This is the second report of an extraordinary task force that came together to consider how could be created an information network that prevents terrorism while preserving civil liberties. The first report of the task force stressed the importance of creating a decentralized network of information-sharing and analysis to address the challenge of homeland security. The authors emphasized the need to form that network around presidential guidelines shaped by public debate on how to both achieve security and maintain liberty. They also set forth principles for capitalizing on the society's strengths in information technology. In this second report the authors reaffirm those principles and provide greater detail on how to implement their approach.