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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.