[Senate Report 107-239]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 549
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-239
_______________________________________________________________________



              CYBER SECURITY RESEARCH AND DEVELOPMENT ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                S. 2182




                  August 1, 2002.--Ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-010                    WASHINGTON : 2002


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred seventh congress
                             second session

              ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West         TED STEVENS, Alaska
    Virginia                         CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts         TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana            KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon                    SAM BROWNBACK, Kansas
MAX CLELAND, Georgia                 GORDON SMITH, Oregon
BARBARA BOXER, California            PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina         JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri              GEORGE ALLEN, Virginia
BILL NELSON, Florida
                     Kevin D. Kayes, Staff Director
                       Moses Boyd, Chief Counsel
                      Gregg Elias, General Counsel
      Jeanne Bumpus, Republican Staff Director and General Counsel
             Ann Begeman, Republican Deputy Staff Director

                                                       Calendar No. 549
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-239

======================================================================


 
              CYBER SECURITY RESEARCH AND DEVELOPMENT ACT

                                _______
                                

                 August 1, 2002.--Ordered to be printed

                                _______
                                

      Mr. Hollings, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2182]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2182) to authorize funding for 
computer and network security research and development and 
research fellowship programs, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill, as amended, do pass.

                          Purpose of the Bill

  The purpose of the bill, as reported, is to establish and 
authorize funding for programs at the National Science 
Foundation (NSF) and the National Institute of Standards and 
Technology (NIST) and to better coordinate information 
technology security research among government, industry and 
academia.

                          Background and Needs

    With the advent of high-speed access to the Internet, 
computer networks are growing in size and complexity, creating 
new opportunities for those who would mount malicious computer 
attacks. At the same time, computer hacking is no longer the 
sole realm of computer geniuses. Instructions (known as 
scripts) for exploiting vulnerabilities of computer systems are 
widely available to anyone with access to the Internet. In some 
cases, all that is needed to launch an attack is a website 
address. Moreover, while some vulnerabilities are well known, 
the companies and individuals who own computers connected to 
the Internet do not always fix (or ``patch'') obvious security 
holes, even when the ``patch'' is free and easy to install.
    Computer attacks not only threaten the integrity of systems 
and data connected to the Internet, but also have the effect of 
undermining public trust in Internet-based electronic commerce, 
potentially hindering its further development and adoption. If 
Internet usage is to continue its growth, businesses and 
consumers must have confidence in the security of their 
information and the identity of the person or company with whom 
they are engaging in commerce or conversation. The threat of 
malicious hacking--and media coverage of high profile computer 
attacks--has the potential to disturb that trust and the future 
growth of the Internet and electronic commerce.
    It is not just our economic security that is vulnerable to 
cyber attack. Critical infrastructures, which are increasingly 
reliant on the Internet for exchange of data and control 
functions, also are highly susceptible. For example, the 
systems that control floodgates for dams or distribution of 
power are accessible via the Internet. Additionally, the 
potential threat from terrorist hackers (cyber terrorists) to 
the Federal government's strategic military systems is real. 
Security experts note that Department of Defense systems face 
daily attacks, many of which originate on foreign-based 
computers.
    Despite these enormous challenges, however, the United 
States has failed to conduct an adequate program of world-
class, basic research needed to address cyber security needs. 
While a number of information technology companies support 
research and development (R&D) on network security, 
inadequacies in our security arsenal cannot be addressed solely 
through short-term industry-based applied research. Industry 
relies heavily on the fundamental research supported by the 
Federal government and the training of future researchers, 
including computer scientists, mathematicians, and many others, 
that Federally funded research programs support.
    Unfortunately, with the possible exception of encryption-
related research, cyber security research is under-funded, and 
basic research into the fundamental technological cyber 
security challenges is not sufficient to support the Nation's 
needs. Many experts believe that because of these historic 
funding patterns, there is a severe shortage of researchers in 
the country with the experience and expertise needed to conduct 
cutting-edge research in cyber security. For example, experts 
estimate that there are currently only a total of 45 to 75 
cyber security researchers nationwide, compared to 60 or more 
faculty members per computer science department at typical 
United States research universities.
    This shortage of personnel is not merely a problem for the 
academic and research community. Federal agencies are finding 
it increasingly difficult to recruit and hire professional 
staff with the knowledge and experience needed to analyze risks 
and manage and secure their own computer networks.
    S. 2182 would substantially increase the government's 
commitment to cyber security research and development by 
creating a broad program of cyber security R&D at NSF and NIST. 
The program would support R&D, student scholarships, improved 
faculty development, and upgrades of networks and facilities. A 
broad range of institutions would be able to participate, 
including institutions of higher education (as well as, 
consortia thereof and community colleges), non-profits, 
governmental laboratories, and private industry.

                          Legislative History

    On July 16, 2001, and April 24, 2002, the Subcommittee on 
Science, Technology, and Space conducted hearings on cyber 
security. At the July 16, 2001, hearing entitled ``Holes in the 
Net: Security Risk and the E-Consumer,'' witnesses included: 
Dr. Vinton G. Cerf, Senior Vice President, Internet 
Architecture and Technology, WorldCom; Mr. Harris N. Miller, 
President, Information Technology Association of America; and 
Mr. Bruce Schneier, Chief Technical Officer, Counterpane 
Internet Security, Inc. At the April 24, 2002, hearing, 
entitled ``Homeland Security and the Technology Sector,''which 
focused on both S. 2182 and S. 2037, witnesses included: The 
Honorable Sherwood Boehlert, Chairman of the House Science 
Committee; Dr. George Strawn, Acting Assistant Director for 
Computer Information Science and Engineering at the National 
Science Foundation; Dr. Lance Hoffman, Department of Computer 
Science, George Washington University; Mr. W. Wyatt Starnes, 
President and Chief Executive Officer, Tripwire, Inc.; and Mr. 
Ronil Hira, Chairman of the Research and Development Policy 
Committee of the Institute of Electrical and Electronics 
Engineers.
    On April 17, 2002, Senator Wyden, Chairman of the 
Subcommittee on Science, Technology, and Space, introduced S. 
2182, the Cyber Security Research and Development Act.
    On May 17, 2002, the Committee met in open executive 
session and, by a voice vote, ordered S. 2182 to be reported 
with a substitute amendment offered by Senator Wyden and 
Senator Edwards. The substitute included provisions from 
Senator Edwards's cyber security bills, S. 1900 and S. 1901, 
dealing with: (1) the establishment of an NSF program of 
forgivable loans to doctoral students in cyber security who 
agree to teach for 5 years; and (2) the development of 
information security benchmarks by NIST which will be 
implemented by Federal agencies. In addition, the substitute 
included provisions to enhance ethnic and racial diversity as a 
goal in NSF's new cyber security programs. The substitute also 
contained provisions to raise the profile of NIST's Computer 
Security Division to allow for cost sharing of new NIST grants, 
and to allow for a discretionary Director's Fund to permit NIST 
to fund promising projects in a more expeditious manner.
    On February 7, 2002, the House of Representatives passed 
the companion measure to S. 2182, H.R. 3394, which was 
subsequently received in the Senate and referred to the 
Committee.

                      Summary of Major Provisions


                    AUTHORIZATION OF APPROPRIATIONS

    S. 2182, as reported, would authorize appropriations to NSF 
and NIST for cyber security R&D. A total of $126.56 million 
would be authorized to be appropriated in fiscal year (FY) 
2003, increasing to $249.05 million by FY 2007, for a 5-year 
total of $978.65 million.

                              NSF PROGRAMS

    At the NSF, S. 2182, as reported, would establish and 
authorize: (1) merit-based grants in cyber security that would 
support innovative approaches from individual researchers to 
enhance cyber security; (2) Centers for Computer and Network 
Security Research, which would generate innovative approaches 
to computer security by conducting cutting-edge, multi-
disciplinary research; (3) capacity building grants to 
institutions to improve their undergraduate or master's cyber 
security programs; (4) grants to improve cyber security 
education at community colleges as part of NSF's existing 
program pursuant to the Scientific and Advanced Technology Act 
of 1992, (46 U.S.C. 1862i); (5) graduate traineeships in 
computer and network security, which are merit-based grants to 
institutions to award fellowships to students pursuing cyber 
security doctoral degrees; (6) the inclusion of cyber security 
as an approved field of specialization supported by the 
Graduate Research Fellowships Program established under section 
10 of NSF's Organic Act (42 U.S.C. 1869); and (7) a cyber 
security faculty development program to award merit-based 
grants to institutions that would award fellowships, in the 
form of loans, to students pursuing cyber security doctoral 
degrees, where 20 percent of the loan would be forgiven for 
each year the fellow remains a full time faculty professor in 
the cyber security field upon graduation.

                             NIST PROGRAMS

    At NIST, S. 2182, as reported, would establish and 
authorize: (1) grants to colleges and universities that partner 
with for-profit entities to support long-term cyber security 
research; (2) research fellowships for post-doctoral students 
in cyber security, information technology, or related fields 
wishing to transfer into the cyber security field; (3) 
development of benchmark cyber security standards for Federal 
agencies; and (4) establishment of an Office for Information 
Security Programs, headed by a Director who reports directly to 
the NIST Director.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 28, 2002.
Hon. Ernest F. Hollings,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S.2182, the Cyber 
Security Research and Development Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contracts are Kathleen 
Gramp and Ken Johnson.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               Congressional Budget Office Cost Estimate


S. 2182--Cyber Security Research and Development Act

    Summary: S. 2182 would authorize, appropriations for 
several research initiatives related to computer security at 
two agencies--the National Science Foundation (NSF) and the 
National Institute of Standards and Technology (NIST). The bill 
would establish the terms and conditions for awarding grants, 
fellowships, cooperative agreements, and loans for certain 
doctoral fellowship related to computer security, and would 
authorize NIST to conduct similar research at its laboratories. 
It would authorize the appropriation of $978 million over the 
2002-2007 period for these activities. This total would include 
funding for the ongoing activities of the Computer System 
Security and Privacy Advisory Board and a study by the National 
Academy of Sciences on the vulnerability of nation's computer 
network infrastructure.
    Assuming appropriation of the specified amounts, CBO 
estimates that implementing this bill would cost $671 million 
over the 2002-2007 period. the bill would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply.
    S. 2182 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: the estimated 
budgetary impact of S. 2182 is shown in the following table. 
The costs of this legislation fall within budget functions 250 
(general science, space, and technology) and 370 (commerce and 
housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in million of dollars--
                                                             ---------------------------------------------------
                                                               2002    2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

National Science Foundation: \1\
    Authorization Level.....................................      0       78      110      128      134      142
    Estimated Outlays.......................................      0       15       58       93      114      125
National Institute of Standards and Technology: \2\
    Authorization Level.....................................      2       47       62       76       92      107
    Estimated Outlays.......................................      0       23       37       53       69       84
Total Changes:
    Authorization Level.....................................      2      125      172      204      226      249
    Estimated Outlays.......................................      0       38       95      146      183      209
----------------------------------------------------------------------------------------------------------------
\1\ NSF has a total appropriation of $4.9 billion in 2002.
\2\ Thus far, NIST has a total appropriation of $680 million in 2002.

    Basis of estimate: S. 2182 would authorize the 
appropriation of $592 million for NSF and $386 million for NIST 
over the 2002-2007 period for these agencies to carry out a 
variety of grant, fellowship, loan, and other programs related 
to research on computer security. Based on the spending 
patterns of similar NSF and NIST programs, CBO estimates that 
implementing the bill would cost NSF and about $405 million and 
NIST about $266 million over the 2002-2007 period, assuming the 
appropriation of the authorized amounts. For this estimate, CBO 
assumes that funds will be appropriated near the beginning of 
each fiscal year, with the exception of the $2 million 
authorization for NIST in 2002 (which we assume will be 
provided this summer).
    CBO expects that the doctoral fellowships authorized by 
this bill would be treated as direct loans and would be subject 
to credit reform procedures. S. 2182 would require that such 
fellowships be repaid but would forgive specified amounts if 
the recipient is employed as a full-time faculty member. For 
this estimate, CBO assumes that NSF would use the $5 million 
authorized annually for these fellowships to cover the subsidy 
cost of such loans.
    Pay-as-you-go considerations: None.
    Estimated impact on state, local, and tribal governments: 
S. 2182 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments. The bill would benefit public universities by 
authorizing the appropriation of $978 million, much of which 
would be for grant programs to institutions of higher 
education, including public universities, for a number of 
projects aimed at improving computer and network security. Any 
costs incurred by public universities would be voluntary.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Previous CBO estimate: On December 17, 2001, CBO 
transmitted a cost estimate for H.R. 3394, the Cyber Security 
Research and Development Act, as ordered reported by the House 
Committee on Science on December 6, 2001. H.R. 3394 is very 
similar to S. 2182, although H.R. 3394 would authorize the 
appropriation of $878 million over the 2002-2007 period. CBO 
estimated that implementing H.R. 3394 would cost $420 million 
during the 2002-2006 period, assuming the appropriation of the 
necessary amounts.
    Estimate prepared by: Federal costs: Kathleen Gramp (NSF) 
and Ken Johnson (NIST); impact on state, local, and tribal 
governments: Elyse Goldman; impact on the private sector: Cecil 
McPherson.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

    The Committee believes that the bill would not subject any 
individuals or businesses affected by the legislation to any 
additional regulation. Neither NSF nor NIST are regulatory 
agencies; therefore they have no regulatory authority. Section 
8(c) of the bill would require NIST to adopt Federal agency 
benchmark security standards to be implemented by Federal 
civilian agencies. The standards would not directly impose any 
requirements on individuals or businesses to further 
regulation.

                            ECONOMIC IMPACT

    This legislation would not have an adverse economic impact 
on the Nation. It would authorize significant funding for 
research and development in computer and information security, 
promoting sustained economic growth through better protection 
of our critical infrastructures that have become increasingly 
dependent on electronic networks. In addition, this legislation 
would significantly enhance the growth and development of the 
computer and information security field in this country.

                                PRIVACY

    S. 2182 would not have a negative impact on the personal 
privacy of individuals. The purpose of this legislation is to 
support research and development in information security, which 
should lead to increased protection for personal data stored on 
computer networks.

                               PAPERWORK

    This legislation would not increase paperwork requirements 
for private individuals or businesses. It would require four 
Federal reports: (1) within 180 days of enactment, the Director 
of NIST must submit a report to the Senate Committee on 
Commerce, Science, and Transportation, the House Committee on 
Science, and the House and Senate Appropriations Committees 
identifying specific Federal agency benchmark security 
standards that should be developed over the following 12 month 
period, and recommending, in consultation with the Office of 
Management and Budget any additional funding that may be 
necessary; (2) not later than 1 year after the date of the 
report referred to above, the Director of NIST, in consultation 
with appropriate public and private entities, must submit a 
follow-up report containing recommendations for specific, 
reasonable Federal agency benchmark security standards to the 
Secretary of Commerce and the Chairman of the Federal Chief 
Information Officers (CIOs) Council. The Director of NIST shall 
review the recommended standards not less than once every 6 
months and update such standards or issue new standards as 
necessary. The Director is not prohibited from updating any 
portion of such recommended standards more frequently if 
circumstances so require. The Secretary of Commerce shall 
widely disseminate the report, along with any updates; (3) not 
later than 36 months after the date of enactment, the Chairman 
of the Federal CIOs Council must submit a report to Congress 
describing the status of, costs associated with, and barriers 
to implementation of the Federal agency benchmark security 
standards at each agency/department of the government; and (4) 
within 3 months after the date of enactment, NIST must arrange 
for the National Academy of Sciences to conduct a study to 
examine the impact of requiring Federal agencies to implement 
benchmark security standards on national cyber security 
preparedness. NIST would be directed to transmit the report 
containing the results of the study to Congress not later than 
21 months after the date of enactment of this Act.
    S. 2182, as reported, would also require the Chairman of 
the Federal CIOs Council to provide to the NIST Director a 
classified list of current Federal government security 
standards not later than 90 days after the date of enactment.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 would give the short title of the bill, the 
``Cyber Security Research and Development Act.''

Section 2. Findings

    Section 2 presents the findings concerning: the 
interdependent nature of critical infrastructures brought about 
by advancements in computing and communications technology; the 
increased consequences of failure of communications and 
computer systems stemming from exponential increases in 
interconnectivity; the Nation's lack of preparedness for a 
coordinated cyber and physical attack; the shortage of 
outstanding researchers in the field of cyber security; the 
lack of coordination among government, academia, and industry 
for computer security; the need to significantly increase the 
Federal investment in computer and network security research 
and development; and the level of minority participation in the 
United States computer and information science workforce.

Section 3. Definitions

    Section 3 includes the following definitions: (1) the term 
``Director'' means the Director of the National Science 
Foundation (NSF), except in section 8 where it refers to the 
Director of the National Institute for Standards and Technology 
(NIST); (2) the term ``institution of higher education'' is 
given the meaning found in the Higher Education Act of 1965; 
and (3) ``Federal agency benchmark security standards'' means a 
baseline minimum security configuration for specific computer 
hardware or software components, an operational procedure or 
practice, or organizational structure that increases the 
security of the information technology assets of an agency or 
department of the Federal government.

Section 4. National Science Foundation research

    Section 4(a) would establish an NSF program to award merit-
reviewed, competitively based grants for basic research on 
innovative approaches to enhance computer security. Research 
areas include authentication and cryptography; computer 
forensics and intrusion detection; reliability of computer and 
network applications, middleware, operating systems, and 
communications infrastructure; privacy and confidentiality; 
network security architecture, including tools for security 
administration and analysis such as firewall technology; 
emerging threats, including malicious such as viruses and 
worms; vulnerability assessments; operations and control 
systems management; management of interoperable digital 
certificates or digital watermarking; and remote access and 
wirelesssecurity. This subsection would also authorize 
appropriations of $35 million for FY 2003, $40 million for FY 2004, $46 
million for FY 2005, $52 million for FY 2006, and $60 million for FY 
2007.
  Section 4(b) would establish an NSF program to award multi-
year grants to institutions of higher education (or consortia 
thereof) to establish multidisciplinary Centers for Computer 
and Network Security Research. Institutions (or consortia) 
receiving grants may partner with one or more government 
laboratories or for-profit institutions. Applications for these 
grants would be reviewed on the basis of the ability of the 
institution (or consortium) to generate innovative approaches 
to computer and network security research; the applicant's 
experience in conducting research on computer and network 
security and capacity to foster new multi-discipline 
collaborations; the applicant's support for students pursuing 
research in computer and network security; and the extent to 
which government laboratories or industry partners will 
participate in the Center's research activities. This 
subsection would require the Director to convene an annual 
meeting of Centers to foster greater collaboration and 
communication. Appropriations of $12 million for FY 2003, $24 
million for FY 2004, $36 million for FY 2005, $36 million for 
FY 2006, and $36 million for FY 2007 would be authorized.

Section 5. National Science Foundation Computer and Network Security 
        programs

  Section 5(a) (capacity building) would establish a 
competitive, merit-based NSF program to award grants to 
institutions of higher education (or consortia thereof) to 
create or improve undergraduate and master's degree programs in 
computer security. Grants would be used for purposes including 
curriculum development, equipment acquisition, faculty 
enhancement, and the establishment of a student internship 
program in government or industry. Applicants must describe the 
plan for building increased capacity in computer and network 
security, must articulate the roles and responsibilities of 
each partnering institution or collaborative group, and must 
provide evidence of high potential for success in educating and 
placing students in relevant jobs or graduate programs. The 
Director would be required to evaluate the impact of the 
program on increasing the quality and quantity of computer and 
network security professionals not later than 5 years after 
establishment. The program would authorize $15 million for FY 
2003 and $20 million for each of fiscal years 2004-2007.
  Section 5(b) would expand NSF's existing program for 
community colleges (established by the Scientific and Advanced 
Technology Act of 1992, P.L. 102-476) to include grants to 
improve education in fields related to computer and network 
security. It would authorize $1 million for FY 2003 and $1.25 
million for each of fiscal years 2004-2007.
  Section 5(c) (Graduate Traineeships in Computer and Network 
Security Research) would establish a competitive, merit-based 
NSF program to award grants to institutions of higher education 
to establish traineeship programs for graduate students 
pursuing studies in computer and network security research 
leading to a doctorate degree. Grant funds would be used to 
support student fellowships of at least $25,000 per year to pay 
student tuition and fees, and to support students in scientific 
internship programs. Appropriations of $10 million for FY 2003, 
and $20 million for each of fiscal years 2004-2007 would be 
authorized.
  Section 5(d) would direct NSF to include computer and network 
security as an approved field of specialization under its 
current Graduate Research Fellowships program.
  Section 5(e) (Cyber Security Faculty Development Fellowship 
Program) would establish an NSF program to award grants to 
institutions of higher learning to establish traineeship 
programs to enable graduate students to pursue academic careers 
in cyber security upon completion of doctoral degrees. Funds 
received by an institution would be made available to fellows, 
in the form of loans, for up to 5 years on a merit-reviewed, 
competitive basis to cover tuition and fees for doctoral study 
and a $25,000 per year stipend. Loans would be forgiven at 20% 
for each year the fellow is employed as a full-time faculty 
member at an institution, thereby forgiving the loan in total 
if the fellow teaches for 5 years. Appropriations of $5 million 
per year for fiscal years 2003-2007 would be authorized.

Section 6. Consultation

  Section 6 would require the NSF Director to consult with 
other Federal agencies in carrying out the programs described 
in Sections 4 and 5.

Section 7. Fostering research and education in computer and network 
        security

  Section 7 of the bill would amend the National Science 
Foundation Act of 1950 to require NSF to take a leading role in 
fostering and supporting research and education in computer and 
network security.

Section 8. National Institute of Standards and Technology research 
        program

  Section 8(a) would amend the National Institute of Standards 
and Technology Act by creating a new section 22 to establish a 
program that provides assistance to institutions of higher 
education that partner with for-profit entities to support 
multidisciplinary, long-term research to improve the security 
of computer systems. Partnerships may also include government 
laboratories.
  The new section 22(b) would authorize the NIST Director to 
award research fellowships to post-doctoral researchers engaged 
in computer security research and to senior researchers who 
wish to transition from other research fields to computer 
security research. The new section 22(c) would authorize the 
Director to award grants or cooperative agreements and would 
set forth applicant eligibility requirements.
  The new section 22(d) would require cost-sharing (up to 50%) 
by the for-profit entities pursuant to a sliding scale, with 
the least amount required for projects that will be broadly 
applicable and widely shared. The new section 22(e) would 
instruct the NIST Director to select program managers who are 
responsible for establishing the research goals for the 
program, soliciting applications for specific research projects 
to address these goals, and selecting research projects for 
funding. The new section 22(f) would give the NIST Director the 
responsibility of reviewing, periodically, the portfolio of 
research awards in consultation with NIST's existing Computer 
System Security and Privacy Advisory Board. The Director would 
also be instructed to contract with the National 
ResearchCouncil to conduct a formal review of the program during its 
fifth year and to submit a report of this review to Congress no later 
than 6 years after the initiation of the program.
  Section 8(b) would amend the definition of Computer System by 
amending Section 20(d)(1)(B)(i) of the NIST Act to read 
``computers and computer networks.''
  Section 8(c)(1) would require the Director of NIST to submit 
a report to the Senate Committee on Commerce, Science, and 
Transportation; the House Committee on Science; and the House 
and Senate Appropriations Committees, not later than 180 days 
after enactment of this Act, identifying specific Federal 
agency benchmark security standards that should be developed by 
NIST over the following 12 month period, and recommending (in 
consultation with the Office of Management and Budget (OMB)) 
any additional funding authorization that may be necessary.
  Section 8(c)(2) would require NIST to submit a follow-up 
report selecting and adopting Federal agency benchmark security 
standards. The Director of NIST, in consultation with 
appropriate public and private entities, must submit the report 
to the Secretary of Commerce and the Chairman of the Federal 
CIOs Council not later than 1 year after the date of the report 
issued in section 8(c)(1). The Director shall review these 
standards not less than once every 6 months, and update such 
standards or issue new standards as necessary. Nothing in this 
title shall prohibit the Director from updating any portion of 
such recommended standards more frequently if it is determined 
that circumstances so require. The Secretary of Commerce would 
widely disseminate the report and any updates. Section 8(c)(3) 
would require civilian departments and agencies to implement 
the standards recommended by the report not later than 90 days 
after the date of the report. The Committee understands 
civilian agencies to be those agencies not excluded under 
section 20 of the NIST Organic Act. Updates must be similarly 
implemented not later than 30 days. To facilitate NIST's duties 
under this section, not later than 90 days after the enactment 
of this Act, the Chairman of the Federal CIOs Council shall 
provide to the NIST Director a classified list of the current 
Federal government security standards. Appropriations are 
authorized for activities under this subsection of $15 million 
per year for fiscal years 2003-2007.
  Section 8(d) would require two reports to Congress. Within 36 
months after the date of enactment, the Chairman of the Federal 
CIOs Council is directed to submit a report to Congress 
describing the status of, costs associated with, and barriers 
to implementation and recommendations for over-coming such 
barriers of the Federal agency benchmark security standards at 
each department and agency of the Federal government. Not later 
than 3 months after the date of enactment, NIST would arrange 
for the National Academy of Sciences to conduct a study 
analyzing the effect of implementation of Federal agency 
benchmark security standards on the state of national cyber 
security preparedness. Appropriations of $800,000 would be 
authorized for this report.
  Section 8(e) would amend the National Institute of Standards 
and Technology Act to establish an Office for Information 
Security Programs. The Computer Security Division already 
exists at NIST; this subsection renames that office and 
elevates Information Security Programs to be on par with NIST's 
other laboratories with a Director reporting to the Director of 
NIST.

Section 9. Computer security review, public meetings, and information

  This section would authorize funding ($1,060,000 for FY 2003 
and $1,090,000 for FY 2004) to enable NIST's Computer System 
Security and Privacy Advisory Board to identify emerging 
issues, including research needs related to computer security, 
privacy, and cryptography and, as appropriate, to convene 
public meetings on those subjects, receive presentations, and 
generate reports for public distribution.

Section 10. Intramural security research

  Section 10 would amend the National Institute of Standards 
and Technology Act to authorize NIST to pursue, as part of the 
agency's in-house research program, research related to 
computer security, including the development of emerging 
technologies to ensure security of networked systems assembled 
from components, improved security of real-time computing and 
communications systems used in industrial and critical 
infrastructure operations, and multidisciplinary, high-risk, 
long-term research on ways to improve security of computer 
systems.

Section 11. Authorization of appropriations

  This section would authorize appropriations for sections 8 
and 10 of the bill. For the research programs in section 8, it 
would authorize $25 million for FY 2003, $40 million for FY 
2004, $55 million for FY 2005, $70 million for FY 2006, and $85 
million for FY 2007. For section 10, it would authorize $6 
million for FY 2003, $6.2 million for FY 2004, $6.4 million for 
FY 2005, $6.6 million for FY 2006, and $6.8 million for FY 
2007.

Section 12. National Academy of Sciences Study on Computer and Network 
        Security in Critical Infrastructures

  Section 12 would authorize the Director of NIST to enter into 
an agreement with the National Research Council to conduct a 
study of the vulnerabilities of the nation's critical 
infrastructure networks and make recommendations for 
appropriate improvements not later than 3 months after the date 
of enactment of the Act. The study would require the NRC to 
review existing data to identify gaps in the security of 
critical infrastructure networks, make recommendations for 
research priorities to address these gaps, and review the 
security of network-related infrastructure including industrial 
process controls. A report of the study results is to be 
submitted to Congress. For the purpose of carrying out the 
study, $700,000 is authorized.

Section 13

  This section would give the Office of Science and Technology 
Policy (OSTP) the responsibility to coordinate Federal cyber 
security R&D, and ensure consultation with the Office of 
Homeland Security, the President's Critical Infrastructure 
Protection Board, and other relevant agencies. This section 
also would encourage OSTP to promote cooperation between the 
Federal government, academia, and private industry.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

           NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT

                      COMPUTERS STANDARDS PROGRAM.

                           [15 U.S.C. 278G-3]

  Sec. 20. (a) Development of Standards, Guidelines, Methods, 
and Techniques for Computer Systems.--The Institute shall--
          (1) have the mission of developing standards, 
        guidelines, and associated methods and techniques for 
        computer systems;
          (2) except as described in paragraph (3) of this 
        subsection (relating to security standards), develop 
        uniform standards and guidelines for Federal computer 
        systems, except those systems excluded by section 2315 
        of title 10, United States Code, or section 3502(9) of 
        title 44, United States Code;
          (3) have responsibility within the Federal Government 
        for developing technical, management, physical, and 
        administrative standards and guidelines for the cost-
        effective security and privacy of sensitive information 
        in Federal computer systems except--
                  (A) those systems excluded by section 2315 of 
                title 10, United States Code, or section 
                3502(9) of title 44, United States Code; and
                  (B) those systems which are protected at all 
                times by procedures established for information 
                which has been specifically authorized under 
                criteria established by an Executive order or 
                an Act of Congress to be kept secret in the 
                interest of national defense or foreign policy, 
                the primary purpose of which standards and 
                guidelines shall be to control loss and 
                unauthorized modification or disclosure of 
                sensitive information in such systems and to 
                prevent computer-related fraud and misuse;
          (4) submit standards and guidelines developed 
        pursuant to paragraphs (2) and (3) of this subsection, 
        along with recommendations as to the extent to which 
        these should be made compulsory and binding, to the 
        Secretary of Commerce for promulgation under section 
        5131 of the Clinger-Cohen Act of 1996;
          (5) develop guidelines for use by operators of 
        Federal computer systems that contain sensitive 
        information in training their employees in security 
        awareness and accepted security practice, as required 
        by section 5 of the Computer Security Act of 1987; and
          (6) develop validation procedures for, and evaluate 
        the effectiveness of, standards and guidelines 
        developed pursuant to paragraphs (1), (2), and (3) of 
        this subsection through research and liaison with other 
        government and private agencies.
  (b) Technical Assistance and Implementation of Standards 
Developed.--In fulfilling subsection (a) of this section, the 
Institute is authorized--
          (1) to assist the private sector, upon request, in 
        using and applying the results of the programs and 
        activities under this section;
          (2) as requested, to provide to operators of Federal 
        computer systems technical assistance in implementing 
        the standards and guidelines promulgated pursuant to 
        section 5131 of the Clinger-Cohen Act of 1996;
          (3) to assist, as appropriate, the Office of 
        Personnel Management in developing regulations 
        pertaining to training, as required by section 5 of the 
        Computer Security Act of 1987;
          (4) to perform research and to conduct studies, as 
        needed, to determine the nature and extent of the 
        vulnerabilities of, and to devise techniques for the 
        cost-effective security and privacy of sensitive 
        information in Federal computer systems; and
          (5) to coordinate closely with other agencies and 
        offices (including, but not limited to, the Departments 
        of Defense and Energy, the National Security Agency, 
        the General Accounting Office, the Office of Technology 
        Assessment, and the Office of Management and Budget)--
                  (A) to assure maximum use of all existing and 
                planned programs, materials, studies, and 
                reports relating to computer systems security 
                and privacy, in order to avoid unnecessary and 
                costly duplication of effort; and
                  (B) to assure, to the maximum extent 
                feasible, that standards developed pursuant to 
                subsection (a)(3) and (5) are consistent and 
                compatible with standards and procedures 
                developed for the protection of information in 
                Federal computer systems which is authorized 
                under criteria established by Executive order 
                or an Act of Congress to be kept secret in the 
                interest of national defense or foreign policy.
  (c) Protection of Sensitive Information.--For the purposes 
of--
          (1) developing standards and guidelines for the 
        protection of sensitive information in Federal computer 
        systems under subsections (a)(1) and (a)(3), and
          (2) performing research and conducting studies under 
        subsection (b)(5), the Institute shall draw upon 
        computer system technical security guidelines developed 
        by the National Security Agency to the extent that the 
        National Bureau of Standards determines that such 
        guidelines are consistent with the requirements for 
        protecting sensitive information in Federal computer 
        systems.
  (d) Establishment of an Office for Information Security 
Programs.--
                  (1) In general.--There is established in the 
                Institute an Office for Information Security 
                Programs.
                  (2) Head.--The Office for Information 
                Security Programs shall be headed by a 
                Director, who shall be a senior executive and 
                shall be compensated at a level in the Senior 
                Executive Service under section 5382 of title 
                5, United States Code, as determined by the 
                Secretary of Commerce.
                  (3) Function.--The Director of the Institute 
                shall delegate to the Director of the Office of 
                Information Security Programs the authority to 
                administer all functions under this section, 
                except that any such delegation shall not 
                relieve the Director of the Institute of 
                responsibility for the administration of such 
                functions. The Director of the Office of 
                Information Security Programs shall serve as 
                principal adviser to the Director of the 
                Institute on all functions under this section.
  [(d)] (e) Definitions.--As used in this section--
          (1) the term ``computer system''--
                  (A) means any equipment or interconnected 
                system or subsystems of equipment that is used 
                in the automatic acquisition, storage, 
                manipulation, management, movement, control, 
                display, switching, interchange, transmission, 
                or reception, of data or information; and
                  (B) includes--
                          [(i) computers;] (i) computers and 
                        computer networks;
                          (ii) ancillary equipment;
                          (iii) software, firmware, and similar 
                        procedures;
                          (iv) services, including support 
                        services; and
                          (v) related resources;
          (2) the term ``Federal computer system'' means a 
        computer system operated by a Federal agency or by a 
        contractor of a Federal agency or other organization 
        that processes information (using a computer system) on 
        behalf of the Federal Government to accomplish a 
        Federal function;
          (3) the term ``operator of a Federal computer 
        system'' means a Federal agency, contractor of a 
        Federal agency, or other organization that processes 
        information using a computer system on behalf of the 
        Federal Government to accomplish a Federal function;
          (4) the term ``sensitive information'' means any 
        information, the loss, misuse, or unauthorized access 
        to or modification of which could adversely affect the 
        national interest or the conduct of Federal programs, 
        or the privacy to which individuals are entitled under 
        section 552a of title 5, United States Code (the 
        Privacy Act), but which has not been specifically 
        authorized under criteria established by an Executive 
        order or an Act of Congress to be kept secret in the 
        interest of national defense or foreign policy; and
          (5) the term ``Federal agency'' has the meaning given 
        such term by section 3(b) of the Federal Property and 
        Administrative Services Act of 1949 .
  (f) Intramural Security Research.--As part of the research 
activities conducted in accordance with subsection (b)(4), the 
Institute shall--
          (1) conduct a research program to address emerging 
        technologies associated with assembling a networked 
        computer system from components while ensuring it 
        maintains desired security properties;
          (2) carry out research associated with improving the 
        security of real-time computing and communications 
        systems for use in process control; and
          (3) carry out multidisciplinary, long-term, high-risk 
        research on ways to improve the security of computer 
        systems.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary $1,060,000 for fiscal year 
2003 and $1,090,000 for fiscal year 2004 to enable the Computer 
System Security and Privacy Advisory Board, established by 
section 21, to identify emerging issues, including research 
needs, related to computer security, privacy, and cryptography 
and, as appropriate, to convene public meetings on those 
subjects, receive presentations, and publish reports, digests, 
and summaries for public distribution on those subjects.

           *       *       *       *       *       *       *


            RESEARCH PROGRAM ON SECURITY OF COMPUTER SYSTEMS

  Sec. 22. (a) Establishment.--The Director, through the 
Director of the Office for Information Security Programs, shall 
establish a program of assistance to institutions of higher 
education that enter into partnerships with for-profit entities 
to support research to improve the security of computer 
systems. The partnerships may also include government 
laboratories. The program shall--
          (1) include multidisciplinary, long-term research;
          (2) include research directed toward addressing needs 
        identified through the activities of the Computer 
        System Security and Privacy Advisory Board under 
        section 20(f); and
          (3) promote the development of a robust research 
        community working at the leading edge of knowledge in 
        subject areas relevant to the security of computer 
        systems by providing support for graduate students, 
        post-doctoral researchers, and senior researchers.
  (b) Fellowships.--
          (1) In general.--The Director is authorized to 
        establish a program to award post-doctoral research 
        fellowships to individuals who are citizens, nationals, 
        or lawfully admitted permanent resident aliens of the 
        United States and are seeking research positions at 
        institutions, including the Institute, engaged in 
        research activities related to the security of computer 
        systems, including the research areas described in 
        section 4(a)(1) of the Cyber Security Research and 
        Development Act.
          (2) Senior research fellowships.--The Director is 
        authorized to establish a program to award senior 
        research fellowships to individuals seeking research 
        positions at institutions, including the Institute, 
        engaged in research activities related to the security 
        of computer systems, including the research areas 
        described in section 4(a)(1) of the Cyber Security 
        Research and Development Act. Senior research 
        fellowships shall be made available for established 
        researchers at institutions of higher education who 
        seek to change research fields and pursue studies 
        related to the security of computer systems.
          (3) Eligibility.--
                  (A) In general.--To be eligible for an award 
                under this subsection, an individual shall 
                submit an application to the Director at such 
                time, in such manner, and containing such 
                information as the Director may require.
                  (B) Stipends.--Under this subsection, the 
                Director is authorized to provide stipends for 
                post-doctoral research fellowships at the level 
                of the Institute's Post Doctoral Research 
                Fellowship Program and senior research 
                fellowships at levels consistent with support 
                for a faculty member in a sabbatical position.
  (c) Awards; Applications.--
          (1) In general.--The Director is authorized to award 
        grants or cooperative agreements to institutions of 
        higher education to carry out the program established 
        under subsection (a).
          (2) Eligibility.--To be eligible for an award under 
        this section, an institution of higher education shall 
        submit an application to the Director at such time, in 
        such manner, and containing such information as the 
        Director may require. The application shall include, at 
        a minimum, a description of--
                  (A) the number of graduate students 
                anticipated to participate in the research 
                project and the level of support to be provided 
                to each;
                  (B) the number of post-doctoral research 
                positions included under the research project 
                and the level of support to be provided to 
                each;
                  (C) the number of individuals, if any, 
                intending to change research fields and pursue 
                studies related to the security of computer 
                systems to be included under the research 
                project and the level of support to be provided 
                to each; and
                  (D) how the for-profit entities and any other 
                partners will participate in developing and 
                carrying out the research and education agenda 
                of the partnership.
  (d) Sliding Scale Cost-sharing.--In awarding a grant under 
this section, the Director shall require up to 50 percent of 
the costs of the project funded by the grant to be met by the 
for-profit entity or entities in the partnership. The Director 
shall base the percentage of cost-sharing required under this 
paragraph on a sliding scale reflecting the degree to which the 
results of the research undertaken by a partnership may 
reasonably be expected to be applied and shared, with--
          (1) the smallest percentage of cost-sharing required 
        for projects the anticipated results of which are 
        reasonably expected to be of broadest potential 
        application and broadly shared; and
          (2) the greatest percentage of cost-sharing required 
        for projects the anticipated results of which are 
        reasonably expected--
                  (A) to be of narrow or proprietary 
                application; or
                  (B) not to be broadly shared.
  (e) Program Operation.--
          (1) Management.--The program established under 
        subsection (a) shall be headed by the Director of the 
        Office for Information Security Programs and managed by 
        individuals who shall have both expertise in research 
        related to the security of computer systems and 
        knowledge of the vulnerabilities of existing computer 
        systems. The Director shall designate such individuals, 
        on a competitive basis, as program managers.
          (2) Managers may be employees.--Program managers 
        designated under paragraph (1) may be new or existing 
        employees of the Institute.
          (3) Manager responsibility.--Program managers 
        designated under paragraph (1) shall be responsible 
        for--
                  (A) establishing and publicizing the broad 
                research goals for the program;
                  (B) soliciting applications for specific 
                research projects to address the goals 
                developed under subparagraph (A);
                  (C) selecting research projects for support 
                under the program from among applications 
                submitted to the Institute, following 
                consideration of--
                          (i) the novelty and scientific and 
                        technical merit of the proposed 
                        projects;
                          (ii) the demonstrated capabilities of 
                        the individual or individuals 
                        submitting the applications to 
                        successfully carry out the proposed 
                        research;
                          (iii) the impact the proposed 
                        projects will have on increasing the 
                        number of computer security 
                        researchers;
                          (iv) the nature of the participation 
                        by for-profit entities and the extent 
                        to which the proposed projects address 
                        the concerns of industry; and
                          (v) other criteria determined by the 
                        Director, based on information 
                        specified for inclusion in applications 
                        under subsection (c); and
                  (D) monitoring the progress of research 
                projects supported under the program.
          (4) From amounts available for awards under 
        subsection (c), the Director, in consultation with the 
        Director of the Office for Information Security 
        Programs established in section 20 of this Act, may 
        assign up to 5 percent to a Directors Fund which may be 
        awarded throughout the fiscal year at the discretion of 
        the Director to promising projects designed to fulfill 
        the goals Stated in subsection (a). Such projects 
        should be innovative in nature and should meet emerging 
        needs in computer security.
  (f) Review of Program.--
          (1) Periodic review.--The Director shall periodically 
        review the portfolio of research awards monitored by 
        each program manager designated in accordance with 
        subsection (e). In conducting those reviews, the 
        Director shall seek the advice of the Computer System 
        Security and Privacy Advisory Board, established under 
        section 21, on the appropriateness of the research 
        goals and on the quality and utility of research 
        projects managed by program managers in accordance with 
        subsection (e).
          (2) Comprehensive 5-year review.--The Director shall 
        also contract with the National Research Council for a 
        comprehensive review of the program established under 
        subsection (a) during the 5th year of the program. Such 
        review shall include an assessment of the scientific 
        quality of the research conducted, the relevance of the 
        research results obtained to the goals of the program 
        established under subsection (e)(3)(A), and the 
        progress of the program in promoting the development of 
        a substantial academic research community working at the 
        leading edge of knowledge in the field. The Director shall 
        submit to Congress a report on the results of the review 
        under this paragraph no later than 6 years after the 
        initiation of the program.
  (g) Definitions.--In this section:
          (1) Computer system.--The term ``computer system'' 
        has the meaning given that term in section 20(d)(1).
          (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given that term in section 101 of the Higher Education 
        Act of 1965 (20 United States Code 1001).

                      APPROPRIATIONS; AVAILABILITY

                            [15 U.S.C. 278H]

  Sec. [22.] 32. Appropriations to carry out the provisions of 
this Act may remain available for obligation and expenditure 
for such period or periods as may be specified in the Acts 
making such appropriations.

           *       *       *       *       *       *       *


                NATIONAL SCIENCE FOUNDATION ACT OF 1950

SEC. 3. FUNCTIONS.

                            [42 U.S.C. 1862]

  (a) Initiation and Support of Studies and Programs; 
Scholarships; Current Register of Scientific and Technical 
Personnel.--The Foundation is authorized and directed--
          (1) to initiate and support basic scientific research 
        and programs to strengthen scientific research 
        potential and science education programs at all levels 
        in the mathematical, physical, medical, biological, 
        social, and other sciences, and to initiate and support 
        research fundamental to the engineering process and 
        programs to strengthen engineering research potential 
        and engineering education programs at all levels in the 
        various fields of engineering, by making contracts or 
        other arrangements (including grants, loans, and other 
        forms of assistance) to support such scientific, 
        engineering, and educational activities and to appraise 
        the impact of research upon industrial development and 
        upon the general welfare;
          (2) to award, as provided in section 10, scholarships 
        and graduate fellowships for study and research in the 
        sciences or in engineering;
          (3) to foster the interchange of scientific and 
        engineering information among scientists and engineers 
        in the United States and foreign countries;
          (4) to foster and support the development and use of 
        computer and other scientific and engineering methods 
        and technologies, primarily for research and education 
        in the sciences and engineering;
          (5) to evaluate the status and needs of the various 
        sciences and fields of engineering as evidenced by 
        programs, projects, and studies undertaken by agencies 
        of the Federal Government, by individuals, and by 
        public and private research groups, employing by grant 
        or contract such consulting services as it may deem 
        necessary for the purpose of such evaluations; and to 
        take into consideration the results of such evaluations 
        in correlating the research and educational programs 
        undertaken or supported by the Foundation with 
        programs, projects, and studies undertaken by agencies 
        of the Federal Government, by individuals, and by 
        public and private research groups;
          (6) to provide a central clearinghouse for the 
        collection, interpretation, and analysis of data on 
        scientific and engineering resources and to provide a 
        source of information for policy formulation by other 
        agencies of the Federal Government; [and]
          (7) to initiate and maintain a program for the 
        determination of the total amount of money for 
        scientific and engineering research, including money 
        allocated for the construction of the facilities 
        wherein such research is conducted, received by each 
        educational institution and appropriate nonprofit 
        organization in the United States, by grant, contract, 
        or other arrangement from agencies of the Federal 
        Government, and to report annually thereon to the 
        President and the [Congress.] Congress; and
          (8) to take a leading role in fostering and 
        supporting research and education activities to improve 
        the security of networked information systems.
  (b) Contracts, Grants, Loans, etc. for Scientific and 
Engineering Activities; Financing of Programs.--The Foundation 
is authorized to initiate and support specific scientific and 
engineering activities in connection with matters relating to 
international cooperation, national security, and the effects 
of scientific and engineering applications upon society by 
making contracts or other arrangements (including grants, 
loans, and other forms of assistance) for the conduct of such 
activities. When initiated or supported pursuant to requests 
made by any other Federal department or agency, including the 
Office of Technology Assessment, such activities shall be 
financed whenever feasible from funds transferred to the 
Foundation by the requesting official as provided in section 
14(f), and any such activities shall be unclassified and shall 
be identified by the Foundation as being undertaken at the 
request of the appropriate official.
  (c) Scientific and Engineering Research Programs at Academic 
and Other Nonprofit Institutions; Applied Scientific Research 
and Engineering Research Programs by Presidential Directive; 
Employment of Consulting Services; Coordination of 
Activities.--In addition to the authority contained in 
subsections (a) and (b), the Foundation is authorized to 
initiate and support scientific and engineering research, 
including applied research, at academic and other nonprofit 
institutions. When so directed by the President, the Foundation 
is further authorized to support, through other appropriate 
organizations, applied scientific research and engineering 
research relevant to national problemsinvolving the public 
interest. In exercising the authority contained in this subsection, the 
Foundation may employ by grant or contract such consulting services as 
it deems necessary, and shall coordinate and correlate its activities 
with respect to any such problem with other agencies of the Federal 
Government undertaking similar programs in that field.
  (d) Promotion of Basic Research and Education in Science and 
Engineering.--The Board and the Director shall recommend and 
encourage the pursuit of national policies for the promotion of 
research and education in science and engineering.
  (e) Balancing of Research and Educational Activities in the 
Sciences and Engineering.--In exercising the authority and 
discharging the functions referred to in the foregoing 
subsections, it shall be an objective of the Foundation to 
strengthen research and education in the sciences and 
engineering, including independent research by individuals, 
throughout the United States, and to avoid undue concentration 
of such research and education.
  (f) Annual Report to the President and Congress.--The 
Foundation shall render an annual report to the President for 
submission on or before the 15th day of April of each year to 
the Congress, summarizing the activities of the Foundation and 
making such recommendations as it may deem appropriate. Such 
report shall include information as to the acquisition and 
disposition by the Foundation of any patents and patent rights.
  (g) Support of Access to Computer Networks.--In carrying out 
subsection (a)(4), the Foundation is authorized to foster and 
support access by the research and education communities to 
computer networks which may be used substantially for purposes 
in addition to research and education in the sciences and 
engineering, if the additional uses will tend to increase the 
overall capabilities of the networks to support such research 
and education activities.

               NATIONAL SCIENCE AND TECHNOLOGY POLICY ACT

SEC. 205. POLICY PLANNING; ANALYSIS; ADVICE; ESTABLISHMENT OF ADVISORY 
                    PANEL.

                            [42 U.S.C. 6614]

  (a) The Office shall serve as a source of scientific and 
technological analysis and judgment for the President with 
respect to major policies, plans, and programs of the Federal 
Government. In carrying out the provisions of this section, the 
Director shall--
          (1) seek to define coherent approaches for applying 
        science and technology to critical and emerging 
        national and international problems and for promoting 
        coordination of the scientific and technological 
        responsibilities and programs of the Federal 
        departments and agencies in the resolution of such 
        problems;
          (2) assist and advise the President in the 
        preparation of the Science and Technology Report, in 
        accordance with section 209 of this Act;
          (3) gather timely and authoritative information 
        concerning significant developments and trends in 
        science, technology, and in national priorities, both 
        current and prospective, to analyze and interpret such 
        information for the purpose of determining whether such 
        developments and trends are likely to affect 
        achievement of the priority goals of the Nation as set 
        forth in section 101(b) of this Act;
          (4) encourage the development and maintenance of an 
        adequate data base for human resources in science, 
        engineering, and technology, including the development 
        of appropriate models to forecast future manpower 
        requirements, and assess the impact of major 
        governmental and public programs on human resources and 
        their utilization;
          (5) initiate studies and analyses, including systems 
        analyses and technology assessments, of alternatives 
        available for the resolution of critical and emerging 
        national and international problems amendable to the 
        contributions of science and technology and, insofar as 
        possible, determine and compare probable costs, 
        benefits, and impacts of such alternatives;
          (6) advise the President on the extent to which the 
        various scientific and technological programs, 
        policies, and activities of the Federal Government are 
        likely to affect the achievement of the priority goals 
        of the Nation as set forth in section 101(b) of this 
        Act;
          (7) provide the President with periodic reviews of 
        Federal statutes and administrative regulations of the 
        various departments and agencies which affect research 
        and development activities, both internally and in 
        relation to the private sector, or which may interfere 
        with desirable technological innovation, together with 
        recommendations for their elimination, reform, or 
        updating as appropriate;
          (8) develop, review, revise, and recommend criteria 
        for determining scientific and technological activities 
        warranting Federal support, and recommend Federal 
        policies designed to advance (A) the development and 
        maintenance of broadly based scientific and 
        technological capabilities, including human resources, 
        at all levels of government, academia, and industry, 
        and (B) the effective application of such capabilities 
        to national needs;
          (9) assess and advise on policies for international 
        cooperation in science and technology which will 
        advance the national and international objectives of 
        the United States;
          (10) identify and assess emerging and future areas in 
        which science and technology can be used effectively in 
        addressing national and international problems;
          (11) report at least once each year to the President 
        and the Congress on the overall activities and 
        accomplishments of the Office, pursuant to section 206 
        of this Act;
          (12) periodically survey the nature and needs of 
        national science and technology policy and make 
        recommendations to the President, for review and 
        transmission to the Congress, for the timely and 
        appropriate revision of such policy in accordance with 
        section 102(a)(6) of this Act; [and]
          (13) develop strategies, in consultation with the 
        Office of Homeland Security, the President's Critical 
        Infrastructure Protection Board, and the relevant 
        Federal departments and agencies, to foster greater 
        coordination of Federal research and development 
        activities and promote cooperation between the Federal 
        Government, institutions of higher education, and 
        private industry in the field of cyber security; and
          [(13)] (14) perform such other duties and functions 
        and make and furnish such studies and reports thereon, 
        and recommendations with respect to matters of policy 
        and legislation as the President may request.
  (b)(1) The Director shall establish an Intergovernmental 
Science, Engineering, and Technology Advisory Panel 
(hereinafter referred to as the ``Panel''), whose purpose shall 
be to (A) identify and define civilian problems at State, 
regional, and local levels which science, engineering, and 
technology may assist in resolving or ameliorating; (B) 
recommend priorities for addressing such problems; and (C) 
advise and assist the Director in identifying and fostering 
policies to facilitate the transfer and utilization of research 
and development results so as to maximize their application to 
civilian needs.
  (2) The Panel shall be composed of (A) the Director of the 
Office, or his representative; (B) at least ten members 
representing the interests of the States, appointed by the 
Director of the Office after consultation with State officials; 
and (C) the Director of the National Science Foundation, or his 
representative.
  (3)(A) The Director of the Office, or his representative, 
shall serve as Chairman of the Panel.
  (B) The Panel shall perform such functions as the Chairman 
may prescribe, and shall meet at the call of the Chairman.
  (4) Each member of the Panel shall, while serving on business 
of the Panel, be entitled to receive compensation at a rate not 
to exceed the daily rate prescribed for GS-18 of the General 
Schedule under section 5332 of title 5, United States Code, 
including traveltime, and, while so serving away from his home 
or regular place of business, he may be allowed travel 
expenses, including per diem in lieu of subsistence in the same 
manner as the expenses authorized by section 5703(b) of title 
5, United States Code, for persons in government service 
employed intermittently.

                                  
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