Intelligence Authorization Act for Fiscal Year 2004

(Sec. 102) Specifies that the amounts authorized and the authorized personnel ceilings as of September 30, 2004, for such activities are those specified in the classified Schedule of Authorizations, which shall be made available to the Senate and House Appropriations Committees and the President.

(Sec. 103) Allows the Director of Central Intelligence (DCI), with the approval of the Director of the Office of Management and Budget (OMB), to authorize employment of civilian personnel in excess of the number authorized for FY 2004 (by not more than two percent) when necessary to the performance of important intelligence functions. Requires notification of the congressional intelligence committees.

(Sec. 104) Authorizes appropriations for the Intelligence Community Management Account for FY 2004, for full-time personnel for elements within such Account, and for certain classified personnel. Earmarks a specified amount of such funds for the National Drug Intelligence Center.

(Sec. 105) Amends the National Security Act of 1947 to establish within the Department of the Treasury a Bureau of Intelligence and Enforcement, headed by an Assistant Secretary for Intelligence and Enforcement. Requires consultation with the DCI in the appointment of the Assistant Secretary.

Title II: Central Intelligence Agency Retirement and Disability System - (Sec. 201) Authorizes appropriations for FY 2004 for the Central Intelligence Agency Retirement and Disability Fund.

Title III: General Provisions - Subtitle A: Recurring General Provisions - (Sec. 301) Permits appropriations authorized by this Act for salary, pay, retirement, and other benefits for Federal employees to be increased by such additional or supplemental amounts as may be necessary for increases in such compensation or benefits authorized by law.

(Sec. 302) Specifies that 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 permitted by the Constitution or laws of the United States.

Subtitle B: Intelligence - (Sec. 311) Amends the Intelligence Authorization Act for Fiscal Year 1995 to increase certain thresholds for congressional notification and/or approval for projects to construct or improve intelligence community (IC) facilities. Authorizes the DCI to undertake an emergency construction project seven (currently 21) days after congressional notification. Authorizes the DCI and the Secretary of Defense (Secretary) to undertake an emergency project on the same date as congressional notification when they jointly determine that an emergency relating to the national security or the protection of health, safety, or environmental quality exists and that delay would irreparably harm those interests.

Subtitle C: Counterintelligence - (Sec. 321) Requires the DCI to establish and implement for all Federal agencies that handle classified information relating to U.S. national security an inspection process intended to assure that those agencies maintain effective operational security practices and programs directed against counterintelligence activities. Requires the Attorney General (AG), acting through the FBI Director, to establish an Office of Counterintelligence to investigate potential espionage activities within the FBI.

Requires the DCI to: (1) establish and implement an annual review of individuals included on distribution lists for access to classified information (with a "need to know" requirement); (2) certify annually to the intelligence committees that such review has been conducted; (3) establish and implement a process by which heads of IC elements direct that all employees who wish to be granted access to classified information submit financial disclosure forms; and (4) establish for all IC elements programs and procedures by which sensitive classified information relating to human intelligence is safeguarded against unauthorized disclosure by employees.

Directs the AG to establish policies and procedures to assist in the consideration of intelligence and national security equities in the development of charging documents and related pleadings in espionage prosecutions.

Subtitle D: Other Matters - (Sec. 331) Amends the Intelligence Authorization Act for Fiscal Year 2002 to continue suspension of the required reorganization of the Diplomatic Telecommunications Service Program Office (currently suspended through the end of FY 2003) until 60 days after notification of the appropriate congressional committees by the Secretary of State and the OMB Director that the operational framework for such Office has been terminated.

(Sec. 332) Makes it lawful to distribute explosive materials to qualified aliens, and for qualified aliens to ship, transport, or receive explosive materials, in furtherance of authorized military purposes. Defines a "qualified alien" as one who is: (1) lawfully present in the United States in cooperation with the DCI; or (2) a member of the North Atlantic Treaty Organization or other friendly foreign military force and is present under military orders for training or other authorized military purposes.

(Sec. 333) Amends the Immigration and Nationality Act to require consultation with the Secretary of Homeland Security during determination of the expedited naturalization of aliens who have contributed to U.S. national security or intelligence missions.

(Sec. 334) Amends the Right to Financial Privacy Act of 1978 to revise the definition of "financial institution" for purposes of provisions governing access to financial records for counterintelligence investigation purposes to include an institution any part of which is located in the United States.

(Sec. 335) Amends the Central Intelligence Agency Act of 1949 to require the DCI, before purchasing a product listed in the latest edition of the Federal Prison Industries (FPI) catalog, to conduct market research to determine whether the FPI product is comparable to products available from the private sector that best meet the CIA's needs in terms of price, quality, and time of delivery. Requires the DCI, upon a negative determination, to use competitive procedures for such procurement or to make an individual purchase under a multiple award contract. States that market research determinations shall not be subject to review. Prohibits a contractor or potential contractor of the CIA from being required to use FPI as a subcontractor or supplier for the performance of a contract. Prohibits the DCI from entering into any contract with FPI under which an inmate would have access to: (1) classified data; (2) geographic data regarding the location of certain telecommunications or utilities infrastructure; or (3) any personal or financial information about a private citizen without their prior consent.

(Sec. 336) Amends the Homeland Security Act of 2002 to authorize the Under Secretary for Information Analysis and Infrastructure Protection of DHS to conduct three-year pilot projects to improve the sharing with State and local officials of intelligence collected by the Federal Government. Requires appropriate training for such officials. Requires pilot project reports from the Under Secretary to Congress.

Authorizes such Under Secretary to carry out a three-year pilot program to make DHS intelligence information available to State and local officials through the use of tear-line intelligence reports (reports in which intelligence source and methods information is easily severable). Requires a program report to Congress. Authorizes appropriations.

Authorizes the DCI to establish a comprehensive program of orientation and training to qualified State and local officials in accessing and using available IC resources. Defines "qualified State and local officials" as those who: (1) have received appropriate security clearance; and (2) oversee or manage first responders or counterterrorism activities. Requires annual program reports from the DCI to Congress. Authorizes appropriations.

Requires the Director of the Terrorist Threat Integration Center to establish two advisory councils (one focusing on civil liberties issues and the other on State and local government information needs) to provide the DCI with advice and recommendations in carrying out the Center's functions.

(Sec. 337) Requires the DCI to carry out and report to Congress on a three-year pilot project to test and evaluate alternative, innovative methods to recruit and hire for the IC women and minorities with diverse ethnic and cultural backgrounds, skills, language proficiency, and expertise.

Requires a report from the DCI to Congress on a plan (to be entitled the "DCI Diversity Strategic Plan") on increasing diversity of IC officers and employees.

Subtitle E: Reports and Technical Amendments - (Sec. 341) Amends the Intelligence Authorization Act for Fiscal Year: (1) 2003 to extend through FY 2004 the deadline for a final report of the National Commission for the Review of the Research and Development Programs of the United States Intelligence Community; and (2) 1997 to require reports on the acquisition of technology relating to weapons of mass destruction and advanced conventional munitions and the disclosure of intelligence information to the United Nations annually (currently, semiannually).

(Sec. 343) Makes technical amendments with respect to various acts relating to intelligence matters.

(Sec. 344) Directs the DCI to report to the intelligence and defense committees on intelligence lessons learned as a result of Operation Iraqi Freedom.

(Sec. 345) Amends the Intelligence Authorization Act for Fiscal Year 2003 to require the DCI's report on the status of the Terrorist Identification Classification System to include a certification on: (1) whether further consolidation or elimination of watch list databases in departments and agencies with access to the System would contribute to System efficiency and effectiveness in identifying known or suspected international terrorists; and (2) the steps required to consolidate or eliminate such lists. Requires the DCI to establish an advisory council of experts in the fields of civil liberties and privacy issues to advise the DCI on such issues as they relate to System maintenance.

Title IV: Central Intelligence Agency - (Sec. 401) Deems CIA personnel designated as security personnel to be acting within the scope of their office or employment, and therefore under protection from tort liability claims against the United States, when taking reasonable action, including force, to: (1) protect an individual in their presence from a crime of violence; (2) provide immediate assistance to an individual who has suffered or is threatened with bodily harm; or (3) prevent the escape of an individual reasonably believed to have committed a crime of violence in their presence.

(Sec. 402) Amends the Central Intelligence Agency Act of 1949 to repeal a limitation on the use of funds in the Central Services Working Capital Fund.

Title V: Department of Defense Intelligence Matters - (Sec. 501) Amends the Intelligence Authorization Act for Fiscal Year 2003 to extend through FY 2005 the authority for the use of certain intelligence funds for counter-drug and counterterrorism activities for Colombia. Prohibits the participation of any U.S. military personnel or civilian employees or contractors in any combat operation in connection with such activities.

(Sec. 502) Authorizes the NSA Director to provide living quarters to an individual employed at NSA in a Student Educational Employment Program or a similar cooperative or summer education program of NSA that meets appropriate educational criteria.

(Sec. 503) Authorizes the Secretary to enter into personal services contracts if such services directly support the missions of a defense intelligence component or counterintelligence organization.

(Sec. 504) Amends the National Security Agency Act of 1959 to consider CIA personnel designated as special policemen as acting within the scope of their employment when taking reasonable action to: (1) protect an individual in their presence from a crime of violence; (2) provide immediate assistance to an individual who has suffered or is threatened with bodily harm; or (3) prevent the escape of an individual reasonably believed to have committed a crime of violence in their presence.

(Sec. 505) Directs the Secretary to: (1) carry out a program to incorporate the results of basic research on sensors into U.S. measurement and signatures intelligence systems; and (2) establish an advisory panel to assist in carrying out the program.