23 November 2002 Source: http://www.access.gpo.gov/su_docs/multidb.html ----------------------------------------------------------------------- [DOCID: f:hr789.107] From the House Reports Online via GPO Access [wais.access.gpo.gov] 107th Congress Report HOUSE OF REPRESENTATIVES 2d Session 107-789 ====================================================================== INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2003 _______ November 14, 2002.--Ordered to be printed _______ Mr. Goss, from the committee of conference, submitted the following CONFERENCE REPORT [To accompany H.R. 4628] The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 4628), to authorize appropriations for fiscal year 2003 for intelligence and intelligence-related activities of the United States Government, the Community Management Account, and the Central Intelligence Agency Retirement and Disability System, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Intelligence Authorization Act for Fiscal Year 2003''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--INTELLIGENCE ACTIVITIES Sec. 101. Authorization of appropriations. Sec. 102. Classified schedule of authorizations. Sec. 103. Personnel ceiling adjustments. Sec. 104. Intelligence Community Management Account. Sec. 105. Authorization of emergency supplemental appropriations for fiscal year 2002. Sec. 106. Additional authorizations of appropriations for intelligence for the war on terrorism. Sec. 107. Specific authorization of funds for intelligence or intelligence-related activities for which fiscal year 2003 appropriations exceed amounts authorized. Sec. 108. Incorporation of reporting requirements. Sec. 109. Preparation and submittal of reports, reviews, studies, and plans relating to intelligence activities of Department of Defense or Department of Energy. TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM Sec. 201. Authorization of appropriations. TITLE III--GENERAL PROVISIONS Subtitle A--Recurring General Provisions Sec. 301. Increase in employee compensation and benefits authorized by law. Sec. 302. Restriction on conduct of intelligence activities. Sec. 303. Sense of Congress on intelligence community contracting. Subtitle B--Intelligence Sec. 311. Specificity of National Foreign Intelligence Program budget amounts for counterterrorism, counterproliferation, counternarcotics, and counterintelligence. Sec. 312. Prohibition on compliance with requests for information submitted by foreign governments. Sec. 313. National Virtual Translation Center. Subtitle C--Personnel Sec. 321. Standards and qualifications for the performance of intelligence activities. Sec. 322. Modification of excepted agency voluntary leave transfer authority. Sec. 323. Sense of Congress on diversity in the workforce of intelligence community agencies. Sec. 324. Annual report on hiring and retention of minority employees in the intelligence community. Sec. 325. Report on establishment of a Civilian Linguist Reserve Corps. Subtitle D--Education Sec. 331. Scholarships and work-study for pursuit of graduate degrees in science and technology. Sec. 332. Cooperative relationship between the National Security Education Program and the Foreign Language Center of the Defense Language Institute. Sec. 333. Establishment of National Flagship Language Initiative within the National Security Education Program. Sec. 334. Report on the National Security Education Program. Subtitle E--Terrorism Sec. 341. Foreign Terrorist Asset Tracking Center. Sec. 342. Semiannual report on financial intelligence on terrorist assets (FITA). Sec. 343. Terrorist Identification Classification System. Subtitle F--Other Matters Sec. 351. Additional one-year suspension of reorganization of Diplomatic Telecommunications Service Program Office. Sec. 352. Standardized transliteration of names into the Roman alphabet. Sec. 353. Definition of congressional intelligence committees in National Security Act of 1947. TITLE IV--CENTRAL INTELLIGENCE AGENCY Sec. 401. Two-year extension of Central Intelligence Agency Voluntary Separation Pay Act. Sec. 402. Implementation of compensation reform plan. TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES Sec. 501. Use of funds for counterdrug and counterterrorism activities for Colombia. Sec. 502. Protection of operational files of the National Reconnaissance Office. Sec. 503. Eligibility of employees in Intelligence Senior Level positions for Presidential Rank Awards. TITLE VI--NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED STATES. Sec. 601. Establishment of Commission. Sec. 602. Purposes. Sec. 603. Composition of Commission. Sec. 604. Functions of Commission. Sec. 605. Powers of Commission. Sec. 606. Nonapplicability of Federal Advisory Committee Act. Sec. 607. Staff of Commission. Sec. 608. Compensation and travel expenses. Sec. 609. Security clearances for Commission members and staff. Sec. 610. Reports of Commission; termination. Sec. 611. Funding. TITLE VII--INFORMATION SHARING Sec. 701. Short title. Sec. 702. Findings and sense of Congress. Sec. 703. Facilitating homeland security information sharing procedures. Sec. 704. Report. Sec. 705. Authorization of appropriations. Sec. 706. Coordination provision. TITLE VIII--REPORTING REQUIREMENTS Subtitle A--Overdue Reports Sec. 801. Deadline for submittal of various overdue reports. Subtitle B--Submittal of Reports to Intelligence Committees Sec. 811. Dates for submittal of various annual and semiannual reports to the congressional intelligence committees. Subtitle C--Recurring Annual Reports Sec. 821. Annual report on threat of attack on the United States using weapons of mass destruction. Sec. 822. Annual report on covert leases. Sec. 823. Annual report on improvement of financial statements of certain elements of the intelligence community for auditing purposes. Sec. 824. Annual report on activities of Federal Bureau of Investigation personnel outside the United States. Sec. 825. Annual reports of inspectors general of the intelligence community on proposed resources and activities of their offices. Sec. 826. Annual report on counterdrug intelligence matters. Sec. 827. Annual report on foreign companies involved in the proliferation of weapons of mass destruction that raise funds in the United States capital markets. Subtitle D--Other Reports Sec. 831. Report on effect of country-release restrictions on allied intelligence-sharing relationships. Sec. 832. Evaluation of policies and procedures of Department of State on protection of classified information at department headquarters. Subtitle E--Repeal of Certain Report Requirements Sec. 841. Repeal of certain report requirements. TITLE IX--COUNTERINTELLIGENCE ACTIVITIES Sec. 901. Short title; purpose. Sec. 902. National Counterintelligence Executive. Sec. 903. National Counterintelligence Policy Board. Sec. 904. Office of the National Counterintelligence Executive. TITLE X--NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY Sec. 1001. Findings. Sec. 1002. National Commission for the Review of the Research and Development Programs of the United States Intelligence Community. Sec. 1003. Powers of Commission. Sec. 1004. Staff of Commission. Sec. 1005. Compensation and travel expenses. Sec. 1006. Treatment of information relating to national security. Sec. 1007. Final report; termination. Sec. 1008. Assessments of final report. Sec. 1009. Inapplicability of certain administrative provisions. Sec. 1010. Funding. Sec. 1011. Definitions. TITLE I--INTELLIGENCE ACTIVITIES SEC. 101. AUTHORIZATION OF APPROPRIATIONS. Funds are hereby authorized to be appropriated for fiscal year 2003 for the conduct of the intelligence and intelligence- related activities of the following elements of the United States Government: (1) The Central Intelligence Agency. (2) The Department of Defense. (3) The Defense Intelligence Agency. (4) The National Security Agency. (5) The Department of the Army, the Department of the Navy, and the Department of the Air Force. (6) The Department of State. (7) The Department of the Treasury. (8) The Department of Energy. (9) The Federal Bureau of Investigation. (10) The National Reconnaissance Office. (11) The National Imagery and Mapping Agency. (12) The Coast Guard. SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS. (a) Specifications of Amounts and Personnel Ceilings.--The amounts authorized to be appropriated under section 101, and the authorized personnel ceilings as of September 30, 2003, for the conduct of the intelligence and intelligence-related activities of the elements listed in such section, are those specified in the classified Schedule of Authorizations prepared to accompany the conference report on H.R. 4628 of the One Hundred Seventh Congress. (b) Availability of Classified Schedule of Authorizations.--The Schedule of Authorizations shall be made available to the Committees on Appropriations of the Senate and House of Representatives and to the President. The President shall provide for suitable distribution of the Schedule, or of appropriate portions of the Schedule, within the executive branch. SEC. 103. PERSONNEL CEILING ADJUSTMENTS. (a) Authority for Adjustments.--With the approval of the Director of the Office of Management and Budget, the Director of Central Intelligence may authorize employment of civilian personnel in excess of the number authorized for fiscal year 2003 under section 102 when the Director of Central Intelligence determines that such action is necessary to the performance of important intelligence functions, except that the number of personnel employed in excess of the number authorized under such section may not, for any element of the intelligence community, exceed 2 percent of the number of civilian personnel authorized under such section for such element. (b) Notice to Intelligence Committees.--The Director of Central Intelligence shall notify promptly the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate whenever the Director exercises the authority granted by this section. SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT. (a) Authorization of Appropriations.--There is authorized to be appropriated for the Intelligence Community Management Account of the Director of Central Intelligence for fiscal year 2003 the sum of $158,254,000. Within such amount, funds identified in the classified Schedule of Authorizations referred to in section 102(a) for advanced research and development shall remain available until September 30, 2004. (b) Authorized Personnel Levels.--The elements within the Intelligence Community Management Account of the Director of Central Intelligence are authorized 322 full-time personnel as of September 30, 2003. Personnel serving in such elements may be permanent employees of the Intelligence Community Management Account or personnel detailed from other elements of the United States Government. (c) Classified Authorizations.-- (1) Authorization of appropriations.--In addition to amounts authorized to be appropriated for the Intelligence Community Management Account by subsection (a), there are also authorized to be appropriated for the Intelligence Community Management Account for fiscal year 2003 such additional amounts as are specified in the classified Schedule of Authorizations referred to in section 102(a). Such additional amounts for research and development shall remain available until September 30, 2004. (2) Authorization of personnel.--In addition to the personnel authorized by subsection (b) for elements of the Intelligence Community Management Account as of September 30, 2003, there are hereby authorized such additional personnel for such elements as of that date as are specified in the classified Schedule of Authorizations. (d) Reimbursement.--Except as provided in section 113 of the National Security Act of 1947 (50 U.S.C. 404h), during fiscal year 2003 any officer or employee of the United States or a member of the Armed Forces who is detailed to the staff of the Intelligence Community Management Account from another element of the United States Government shall be detailed on a reimbursable basis, except that any such officer, employee, or member may be detailed on a nonreimbursable basis for a period of less than one year for the performance of temporary functions as required by the Director of Central Intelligence. (e) National Drug Intelligence Center.-- (1) In general.--Of the amount authorized to be appropriated in subsection (a), $34,100,000 shall be available for the National Drug Intelligence Center. Within such amount, funds provided for research, development, testing, and evaluation purposes shall remain available until September 30, 2004, and funds provided for procurement purposes shall remain available until September 30, 2005. (2) Transfer of funds.--The Director of Central Intelligence shall transfer to the Attorney General funds available for the National Drug Intelligence Center under paragraph (1). The Attorney General shall utilize funds so transferred for the activities of the National Drug Intelligence Center. (3) Limitation.--Amounts available for the National Drug Intelligence Center may not be used in contravention of the provisions of section 103(d)(1) of the National Security Act of 1947 (50 U.S.C. 403- 3(d)(1)). (4) Authority.--Notwithstanding any other provision of law, the Attorney General shall retain full authority over the operations of the National Drug Intelligence Center. SEC. 105. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2002. (a) Authorization.--Amounts authorized to be appropriated for fiscal year 2002 under section 101 of the Intelligence Authorization Act for Fiscal Year 2002 (Public Law 107-108) for the conduct of the intelligence activities of elements of the United States Government listed in such section are hereby increased, with respect to any such authorized amount, by the amount by which appropriations pursuant to such authorization were increased by the following: (1) The Emergency Supplemental Act, 2002 (contained in division B of Public Law 107-117), including section 304 of such Act (115 Stat. 2300). (2) The 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on the United States (Public Law 107-206), for such amounts as are designated by Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)). (b) Ratification.--For purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 414), any obligation or expenditure of those amounts deemed to have been specifically authorized by the Acts referred to in subsection (a) is hereby ratified and confirmed. SEC. 106. ADDITIONAL AUTHORIZATIONS OF APPROPRIATIONS FOR INTELLIGENCE FOR THE WAR ON TERRORISM. (a) In General.--Subject to subsection (b), the amounts requested in the letter dated July 3, 2002, of the President to the Speaker of the House of Representatives, related to the Defense Emergency Response Fund and that are designated for the incremental costs of intelligence and intelligence-related activities for the war on terrorism are authorized. (b) Limitations.--The amounts referred to in subsection (a)-- (1) are authorized only for activities directly related to identifying, responding to, or protecting against acts or threatened acts of terrorism; (2) are not authorized to correct programmatic or fiscal deficiencies in major acquisition programs which will not achieve initial operational capabilities within two years of the date of the enactment of this Act; and (3) are not available until the end of the 10-day period that begins on the date written notice is provided to the Select Committee on Intelligence and the Committee on Appropriations of the Senate and the Permanent Select Committee on Intelligence and the Committee on Appropriations of the House of Representatives. SEC. 107. SPECIFIC AUTHORIZATION OF FUNDS FOR INTELLIGENCE OR INTELLIGENCE-RELATED ACTIVITIES FOR WHICH FISCAL YEAR 2003 APPROPRIATIONS EXCEED AMOUNTS AUTHORIZED. Funds appropriated for an intelligence or intelligence- related activity for fiscal year 2003 in excess of the amount specified for such activity in the classified Schedule of Authorizations prepared to accompany this Act shall be deemed to be specifically authorized by Congress for purposes of section 504(a)(3) of the National Security Act of 1947 (50 U.S.C. 414(a)(3)). SEC. 108. INCORPORATION OF REPORTING REQUIREMENTS. (a) In General.--Each requirement to submit a report to the congressional intelligence committees that is included in the joint explanatory statement to accompany the conference report on the bill H.R. 4628 of the One Hundred Seventh Congress, or in the classified annex to this Act, is hereby incorporated into this Act, and is hereby made a requirement in law. (b) Congressional Intelligence Committees Defined.--In this section, the term ``congressional intelligence committees'' means-- (1) the Select Committee on Intelligence of the Senate; and (2) the Permanent Select Committee on Intelligence of the House of Representatives. SEC. 109. PREPARATION AND SUBMITTAL OF REPORTS, REVIEWS, STUDIES, AND PLANS RELATING TO INTELLIGENCE ACTIVITIES OF DEPARTMENT OF DEFENSE OR DEPARTMENT OF ENERGY. (a) Consultation in Preparation.--(1) The Director of Central Intelligence shall ensure that any report, review, study, or plan required to be prepared or conducted by a provision of this Act, including a provision of the classified Schedule of Authorizations referred to in section 102(a) or the classified annex to this Act, that involves the intelligence or intelligence-related activities of the Department of Defense or the Department of Energy is prepared or conducted in consultation with the Secretary of Defense or the Secretary of Energy, as appropriate. (2) The Secretary of Defense or the Secretary of Energy may carry out any consultation required by this subsection through an official of the Department of Defense or the Department of Energy, as the case may be, designated by such Secretary for that purpose. (b) Submittal.--Any report, review, study, or plan referred to in subsection (a) shall be submitted, in addition toany other committee of Congress specified for submittal in the provision concerned, to the following committees of Congress: (1) The Committees on Armed Services and Appropriations and the Select Committee on Intelligence of the Senate. (2) The Committees on Armed Services and Appropriations and the Permanent Select Committee on Intelligence of the House of Representatives. TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM SEC. 201. AUTHORIZATION OF APPROPRIATIONS. There is authorized to be appropriated for the Central Intelligence Agency Retirement and Disability Fund for fiscal year 2003 the sum of $222,500,000. TITLE III--GENERAL PROVISIONS Subtitle A--Recurring General Provisions SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY LAW. Appropriations authorized by this Act for salary, pay, retirement, and other benefits for Federal employees may be increased by such additional or supplemental amounts as may be necessary for increases in such compensation or benefits authorized by law. SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES. The authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise authorized by the Constitution or the laws of the United States. SEC. 303. SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY CONTRACTING. It is the sense of Congress that the Director of Central Intelligence should continue to direct that elements of the intelligence community, whenever compatible with the national security interests of the United States and consistent with operational and security concerns related to the conduct of intelligence activities, and where fiscally sound, should competitively award contracts in a manner that maximizes the procurement of products properly designated as having been made in the United States. Subtitle B--Intelligence SEC. 311. SPECIFICITY OF NATIONAL FOREIGN INTELLIGENCE PROGRAM BUDGET AMOUNTS FOR COUNTERTERRORISM, COUNTERPROLIFERATION, COUNTERNARCOTICS, AND COUNTERINTELLIGENCE. (a) In General.--Title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.) is amended by adding at the end the following new section: ``SPECIFICITY OF NATIONAL FOREIGN INTELLIGENCE PROGRAM BUDGET AMOUNTS FOR COUNTERTERRORISM, COUNTERPROLIFERATION, COUNTERNARCOTICS, AND COUNTERINTELLIGENCE ``Sec. 506. (a) In General.--The budget justification materials submitted to Congress in support of the budget of the President for a fiscal year that is submitted to Congress under section 1105(a) of title 31, United States Code, shall set forth separately the aggregate amount requested for that fiscal year for the National Foreign Intelligence Program for each of the following: ``(1) Counterterrorism. ``(2) Counterproliferation. ``(3) Counternarcotics. ``(4) Counterintelligence. ``(b) Election of Classified or Unclassified Form.--Amounts set forth under subsection (a) may be set forth in unclassified form or classified form, at the election of the Director of Central Intelligence.''. (b) Clerical Amendment.--The table of sections for that Act is amended by inserting after the item relating to section 505 the following new item: ``Sec. 506. Specificity of National Foreign Intelligence Program budget amounts for counterterrorism, counterproliferation, counternarcotics, and counterintelligence.''. SEC. 312. PROHIBITION ON COMPLIANCE WITH REQUESTS FOR INFORMATION SUBMITTED BY FOREIGN GOVERNMENTS. Section 552(a)(3) of title 5, United States Code, is amended-- (1) in subparagraph (A) by inserting ``and except as provided in subparagraph (E),'' after ``of this subsection,''; and (2) by adding at the end the following: ``(E) An agency, or part of an agency, that is an element of the intelligence community (as that term is defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4))) shall not make any record available under this paragraph to-- ``(i) any government entity, other than a State, territory, commonwealth, or district of the United States, or any subdivision thereof; or ``(ii) a representative of a government entity described in clause (i).''. SEC. 313. NATIONAL VIRTUAL TRANSLATION CENTER. (a) Establishment.--The Director of Central Intelligence, acting as the head of the intelligence community, shall establish in the intelligence community an element with the function of connecting the elements of the intelligence community engaged in the acquisition, storage, translation, or analysis of voice or data in digital form. (b) Designation.--The element established under subsection (a) shall be known as the National Virtual Translation Center. (c) Administrative Matters.--(1) The Director shall retain direct supervision and control over the element established under subsection (a). (2) The element established under subsection (a) shall connect elements of the intelligence community utilizing themost current available information technology that is applicable to the function of the element. (d) Deadline for Establishment.--The element required by subsection (a) shall be established as soon as practicable after the date of the enactment of this Act, but not later than 90 days after that date. Subtitle C--Personnel SEC. 321. STANDARDS AND QUALIFICATIONS FOR THE PERFORMANCE OF INTELLIGENCE ACTIVITIES. Section 104 of the National Security Act of 1947 (50 U.S.C. 403-4) is amended-- (1) by redesignating subsection (g) as subsection (h); and (2) by inserting after subsection (f) the following new subsection (g): ``(g) Standards and Qualifications for Performance of Intelligence Activities.--The Director, acting as the head of the intelligence community, shall, in consultation with the heads of effected agencies, develop standards and qualifications for persons engaged in the performance of intelligence activities within the intelligence community.''. SEC. 322. MODIFICATION OF EXCEPTED AGENCY VOLUNTARY LEAVE TRANSFER AUTHORITY. (a) In General.--Section 6339 of title 5, United States Code, is amended-- (1) by striking subsection (b); (2) by redesignating subsection (c) as subsection (b); and (3) by inserting after subsection (b) (as so redesignated by paragraph (2)) the following: ``(c)(1) Notwithstanding any provision of subsection (b), the head of an excepted agency may, at his sole discretion, by regulation establish a program under which an individual employed in or under such excepted agency may participate in a leave transfer program established under the provisions of this subchapter outside of this section, including provisions permitting the transfer of annual leave accrued or accumulated by such employee to, or permitting such employee to receive transferred leave from, an employee of any other agency (including another excepted agency having a program under this subsection). ``(2) To the extent practicable and consistent with the protection of intelligence sources and methods, any program established under paragraph (1) shall be consistent with the provisions of this subchapter outside of this section and with any regulations issued by the Office of Personnel Management implementing this subchapter.''. (b) Conforming Amendments.--Section 6339 of such title is amended-- (1) in paragraph (2) of subsection (b) (as so redesignated by subsection (a)(2)), by striking ``under this section'' and inserting ``under this subsection''; and (2) in subsection (d), by striking ``of Personnel Management''. SEC. 323. SENSE OF CONGRESS ON DIVERSITY IN THE WORKFORCE OF INTELLIGENCE COMMUNITY AGENCIES. (a) Findings.--Congress finds the following: (1) The United States is engaged in a war against terrorism that requires the active participation of the intelligence community. (2) Certain intelligence agencies, among them the Federal Bureau of Investigation and the Central Intelligence Agency, have announced that they will be hiring several hundred new agents to help conduct the war on terrorism. (3) Former Directors of the Federal Bureau of Investigation, the Central Intelligence Agency, the National Security Agency, and the Defense Intelligence Agency have stated that a more diverse intelligence community would be better equipped to gather and analyze information on diverse communities. (4) The Central Intelligence Agency and the National Security Agency were authorized to establish an undergraduate training program for the purpose of recruiting and training minority operatives in 1987. (5) The Defense Intelligence Agency was authorized to establish an undergraduate training program for the purpose of recruiting and training minority operatives in 1988. (6) The National Imagery and Mapping Agency was authorized to establish an undergraduate training program for the purpose of recruiting and training minority operatives in 2000. (b) Sense of Congress.--It is the sense of Congress that-- (1) the Director of the Federal Bureau of Investigation (with respect to the intelligence and intelligence-related activities of the Bureau), the Director of Central Intelligence, the Director of the National Security Agency, and the Director of the Defense Intelligence Agency should make the creation of a more diverse workforce a priority in hiring decisions; and (2) the Director of Central Intelligence, the Director of the National Security Agency, the Director of the Defense Intelligence Agency, and the Director of the National Imagery and Mapping Agency should increase their minority recruitment efforts through the undergraduate training program provided for under law. SEC. 324. ANNUAL REPORT ON HIRING AND RETENTION OF MINORITY EMPLOYEES IN THE INTELLIGENCE COMMUNITY. Section 114 of the National Security Act of 1947 (50 U.S.C. 404i) is amended-- (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: ``(c) Annual Report on Hiring and Retention of Minority Employees.--(1) The Director of Central Intelligence shall, on an annual basis, submit to Congress a reporton the employment of covered persons within each element of the intelligence community for the preceding fiscal year. ``(2) Each such report shall include disaggregated data by category of covered person from each element of the intelligence community on the following: ``(A) Of all individuals employed in the element during the fiscal year involved, the aggregate percentage of such individuals who are covered persons. ``(B) Of all individuals employed in the element during the fiscal year involved at the levels referred to in clauses (i) and (ii), the percentage of covered persons employed at such levels: ``(i) Positions at levels 1 through 15 of the General Schedule. ``(ii) Positions at levels above GS-15. ``(C) Of all individuals hired by the element involved during the fiscal year involved, the percentage of such individuals who are covered persons. ``(3) Each such report shall be submitted in unclassified form, but may contain a classified annex. ``(4) Nothing in this subsection shall be construed as providing for the substitution of any similar report required under another provision of law. ``(5) In this subsection, the term `covered persons' means-- ``(A) racial and ethnic minorities; ``(B) women; and ``(C) individuals with disabilities.''. SEC. 325. REPORT ON ESTABLISHMENT OF A CIVILIAN LINGUIST RESERVE CORPS. (a) Report.--The Secretary of Defense, acting through the Director of the National Security Education Program, shall prepare a report on the feasibility of establishing a Civilian Linguist Reserve Corps comprised of individuals with advanced levels of proficiency in foreign languages who are United States citizens who would be available upon a call of the President to perform such service or duties with respect to such foreign languages in the Federal Government as the President may specify. In preparing the report, the Secretary shall consult with such organizations having expertise in training in foreign languages as the Secretary determines appropriate. (b) Matters Considered.-- (1) In general.--In conducting the study, the Secretary shall develop a proposal for the structure and operations of the Civilian Linguist Reserve Corps. The proposal shall establish requirements for performance of duties and levels of proficiency in foreign languages of the members of the Civilian Linguist Reserve Corps, including maintenance of language skills and specific training required for performance of duties as a linguist of the Federal Government, and shall include recommendations on such other matters as the Secretary determines appropriate. (2) Consideration of use of defense language institute and language registries.--In developing the proposal under paragraph (1), the Secretary shall consider the appropriateness of using-- (A) the Defense Language Institute to conduct testing for language skills proficiency and performance, and to provide language refresher courses; and (B) foreign language skill registries of the Department of Defense or of other agencies or departments of the United States to identify individuals with sufficient proficiency in foreign languages. (3) Consideration of the model of the reserve components of the armed forces.--In developing the proposal under paragraph (1), the Secretary shall consider the provisions of title 10, United States Code, establishing and governing service in the Reserve Components of the Armed Forces, as a model for the Civilian Linguist Reserve Corps. (c) Completion of Report.--Not later than 6 months after the date of the enactment of this Act, the Secretary shall submit to Congress the report prepared under subsection (a). (d) Authorization of Appropriations.--There is authorized to be appropriated to the Secretary of Defense $300,000 to carry out this section. Subtitle D--Education SEC. 331. SCHOLARSHIPS AND WORK-STUDY FOR PURSUIT OF GRADUATE DEGREES IN SCIENCE AND TECHNOLOGY. (a) Program Authorized.--The National Security Act of 1947 is amended-- (1) by redesignating title X as title XI; (2) by redesignating section 1001 as section 1101; and (3) by inserting after title IX the following new title X: ``TITLE X--EDUCATION IN SUPPORT OF NATIONAL INTELLIGENCE ``SCHOLARSHIPS AND WORK-STUDY FOR PURSUIT OF GRADUATE DEGREES IN SCIENCE AND TECHNOLOGY ``Sec. 1001. (a) Program Authorized.--The Director of Central Intelligence may carry out a program to provide scholarships and work-study for individuals who are pursuing graduate degrees in fields of study in science and technology that are identified by the Director as appropriate to meet the future needs of the intelligence community for qualified scientists and engineers. ``(b) Administration.--If the Director carries out the program under subsection (a), the Director shall administer the program through the Assistant Director of Central Intelligence for Administration. ``(c) Identification of Fields of Study.--If the Director carries out the program under subsection (a), the Director shall identify fields of study under subsection (a) in consultation with the other heads of the elements of the intelligence community. ``(d) Eligibility for Participation.--An individual eligible to participate in the program is any individual who-- ``(1) either-- ``(A) is an employee of the intelligence community; or ``(B) meets criteria for eligibility for employment in the intelligence community that are established by the Director; ``(2) is accepted in a graduate degree program in a field of study in science or technology identified under subsection (a); and ``(3) is eligible for a security clearance at the level of Secret or above. ``(e) Regulations.--If the Director carries out the program under subsection (a), the Director shall prescribe regulations for purposes of the administration of this section.''. (b) Clerical Amendment.--The table of sections for the National Security Act of 1947 is amended by striking the items relating to title X and section 1001 and inserting the following new items: ``TITLE X--EDUCATION IN SUPPORT OF NATIONAL INTELLIGENCE ``Sec. 1001. Scholarships and work-study for pursuit of graduate degrees in science and technology. ``TITLE XI--OTHER PROVISIONS ``Sec. 1101. Applicability to United States intelligence activities of Federal laws implementing international treaties and agreements.''. SEC. 332. COOPERATIVE RELATIONSHIP BETWEEN THE NATIONAL SECURITY EDUCATION PROGRAM AND THE FOREIGN LANGUAGE CENTER OF THE DEFENSE LANGUAGE INSTITUTE. Section 802 of the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1902) is amended by adding at the end the following new subsection: ``(h) Use of Awards To Attend the Foreign Language Center of the Defense Language Institute.--(1) The Secretary shall provide for the admission of award recipients to the Foreign Language Center of the Defense Language Institute (hereinafter in this subsection referred to as the `Center'). An award recipient may apply a portion of the applicable scholarship or fellowship award for instruction at the Center on a space- available basis as a Department of Defense sponsored program to defray the additive instructional costs. ``(2) Except as the Secretary determines necessary, an award recipient who receives instruction at the Center shall be subject to the same regulations with respect to attendance, discipline, discharge, and dismissal as apply to other persons attending the Center. ``(3) In this subsection, the term `award recipient' means an undergraduate student who has been awarded a scholarship under subsection (a)(1)(A) or a graduate student who has been awarded a fellowship under subsection (a)(1)(B) who-- ``(A) is in good standing; ``(B) has completed all academic study in a foreign country, as provided for under the scholarship or fellowship; and ``(C) would benefit from instruction provided at the Center.''. SEC. 333. ESTABLISHMENT OF NATIONAL FLAGSHIP LANGUAGE INITIATIVE WITHIN THE NATIONAL SECURITY EDUCATION PROGRAM. (a) National Flagship Language Initiative.-- (1) Expansion of grant program authority.-- Subsection (a)(1) of section 802 of the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1902) is amended-- (A) by striking ``and'' at the end of subparagraph (B)(ii); (B) by striking the period at the end of subparagraph (C) and inserting ``; and''; and (C) by adding at the end the following new subparagraph: ``(D) awarding grants to institutions of higher education to carry out activities under the National Flagship Language Initiative (described in subsection (i)).''. (2) Provisions of national flagship language initiative.--Such section, as amended by section 332, is further amended by adding at the end the following new subsection: ``(i) National Flagship Language Initiative.--(1) Under the National Flagship Language Initiative, institutions of higher education shall establish, operate, or improve activities designed to train students in programs in a range of disciplines to achieve advanced levels of proficiency in those foreign languages that the Secretary identifies as being the most critical in the interests of the national security of the United States. ``(2) An undergraduate student who has been awarded a scholarship under subsection (a)(1)(A) or a graduate student who has been awarded a fellowship under subsection (a)(1)(B) may participate in the activities carried out under the National Flagship Language Initiative. ``(3) An institution of higher education that receives a grant pursuant to subsection (a)(1)(D) shall give special consideration to applicants who are employees of the Federal Government. ``(4) For purposes of this subsection, the Foreign Language Center of the Defense Language Institute and any other educational institution that provides training in foreign languages operated by the Department of Defense or an agency in the intelligence community is deemed to be an institution of higher education, and may carry out the types of activities permitted under the National Flagship Language Initiative.''. (3) Inapplicability of funding allocation rules.-- Subsection (a)(2) of such section is amended by adding at the end the following flush sentences: ``The funding allocation under this paragraph shall not apply to grants under paragraph (1)(D) for the National Flagship Language Initiative described in subsection (i). For the authorization of appropriations for the National Flagship Language Initiative, see section 811.''. (4) Board requirement.--Section 803(d)(4) of such Act (50 U.S.C. 1903(d)(4)) is amended-- (A) by striking ``and'' at the end of subparagraph (C); (B) by striking the period at the end of subparagraph (D) and inserting ``; and''; and (C) by adding at the end the following new subparagraph: ``(E) which foreign languages are critical to the national security interests of the United States for purposes of section 802(a)(1)(D) (relating to grants for the National Flagship Language Initiative).''. (b) Funding.--The David L. Boren National Security Education Act of 1991 (50 U.S.C. 1901 et seq.) is amended by adding at the end the following new section: ``SEC. 811. ADDITIONAL ANNUAL AUTHORIZATION OF APPROPRIATIONS. ``(a) In General.--In addition to amounts that may be made available to the Secretary under the Fund for a fiscal year, there is authorized to be appropriated to the Secretary for each fiscal year, beginning with fiscal year 2003, $10,000,000, to carry out the grant program for the National Flagship Language Initiative under section 802(a)(1)(D). ``(b) Availability of Appropriated Funds.--Amounts appropriated pursuant to the authorization of appropriations under subsection (a) shall remain available until expended.''. (c) Effective Date.--The amendments made by this section shall take effect on the date the Secretary of Defense submits the report required under section 334 of this Act and notifies the appropriate committees of Congress (as defined in subsection (c) of that section) that the programs carried out under the David L. Boren National Security Education Act of 1991 are being managed in a fiscally and programmatically sound manner. (d) Construction.--Nothing in this section shall be construed as affecting any program or project carried out under the David L. Boren National Security Education Act of 1991 as in effect on the date that precedes the date of the enactment of this Act. SEC. 334. REPORT ON THE NATIONAL SECURITY EDUCATION PROGRAM. (a) In General.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the appropriate committees of Congress a report on the matters described in subsection (b) with respect to the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1901 et seq.). (b) Covered Matters.--The matters described in this subsection are as follows: (1) Effectiveness of program.--An evaluation of the National Security Education Program, including an assessment of the effectiveness of the program in meeting its goals and an assessment of the administrative costs of the program in relation to the amounts of scholarships, fellowships, and grants awarded. (2) Conversion of funding.--An assessment of the advisability of converting funding of the National Security Education Program from funding through the National Security Education Trust Fund under section 804 of that Act (50 U.S.C. 1904) to funding through appropriations. (3) Recommendations.--On any matter covered by paragraph (1) or (2), such recommendations for legislation with respect to such matter as the Secretary considers appropriate. (c) Appropriate Committees of Congress Defined.--In this section, the term ``appropriate committees of Congress'' means-- (1) the Select Committee on Intelligence and the Committees on Armed Services and Appropriations of the Senate; and (2) the Permanent Select Committee on Intelligence and the Committees on Armed Services and Appropriations of the House of Representatives. Subtitle E--Terrorism SEC. 341. FOREIGN TERRORIST ASSET TRACKING CENTER. (a) Establishment.--The Director of Central Intelligence, acting as the head of the intelligence community, shall establish in the Central Intelligence Agency an element responsible for conducting all-source intelligence analysis of information relating to the financial capabilities, practices, and activities of individuals, groups, and nations associated with international terrorism in their activities relating to international terrorism. (b) Designation.--The element established under subsection (a) shall be known as the Foreign Terrorist Asset Tracking Center. (c) Deadline for Establishment.--The element required by subsection (a) shall be established as soon as practicable after the date of the enactment of this Act, but not later than 90 days after that date. SEC. 342. SEMIANNUAL REPORT ON FINANCIAL INTELLIGENCE ON TERRORIST ASSETS (FITA). (a) Semiannual Report.-- (1) In general.--Title I of the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by adding at the end the following new section: ``SEMIANNUAL REPORT ON FINANCIAL INTELLIGENCE ON TERRORIST ASSETS ``Sec. 118. (a) Semiannual Report.--On a semiannual basis, the Secretary of the Treasury (acting through the head of the Office of Intelligence Support) shall submit a report to the appropriate congressional committees that fully informs the committees concerning operations against terrorist financial networks. Each such report shall include with respect to the preceding six-month period-- ``(1) the total number of asset seizures, designations, and other actions against individuals or entities found to have engaged in financial support of terrorism; ``(2) the total number of applications for asset seizure and designations of individuals or entities suspected of having engaged in financial support of terrorist activities that were granted, modified, or denied; ``(3) the total number of physical searches of offices, residences, or financial records of individuals or entities suspected of having engaged in financial support for terrorist activity; and ``(4) whether the financial intelligence information seized in these cases has been shared on a full and timely basis with all departments, agencies, and other entities of the United States Government involved in intelligence activities participating in the Foreign Terrorist Asset Tracking Center. ``(b) Immediate Notification for Emergency Designation.--In the case of a designation of an individual or entity, or the assets of an individual or entity, as having been found to have engaged in terrorist activities, the Secretary of the Treasury shall report such designation within 24 hours of such a designation to the appropriate congressional committees. ``(c) Submittal Date of Reports to Congressional Intelligence Committees.--In the case of the reports required to be submitted under subsection (a) to the congressional intelligence committees, the submittal dates for such reports shall be as provided in section 507. ``(d) Appropriate Congressional Committees Defined.--In this section, the term `appropriate congressional committees' means the following: ``(1) The Permanent Select Committee on Intelligence, the Committee on Appropriations, and the Committee on Financial Services of the House of Representatives. ``(2) The Select Committee on Intelligence, the Committee on Appropriations, and the Committee on Banking, Housing, and Urban Affairs of the Senate.''. (2) Clerical amendment.--The table of contents contained in the first section of such Act is amended by inserting after the item relating to section 117 the following new item: ``Sec. 118. Semiannual report on financial intelligence on terrorist assets.''. (b) Conforming Amendment.--Section 501(f) of the National Security Act of 1947 (50 U.S.C. 413(f)) is amended by inserting before the period the following: ``, and includes financial intelligence activities''. SEC. 343. TERRORIST IDENTIFICATION CLASSIFICATION SYSTEM. (a) Requirement.--(1) The Director of Central Intelligence, acting as head of the Intelligence Community, shall-- (A) establish and maintain a list of individuals who are known or suspected international terrorists, and of organizations that are known or suspected international terrorist organizations; and (B) ensure that pertinent information on the list is shared with the departments, agencies, and organizations described by subsection (c). (2) The list under paragraph (1), and the mechanisms for sharing information on the list, shall be known as the ``Terrorist Identification Classification System''. (b) Administration.--(1) The Director shall prescribe requirements for the inclusion of an individual or organization on the list required by subsection (a), and for the deletion or omission from the list of an individual or organization currently on the list. (2) The Director shall ensure that the information utilized to determine the inclusion, or deletion or omission, of an individual or organization on or from the list is derived from all-source intelligence. (3) The Director shall ensure that the list is maintained in accordance with existing law and regulations governing the collection, storage, and dissemination of intelligence concerning United States persons. (c) Information Sharing.--Subject to section 103(c)(6) of the National Security Act of 1947 (50 U.S.C. 403-3(c)(6)), relating to the protection of intelligence sources and methods, the Director shall provide for the sharing of the list, and information on the list, with such departments and agencies of the Federal Government, State and local government agencies, and entities of foreign governments and international organizations as the Director considers appropriate. (d) Reporting and Certification.--(1) The Director shall review on an annual basis the information provided by various departments and agencies for purposes of the list under subsection (a) in order to determine whether or not the information so provided is derived from the widest possible range of intelligence available to such departments and agencies. (2) The Director shall, as a result of each review under paragraph (1), certify whether or not the elements of the intelligence community responsible for the collection of intelligence related to the list have provided information for purposes of the list that is derived from the widest possible range of intelligence available to such department and agencies. (e) Report on Criteria for Information Sharing.--(1) Not later then March 1, 2003, the Director shall submit to the congressional intelligence committees a report describing the criteria used to determine which types of information on the list required by subsection (a) are to be shared, and which types of information are not to be shared, with various departments and agencies of the Federal Government, State and local government agencies, and entities of foreign governments and international organizations. (2) The report shall include a description of the circumstances in which the Director has determined that sharing information on the list with the departments and agencies of the Federal Government, and of State and local governments, described by subsection (c) would be inappropriate due to the concerns addressed by section 103(c)(6) of the National Security Act of 1947, relating to the protection of sources and methods, and any instance in which the sharing of information on the list has been inappropriate in light of such concerns. (f) System Administration Requirements.--(1) The Director shall, to the maximum extent practicable, ensure theinteroperability of the Terrorist Identification Classification System with relevant information systems of the departments and agencies of the Federal Government, and of State and local governments, described by subsection (c). (2) The Director shall ensure that the System utilizes technologies that are effective in aiding the identification of individuals in the field. (g) Report on Status of System.--(1) Not later than one year after the date of the enactment of this Act, the Director shall, in consultation with the Director of Homeland Security, submit to the congressional intelligence committees a report on the status of the Terrorist Identification Classification System. The report shall contain a certification on the following: (A) Whether the System contains the intelligence information necessary to facilitate the contribution of the System to the domestic security of the United States. (B) Whether the departments and agencies having access to the System have access in a manner that permits such departments and agencies to carry out appropriately their domestic security responsibilities. (C) Whether the System is operating in a manner that maximizes its contribution to the domestic security of the United States. (D) If a certification under subparagraph (A), (B), or (C) is in the negative, the modifications or enhancements of the System necessary to ensure a future certification in the positive. (2) The report shall be submitted in unclassified form, but may include a classified annex. (h) Congressional Intelligence Committees Defined.--In this section, the term ``congressional intelligence committees'' means-- (1) the Select Committee on Intelligence of the Senate; and (2) the Permanent Select Committee on Intelligence of the House of Representatives. Subtitle F--Other Matters SEC. 351. ADDITIONAL ONE-YEAR SUSPENSION OF REORGANIZATION OF DIPLOMATIC TELECOMMUNICATIONS SERVICE PROGRAM OFFICE. Section 311 of the Intelligence Authorization Act for Fiscal Year 2002 (Public Law 107-108; 22 U.S.C. 7301 note; 115 Stat. 1401) is amended-- (1) in the heading, by striking ``ONE-YEAR'' and inserting ``TWO-YEAR''; and (2) in the text, by striking ``October 1, 2002'' and inserting ``October 1, 2003''. SEC. 352. STANDARDIZED TRANSLITERATION OF NAMES INTO THE ROMAN ALPHABET. (a) Method of Transliteration Required.--Not later than 180 days after the date of the enactment of this Act, the Director of Central Intelligence shall provide for a standardized method for transliterating into the Roman alphabet personal and place names originally rendered in any language that uses an alphabet other than the Roman alphabet. (b) Use by Intelligence Community.--The Director shall ensure the use of the method established under subsection (a) in-- (1) all communications among the elements of the intelligence community; and (2) all intelligence products of the intelligence community. SEC. 353. DEFINITION OF CONGRESSIONAL INTELLIGENCE COMMITTEES IN NATIONAL SECURITY ACT OF 1947. (a) In General.--Section 3 of the National Security Act of 1947 (50 U.S.C. 401a) is amended by adding at the end the following new paragraph: ``(7) The term `congressional intelligence committees' means-- ``(A) the Select Committee on Intelligence of the Senate; and ``(B) the Permanent Select Committee on Intelligence of the House of Representatives.''. (b) Conforming Amendments.--(1) That Act is further amended by striking ``Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives'' and inserting ``congressional intelligence committees'' in each of the following provisions: (A) Section 104(d)(4) (50 U.S.C. 403-4(d)(4)). (B) Section 603(a) (50 U.S.C. 423(a)). (2) That Act is further amended by striking ``Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate'' and inserting ``congressional intelligence committees'' in each of the following provisions: (A) Section 301(j) (50 U.S.C. 409a(j)). (B) Section 801(b)(2) (50 U.S.C. 435(b)(2)). (C) Section 903 (50 U.S.C. 441b). (3) That Act is further amended by striking ``intelligence committees'' and inserting ``congressional intelligence committees'' each place it appears in each of the following provisions: (A) Section 501 (50 U.S.C. 413). (B) Section 502 (50 U.S.C. 413a). (C) Section 503 (50 U.S.C. 413b). (D) Section 504(d)(2) (50 U.S.C. 414(d)(2)). (4) Section 104(d)(5) of that Act (50 U.S.C. 403-4(d)(5)) is amended by striking ``Select Committee on Intelligence of the Senate and to the Permanent Select Committee on Intelligence of the House of Representatives'' and inserting ``congressional intelligence committees''. (5) Section 105C(a)(3)(C) of that Act (50 U.S.C. 403- 5c(a)(3)(C)) is amended-- (A) by striking clauses (i) and (ii) and inserting the following new clause (i): ``(i) The congressional intelligence committees.''; and (B) by redesignating clauses (iii), (iv), (v), and (vi) as clauses (ii), (iii), (iv), and (v), respectively. (6) Section 114 of that Act (50 U.S.C. 404i), as amended by section 324, is amended by striking subsection (d), as so redesignated, and inserting the following new subsection (d): ``(d) Congressional Leadership Defined.--In this section, the term `congressional leadership' means the Speaker and the minority leader of the House of Representatives and the majority leader and the minority leader of the Senate.''. (7) Section 501(a) of that Act (50 U.S.C. 413(a)), as amended by paragraph (3) of this subsection, is further amended-- (A) by striking paragraph (2); and (B) by redesignating paragraph (3) as paragraph (2). (8) Section 503(c)(4) of that Act (50 U.S.C. 413b(c)(4)) is amended by striking ``intelligence committee'' and inserting ``congressional intelligence committee''. (9) Section 602(c) of that Act (50 U.S.C. 422(c)) is amended by striking ``the Select Committee on Intelligence of the Senate or to the Permanent Select Committee on Intelligence of the House of Representatives'' and inserting ``either congressional intelligence committee''. (10) Section 701(c)(3) of that Act (50 U.S.C. 431(c)(3)) is amended by striking ``intelligence committees of the Congress'' and inserting ``congressional intelligence committees''. TITLE IV--CENTRAL INTELLIGENCE AGENCY SEC. 401. TWO-YEAR EXTENSION OF CENTRAL INTELLIGENCE AGENCY VOLUNTARY SEPARATION PAY ACT. Section 2 of the Central Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 403-4 note) is amended-- (1) in subsection (f), by striking ``September 30, 2003'' and inserting ``September 30, 2005''; and (2) in subsection (i), by striking ``or 2003'' and inserting ``2003, 2004, or 2005''. SEC. 402. IMPLEMENTATION OF COMPENSATION REFORM PLAN. (a) Delay on Implementation on Compensation Reform Plan.-- (1) The Director of Central Intelligence may not implement before the implementation date (described in paragraph (2)) a plan for the compensation of employees of the Central Intelligence Agency that differs from the plan in effect on October 1, 2002. (2) The implementation date referred to in paragraph (1) is February 1, 2004, or the date on which the Director submits to the congressional intelligence committees a report on the pilot project conducted under subsection (b), whichever is later. (3) It is the sense of Congress that an employee performance evaluation mechanism with evaluation training for managers and employees of the Central Intelligence Agency should be phased in before the implementation of any new compensation plan. (b) Pilot Project.--(1) The Director shall conduct a pilot project to test the efficacy and fairness of a plan for the compensation of employees of the Central Intelligence Agency that differs from the plan in effect on October 1, 2002, within any one component of the Central Intelligence Agency selected by the Director, other than a component for which a pilot project on employee compensation has been previously conducted. (2) The pilot project under paragraph (1) shall be conducted for a period of at least 1 year. (3) Not later than the date that is 45 days after the completion of the pilot project under paragraph (1), the Director shall submit to the congressional intelligence committees a report that contains an evaluation of the project and such recommendations as the Director considers appropriate for the modification of the plans for the compensation of employees throughout the Agency which are in effect on such date. (c) Sense of Congress on Implementation of Compensation Reform Plan for the National Security Agency.--It is the sense of Congress that-- (1) the Director of the National Security Agency should not implement before February 1, 2004, a plan for the compensation of employees of the National Security Agency that differs from the plan in effect on October 1, 2002; and (2) an employee performance evaluation mechanism with evaluation training for managers and employees of the National Security Agency should be phased in before the implementation of any new compensation plan. (d) Congressional Intelligence Committees Defined.--In this section, the term ``congressional intelligence committees'' means the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives. TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES SEC. 501. USE OF FUNDS FOR COUNTERDRUG AND COUNTERTERRORISM ACTIVITIES FOR COLOMBIA. (a) Authority.--Funds designated for intelligence or intelligence-related purposes for assistance to the Government of Colombia for counterdrug activities for fiscal years 2002 and 2003, and any unobligated funds available to any element of the intelligence community for such activities for a prior fiscal year, shall be available to support a unified campaign against narcotics trafficking and against activities by organizations designated as terrorist organizations (such as the Revolutionary Armed Forces of Colombia (FARC), the National Liberation Army (ELN), and the United Self-Defense Forces of Colombia (AUC)), and to take actions to protect human health and welfare in emergency circumstances, including undertaking rescue operations. (b) Requirement for Certification.--(1) The authorities provided in subsection (a) shall not be exercised until the Secretary of Defense certifies to the Congress that the provisions of paragraph (2) have been complied with. (2) In order to ensure the effectiveness of United States support for such a unified campaign, prior to the exercise of the authority contained in subsection (a), the Secretary of State shall report to the appropriate committees of Congress that the newly elected President of Colombia has-- (A) committed, in writing, to establish comprehensive policies to combat illicit drug cultivation, manufacturing, and trafficking (particularly with respect to providing economic opportunities that offer viable alternatives to illicit crops) and to restore government authority and respect for human rights in areas under the effective control of paramilitary and guerrilla organizations; (B) committed, in writing, to implement significant budgetary and personnel reforms of the Colombian Armed Forces; and (C) committed, in writing, to support substantial additional Colombian financial and other resources to implement such policies and reforms, particularly to meet the country's previous commitments under ``Plan Colombia''. In this paragraph, the term ``appropriate committees of Congress'' means the Permanent Select Committee on Intelligence and the Committees on Appropriations and Armed Services of the House of Representatives and the Select Committee on Intelligence and the Committees on Appropriations and Armed Services of the Senate. (c) Termination of Authority.--The authority provided in subsection (a) shall cease to be effective if the Secretary of Defense has credible evidence that the Colombian Armed Forces are not conducting vigorous operations to restore government authority and respect for human rights in areas under the effective control of paramilitary and guerrilla organizations. (d) Application of Certain Provisions of Law.--Sections 556, 567, and 568 of Public Law 107-115, section 8093 of the Department of Defense Appropriations Act, 2002, and the numerical limitations on the number of United States military personnel and United States individual civilian contractors in section 3204(b)(1) of Public Law 106-246 shall be applicable to funds made available pursuant to the authority contained in subsection (a). (e) Limitation on Participation of United States Personnel.--No United States Armed Forces personnel or United States civilian contractor employed by the United States will participate in any combat operation in connection with assistance made available under this section, except for the purpose of acting in self defense or rescuing any United States citizen to include United States Armed Forces personnel, United States civilian employees, and civilian contractors employed by the United States. SEC. 502. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL RECONNAISSANCE OFFICE. (a) In General.--Title I of the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by inserting after section 105C (50 U.S.C. 403-5c) the following new section: ``PROTECTION OF OPERATIONAL FILES OF THE NATIONAL RECONNAISSANCE OFFICE ``Sec. 105D. (a) Exemption of Certain Operational Files From Search, Review, Publication, or Disclosure.--(1) The Director of the National Reconnaissance Office, with the coordination of the Director of Central Intelligence, may exempt operational files of the National Reconnaissance Office from the provisions of section 552 of title 5, United States Code, which require publication, disclosure, search, or review in connection therewith. ``(2)(A) Subject to subparagraph (B), for the purposes of this section, the term `operational files' means files of the National Reconnaissance Office (hereafter in this section referred to as `NRO') that document the means by which foreign intelligence or counterintelligence is collected through scientific and technical systems. ``(B) Files which are the sole repository of disseminated intelligence are not operational files. ``(3) Notwithstanding paragraph (1), exempted operational files shall continue to be subject to search and review for information concerning-- ``(A) United States citizens or aliens lawfully admitted for permanent residence who have requested information on themselves pursuant to the provisions of section 552 or 552a of title 5, United States Code; ``(B) any special activity the existence of which is not exempt from disclosure under the provisions of section 552 of title 5, United States Code; or ``(C) the specific subject matter of an investigation by any of the following for any impropriety, or violation of law, Executive order, or Presidential directive, in the conduct of an intelligence activity: ``(i) The Permanent Select Committee on Intelligence of the House of Representatives. ``(ii) The Select Committee on Intelligence of the Senate. ``(iii) The Intelligence Oversight Board. ``(iv) The Department of Justice. ``(v) The Office of General Counsel of NRO. ``(vi) The Office of the Director of NRO. ``(4)(A) Files that are not exempted under paragraph (1) which contain information derived or disseminated from exempted operational files shall be subject to search and review. ``(B) The inclusion of information from exempted operational files in files that are not exempted under paragraph (1) shall not affect the exemption under paragraph (1) of the originating operational files from search, review, publication, or disclosure. ``(C) The declassification of some of the information contained in exempted operational files shall not affect the status of the operational file as being exempt from search, review, publication, or disclosure. ``(D) Records from exempted operational files which have been disseminated to and referenced in files that are not exempted under paragraph (1) and which have been returned to exempted operational files for sole retention shall be subject to search and review. ``(5) The provisions of paragraph (1) may not be superseded except by a provision of law which is enacted after the date of the enactment of this section, and which specifically cites and repeals or modifies its provisions. ``(6)(A) Except as provided in subparagraph (B), whenever any person who has requested agency records under section 552 of title 5, United States Code, alleges that NRO has withheld records improperly because of failure to comply with any provision of this section, judicial review shall be available under the terms set forth in section 552(a)(4)(B) of title 5, United States Code. ``(B) Judicial review shall not be available in the manner provided for under subparagraph (A) as follows: ``(i) In any case in which information specifically authorized under criteria established by an Executive order to be kept secret in the interests of national defense or foreign relations is filed with, or produced for, the court by NRO, such information shall be examined ex parte, in camera by the court. ``(ii) The court shall, to the fullest extent practicable, determine the issues of fact based on sworn written submissions of the parties. ``(iii) When a complainant alleges that requested records are improperly withheld because of improper placement solely in exempted operational files, the complainant shall support such allegation with a sworn written submission based upon personal knowledge or otherwise admissible evidence. ``(iv)(I) When a complainant alleges that requested records were improperly withheld because of improper exemption of operational files, NRO shall meet its burden under section 552(a)(4)(B) of title 5, United States Code, by demonstrating to the court by sworn written submission that exempted operational files likely to contain responsiblerecords currently perform the functions set forth in paragraph (2). ``(II) The court may not order NRO to review the content of any exempted operational file or files in order to make the demonstration required under subclause (I), unless the complainant disputes NRO's showing with a sworn written submission based on personal knowledge or otherwise admissible evidence. ``(v) In proceedings under clauses (iii) and (iv), the parties may not obtain discovery pursuant to rules 26 through 36 of the Federal Rules of Civil Procedure, except that requests for admissions may be made pursuant to rules 26 and 36. ``(vi) If the court finds under this paragraph that NRO has improperly withheld requested records because of failure to comply with any provision of this subsection, the court shall order NRO to search and review the appropriate exempted operational file or files for the requested records and make such records, or portions thereof, available in accordance with the provisions of section 552 of title 5, United States Code, and such order shall be the exclusive remedy for failure to comply with this subsection. ``(vii) If at any time following the filing of a complaint pursuant to this paragraph NRO agrees to search the appropriate exempted operational file or files for the requested records, the court shall dismiss the claim based upon such complaint. ``(viii) Any information filed with, or produced for the court pursuant to clauses (i) and (iv) shall be coordinated with the Director of Central Intelligence prior to submission to the court. ``(b) Decennial Review of Exempted Operational Files.--(1) Not less than once every 10 years, the Director of the National Reconnaissance Office and the Director of Central Intelligence shall review the exemptions in force under subsection (a)(1) to determine whether such exemptions may be removed from the category of exempted files or any portion thereof. The Director of Central Intelligence must approve any determination to remove such exemptions. ``(2) The review required by paragraph (1) shall include consideration of the historical value or other public interest in the subject matter of the particular category of files or portions thereof and the potential for declassifying a significant part of the information contained therein. ``(3) A complainant that alleges that NRO has improperly withheld records because of failure to comply with this subsection may seek judicial review in the district court of the United States of the district in which any of the parties reside, or in the District of Columbia. In such a proceeding, the court's review shall be limited to determining the following: ``(A) Whether NRO has conducted the review required by paragraph (1) before the expiration of the 10-year period beginning on the date of the enactment of this section or before the expiration of the 10-year period beginning on the date of the most recent review. ``(B) Whether NRO, in fact, considered the criteria set forth in paragraph (2) in conducting the required review.''. (b) Clerical Amendment.--The table of sections for that Act is amended by inserting after the item relating to section 105C the following new item: ``Sec. 105D. Protection of operational files of the National Reconnaissance Office.''. SEC. 503. ELIGIBILITY OF EMPLOYEES IN INTELLIGENCE SENIOR LEVEL POSITIONS FOR PRESIDENTIAL RANK AWARDS. Section 1607 of title 10, United States Code, is amended by adding at the end the following new subsection: ``(c) Award of Rank to Employees in Intelligence Senior Level Positions.--The President, based on the recommendations of the Secretary of Defense, may award a rank referred to in section 4507a of title 5 to employees in Intelligence Senior Level positions designated under subsection (a). The award of such rank shall be made in a manner consistent with the provisions of that section.''. TITLE VI--NATIONAL COMMISSION ON TERRORIST ATTACKS UPON THE UNITED STATES SEC. 601. ESTABLISHMENT OF COMMISSION. There is established in the legislative branch the National Commission on Terrorist Attacks Upon the United States (in this title referred to as the ``Commission''). SEC. 602. PURPOSES. The purposes of the Commission are to-- (1) examine and report upon the facts and causes relating to the terrorist attacks of September 11, 2001, occurring at the World Trade Center in New York, New York, in Somerset County, Pennsylvania, and at the Pentagon in Virginia; (2) ascertain, evaluate, and report on the evidence developed by all relevant governmental agencies regarding the facts and circumstances surrounding the attacks; (3) build upon the investigations of other entities, and avoid unnecessary duplication, by reviewing the findings, conclusions, and recommendations of-- (A) the Joint Inquiry of the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives regarding the terrorist attacks of September 11, 2001, (hereinafter in this title referred to as the ``Joint Inquiry''); and (B) other executive branch, congressional, or independent commission investigations into the terrorist attacks of September 11, 2001, other terrorist attacks, and terrorism generally; (4) make a full and complete accounting of the circumstances surrounding the attacks, and the extent of the United States' preparedness for, and immediate response to, the attacks; and (5) investigate and report to the President and Congress on its findings, conclusions, and recommendations for corrective measures that can be taken to prevent acts of terrorism. SEC. 603. COMPOSITION OF COMMISSION. (a) Members.--The Commission shall be composed of 10 members, of whom-- (1) 1 member shall be appointed by the President, who shall serve as chairman of the Commission; (2) 1 member shall be appointed by the leader of the Senate (majority or minority leader, as the case may be) of the Democratic Party, in consultation with the leader of the House of Representatives (majority or minority leader, as the case may be) of the Democratic Party, who shall serve as vice chairman of the Commission; (3) 2 members shall be appointed by the senior member of the Senate leadership of the Democratic Party; (4) 2 members shall be appointed by the senior member of the leadership of the House of Representatives of the Republican Party; (5) 2 members shall be appointed by the senior member of the Senate leadership of the Republican Party; and (6) 2 members shall be appointed by the senior member of the leadership of the House of Representatives of the Democratic Party. (b) Qualifications; Initial Meeting.-- (1) Political party affiliation.--Not more than 5 members of the Commission shall be from the same political party. (2) Nongovernmental appointees.--An individual appointed to the Commission may not be an officer or employee of the Federal Government or any State or local government. (3) Other qualifications.--It is the sense of Congress that individuals appointed to the Commission should be prominent United States citizens, with national recognition and significant depth of experience in such professions as governmental service, law enforcement, the armed services, law, public administration, intelligence gathering, commerce (including aviation matters), and foreign affairs. (4) Deadline for appointment.--All members of the Commission shall be appointed on or before December 15, 2002. (5) Initial meeting.--The Commission shall meet and begin the operations of the Commission as soon as practicable. (c) Quorum; Vacancies.--After its initial meeting, the Commission shall meet upon the call of the chairman or a majority of its members. Six members of the Commission shall constitute a quorum. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner in which the original appointment was made. SEC. 604. FUNCTIONS OF COMMISSION. (a) In General.--The functions of the Commission are to-- (1) conduct an investigation that-- (A) investigates relevant facts and circumstances relating to the terrorist attacks of September 11, 2001, including any relevant legislation, Executive Order, regulation, plan, policy, practice, or procedure; and (B) may include relevant facts and circumstances relating to-- (i) intelligence agencies; (ii) law enforcement agencies; (iii) diplomacy; (iv) immigration, nonimmigrant visas, and border control; (v) the flow of assets to terrorist organizations; (vi) commercial aviation; (vii) the role of congressional oversight and resource allocation; and (viii) other areas of the public and private sectors determined relevant by the Commission for its inquiry; (2) identify, review, and evaluate the lessons learned from the terrorist attacks of September 11, 2001, regarding the structure, coordination, management policies, and procedures of the Federal Government, and, if appropriate, State and local governments and nongovernmental entities, relative to detecting, preventing, and responding to such terrorist attacks; and (3) submit to the President and Congress such reports as are required by this title containing such findings, conclusions, and recommendations as the Commission shall determine, including proposing organization, coordination, planning, management arrangements, procedures, rules, and regulations. (b) Relationship to Intelligence Committees' Inquiry.--When investigating facts and circumstances relating to the intelligence community, the Commission shall-- (1) first review the information compiled by, and the findings, conclusions, and recommendations of, the Joint Inquiry; and (2) after that review pursue any appropriate area of inquiry if the Commission determines that-- (A) the Joint Inquiry had not investigated that area; (B) the Joint Inquiry's investigation of that area had not been complete; or (C) new information not reviewed by the Joint Inquiry had become available with respect to that area. SEC. 605. POWERS OF COMMISSION. (a) In General.-- (1) Hearings and evidence.--The Commission or, on the authority of the Commission, any subcommittee or member thereof, may, for the purpose of carrying out this title-- (A) hold such hearings and sit and act at such times and places, take such testimony, receive such evidence, administer such oaths; and (B) subject to paragraph (2)(A), require, by subpoena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, and documents, as the Commission or such designated subcommittee or designated member may determine advisable. (2) Subpoenas.-- (A) Issuance.-- (i) In general.--A subpoena may be issued under this subsection only-- (I) by the agreement of the chairman and the vice chairman; or (II) by the affirmative vote of 6 members of the Commission. (ii) Signature.--Subject to clause (i), subpoenas issued under this subsection may be issued under the signature of the chairman or any member designated by a majority of the Commission, and may be served by any person designated by the chairman or by a member designated by a majority of the Commission. (B) Enforcement.-- (i) In general.--In the case of contumacy or failure to obey a subpoena issued under subsection (a), the United States district court for the judicial district in which the subpoenaed person resides, is served, or may be found, or where the subpoena is returnable, may issue an order requiring such person to appear at any designated place to testify or to produce documentary or other evidence. Any failure to obey the order of the court may be punished by the court as a contempt of that court. (ii) Additional enforcement.--In the case of any failure of any witness to comply with any subpoena or to testify when summoned under authority of this section, the Commission may, by majority vote, certify a statement of fact constituting such failure to the appropriate United States attorney, who may bring the matter before the grand jury for its action, under the same statutory authority and procedures as if the United States attorney had received a certification under sections 102 through 104 of the Revised Statutes of the United States (2 U.S.C. 192 through 194). (b) Contracting.--The Commission may, to such extent and in such amounts as are provided in appropriation Acts, enter into contracts to enable the Commission to discharge its duties under this title. (c) Information From Federal Agencies.-- (1) In general.--The Commission is authorized to secure directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality of the Government, information, suggestions, estimates, and statistics for the purposes of this title. Each department, bureau, agency, board, commission, office, independent establishment, or instrumentality shall, to the extent authorized by law, furnish such information, suggestions, estimates, and statistics directly to the Commission, upon request made by the chairman, the chairman of any subcommittee created by a majority of the Commission, or any member designated by a majority of the Commission. (2) Receipt, handling, storage, and dissemination.--Information shall only be received, handled, stored, and disseminated by members of the Commission and its staff consistent with all applicable statutes, regulations, and Executive Orders. (d) Assistance From Federal Agencies.-- (1) General services administration.--The Administrator of General Services shall provide to the Commission on a reimbursable basis administrative support and other services for the performance of the Commission's functions. (2) Other departments and agencies.--In addition to the assistance prescribed in paragraph (1), departments and agencies of the United States may provide to the Commission such services, funds, facilities, staff, and other support services as they may determine advisable and as may be authorized by law. (e) Gifts.--The Commission may accept, use, and dispose of gifts or donations of services or property. (f) Postal Services.--The Commission may use the United States mails in the same manner and under the same conditions as departments and agencies of the United States. SEC. 606. NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT. (a) In General.--The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Commission. (b) Public Meetings and Release of Public Versions of Reports.--The Commission shall-- (1) hold public hearings and meetings to the extent appropriate; and (2) release public versions of the reports required under section 610 (a) and (b). (c) Public Hearings.--Any public hearings of the Commission shall be conducted in a manner consistent with the protection of information provided to or developed for or by the Commission as required by any applicable statute, regulation, or Executive Order. SEC. 607. STAFF OF COMMISSION. (a) In General.-- (1) Appointment and compensation.--The chairman, in consultation with vice chairman, in accordance with rules agreed upon by the Commission, may appoint and fix the compensation of a staff director and such other personnel as may be necessary to enable the Commission to carry out its functions, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that no rate of pay fixed under this subsection may exceed the equivalent of that payable for a position at level V of the Executive Schedule under section 5316 of title 5, United States Code. (2) Personnel as federal employees.-- (A) In general.--The executive director and any personnel of the Commission who are employees shall be employees under section 2105 of title 5, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title. (B) Members of commission.--Subparagraph (A) shall not be construed to apply to members of the Commission. (b) Detailees.--Any Federal Government employee may be detailed to the Commission without reimbursement from the Commission, and such detailee shall retain the rights, status, and privileges of his or her regular employment without interruption. (c) Consultant Services.--The Commission is authorized to procure the services of experts and consultants in accordance with section 3109 of title 5, United States Code, but at rates not to exceed the daily rate paid a person occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code. SEC. 608. COMPENSATION AND TRAVEL EXPENSES. (a) Compensation.--Each member of the Commission may be compensated at not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day during which that member is engaged in the actual performance of the duties of the Commission. (b) Travel Expenses.--While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, in thesame manner as persons employed intermittently in the Government service are allowed expenses under section 5703(b) of title 5, United States Code. SEC. 609. SECURITY CLEARANCES FOR COMMISSION MEMBERS AND STAFF. The appropriate Federal agencies or departments shall cooperate with the Commission in expeditiously providing to the Commission members and staff appropriate security clearances to the extent possible pursuant to existing procedures and requirements, except that no person shall be provided with access to classified information under this title without the appropriate security clearances. SEC. 610. REPORTS OF COMMISSION; TERMINATION. (a) Interim Reports.--The Commission may submit to the President and Congress interim reports containing such findings, conclusions, and recommendations for corrective measures as have been agreed to by a majority of Commission members. (b) Final Report.--Not later than 18 months after the date of the enactment of this Act, the Commission shall submit to the President and Congress a final report containing such findings, conclusions, and recommendations for corrective measures as have been agreed to by a majority of Commission members. (c) Termination.-- (1) In general.--The Commission, and all the authorities of this title, shall terminate 60 days after the date on which the final report is submitted under subsection (b). (2) Administrative activities before termination.-- The Commission may use the 60-day period referred to in paragraph (1) for the purpose of concluding its activities, including providing testimony to committees of Congress concerning its reports and disseminating the final report. SEC. 611. FUNDING. (a) Transfer From the National Foreign Intelligence Program.--Of the amounts authorized to be appropriated by this Act and made available in public law 107-248 (Department of Defense Appropriations Act, 2003) for the National Foreign Intelligence Program, not to exceed $3,000,000 shall be available for transfer to the Commission for purposes of the activities of the Commission under this title. (b) Duration of Availability.--Amounts made available to the Commission under subsection (a) shall remain available until the termination of the Commission. TITLE VII--INFORMATION SHARING SEC. 701. SHORT TITLE. This title may be cited as the ``Homeland Security Information Sharing Act''. SEC. 702. FINDINGS AND SENSE OF CONGRESS. (a) Findings.--The Congress finds the following: (1) The Federal Government is required by the Constitution to provide for the common defense, which includes defense against terrorist attacks. (2) The Federal Government relies on State and local personnel to protect against terrorist attacks. (3) The Federal Government collects, creates, manages, and protects classified and sensitive but unclassified information to enhance homeland security. (4) Some homeland security information is needed by the State and local personnel to prevent and prepare for terrorist attacks. (5) The needs of State and local personnel to have access to relevant homeland security information to combat terrorism must be reconciled with the need to preserve the protected status of such information and to protect the sources and methods used to acquire such information. (6) Granting security clearances to certain State and local personnel is one way to facilitate the sharing of information regarding specific terrorist threats among Federal, State, and local levels of government. (7) Methods exist to declassify, redact, or otherwise adapt classified information so it may be shared with State and local personnel without the need for granting additional security clearances. (8) State and local personnel have capabilities and opportunities to gather information on suspicious activities and terrorist threats not possessed by Federal agencies. (9) The Federal Government and State and local governments and agencies in other jurisdictions may benefit from such information. (10) Federal, State, and local governments and intelligence, law enforcement, and other emergency preparation and response agencies must act in partnership to maximize the benefits of information gathering and analysis to prevent and respond to terrorist attacks. (11) Information systems, including the National Law Enforcement Telecommunications System and the Terrorist Threat Warning System, have been established for rapid sharing of classified and sensitive but unclassified information among Federal, State, and local entities. (12) Increased efforts to share homeland security information should avoid duplicating existing information systems. (b) Sense of Congress.--It is the sense of Congress that Federal, State, and local entities should share homeland security information to the maximum extent practicable, with special emphasis on hard-to-reach urban and rural communities. SEC. 703. FACILITATING HOMELAND SECURITY INFORMATION SHARING PROCEDURES. (a) Procedures for Determining Extent of Sharing of Homeland Security Information.--(1) The President shall prescribe and implement procedures under which relevant Federal agencies determine-- (A) whether, how, and to what extent homeland security information may be shared with appropriate State and local personnel, and with which such personnel it may be shared; (B) how to identify and safeguard homeland security information that is sensitive but unclassified; and (C) to the extent such information is in classified form, whether, how, and to what extent to remove classified information, as appropriate, and with which such personnel it may be shared after such information is removed. (2) The President shall ensure that such procedures apply to all agencies of the Federal Government. (3) Such procedures shall not change the substantive requirements for the classification and safeguarding of classified information. (4) Such procedures shall not change the requirements and authorities to protect sources and methods. (b) Procedures for Sharing of Homeland Security Information.--(1) Under procedures prescribed by the President, all appropriate agencies, including the intelligence community, shall, through information sharing systems, share homeland security information with appropriate State and local personnel to the extent such information may be shared, as determined in accordance with subsection (a), together with assessments of the credibility of such information. (2) Each information sharing system through which information is shared under paragraph (1) shall-- (A) have the capability to transmit unclassified or classified information, though the procedures and recipients for each capability may differ; (B) have the capability to restrict delivery of information to specified subgroups by geographic location, type of organization, position of a recipient within an organization, or a recipient's need to know such information; (C) be configured to allow the efficient and effective sharing of information; and (D) be accessible to appropriate State and local personnel. (3) The procedures prescribed under paragraph (1) shall establish conditions on the use of information shared under paragraph (1)-- (A) to limit the redissemination of such information to ensure that such information is not used for an unauthorized purpose; (B) to ensure the security and confidentiality of such information; (C) to protect the constitutional and statutory rights of any individuals who are subjects of such information; and (D) to provide data integrity through the timely removal and destruction of obsolete or erroneous names and information. (4) The procedures prescribed under paragraph (1) shall ensure, to the greatest extent practicable, that the information sharing system through which information is shared under such paragraph include existing information sharing systems, including, but not limited to, the National Law Enforcement Telecommunications System, the Regional Information Sharing System, and the Terrorist Threat Warning System of the Federal Bureau of Investigation. (5) Each appropriate Federal agency, as determined by the President, shall have access to each information sharing system through which information is shared under paragraph (1), and shall therefore have access to all information, as appropriate, shared under such paragraph. (6) The procedures prescribed under paragraph (1) shall ensure that appropriate State and local personnel are authorized to use such information sharing systems-- (A) to access information shared with such personnel; and (B) to share, with others who have access to such information sharing systems, the homeland security information of their own jurisdictions, which shall be marked appropriately as pertaining to potential terrorist activity. (7) Under procedures prescribed jointly by the Director of Central Intelligence and the Attorney General, each appropriate Federal agency, as determined by the President, shall review and assess the information shared under paragraph (6) and integrate such information with existing intelligence. (c) Sharing of Classified Information and Sensitive but Unclassified Information With State and Local Personnel.--(1) The President shall prescribe procedures under which Federal agencies may, to the extent the President considers necessary, share with appropriate State and local personnel homeland security information that remains classified or otherwise protected after the determinations prescribed under the procedures set forth in subsection (a). (2) It is the sense of Congress that such procedures may include one or more of the following means: (A) Carrying out security clearance investigations with respect to appropriate State and local personnel. (B) With respect to information that is sensitive but unclassified, entering into nondisclosure agreements with appropriate State and local personnel. (C) Increased use of information-sharing partnerships that include appropriate State and local personnel, such as the Joint Terrorism Task Forces of the Federal Bureau of Investigation, the Anti-Terrorism Task Forces of the Department of Justice, and regional Terrorism Early Warning Groups. (d) Responsible Officials.--For each affected Federal agency, the head of such agency shall designate an official to administer this title with respect to such agency. (e) Federal Control of Information.--Under procedures prescribed under this section, information obtained by a State or local government from a Federal agency under this section shall remain under the control of the Federal agency, and a State or local law authorizing or requiring such a government to disclose information shall not apply to such information. (f) Definitions.--As used in this section: (1) The term ``homeland security information'' means any information (other than information that includes individually identifiable information collected solely for statistical purposes) possessed by a Federal, State, or local agency that-- (A) relates to the threat of terrorist activity; (B) relates to the ability to prevent, interdict, or disrupt terrorist activity; (C) would improve the identification or investigation of a suspected terrorist or terrorist organization; or (D) would improve the response to a terrorist act. (2) The term ``intelligence community'' has the meaning given such term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)). (3) The term ``State and local personnel'' means any of the following persons involved in prevention, preparation, or response for terrorist attacks: (A) State Governors, mayors, and other locally elected officials. (B) State and local law enforcement personnel and firefighters. (C) Public health and medical professionals. (D) Regional, State, and local emergency management agency personnel, including State adjutant generals. (E) Other appropriate emergency response agency personnel. (F) Employees of private sector entities that affect critical infrastructure, cyber, economic, or public health security, as designated by the Federal Government in procedures developed pursuant to this section. (4) The term ``State'' includes the District of Columbia and any commonwealth, territory, or possession of the United States. SEC. 704. REPORT. (a) Report Required.--Not later than 12 months after the date of the enactment of this Act, the President shall submit to the congressional committees specified in subsection (b) a report on the implementation of section 703. The report shall include any recommendations for additional measures or appropriation requests, beyond the requirements of section 703, to increase the effectiveness of sharing of information between and among Federal, State, and local entities. (b) Specified Congressional Committees.--The congressional committees referred to in subsection (a) are the following committees: (1) The Permanent Select Committee on Intelligence and the Committee on the Judiciary of the House of Representatives. (2) The Select Committee on Intelligence and the Committee on the Judiciary of the Senate. SEC. 705. AUTHORIZATION OF APPROPRIATIONS. There is authorized to be appropriated such sums as may be necessary to carry out section 703. SEC. 706. COORDINATION PROVISION. (a) Prior Enactment.--If this Act is enacted before the Homeland Security Act of 2002, then upon the date of the enactment of the Homeland Security Act of 2002, this title shall be deemed for all purposes not to have taken effect and shall cease to be in effect. (b) Subsequent Enactment.--If the Homeland Security Act of 2002 is enacted before this Act, then this title shall not take effect. TITLE VIII--REPORTING REQUIREMENTS Subtitle A--Overdue Reports SEC. 801. DEADLINE FOR SUBMITTAL OF VARIOUS OVERDUE REPORTS. (a) Deadline.--The reports described in subsection (c) shall be submitted to Congress not later than 180 days after the date of the enactment of this Act. (b) Noncompliance.--(1) If all the reports described in subsection (c) are not submitted to Congress by the date specified in subsection (a), amounts available to be obligated or expended after that date to carry out the functions or duties of the Office of the Director of Central Intelligence shall be reduced by \1/3\. (2) The reduction applicable under paragraph (1) shall not apply if the Director of Central Intelligence certifies to Congress by the date referred to in subsection (a) that all reports referred to in subsection (c) have been submitted to Congress. (c) Reports Described.--The reports referred to in subsection (a) are reports mandated by law for which the Director of Central Intelligence has sole or primary responsibility to prepare, coordinate, and submit to Congress which, as of the date of the enactment of this Act, have not been submitted to Congress. Subtitle B--Submittal of Reports to Intelligence Committees SEC. 811. DATES FOR SUBMITTAL OF VARIOUS ANNUAL AND SEMIANNUAL REPORTS TO THE CONGRESSIONAL INTELLIGENCE COMMITTEES. (a) In General.--(1) Title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.), as amended by section 311 of this Act, is further amended by adding at the end the following new section: ``DATES FOR SUBMITTAL OF VARIOUS ANNUAL AND SEMIANNUAL REPORTS TO THE CONGRESSIONAL INTELLIGENCE COMMITTEES ``Sec. 507. (a) Annual Reports.--(1) The date for the submittal to the congressional intelligence committees of the following annual reports shall be the date each year provided in subsection (c)(1)(A): ``(A) The annual evaluation of the performance and responsiveness of certain elements of the intelligence community required by section 105(d). ``(B) The annual report on intelligence required by section 109. ``(C) The annual report on intelligence community cooperation with Federal law enforcement agencies required by section 114(a)(2). ``(D) The annual report on the protection of the identities of covert agents required by section 603. ``(E) The annual report of the Inspectors Generals of the intelligence community on proposed resources and activities of their offices required by section 8H(g) of the Inspector General Act of 1978. ``(F) The annual report on commercial activities as security for intelligence collection required by section 437(c) of title 10, United States Code. ``(G) The annual report on expenditures for postemployment assistance for terminated intelligence employees required by section 1611(e)(2) of title 10, United States Code. ``(H) The annual update on foreign industrial espionage required by section 809(b) of the Counterintelligence and Security Enhancements Act of 1994 (title VIII of Public Law 103-359; 50 U.S.C. App. 2170b(b)). ``(I) The annual report on coordination of counterintelligence matters with the Federal Bureau of Investigation required by section 811(c)(6) of the Counterintelligence and Security Enhancements Act of 1994 (50 U.S.C. 402a(c)(6)). ``(J) The annual report on foreign companies involved in the proliferation of weapons of mass destruction that raise funds in the United States capital markets required by section 827 of the Intelligence Authorization Act for Fiscal Year 2003. ``(K) The annual report on certifications for immunity in interdiction of aircraft engaged in illicit drug trafficking required by section 1012(c)(2) of the National Defense Authorization Act for Fiscal Year 1995 (22 U.S.C. 2291-4(c)(2)). ``(L) The annual report on exceptions to consumer disclosure requirements for national security investigations under section 604(b)(4)(E) of the Fair Credit Reporting Act (15 U.S.C. 1681b(b)(4)(E)). ``(M) The annual report on activities under the David L. Boren National Security Education Act of 1991 (title VIII of Public Law 102-183; 50 U.S.C. 1901 et seq.) required by section 806(a) of that Act (50 U.S.C. 1906(a)). ``(N) The annual report on hiring and retention of minority employees in the intelligence community required by section 114(c). ``(2) The date for the submittal to the congressional intelligence committees of the following annual reports shall be the date each year provided in subsection (c)(1)(B): ``(A) The annual report on the safety and security of Russian nuclear facilities and nuclear military forces required by section 114(b). ``(B) The annual report on the threat of attack on the United States from weapons of mass destruction required by section 114(d). ``(C) The annual report on covert leases required by section 114(e). ``(D) The annual report on improvements of the financial statements of the intelligence community for auditing purposes required by section 114A. ``(E) The annual report on activities of personnel of the Federal Bureau of Investigation outside the United States required by section 540C(c)(2) of title 28, United States Code. ``(F) The annual report on intelligence activities of the People's Republic of China required by section 308(c) of the Intelligence Authorization Act for Fiscal Year 1998 (Public Law 105-107; 50 U.S.C. 402a note). ``(G) The annual report on counterdrug intelligence matters required by section 826 of the Intelligence Authorization Act for Fiscal Year 2003. ``(b) Semiannual Reports.--The dates for the submittal to the congressional intelligence committees of the followingsemiannual reports shall be the dates each year provided in subsection (c)(2): ``(1) The periodic reports on intelligence provided to the United Nations required by section 112(b). ``(2) The semiannual reports on the Office of the Inspector General of the Central Intelligence Agency required by section 17(d)(1) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403q(d)(1)). ``(3) The semiannual reports on decisions not to prosecute certain violations of law under the Classified Information Procedures Act (18 U.S.C. App.) as required by section 13 of that Act. ``(4) The semiannual reports on the acquisition of technology relating to weapons of mass destruction and advanced conventional munitions required by section 721(b) of the Combatting Proliferation of Weapons of Mass Destruction Act of 1996 (title VII of Public Law 104-293; 50 U.S.C. 2366(b)). ``(5) The semiannual reports on the activities of the Diplomatic Telecommunications Service Program Office (DTS-PO) required by section 322(a)(6)(D)(ii) of the Intelligence Authorization Act for Fiscal Year 2001 (22 U.S.C. 7302(a)(6)(D)(ii)). ``(6) The semiannual reports on the disclosure of information and consumer reports to the Federal Bureau of Investigation for counterintelligence purposes required by section 624(h)(2) of the Fair Credit Reporting Act (15 U.S.C. 1681u(h)(2)). ``(7) The semiannual provision of information on requests for financial information for foreign counterintelligence purposes required by section 1114(a)(5)(C) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3414(a)(5)(C)). ``(8) The semiannual report on financial intelligence on terrorist assets required by section 118. ``(c) Submittal Dates for Reports.--(1)(A) Except as provided in subsection (d), each annual report listed in subsection (a)(1) shall be submitted not later than February 1. ``(B) Except as provided in subsection (d), each annual report listed in subsection (a)(2) shall be submitted not later than December 1. ``(2) Except as provided in subsection (d), each semiannual report listed in subsection (b) shall be submitted not later than February 1 and August 1. ``(d) Postponement of Submittal.--(1) Subject to paragraph (3), the date for the submittal of-- ``(A) an annual report listed in subsection (a)(1) may be postponed until March 1; ``(B) an annual report listed in subsection (a)(2) may be postponed until January 1; and ``(C) a semiannual report listed in subsection (b) may be postponed until March 1 or September 1, as the case may be, if the official required to submit such report submits to the congressional intelligence committees a written notification of such postponement. ``(2)(A) Notwithstanding any other provision of law and subject to paragraph (3), the date for the submittal to the congressional intelligence committees of any report described in subparagraph (B) may be postponed by not more than 30 days from the date otherwise specified in the provision of law for the submittal of such report if the official required to submit such report submits to the congressional intelligence committees a written notification of such postponement. ``(B) A report described in this subparagraph is any report on intelligence or intelligence-related activities of the United States Government that is submitted under a provision of law requiring the submittal of only a single report. ``(3)(A) The date for the submittal of a report whose submittal is postponed under paragraph (1) or (2) may be postponed beyond the time provided for the submittal of such report under such paragraph if the official required to submit such report submits to the congressional intelligence committees a written certification that preparation and submittal of such report at such time will impede the work of officers or employees of the intelligence community in a manner that will be detrimental to the national security of the United States. ``(B) A certification with respect to a report under subparagraph (A) shall include a proposed submittal date for such report, and such report shall be submitted not later than that date.''. (2) The table of sections for the National Security Act of 1947, as amended by section 311 of this Act, is further amended by inserting after the item relating to section 506 the following new item: ``Sec. 507. Dates for submittal of various annual and semiannual reports to the congressional intelligence committees.''. (b) Conforming Amendments to Existing Reporting Requirements.-- (1) National security act of 1947.--(A) Subsection (d) of section 105 of the National Security Act of 1947 (50 U.S.C. 403-5) is amended to read as follows: ``(d) Annual Evaluation of Performance and Responsiveness of Certain Elements of Intelligence Community.--(1) Not later each year than the date provided in section 507, the Director shall submit to the congressional intelligence committees the evaluation described in paragraph (3). ``(2) The Director shall submit each year to the Committee on Foreign Intelligence of the National Security Council, and to the Committees on Armed Services and Appropriations of the Senate and House of Representatives, the evaluation described in paragraph (3). ``(3) An evaluation described in this paragraph is an evaluation of the performance and responsiveness of the National Security Agency, the National Reconnaissance Office, and the National Imagery and Mapping Agency in meeting their respective national missions. ``(4) The Director shall submit each evaluation under this subsection in consultation with the Secretary of Defense and the Chairman of the Joint Chiefs of Staff.''. (B) Section 109 of that Act (50 U.S.C. 404d) is amended-- (i) in subsection (a), by striking paragraph (1) and inserting the following new paragraph (1): ``(1)(A) Not later each year than the date provided in section 507, the President shall submit to the congressional intelligence committees a report on the requirements of the United States for intelligence and the activities of the intelligence community. ``(B) Not later than January 31 each year, and included with the budget of the President for the next fiscal year under section 1105(a) of title 31, United States Code, the President shall submit to the appropriate congressional committees the report described in subparagraph (A).''; (ii) in subsection (c), as amended by section 803(a) of the Intelligence Renewal and Reform Act of 1996 (title VIII of Public Law 104-293; 110 Stat. 3475)-- (I) in paragraph (1), by striking ``The Select Committee on Intelligence, the Committee on Appropriations,'' and inserting ``The Committee on Appropriations''; and (II) in paragraph (2), by striking ``The Permanent Select Committee on Intelligence, the Committee on Appropriations,'' and inserting ``The Committee on Appropriations''; and (iii) by striking subsection (c), as added by section 304(a) of the Intelligence Authorization Act for Fiscal Year 1994 (Public Law 103-178; 107 Stat. 2034). (C) Section 112(b) of that Act (50 U.S.C. 404g(b)) is amended by adding at the end the following new paragraph: ``(3) In the case of periodic reports required to be submitted under the first sentence of paragraph (1) to the congressional intelligence committees, the submittal dates for such reports shall be as provided in section 507.''. (D) Section 114 of that Act (50 U.S.C. 404i) is amended-- (i) in subsection (a)-- (I) in paragraph (1), by striking ``the congressional intelligence committees and''; (II) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (III) by inserting after paragraph (1) the following new paragraph (2): ``(2) Not later each year than the date provided in section 507, the Director shall submit to the congressional intelligence committees the report required to be submitted under paragraph (1) during the preceding year.''; and (ii) in subsection (b)(1), by striking ``, on an annual basis'' and all that follows through ``leadership'' and inserting ``submit to the congressional leadership on an annual basis, and to the congressional intelligence committees on the date each year provided in section 507,''. (E) Section 603 of that Act (50 U.S.C. 423) is amended-- (i) in subsection (a), by adding at the end the following new sentence: ``The date for the submittal of the report shall be the date provided in section 507.''; and (ii) in subsection (b), by striking the second sentence. (2) Central intelligence agency act of 1949.-- Section 17(d)(1) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403q(d)(1)) is amended in the second sentence by striking ``Within thirty days of receipt of such reports,'' and inserting ``Not later than the dates each year provided for the transmittal of such reports in section 507 of the National Security Act of 1947,''. (3) Classified information procedures act.--Section 13 of the Classified Information Procedures Act (18 U.S.C. App.) is amended-- (A) by redesignating subsection (b) as subsection (c); and (B) by inserting after subsection (a) the following new subsection (b): ``(b) In the case of the semiannual reports (whether oral or written) required to be submitted under subsection (a) to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate, the submittal dates for such reports shall be as provided in section 507 of the National Security Act of 1947.''. (4) Title 10, united states code.--(A) Section 437 of title 10, United States Code, is amended-- (i) in subsection (c), by striking ``Not later than'' and all that follows through ``of Congress'' and inserting ``Not later each year than the date provided in section 507 of the National Security Act of 1947, the Secretary shall submit to the congressional intelligence committees (as defined in section 3 of that Act (50 U.S.C. 401a))''; and (ii) by striking subsection (d). (B) Section 1611(e) of that title is amended-- (i) in paragraph (1), by striking ``paragraph (2)'' and inserting ``paragraph (3)''; (ii) by redesignating paragraph (2) as paragraph (3); and (iii) by inserting after paragraph (1) the following new paragraph (2): ``(2) In the case of a report required to be submitted under paragraph (1) to the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives, the date for the submittal of such report shall be as provided in section 507 of the National Security Act of 1947.''. (5) Intelligence authorization acts.--(A) Section 809 of the Counterintelligence and Security Enhancements Act of 1994 (title VIII of Public Law 103- 359; 108 Stat. 3454; 50 U.S.C. App. 2170b) is amended by striking subsection (b) and inserting the following new subsection (b): ``(b) Annual Update.-- ``(1) Submittal to congressional intelligence committees.--Not later each year than the date provided in section 507 of the National Security Act of 1947, the President shall submit to the congressional intelligence committees a report updating the information referred to in subsection (a)(1)(D). ``(2) Submittal to congressional leadership.--Not later than April 14 each year, the President shall submit to the congressional leadership a report updating the information referred to in subsection (a)(1)(D). ``(3) Definitions.--In this subsection: ``(A) Congressional intelligence committees.--The term `congressional intelligence committees' has the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 401a). ``(B) Congressional leadership.--The term `congressional leadership' means the Speaker and the minority leader of the House of Representatives and the majority leader and the minority leader of the Senate.''. (B) Paragraph (6) of section 811(c) of that Act (50 U.S.C. 402a(c)) is amended to read as follows: ``(6)(A) Not later each year than the date provided in section 507 of the National Security Act of 1947, the Director of the Federal Bureau of Investigation shall submit to the congressional intelligence committees (as defined in section 3 of that Act (50 U.S.C. 401a)) a report with respect to compliance with paragraphs (1) and (2) during the previous calendar year. ``(B) Not later than February 1 each year, the Director shall, in accordance with applicable security procedures, submit to the Committees on the Judiciary of the Senate and House of Representatives a report with respect to compliance with paragraphs (1) and (2) during the previous calendar year. ``(C) The Director of the Federal Bureau of Investigation shall submit each report under this paragraph in consultation with the Director of Central Intelligence and the Secretary of Defense.''. (C) Section 721 of the Combatting Proliferation of Weapons of Mass Destruction Act of 1996 (title VII of Public Law 104-293; 110 Stat. 3474; 50 U.S.C. 2366) is amended-- (i) in subsection (a), by striking ``Not later than'' and all that follows through ``the Director'' and inserting ``The Director''; (ii) by redesignating subsection (b) as subsection (c); (iii) by inserting after subsection (a) the following new subsection (b): ``(b) Submittal Dates.--(1) The report required by subsection (a) shall be submitted each year to the congressional intelligence committees and the congressional leadership on a semiannual basis on the dates provided in section 507 of the National Security Act of 1947. ``(2) In this subsection: ``(A) The term `congressional intelligence committees' has the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 401a). ``(B) The term `congressional leadership' means the Speaker and the minority leader of the House of Representatives and the majority leader and the minority leader of the Senate.''; and (iv) in subsection (c), as so redesignated, by striking ``The reports'' and inserting ``Each report''. (D) Section 308 of the Intelligence Authorization Act for Fiscal Year 1998 (Public Law 105-107; 111 Stat. 2253; 50 U.S.C. 402a note) is amended-- (i) in subsection (a)-- (I) by striking ``Not later than'' and all that follows through ``the Director of Central Intelligence'' and inserting ``The Director of Central Intelligence''; and (II) by inserting ``on an annual basis'' after ``to Congress''; and (ii) by adding at the end the end the following new subsection (c): ``(c) Submittal Date of Report to Leadership of Congressional Intelligence Committees.--The date each year for the submittal to the Chairman and Ranking Member of the Permanent Select Committee on Intelligence of the House of Representatives and the Chairman and Vice Chairman of the Select Committee on Intelligence of the Senate of the report required by subsection (a) shall be the date provided in section 507 of the National Security Act of 1947.''. (E) Section 322(a)(6)(D) of the Intelligence Authorization Act for Fiscal Year 2001 (Public Law 106- 567; 114 Stat. 2844; 22 U.S.C. 7302(a)(6)(D)) is amended-- (i) in clause (i), by striking ``Beginning on'' and inserting ``Except as provided in clause (ii), beginning on''; (ii) by redesignating clause (ii) as clause (iii); (iii) by inserting after clause (i) the following new clause (ii): ``(ii) Submittal date of reports to congressional intelligence committees.--In the case of reports required to be submitted under clause (i) to the congressional intelligence committees (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), the submittal dates for such reports shall be as provided in section 507 of that Act.''; and (iv) in clause (iii), as so redesignated, by striking ``report'' and inserting ``reports''. (6) Public law 103-337.--Section 1012(c) of the National Defense Authorization Act for Fiscal Year 1995 (22 U.S.C. 2291-4(c)) is amended-- (A) in paragraph (1), by striking ``Not later than'' and inserting ``Except as provided in paragraph (2), not later than''; (B) by redesignating paragraph (2) as paragraph (3); and (C) by inserting after paragraph (1) the following new paragraph (2): ``(2) In the case of a report required to be submitted under paragraph (1) to the congressional intelligence committees (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), the submittal date for such report shall be as provided in section 507 of that Act.''. (7) David l. boren national security education act of 1991.--The David L. Boren National Security Education Act of 1991 (title VIII of Public Law 102- 183; 50 U.S.C. 1901 et seq.) is amended-- (A) in section 806(a) (50 U.S.C. 1906(a))-- (i) by inserting ``(1)'' before ``The Secretary''; (ii) in paragraph (1), as so designated, by striking ``the Congress'' and inserting ``the congressional intelligence committees''; (iii) by designating the second sentence as paragraph (2) and by aligning such paragraph with the paragraph added by clause (v); (iv) in paragraph (2), as so designated, by inserting ``submitted to the President'' after ``The report''; and (v) by adding at the end the following new paragraph (3): ``(3) The report submitted to the congressional intelligence committees shall be submitted on the date provided in section 507 of the National Security Act of 1947.''; and (B) in section 808 (50 U.S.C. 1908), by adding at the end the following new paragraph (5): ``(5) The term `congressional intelligence committees' means-- ``(A) the Select Committee on Intelligence of the Senate; and ``(B) the Permanent Select Committee on Intelligence of the House of Representatives.''. (8) Fair credit reporting act.--(A) Section 604(b)(4) of the Fair Credit Reporting Act (15 U.S.C. 1681b(b)(4)) is amended-- (i) in subparagraph (D), by striking ``Not later than'' and inserting ``Except as provided in subparagraph (E), not later than''; (ii) by redesignating subparagraph (E) as subparagraph (F); and (iii) by inserting after subparagraph (D) the following new subparagraph (E): ``(E) Reports to congressional intelligence committees.--In the case of a report to be submitted under subparagraph (D) to the congressional intelligence committees (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), the submittal date for such report shall be as provided in section 507 of that Act.''. (B) Section 625(h) of that Act (15 U.S.C. 1681u(h)) is amended-- (i) by inserting ``(1)'' before ``On a semiannual basis,''; and (ii) by adding at the end the following new paragraph: ``(2) In the case of the semiannual reports required to be submitted under paragraph (1) to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate, the submittal dates for such reports shall be as provided in section 507 of the National Security Act of 1947.''. (9) Right to financial privacy act of 1978.-- Section 1114(a)(5)(C) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3414(a)(5)(C)) is amended by striking ``On a semiannual'' and all that follows through ``the Senate'' and inserting ``On the dates provided in section 507 of the National Security Act of 1947, the Attorney General shall fully inform the congressional intelligence committees (as defined in section 3 of that Act (50 U.S.C. 401a))''. Subtitle C--Recurring Annual Reports SEC. 821. ANNUAL REPORT ON THREAT OF ATTACK ON THE UNITED STATES USING WEAPONS OF MASS DESTRUCTION. Section 114 of the National Security Act of 1947, as amended by section 353(b)(6) of this Act, is further amended-- (1) by redesignating subsection (d) as subsection (e); and (2) by inserting after subsection (c) the following new subsection (d): ``(d) Annual Report on Threat of Attack on the United States Using Weapons of Mass Destruction.--(1) Not later each year than the date provided in section 507, the Director shall submit to the congressional committees specified in paragraph (3) a report assessing the following: ``(A) The current threat of attack on the United States using ballistic missiles or cruise missiles. ``(B) The current threat of attack on the United States using a chemical, biological, or nuclear weapon delivered by a system other than a ballistic missile or cruise missile. ``(2) Each report under paragraph (1) shall be a national intelligence estimate, or have the formality of a national intelligence estimate. ``(3) The congressional committees referred to in paragraph (1) are the following: ``(A) The congressional intelligence committees. ``(B) The Committees on Foreign Relations and Armed Services of the Senate. ``(C) The Committees on International Relations and Armed Services of the House of Representatives.''. SEC. 822. ANNUAL REPORT ON COVERT LEASES. Section 114 of the National Security Act of 1947, as amended by section 821 of this Act, is further amended-- (1) by redesignating subsection (e) as subsection (f); and (2) by inserting after subsection (d) the following new subsection (e): ``(e) Annual Report on Covert Leases.--(1) Not later each year than the date provided in section 507, the Director shall submit to the congressional intelligence committees a report on each covert lease of an element of the intelligence community that is in force as of the end of the preceding year. ``(2) Each report under paragraph (1) shall include the following: ``(A) A list of each lease described by that paragraph. ``(B) For each lease-- ``(i) the cost of such lease; ``(ii) the duration of such lease; ``(iii) the purpose of such lease; and ``(iv) the directorate or office that controls such lease.''. SEC. 823. ANNUAL REPORT ON IMPROVEMENT OF FINANCIAL STATEMENTS OF CERTAIN ELEMENTS OF THE INTELLIGENCE COMMUNITY FOR AUDITING PURPOSES. (a) In General.--Title I of the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by inserting after section 114 the following new section: ``ANNUAL REPORT ON IMPROVEMENT OF FINANCIAL STATEMENTS FOR AUDITING PURPOSES ``Sec. 114A. Not later each year than the date provided in section 507, the Director of Central Intelligence, the Director of the National Security Agency, the Director of the Defense Intelligence Agency, and the Director of the National Imagery and Mapping Agency shall each submit to the congressional intelligence committees a report describing the activities being undertaken by such official to ensure that the financial statements of such agency can be audited in accordance with applicable law and requirements of the Office of Management and Budget.''. (b) Clerical Amendment.--The table of sections for the National Security Act of 1947 is amended by inserting after the item relating to section 114 the following new item: ``Sec. 114A. Annual report on improvement of financial statements for auditing purposes.''. SEC. 824. ANNUAL REPORT ON ACTIVITIES OF FEDERAL BUREAU OF INVESTIGATION PERSONNEL OUTSIDE THE UNITED STATES. (a) Annual Report.--Chapter 33 of title 28, United States Code, is amended by adding at the end the following new section: ``Sec. 540C. Annual report on activities of Federal Bureau of Investigation personnel outside the United States ``(a) The Director of the Federal Bureau of Investigation shall submit to the appropriate committees of Congress each year a report on the activities of personnel of the Federal Bureau of Investigation outside the United States. ``(b) The report under subsection (a) shall include the following: ``(1) For the year preceding the year in which the report is required to be submitted-- ``(A) the number of personnel of the Bureau posted or detailed outside the United States during the year; ``(B) a description of the coordination of the investigations, asset handling, liaison, and operational activities of the Bureau during the year with other elements of the intelligence community; and ``(C) a description of the extent to which information derived from activities described in subparagraph (B) was shared with other elements of the intelligence community. ``(2) For the year in which the report is required to be submitted-- ``(A) a description of the plans, if any, of the Director-- ``(i) to modify the number of personnel of the Bureau posted or detailed outside the United States; or ``(ii) to modify the scope of the activities of personnel of the Bureau posted or detailed outside the United States; and ``(B) a description of the manner and extent to which information derived from activities of the Bureau described in paragraph (1)(B) during the year will be shared with other elements of the intelligence community. ``(c) The date of the submittal each year of the report required by subsection (a) shall be the date provided in section 507 of the National Security Act of 1947. ``(d) In this section, the term `appropriate committees of Congress' means-- ``(1) the Committees on the Judiciary of the Senate and House of Representatives; and ``(2) the congressional intelligence committees (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)).''. (b) Clerical Amendment.--The table of sections at the beginning of chapter 33 of that title is amended by inserting after the item relating to section 540B the following new item: ``540C. Annual report on activities of Federal Bureau of Investigation personnel outside the United States.''. SEC. 825. ANNUAL REPORTS OF INSPECTORS GENERAL OF THE INTELLIGENCE COMMUNITY ON PROPOSED RESOURCES AND ACTIVITIES OF THEIR OFFICES. Section 8H of the Inspector General Act of 1978 (5 U.S.C. App.) is amended-- (1) in subsection (f), by striking ``this section'' and inserting ``subsections (a) through (e)''; (2) by redesignating subsection (g) as subsection (h); and (3) by inserting after subsection (f) the following new subsection (g): ``(g)(1) The Inspector General of the Defense Intelligence Agency, the National Imagery and Mapping Agency, the National Reconnaissance Office, and the National Security Agency shall each submit to the congressional intelligence committees each year a report that sets forth the following: ``(A) The personnel and funds requested by such Inspector General for the fiscal year beginning in such year for the activities of the office of such Inspector General in such fiscal year. ``(B) The plan of such Inspector General for such activities, including the programs and activities scheduled for review by the office of such Inspector General during such fiscal year. ``(C) An assessment of the current ability of such Inspector General to hire and retain qualified personnel for the office of such Inspector General. ``(D) Any matters that such Inspector General considers appropriate regarding the independence and effectiveness of the office of such Inspector General. ``(2) The submittal date for a report under paragraph (1) each year shall be the date provided in section 507 of the National Security Act of 1947. ``(3) In this subsection, the term `congressional intelligence committees' shall have the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 401a).''. SEC. 826. ANNUAL REPORT ON COUNTERDRUG INTELLIGENCE MATTERS. (a) Annual Report.--The Counterdrug Intelligence Coordinating Group shall submit to the appropriate committees of Congress each year a report on current counterdrug intelligence matters. The report shall include the recommendations of the Counterdrug Intelligence Coordinating Group on the appropriate number of permanent staff, and of detailed personnel, for the staff of the Counterdrug Intelligence Executive Secretariat. (b) Submittal Date.--The date of the submittal each year of the report required by subsection (a) shall be the date provided in section 507 of the National Security Act of 1947, as added by section 811 of this Act. (c) Appropriate Committees of Congress Defined.--In this section, the term ``appropriate committees of Congress'' means-- (1) the Committees on Appropriations of the Senate and House of Representatives; and (2) the congressional intelligence committees (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)). SEC. 827. ANNUAL REPORT ON FOREIGN COMPANIES INVOLVED IN THE PROLIFERATION OF WEAPONS OF MASS DESTRUCTION THAT RAISE FUNDS IN THE UNITED STATES CAPITAL MARKETS. (a) Annual Report Required.--The Director of Central Intelligence shall submit to the appropriate committees of Congress on an annual basis a report setting forth each foreign company described in subsection (b) that raised or attempted to raise funds in the United States capital markets during the preceding year. (b) Covered Foreign Companies.--A foreign company described in this subsection is any foreign company determined by the Director to be engaged or involved in the proliferation of weapons of mass destruction (including nuclear, biological, or chemical weapons) or the means to deliver such weapons. (c) Submittal Date.--The date each year for the submittal of the report required by subsection (a) shall be the date provided in section 507 of the National Security Act of 1947, as added by section 811 of this Act. (d) Form of Reports.--Each report under subsection (a) shall be submitted in unclassified form, but may include a classified annex. (e) Appropriate Committees of Congress Defined.--In this section, the term ``appropriate committees of Congress'' means-- (1) the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives; (2) the Committees on Armed Services, Banking, Housing, and Urban Affairs, Governmental Affairs, and Foreign Relations of the Senate; and (3) the Committees on Armed Services, Financial Services, Government Reform, and International Relations of the House of Representatives. Subtitle D--Other Reports SEC. 831. REPORT ON EFFECT OF COUNTRY-RELEASE RESTRICTIONS ON ALLIED INTELLIGENCE-SHARING RELATIONSHIPS. (a) Report.--Not later than 90 days after the date of the enactment of this Act, the Director of Central Intelligence shall, in consultation with the Secretary of Defense, submit to the congressional intelligence committees a report containing an assessment of the effect of the use of ``NOFORN'' classifications, and of other country-release policies, procedures, and classification restrictions, on intelligence- sharing relationships and coordinated intelligence operations and military operations between the United States and its allies. The report shall include an assessment of the effect of the use of such classifications, and of such policies, procedures, and restrictions, on counterterrorism operations in Afghanistan and elsewhere. (b) Congressional Intelligence Committees Defined.--In this section, the term ``congressional intelligence committee'' means-- (1) the Select Committee on Intelligence of the Senate; and (2) the Permanent Select Committee on Intelligence of the House of Representatives. SEC. 832. EVALUATION OF POLICIES AND PROCEDURES OF DEPARTMENT OF STATE ON PROTECTION OF CLASSIFIED INFORMATION AT DEPARTMENT HEADQUARTERS. (a) Evaluation Required.--Not later than December 31 of 2002, 2003, and 2004, the Inspector General of the Department of State shall conduct an evaluation of the policies and procedures of the Department on the protection of classified information at the Headquarters of the Department, including compliance with the directives of the Director of Central Intelligence (DCIDs) regarding the storage and handling of Sensitive Compartmented Information (SCI) material. (b) Annual Report.--Except as provided in subsection (c), not later than February 1 of 2003, 2004, and 2005, the Inspector General shall submit to the following committees a report on the evaluation conducted under subsection (a) during the preceding year: (1) The congressional intelligence committees. (2) The Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives. (c) Exception.--The date each year for the submittal of a report under subsection (b) may be postponed in accordance with section 507(d) of the National Security Act of 1947, as added by section 811 of this Act. (d) Congressional Intelligence Committees Defined.--In this section, the term ``congressional intelligence committees'' means-- (1) the Select Committee on Intelligence of the Senate; and (2) the Permanent Select Committee on Intelligence of the House of Representatives. Subtitle E--Repeal of Certain Report Requirements SEC. 841. REPEAL OF CERTAIN REPORT REQUIREMENTS. (a) Annual Report on the Detail of Intelligence Community Personnel.--Section 113 of the National Security Act of 1947 (50 U.S.C. 404h) is amended by striking subsection (c). (b) Annual Report on Exercise of National Security Agency Voluntary Separation Pay Authority.--Section 301(j) of the National Security Act of 1947 (50 U.S.C. 409a(j)), as amended by section 353(b)(2)(A) of this Act, is further amended-- (1) by striking ``Reporting Require- ments.--'' and all that follows through ``The Director may'' and inserting ``Notification of Exercise of Authority.--The Director may''; and (2) by striking paragraph (2). (c) Annual Report on Transfers of Amounts for Acquisition of Land by the Central Intelligence Agency.--Section 5(c)(2) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403f(c)(2)) is amended by striking ``an annual report on the transfers of sums described in paragraph (1).'' and inserting ``a report on the transfer of sums described in paragraph (1) each time that authority is exercised.''. (d) Annual Report on Use of CIA Personnel as Special Policemen.--Section 15(a) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403o(a)) is amended by striking paragraph (5). (e) Annual Audit of the Central Services Program of the Central Intelligence Agency.--Section 21 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403u) is amended-- (1) by striking subsection (g); and (2) by redesignating subsection (h) as subsection (g). (f) Annual Report on Special Police Authority for the National Security Agency.--Section 11(a)(5) of the National Security Agency Act of 1959 (50 U.S.C. 402 note) is amended by inserting ``through 2004'' after ``Not later than July 1 each year''. TITLE IX--COUNTERINTELLIGENCE ACTIVITIES SEC. 901. SHORT TITLE; PURPOSE. (a) Short Title.--This title may be cited as the ``Counterintelligence Enhancement Act of 2002''. (b) Purpose.--The purpose of this title is to facilitate the enhancement of the counterintelligence activities of the United States Government by-- (1) enabling the counterintelligence community of the United States Government to fulfill better its mission of identifying, assessing, prioritizing, and countering the intelligence threats to the United States; (2) ensuring that the counterintelligence community of the United States Government acts in an efficient and effective manner; and (3) providing for the integration of all the counterintelligence activities of the United States Government. SEC. 902. NATIONAL COUNTERINTELLIGENCE EXECUTIVE. (a) Establishment.--(1) There shall be a National Counterintelligence Executive, who shall be appointed by the President. (2) It is the sense of Congress that the President should seek the views of the Attorney General, Secretary of Defense, and Director of Central Intelligence in selecting an individual for appointment as the Executive. (b) Mission.--The mission of the National Counterintelligence Executive shall be to serve as the head of national counterintelligence for the United States Government. (c) Duties.--Subject to the direction and control of the President, the duties of the National Counterintelligence Executive are as follows: (1) To carry out the mission referred to in subsection (b). (2) To act as chairperson of the National Counterintelligence Policy Board under section 811 of the Counterintelligence and Security Enhancements Act of 1994 (title VIII of Public Law 103-359; 50 U.S.C. 402a), as amended by section 903 of this Act. (3) To act as head of the Office of the National Counterintelligence Executive under section 904. (4) To participate as an observer on such boards, committees, and entities of the executive branch as the President considers appropriate for the discharge of the mission and functions of the Executive and the Office of the National Counterintelligence Executive under section 904. SEC. 903. NATIONAL COUNTERINTELLIGENCE POLICY BOARD. (a) Chairperson.--Section 811 of the Counterintelligence and Security Enhancements Act of 1994 (title VII of Public Law 103-359; 50 U.S.C. 402a), as amended by section 811(b)(5)(B) of this Act, is further amended-- (1) by striking subsection (b); (2) by redesignating subsection (c) as subsection (e); and (3) by inserting after subsection (a) the following new subsection (b): ``(b) Chairperson.--The National Counterintelligence Executive under section 902 of the Counterintelligence Enhancement Act of 2002 shall serve as the chairperson of the Board.''. (b) Membership.--That section is further amended by inserting after subsection (b), as amended by subsection (a)(3) of this section, the following new subsection (c): ``(c) Membership.--The membership of the National Counterintelligence Policy Board shall consist of the following: ``(1) The National Counterintelligence Executive. ``(2) Senior personnel of departments and elements of the United States Government, appointed by the head of the department or element concerned, as follows: ``(A) The Department of Justice, including the Federal Bureau of Investigation. ``(B) The Department of Defense, including the Joint Chiefs of Staff. ``(C) The Department of State. ``(D) The Department of Energy. ``(E) The Central Intelligence Agency. ``(F) Any other department, agency, or element of the United States Government specified by the President.''. (c) Functions and Discharge of Functions.--That section is further amended by inserting after subsection (c), as amended by subsection (b) of this section, the following new subsection: ``(d) Functions and Discharge of Functions.--(1) The Board shall-- ``(A) serve as the principal mechanism for-- ``(i) developing policies and procedures for the approval of the President to govern the conduct of counterintelligence activities; and ``(ii) upon the direction of the President, resolving conflicts that arise between elements of the Government conducting such activities; and ``(B) act as an interagency working group to-- ``(i) ensure the discussion and review of matters relating to the implementation of the Counterintelligence Enhancement Act of 2002; and ``(ii) provide advice to the National Counterintelligence Executive on priorities in the implementation of the National Counterintelligence Strategy produced by the Office of the National Counterintelligence Executive under section 904(e)(2) of that Act. ``(2) The Board may, for purposes of carrying out its functions under this section, establish such interagency boards and working groups as the Board considers appropriate.''. SEC. 904. OFFICE OF THE NATIONAL COUNTERINTELLIGENCE EXECUTIVE. (a) Establishment.--There shall be an Office of the National Counterintelligence Executive. (b) Head of Office.--The National Counterintelligence Executive shall be the head of the Office of the National Counterintelligence Executive. (c) Location of Office.--The Office of the National Counterintelligence Executive shall be located in the Office of the Director of Central Intelligence. (d) General Counsel.--(1) There shall be in the Office of the National Counterintelligence Executive a general counsel who shall serve as principal legal advisor to the National Counterintelligence Executive. (2) The general counsel shall-- (A) provide legal advice and counsel to the Executive on matters relating to functions of the Office; (B) ensure that the Office complies with all applicable laws, regulations, Executive orders, and guidelines; and (C) carry out such other duties as the Executive may specify. (e) Functions.--Subject to the direction and control of the National Counterintelligence Executive, the functions of the Office of the National Counterintelligence Executive shall be as follows: (1) National threat identification and prioritization assessment.--Subject to subsection (f), in consultation with appropriate department and agencies of the United States Government, and private sector entities, to produce on an annual basis a strategic planning assessment of the counterintelligence requirements of the United States to be known as the National Threat Identification and Prioritization Assessment. (2) National counterintelligence strategy.--Subject to subsection (f), in consultation with appropriate department and agencies of the United States Government, and private sector entities, and based on the most current National Threat Identification and Prioritization Assessment under paragraph (1), to produce on an annual basis a strategy for the counterintelligence programs and activities of the United States Government to be known as the National Counterintelligence Strategy. (3) Implementation of national counterintelligence strategy.--To evaluate on an ongoing basis the implementation of the National Counterintelligence Strategy and to submit to the President periodic reports on such evaluation, including a discussion of any shortfalls in the implementation of the Strategy and recommendations for remedies for such shortfalls. (4) National counterintelligence strategic analyses.--As directed by the Director of Central Intelligence and in consultation with appropriate elements of the departments and agencies of the United States Government, to oversee and coordinate the production of strategic analyses of counterintelligence matters, including the production of counterintelligence damage assessments and assessments of lessons learned from counterintelligence activities. (5) National counterintelligence program budget.-- In consultation with the Director of Central Intelligence-- (A) to coordinate the development of budgets and resource allocation plans for the counterintelligence programs and activities of the Department of Defense, the Federal Bureau of Investigation, the Central Intelligence Agency, and other appropriate elements of the United States Government; (B) to ensure that the budgets and resource allocation plans developed under subparagraph (A) address the objectives and priorities for counterintelligence under the National Counterintelligence Strategy; and (C) to submit to the National Security Council periodic reports on the activities undertaken by the Office under subparagraphs (A) and (B). (6) National counterintelligence collection and targeting coordination.--To develop priorities for counterintelligence investigations and operations, and for collection of counterintelligence, for purposes of the National Counterintelligence Strategy, except that the Office may not-- (A) carry out any counterintelligence investigations or operations; or (B) establish its own contacts, or carry out its own activities, with foreign intelligence services. (7) National counterintelligence outreach, watch, and warning.-- (A) Counterintelligence vulnerability surveys.--To carry out and coordinate surveys of the vulnerability of the United States Government, and the private sector, to intelligence threats in order to identify the areas, programs, and activities that require protection from such threats. (B) Outreach.--To carry out and coordinate outreach programs and activities on counterintelligence to other elements of the United States Government, and the private sector, and to coordinate the dissemination to the public of warnings on intelligence threats to the United States. (C) Research and development.--To ensure that research and development programs and activities of the United States Government, and the private sector, direct attention to the needs of the counterintelligence community for technologies, products, and services. (D) Training and professional development.--To develop policies and standards for trainingand professional development of individuals engaged in counterintelligence activities and to manage the conduct of joint training exercises for such personnel. (f) Additional Requirements Regarding National Threat Identification and Prioritization Assessment and National Counterintelligence Strategy.--(1) A National Threat Identification and Prioritization Assessment under subsection (e)(1), and any modification of such assessment, shall not go into effect until approved by the President. (2) A National Counterintelligence Strategy under subsection (e)(2), and any modification of such strategy, shall not go into effect until approved by the President. (3) The National Counterintelligence Executive shall submit to the congressional intelligence committees each National Threat Identification and Prioritization Assessment, or modification thereof, and each National Counterintelligence Strategy, or modification thereof, approved under this section. (4) In this subsection, the term ``congressional intelligence committees'' means-- (A) the Select Committee on Intelligence of the Senate; and (B) the Permanent Select Committee on Intelligence of the House of Representatives. (g) Personnel.--(1) Personnel of the Office of the National Counterintelligence Executive may consist of personnel employed by the Office or personnel on detail from any other department, agency, or element of the Federal Government. Any such detail may be on a reimbursable or nonreimbursable basis, at the election of the head of the agency detailing such personnel. (2) Notwithstanding section 104(d) or any other provision of law limiting the period of the detail of personnel on a nonreimbursable basis, the detail of an officer or employee of United States or a member of the Armed Forces under paragraph (1) on a nonreimbursable basis may be for any period in excess of one year that the National Counterintelligence Executive and the head of the department, agency, or element concerned consider appropriate. (3) The employment of personnel by the Office, including the appointment, compensation and benefits, management, and separation of such personnel, shall be governed by the provisions of law on such matters with respect to the personnel of the Central Intelligence Agency, except that, for purposes of the applicability of such provisions of law to personnel of the Office, the National Counterintelligence Executive shall be treated as the head of the Office. (4) Positions in the Office shall be excepted service positions for purposes of title 5, United States Code. (h) Support.--(1) The Attorney General, Secretary of Defense, and Director of Central Intelligence may each provide the Office of the National Counterintelligence Executive such support as may be necessary to permit the Office to carry out its functions under this section. (2) Subject to any terms and conditions specified by the Director of Central Intelligence, the Director may provide administrative and contract support to the Office as if the Office were an element of the Central Intelligence Agency. (3) Support provided under this subsection may be provided on a reimbursable or nonreimbursable basis, at the election of the official providing such support. (i) Availability of Funds for Reimbursement.--The National Counterintelligence Executive may, from amounts available for the Office, transfer to a department or agency detailing personnel under subsection (g), or providing support under subsection (h), on a reimbursable basis amounts appropriate to reimburse such department or agency for the detail of such personnel or the provision of such support, as the case may be. (j) Contracts.--(1) Subject to paragraph (2), the National Counterintelligence Executive may enter into any contract, lease, cooperative agreement, or other transaction that the Executive considers appropriate to carry out the functions of the Office of the National Counterintelligence Executive under this section. (2) The authority under paragraph (1) to enter into contracts, leases, cooperative agreements, and other transactions shall be subject to any terms, conditions, and limitations applicable to the Central Intelligence Agency under law with respect to similar contracts, leases, cooperative agreements, and other transactions. (k) Treatment of Activities Under Certain Administrative Laws.--The files of the Office shall be treated as operational files of the Central Intelligence Agency for purposes of section 701 of the National Security Act of 1947 (50 U.S.C. 431) to the extent such files meet criteria under subsection (b) of that section for treatment of files as operational files of an element of the Agency. (l) Oversight by Congress.--The location of the Office of the National Counterintelligence Executive within the Office of the Director of Central Intelligence shall not be construed as affecting access by Congress, or any committee of Congress, to-- (1) any information, document, record, or paper in the possession of the Office; or (2) any personnel of the Office. (m) Construction.--Nothing in this section shall be construed as affecting the authority of the Director of Central Intelligence, the Secretary of Defense, the Secretary of State, the Attorney General, or the Director of the Federal Bureau of Investigation as provided or specified under the National Security Act of 1947 or under other provisions of law. TITLE X--NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY SEC. 1001. FINDINGS. Congress makes the following findings: (1) Research and development efforts under the purview of the intelligence community are vitally important to the national security of the United States. (2) The intelligence community must operate in a dynamic, highly-challenging environment, characterized by rapid technological growth, against a growing number of hostile, technically-sophisticated threats. Research and development programs under the purview of the intelligence community are critical to ensuring that intelligence agencies, and their personnel, are provided with important technological capabilities to detect, characterize, assess, and ultimately counter the full range of threats to the national security of the United States. (3) There is a need to review the full range of current research and development programs under the purview of the intelligence community, evaluate such programs against the scientific and technological fields judged to be of most importance, and articulate program and resource priorities for future research and development activities to ensure a unified and coherent research and development program across the entire intelligence community. SEC. 1002. NATIONAL COMMISSION FOR THE REVIEW OF THE RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY. (a) Establishment.--There is established a commission to be known as the ``National Commission for the Review of the Research and Development Programs of the United States Intelligence Community'' (in this title referred to as the ``Commission''). (b) Composition.--The Commission shall be composed of 12 members, as follows: (1) The Deputy Director of Central Intelligence for Community Management. (2) A senior intelligence official of the Office of the Secretary of Defense, as designated by the Secretary of Defense. (3) Three members appointed by the majority leader of the Senate, in consultation with the Chairman of the Select Committee on Intelligence of the Senate, one from Members of the Senate and two from private life. (4) Two members appointed by the minority leader of the Senate, in consultation with the Vice Chairman of the Select Committee on Intelligence of the Senate, one from Members of the Senate and one from private life. (5) Three members appointed by the Speaker of the House of Representatives, in consultation with the Chairman of the Permanent Select Committee on Intelligence of the House of Representatives, one from Members of the House of Representatives and two from private life. (6) Two members appointed by the minority leader of the House of Representatives, in consultation with the ranking member of the Permanent Select Committee on Intelligence of the House of Representatives, one from Members of the House of Representatives and one from private life. (c) Membership.--(1) The individuals appointed from private life as members of the Commission shall be individuals who are nationally recognized for expertise, knowledge, or experience in-- (A) research and development programs; (B) technology discovery and insertion; (C) use of intelligence information by national policymakers and military leaders; or (D) the implementation, funding, or oversight of the national security policies of the United States. (2) An official who appoints members of the Commission may not appoint an individual as a member of the Commission if, in the judgment of the official, such individual possesses any personal or financial interest in the discharge of any of the duties of the Commission. (3) All members of the Commission appointed from private life shall possess an appropriate security clearance in accordance with applicable laws and regulations concerning the handling of classified information. (d) Co-Chairs.--(1) The Commission shall have two co- chairs, selected from among the members of the Commission. (2) One co-chair of the Commission shall be a member of the Democratic Party, and one co-chair shall be a member of the Republican Party. (3) The individuals who serve as the co-chairs of the Commission shall be jointly agreed upon by the President, the majority leader of the Senate, the minority leader of the Senate, the Speaker of the House of Representatives, and the minority leader of the House of Representatives. (e) Appointment; Initial Meeting.--(1) Members of the Commission shall be appointed not later than 45 days after the date of the enactment of this Act. (2) The Commission shall hold its initial meeting on the date that is 60 days after the date of the enactment of this Act. (f) Meetings; Quorum; Vacancies.--(1) After its initial meeting, the Commission shall meet upon the call of the co- chairs of the Commission. (2) Six members of the Commission shall constitute a quorum for purposes of conducting business, except that two members of the Commission shall constitute a quorum for purposes of receiving testimony. (3) Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner in which the original appointment was made. (4) If vacancies in the Commission occur on any day after 45 days after the date of the enactment of this Act, a quorum shall consist of a majority of the members of the Commission as of such day. (g) Actions of Commission.--(1) The Commission shall act by resolution agreed to by a majority of the members of the Commission voting and present. (2) The Commission may establish panels composed of less than the full membership of the Commission for purposes ofcarrying out the duties of the Commission under this title. The actions of any such panel shall be subject to the review and control of the Commission. Any findings and determinations made by such a panel shall not be considered the findings and determinations of the Commission unless approved by the Commission. (3) Any member, agent, or staff of the Commission may, if authorized by the co-chairs of the Commission, take any action which the Commission is authorized to take pursuant to this title. (h) Duties.--The duties of the Commission shall be-- (1) to conduct, until not later than the date on which the Commission submits the report under section 1007(a), the review described in subsection (i); and (2) to submit to the congressional intelligence committees, the Director of Central Intelligence, and the Secretary of Defense a final report on the results of the review. (i) Review.--The Commission shall review the status of research and development programs and activities within the intelligence community, including-- (1) an assessment of the advisability of modifying the scope of research and development for purposes of such programs and activities; (2) a review of the particular individual research and development activities under such programs; (3) an evaluation of the current allocation of resources for research and development, including whether the allocation of such resources for that purpose should be modified; (4) an identification of the scientific and technological fields judged to be of most importance to the intelligence community; (5) an evaluation of the relationship between the research and development programs and activities of the intelligence community and the research and development programs and activities of other departments and agencies of the Federal Government; and (6) an evaluation of the relationship between the research and development programs and activities of the intelligence community and the research and development programs and activities of the private sector. SEC. 1003. POWERS OF COMMISSION. (a) In General.--(1) The Commission or, on the authorization of the Commission, any subcommittee or member thereof, may, for the purpose of carrying out the provisions of this title-- (A) hold such hearings and sit and act at such times and places, take such testimony, receive such evidence, and administer such oaths; and (B) require, by subpoena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, and documents, as the Commission or such designated subcommittee or designated member considers necessary. (2) Subpoenas may be issued under subparagraph (1)(B) under the signature of the co-chairs of the Commission, and may be served by any person designated by such co-chairs. (3) The provisions of sections 102 through 104 of the Revised Statutes of the United States (2 U.S.C. 192-194) shall apply in the case of any failure of a witness to comply with any subpoena or to testify when summoned under authority of this section. (b) Contracting.--The Commission may, to such extent and in such amounts as are provided in advance in appropriation Acts, enter into contracts to enable the Commission to discharge its duties under this title. (c) Information From Federal Agencies.--The Commission may secure directly from any executive department, agency, bureau, board, commission, office, independent establishment, or instrumentality of the Government information, suggestions, estimates, and statistics for the purposes of this title. Each such department, agency, bureau, board, commission, office, establishment, or instrumentality shall, to the extent authorized by law, furnish such information, suggestions, estimates, and statistics directly to the Commission, upon request of the co-chairs of the Commission. The Commission shall handle and protect all classified information provided to it under this section in accordance with applicable statutes and regulations. (d) Assistance From Federal Agencies.--(1) The Director of Central Intelligence shall provide to the Commission, on a nonreimbursable basis, such administrative services, funds, staff, facilities, and other support services as are necessary for the performance of the Commission's duties under this title. (2) The Secretary of Defense may provide the Commission, on a nonreimbursable basis, with such administrative services, staff, and other support services as the Commission may request. (3) In addition to the assistance set forth in paragraphs (1) and (2), other departments and agencies of the United States may provide the Commission such services, funds, facilities, staff, and other support as such departments and agencies consider advisable and as may be authorized by law. (4) The Commission shall receive the full and timely cooperation of any official, department, or agency of the United States Government whose assistance is necessary for the fulfillment of the duties of the Commission under this title, including the provision of full and current briefings and analyses. (e) Prohibition on Withholding Information.--No department or agency of the Government may withhold information from the Commission on the grounds that providing the information to the Commission would constitute the unauthorized disclosure of classified information or information relating to intelligence sources or methods. (f) Postal Services.--The Commission may use the United States mails in the same manner and under the same conditions as the departments and agencies of the United States. (g) Gifts.--The Commission may accept, use, and dispose of gifts or donations of services or property in carrying out its duties under this title. SEC. 1004. STAFF OF COMMISSION. (a) In General.--(1) The co-chairs of the Commission, in accordance with rules agreed upon by the Commission, shall appoint and fix the compensation of a staff director and such other personnel as may be necessary to enable the Commission to carry out its duties, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that no rate of pay fixed under this subsection may exceed the equivalent of that payable to a person occupying a position at level V of the Executive Schedule under section 5316 of such title. (2) Any Federal Government employee may be detailed to the Commission without reimbursement from the Commission, and such detailee shall retain the rights, status, and privileges of his or her regular employment without interruption. (3) All staff of the Commission shall possess a security clearance in accordance with applicable laws and regulations concerning the handling of classified information. (b) Consultant Services.--(1) The Commission may procure the services of experts and consultants in accordance with section 3109 of title 5, United States Code, but at rates not to exceed the daily rate paid a person occupying a position at level IV of the Executive Schedule under section 5315 of such title. (2) All experts and consultants employed by the Commission shall possess a security clearance in accordance with applicable laws and regulations concerning the handling of classified information. SEC. 1005. COMPENSATION AND TRAVEL EXPENSES. (a) Compensation.--(1) Except as provided in paragraph (2), each member of the Commission may be compensated at not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day during which that member is engaged in the actual performance of the duties of the Commission under this title. (2) Members of the Commission who are officers or employees of the United States or Members of Congress shall receive no additional pay by reason of their service on the Commission. (b) Travel Expenses.--While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission may be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5, United States Code. SEC. 1006. TREATMENT OF INFORMATION RELATING TO NATIONAL SECURITY. (a) In General.--(1) The Director of Central Intelligence shall assume responsibility for the handling and disposition of any information related to the national security of the United States that is received, considered, or used by the Commission under this title. (2) Any information related to the national security of the United States that is provided to the Commission by a congressional intelligence committee may not be further provided or released without the approval of the chairman of such committee. (b) Access After Termination of Commission.-- Notwithstanding any other provision of law, after the termination of the Commission under section 1007, only the Members and designated staff of the congressional intelligence committees, the Director of Central Intelligence (and the designees of the Director), and such other officials of the executive branch as the President may designate shall have access to information related to the national security of the United States that is received, considered, or used by the Commission. SEC. 1007. FINAL REPORT; TERMINATION. (a) Final Report.--Not later than September 1, 2003, the Commission shall submit to the congressional intelligence committees, the Director of Central Intelligence, and the Secretary of Defense a final report as required by section 1002(h)(2). (b) Termination.--(1) The Commission, and all the authorities of this title, shall terminate at the end of the 120-day period beginning on the date on which the final report under subsection (a) is transmitted to the congressional intelligence committees. (2) The Commission may use the 120-day period referred to in paragraph (1) for the purposes of concluding its activities, including providing testimony to Congress concerning the final report referred to in that paragraph and disseminating the report. SEC. 1008. ASSESSMENTS OF FINAL REPORT. Not later than 60 days after receipt of the final report under section 1007(a), the Director of Central Intelligence and the Secretary of Defense shall each submit to the congressional intelligence committees an assessment by the Director or the Secretary, as the case may be, of the final report. Each assessment shall include such comments on the findings and recommendations contained in the final report as the Director or Secretary, as the case may be, considers appropriate. SEC. 1009. INAPPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS. (a) Federal Advisory Committee Act.--The provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the activities of the Commission under this title. (b) Freedom of Information Act.--The provisions of section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), shall not apply to the activities, records, and proceedings of the Commission under this title. SEC. 1010. FUNDING. (a) Transfer From the Community Management Account.--Of the amounts authorized to be appropriated by this Act for the Intelligence Technology Innovation Center of the Community Management Account, the Deputy Director of Central Intelligence for Community Management shall transfer to the Director of Central Intelligence $2,000,000 for purposes of the activities of the Commission under this title. (b) Availability in General.--The Director of Central Intelligence shall make available to the Commission, from the amount transferred to the Director under subsection (a), such amounts as the Commission may require for purposes of the activities of the Commission under this title. (c) Duration of Availability.--Amounts made available to the Commission under subsection (b) shall remain available until expended. SEC. 1011. DEFINITIONS. In this title: (1) Congressional intelligence committees.--The term ``congressional intelligence committees'' means-- (A) the Select Committee on Intelligence of the Senate; and (B) the Permanent Select Committee on Intelligence of the House of Representatives. (2) Intelligence community.--The term ``intelligence community'' has the meaning given that term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)). And the Senate agree to the same. From the Permanent Select Committee on Intelligence, for consideration of the House bill and the Senate amendment, and modifications committed to conference: Porter J. Goss, Doug Bereuter, Michael N. Castle, Sherwood Boehlert, Jim Gibbons, Randy ``Duke'' Cunningham, Pete Hoekstra, Richard Burr, Saxby Chambliss, Terry Everett, Nancy Pelosi, Sanford D. Bishop, Jr., Jane Harman, Tim Roemer, Silvestre Reyes, Leonard L. Boswell, Collin C. Peterson, From the Committee on Armed Services, for consideration of defense tactical intelligence and related activities: Robert Stump, Duncan Hunter, Managers on the Part of the House. Bob Graham, Jay Rockefeller, Dianne Feinstein, Ron Wyden, Dick Durbin, John Edwards, Richard Shelby, Jon Kyl, Mike DeWine, Fred Thompson, Dick Lugar, Managers on the Part of the Senate. JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 4628), to authorize appropriations for fiscal year 2003 for intelligence and intelligence-related activities of the United States Government, the Community Management Account, and the Central Intelligence Agency Retirement and Disability System, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report: The Senate amendment struck all of the House bill after the enacting clause and inserted a substitute text. The House recedes from its disagreement to the amendment of the Senate with an amendment that is a substitute for the House bill and the Senate amendment. The differences between the House bill, the Senate amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting and clarifying changes. The Nation's Intelligence Capabilities--A New Perspective The conferees note that, in the wake of the September 11, 2001 terrorist attacks, the fiscal year 2003 budget submitted by the President includes the most substantial increase for programs funded in the National Foreign Intelligence Program in history. This authorization bill supports that investment by focusing on authorizations that enhance programs and information sharing across the various Intelligence Community (IC) agencies. Further, the President's funding increase appears to respond to congressional exhortations to develop a long-term funding program to correct serious IC deficiencies that have developed over the past decade. The conferees recognize that these deficiencies existed prior to September 11 and, indeed, the intelligence committees have been consistently highlighting these shortfalls for the past eight years. Put simply, although the end of the Cold War warranted a reordering of national priorities, the steady decline in intelligence funding since the mid-1990s left the nation with a diminished ability to address emerging threats--such as global terrorism-- and the technical challenges of the 21st Century. Further, the IC's lack of a corporate approach to addressing enduring intelligence problems helped to create a culture that hindered data collection (especially human intelligence collection), data sharing, and collaborative analysis. In this budget, the conferees seek to highlight four priority areas that must receive significant, sustained attention beginning immediately if intelligence is to fulfill its role in our national security strategy. Those are: (1) improving information sharing and all-source analysis; (2) improving IC professional training with a major emphasis on developing language skills; (3) ensuring national imagery collection program viability and effectiveness; and (4) correcting enduring systemic problems, deficiencies in human intelligence, and rebuilding a robust research and development program. The conferees' top priority last year was the revitalization of the NSA. Although this continues to be one of the conferees' priority concerns, the focus this year must be on information sharing and cross-community analysis. The conferees note that the individual intelligence agencies and, moreover, their extremely talented and dedicated people, labor continuously to provide the absolute best intelligence products possible in defense of the nation. These efforts are, however, generally conducted in isolation from one another, and, most disturbingly, existing rules and procedures often restrict information from the community's depth and breadth of analytic talent. Therefore, those individual efforts can usually only piece together fragments of the overall intelligence puzzle. What is critical in the post-9/11 era is having a community that is, to the maximum extent possible, devoid of information sharing restrictions and one that fosters a greater culture focused on collaborative analysis. The conferees have included detailed language on the need for the IC to breakdown information sharing barriers and the need to cease the practice of allowing agencies to routinely restrict ``their data'' from other agencies, including law enforcement. In order to maximize the IC's analytic effectiveness and output further, we must ensure that the dedicated professionals of the IC are properly trained and provided the skills necessary for the tasks that are required to fight the global war on terrorism and other emerging threats. For a number of years, the House and Senate Intelligence Committees, separately and jointly, have stated specific concerns about the dearth of language skills throughout the IC. The lack of depth in the so- called `low density' languages was acutely experienced during operations in Afghanistan. The conferees believe this is unacceptable and have put a great deal of emphasis in training efforts, particularly on foreign language training. With respect to the nation's imagery architecture, the conferees are very concerned about the viability and effectiveness of a future overhead architecture, given the apparent lack of a comprehensive architectural plan for the overhead system of systems, specifically in the area of imagery. For example, the conferees believe the administration is facing a major challenge in addressing technical and funding problems with the Future Imagery Architecture (FIA) program that could force untenable trades between critical future capabilities and legacy systems. In this conference report, the conferees have addressed the known FIA problems as well as the need to develop imagery alternatives if developmental problems exist or persist. The conferees note, however, a continuing pattern by which many individual programs have been justified and provided resources with little or no regard to the entire set of IC collection capabilities, including space-based and airborne. The conferees believe that, althoughindividual systems may have specific merit, the real measure of merit is in what the overall collective mix brings to bear against the range of threats to U.S. national security. Moreover, the ability to fund all legacy, developmental, and desired systems has a finite limit. Therefore, there is a critical need to review each program in the context of the others, so that viable trades can be made based on substance, and long-term funding of healthy programs can be provided. Finally, the conferees have focused their attention for a number of years on a number of enduring IC challenges. Once again, the Conferees have addressed in this bill such issues as the need to improve NSA acquisition efforts, the need to improve the depth and breadth of HUMINT, and improving research and development (R&D). With respect to the NSA, the conferees are pleased with the Director's attempts to baseline current capabilities so that future needs can be properly identified and resulting acquisition decisions made. The conferees have provided incentives to complete these later two efforts. In terms of improving HUMINT, the conferees have focused on improving training, providing technical resources to operations, and properly funding analytic efforts. All of these capabilities are supported by R&D efforts. Therefore, the conferees have supported the administration's increases to agencies' basic R&D programs. The conferees note that this funding support is based on the perspective that the IC must continue to renew itself of the ever-changing world. The new perspective on national security is that intelligence is the first line of defense against an illusive and unstructured threat that uses asymmetric means to harm America. It is from that perspective that the conferees have made the decision contained herein. TITLE I--INTELLIGENCE ACTIVITIES Sec. 101. Authorization of appropriations Section 101 of the conference report lists the departments, agencies, and other elements of the United States Government for whose intelligence and intelligence-related activities the Act authorizes appropriations for fiscal year 2003. Sec. 102. Classified schedule of authorizations Section 102 of the conference report makes clear that the details of the amounts authorized to be appropriated for intelligence and intelligence-related activities and applicable personnel ceilings covered under this title for fiscal year 2003 are contained in a classified Schedule of Authorizations. The classified Schedule of Authorizations is incorporated into the Act by this section. The Schedule of Authorizations shall be made available to the Committees on Appropriations of the Senate and House of Representatives and to the President. The classified annex provides details of the Schedule. Section 102 is identical to section 102 of the House bill. Sec. 103. Personnel ceiling adjustments Section 103 of the conference report authorizes the Director of Central Intelligence, with the approval of the Director of the Office of Management and Budget, in fiscal year 2003 to authorize employment of civilian personnel in excess of the personnel ceilings applicable to the components of the Intelligence Community under section 102 by an amount not to exceed two percent of the total of the ceilings applicable under section 102. The Director of Central Intelligence may exercise this authority only if necessary to the performance of important intelligence functions. Any exercise of this authority must be reported to the intelligence committees of the Congress. The managers emphasize that the authority conferred by section 103 is not intended to permit wholesale increase in personnel strength in any intelligence component. Rather, the section provides the Director of Central Intelligence with flexibility to adjust personnel levels temporarily for contingencies and for overages caused by an imbalance between hiring new employees and attrition of current employees. The managers do not expect the Director of Central Intelligence to allow heads of intelligence components to plan to exceed levels set in the Schedule of Authorizations except for the satisfaction of clearly identified hiring needs that are consistent with the authorization of personnel strengths in this bill. In no case is this authority to be used to provide for positions denied by this bill. Section 103 is identical to section 103 of the House bill and section 103 of the Senate amendment. Sec. 104. Intelligence Community Management Account Section 104 of the conference report authorizes appropriations for the Intelligence Community Management Account (CMA) of the Director of Central Intelligence (DCI) and sets the personnel end-strength for the Intelligence Community management staff for fiscal year 2003. Subsection (a) authorizes appropriations of $158,254,000 for fiscal year 2003 for the activities of the CMA of the DCI. Subsection (b) authorizes 322 full-time personnel for the Intelligence Community Management Staff for fiscal year 2003 and provides that such personnel may be permanent employees of the Staff or detailed from various elements of the United States Government. Subsection (c) authorizes additional appropriations and personnel for the CMA as specified in the classified Schedule of Authorizations and permits these additional amounts to remain available through September 30, 2004. Subsection (d) requires that, except as provided in Section 113 of the National Security Act of 1947, personnel from another element of the United States Government be detailed to an element of the CMA on a reimbursable basis, or for temporary situations of less than one year on a non- reimbursable basis. Subsection (e) authorizes $34,100,000 of the amount authorized in subsection (a) to be made available for the National Drug Intelligence Center (NDIC). Subsection (e) requires the DCI to transfer these funds to the Department of Justice to be used for NDIC activities under the authority of the Attorney General and subject to section 103(d)(1) of the National Security Act. Subsection (e) is similar to subsection (e) of the House bill. Sec. 105. Authorization of emergency supplemental appropriations for fiscal year 2002 Section 105 is identical to Section 105 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 106. Additional authorizations of appropriations for intelligence for the war on terrorism Section 106 is identical to Section 106 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 107. Specific authorization of funds for intelligence or intelligence-related activities for which fiscal year 2003 appropriations exceed amounts authorized Section 107 authorizes, solely for the purposes of reprogramming under Section 504(a)(3) of the National Security Act of 1947 (50 U.S.C. 414(a)(3)) those funds appropriated for an intelligence or intelligence-related activity in fiscal year 2003 in excess of the amount specified for such activity in the classified Schedule of Authorizations to accompany this conference report. Sec. 108. Incorporation of reporting requirements Section 108 is similar to Section 105 of the Senate amendment. The House bill had no similar provision. Section 107 incorporates into the Act each requirement to submit a report contained in the joint explanatory statement to accompany the conference report or in the classified annex to the Act. Sec. 109. Preparation and submittal of reports, reviews, studies, and plans relating to intelligence activities of Department of Defense or Department of Energy Section 109 is identical to Section 106 of the Senate amendment. The House bill had no similar provision. The House recedes. TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM Sec. 201. Authorization of appropriations Section 201 authorizes appropriations of $225,500,000 for the Central Intelligence Agency Retirement and Disability Fund. TITLE III--GENERAL PROVISIONS Subtitle A--Intelligence Community Sec. 301. Increase in employee compensation and benefits authorized by law Section 301 is identical to Section 301 of the Senate amendment and Section 301 of the House bill. Sec. 302. Restriction of conduct of intelligence activities Section 302 is identical to Section 302 of the Senate amendment and Section 302 of the House bill. Sec. 303. Sense of Congress on Intelligence Community contracting Section 303 is identical to Section 303 of the Senate amendment. The House bill had no similar provision. The Senate recedes. Subtitle B--Intelligence Sec. 311. Specificity of National Foreign Intelligence Program budget amounts for counterterrorism, counterproliferation, counternarcotices, and counterintelligence Section 311 is identical to section 304 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 312. Prohibition on compliance with request for information submitted by foreign governments Section 312 is identical to Section 307 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 313. National Virtual Translation Center Section 313 is identical to Section 311 of the Senate amendment. The House bill had no similar provision. The House recedes. Subtitle C--Personnel Sec. 321. Standards and qualifications for the performance of intelligence activities Section 321 is similar to Section 308 of the Senate amendment. The House bill had no similar provisions. The House recedes. Sec. 322. Modification of accepted agency voluntary leave transfer authority Section 322 is similar of Section 305 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 323. Sense of Congress on diversity in the workforce of intelligence community agencies Section 323 is identical of Section 312 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 324. Annual report on hiring and retention of minority employees in the intelligence community Section 324 is identical to Section 313 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 325. Report on establishment of a civilian linguist reserve corps Section 325 is identical 311 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Subtitle D--Education Sec. 331. Scholarships and work study for pursuit of graduate degrees in science and technology Section 331 is identical to Section 310 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 332. Cooperative relationship between the National Security Education Program and the Foreign Language Center of the Defense Language Institute Section 332 is identical to Section 308 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 333. Establishment of a national flagship language initiative within the National Security Education Program Section 333 includes Section 309 of the House bill. Section 309 of the Senate amendment also created a national foreign language initiative. The Senate recedes. Sec. 334. Report on the National Security Education Program Section 334 is similar to the reporting requirement of Section 309 of the Senate amendment. Section 334 requires the Secretary of Defense to submit a report in 180 days after enactment of the program of scholarship, fellowships, and grants under the David L. Boren National Security Education Act of 1991, including an assessment of the effectiveness of the program in meeting its goals and its administrative costs, and the advisability of converting funding of the program from funding through the National Security Education Trust Fund to funding through appropriations. Subtitle E--Terrorism Sec. 341. Foreign Terrorist Asset Tracking Center Section 341 is identical to Section 312 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 342. Semiannual Report on Financial Intelligence on Terrorist Assets (FITA) Section 342 is identical to Section 304 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 343. Terrorist Identification Classification System Section 343 is identical to Section 313 of the Senate amendment. The House bill had no similar provision. The House recedes. Subtitle F--Other Matters Sec. 351. Additional one-year suspension of reorganization of Diplomatic Telecommunications Service Program Office Section 351 is identical to Section 306 of the House bill and similar to Section 316 of the Senate amendment. The Senate recedes. Sec. 352. Standardized transliteration of names into the roman alphabet Section 352 is similar to Section 307 of the Senate amendment. The House bill had no similar provision. The House recedes with modifications. Sec. 353. Definition of congressional intelligence committees in National Security Act of 1947 Section 353 is similar to Section 303 of the Senate amendment. The House bill had no similar provision. The House recedes with modifications. TITLE IV--CENTRAL INTELLIGENCE AGENCY Sec. 401. Two-year extension of Central Intelligence Agency Voluntary Separation Pay Act Section 401 is identical to Section 401 of the House bill and Section 315 of the Senate amendment. Sec. 402. Implementation of compensation reform plan Section 402 is similar to Section 402 of the House bill. The Senate amendment had no similar provision. Section 402 delays implementation of the Central Intelligence Agency's proposed compensation reform plan until February 1, 2004 or the submission of a report on a compensation pilot project, whichever is later. The Director of Central Intelligence shall conduct the pilot project to assess the efficacy and fairness of a revised personnel compensation plan, and report to the congressional intelligence committees 45 days after completion of the pilot project. Section 402 includes a sense of the Congress that an employee personnel evaluation mechanism with evaluation training for managers and employees of the CIA and the National Security Agency should be phased in first, and then followed by the introduction of a new compensation plan. TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES Sec. 501. Use of funds for counterdrug and counterterrorism activities for Colombia Section 501 is similar to Section 501 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 502. Protection of operational files of the National Reconnaissance Office Section 502 is identical to Section 502 of the House bill. The Senate amendment had no similar provision. The Senate recedes. Sec. 502. Eligibility of employees in intelligence senior level positions for Presidential rank awards. Section 503 is identical to Section 503 of the House bill. The Senate amendment had no similar provision. The Senate recedes. TITLE VI--NATIONAL COMMISSION ON TERRORIST ATTACKS Title VI is substantially similar to Title VI of the House bill as well as language found in Senate amendment 4694 to H.R. 5005, a bill to establish the Department of Homeland Security TITLE VII--INFORMATION SHARING Title VII is similar to Title VII of the House bill and H.R. 4598, the Homeland Security Information Sharing Act, which passed the House on June 26, 2002 in a 422-2 vote. Title VII is also similar to sections 891-894 of H.R. 5710, establishing the Department of Homeland Security, which passed the House on November 13, 2002. Section 706 has been add by the conferees to coordinate the different versions of the Homeland Information Sharing Act, which are found in this bill and in H.R. 5710. The Senate amendment had no similar provision. The Senate recedes. TITLE VIII--REPORTING REQUIREMENTS Subtitle A--Overdue Reports Sec. 801. Deadline for submittal of various overdue reports Section 801 is similar to Section 310 of the House bill. Section 801 reduces by one-third the amounts available to be obligated or expended by the Office of the Director of Central Intelligence if certain reports are not submitted to the Congress 180 days after enactment. The reports referred to in this section are reports mandated by law for which the DCI has sole or primary responsibility to prepare or coordinate and submit to Congress, which, as of the date of enactment, have not been submitted to Congress if mandated to be submitted prior to the date of enactment. The fence will not be imposed if the DCI certifies in writing to the intelligence committees that all overdue reports specified in Section 801 are completed. The Senate amendment had no similar provision. The Senate recedes. Subtitle B--Submittal of Reports to Intelligence Committees Sec. 811. Dates for submittal of various annual and semi-annual reports to the congressional intelligence committees Section 811 is similar to Section 401 of the Senate amendment. The House bill had no similar provision. The House recedes with modifications. Subtitle C--Recurring Annual Reports Sec. 821. Annual report on threat of attack on the United States using weapons of mass destruction Section 821 is identical to Section 412 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 822. Annual report on convert leases Section 822 is identical to Section 413 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 823. Annual report on improvement of financial statements of certain elements of the Intelligence Community for auditing purposes Section 823 is identical to Section 414 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 824. Annual report on activities of Federal Bureau of Investigation personnel outside the United States Section 824 is identical to Section 415 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 825. Annual reports of Inspectors General of the Intelligence Community on proposed resources and activities of their offices Section 825 is identical to Section 416 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 826. Annual report on counterdrug intelligence matters Section 826 is identical to Section 417 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 827. Annual report on foreign companies involved in the proliferation of weapons of mass destruction that raise funds in the United States capital markets Section 827 is identical to Section 314 of the Senate amendment. The House bill had no similar provision. The House recedes. Subtitle D--Other Reports Sec. 831. Report on effect of country-release restrictions on allied intelligence-sharing relationships Section 831 is identical to Section 431 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 832. Evaluation of policies and procedures of Department of State on protection of classified information at department headquarters Section 832 is identical to Section 432 of the Senate amendment. The House bill had no similar provision. The House recedes. Subtitle E--Repeal of Certain Report Requirements Sec. 841. Repeal of certain report requirements Section 841 is substantially similar to Section 441 of the Senate amendment, although the conferees have agreed to repeal certain additional Intelligence Community reporting requirements. The House bill had no similar provision. The House recedes with modifications. TITLE IX--COUNTERINTELLIGENCE ACTIVITIES Sec. 901. Short title; purpose Section 901 is identical to Section 501 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 902. National counterintelligence executive Section 902 is identical to Section 502 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 903. National Counterintelligence Policy Board Section 903 is identical to Section 503 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 904. Office of the National Counterintelligence Executive Section 904 is similar to Section 504 of the Senate amendment. The House bill had no similar provision. The conferees agree to place the Office of the National Counterintelligence Executive within the Office of the Director of Central Intelligence. Further, the provision makes clear that nothing in this section shall be construed as affecting the authority of the Director of Central Intelligence, the Secretary of Defense, the Secretary of State, the Attorney General, or the Director of the FBI as provided or specified under the National Security Act of 1947 or under other provisions of law. The House recedes with modifications. TITLE X--NATIONAL COMMISSION FOR REVIEW OF RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY Sec. 1001. Findings Section 1001 is identical to Section 601 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 1002. National Commission for review of research and development programs of the United States Intelligence Community Section 1002 is identical to Section 602 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 1003. Powers of Commission Section 1003 is identical to Section 603 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 1004. Staff of Commission Section 1004 is identical to Section 604 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 1005. Compensation and travel expenses Section 1005 is identical to Section 605 of the Senate amendment. The House bill had no similar provision. The House recedes. Sec. 1006. Treatment of information relating to national security Section 1006 is identical to Section 606 of the Senate amendment. The House bill has no similar provision. The House recedes. Sec. 1007. Final report; termination Section 1007 is identical to Section 607 of the Senate amendment. The House bill has no similar provision. The House recedes. Sec. 1008. Assessments of final report Section 1008 is identical to Section 608 of the Senate amendment. The House bill has no similar provision. The House recedes. Sec. 1009. Inapplicability of certain administrative provisions Section 1009 is identical to Section 609 of the Senate amendment. The House bill has no similar provision. The House recedes. Sec. 1010. Funding Section 1010 is identical to Section 610 of the Senate amendment. The House bill has no similar provision. The House recedes. Sec. 1011. Definitions Section 1011 is identical to Section 611 of the Senate amendment. The House bill had no similar provision. The House recedes. ITEMS NOT INCLUDED Section 305 of the Senate amendment contained a provision to clarify Section 504 of the National Security Act of 1947 with respect to the reprogramming of funds from one intelligence activity to another. The House bill had no similar provisions. The Senate recedes. Section 306 of the Senate amendment required disclosure to Congress of information regarding pending criminal investigations and prosecutions that is currently subject to statutory and other disclosure prohibitions, such as grand jury matters under Rule 6(e) of the Federal Rules of Criminal Procedure, communications intercepted under Title III domestic wiretap provisions, and other sensitive law enforcement information. The House bill had no similar provisions. The Senate recedes. From the Permanent Select Committee on Intelligence, for consideration of the House bill and the Senate amendment, and modifications committed to conference: Porter J. Goss, Doug Bereuter, Michael N. Castle, Sherwood Boehlert, Jim Gibbons, Randy ``Duke'' Cunningham, Pete Hoekstra, Richard Burr, Saxby Chambliss, Terry Everett, Nancy Pelosi, Sanford D. Bishop, Jr., Jane Harman, Tim Roemer, Silvestre Reyes, Leonard L. Boswell, Collin C. Peterson, From the Committee on Armed Services, for consideration of defense tactical intelligence and related activities: Robert Stump, Duncan Hunter, Managers on the Part of the House. Bob Graham, Jay Rockefeller, Dianne Feinstein, Ron Wyden, Dick Durbin, John Edwards, Richard Shelby, Jon Kyl, Mike DeWine, Fred Thompson, Dick Lugar, Managers on the Part of the Senate.