current 
     research and development programs under the purview of the 
     intelligence community, evaluate such programs against the 
     scientific and technological fields judged to be of most 
     importance, and articulate program and resource priorities 
     for future research and development activities to ensure a 
     unified and coherent research and development program across 
     the entire intelligence community.

     SEC. 1002. NATIONAL COMMISSION FOR THE REVIEW OF THE RESEARCH 
                   AND DEVELOPMENT PROGRAMS OF THE UNITED STATES 
                   INTELLIGENCE COMMUNITY.

       (a) Establishment.--There is established a commission to be 
     known as the ``National Commission for the Review of the 
     Research and Development Programs of the United States 
     Intelligence Community'' (in this title referred to as the 
     ``Commission'').
       (b) Composition.--The Commission shall be composed of 12 
     members, as follows:
       (1) The Deputy Director of Central Intelligence for 
     Community Management.
       (2) A senior intelligence official of the Office of the 
     Secretary of Defense, as designated by the Secretary of 
     Defense.
       (3) Three members appointed by the majority leader of the 
     Senate, in consultation with the Chairman of the Select 
     Committee on Intelligence of the Senate, one from Members of 
     the Senate and two from private life.
       (4) Two members appointed by the minority leader of the 
     Senate, in consultation with the Vice Chairman of the Select 
     Committee on Intelligence of the Senate, one from Members of 
     the Senate and one from private life.
       (5) Three members appointed by the Speaker of the House of 
     Representatives, in consultation with the Chairman of the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives, one from Members of the House of 
     Representatives and two from private life.
       (6) Two members appointed by the minority leader of the 
     House of Representatives, in consultation with the ranking 
     member of the Permanent Select Committee on Intelligence of 
     the House of Representatives, one from Members of the House 
     of Representatives and one from private life.
       (c) Membership.--(1) The individuals appointed from private 
     life as members of the Commission shall be individuals who 
     are nationally recognized for expertise, knowledge, or 
     experience in--
       (A) research and development programs;
       (B) technology discovery and insertion;
       (C) use of intelligence information by national 
     policymakers and military leaders; or
       (D) the implementation, funding, or oversight of the 
     national security policies of the United States.
       (2) An official who appoints members of the Commission may 
     not appoint an individual as a member of the Commission if, 
     in the judgment of the official, such individual possesses 
     any personal or financial interest in the discharge of any of 
     the duties of the Commission.
       (3) All members of the Commission appointed from private 
     life shall possess an appropriate security clearance in 
     accordance with applicable laws and regulations concerning 
     the handling of classified information.
       (d) Co-Chairs.--(1) The Commission shall have two co-
     chairs, selected from among the members of the Commission.
       (2) One co-chair of the Commission shall be a member of the 
     Democratic Party, and one co-chair shall be a member of the 
     Republican Party.
       (3) The individuals who serve as the co-chairs of the 
     Commission shall be jointly agreed upon by the President, the 
     majority leader of the Senate, the minority leader of the 
     Senate, the Speaker of the House of Representatives, and the 
     minority leader of the House of Representatives.
       (e) Appointment; Initial Meeting.--(1) Members of the 
     Commission shall be appointed not later than 45 days after 
     the date of the enactment of this Act.
       (2) The Commission shall hold its initial meeting on the 
     date that is 60 days after the date of the enactment of this 
     Act.
       (f) Meetings; Quorum; Vacancies.--(1) After its initial 
     meeting, the Commission shall meet upon the call of the co-
     chairs of the Commission.
       (2) Six members of the Commission shall constitute a quorum 
     for purposes of conducting business, except that two members 
     of the Commission shall constitute a quorum for purposes of 
     receiving testimony.
       (3) Any vacancy in the Commission shall not affect its 
     powers, but shall be filled in the same manner in which the 
     original appointment was made.
       (4) If vacancies in the Commission occur on any day after 
     45 days after the date of the enactment of this Act, a quorum 
     shall consist of a majority of the members of the Commission 
     as of such day.
       (g) Actions of Commission.--(1) The Commission shall act by 
     resolution agreed to by a majority of the members of the 
     Commission voting and present.
       (2) The Commission may establish panels composed of less 
     than the full membership of the Commission for purposes 
     of carrying out the duties of the Commission under this 
     title. The actions of any such panel shall be subject to 
     the review and control of the Commission. Any findings and 
     determinations made by such a panel shall not be 
     considered the findings and determinations of the 
     Commission unless approved by the Commission.
       (3) Any member, agent, or staff of the Commission may, if 
     authorized by the co-chairs of the Commission, take any 
     action which the Commission is authorized to take pursuant to 
     this title.
       (h) Duties.--The duties of the Commission shall be--
       (1) to conduct, until not later than the date on which the 
     Commission submits the report under section 1007(a), the 
     review described in subsection (i); and
       (2) to submit to the congressional intelligence committees, 
     the Director of Central Intelligence, and the Secretary of 
     Defense a final report on the results of the review.
       (i) Review.--The Commission shall review the status of 
     research and development programs and activities within the 
     intelligence community, including--
       (1) an assessment of the advisability of modifying the 
     scope of research and development for purposes of such 
     programs and activities;
       (2) a review of the particular individual research and 
     development activities under such programs;
       (3) an evaluation of the current allocation of resources 
     for research and development, including whether the 
     allocation of such resources for that purpose should be 
     modified;
       (4) an identification of the scientific and technological 
     fields judged to be of most importance to the intelligence 
     community;
       (5) an evaluation of the relationship between the research 
     and development programs and activities of the intelligence 
     community and the research and development programs and 
     activities of other departments and agencies of the Federal 
     Government; and
       (6) an evaluation of the relationship between the research 
     and development programs and activities of the intelligence 
     community and the research and development programs and 
     activities of the private sector.

     SEC. 1003. POWERS OF COMMISSION.

       (a) In General.--(1) The Commission or, on the 
     authorization of the Commission, any subcommittee or member 
     thereof, may, for the purpose of carrying out the provisions 
     of this title--
       (A) hold such hearings and sit and act at such times and 
     places, take such testimony, receive such evidence, and 
     administer such oaths; and

[[Page H8780]]

       (B) require, by subpoena or otherwise, the attendance and 
     testimony of such witnesses and the production of such books, 
     records, correspondence, memoranda, papers, and documents, as 
     the Commission or such designated subcommittee or designated 
     member considers necessary.
       (2) Subpoenas may be issued under subparagraph (1)(B) under 
     the signature of the co-chairs of the Commission, and may be 
     served by any person designated by such co-chairs.
       (3) The provisions of sections 102 through 104 of the 
     Revised Statutes of the United States (2 U.S.C. 192-194) 
     shall apply in the case of any failure of a witness to comply 
     with any subpoena or to testify when summoned under authority 
     of this section.
       (b) Contracting.--The Commission may, to such extent and in 
     such amounts as are provided in advance in appropriation 
     Acts, enter into contracts to enable the Commission to 
     discharge its duties under this title.
       (c) Information From Federal Agencies.--The Commission may 
     secure directly from any executive department, agency, 
     bureau, board, commission, office, independent establishment, 
     or instrumentality of the Government information, 
     suggestions, estimates, and statistics for the purposes of 
     this title. Each such department, agency, bureau, board, 
     commission, office, establishment, or instrumentality shall, 
     to the extent authorized by law, furnish such information, 
     suggestions, estimates, and statistics directly to the 
     Commission, upon request of the co-chairs of the Commission. 
     The Commission shall handle and protect all classified 
     information provided to it under this section in accordance 
     with applicable statutes and regulations.
       (d) Assistance From Federal Agencies.--(1) The Director of 
     Central Intelligence shall provide to the Commission, on a 
     nonreimbursable basis, such administrative services, funds, 
     staff, facilities, and other support services as are 
     necessary for the performance of the Commission's duties 
     under this title.
       (2) The Secretary of Defense may provide the Commission, on 
     a nonreimbursable basis, with such administrative services, 
     staff, and other support services as the Commission may 
     request.
       (3) In addition to the assistance set forth in paragraphs 
     (1) and (2), other departments and agencies of the United 
     States may provide the Commission such services, funds, 
     facilities, staff, and other support as such departments and 
     agencies consider advisable and as may be authorized by law.
       (4) The Commission shall receive the full and timely 
     cooperation of any official, department, or agency of the 
     United States Government whose assistance is necessary for 
     the fulfillment of the duties of the Commission under this 
     title, including the provision of full and current briefings 
     and analyses.
       (e) Prohibition on Withholding Information.--No department 
     or agency of the Government may withhold information from the 
     Commission on the grounds that providing the information to 
     the Commission would constitute the unauthorized disclosure 
     of classified information or information relating to 
     intelligence sources or methods.
       (f) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as the departments and agencies of the United States.
       (g) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property in carrying out 
     its duties under this title.

     SEC. 1004. STAFF OF COMMISSION.

       (a) In General.--(1) The co-chairs of the Commission, in 
     accordance with rules agreed upon by the Commission, shall 
     appoint and fix the compensation of a staff director and such 
     other personnel as may be necessary to enable the Commission 
     to carry out its duties, without regard to the provisions of 
     title 5, United States Code, governing appointments in the 
     competitive service, and without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of such title 
     relating to classification and General Schedule pay rates, 
     except that no rate of pay fixed under this subsection may 
     exceed the equivalent of that payable to a person occupying a 
     position at level V of the Executive Schedule under section 
     5316 of such title.
       (2) Any Federal Government employee may be detailed to the 
     Commission without reimbursement from the Commission, and 
     such detailee shall retain the rights, status, and privileges 
     of his or her regular employment without interruption.
       (3) All staff of the Commission shall possess a security 
     clearance in accordance with applicable laws and regulations 
     concerning the handling of classified information.
       (b) Consultant Services.--(1) The Commission may procure 
     the services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, but at rates not 
     to exceed the daily rate paid a person occupying a position 
     at level IV of the Executive Schedule under section 5315 of 
     such title.
       (2) All experts and consultants employed by the Commission 
     shall possess a security clearance in accordance with 
     applicable laws and regulations concerning the handling of 
     classified information.

     SEC. 1005. COMPENSATION AND TRAVEL EXPENSES.

       (a) Compensation.--(1) Except as provided in paragraph (2), 
     each member of the Commission may be compensated at not to 
     exceed the daily equivalent of the annual rate of basic pay 
     in effect for a position at level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code, 
     for each day during which that member is engaged in the 
     actual performance of the duties of the Commission under this 
     title.
       (2) Members of the Commission who are officers or employees 
     of the United States or Members of Congress shall receive no 
     additional pay by reason of their service on the Commission.
       (b) Travel Expenses.--While away from their homes or 
     regular places of business in the performance of services for 
     the Commission, members of the Commission may be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     in the same manner as persons employed intermittently in the 
     Government service are allowed expenses under section 5703 of 
     title 5, United States Code.

     SEC. 1006. TREATMENT OF INFORMATION RELATING TO NATIONAL 
                   SECURITY.

       (a) In General.--(1) The Director of Central Intelligence 
     shall assume responsibility for the handling and disposition 
     of any information related to the national security of the 
     United States that is received, considered, or used by the 
     Commission under this title.
       (2) Any information related to the national security of the 
     United States that is provided to the Commission by a 
     congressional intelligence committee may not be further 
     provided or released without the approval of the chairman of 
     such committee.
       (b) Access After Termination of Commission.--
     Notwithstanding any other provision of law, after the 
     termination of the Commission under section 1007, only the 
     Members and designated staff of the congressional 
     intelligence committees, the Director of Central Intelligence 
     (and the designees of the Director), and such other officials 
     of the executive branch as the President may designate shall 
     have access to information related to the national security 
     of the United States that is received, considered, or used by 
     the Commission.

     SEC. 1007. FINAL REPORT; TERMINATION.

       (a) Final Report.--Not later than September 1, 2003, the 
     Commission shall submit to the congressional intelligence 
     committees, the Director of Central Intelligence, and the 
     Secretary of Defense a final report as required by section 
     1002(h)(2).
       (b) Termination.--(1) The Commission, and all the 
     authorities of this title, shall terminate at the end of the 
     120-day period beginning on the date on which the final 
     report under subsection (a) is transmitted to the 
     congressional intelligence committees.
       (2) The Commission may use the 120-day period referred to 
     in paragraph (1) for the purposes of concluding its 
     activities, including providing testimony to Congress 
     concerning the final report referred to in that paragraph and 
     disseminating the report.

     SEC. 1008. ASSESSMENTS OF FINAL REPORT.

       Not later than 60 days after receipt of the final report 
     under section 1007(a), the Director of Central Intelligence 
     and the Secretary of Defense shall each submit to the 
     congressional intelligence committees an assessment by the 
     Director or the Secretary, as the case may be, of the final 
     report. Each assessment shall include such comments on the 
     findings and recommendations contained in the final report as 
     the Director or Secretary, as the case may be, considers 
     appropriate.

     SEC. 1009. INAPPLICABILITY OF CERTAIN ADMINISTRATIVE 
                   PROVISIONS.

       (a) Federal Advisory Committee Act.--The provisions of the 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the activities of the Commission under this title.
       (b) Freedom of Information Act.--The provisions of section 
     552 of title 5, United States Code (commonly referred to as 
     the Freedom of Information Act), shall not apply to the 
     activities, records, and proceedings of the Commission under 
     this title.

     SEC. 1010. FUNDING.

       (a) Transfer From the Community Management Account.--Of the 
     amounts authorized to be appropriated by this Act for the 
     Intelligence Technology Innovation Center of the Community 
     Management Account, the Deputy Director of Central 
     Intelligence for Community Management shall transfer to the 
     Director of Central Intelligence $2,000,000 for purposes of 
     the activities of the Commission under this title.
       (b) Availability in General.--The Director of Central 
     Intelligence shall make available to the Commission, from the 
     amount transferred to the Director under subsection (a), such 
     amounts as the Commission may require for purposes of the 
     activities of the Commission under this title.
       (c) Duration of Availability.--Amounts made available to 
     the Commission under subsection (b) shall remain available 
     until expended.

      SEC. 1011. DEFINITIONS.

       In this title:
       (1) Congressional intelligence committees.--The term 
     ``congressional intelligence committees'' means--
       (A) the Select Committee on Intelligence of the Senate; and
       (B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (2) Intelligence community.--The term ``intelligence 
     community'' has the meaning given that term in section 3(4) 
     of the National Security Act of 1947 (50 U.S.C. 401a(4)).
       And the Senate agree to the same.

     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Porter J. Goss,
     Doug Bereuter,
     Michael N. Castle,
     Sherwood Boehlert,
     Jim Gibbons,
     Randy ``Duke'' Cunningham,
     Pete Hoekstra,
     Richard Burr,
     Saxby Chambliss,
     Terry Everett,
     Nancy Pelosi,

[[Page H8781]]

     Sanford D. Bishop, Jr.,
     Jane Harman,
     Tim Roemer,
     Silvestre Reyes,
     Leonard L. Boswell,
     Collin C. Peterson,
     From the Committee on Armed Services, for consideration of 
     defense tactical intelligence and related activities:
     Robert Stump,
     Duncan Hunter,
                                Managers on the Part of the House.

     Bob Graham,
     Jay Rockefeller,
     Dianne Feinstein,
     Ron Wyden,
     Dick Durbin,
     John Edwards,
     Richard Shelby,
     Jon Kyl,
     Mike DeWine,
     Fred Thompson,
     Dick Lugar,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4628), to authorize 
     appropriations for fiscal year 2003 for intelligence and 
     intelligence-related activities of the United States 
     Government, the Community Management Account, and the Central 
     Intelligence Agency Retirement and Disability System, and for 
     other purposes, submit the following joint statement to the 
     House and the Senate in explanation of the effect of the 
     action agreed upon by the managers and recommended in the 
     accompanying conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

       The Nation's Intelligence Capabilities--A New Perspective

       The conferees note that, in the wake of the September 11, 
     2001 terrorist attacks, the fiscal year 2003 budget submitted 
     by the President includes the most substantial increase for 
     programs funded in the National Foreign Intelligence Program 
     in history. This authorization bill supports that investment 
     by focusing on authorizations that enhance programs and 
     information sharing across the various Intelligence Community 
     (IC) agencies. Further, the President's funding increase 
     appears to respond to congressional exhortations to develop a 
     long-term funding program to correct serious IC deficiencies 
     that have developed over the past decade. The conferees 
     recognize that these deficiencies existed prior to September 
     11 and, indeed, the intelligence committees have been 
     consistently highlighting these shortfalls for the past eight 
     years. Put simply, although the end of the Cold War warranted 
     a reordering of national priorities, the steady decline in 
     intelligence funding since the mid-1990s left the nation with 
     a diminished ability to address emerging threats--such as 
     global terrorism--and the technical challenges of the 21st 
     Century. Further, the IC's lack of a corporate approach to 
     addressing enduring intelligence problems helped to create a 
     culture that hindered data collection (especially human 
     intelligence collection), data sharing, and collaborative 
     analysis.
       In this budget, the conferees seek to highlight four 
     priority areas that must received significant, sustained 
     attention beginning immediately if intelligence is to fulfill 
     its role in our national security strategy. Those are: (1) 
     improving information sharing and all-source analysis; (2) 
     improving IC professional training with a major emphasis on 
     developing language skills; (3) ensuring national imagery 
     collection program viability and effectiveness; and (4) 
     correcting enduring systemic problems, deficiencies in human 
     intelligence, and rebuilding a robust research and 
     development program.
       The conferees' top priority last year was the 
     revitalization of the NSA. Although this continues to be one 
     of the conferees' priority concerns, the focus this year must 
     be on information sharing and cross-community analysis. The 
     conferees note that the individual intelligence agencies and, 
     moreover, their extremely talented and dedicated people, 
     labor continuously to provide the absolute best intelligence 
     products possible in defense of the nation. These efforts 
     are, however, generally conducted in isolation from one 
     another, and, most disturbingly, existing rules and 
     procedures often restrict information from the community's 
     depth and breadth of analytic talent. Therefore, those 
     individual efforts can usually only piece together fragments 
     of the overall intelligence puzzle. What is critical in the 
     post-9/11 era is having a community that is, to the maximum 
     extent possible, devoid of information sharing restrictions 
     and one that fosters a greater culture focused on 
     collaborative analysis. The conferees have included detailed 
     language on the need for the IC to breakdown information 
     sharing barriers and the need to cease the practice of 
     allowing agencies to routinely restrict ``their data'' from 
     other agencies, including law enforcement.
       In order to maximize the IC's analytic effectiveness and 
     output further, we must ensure that the dedicated 
     professionals of the IC are properly trained and provided the 
     skills necessary for the tasks that are required to fight the 
     global war on terrorism and other emerging threats. For a 
     number of years, the House and Senate Intelligence 
     Committees, separately and jointly, have stated specific 
     concerns about the dearth of language skills throughout the 
     IC. The lack of depth in the so-called `low density' 
     languages was acutely experienced during operations in 
     Afghanistan. The conferees believe this is unacceptable and 
     have put a great deal of emphasis in training efforts, 
     particularly on foreign language training.
       With respect to the nation's imagery architecture, the 
     conferees are very concerned about the viability and 
     effectiveness of a future overhead architecture, given the 
     apparent lack of a comprehensive architectural plan for the 
     overhead system of systems, specifically in the area of 
     imagery. For example, the conferees believe the 
     administration is facing a major challenge in addressing 
     technical and funding problems with the Future Imagery 
     Architecture (FIA) program that could force untenable trades 
     between critical future capabilities and legacy systems. In 
     this conference report, the conferees have addressed the 
     known FIA problems as well as the need to develop imagery 
     alternatives if developmental problems exist or persist. The 
     conferees note, however, a continuing pattern by which many 
     individual programs have been justified and provided 
     resources with little or no regard to the entire set of IC 
     collection capabilities, including space-based and airborne. 
     The conferees believe that, although individual systems may 
     have specific merit, the real measure of merit is in what 
     the overall collective mix brings to bear against the 
     range of threats to U.S. national security. Moreover, the 
     ability to fund all legacy, developmental, and desired 
     systems has a finite limit. Therefore, there is a critical 
     need to review each program in the context of the others, 
     so that viable trades can be made based on substance, and 
     long-term funding of healthy programs can be provided.
       Finally, the conferees have focused their attention for a 
     number of years on a number of enduring IC challenges. Once 
     again, the Conferees have addressed in this bill such issues 
     as the need to improve NSA acquisition efforts, the need to 
     improve the depth and breadth of HUMINT, and improving 
     research and development (R&D). With respect to the NSA, the 
     conferees are pleased with the Director's attempts to 
     baseline current capabilities so that future needs can be 
     properly identified and resulting acquisition decisions made. 
     The conferees have provided incentives to complete these 
     later two efforts. In terms of improving HUMINT, the 
     conferees have focused on improving training, providing 
     technical resources to operations, and properly funding 
     analytic efforts. All of these capabilities are supported by 
     R&D efforts. Therefore, the conferees have supported the 
     administration's increases to agencies' basic R&D programs. 
     The conferees note that this funding support is based on the 
     perspective that the IC must continue to renew itself of the 
     ever-changing world. The new perspective on national security 
     is that intelligence is the first line of defense against an 
     illusive and unstructured threat that uses asymmetric means 
     to harm America. It is from that perspective that the 
     conferees have made the decision contained herein.

                    TITLE I--INTELLIGENCE ACTIVITIES

     Sec. 101. Authorization of appropriations
       Section 101 of the conference report lists the departments, 
     agencies, and other elements of the United States Government 
     for whose intelligence and intelligence-related activities 
     the Act authorizes appropriations for fiscal year 2003.
     Sec. 102. Classified schedule of authorizations
       Section 102 of the conference report makes clear that the 
     details of the amounts authorized to be appropriated for 
     intelligence and intelligence-related activities and 
     applicable personnel ceilings covered under this title for 
     fiscal year 2003 are contained in a classified Schedule of 
     Authorizations. The classified Schedule of Authorizations is 
     incorporated into the Act by this section. The Schedule of 
     Authorizations shall be made available to the Committees on 
     Appropriations of the Senate and House of Representatives and 
     to the President. The classified annex provides details of 
     the Schedule. Section 102 is identical to section 102 of the 
     House bill.
     Sec. 103. Personnel Ceiling Adjustments
       Section 103 of the conference report authorizes the 
     Director of Central Intelligence, with the approval of the 
     Director of the Office of Management and Budget, in fiscal 
     year 2003 to authorize employment of civilian personnel in 
     excess of the personnel ceilings applicable to the components 
     of the Intelligence Community under section 102 by an amount 
     not to exceed two percent of the total of the ceilings 
     applicable under section 102. The Director of Central 
     Intelligence may exercise this authority only if necessary to 
     the performance of important intelligence functions. Any 
     exercise of this authority must be reported to the 
     intelligence committees of the Congress.
       The managers emphasize that the authority conferred by 
     section 103 is not intended

[[Page H8782]]

     to permit wholesale increase in personnel strength in any 
     intelligence component. Rather, the section provides the 
     Director of Central Intelligence with flexibility top adjust 
     personnel levels temporarily for contingencies and for 
     overages caused by an imbalance between hiring new employees 
     and attrition of current employees. The managers do not 
     expect the Director of Central Intelligence to allow heads of 
     intelligence components to plan to exceed levels set in the 
     Schedule of Authorizations except for the satisfaction of 
     clearly identified hiring needs that are consistent with the 
     authorization of personnel strengths in this bill. In no case 
     is this authority to be used to provide for positions denied 
     by this bill. Section 103 is identical to section 103 of the 
     House bill and section 103 of the Senate amendment.
     Sec. 104. Intelligence Community Management Account
       Section 104 of the conference report authorizes 
     appropriations for the Intelligence Community Management 
     Account (CMA) of the Director of Central Intelligence (DCI) 
     and sets the personnel end-strength for the Intelligence 
     Community management staff for fiscal year 2003.
       Subsection (a) authorizes appropriations of $158,254,000 
     for fiscal year 2003 for the activities of the CMA of the 
     DCI.
       Subsection (b) authorizes 322 full-time personnel for the 
     Intelligence Community Management Staff for fiscal year 2003 
     and provides that such personnel may be permanent employees 
     of the Staff or detailed from various elements of the United 
     States government.
       Subsection (c) authorizes additional appropriations and 
     personnel for the CMA as specified in the classified Schedule 
     of Authorizations and permits these additional amounts to 
     remain available through September 30, 2004.
       Subsection (d) requires that, except as provided in Section 
     113 of the National Security Act of 1947, personnel from 
     another element of the United States Government be detailed 
     to an element of the CMA on a reimbursable basis, or for 
     temporary situations of less than one year on a non-
     reimbursable basis.
       Subsection (e) authorizes $34,100,000 of the amount 
     authorized in subsection (a) to be made available for the 
     National Drug Intelligence Center (NDIC). Subsection (e) 
     requires to DCI to transfer these funds to the Department of 
     Justice to be used for NDIC activities under the authority of 
     the Attorney General and subject to section 103(d)(1) of the 
     National Security Act. Subsection (e) is similar to 
     subsection (e) of the House bill.
     Sec. 105. Authorization of emergency supplemental 
         appropriations for fiscal year 2002
       Section 105 is identical to Section 105 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 106. Additional authorizations of appropriations for 
         intelligence for the war on terrorism
       Section 106 is identical to Section 106 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 107. Specific authorization of funds for intelligence or 
         intelligence-related activities for which fiscal year 
         2003 appropriations exceed amounts authorized
       Section 107 authorizes, solely for the purposes of 
     reprogramming under Section 504(a)(3) of the National 
     Security Act of 1947 (50 U.S.C. 414(a)(3)) those funds 
     appropriated for an intelligence or intelligence-related 
     activity in fiscal year 2003 in excess of the amount 
     specified for such activity in the classified Schedule of 
     Authorizations to accompany this conference report.
     Sec. 108. Incorporation of reporting requirements
       Section 108 is similar to Section 105 of the Senate 
     amendment. The House bill had no similar provision. Section 
     107 incorporates into the Act each requirement to submit a 
     report contained in the joint explanatory statement to 
     accompany the conference report or in the classified annex to 
     the Act.
     Sec. 109. Preparation and submittal of reports, reviews, 
         studies, and plans relating to intelligence activities of 
         Department of Defense or Department of Energy
       Section 109 is identical to Section 106 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     Sec. 201. Authorization of appropriations
       Section 201 authorizes appropriations of $225,500,000 for 
     the Central Intelligence Agency Retirement and Disability 
     Fund.

                     TITLE III--GENERAL PROVISIONS

                   Subtitle A--Intelligence Community

     Sec. 301. Increase in employee compensation and benefits 
         authorized by law
       Section 301 is identical to Section 301 of the Senate 
     amendment and Section 301 of the House bill.
     Sec. 302. Restriction of conduct of intelligence activities
       Section 302 is identical to Section 302 of the Senate 
     amendment and Section 302 of the House bill.
     Sec. 303. Sense of Congress on Intelligence Community 
         contracting
       Section 303 is identical to Section 303 of the Senate 
     amendment. The House bill had no similar provision. The 
     Senate recedes.

                        Subtitle B--Intelligence

     Sec. 311. Specificity of National Foreign Intelligence 
         Program budget amounts for counterterrorism, 
         counterproliferation, counternarcotices, and 
         counterintelligence
       Section 311 is identical to section 304 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 312. Prohibition on compliance with request for 
         information submitted by foreign governments
       Section 312 is identical to Section 307 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 313. National Virtual Translation Center
       Section 313 is identical to Section 311 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.

                         Subtitle C--Personnel

     Sec. 321. Standards and qualifications for the performance of 
         intelligence activities
       Section 321 is similar to Section 308 of the Senate 
     amendment. The House bill had no similar provisions. The 
     House recedes.
     Sec. 322. Modification of accepted agency voluntary leave 
         transfer authority
       Section 322 is similar of Section 305 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 323. Sense of Congress on diversity in the workforce of 
         intelligence community agencies
       Section 323 is identical of Section 312 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 324. Annual report on hiring and retention of minority 
         employees in the intelligence community
       Section 324 is identical to Section 313 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 325. Report on establishment of a civilian linguist 
         reserve corps
       Section 325 is identical 311 of the House bill. The Senate 
     amendment had no similar provision. The Senate recedes.

                         Subtitle D--Education

     Sec. 331. Scholarships and work study for pursuit of graduate 
         degrees in science and technology
       Section 331 is identical to Section 310 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 332. Cooperative relationship between the national 
         security education program and the foreign language 
         center of the defense language institute
       Section 332 is identical to Section 308 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 333. Establishment of a national flagship language 
         initiative within the National Security Education Program
       Section 333 includes Section 309 of the House bill. Section 
     309 of the Senate amendment also created a national foreign 
     language initiative. The Senate recedes.
     Sec. 334. Report on the National Security Education Program
       Section 334 is similar to the reporting requirement of 
     Section 309 of the Senate amendment. Section 334 requires the 
     Secretary of Defense to submit a report in 180 days after 
     enactment of the program of scholarship, fellowships, and 
     grants under the David L. Boren National Security Education 
     Act of 1991, including an assessment of the effectiveness of 
     the program in meeting its goals and its administrative 
     costs, and the advisability of converting funding of the 
     program from funding through the National Security Education 
     Trust Fund to funding through appropriations.

                         Subtitle E--Terrorism

     Sec. 341. Foreign Terrorist Asset Tracking Center
       Section 341 is identical to Section 312 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 342. Semiannual Report on Financial Intelligence on 
         Terrorist Assets (FITA)
       Section 342 is identical to Section 304 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 343. Terrorist Identification Classification System
       Section 343 is identical to Section 313 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.

                       Subtitle F--Other Matters

     Sec. 351. Additional one-year suspension of reorganization of 
         Diplomatic Telecommunications Service Program Office
       Section 351 is identical to Section 306 of the House bill 
     and similar to Section 316 of the Senate amendment. The 
     Senate recedes.
     Sec. 352. Standardized transliteration of names into the 
         roman alphabet
       Section 352 is similar to Section 307 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes with modifications.
     Sec. 353. Definition of congressional intelligence committees 
         in National Security Act of 1947
       Section 353 is similar to Section 303 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes with modifications.

[[Page H8783]]

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     Sec. 401. Two-year extension of Central Intelligence Agency 
         Voluntary Separation Pay Act
       Section 401 is identical to Section 401 of the House bill 
     and Section 315 of the Senate amendment.
     Sec. 402. Implementation of compensation reform plan
       Section 402 is similar to Section 402 of the House bill. 
     The Senate amendment had no similar provision. Section 402 
     delays implementation of the Central Intelligence Agency's 
     proposed compensation reform plan until February 1, 2004 or 
     the submission of a report on a compensation pilot project, 
     whichever is later. The Director of Central Intelligence 
     shall conduct the pilot project to assess the efficacy and 
     fairness of a revised personnel compensation plan, and report 
     to the congressional intelligence committees 45 days after 
     completion of the pilot project. Section 402 includes a sense 
     of the Congress that an employee personnel evaluation 
     mechanism with evaluation training for managers and employees 
     of the CIA and the National Security Agency should be phased 
     in first, and then followed by the introduction of a new 
     compensation plans.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

     Sec. 501. Use of funds for counterdrug and counterterrorism 
         activities for Colombia
       Section 501 is similar to Section 501 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 502. Protection of operational files of the National 
         Reconnaissance Office
       Section 502 is identical to Section 502 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.
     Sec. 502. Eligibility of employees in intelligence senior 
         level positions for Presidential rank awards.
       Section 503 is identical to Section 503 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.

           TITLE VI--NATIONAL COMMISSION ON TERRORIST ATTACKS

       Title VI is substantially similar to Title VI of the House 
     bill as well as language found in Senate amendment 4694 to 
     H.R. 5005, a bill to establish the Department of Homeland 
     Security

                     TITLE VII--INFORMATION SHARING

       Title VII is similar to Title VII of the House bill and 
     H.R. 4598, the Homeland Security Information Sharing Act, 
     which passed the House on June 26, 2002 in a 422-2 vote. 
     Title VII is also similar to sections 891-894 of H.R. 5710, 
     establishing the Department of Homeland Security, which 
     passed the House on November 13, 2002. Section 706 has been 
     add by the conferees to coordinate the different versions of 
     the Homeland Information Sharing Act, which are found in this 
     bill and in H.R. 5710.
       The Senate amendment had no similar provision. The Senate 
     recedes.

                   TITLE VIII--REPORTING REQUIREMENTS

                      Subtitle A--Overdue Reports

     Sec. 801. Deadline for submittal of various overdue reports
       Section Section 801 is similar to Section 310 of the House 
     bill. Section 801 reduces by one-third the amounts available 
     to be obligated or expended by the Office of the Director of 
     Central Intelligence if certain reports are not submitted to 
     the Congress 180 days after enactment. The reports referred 
     to in this section are reports mandated by law for which the 
     DCI has sole or primary responsibility to prepare or 
     coordinate and submit to Congress, which, as of the date of 
     enactment, have not been submitted to Congress if mandated to 
     be submitted prior to the date of enactment. The fence will 
     not be imposed if the DCI certifies in writing to the 
     intelligence committees that all overdue reports specified in 
     Section 801 are completed. The Senate amendment had no 
     similar provision. The Senate recedes.

      Subtitle B--Submittal of Reports to Intelligence Committees

     Sec. 811. Dates for submittal of various annual and semi-
         annual reports to the congressional intelligence 
         committees
       Section 811 is similar to Section 401 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes with modifications.

                  Subtitle C--Recurring Annual Reports

     Sec. 821. Annual report on threat of attack on the United 
         States using weapons of mass destruction
       Section 821 is identical to Section 412 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 822. Annual report on convert leases
       Section 822 is identical to Section 413 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 823. Annual report on improvement of financial 
         statements of certain elements of the Intelligence 
         Community for auditing purposes
       Section 823 is identical to Section 414 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 824. Annual report on activities of Federal Bureau of 
         Investigation personnel outside the United States
       Section 824 is identical to Section 415 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 825. Annual reports of Inspectors General of the 
         Intelligence Community on proposed resources and 
         activities of their offices
       Section 825 is identical to Section 416 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 826. Annual report on counterdrug intelligence matters
       Section 826 is identical to Section 417 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 827. Annual report on foreign companies involved in the 
         proliferation of weapons of mass destruction that raise 
         funds in the United States capital markets
       Section 827 is identical to Section 314 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.

                       Subtitle D--Other Reports

     Sec. 831. Report on effect of country-release restrictions on 
         allied intelligence-sharing relationships
       Section 831 is identical to Section 431 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 832. Evaluation of policies and procedures of Department 
         of State on protection of classified information at 
         department headquarters
       Section 832 is identical to Section 432 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.

           Subtitle E--Repeal of Certain Report Requirements

     Sec. 841. Repeal of certain report requirements
       Section 841 is substantially similar to Section 441 of the 
     Senate amendment, although the conferees have agreed to 
     repeal certain additional Intelligence Community reporting 
     requirements. The House bill had no similar provision. The 
     House recedes with modifications.

                TITLE IX--COUNTERINTELLIGENCE ACTIVITIES

     Sec. 901. Short title; purpose
       Section 901 is identical to Section 501 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 902. National counterintelligence executive
       Section 902 is identical to Section 502 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 903. National Counterintelligence Policy Board
       Section 903 is identical to Section 503 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 904. Office of the National Counterintelligence 
         Executive
       Section 904 is similar to Section 504 of the Senate 
     amendment. The House bill had no similar provision. The 
     conferees agree to place the Office of the National 
     Counterintelligence Executive within the Office of the 
     Director of Central Intelligence. Further, the provision 
     makes clear that nothing in this section shall be construed 
     as affecting the authority of the Director of Central 
     Intelligence, the Secretary of Defense, the Secretary of 
     State, the Attorney General, or the Director of the FBI as 
     provided or specified under the National Security Act of 1947 
     or under other provisions of law. The House recedes with 
     modifications.

  TITLE X--NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT 
          PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY

     Sec. 1001. Findings
       Section 1001 is identical to Section 601 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 1002. National Commission for review of research and 
         development programs of the United States Intelligence 
         Community
       Section 1002 is identical to Section 602 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 1003. Powers of Commission
       Section 1003 is identical to Section 603 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 1004. Staff of Commission
       Section 1004 is identical to Section 604 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 1005. Compensation and travel expenses
       Section 1005 is identical to Section 605 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.
     Sec. 1006. Treatment of information relating to national 
         security
       Section 1006 is identical to Section 606 of the Senate 
     amendment. The House bill has no similar provision. The House 
     recedes.
     Sec. 1007. Final report; termination
       Section 1007 is identical to Section 607 of the Senate 
     amendment. The House bill has no similar provision. The House 
     recedes.
     Sec. 1008. Assessments of final report
       Section 1008 is identical to Section 608 of the Senate 
     amendment. The House bill has no similar provision. The House 
     recedes.
     Sec. 1009. Inapplicability of certain administrative 
         provisions
       Section 1009 is identical to Section 609 of the Senate 
     amendment. The House bill has no similar provision. The House 
     recedes.

[[Page H8784]]

     Sec. 1010. Funding
       Section 1010 is identical to Section 610 of the Senate 
     amendment. The House bill has no similar provision. The House 
     recedes.
     Sec. 1011. Definitions
       Section 1011 is identical to Section 611 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


                           Items Not Included

       Section 305 of the Senate amendment contained a provision 
     to clarify Section 504 of the National Security Act of 1947 
     with respect to the reprogramming of funds from one 
     intelligence activity to another. The House bill had no 
     similar provisions. The Senate recedes.
       Section 306 of the Senate amendment required disclosure to 
     Congress of information regarding pending criminal 
     investigations and prosecutions that is currently subject to 
     statutory and other disclosure prohibitions, such as grand 
     jury matters under Rule 6(e) of the Federal Rules of Criminal 
     Procedure, communications intercepted under Title III 
     domestic wiretap provisions, and other sensitive law 
     enforcement information. The House bill had no similar 
     provisions. The Senate recedes.

     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Porter J. Goss,
     Doug Bereuter,
     Michael N. Castle,
     Sherwood Boehlert,
     Jim Gibbons,
     Randy ``Duke'' Cunningham,
     Pete Hoekstra,
     Richard Burr,
     Saxby Chambliss,
     Terry Everett,
     Nancy Pelosi,
     Sanford D. Bishop, Jr.,
     Jane Harman,
     Tim Roemer,
     Silvestre, Reyes,
     Leonard L. Boswell,
     Collin C. Peterson,
     From the Committee on Armed Services, for consideration of 
     defense tactical intelligence and related activities:
     Robert Stump,
     Duncan Hunter,
                                Managers on the Part of the House.

     Bob Graham,
     Jay Rockefeller,
     Dianne Feinstein,
     Ron Wyden
     Dick Durbin,
     John Edwards,
     Richard Shelby,
     Jon Kyl,
     Mike DeWine,
     Fred Thompson,
     Dick Lugar,
                               Managers on the Part of the Senate.