[108th Congress Public Law 177]
[From the U.S. Government Printing Office]


[DOCID: f:publ177.108]

[[Page 117 STAT. 2599]]

Public Law 108-177
108th Congress

                                 An Act


 
 To authorize appropriations for fiscal year 2004 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. <<NOTE: Dec. 
                       13, 2003 -  [H.R. 2417]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Intelligence 
Authorization Act for Fiscal Year 2004.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Intelligence 
Authorization Act for Fiscal Year 2004''.
    (b) Table of Contents.--The table of contents for 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. Office of Intelligence and Analysis of the Department of the 
           Treasury.
Sec. 106. Incorporation of reporting requirements.
Sec. 107. 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.

                        Subtitle B--Intelligence

Sec. 311. Authority of Federal Bureau of Investigation to award personal 
           services contracts.
Sec. 312. Budget treatment of costs of acquisition of major systems by 
           the intelligence community.
Sec. 313. Modification of sunset of application of sanctions laws to 
           intelligence 
           activities.
Sec. 314. Modification of notice and wait requirements on projects to 
           construct or improve intelligence community facilities.
Sec. 315. Extension of deadline for final report of the National 
           Commission for the Review of the Research and Development 
           Programs of the United States Intelligence Community.
Sec. 316. Improvement of information sharing among Federal, State, and 
           local 
           government officials.
Sec. 317. Pilot program on analysis of signals and other intelligence by 
           intelligence analysts of various elements of the intelligence 
           community.

[[Page 117 STAT. 2600]]

Sec. 318. Pilot program on recruitment and training of intelligence 
           analysts.
Sec. 319. Improvement of equality of employment opportunities in the 
           intelligence community.
Sec. 320. Sense of Congress on recruitment as intelligence community 
           personnel of members of the Armed Forces on their discharge 
           or release from duty.
Sec. 321. External Collection Capabilities and Requirements Review 
           Panel.

                     Subtitle C--Counterintelligence

Sec. 341. Counterintelligence initiatives for the intelligence 
           community.

                           Subtitle D--Reports

Sec. 351. Report on cleared insider threat to classified computer 
           networks.
Sec. 352. Report on security background investigations and security 
           clearance procedures of the Federal Government.
Sec. 353. Report on detail of civilian intelligence personnel among 
           elements of the intelligence community and the Department of 
           Defense.
Sec. 354. Report on modifications of policy and law on classified 
           information to facilitate sharing of information for national 
           security purposes.
Sec. 355. Report on strategic planning.
Sec. 356. Report on United States dependence on computer hardware and 
           software manufactured overseas.
Sec. 357. Report on lessons learned from military operations in Iraq.
Sec. 358. Reports on conventional weapons and ammunition obtained by 
           Iraq in violation of certain United Nations Security Council 
           resolutions.
Sec. 359. Report on operations of Directorate of Information Analysis 
           and Infrastructure Protection and Terrorist Threat 
           Integration Center.
Sec. 360. Report on Terrorist Screening Center.
Sec. 361. Repeal and modification of report requirements relating to 
           intelligence activities.

                        Subtitle E--Other Matters

Sec. 371. Extension of suspension of reorganization of Diplomatic 
           Telecommunications Service Program Office.
Sec. 372. Modifications of authorities on explosive materials.
Sec. 373. Modification of prohibition on the naturalization of certain 
           persons.
Sec. 374. Modification to definition of financial institution in Right 
           to Financial Privacy Act.
Sec. 375. Coordination of Federal Government research on security 
           evaluations.
Sec. 376. Treatment of classified information in money laundering cases.
Sec. 377. Technical amendments.

                  TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Amendment to certain Central Intelligence Agency Act of 1949 
           notification requirements.
Sec. 402. Protection of certain Central Intelligence Agency personnel 
           from tort liability.
Sec. 403. Repeal of obsolete limitation on use of funds in central 
           services working capital fund.
Sec. 404. Purchases by Central Intelligence Agency of products of 
           Federal Prison Industries.
Sec. 405. Postponement of Central Intelligence Agency compensation 
           reform and other matters.

           TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

Sec. 501. Protection of certain National Security Agency personnel from 
           tort liability.
Sec. 502. Use of funds for counterdrug and counterterrorism activities 
           for Colombia.
Sec. 503. Scene visualization technologies.
Sec. 504. Measurement and signatures intelligence research program.
Sec. 505. Availability of funds of National Security Agency for national 
           security scholarships.

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the conduct of the intelligence and intelligence-related

[[Page 117 STAT. 2601]]

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 Department of Justice.
            (10) The Federal Bureau of Investigation.
            (11) The National Reconnaissance Office.
            (12) The National Geospatial-Intelligence Agency.
            (13) The Coast Guard.
            (14) The Department of Homeland Security.

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, 2004, 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 the bill 
H.R. 2417 of the One Hundred Eighth 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. <<NOTE: 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 2004 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 promptly notify the Select Committee on Intelligence 
of the Senate and the Permanent Select Committee on Intelligence of the 
House of Representatives 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 2004 the sum of 
$221,513,000. Within such amount, funds identified in the classified 
Schedule of Authorizations referred to in section

[[Page 117 STAT. 2602]]

102(a) for advanced research and development shall remain available 
until September 30, 2005.
    (b) Authorized Personnel Levels.--The elements within the 
Intelligence Community Management Account of the Director of Central 
Intelligence are authorized 310 full-time personnel as of September 30, 
2004. 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 2004 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, 2005.
            (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, 
        2004, there are also 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 2004 
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.-- <<NOTE: 21 USC 873 note.>> 
            (1) In general.--Of the amount authorized to be appropriated 
        in subsection (a), $47,142,000 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, 2005, and 
        funds provided for procurement purposes shall remain available 
        until September 30, 2006.
            (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)).
            (4) Authority.--Notwithstanding any other provision of law, 
        the Attorney General shall retain full authority over the 
        operations of the National Drug Intelligence Center.

[[Page 117 STAT. 2603]]

SEC. 105. OFFICE OF INTELLIGENCE AND ANALYSIS OF THE DEPARTMENT OF THE 
            TREASURY.

    (a) Establishment of Office.--(1) Chapter 3 of subtitle I of title 
31, United States Code, is amended--
            (A) by redesignating section 311 as section 312; and
            (B) by inserting after section 310 the following:

``Sec. 311. Office of Intelligence and Analysis

    ``(a) Establishment.--There is established within the Department of 
the Treasury, the Office of Intelligence and Analysis (in this section 
referred to as the `Office'), which shall--
            ``(1) be responsible for the receipt, analysis, collation, 
        and dissemination of foreign intelligence and foreign 
        counterintelligence information (within the meaning of section 3 
        of the National Security Act of 1947 (50 U.S.C. 401a)) related 
        to the operation and responsibilities of the Department of the 
        Treasury; and
            ``(2) have such other related duties and authorities as may 
        be assigned to it by the Secretary, subject to the authority, 
        direction, and control of the Secretary.

    ``(b) <<NOTE: President. Congress.>> Assistant Secretary for 
Intelligence and Analysis.--The Office shall be headed by an Assistant 
Secretary, who shall be appointed by the President, by and with the 
advice and consent of the Senate. The Assistant Secretary shall report 
directly to the Undersecretary of the Treasury for Enforcement.''.

    (2) The table of sections at the beginning of chapter 3 of such 
title is amended by striking the item relating to section 311 and 
inserting the following new items:

``311. Office of Intelligence and Analysis.
``312. Continuing in office.''.

    (b) <<NOTE: 31 USC 311 note.>> Construction of Authority.--Nothing 
in section 311 of title 31, United States Code (as amended by subsection 
(a)), shall be construed to alter the authorities and responsibilities 
of the Director of Central Intelligence with respect to the Office of 
Intelligence and Analysis of the Department of the Treasury as an 
element of the intelligence community.

    (c) Consultation With DCI in Appointment of Assistant Secretary.--
Section 106(b)(2) of the National Security Act of 1947 (50 U.S.C. 403-
6(b)(2)) is amended by adding at the end the following:
                    ``(E) The Assistant Secretary for Intelligence and 
                Analysis of the Department of the Treasury.''.

    (d) Conforming Amendments.--
            (1) National security act.--Section 3(4) of the National 
        Security Act of 1947 (50 U.S.C. 401a(4)) is amended--
                    (A) in subparagraph (H), by striking ``the 
                Department of the Treasury,'';
                    (B) by redesignating subparagraphs (J) and (K) as 
                subparagraphs (K) and (L), respectively; and
                    (C) by inserting after subparagraph (I) the 
                following new subparagraph (J):
                    ``(J) the Office of Intelligence and Analysis of the 
                Department of the Treasury;''.
            (2) Title 31.--Section 301(e) of title 31, United States 
        Code, is amended by striking ``7'' and inserting ``8''.

[[Page 117 STAT. 2604]]

            (3) Title 5.--Section 5315 of title 5, United States Code, 
        is amended in the item relating to Assistant Secretaries of the 
        Treasury by striking ``(7)'' and inserting ``(8)''.

SEC. 106. INCORPORATION OF REPORTING REQUIREMENTS. <<NOTE: 50 USC 401 
            note.>> 

    (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. 2417 of the One Hundred Eighth 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. 107. <<NOTE: 50 USC 415b note.>> 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 2004 the sum of 
$226,400,000.

[[Page 117 STAT. 2605]]

                      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.

                        Subtitle B--Intelligence

SEC. 311. AUTHORITY OF FEDERAL BUREAU OF INVESTIGATION TO AWARD PERSONAL 
            SERVICES CONTRACTS.

    (a) Authority.--(1) Title III of the National Security Act of 1947 
is amended by inserting after section 301 (50 U.S.C. 409a) the following 
                              new section:

    ``Sec. 302. <<NOTE: 50 USC 409b.>> (a) In General.--The Director of 
the Federal Bureau of Investigation may enter into personal services 
contracts if the personal services to be provided under such contracts 
directly support the intelligence or counterintelligence missions of the 
Federal Bureau of Investigation.

    ``(b) Inapplicability of Certain Requirements.--Contracts under 
subsection (a) shall not be subject to the annuity offset requirements 
of sections 8344 and 8468 of title 5, United States Code, the 
requirements of section 3109 of title 5, United States Code, or any law 
or regulation requiring competitive contracting.
    ``(c) Contract To Be Appropriate Means of Securing Services.--The 
Chief Contracting Officer of the Federal Bureau of Investigation shall 
ensure that each personal services contract entered into by the Director 
under this section is the appropriate means of securing the services to 
be provided under such contract.''.
    (2) The table of contents for that Act is amended by inserting after 
the item relating to section 301 the following new item:

``Sec. 302. Authority of Federal Bureau of Investigation to award 
           personal services contracts.''.

    (b) <<NOTE: Deadline. 50 USC 409b-1.>> Reports on Exercise of 
Authority.--(1) Not later than one year after the date of the enactment 
of this Act, and annually thereafter, the Director of the Federal Bureau 
of Investigation shall submit to the appropriate committees of Congress 
a report on the exercise of the authority in section 302 of the National 
Security Act of 1947, as added by subsection (a).

    (2) Each report under this subsection shall include, for the one-
year period ending on the date of such report, the following:

[[Page 117 STAT. 2606]]

            (A) The number of contracts entered into during the period.
            (B) The cost of each such contract.
            (C) The length of each such contract.
            (D) The types of services to be provided under each such 
        contract.
            (E) The availability, if any, of United States Government 
        personnel to perform functions similar to the services to be 
        provided under each such contract.
            (F) The efforts of the Federal Bureau of Investigation to 
        fill available personnel vacancies, or request additional 
        personnel positions, in areas relating to the intelligence or 
        counterintelligence mission of the Bureau.

    (3) Each report under this subsection shall be submitted in 
unclassified form, but may include a classified annex.
    (4) In this subsection--
            (A) for purposes of the submittal of the classified annex to 
        any report under this subsection, the term ``appropriate 
        committees of Congress'' means--
                    (i) the Select Committee on Intelligence of the 
                Senate; and
                    (ii) the Permanent Select Committee on Intelligence 
                of the House of Representatives; and
            (B) for purposes of the submittal of the unclassified 
        portion of any report under this subsection, the term 
        ``appropriate committees of Congress'' means--
                    (i) the committees specified in subparagraph (A);
                    (ii) the Committees on Appropriations, Governmental 
                Affairs, and the Judiciary of the Senate; and
                    (iii) the Committees on Appropriations, Government 
                Reform and Oversight, and the Judiciary of the House of 
                Representatives.

SEC. 312. BUDGET TREATMENT OF COSTS OF ACQUISITION OF MAJOR SYSTEMS BY 
            THE INTELLIGENCE COMMUNITY.

    (a) <<NOTE: 50 USC 415a-1 note.>> Findings.--Congress makes the 
following findings:
            (1) Funds within the National Foreign Intelligence Program 
        often must be shifted from program to program and from fiscal 
        year to fiscal year to address funding shortfalls caused by 
        significant increases in the costs of acquisition of major 
        systems by the intelligence community.
            (2) While some increases in the costs of acquisition of 
        major systems by the intelligence community are unavoidable, the 
        magnitude of growth in the costs of acquisition of many major 
        systems indicates a systemic bias within the intelligence 
        community to underestimate the costs of such acquisition, 
        particularly in the preliminary stages of development and 
        production.
            (3) Decisions by Congress to fund the acquisition of major 
        systems by the intelligence community rely significantly upon 
        initial estimates of the affordability of acquiring such major 
        systems and occur within a context in which funds can be 
        allocated for a variety of alternative programs. Thus, 
        substantial increases in costs of acquisition of major systems 
        place significant burdens on the availability of funds for other 
        programs and new proposals within the National Foreign 
        Intelligence Program.

[[Page 117 STAT. 2607]]

            (4) Independent cost estimates, prepared by independent 
        offices, have historically represented a more accurate 
        projection of the costs of acquisition of major systems.
            (5) Recognizing the benefits associated with independent 
        cost estimates for the acquisition of major systems, the 
        Secretary of Defense has built upon the statutory requirement in 
        section 2434 of title 10, United States Code, to develop and 
        consider independent cost estimates for the acquisition of such 
        systems by mandating the use of such estimates in budget 
        requests of the Department of Defense.
            (6) The mandatory use throughout the intelligence community 
        of independent cost estimates for the acquisition of major 
        systems will assist the President and Congress in the 
        development and funding of budgets which more accurately reflect 
        the requirements and priorities of the United States Government 
        for intelligence and intelligence-related activities.

    (b) Budget Treatment of Costs of Acquisition of Major Systems.--(1) 
Title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.) is 
    amended by inserting after section 506 the following new section:

    ``Sec. 506A. <<NOTE: 50 USC 415a-1.>> (a) Independent Cost 
Estimates.--(1) The Director of Central Intelligence shall, in 
consultation with the head of each element of the intelligence community 
concerned, prepare an independent cost estimate of the full life-cycle 
cost of development, procurement, and operation of each major system to 
be acquired by the intelligence community.

    ``(2) Each independent cost estimate for a major system shall, to 
the maximum extent practicable, specify the amount required to be 
appropriated and obligated to develop, procure, and operate the major 
system in each fiscal year of the proposed period of development, 
procurement, and operation of the major system.
    ``(3)(A) In the case of a program of the intelligence community that 
qualifies as a major system, an independent cost estimate shall be 
prepared before the submission to Congress of the budget of the 
President for the first fiscal year in which appropriated funds are 
anticipated to be obligated for the development or procurement of such 
major system.
    ``(B) In the case of a program of the intelligence community for 
which an independent cost estimate was not previously required to be 
prepared under this section, including a program for which development 
or procurement commenced before the date of the enactment of the 
Intelligence Authorization Act for Fiscal Year 2004, if the aggregate 
future costs of development or procurement (or any combination of such 
activities) of the program will exceed $500,000,000 (in current fiscal 
year dollars), the program shall qualify as a major system for purposes 
of this section, and an independent cost estimate for such major system 
shall be prepared before the submission to Congress of the budget of the 
President for the first fiscal year thereafter in which appropriated 
funds are anticipated to be obligated for such major system.
    ``(4) The independent cost estimate for a major system shall be 
updated upon--
            ``(A) the completion of any preliminary design review 
        associated with the major system;

[[Page 117 STAT. 2608]]

            ``(B) any significant modification to the anticipated design 
        of the major system; or
            ``(C) any change in circumstances that renders the current 
        independent cost estimate for the major system inaccurate.

    ``(5) Any update of an independent cost estimate for a major system 
under paragraph (4) shall meet all requirements for independent cost 
estimates under this section, and shall be treated as the most current 
independent cost estimate for the major system until further updated 
under that paragraph.
    ``(b) <<NOTE: Establishment.>> Preparation of Independent Cost 
Estimates.--(1) The Director shall establish within the Office of the 
Deputy Director of Central Intelligence for Community Management an 
office which shall be responsible for preparing independent cost 
estimates, and any updates thereof, under subsection (a), unless a 
designation is made under paragraph (2).

    ``(2) In the case of the acquisition of a major system for an 
element of the intelligence community within the Department of Defense, 
the Director and the Secretary of Defense shall provide that the 
independent cost estimate, and any updates thereof, under subsection (a) 
be prepared by an entity jointly designated by the Director and the 
Secretary in accordance with section 2434(b)(1)(A) of title 10, United 
States Code.
    ``(c) Utilization in Budgets of President.--(1) If the budget of the 
President requests appropriations for any fiscal year for the 
development or procurement of a major system by the intelligence 
community, the President shall, subject to paragraph (2), request in 
such budget an amount of appropriations for the development or 
procurement, as the case may be, of the major system that is equivalent 
to the amount of appropriations identified in the most current 
independent cost estimate for the major system for obligation for each 
fiscal year for which appropriations are requested for the major system 
in such budget.
    ``(2) If the amount of appropriations requested in the budget of the 
President for the development or procurement of a major system is less 
than the amount of appropriations identified in the most current 
independent cost estimate for the major system for obligation for each 
fiscal year for which appropriations are requested for the major system 
in such budget, the President shall include in the budget justification 
materials submitted to Congress in support of such budget--
            ``(A) an explanation for the difference between the amount 
        of appropriations requested and the amount of appropriations 
        identified in the most current independent cost estimate;
            ``(B) a description of the importance of the major system to 
        the national security;
            ``(C) an assessment of the consequences for the funding of 
        all programs of the National Foreign Intelligence Program in 
        future fiscal years if the most current independent cost 
        estimate for the major system is accurate and additional 
        appropriations are required in future fiscal years to ensure the 
        continued development or procurement of the major system, 
        including the consequences of such funding shortfalls on the 
        major system and all other programs of the National Foreign 
        Intelligence Program; and
            ``(D) such other information on the funding of the major 
        system as the President considers appropriate.

[[Page 117 STAT. 2609]]

    ``(d) Inclusion of Estimates in Budget Justification Materials.--The 
budget justification materials submitted to Congress in support of the 
budget of the President shall include the most current independent cost 
estimate under this section for each major system for which 
appropriations are requested in such budget for any fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `budget of the President' means the budget of 
        the President for a fiscal year as submitted to Congress under 
        section 1105(a) of title 31, United States Code.
            ``(2) The term `independent cost estimate' means a pragmatic 
        and neutral analysis, assessment, and quantification of all 
        costs and risks associated with the acquisition of a major 
        system, which shall be based on programmatic and technical 
        specifications provided by the office within the element of the 
        intelligence community with primary responsibility for the 
        development, procurement, or operation of the major system.
            ``(3) The term `major system' means any significant program 
        of an element of the intelligence community with projected total 
        development and procurement costs exceeding $500,000,000 (in 
        current fiscal year dollars), which costs shall include all end-
        to-end program costs, including costs associated with the 
        development and procurement of the program and any other costs 
        associated with the development and procurement of systems 
        required to support or utilize the program.''.

    (2) The table of contents for the National Security Act of 1947 is 
amended by inserting after the item relating to section 506 the 
following new item:

``Sec. 506A. Budget treatment of costs of acquisition of major systems 
           by the intelligence community.''.

    (c) <<NOTE: 50 USC 415a-1 note.>> Effective Date.--The amendments 
made by subsection (b) shall take effect on the date of the enactment of 
this Act.

    (d) <<NOTE: 50 USC 415a-1 note.>> Limitations.--(1)(A) For each 
major system for which funds have been authorized for a fiscal year 
before fiscal year 2005, or for which funds are sought in the budget of 
the President for fiscal year 2005, as submitted to Congress pursuant to 
section 1105(a) of title 31, United States Code, and for which no 
independent cost estimate has been provided to Congress, no contract, or 
option to contract, for the procurement or acquisition of such major 
system may be entered into, or option to contract be exercised, before 
the date of the enactment of an Act to authorize appropriations for 
fiscal year 2005 for intelligence and intelligence-related activities of 
the United States Government.

    (B) Subparagraph (A) shall not affect any contract for procurement 
or acquisition that was entered into before the date of the enactment of 
this Act.
    (2) <<NOTE: Effective date. President.>> Commencing as of the date 
of the submittal to Congress of the budget of the President for fiscal 
year 2006 pursuant to section 1105(a) of title 31, United States Code, 
no funds may be obligated or expended for the development or procurement 
of a major system until the President has complied with the requirements 
of section 506A of the National Security Act of 1947 (as added by 
subsection (b)) with respect to such major system.

[[Page 117 STAT. 2610]]

    (3) In this subsection, the terms ``independent cost estimate'' and 
``major system'' have the meaning given such terms in subsection (e) of 
section 506A of the National Security Act of 1947 (as so added).

SEC. 313. MODIFICATION OF SUNSET OF APPLICATION OF SANCTIONS LAWS TO 
            INTELLIGENCE ACTIVITIES.

    (a) Modification.--Section 905 of the National Security Act of 1947 
(50 U.S.C. 441d) is repealed.
    (b) Clerical Amendment.--The table of contents for that Act is 
amended by striking the item relating to section 905.

SEC. 314. MODIFICATION OF NOTICE AND WAIT REQUIREMENTS ON PROJECTS TO 
            CONSTRUCT OR IMPROVE INTELLIGENCE COMMUNITY FACILITIES.

    (a) Increase of Thresholds for Notice.--Subsection (a) of section 
602 of the Intelligence Authorization Act for Fiscal Year 1995 (Public 
Law 103-359; 108 Stat. 3432; 50 U.S.C. 403-2b(a)) is amended--
            (1) by striking ``$750,000'' each place it appears and 
        inserting ``$5,000,000''; and
            (2) by striking ``$500,000'' each place it appears and 
        inserting ``$1,000,000''.

    (b) Notice and Wait Requirements for Emergency Projects.--Subsection 
(b)(2) of that section is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively;
            (2) by inserting ``(A)'' after ``(2) Report.--'';
            (3) by striking ``21-day period'' and inserting ``7-day 
        period''; and
            (4) by adding at the end the following new subparagraph:
            ``(B) Notwithstanding subparagraph (A), a project referred 
        to in paragraph (1) may begin on the date the notification is 
        received by the appropriate committees of Congress under that 
        paragraph if the Director of Central Intelligence and the 
        Secretary of Defense jointly determine that--
                    ``(i) an emergency exists with respect to the 
                national security or the protection of health, safety, 
                or environmental quality; and
                    ``(ii) any delay in the commencement of the project 
                would harm any or all of those interests.''.

SEC. 315. EXTENSION OF DEADLINE FOR FINAL REPORT OF THE NATIONAL 
            COMMISSION FOR THE REVIEW OF THE RESEARCH AND DEVELOPMENT 
            PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY.

    (a) In General.--Subsection (a) of section 1007 of the Intelligence 
Authorization Act for Fiscal Year 2003 (Public Law 107-306; 50 U.S.C. 
401 note; 116 Stat. 2442) is amended by striking ``September 1, 2003'' 
and inserting ``September 1, 2004''.
    (b) <<NOTE: 50 USC 401 note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect as if included in the enactment of 
section 1007 of the Intelligence Authorization Act for Fiscal Year 2003.

SEC. 316. IMPROVEMENT OF INFORMATION SHARING AMONG FEDERAL, STATE, AND 
            LOCAL GOVERNMENT OFFICIALS.

    (a) Training Program for State and Local Officials.--Section 892(c) 
of the Homeland Security Act of 2002 (Public Law

[[Page 117 STAT. 2611]]

107-296; 6 U.S.C. 482) is amended by adding at the end the following new 
paragraph:
            ``(3)(A) The Secretary shall establish a program to provide 
        appropriate training to officials described in subparagraph (B) 
        in order to assist such officials in--
                    ``(i) identifying sources of potential terrorist 
                threats through such methods as the Secretary determines 
                appropriate;
                    ``(ii) reporting information relating to such 
                potential terrorist threats to the appropriate Federal 
                agencies in the appropriate form and manner;
                    ``(iii) assuring that all reported information is 
                systematically submitted to and passed on by the 
                Department for use by appropriate Federal agencies; and
                    ``(iv) understanding the mission and roles of the 
                intelligence community to promote more effective 
                information sharing among Federal, State, and local 
                officials and representatives of the private sector to 
                prevent terrorist attacks against the United States.
            ``(B) The officials referred to in subparagraph (A) are 
        officials of State and local government agencies and 
        representatives of private sector entities with responsibilities 
        relating to the oversight and management of first responders, 
        counterterrorism activities, or critical infrastructure.
            ``(C) The Secretary shall consult with the Attorney General 
        to ensure that the training program established in subparagraph 
        (A) does not duplicate the training program established in 
        section 908 of the USA PATRIOT Act (Public Law 107-56; 28 U.S.C. 
        509 note).
            ``(D) The Secretary shall carry out this paragraph in 
        consultation with the Director of Central Intelligence and the 
        Attorney General.''.

    (b) <<NOTE: Deadline.>> Report.--Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Homeland Security 
shall submit to Congress a report that describes the Secretary's plan 
for implementing section 892 of the Homeland Security Act of 2002 and 
includes an estimated date of completion of the implementation.

SEC. 317. <<NOTE: 50 USC 403-3 note.>> PILOT PROGRAM ON ANALYSIS OF 
            SIGNALS AND OTHER INTELLIGENCE BY INTELLIGENCE ANALYSTS OF 
            VARIOUS ELEMENTS OF THE INTELLIGENCE COMMUNITY.

    (a) In General.--The Director of Central Intelligence shall, in 
coordination with the Secretary of Defense, carry out a pilot program to 
assess the feasibility and advisability of permitting intelligence 
analysts of various elements of the intelligence community to access and 
analyze intelligence from the databases of other elements of the 
intelligence community in order to achieve the objectives set forth in 
subsection (c).
    (b) Covered Intelligence.--The intelligence to be analyzed under the 
pilot program under subsection (a) shall include the following:
            (1) Signals intelligence of the National Security Agency.
            (2) Such intelligence of other elements of the intelligence 
        community as the Director shall select for purposes of the pilot 
        program.

[[Page 117 STAT. 2612]]

    (c) Objectives.--The objectives set forth in this subsection are as 
follows:
            (1) To enhance the capacity of the intelligence community to 
        undertake ``all source fusion'' analysis in support of the 
        intelligence and intelligence-related missions of the 
        intelligence community.
            (2) To reduce, to the extent possible, the amount of 
        intelligence collected by the intelligence community that is not 
        assessed, or reviewed, by intelligence analysts.
            (3) To reduce the burdens imposed on analytical personnel of 
        the elements of the intelligence community by current practices 
        regarding the sharing of intelligence among elements of the 
        intelligence community.

    (d) <<NOTE: Deadline.>> Commencement.--The Director shall commence 
the pilot program under subsection (a) not later than December 31, 2003.

    (e) Various Mechanisms Required.--In carrying out the pilot program 
under subsection (a), the Director shall develop and utilize various 
mechanisms to facilitate the access to, and the analysis of, 
intelligence in the databases of the intelligence community by 
intelligence analysts of other elements of the intelligence community, 
including the use of so-called ``detailees in place''.
    (f) Security.--(1) In carrying out the pilot program under 
subsection (a), the Director shall take appropriate actions to protect 
against the disclosure and unauthorized use of intelligence in the 
databases of the elements of the intelligence community which may 
endanger sources and methods which (as determined by the Director) 
warrant protection.
    (2) The actions taken under paragraph (1) shall include the 
provision of training on the accessing and handling of information in 
the databases of various elements of the intelligence community and the 
establishment of limitations on access to information in such databases 
regarding United States persons.
    (g) <<NOTE: Deadline.>> Assessment.--Not later than February 1, 
2004, after the commencement under subsection (d) of the pilot program 
under subsection (a), the Under Secretary of Defense for Intelligence 
and the Assistant Director of Central Intelligence for Analysis and 
Production shall jointly carry out an assessment of the progress of the 
pilot program in meeting the objectives set forth in subsection (c).

    (h) Report.--(1) The Director of Central Intelligence shall, in 
coordination with the Secretary of Defense, submit to the appropriate 
committees of Congress a report on the assessment carried out under 
subsection (g).
    (2) The report shall include--
            (A) a description of the pilot program under subsection (a);
            (B) the findings of the Under Secretary and Assistant 
        Director as a result of the assessment;
            (C) any recommendations regarding the pilot program that the 
        Under Secretary and the Assistant Director jointly consider 
        appropriate in light of the assessment; and
            (D) any recommendations that the Director and Secretary 
        consider appropriate for purposes of the report.

    (i) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--

[[Page 117 STAT. 2613]]

            (1) the Select Committee on Intelligence, the Committee on 
        Armed Services, and the Committee on Appropriations of the 
        Senate; and
            (2) the Permanent Select Committee on Intelligence, the 
        Committee on Armed Services, and the Committee on Appropriations 
        of the House of Representatives.

SEC. 318. <<NOTE: 50 USC 441g note.>> PILOT PROGRAM ON RECRUITMENT AND 
            TRAINING OF INTELLIGENCE ANALYSTS.

    (a) Pilot Program.--(1) The Director of Central Intelligence shall 
carry out a pilot program to ensure that selected students or former 
students are provided funds to continue academic training, or are 
reimbursed for academic training previously obtained, in areas of 
specialization that the Director, in consultation with the other heads 
of the elements of the intelligence community, identifies as areas in 
which the current analytic capabilities of the intelligence community 
are deficient or in which future analytic capabilities of the 
intelligence community are likely to be deficient.
    (2) A student or former student selected for participation in the 
pilot program shall commit to employment with an element of the 
intelligence community, following completion of appropriate academic 
training, under such terms and conditions as the Director considers 
appropriate.
    (3) The pilot program shall be known as the Pat Roberts Intelligence 
Scholars Program.
    (b) Elements.--In carrying out the pilot program under subsection 
(a), the Director shall--
            (1) establish such requirements relating to the academic 
        training of participants as the Director considers appropriate 
        to ensure that participants are prepared for employment as 
        intelligence analysts; and
            (2) periodically review the areas of specialization of the 
        elements of the intelligence community to determine the areas in 
        which such elements are, or are likely to be, deficient in 
        analytic capabilities.

    (c) Duration.--The Director shall carry out the pilot program under 
subsection (a) during fiscal years 2004 through 2006.
    (d) Limitation on Number of Members During Fiscal Year 2004.--The 
total number of individuals participating in the pilot program under 
subsection (a) during fiscal year 2004 may not exceed 150 students.
    (e) Responsibility.--The Director shall carry out the pilot program 
under subsection (a) through the Assistant Director of Central 
Intelligence for Analysis and Production.
    (f) <<NOTE: Deadlines.>> Reports.--(1) Not later than 120 days after 
the date of the enactment of this Act, the Director shall submit to 
Congress a preliminary report on the pilot program under subsection (a), 
including a description of the pilot program and the authorities to be 
utilized in carrying out the pilot program.

    (2) Not later than one year after the commencement of the pilot 
program, the Director shall submit to Congress a report on the pilot 
program. The report shall include--
            (A) a description of the activities under the pilot program, 
        including the number of individuals who participated in the 
        pilot program and the training provided such individuals under 
        the pilot program;

[[Page 117 STAT. 2614]]

            (B) an assessment of the effectiveness of the pilot program 
        in meeting the purpose of the pilot program; and
            (C) any recommendations for additional legislative or 
        administrative action that the Director considers appropriate in 
        light of the pilot program.

    (g) Funding.--Of the amounts authorized to be appropriated by this 
Act, $4,000,000 shall be available until expended to carry out this 
section.

SEC. 319. <<NOTE: 50 USC 403 note.>> IMPROVEMENT OF EQUALITY OF 
            EMPLOYMENT OPPORTUNITIES IN THE INTELLIGENCE COMMUNITY.

    (a) Findings.--Congress makes the following findings:
            (1) It is the recommendation of the Joint Inquiry of the 
        Senate Select Committee on Intelligence and the House Permanent 
        Select Committee on Intelligence into Intelligence Community 
        Activities Before and After the Terrorist Attacks of September 
        11, 2001, that the Intelligence Community should enhance 
        recruitment of a more ethnically and culturally diverse 
        workforce and devise a strategy to capitalize upon the unique 
        cultural and linguistic capabilities of first generation 
        Americans.
            (2) The Intelligence Community could greatly benefit from an 
        increased number of employees who are proficient in foreign 
        languages and knowledgeable of world cultures, especially in 
        foreign languages that are critical to the national security 
        interests of the United States. Particular emphasis should be 
        given to the recruitment of United States citizens whose 
        linguistic capabilities are acutely required for the improvement 
        of the overall intelligence collection and analysis effort of 
        the United States Government.
            (3) The Intelligence Community has a significantly lower 
        percentage of women and minorities than the total workforce of 
        the Federal government and the total civilian labor force.
            (4) Women and minorities continue to be under-represented in 
        senior grade levels, and in core mission areas, of the 
        intelligence community.

    (b) Pilot Project To Promote Equality of Employment Opportunities 
for Women and Minorities Throughout the Intelligence Community Using 
Innovative Methodologies.--The Director of Central Intelligence shall 
carry out a pilot project under this section to test and evaluate 
alternative, innovative methods to promote equality of employment 
opportunities in the intelligence community for women, minorities, and 
individuals with diverse ethnic and cultural backgrounds, skills, 
language proficiency, and expertise.
    (c) Methods.--In carrying out the pilot project, the Director shall 
employ methods to increase diversity of officers and employees in the 
intelligence community.
    (d) Duration of Project.--The Director shall carry out the project 
under this section for a 3-year period.
    (e) <<NOTE: Deadline.>> Report.--Not later than 2 years after the 
date the Director implements the pilot project under this section, the 
Director shall submit to Congress a report on the project. The report 
shall include--
            (1) an assessment of the effectiveness of the project; and
            (2) recommendations on the continuation of the project, as 
        well recommendations as for improving the effectiveness

[[Page 117 STAT. 2615]]

        of the project in meeting the goals of promoting equality of 
        employment opportunities in the intelligence community for 
        women, minorities, and individuals with diverse ethnic and 
        cultural backgrounds, skills, language proficiency, and 
        expertise.

    (f) <<NOTE: Deadline. Reports.>> Diversity Plan.--(1) Not later than 
February 15, 2004, the Director of Central Intelligence shall submit to 
Congress a report which describes the plan of the Director, entitled the 
``DCI Diversity Strategic Plan'', and any subsequent revision to that 
plan, to increase diversity of officers and employees in the 
intelligence community, including the short- and long-term goals of the 
plan. The report shall also provide a detailed description of the 
progress that has been made by each element of the intelligence 
community in implementing the plan.

    (2) In implementing the plan, the Director shall incorporate 
innovative methods for recruitment and hiring that the Director has 
determined to be effective from the pilot project carried out under this 
section.
    (g) Intelligence Community Defined.--In this section, 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. 401(4)).

SEC. 320. SENSE OF CONGRESS ON RECRUITMENT AS INTELLIGENCE COMMUNITY 
            PERSONNEL OF MEMBERS OF THE ARMED FORCES ON THEIR DISCHARGE 
            OR RELEASE FROM DUTY.

    It is the sense of Congress that the elements of the intelligence 
community should, in the course of their civilian recruitment efforts in 
the United States, endeavor to recruit as personnel of the intelligence 
community citizens and, as appropriate, nationals of the United States 
who are members of the Armed Forces who participated in Operation 
Enduring Freedom, Operation Iraqi Freedom, and other campaigns 
undertaken abroad upon the separation, discharge, or release of such 
individuals from the Armed Forces.

SEC. 321. EXTERNAL COLLECTION CAPABILITIES AND REQUIREMENTS REVIEW 
            PANEL.

    The President may establish an External Collection Capabilities and 
Requirements Review Panel as specified in the classified annex to this 
Act.

                     Subtitle C--Counterintelligence

SEC. 341. COUNTERINTELLIGENCE INITIATIVES FOR THE INTELLIGENCE 
            COMMUNITY.

    (a) In General.--(1) Title XI of the National Security Act of 1947 
(50 U.S.C. 401 et seq.) is amended by adding at the end the following 
                              new section:

    ``Sec. 1102. <<NOTE: 50 USC 442a.>> (a) Inspection Process.--(1) In 
order to protect intelligence sources and methods from unauthorized 
disclosure, the Director of Central Intelligence shall establish and 
implement an inspection process for all agencies and departments of the 
United States that handle classified information relating to the 
national security of the United States intended to assure that those 
agencies

[[Page 117 STAT. 2616]]

and departments maintain effective operational security practices and 
programs directed against counterintelligence activities.

    ``(2) The Director shall carry out the process through the Office of 
the National Counterintelligence Executive.
    ``(b) <<NOTE: Procedures.>> Annual Review of Dissemination Lists.--
(1) The Director of Central Intelligence shall establish and implement a 
process for all elements of the intelligence community to review, on an 
annual basis, individuals included on distribution lists for access to 
classified information. Such process shall ensure that only individuals 
who have a particularized `need to know' (as determined by the Director) 
are continued on such distribution lists.

    ``(2) <<NOTE: Deadline. Certification.>> Not later than October 15 
of each year, the Director shall certify to the congressional 
intelligence committees that the review required under paragraph (1) has 
been conducted in all elements of the intelligence community during the 
preceding fiscal year.

    ``(c) <<NOTE: Procedures.>> Completion of Financial Disclosure 
Statements Required for Access to Certain Classified Information.--(1) 
The Director of Central Intelligence shall establish and implement a 
process by which each head of an element of the intelligence community 
directs that all employees of that element, in order to be granted 
access to classified information referred to in subsection (a) of 
section 1.3 of Executive Order No. 12968 (August 2, 1995; 60 Fed. Reg. 
40245; 50 U.S.C. 435 note), submit financial disclosure forms as 
required under subsection (b) of such section.

    ``(2) The Director shall carry out paragraph (1) through the Office 
of the National Counterintelligence Executive.
    ``(d) <<NOTE: Procedures.>> Arrangements To Handle Sensitive 
Information.--The Director of Central Intelligence shall establish, for 
all elements of the intelligence community, programs and procedures by 
which sensitive classified information relating to human intelligence is 
safeguarded against unauthorized disclosure by employees of those 
elements.''.

    (2) The table of contents contained in the first section of such Act 
is amended in the items relating to title XI by adding at the end the 
following new item:

``Sec. 1102. Counterintelligence initiatives.''.

    (b) <<NOTE: Procedures. 28 USC 519 note.>> Intelligence and National 
Security Aspects of Espionage Prosecutions.--The Attorney General, 
acting through the Office of Intelligence Policy and Review of the 
Department of Justice, and in consultation with the Director of Central 
Intelligence, acting through the Office of the National 
Counterintelligence Executive, shall establish policies and procedures 
to assist the Attorney General in the consideration of intelligence and 
national security-related equities in the development of charging 
documents and related pleadings in espionage prosecutions.

                           Subtitle D--Reports

SEC. 351. REPORT ON CLEARED INSIDER THREAT TO CLASSIFIED COMPUTER 
            NETWORKS.

    (a) Report Required.--The Director of Central Intelligence and the 
Secretary of Defense shall jointly submit to the appropriate committees 
of Congress a report on the risks to the national security of the United 
States of the current computer security practices

[[Page 117 STAT. 2617]]

of the elements of the intelligence community and of the Department of 
Defense.
    (b) Assessments.--The report under subsection (a) shall include an 
assessment of the following:
            (1) The vulnerability of the computers and computer systems 
        of the elements of the intelligence community, and of the 
        Department of Defense, to various threats from foreign 
        governments, international terrorist organizations, and 
        organized crime, including information warfare (IW), Information 
        Operations (IO), Computer Network Exploitation (CNE), and 
        Computer Network Attack (CNA).
            (2) The risks of providing users of local area networks 
        (LANs) or wide-area networks (WANs) of computers that include 
        classified information with capabilities for electronic mail, 
        upload and download, or removable storage media without also 
        deploying comprehensive computer firewalls, accountability 
        procedures, or other appropriate security controls.
            (3) Any other matters that the Director and the Secretary 
        jointly consider appropriate for purposes of the report.

    (c) Information on Access to Networks.--The report under subsection 
(a) shall also include information as follows:
            (1) An estimate of the number of access points on each 
        classified computer or computer system of an element of the 
        intelligence community or the Department of Defense that permit 
        unsupervised uploading or downloading of classified information, 
        set forth by level of classification.
            (2) An estimate of the number of individuals utilizing such 
        computers or computer systems who have access to input-output 
        devices on such computers or computer systems.
            (3) A description of the policies and procedures governing 
        the security of the access points referred to in paragraph (1), 
        and an assessment of the adequacy of such policies and 
        procedures.
            (4) An assessment of the viability of utilizing other 
        technologies (including so-called ``thin client servers'') to 
        achieve enhanced security of such computers and computer systems 
        through more rigorous control of access to such computers and 
        computer systems.

    (d) Recommendations.--The report under subsection (a) shall also 
include such recommendations for modifications or improvements of the 
current computer security practices of the elements of the intelligence 
community, and of the Department of Defense, as the Director and the 
Secretary jointly consider appropriate as a result of the assessments 
under subsection (b) and the information under subsection (c).
    (e) Submittal Date.--The report under subsection (a) shall be 
submitted not later than February 15, 2004.
    (f) Form.--The report under subsection (a) may be submitted in 
classified or unclassified form, at the election of the Director.
    (g) Definitions.--In this section:
            (1) The term ``appropriate committees of Congress'' means--
                    (A) the Select Committee on Intelligence and the 
                Committee on Armed Services of the Senate; and
                    (B) the Permanent Select Committee on Intelligence 
                and the Committee on Armed Services of the House of 
                Representatives.

[[Page 117 STAT. 2618]]

            (2) The term ``elements of the intelligence community'' 
        means the elements of the intelligence community set forth in or 
        designated under section 3(4) of the National Security Act of 
        1947 (50 U.S.C. 401a(4)).

SEC. 352. REPORT ON SECURITY BACKGROUND INVESTIGATIONS AND SECURITY 
            CLEARANCE PROCEDURES OF THE FEDERAL GOVERNMENT.

    (a) Report Required.--The Director of Central Intelligence, the 
Secretary of Defense, the Attorney General, the Director of the Office 
of Personnel Management, and the heads of other appropriate Federal 
departments and agencies (as determined by the President) shall jointly 
submit to the appropriate committees of Congress a report on the utility 
and effectiveness of the current security background investigations and 
security clearance procedures of the Federal Government in meeting the 
purposes of such investigations and procedures.
    (b) Particular Report Matters.--The report shall address in 
particular the following:
            (1) A comparison of the costs and benefits of conducting 
        background investigations for Secret clearance with the costs 
        and benefits of conducting full field background investigations.
            (2) The standards governing the revocation of security 
        clearances.

    (c) Recommendations.--The report under subsection (a) shall include 
such recommendations for modifications or improvements of the current 
security background investigations or security clearance procedures of 
the Federal Government as are considered appropriate as a result of the 
preparation of the report under that subsection.
    (d) Submittal Date.--The report under subsection (a) shall be 
submitted not later than February 15, 2004.
    (e) 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 the Judiciary of the Senate; and
            (2) the Permanent Select Committee on Intelligence and the 
        Committees on Armed Services and the Judiciary of the House of 
        Representatives.

SEC. 353. REPORT ON DETAIL OF CIVILIAN INTELLIGENCE PERSONNEL AMONG 
            ELEMENTS OF THE INTELLIGENCE COMMUNITY AND THE DEPARTMENT OF 
            DEFENSE.

    (a) Report Required.--The Director of Central Intelligence shall, in 
consultation with the heads of the elements of the intelligence 
community, submit to the appropriate committees of Congress a report on 
means of improving the detail or transfer of civilian intelligence 
personnel between and among the various elements of the intelligence 
community for the purpose of enhancing the flexibility and effectiveness 
of the intelligence community in responding to changes in requirements 
for the collection, analysis, and dissemination of intelligence.
    (b) Report Elements.--The report under subsection (a) shall--
            (1) set forth a variety of proposals on means of improving 
        the detail or transfer of civilian intelligence personnel as 
        described in that subsection;

[[Page 117 STAT. 2619]]

            (2) identify the proposal or proposals determined by the 
        heads of the elements of the intelligence community most likely 
        to meet the purpose described in that subsection; and
            (3) include such recommendations for such legislative or 
        administrative action as the heads of the elements of the 
        intelligence community consider appropriate to implement the 
        proposal or proposals identified under paragraph (2).

    (c) Submittal Date.--The report under subsection (a) shall be 
submitted not later than February 15, 2004.
    (d) Definitions.--In this section:
            (1) The term ``appropriate committees of Congress'' means--
                    (A) the Select Committee on Intelligence and the 
                Committees on Armed Services, Governmental Affairs, and 
                the Judiciary of the Senate; and
                    (B) the Permanent Select Committee on Intelligence 
                and the Committees on Armed Services, Government Reform, 
                and the Judiciary of the House of Representatives.
            (2) The term ``elements of the intelligence community'' 
        means the elements of the intelligence community set forth in or 
        designated under section 3(4) of the National Security Act of 
        1947 (50 U.S.C. 401a(4)).
            (3) The term ``heads of the elements of the intelligence 
        community'' includes the Secretary of Defense with respect to 
        each element of the intelligence community within the Department 
        of Defense or the military departments.

SEC. 354. <<NOTE: President.>> REPORT ON MODIFICATIONS OF POLICY AND LAW 
            ON CLASSIFIED INFORMATION TO FACILITATE SHARING OF 
            INFORMATION FOR NATIONAL SECURITY PURPOSES.

    (a) <<NOTE: Deadline.>> Report.--Not later than four months after 
the date of the enactment of this Act, the President shall submit to the 
appropriate committees of Congress a report that--
            (1) identifies impediments in current policy and regulations 
        to the sharing of classified information horizontally across and 
        among Federal departments and agencies, and vertically between 
        the Federal Government and agencies of State and local 
        governments and the private sector, for national security 
        purposes, including homeland security; and
            (2) proposes appropriate modifications of policy, law, and 
        regulations to eliminate such impediments in order to facilitate 
        such sharing of classified information for national security 
        purposes, including homeland security.

    (b) Considerations.--In preparing the report under subsection (a), 
the President shall--
            (1) consider the extent to which the reliance on a document-
        based approach to the protection of classified information 
        impedes the sharing of classified information; and
            (2) consider the extent to which the utilization of a 
        database-based approach, or other electronic approach, to the 
        protection of classified information might facilitate the 
        sharing of classified information.

    (c) Coordination With Other Information Sharing Activities.--In 
preparing the report under subsection (a), the President shall, to the 
maximum extent practicable, take into account actions being undertaken 
under the Homeland Security Information Sharing Act (subtitle I of title 
VIII of Public Law 107-296; 116 Stat. 2252; 6 U.S.C. 481 et seq.).

[[Page 117 STAT. 2620]]

    (d) 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, Governmental Affairs, and the Judiciary of 
        the Senate; and
            (2) the Permanent Select Committee on Intelligence, the 
        Select Committee on Homeland Security, and the Committees on 
        Armed Services and the Judiciary of the House of 
        Representatives.

SEC. 355. REPORT ON STRATEGIC PLANNING.

    (a) <<NOTE: Deadline.>> Report.--Not later than February 15, 2004, 
the Secretary of Defense and the Director of Central Intelligence shall 
jointly submit to the appropriate committees of Congress a report that 
assesses progress in the following:
            (1) The development by the Department of Defense and the 
        intelligence community of a comprehensive and uniform analytical 
        capability to assess the utility and advisability of various 
        sensor and platform architectures and capabilities for the 
        collection of intelligence.
            (2) The improvement of coordination between the Department 
        and the intelligence community on strategic and budgetary 
        planning.

    (b) Form.--The report under subsection (a) may be submitted in 
classified form.
    (c) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Select Committee on Intelligence and the Committee 
        on Armed Services of the Senate; and
            (2) the Permanent Select Committee on Intelligence and the 
        Committee on Armed Services of the House of Representatives.

SEC. 356. REPORT ON UNITED STATES DEPENDENCE ON COMPUTER HARDWARE AND 
            SOFTWARE MANUFACTURED OVERSEAS.

    (a) <<NOTE: Deadline.>> Report.--Not later than February 15, 2004, 
the Director of Central Intelligence shall submit to the appropriate 
committees of Congress a report on the extent of United States 
dependence on computer hardware or software that is manufactured 
overseas.

    (b) Elements.--The report under subsection (a) shall address the 
following:
            (1) The extent to which the United States currently depends 
        on computer hardware or software that is manufactured overseas.
            (2) The extent to which United States dependence, if any, on 
        such computer hardware or software is increasing.
            (3) The vulnerabilities of the national security and economy 
        of the United States as a result of United States dependence, if 
        any, on such computer hardware or software.
            (4) Any other matters relating to United States dependence, 
        if any, on such computer hardware or software that the Director 
        considers appropriate.

    (c) Consultation With Private Sector.--(1) In preparing the report 
under subsection (a), the Director may consult, and is encouraged to 
consult, with appropriate persons and entities in the computer hardware 
or software industry and with other appropriate persons and entities in 
the private sector.

[[Page 117 STAT. 2621]]

    (2) Consultations of the Director with persons or entities under 
paragraph (1) shall not be treated as the activities of an advisory 
committee for purposes of the Federal Advisory Committee Act (5 U.S.C. 
App.).
    (d) Form.--(1) The report under subsection (a) shall be submitted in 
unclassified form, but may include a classified annex.
    (2) The report may be in the form of a National Intelligence 
Estimate.
    (e) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Select Committee on Intelligence and the Committee 
        on Armed Services of the Senate; and
            (2) the Permanent Select Committee on Intelligence and the 
        Committee on Armed Services of the House of Representatives.

SEC. 357. <<NOTE: 50 USC 403 note.>> REPORT ON LESSONS LEARNED FROM 
            MILITARY OPERATIONS IN IRAQ.

    (a) <<NOTE: Deadline.>> Report.--As soon as possible, but not later 
than one year after the date of the enactment of this Act, the Director 
of Central Intelligence shall submit to the appropriate committees of 
Congress a report on the intelligence lessons learned as a result of 
Operation Iraqi Freedom, including lessons relating to the following:
            (1) The tasking, collection, processing, exploitation, 
        analysis, and dissemination of intelligence.
            (2) The accuracy, timeliness, and objectivity of 
        intelligence analysis.
            (3) The intelligence support available to policymakers and 
        members of the Armed Forces in combat.
            (4) The coordination of intelligence activities and 
        operations with military operations.
            (5) The strengths and limitations of intelligence systems 
        and equipment.
            (6) Such other matters as the Director considers 
        appropriate.

    (b) Recommendations.--The report under subsection (a) shall include 
such recommendations on improvement in the matters described in 
subsection (a) as the Director considers appropriate.
    (c) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Permanent Select Committee on Intelligence and the 
        Committee on Armed Services of the House of Representatives; and
            (2) the Select Committee on Intelligence and the Committee 
        on Armed Services of the Senate.

SEC. 358. <<NOTE: 10 USC 113 note.>> REPORTS ON CONVENTIONAL WEAPONS AND 
            AMMUNITION OBTAINED BY IRAQ IN VIOLATION OF CERTAIN UNITED 
            NATIONS SECURITY COUNCIL RESOLUTIONS.

    (a) <<NOTE: Deadline.>> Preliminary Report.--Not later than 90 days 
after the date of the enactment of this Act, the Director of the Defense 
Intelligence Agency shall, after such consultation with the Secretary of 
State and the Attorney General as the Director considers appropriate, 
submit to the appropriate committees of Congress a preliminary report on 
all information obtained by the Department of Defense and the 
intelligence community on the conventional weapons and ammunition 
obtained by Iraq in violation of applicable

[[Page 117 STAT. 2622]]

resolutions of the United Nations Security Council adopted since the 
invasion of Kuwait by Iraq in August 1990.

    (b) <<NOTE: Deadline.>> Final Report.--(1) Not later than one year 
after the date of the enactment of this Act, the Director shall submit 
to the appropriate committees of Congress a final report on the 
information described in subsection (a).

    (2) The final report under paragraph (1) shall include such updates 
of the preliminary report under subsection (a) as the Director considers 
appropriate.
    (c) Elements.--Each report under this section shall set forth, to 
the extent practicable, with respect to each shipment of weapons or 
ammunition addressed in such report the following:
            (1) The country of origin.
            (2) Any country of transshipment.

    (d) Form.--Each report under this section 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 and the Committees 
        on Armed Services and Foreign Relations of the Senate; and
            (2) the Permanent Select Committee on Intelligence and the 
        Committees on Armed Services and International Relations of the 
        House of Representatives.

SEC. 359. REPORT ON OPERATIONS OF DIRECTORATE OF INFORMATION ANALYSIS 
            AND INFRASTRUCTURE PROTECTION AND TERRORIST THREAT 
            INTEGRATION CENTER.

    (a) <<NOTE: President.>> Report Required.--The President shall 
submit to the appropriate committees of Congress a report on the 
operations of the Directorate of Information Analysis and Infrastructure 
Protection of the Department of Homeland Security and the Terrorist 
Threat Integration Center. The report shall include the following:
            (1) An assessment of the operations of the Directorate and 
        the Center, including the capabilities of each--
                    (A) to meet personnel requirements, including 
                requirements to employ qualified analysts, and the 
                status of efforts to employ qualified analysts;
                    (B) to share intelligence information with the other 
                elements of the intelligence community, including the 
                sharing of intelligence information through secure 
                information technology connections between the 
                Directorate, the Center, and the other elements of the 
                intelligence community;
                    (C) to disseminate intelligence information, or 
                analyses of intelligence information, to other 
                departments and agencies of the Federal Government and, 
                as appropriate, to State and local governments;
                    (D) to coordinate with State and local 
                counterterrorism and law enforcement officials;
                    (E) to receive information from Federal, State, and 
                local officials, and private sector entities, relating 
                to the respective responsibilities and authorities of 
                the Directorate and the Center; and
                    (F) to access information, including intelligence 
                and law enforcement information, from the departments 
                and

[[Page 117 STAT. 2623]]

                agencies of the Federal Government, including the 
                ability of the Directorate to access, in a timely and 
                efficient manner, all information authorized by section 
                202 of the Homeland Security Act of 2002 (Public Law 
                107-296; 6 U.S.C. 122).
            (2) An assessment of the ability of the Center to fulfill 
        the responsibilities assigned to it by the President given its 
        structure, authorities, current assets, and capabilities.
            (3) An assessment of the ability of the Directorate to 
        fulfill the responsibilities set forth in section 201 of the 
        Homeland Security Act of 2002 (6 U.S.C. 121) given its current 
        assets and capabilities.
            (4) A plan of action (including appropriate milestones, 
        funding, and sources of funding) for bringing the Center to its 
        full operational capacity as called for in the Information on 
        the State of the Union given by the President to Congress under 
        section 3 of Article II of the Constitution of the United States 
        in 2003.
            (5) A delineation of the responsibilities and duties of the 
        Directorate and of the responsibilities and duties of the 
        Center.
            (6) A delineation and summary of the areas in which the 
        responsibilities and duties of the Directorate, the Center, and 
        other elements of the Federal Government overlap.
            (7) An assessment of whether the areas of overlap, if any, 
        delineated under paragraph (6) represent an inefficient 
        utilization of resources.
            (8) A description of the policies and procedures to ensure 
        that the Directorate and the Center comply with the Constitution 
        and applicable statutes, Executive orders, and regulations of 
        the United States.
            (9) The practical impact, if any, of the operations of the 
        Center on individual liberties and privacy.
            (10) Such information as the President considers appropriate 
        to explain the basis for the establishment and operation of the 
        Center as a ``joint venture'' of participating agencies rather 
        than as an element of the Directorate reporting directly to the 
        Secretary of Homeland Security through the Under Secretary of 
        Homeland Security for Information Analysis and Infrastructure 
        Protection.

    (b) Submittal Date.--The report required by this section shall be 
submitted not later than May 1, 2004.
    (c) Form.--The report required by this section shall be submitted in 
unclassified form, but may include a classified annex.
    (d) 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 Governmental Affairs, the Judiciary, and Appropriations of 
        the Senate; and
            (2) the Permanent Select Committee on Intelligence, the 
        Select Committee on Homeland Security, and the Committees on the 
        Judiciary and Appropriations of the House of Representatives.

SEC. 360. REPORT ON TERRORIST SCREENING CENTER.

    (a) <<NOTE: Deadline. President.>> Report.--Not later than September 
16, 2004, the President shall submit to Congress a report on the 
establishment and operation of the Terrorist Screening Center, 
established on September

[[Page 117 STAT. 2624]]

16, 2003, by Homeland Security Presidential Directive 6, including the 
matters described in subsection (b).

    (b) Covered Matters.--The matters referred to in subsection (a) are 
the following:
            (1) An analysis of the operations of the Terrorist Screening 
        Center to ensure that the Terrorist Screening Center does not 
        violate the Constitution, or any statute, Executive order, or 
        regulation of the United States.
            (2) A description of the architecture of the database system 
        of the Terrorist Screening Center, including the number of 
        databases maintained, operated, or administered by the Terrorist 
        Screening Center, and the extent to which these databases have 
        been integrated.
            (3) A determination of whether data from all watch lists 
        detailed in the April 2003 report of the Comptroller General of 
        the United States, entitled ``Information Technology: Terrorist 
        Watch Lists Should be Consolidated to Promote Better Integration 
        and Sharing'', have been incorporated into the Terrorist 
        Screening Center database system.
            (4) A determination of whether there remain any relevant 
        databases that are not yet part of the Terrorist Screening 
        Center database system.
            (5) A schedule that specifies the dates on which each 
        Federal watch list database identified in the report referred to 
        in paragraph (3), or determined under paragraph (4) to be not 
        yet part of the Terrorist Screening Center database system, 
        were, or will be, integrated into the Terrorist Screening Center 
        database system.
            (6) A description of the protocols in effect to ensure the 
        protection of classified and sensitive information contained in 
        the Terrorist Screening Center database system.
            (7) A description of--
                    (A) the process by which databases in the Terrorist 
                Screening Center database system are reviewed for 
                accuracy and timeliness of data and the frequency of 
                updates of such reviews; and
                    (B) the mechanism used to ensure that data within a 
                particular database is synchronized and replicated 
                throughout the database system of the Terrorist 
                Screening Center.
            (8) A description of the extent to which the Terrorist 
        Screening Center makes information available to the private 
        sector and critical infrastructure components, and the criteria 
        for determining which private sector and critical infrastructure 
        components receive that information.
            (9) The number of individuals listed in the Terrorist 
        Screening Center database system.
            (10) The estimated operating budget of, and sources of 
        funding for, the Terrorist Screening Center for each of fiscal 
        years 2004, 2005, and 2006.
            (11) An assessment of the impact of the Terrorist Screening 
        Center on current law enforcement systems.
            (12) The practical impact, if any, of the operations of the 
        Terrorist Screening Center on individual liberties and privacy.
            (13) Such recommendations as the President considers 
        appropriate for modifications of law or policy to ensure the 
        continuing operation of the Terrorist Screening Center.

[[Page 117 STAT. 2625]]

    (c) Form of Report.--The report required by subsection (a) shall be 
submitted in unclassified form, but may include a classified annex.

SEC. 361. REPEAL AND MODIFICATION OF REPORT REQUIREMENTS RELATING TO 
            INTELLIGENCE ACTIVITIES.

    (a) Annual Evaluation of Performance and Responsiveness of 
Intelligence Community.--Section 105 of the National Security Act of 
1947 (50 U.S.C. 403-5) is amended by striking subsection (d).
    (b) Periodic Reports on Disclosure of Intelligence Information to 
United Nations.--Section 112(b) of the National Security Act of 1947 (50 
U.S.C. 404g(b)(1)) is amended--
            (1) in the subsection caption, by striking ``Periodic'' and 
        inserting ``Annual'';
            (2) in paragraph (1), by striking ``semiannually'' and 
        inserting ``annually''; and
            (3) in paragraph (3), by striking ``periodic'' and inserting 
        ``the annual''.

    (c) Annual Report on Intelligence Community Cooperation With 
Counterdrug Activities.--Section 114 of the National Security Act of 
1947 (50 U.S.C. 404i) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) through (f) as 
        subsections (a) through (e), respectively.

    (d) Annual Report on Covert Leases.--Section 114 of the National 
Security Act of 1947, as amended by this section, is further amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).

    (e) Annual Report on Certain Foreign Companies Involved in 
Proliferation of Weapons of Mass Destruction.--Section 827 of the 
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306; 
116 Stat. 2430; 50 U.S.C. 404n-3) is repealed.
    (f) Annual Report on Intelligence Activities of People's Republic of 
China.--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 
repealed.
    (g) Annual Report on Coordination of Counterintelligence Matters 
With FBI.--Section 811(c) of the Counterintelligence and Security 
Enhancements Act of 1994 (title VIII of Public Law 103-359; 50 U.S.C. 
402a(c)) is amended--
            (1) by striking paragraph (6); and
            (2) by redesignating paragraphs (7) and (8) as paragraphs 
        (6) and (7), respectively.

    (h) Annual Report on Postemployment Assistance for Terminated 
Intelligence Employees.--Section 1611 of title 10, United States Code, 
is amended by striking subsection (e).
    (i) Annual Report on Activities of FBI Personnel Outside the United 
States.--Section 540C of title 28, United States Code, is repealed.
    (j) Annual Report on Exceptions to Consumer Disclosure Requirements 
for National Security Investigations.--Section 604(b)(4) of the Fair 
Credit Reporting Act (15 U.S.C. 1681b(b)(4)) is amended--
            (1) by striking subparagraphs (D) and (E); and

[[Page 117 STAT. 2626]]

            (2) by redesignating subparagraph (F) as subparagraph (D).

    (k) Reports on Acquisition of Technology Relating to Weapons of Mass 
Destruction and Advanced Conventional Munitions.--Subsection (b)(1) of 
section 721 of the Intelligence Authorization Act for Fiscal Year 1997 
(Public Law 104-293; 50 U.S.C. 2366) is amended by striking ``a 
semiannual'' and inserting ``an annual''.
    (l) Conforming Amendments.--Section 507 of the National Security Act 
of 1947 (50 U.S.C. 415b) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by striking subparagraphs (A), (C), (G), 
                      (I), (J), and (L);
                          (ii) by redesignating subparagraphs (B), (D), 
                      (E), (H), (K), (M), and (N) as subparagraphs (A), 
                      (C), (D), (G), (H), and (I), respectively;
                          (iii) by inserting after subparagraph (A), as 
                      so redesignated, the following new subparagraph 
                      (B):
            ``(B) The annual report on intelligence provided to the 
        United Nations required by section 112(b)(1).''; and
                          (iv) by inserting after subparagraph (D), as 
                      so redesignated, the following new subparagraph 
                      (E):
            ``(E) The annual report on the acquisition of technology 
        relating to weapons of mass destruction and advanced 
        conventional munitions required by section 721 of the 
        Intelligence Authorization Act for Fiscal Year 1997 (Public Law 
        104-293; 50 U.S.C. 2366).''; and
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking ``section 
                      114(b)'' and inserting ``section 114(a)'';
                          (ii) in subparagraph (B), by striking 
                      ``section 114(d)'' and inserting ``section 
                      114(c)'';
                          (iii) by striking subparagraphs (C), (E), and 
                      (F); and
                          (iv) by redesignating subparagraphs (D) and 
                      (G) as subparagraphs (C) and (D), respectively; 
                      and
            (2) in subsection (b)--
                    (A) by striking paragraphs (1) and (4); and
                    (B) by redesignating paragraphs (2), (3), (5), (6), 
                (7), and (8) as paragraphs (1), (2), (3), (4), (5), and 
                (6), respectively.

    (m) Clerical Amendments.--
            (1) National security act of 1947.--The table of contents 
        for the National Security Act of 1947 is amended by striking the 
        item relating to section 603.
            (2) Title 28, united states code.--The table of sections at 
        the beginning of chapter 33 of title 28, United States Code, is 
        amended by striking the item relating to section 540C.

    (n) <<NOTE: 10 USC 1611 note.>> Effective Date.--The amendments made 
by this section shall take effect on December 31, 2003.

[[Page 117 STAT. 2627]]

                        Subtitle E--Other Matters

SEC. 371. EXTENSION OF 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) is amended--
            (1) in the heading, by striking ``two-year'' before 
        ``suspension of reorganization''; and
            (2) in the text, by striking ``ending on October 1, 2003'' 
        and inserting ``ending on the date that is 60 days after the 
        appropriate congressional committees of jurisdiction (as defined 
        in section 324(d) of that Act (22 U.S.C. 7304(d)) are notified 
        jointly by the Secretary of State (or the Secretary's designee) 
        and the Director of the Office of Management and Budget (or the 
        Director's designee) that the operational framework for the 
        office has been terminated''.

SEC. 372. MODIFICATIONS OF AUTHORITIES ON EXPLOSIVE MATERIALS.

    (a) Clarification of Aliens Authorized To Distribute Explosive 
Materials.--Section 842(d)(7) of title 18, United States Code, is 
amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B)--
                    (A) by inserting ``or'' at the end of clause (i); 
                and
                    (B) by striking clauses (iii) and (iv); and
            (3) by adding the following new subparagraphs:
                    ``(C) is a member of a North Atlantic Treaty 
                Organization (NATO) or other friendly foreign military 
                force, as determined by the Attorney General in 
                consultation with the Secretary of Defense, who is 
                present in the United States under military orders for 
                training or other military purpose authorized by the 
                United States and the shipping, transporting, 
                possession, or receipt of explosive materials is in 
                furtherance of the authorized military purpose; or
                    ``(D) is lawfully present in the United States in 
                cooperation with the Director of Central Intelligence, 
                and the shipment, transportation, receipt, or possession 
                of the explosive materials is in furtherance of such 
                cooperation;''.

    (b) Clarification of Aliens Authorized To Possess or Receive 
Explosive Materials.--Section 842(i)(5) of title 18, United States Code, 
is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B)--
                    (A) by inserting ``or'' at the end of clause (i); 
                and
                    (B) by striking clauses (iii) and (iv); and
            (3) by adding the following new subparagraphs:
                    ``(C) is a member of a North Atlantic Treaty 
                Organization (NATO) or other friendly foreign military 
                force, as determined by the Attorney General in 
                consultation with the Secretary of Defense, who is 
                present in the United States under military orders for 
                training or other military purpose authorized by the 
                United States and the shipping, transporting, 
                possession, or receipt of explosive materials is in 
                furtherance of the authorized military purpose; or

[[Page 117 STAT. 2628]]

                    ``(D) is lawfully present in the United States in 
                cooperation with the Director of Central Intelligence, 
                and the shipment, transportation, receipt, or possession 
                of the explosive materials is in furtherance of such 
                cooperation;''.

SEC. 373. MODIFICATION OF PROHIBITION ON THE NATURALIZATION OF CERTAIN 
            PERSONS.

    Section 313(e)(4) of the Immigration and Nationality Act (8 U.S.C. 
1424(e)(4)) is amended--
            (1) by inserting ``when Department of Defense activities are 
        relevant to the determination'' after ``Secretary of Defense''; 
        and
            (2) by inserting ``and the Secretary of Homeland Security'' 
        after ``Attorney General''.

SEC. 374. MODIFICATION TO DEFINITION OF FINANCIAL INSTITUTION IN RIGHT 
            TO FINANCIAL PRIVACY ACT.

    (a) Modification of Definition.--Section 1114 of the Right to 
Financial Privacy Act of 1978 (12 U.S.C. 3414) is amended by adding at 
the end the following:
    ``(d) For purposes of this section, and sections 1115 and 1117 
insofar as they relate to the operation of this section, the term 
`financial institution' has the same meaning as in subsections (a)(2) 
and (c)(1) of section 5312 of title 31, United States Code, except that, 
for purposes of this section, such term shall include only such a 
financial institution any part of which is located inside any State or 
territory of the United States, the District of Columbia, Puerto Rico, 
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, 
or the United States Virgin Islands.''.
    (b) Cross Reference Modification.--Section 1101(1) of such Act (12 
U.S.C. 3401(1)) is amended by inserting ``, except as provided in 
section 1114,'' before ``means any office''.

SEC. 375. COORDINATION OF FEDERAL GOVERNMENT RESEARCH ON SECURITY 
            EVALUATIONS.

    (a) Workshops for Coordination of Research.--The National Science 
Foundation and the Office of Science and Technology Policy shall jointly 
sponsor not less than two workshops on the coordination of Federal 
Government research on the use of behavioral, psychological, and 
physiological assessments of individuals in the conduct of security 
evaluations.
    (b) Deadline for Completion of Activities.--The activities of the 
workshops sponsored under subsection (a) shall be completed not later 
than March 1, 2004.
    (c) Purposes.--The purposes of the workshops sponsored under 
subsection (a) are as follows:
            (1) To provide a forum for cataloging and coordinating 
        federally funded research activities relating to the development 
        of new techniques in the behavioral, psychological, or 
        physiological assessment of individuals to be used in security 
        evaluations.
            (2) To develop a research agenda for the Federal Government 
        on behavioral, psychological, and physiological assessments of 
        individuals, including an identification of the research most 
        likely to advance the understanding of the use of such 
        assessments of individuals in security evaluations.
            (3) To distinguish between short-term and long-term areas of 
        research on behavioral, psychological, and physiological

[[Page 117 STAT. 2629]]

        assessments of individuals in order to maximize the utility of 
        short-term and long-term research on such assessments.
            (4) To identify the Federal agencies best suited to support 
        research on behavioral, psychological, and physiological 
        assessments of individuals.
            (5) To develop recommendations for coordinating future 
        federally funded research for the development, improvement, or 
        enhancement of security evaluations.

    (d) <<NOTE: Establishment.>> Advisory Group.--(1) In order to assist 
the National Science Foundation and the Office of Science and Technology 
Policy in carrying out the activities of the workshops sponsored under 
subsection (a), there is hereby established an interagency advisory 
group with respect to such workshops.

    (2) The advisory group shall be composed of the following:
            (A) A representative of the Social, Behavioral, and Economic 
        Directorate of the National Science Foundation.
            (B) A representative of the Office of Science and Technology 
        Policy.
            (C) The Secretary of Defense, or a designee of the 
        Secretary.
            (D) The Secretary of State, or a designee of the Secretary.
            (E) The Attorney General, or a designee of the Attorney 
        General.
            (F) The Secretary of Energy, or a designee of the Secretary.
            (G) The Secretary of Homeland Security, or a designee of the 
        Secretary.
            (H) The Director of Central Intelligence, or a designee of 
        the Director.
            (I) The Director of the Federal Bureau of Investigation, or 
        a designee of the Director.
            (J) The National Counterintelligence Executive, or a 
        designee of the National Counterintelligence Executive.
            (K) Any other official assigned to the advisory group by the 
        President for purposes of this section.

    (3) The members of the advisory group under subparagraphs (A) and 
(B) of paragraph (2) shall jointly head the advisory group.
    (4) The advisory group shall provide the Foundation and the Office 
such information, advice, and assistance with respect to the workshops 
sponsored under subsection (a) as the advisory group considers 
appropriate.
    (5) The advisory group shall not be treated as an advisory committee 
for purposes of the Federal Advisory Committee Act (5 U.S.C. App.).
    (e) FOIA Exemption.--All files of the National Science Foundation 
and the Office of Science and Technology Policy for purposes of 
administering this section, including any files of a Federal, State, or 
local department or agency or of a private sector entity provided to or 
utilized by a workshop or advisory group under this section, shall be 
exempt from the provisions of section 552 of title 5, United States 
Code, that require publication, disclosure, search, or review in 
connection therewith.
    (f) <<NOTE: Deadline.>> Report.--Not later than March 1, 2004, the 
National Science Foundation and the Office of Science and Technology 
Policy shall jointly submit to Congress a report on the results of 
activities of the workshops sponsored under subsection (a), including 
the findings and recommendations of the Foundation and the Office as a 
result of such activities.

[[Page 117 STAT. 2630]]

    (g) Funding.--(1) Of the amount authorized to be appropriated for 
the Intelligence Community Management Account by section 104(a), 
$500,000 shall be available to the National Science Foundation and the 
Office of Science and Technology Policy to carry out this section.
    (2) The amount authorized to be appropriated by paragraph (1) shall 
remain available until expended.

SEC. 376. TREATMENT OF CLASSIFIED INFORMATION IN MONEY LAUNDERING CASES.

    Section 5318A of title 31, United States Code, is amended by adding 
at the end the following:
    ``(f) Classified Information.--In any judicial review of a finding 
of the existence of a primary money laundering concern, or of the 
requirement for 1 or more special measures with respect to a primary 
money laundering concern, made under this section, if the designation or 
imposition, or both, were based on classified information (as defined in 
section 1(a) of the Classified Information Procedures Act (18 U.S.C. 
App.), such information may be submitted by the Secretary to the 
reviewing court ex parte and in camera. This subsection does not confer 
or imply any right to judicial review of any finding made or any 
requirement imposed under this section.''.

SEC. 377. TECHNICAL AMENDMENTS.

    (a) National Security Act of 1947.--Section 112(d)(1) of the 
National Security Act of 1947 (50 U.S.C. 404g(d)(1)) is amended by 
striking ``section 103(c)(6)'' and inserting ``section 103(c)(7)''.
    (b) Central Intelligence Agency Act of  1949.--(1) Section 5(a)(1) 
of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403f(a)(1)) is 
amended by striking ``(c)(6)'' each place it appears and inserting 
``(c)(7)''.
    (2) Section 6 of that Act (50 U.S.C. 403g) is amended by striking 
``section 103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-
3(c)(6))'' and inserting ``section 103(c)(7) of the National Security 
Act of 1947 (50 U.S.C. 403-3(c)(7))''.
    (3) Section 15 of that Act (50 U.S.C. 403o) is amended--
            (A) in subsection (a)(1), by striking ``special policemen of 
        the General Services Administration perform under the first 
        section of the Act entitled `An Act to authorize the Federal 
        Works Administrator or officials of the Federal Works Agency 
        duly authorized by him to appoint special policeman for duty 
        upon Federal property under the jurisdiction of the Federal 
        Works Agency, and for other purposes' (40 U.S.C. 318),'' and 
        inserting ``officers and agents of the Department of Homeland 
        Security, as provided in section 1315(b)(2) of title 40, United 
        States Code,''; and
            (B) in subsection (b), by striking ``the fourth section of 
        the Act referred to in subsection (a) of this section (40 U.S.C. 
        318c)'' and inserting ``section 1315(c)(2) of title 40, United 
        States Code''.

    (c) National Security Agency Act of  1959.--Section 11 of the 
National Security Agency Act of 1959 (50 U.S.C. 402 note) is amended--
            (1) in subsection (a)(1), by striking ``special policemen of 
        the General Services Administration perform under the first 
        section of the Act entitled `An Act to authorize the Federal 
        Works Administrator or officials of the Federal Works Agency

[[Page 117 STAT. 2631]]

        duly authorized by him to appoint special policeman for duty 
        upon Federal property under the jurisdiction of the Federal 
        Works Agency, and for other purposes' (40 U.S.C. 318)'' and 
        inserting ``officers and agents of the Department of Homeland 
        Security, as provided in section 1315(b)(2) of title 40, United 
        States Code,''; and
            (2) in subsection (b), by striking ``the fourth section of 
        the Act referred to in subsection (a) (40 U.S.C. 318c)'' and 
        inserting ``section 1315(c)(2) of title 40, United States 
        Code''.

    (d) Intelligence Authorization Act for Fiscal Year 2003.--Section 
343 of the Intelligence Authorization Act for Fiscal Year 2003 (Public 
Law 107-306; 116 Stat. 2399; 50 U.S.C. 404n-2) is amended--
            (1) in subsection (c), by striking ``section 103(c)(6) of 
        the National Security Act of 1947 (50 U.S.C. 403-3(c)(6))'' and 
        inserting ``section 103(c)(7) of the National Security Act of 
        1947 (50 U.S.C. 403-3(c)(7))''; and
            (2) in subsection (e)(2), by striking ``section 103(c)(6)'' 
        and inserting ``section 103(c)(7)''.

    (e) Federal Information Security Management Act of 2002.--Section 
3535(b)(1) of title 44, United States Code, as added by section 
1001(b)(1) of the Homeland Security Act of 2002 (Public Law 107-296), 
and section 3545(b)(1) of title 44, United States Code, as added by 
section 301(b)(1) of the E-Government Act of 2002 (Public Law 107-347), 
are each amended by inserting ``or any other law'' after ``1978''.
    (f) Public Law 107-173.--Section 201(c)(3)(F) of the Enhanced Border 
Security and Visa Entry Reform Act of 2002 (Public Law 107-173; 116 
Stat. 548; 8 U.S.C. 1721(c)(3)(F)) is amended by striking ``section 
103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-3(c)(6))'' 
and inserting ``section 103(c)(7) of the National Security Act of 1947 
(50 U.S.C. 403-3(c)(7))''.

                  TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. AMENDMENT TO CERTAIN CENTRAL INTELLIGENCE AGENCY ACT OF 1949 
            NOTIFICATION REQUIREMENTS.

    Section 4(b)(5) of the Central Intelligence Agency Act of 1949 (50 
U.S.C. 403e(b)(5)) is amended by inserting ``, other than regulations 
under paragraph (1),'' after ``Regulations''.

SEC. 402. PROTECTION OF CERTAIN CENTRAL INTELLIGENCE AGENCY PERSONNEL 
            FROM TORT LIABILITY.

    Section 15 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
403o) is amended by adding at the end the following new subsection:
    ``(d)(1) Notwithstanding any other provision of law, any Agency 
personnel designated by the Director under subsection (a), or designated 
by the Director under section 5(a)(4) to carry firearms for the 
protection of current or former Agency personnel and their immediate 
families, defectors and their immediate families, and other persons in 
the United States under Agency auspices, shall be considered for 
purposes of chapter 171 of title 28, United States Code, or any other 
provision of law relating to tort liability, to be acting within the 
scope of their office or employment when

[[Page 117 STAT. 2632]]

such Agency personnel take reasonable action, which may include the use 
of force, to--
            ``(A) protect an individual in the presence of such Agency 
        personnel from a crime of violence;
            ``(B) provide immediate assistance to an individual who has 
        suffered or who is threatened with bodily harm; or
            ``(C) prevent the escape of any individual whom such Agency 
        personnel reasonably believe to have committed a crime of 
        violence in the presence of such Agency personnel.

    ``(2) Paragraph (1) shall not affect the authorities of the Attorney 
General under section 2679 of title 28, United States Code.
    ``(3) In this subsection, the term `crime of violence' has the 
meaning given that term in section 16 of title 18, United States 
Code.''.

SEC. 403. REPEAL OF OBSOLETE LIMITATION ON USE OF FUNDS IN CENTRAL 
            SERVICES WORKING CAPITAL FUND.

    Section 21(f)(2) of the Central Intelligence Agency Act of 1949 (50 
U.S.C. 403u(f)(2)) is amended--
            (1) in subparagraph (A), by striking ``(A) Subject to 
        subparagraph (B), the Director'' and inserting ``The Director''; 
        and
            (2) by striking subparagraph (B).

SEC. 404. <<NOTE: 18 USC 4124 note.>> PURCHASES BY CENTRAL INTELLIGENCE 
            AGENCY OF PRODUCTS OF FEDERAL PRISON INDUSTRIES.

    Notwithstanding section 4124 of title 18, United States Code, 
purchases by the Central Intelligence Agency from Federal Prison 
Industries shall be made only if the Director of Central Intelligence 
determines that the product or service to be purchased from Federal 
Prison Industries best meets the needs of the Agency.

SEC. 405. POSTPONEMENT OF CENTRAL INTELLIGENCE AGENCY COMPENSATION 
            REFORM AND OTHER MATTERS.

    (a) Postponement of Compensation Reform Plan.--Section 402(a)(2) of 
the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-
306; 116 Stat. 2403; 50 U.S.C. 403-4 note) is amended by striking 
``February 1, 2004,'' and all that follows through the end and inserting 
``the date of the enactment of the Intelligence Authorization Act for 
Fiscal Year 2005.''.
    (b) Contribution by CIA Employees of Certain Bonus Pay to Thrift 
Savings Plan.--
            (1) Civil service retirement system participants.--Section 
        8351(d) of title 5, United States Code, is amended--
                    (A) by inserting ``(1)'' after ``(d)''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(2)(A) Only those employees of the Central Intelligence Agency 
participating in the pilot project required by section 402(b) of the 
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306; 
50 U.S.C. 403-4 note) and making contributions to the Thrift Savings 
Fund out of basic pay may also contribute (by direct transfer to the 
Fund) any part of bonus pay received by the employee as part of the 
pilot project.
    ``(B) Contributions under this paragraph are subject to section 
8432(d) of this title.''.
            (2) Federal employees' retirement system participants.--
        Section 8432 of title 5, United States Code, is amended by 
        adding at the end the following new subsection:

[[Page 117 STAT. 2633]]

    ``(k)(1) Only those employees of the Central Intelligence Agency 
participating in the pilot project required by section 402(b) of the 
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306; 
50 U.S.C. 403-4 note) and making contributions to the Thrift Savings 
Fund out of basic pay may also contribute (by direct transfer to the 
Fund) any part of bonus pay received by the employee as part of the 
pilot project.
    ``(2) Contributions under this subsection are subject to subsection 
(d).
    ``(3) For purposes of subsection (c), basic pay of an employee of 
the Central Intelligence Agency participating in the pilot project 
referred to in paragraph (1) shall include bonus pay received by the 
employee as part of the pilot project.''.
    (c) <<NOTE: 50 USC 403-4 note.>> Report.--(1) The Director of 
Central Intelligence shall submit to the congressional intelligence 
committees a report on the amount of compensation (including basic pay, 
bonuses, and employer contributions to the Thrift Savings Plan) of each 
employee of the Central Intelligence Agency participating in the pilot 
project required by section 402(b) of the Intelligence Authorization Act 
for Fiscal Year 2003 (Public Law 107-306; 116 Stat. 2403; 50 U.S.C. 403-
4 note), and on the amount that each such employee would have received 
had such employee received compensation under the existing system of 
compensation used by the Agency.

    (2) The report required by paragraph (1) shall be submitted together 
with the report required by paragraph (3) of such section 402(b).
    (3) In this subsection, the term ``congressional intelligence 
committees'' has the meaning given that term in section 402(d) of the 
Intelligence Authorization Act for Fiscal Year 2003.

           TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

SEC. 501. PROTECTION OF CERTAIN NATIONAL SECURITY AGENCY PERSONNEL FROM 
            TORT LIABILITY.

    Section 11 of the National Security Agency Act of 1959 (50 U.S.C. 
402 note) is amended by adding at the end the following new subsection:
    ``(d)(1) Notwithstanding any other provision of law, agency 
personnel designated by the Director of the National Security Agency 
under subsection (a) shall be considered for purposes of chapter 171 of 
title 28, United States Code, or any other provision of law relating to 
tort liability, to be acting within the scope of their office or 
employment when such agency personnel take reasonable action, which may 
include the use of force, to--
            ``(A) protect an individual in the presence of such agency 
        personnel from a crime of violence;
            ``(B) provide immediate assistance to an individual who has 
        suffered or who is threatened with bodily harm; or
            ``(C) prevent the escape of any individual whom such agency 
        personnel reasonably believe to have committed a crime of 
        violence in the presence of such agency personnel.

    ``(2) Paragraph (1) shall not affect the authorities of the Attorney 
General under section 2679 of title 28, United States Code.

[[Page 117 STAT. 2634]]

    ``(3) In this subsection, the term `crime of violence' has the 
meaning given that term in section 16 of title 18, United States 
Code.''.

SEC. 502. 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 year 2004, and any unobligated funds 
available to any element of the intelligence community for such 
activities for a prior fiscal year, shall be available--
            (1) to support a unified campaign by the Government of 
        Colombia 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
            (2) to take actions to protect human health and welfare in 
        emergency circumstances, including undertaking rescue 
        operations.

    (b) Applicability of Certain Laws and Limitations.--The use of funds 
pursuant to the authority in subsection (a) shall be subject to the 
following:
            (1) Sections 556, 567, and 568 of the Foreign Operations, 
        Export Financing, and Related Programs Appropriations Act, 2002 
        (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
            (2) Section 8077 of the Department of Defense Appropriations 
        Act, 2004 (Public Law 108-87; 117 Stat. 1090).
            (3) The numerical limitations on the number of United States 
        military personnel and United States individual civilian 
        contractors in section 3204(b)(1) of the Emergency Supplemental 
        Act, 2000 (division B of Public Law 106-246; 114 Stat. 575), as 
        amended by the Foreign Operations, Export Financing, and Related 
        Programs Appropriations Act, 2002 (115 Stat. 2131).

    (c) Limitation on Participation of United States Personnel.--No 
United States Armed Forces personnel or United States civilian 
contractor employed by the United States Armed Forces 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 
during the course of search and rescue operations for United States 
citizens.

SEC. 503. SCENE VISUALIZATION TECHNOLOGIES.

    Of the amount authorized to be appropriated by this Act, $2,500,000 
shall be available for the National Geospatial-Intelligence Agency (NGA) 
for scene visualization technologies.

SEC. 504. MEASUREMENT AND SIGNATURES INTELLIGENCE RESEARCH PROGRAM.

    (a) Research Program.--(1) The Secretary of Defense and the Director 
of Central Intelligence shall jointly carry out a program to incorporate 
the results of basic research on sensors into the measurement and 
signatures intelligence systems of the United States, to the extent the 
results of such research are applicable to such systems.

[[Page 117 STAT. 2635]]

    (2) In carrying out paragraph (1), the Secretary of Defense and the 
Director of Central Intelligence shall act through the Director of the 
Defense Intelligence Agency's Directorate for MASINT and Technical 
Collection (hereinafter in this section referred to as the 
``Director'').
    (b) Program Components.--The program under subsection (a) shall 
review and assess basic research on sensors and technologies conducted 
both by the United States Government and by non-governmental entities. 
In carrying out the program, the Director shall protect intellectual 
property rights, maintain organizational flexibility, and establish 
research projects, funding levels, and potential benefits in an 
equitable manner through the Directorate.
    (c) <<NOTE: Establishment.>> Advisory Panel.--(1) The Director shall 
establish an advisory panel to assist the Director in carrying out the 
program under subsection (a).

    (2) The advisory panel shall be headed by the Director who shall 
determine the selection, review, and assessment of the research projects 
under the program.
    (3)(A) The Director shall appoint as members of the advisory panel 
representatives of each entity of the MASINT community, and may appoint 
as such members representatives of national laboratories, universities, 
and private sector entities.
    (B) For purposes of this subsection the term ``MASINT community'' 
means academic, professional, industrial, and government entities that 
are committed towards the advancement of the sciences in measurement and 
signatures intelligence.
    (C) The term for a member of the advisory panel shall be established 
by the Director, but may not exceed a period of 5 consecutive years.
    (D) Members of the advisory panel may not receive additional pay, 
allowances, or benefits by reason of their service on the advisory 
panel, but may receive per diem in lieu of subsistence, in accordance 
with applicable provisions under subchapter I of chapter 57 of title 5, 
United States Code.
    (4) The Director may accept contributions from non-governmental 
participants on the advisory panel to defray the expenses of the 
advisory panel.
    (5) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the activities of the advisory panel established under this 
subsection.
    (d) FOIA Exemption.--All files in the possession of the Defense 
Intelligence Agency for purposes of administering the program under this 
section, including any files of a Federal, State, or local department or 
agency or of a private sector entity provided to or utilized by the 
program, shall be exempt from the provisions of section 552 of title 5, 
United States Code, that require publication, disclosure, search, or 
review in connection therewith.

SEC. 505. AVAILABILITY OF FUNDS OF NATIONAL SECURITY AGENCY FOR NATIONAL 
            SECURITY SCHOLARSHIPS.

    (a) Availability of Funds.--Any funds authorized to be appropriated 
for the National Security Agency for a fiscal year after fiscal year 
2003 may be made available to the Independent College Fund of Maryland 
(also known as the ``I-Fund'') for the purpose of the establishment and 
provision of national security scholarships to the extent such funds are 
specifically authorized for that purpose.

[[Page 117 STAT. 2636]]

    (b) Mechanisms of Availability.--Funds may be made available to the 
Independent College Fund of Maryland under subsection (a) by grant, 
contract, cooperative agreement, or such other appropriate mechanisms as 
the Director of the National Security Agency considers appropriate.

    Approved December 13, 2003.

LEGISLATIVE HISTORY--H.R. 2417 (S. 1025):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 108-163 (Permanent Select Comm. on Intelligence) and 
108-381 (Comm. of Conference).
SENATE REPORTS: Nos. 108-44 (Select Comm. on Intelligence) and 108-80 
(Comm. on Armed Services) both accompanying S. 1025.
CONGRESSIONAL RECORD, Vol. 149 (2003):
            June 25-27, considered and passed House.
            July 31, considered and passed Senate, amended, in lieu of 
                S. 1025.
            Nov. 20, House agreed to conference report.
            Nov. 21, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
            Dec. 13, Presidential statement.

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