[Pages H14462-H14490]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CONFERENCE REPORT ON H.R. 2082, INTELLIGENCE AUTHORIZATION ACT FOR
FISCAL YEAR 2008

Mr. SKELTON submitted the following conference report and statement
on the bill (H.R. 2082) to authorize appropriations for fiscal year
2008 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:

Conference Report (H. Rept. 110-478)

The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
2082), to authorize appropriations for fiscal year 2008 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 2008''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Specific authorization of funds within the National
Intelligence Program for which fiscal year 2008
appropriations exceed amounts authorized.

TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.
Sec. 202. Technical modification to mandatory retirement provision of
the Central Intelligence Agency Retirement Act.

TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

Subtitle A--Personnel Matters

Sec. 301. Increase in employee compensation and benefits authorized by
law.
Sec. 302. Enhanced flexibility in nonreimbursable details to elements
of the intelligence community.
Sec. 303. Multi-level security clearances.
Sec. 304. Pay authority for critical positions.
Sec. 305. Delegation of authority for travel on common carriers for
intelligence collection personnel.
Sec. 306. Annual personnel level assessments for the intelligence
community.
Sec. 307. Comprehensive report on intelligence community contractors.
Sec. 308. Report on proposed pay for performance intelligence community
personnel management system.
Sec. 309. Report on plans to increase diversity within the intelligence
community.

Subtitle B--Acquisition Matters

Sec. 311. Vulnerability assessments of major systems.
Sec. 312. Business enterprise architecture and business system
modernization for the intelligence community.
Sec. 313. Reports on the acquisition of major systems.
Sec. 314. Excessive cost growth of major systems.

Subtitle C--Other Matters

Sec. 321. Restriction on conduct of intelligence activities.
Sec. 322. Clarification of definition of intelligence community under
the National Security Act of 1947.
Sec. 323. Modification of availability of funds for different
intelligence activities.
Sec. 324. Protection of certain national security information.
Sec. 325. Extension of authority to delete information about receipt
and disposition of foreign gifts and decorations.
Sec. 326. Report on compliance with the Detainee Treatment Act of 2005
and related provisions of the Military Commissions Act of
2006.
Sec. 327. Limitation on interrogation techniques.
Sec. 328. Limitation on use of funds.
Sec. 329. Incorporation of reporting requirements.
Sec. 330. Repeal of certain reporting requirements.

TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY

Subtitle A--Office of the Director of National Intelligence

Sec. 401. Clarification of limitation on colocation of the Office of
the Director of National Intelligence.
Sec. 402. Membership of the Director of National Intelligence on the
Transportation Security Oversight Board.
Sec. 403. Additional duties of the Director of Science and Technology.
Sec. 404. Leadership and location of certain offices and officials.
Sec. 405. Plan to implement recommendations of the data center energy
efficiency reports.
Sec. 406. Comprehensive listing of special access programs.
Sec. 407. Reports on the nuclear programs of Iran and North Korea.
Sec. 408. Requirements for accountability reviews by the Director of
National Intelligence.
Sec. 409. Modification of limitation on delegation by the Director of
National Intelligence of the protection of intelligence
sources and methods.
Sec. 410. Authorities for intelligence information sharing.
Sec. 411. Authorities of the Director of National Intelligence for
interagency funding.
Sec. 412. Title of Chief Information Officer of the Intelligence
Community.
Sec. 413. Inspector General of the Intelligence Community.
Sec. 414. Annual report on foreign language proficiency in the
intelligence community.
Sec. 415. Director of National Intelligence report on retirement
benefits for former employees of Air America.
Sec. 416. Space intelligence.
Sec. 417. Operational files in the Office of the Director of National
Intelligence.
Sec. 418. Inapplicability of Federal Advisory Committee Act to advisory
committees of the Office of the Director of National
Intelligence.
Sec. 419. Applicability of the Privacy Act to the Director of National
Intelligence and the Office of the Director of National
Intelligence.
Sec. 420. Repeal of certain authorities relating to the Office of the
National Counterintelligence Executive.

Subtitle B--Central Intelligence Agency

Sec. 431. Review of covert action programs by Inspector General of the
Central Intelligence Agency.
Sec. 432. Inapplicability to Director of the Central Intelligence
Agency of requirement for annual report on progress in
auditable financial statements.
Sec. 433. Additional functions and authorities for protective personnel
of the Central Intelligence Agency.
Sec. 434. Technical amendments relating to titles of certain Central
Intelligence Agency positions.
Sec. 435. Clarifying amendments relating to section 105 of the
Intelligence Authorization Act for Fiscal Year 2004.

Subtitle C--Defense Intelligence Components

Sec. 441. Enhancement of National Security Agency training program.
Sec. 442. Codification of authorities of National Security Agency
protective personnel.
Sec. 443. Inspector general matters.
Sec. 444. Confirmation of appointment of heads of certain components of
the intelligence community.
Sec. 445. Clarification of national security missions of National
Geospatial-Intelligence Agency for analysis and
dissemination of certain intelligence information.
Sec. 446. Security clearances in the National Geospatial-Intelligence
Agency.

Subtitle D--Other Elements

Sec. 451. Clarification of inclusion of Coast Guard and Drug
Enforcement Administration as elements of the
intelligence community.

TITLE V--OTHER MATTERS

Subtitle A--General Intelligence Matters

Sec. 501. Extension of National Commission for the Review of the
Research and Development Programs of the United States
Intelligence Community.
Sec. 502. Report on intelligence activities.
Sec. 503. Aerial reconnaissance platforms.

[[Page H14463]]

Subtitle B--Technical Amendments

Sec. 511. Technical amendments to title 10, United States Code, arising
from enactment of the Intelligence Reform and Terrorism
Prevention Act of 2004.
Sec. 512. Technical amendment to the Central Intelligence Agency Act of
1949.
Sec. 513. Technical amendments relating to the multiyear National
Intelligence Program.
Sec. 514. Technical clarification of certain references to Joint
Military Intelligence Program and Tactical Intelligence
and Related Activities.
Sec. 515. Technical amendments to the National Security Act of 1947.
Sec. 516. Technical amendments to the Intelligence Reform and Terrorism
Prevention Act of 2004.
Sec. 517. Technical amendments to the Executive Schedule.

SEC. 2. DEFINITIONS.

In this Act:
(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) Element of the intelligence community.--The term
``element of the intelligence community'' means an element of
the intelligence community listed in or designated under
section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).
(3) 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)).
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal
year 2008 for the conduct of the intelligence and
intelligence-related activities of the following elements of
the United States Government:
(1) The Office of the Director of National Intelligence.
(2) The Central Intelligence Agency.
(3) The Department of Defense.
(4) The Defense Intelligence Agency.
(5) The National Security Agency.
(6) The Department of the Army, the Department of the Navy,
and the Department of the Air Force.
(7) The Coast Guard.
(8) The Department of State.
(9) The Department of the Treasury.
(10) The Department of Energy.
(11) The Department of Justice.
(12) The Federal Bureau of Investigation.
(13) The Drug Enforcement Administration.
(14) The National Reconnaissance Office.
(15) The National Geospatial-Intelligence Agency.
(16) The Department of Homeland Security.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

(a) Specifications of Amounts and Personnel Levels.--The
amounts authorized to be appropriated under section 101 and,
subject to section 103, the authorized personnel ceilings as
of September 30, 2008, for the conduct of the intelligence
activities of the elements listed in paragraphs (1) through
(16) of section 101, are those specified in the classified
Schedule of Authorizations prepared to accompany the
conference report on the bill H.R. 2082 of the One Hundred
Tenth Congress.
(b) Availability of Classified Schedule of
Authorizations.--The classified Schedule of Authorizations
referred to in subsection (a) shall be made available to the
Committee on Appropriations of the Senate, the Committee on
Appropriations of the 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 Increases.--With the approval of the
Director of the Office of Management and Budget, the Director
of National Intelligence may authorize employment of civilian
personnel in excess of the number authorized for fiscal year
2008 by the classified Schedule of Authorizations referred to
in section 102(a) if the Director of National 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 3 percent of the number of
civilian personnel authorized under such Schedule for such
element.
(b) Transition to Full-Time Equivalency.--
(1) Treatment for fiscal year 2008.--For fiscal year 2008,
the Director of National Intelligence, in consultation with
the head of each element of the intelligence community, may
treat the personnel ceilings authorized under the classified
Schedule of Authorizations referred to in section 102(a) as
full-time equivalents.
(2) Consideration.--In exercising the authority described
in paragraph (1), the Director of National Intelligence may
consider the circumstances under which civilian employees are
employed and accounted for at each element of the
intelligence community in--
(A) a student program, trainee program, or similar program;
(B) reserve corps or equivalent status as a reemployed
annuitant or other employee;
(C) a joint duty rotational assignment; or
(D) other full-time or part-time status.
(3) Notification to congress.--Not later than 90 days after
the date of the enactment of this Act, the Director of
National Intelligence shall notify the congressional
intelligence committees in writing of--
(A) the policies for implementing the authorities described
in paragraphs (1) and (2); and
(B) the number of all civilian personnel employed by, or
anticipated to be employed by, each element of the
intelligence community during fiscal year 2008 accounted
for--
(i) by position;
(ii) by full-time equivalency; or
(iii) by any other method.
(4) Treatment for fiscal year 2009.--The Director of
National Intelligence shall express the personnel levels for
all civilian employees for each element of the intelligence
community in the congressional budget justifications
submitted for fiscal year 2009 as full-time equivalent
positions.
(c) Authority for Conversion of Activities Performed by
Contractors.--In addition to the authority in subsection (a),
upon a determination by the head of an element of the
intelligence community that activities currently being
performed by contractor employees should be performed by
government employees, the concurrence of the Director of
National Intelligence in such determination, and the approval
of the Director of the Office of Management and Budget, the
Director of National Intelligence may authorize for that
purpose employment of additional full-time equivalent
personnel in such element of the intelligence community equal
to the number that is--
(1) in the case of personnel of Office of the Director of
National Intelligence, not more than 5 percent of the number
of such personnel authorized for fiscal year 2008 by the
classified Schedule of Authorizations referred to in section
102(a); or
(2) except as provided in paragraph (1), not more than 10
percent of the number authorized for fiscal year 2008 by the
classified Schedule of Authorizations referred to in section
102(a).
(d) Notice to Congressional Intelligence Committees.--The
Director of National Intelligence shall notify the
congressional intelligence committees in writing at least 15
days prior to each exercise of an authority described in
subsection (a) or (c).

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 National Intelligence for fiscal
year 2008 the sum of $734,126,000. 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, 2009.
(b) Authorized Personnel Levels.--The elements within the
Intelligence Community Management Account of the Director of
National Intelligence are authorized 952 full-time or full-
time equivalent personnel as of September 30, 2008. Personnel
serving in such elements may be permanent employees of the
Office of the Director of National Intelligence or personnel
detailed from other elements of the United States Government.
(c) Construction of Authorities.--The authorities available
to the Director of National Intelligence under section 103
are also available to the Director for the adjustment of
personnel levels within the Intelligence Community Management
Account.
(d) 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
authorized to be appropriated for the Community Management
Account for fiscal year 2008 such additional amounts as are
specified in the classified Schedule of Authorizations
referred to in section 102(a). Such additional amounts for
advanced research and development shall remain available
until September 30, 2009.
(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,
2008, there are authorized such additional personnel for the
Community Management Account as of that date as are specified
in the classified Schedule of Authorizations referred to in
section 102(a).
(e) National Drug Intelligence Center.--
(1) In general.--Of the amount authorized to be
appropriated in subsection (a), $39,000,000 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, 2009, and funds provided for procurement
purposes shall remain available until September 30, 2010.
(2) Transfer of funds.--The Director of National
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 for purposes of
exercising police, subpoena, or law enforcement powers or
internal security functions.
(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. SPECIFIC AUTHORIZATION OF FUNDS WITHIN THE NATIONAL
INTELLIGENCE PROGRAM FOR WHICH FISCAL YEAR 2008
APPROPRIATIONS EXCEED AMOUNTS AUTHORIZED.

Funds appropriated for an intelligence or intelligence-
related activity within the National

[[Page H14464]]

Intelligence Program for fiscal year 2008 in excess of the
amount specified for such activity in the classified Schedule
of Authorizations referred to in section 102(a) 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)).
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 2008 the sum of $262,500,000.

SEC. 202. TECHNICAL MODIFICATION TO MANDATORY RETIREMENT
PROVISION OF THE CENTRAL INTELLIGENCE AGENCY
RETIREMENT ACT.

Subparagraph (A) of section 235(b)(1) of the Central
Intelligence Agency Retirement Act (50 U.S.C. 2055(b)(1)) is
amended by striking ``receiving compensation under the Senior
Intelligence Service pay schedule at the rate'' and inserting
``who is at the Senior Intelligence Service rank''.
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
Subtitle A--Personnel Matters

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. ENHANCED FLEXIBILITY IN NONREIMBURSABLE DETAILS TO
ELEMENTS OF THE INTELLIGENCE COMMUNITY.

Except as provided in section 113 of the National Security
Act of 1947 (50 U.S.C. 404h) and section 904(g)(2) of the
Counterintelligence Enhancement Act of 2002 (title IX of
Public Law 107-306; 50 U.S.C. 402c(g)(2)) and notwithstanding
any other provision of law, in any fiscal year after fiscal
year 2007 an officer or employee of the United States or
member of the Armed Forces may be detailed to the staff of an
element of the intelligence community funded through the
Community Management Account from another element of the
United States Government on a reimbursable or nonreimbursable
basis, as jointly agreed to by the Director of National
Intelligence and the head of the detailing element (or the
designees of such officials), for a period not to exceed 2
years.

SEC. 303. MULTI-LEVEL SECURITY CLEARANCES.

(a) In General.--Section 102A of the National Security Act
of 1947 (50 U.S.C. 403-1) is amended by adding at the end the
following new subsection:
``(s) Multi-Level Security Clearances.--The Director of
National Intelligence shall be responsible for ensuring that
the elements of the intelligence community adopt a multi-
level security clearance approach in order to enable the
intelligence community to make more effective and efficient
use of persons proficient in foreign languages or with
cultural, linguistic, or other subject matter expertise that
is critical to national security.''.
(b) Implementation.--The Director of National Intelligence
shall issue guidelines to the intelligence community on the
implementation of subsection (s) of section 102A of the
National Security Act of 1947, as added by subsection (a),
not later than 180 days after the date of the enactment of
this Act.

SEC. 304. PAY AUTHORITY FOR CRITICAL POSITIONS.

Section 102A of the National Security Act of 1947 (50
U.S.C. 403-1), as amended by section 303 of this Act, is
further amended by adding at the end the following new
subsection:
``(t) Pay Authority for Critical Positions.--(1)
Notwithstanding any pay limitation established under any
other provision of law applicable to employees in elements of
the intelligence community, the Director of National
Intelligence may, in consultation with the Director of the
Office of Personnel Management and the Director of the Office
of Management and Budget, grant authority to fix the rate of
basic pay for 1 or more positions within the intelligence
community at a rate in excess of any applicable limitation,
subject to the provisions of this subsection. The exercise of
authority so granted is at the discretion of the head of the
department or agency employing the individual in a position
covered by such authority, subject to the provisions of this
subsection and any conditions established by the Director of
National Intelligence when granting such authority.
``(2) Authority under this subsection may be granted or
exercised--
``(A) only with respect to a position which requires an
extremely high level of expertise and is critical to
successful accomplishment of an important mission; and
``(B) only to the extent necessary to recruit or retain an
individual exceptionally well qualified for the position.
``(3) A rate of basic pay may not be fixed under this
subsection at a rate greater than the rate payable for level
II of the Executive Schedule under section 5312 of title 5,
United States Code, except upon written approval of the
Director of National Intelligence or as otherwise authorized
by law.
``(4) A rate of basic pay may not be fixed under this
subsection at a rate greater than the rate payable for level
I of the Executive Schedule under section 5311 of title 5,
United States Code, except upon written approval of the
President in response to a request by the Director of
National Intelligence or as otherwise authorized by law.
``(5) Any grant of authority under this subsection for a
position shall terminate at the discretion of the Director of
National Intelligence.''.

SEC. 305. DELEGATION OF AUTHORITY FOR TRAVEL ON COMMON
CARRIERS FOR INTELLIGENCE COLLECTION PERSONNEL.

(a) Delegation of Authority.--Section 116(b) of the
National Security Act of 1947 (50 U.S.C. 404k(b)) is
amended--
(1) by inserting ``(1)'' before ``The Director'';
(2) in paragraph (1), as designated by paragraph (1) of
this subsection, by striking ``may only delegate'' and all
that follows and inserting ``may delegate the authority in
subsection (a) to the head of any other element of the
intelligence community.''; and
(3) by adding at the end the following new paragraph:
``(2) The head of an element of the intelligence community
to whom the authority in subsection (a) is delegated pursuant
to paragraph (1) may further delegate such authority to such
senior officials of such element as are specified in
guidelines prescribed by the Director of National
Intelligence for purposes of this paragraph.''.
(b) Submission of Guidelines to Congress.--Not later than 6
months after the date of the enactment of this Act, the
Director of National Intelligence shall prescribe and submit
to the congressional intelligence committees the guidelines
referred to in paragraph (2) of section 116(b) of the
National Security Act of 1947, as added by subsection (a).

SEC. 306. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE
INTELLIGENCE COMMUNITY.

(a) In General.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.) is amended by inserting after
section 506A the following new section:

``SEC. 506B. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE
INTELLIGENCE COMMUNITY.

``(a) Requirement To Provide.--The Director of National
Intelligence shall, in consultation with the head of the
element of the intelligence community concerned, prepare an
annual personnel level assessment for such element of the
intelligence community that assesses the personnel levels for
each such element for the fiscal year following the fiscal
year in which the assessment is submitted.
``(b) Schedule.--Each assessment required by subsection (a)
shall be submitted to the congressional intelligence
committees each year along with the budget submitted by the
President under section 1105 of title 31, United States Code.
``(c) Contents.--Each assessment required by subsection (a)
submitted during a fiscal year shall contain, at a minimum,
the following information for the element of the intelligence
community concerned:
``(1) The budget submission for personnel costs for the
upcoming fiscal year.
``(2) The dollar and percentage increase or decrease of
such costs as compared to the personnel costs of the current
fiscal year.
``(3) The dollar and percentage increase or decrease of
such costs as compared to the personnel costs during the
prior 5 fiscal years.
``(4) The number of personnel positions requested for the
upcoming fiscal year.
``(5) The numerical and percentage increase or decrease of
such number as compared to the number of personnel positions
of the current fiscal year.
``(6) The numerical and percentage increase or decrease of
such number as compared to the number of personnel positions
during the prior 5 fiscal years.
``(7) The best estimate of the number and costs of
contractors to be funded by the element for the upcoming
fiscal year.
``(8) The numerical and percentage increase or decrease of
such costs of contractors as compared to the best estimate of
the costs of contractors of the current fiscal year.
``(9) The numerical and percentage increase or decrease of
such costs of contractors as compared to the cost of
contractors, and the number of contractors, during the prior
5 fiscal years.
``(10) A written justification for the requested personnel
and contractor levels.
``(11) The number of intelligence collectors and analysts
employed or contracted by each element of the intelligence
community.
``(12) A list of all contractors that have been the subject
of an investigation completed by the Inspector General of any
element of the intelligence community during the preceding
fiscal year, or are or have been the subject of an
investigation by such an Inspector General during the current
fiscal year.
``(13) A statement by the Director of National Intelligence
that, based on current and projected funding, the element
concerned will have sufficient--
``(A) internal infrastructure to support the requested
personnel and contractor levels;
``(B) training resources to support the requested personnel
levels; and
``(C) funding to support the administrative and operational
activities of the requested personnel levels.''.
(b) Clerical Amendment.--The table of contents in the first
section of that Act is amended by inserting after the item
relating to section 506A the following new item:
``Sec. 506B. Annual personnel levels assessment for the intelligence
community.''.

SEC. 307. COMPREHENSIVE REPORT ON INTELLIGENCE COMMUNITY
CONTRACTORS.

(a) Requirement for Report.--Not later than March 31, 2008,
the Director of National

[[Page H14465]]

Intelligence shall submit to the congressional intelligence
committees a report describing the personal services
activities performed by contractors across the intelligence
community, the impact of such contractors on the intelligence
community workforce, plans for conversion of contractor
employment into government employment, and the accountability
mechanisms that govern the performance of such contractors.
(b) Content.--
(1) In general.--The report submitted under subsection (a)
shall include--
(A) a description of any relevant regulations or guidance
issued by the Director of National Intelligence or the head
of an element of the intelligence community relating to
minimum standards required regarding the hiring, training,
security clearance, and assignment of contract personnel and
how those standards may differ from those for government
employees performing substantially similar functions;
(B) an identification of contracts where the contractor is
providing a substantially similar functions to a government
employee;
(C) an assessment of costs incurred or savings achieved by
awarding contracts for the performance of such functions
referred to in subparagraph (B) instead of using full-time
employees of the elements of the intelligence community to
perform such functions;
(D) an assessment of the appropriateness of using
contractors to perform the activities described in paragraph
(2);
(E) an estimate of the number of contracts, and the number
of personnel working under such contracts, related to the
performance of activities described in paragraph (2);
(F) a comparison of the compensation of contract employees
and government employees performing substantially similar
functions;
(G) an analysis of the attrition of government personnel
for contractor positions that provide substantially similar
functions;
(H) a description of positions that will be converted from
contractor employment to government employment under the
authority described in section 103(c) of this Act and the
justification for such conversion;
(I) an analysis of accountability mechanisms within
services contracts awarded for intelligence activities by
each element of the intelligence community during fiscal
years 2006 and 2007;
(J) an analysis of procedures in use in the intelligence
community for conducting oversight of contractors to ensure
identification and prosecution of criminal violations,
financial waste, fraud, or other abuses committed by
contractors or contract personnel; and
(K) an identification of best practices of accountability
mechanisms within services contracts.
(2) Activities.--Activities described in this paragraph are
the following:
(A) Intelligence collection.
(B) Intelligence analysis.
(C) Covert actions, including rendition, detention, and
interrogation activities.

SEC. 308. REPORT ON PROPOSED PAY FOR PERFORMANCE INTELLIGENCE
COMMUNITY PERSONNEL MANAGEMENT SYSTEM.

(a) Prohibition on Pay for Performance Until Report.--The
Director of National Intelligence and the head of an element
of the intelligence community may not implement a plan that
provides compensation to personnel of that element of the
intelligence community based on performance until the date
that is 45 days after the date on which the Director of
National Intelligence submits a report for that element under
subsection (b).
(b) Report.--The Director of National Intelligence shall
submit to Congress a report on performance-based compensation
for each element of the intelligence community, including,
with respect to each such element--
(1) an implementation time line which includes target dates
for completion of--
(A) the development of performance appraisal plans;
(B) establishment of oversight and appeal mechanisms;
(C) deployment of information technology systems;
(D) management training;
(E) employee training;
(F) compensation transition; and
(G) full operational capacity;
(2) an estimated budget for the implementation of the
performance-based compensation system;
(3) an evaluation plan to monitor the implementation of the
performance-based compensation system and to improve and
modify such system;
(4) written standards for measuring the performance of
employees;
(5) a description of the performance-based compensation
system, including budget oversight mechanisms to ensure
sufficient funds to pay employees for bonuses;
(6) a description of internal and external accountability
mechanisms to ensure the fair treatment of employees;
(7) a plan for initial and ongoing training for senior
executives, managers, and employees;
(8) a description of the role of any advisory committee or
other mechanism designed to gather the input of employees
relating to the creation and implementation of the system;
(9) an assessment of the impact of the performance-based
compensation system on women, minorities, persons with
disabilities, and veterans; and
(10) an assessment of the consistency of the plan described
in subsection (a) for such element with the plans of the
Director of National Intelligence for a performance-based
compensation system for the intelligence community.

SEC. 309. REPORT ON PLANS TO INCREASE DIVERSITY WITHIN THE
INTELLIGENCE COMMUNITY.

(a) Requirement for Report.--Not later than March 31, 2008,
the Director of National Intelligence, in coordination with
the heads of the elements of the intelligence community,
shall submit to the congressional intelligence committees a
report on the plans of each element to increase diversity
within the intelligence community.
(b) Content.--The report required by subsection (a) shall
include specific implementation plans to increase diversity
within each element of the intelligence community,
including--
(1) specific implementation plans for each such element
designed to achieve the goals articulated in the strategic
plan of the Director of National Intelligence on equal
employment opportunity and diversity;
(2) specific plans and initiatives for each such element to
increase recruiting and hiring of diverse candidates;
(3) specific plans and initiatives for each such element to
improve retention of diverse Federal employees at the junior,
midgrade, senior, and management levels;
(4) a description of specific diversity awareness training
and education programs for senior officials and managers of
each such element; and
(5) a description of performance metrics to measure the
success of carrying out the plans, initiatives, and programs
described in paragraphs (1) through (4).
Subtitle B--Acquisition Matters

SEC. 311. VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS.

(a) In General.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by section 306 of
this Act, is further amended by inserting after section 506B,
as added by section 306(a), the following new section:

``VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS

``Sec. 506C. (a) Initial Vulnerability Assessments.--The
Director of National Intelligence shall conduct an initial
vulnerability assessment for any major system and its
significant items of supply that is proposed for inclusion in
the National Intelligence Program prior to completion of
Milestone B or an equivalent acquisition decision. The
initial vulnerability assessment of a major system and its
significant items of supply shall, at a minimum, use an
analysis-based approach to--
``(1) identify vulnerabilities;
``(2) define exploitation potential;
``(3) examine the system's potential effectiveness;
``(4) determine overall vulnerability; and
``(5) make recommendations for risk reduction.
``(b) Subsequent Vulnerability Assessments.--(1) The
Director of National Intelligence shall conduct subsequent
vulnerability assessments of each major system and its
significant items of supply within the National Intelligence
Program--
``(A) periodically throughout the life span of the major
system;
``(B) whenever the Director determines that a change in
circumstances warrants the issuance of a subsequent
vulnerability assessment; or
``(C) upon the request of a congressional intelligence
committee.
``(2) Any subsequent vulnerability assessment of a major
system and its significant items of supply shall, at a
minimum, use an analysis-based approach and, if applicable, a
testing-based approach, to monitor the exploitation potential
of such system and reexamine the factors described in
paragraphs (1) through (5) of subsection (a).
``(c) Major System Management.--The Director of National
Intelligence shall give due consideration to the
vulnerability assessments prepared for a given major system
when developing and determining the annual consolidated
National Intelligence Program budget.
``(d) Congressional Oversight.--(1) The Director of
National Intelligence shall provide to the congressional
intelligence committees a copy of each vulnerability
assessment conducted under subsection (a) or (b) not later
than 10 days after the date of the completion of such
assessment.
``(2) The Director of National Intelligence shall provide
the congressional intelligence committees with a proposed
schedule for subsequent vulnerability assessments of a major
system under subsection (b) when providing such committees
with the initial vulnerability assessment under subsection
(a) of such system as required by subsection (d).
``(e) Definitions.--In this section:
``(1) The term `items of supply'--
``(A) means any individual part, component, subassembly,
assembly, or subsystem integral to a major system, and other
property which may be replaced during the service life of the
major system, including spare parts and replenishment parts;
and
``(B) does not include packaging or labeling associated
with shipment or identification of items.
``(2) The term `major system' has the meaning given that
term in section 506A(e).
``(3) The term `Milestone B' means a decision to enter into
system development and demonstration pursuant to guidance
prescribed by the Director of National Intelligence.
``(4) The term `vulnerability assessment' means the process
of identifying and quantifying vulnerabilities in a major
system and its significant items of supply.''.
(b) Clerical Amendment.--The table of contents in the first
section of the National Security Act of 1947, as amended by
section 306 of this Act, is further amended by inserting
after the item relating to section 506B, as added by section
306(b), the following:

``Sec. 506C. Vulnerability assessments of major systems.''.

[[Page H14466]]

SEC. 312. BUSINESS ENTERPRISE ARCHITECTURE AND BUSINESS
SYSTEM MODERNIZATION FOR THE INTELLIGENCE
COMMUNITY.

(a) Business Enterprise Architecture and Business System
Modernization.--
(1) In general.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by sections 306 and
311 of this Act, is further amended by inserting after
section 506C, as added by section 311(a), the following new
section:

``INTELLIGENCE COMMUNITY BUSINESS SYSTEMS, ARCHITECTURE,
ACCOUNTABILITY, AND MODERNIZATION

``Sec. 506D. (a) Limitation on Obligation of Funds for
Intelligence Community Business System Modernization.--(1)
After April 1, 2008, no funds appropriated to any element of
the intelligence community may be obligated for an
intelligence community business system modernization
described in paragraph (2) unless--
``(A) the approval authority designated by the Director of
National Intelligence under subsection (c)(2) makes the
certification described in paragraph (3) with respect to the
intelligence community business system modernization; and
``(B) the certification is approved by the Intelligence
Community Business Systems Management Committee established
under subsection (f).
``(2) An intelligence community business system
modernization described in this paragraph is an intelligence
community business system modernization that--
``(A) will have a total cost in excess of $1,000,000; and
``(B) will receive more than 50 percent of the funds for
such cost from amounts appropriated for the National
Intelligence Program.
``(3) The certification described in this paragraph for an
intelligence community business system modernization is a
certification, made by the approval authority designated by
the Director under subsection (c)(2) to the Intelligence
Community Business Systems Management Committee, that the
intelligence community business system modernization--
``(A) complies with the enterprise architecture under
subsection (b); or
``(B) is necessary--
``(i) to achieve a critical national security capability or
address a critical requirement in an area such as safety or
security; or
``(ii) to prevent a significant adverse effect on a project
that is needed to achieve an essential capability, taking
into consideration the alternative solutions for preventing
such adverse effect.
``(4) The obligation of funds for an intelligence community
business system modernization that does not comply with the
requirements of this subsection shall be treated as a
violation of section 1341(a)(1)(A) of title 31, United States
Code.
``(b) Enterprise Architecture for Intelligence Community
Business Systems.--(1) The Director of National Intelligence
shall, acting through the Intelligence Community Business
Systems Management Committee established under subsection
(f), develop and implement an enterprise architecture to
cover all intelligence community business systems, and the
functions and activities supported by such business systems.
The enterprise architecture shall be sufficiently defined to
effectively guide, constrain, and permit implementation of
interoperable intelligence community business system
solutions, consistent with applicable policies and procedures
established by the Director of the Office of Management and
Budget.
``(2) The enterprise architecture under paragraph (1) shall
include the following:
``(A) An information infrastructure that, at a minimum,
will enable the intelligence community to--
``(i) comply with all Federal accounting, financial
management, and reporting requirements;
``(ii) routinely produce timely, accurate, and reliable
financial information for management purposes;
``(iii) integrate budget, accounting, and program
information and systems; and
``(iv) provide for the systematic measurement of
performance, including the ability to produce timely,
relevant, and reliable cost information.
``(B) Policies, procedures, data standards, and system
interface requirements that apply uniformly throughout the
intelligence community.
``(c) Responsibilities for Intelligence Community Business
System Modernization.--(1) The Director of National
Intelligence shall be responsible for review, approval, and
oversight of the planning, design, acquisition, deployment,
operation, and maintenance of an intelligence community
business system modernization if more than 50 percent of the
cost of the intelligence community business system
modernization is funded by amounts appropriated for the
National Intelligence Program.
``(2) The Director shall designate 1 or more appropriate
officials of the intelligence community to be responsible for
making certifications with respect to intelligence community
business system modernizations under subsection (a)(3).
``(d) Intelligence Community Business System Investment
Review.--(1) The approval authority designated under
subsection (c)(2) shall establish and implement, not later
than March 31, 2008, an investment review process for the
review of the planning, design, acquisition, development,
deployment, operation, maintenance, modernization, project
cost, benefits, and risks of the intelligence community
business systems for which the approval authority is
responsible.
``(2) The investment review process under paragraph (1)
shall--
``(A) meet the requirements of section 11312 of title 40,
United States Code; and
``(B) specifically set forth the responsibilities of the
approval authority under such review process.
``(3) The investment review process under paragraph (1)
shall include the following elements:
``(A) Review and approval by an investment review board
(consisting of appropriate representatives of the
intelligence community) of each intelligence community
business system as an investment before the obligation of
funds for such system.
``(B) Periodic review, but not less often than annually, of
every intelligence community business system investment.
``(C) Thresholds for levels of review to ensure appropriate
review of intelligence community business system investments
depending on the scope, complexity, and cost of the system
involved.
``(D) Procedures for making certifications in accordance
with the requirements of subsection (a)(3).
``(E) Mechanisms to ensure the consistency of the
investment review process with applicable guidance issued by
the Director of National Intelligence and the Intelligence
Community Business Systems Management Committee established
under subsection (f).
``(F) Common decision criteria, including standards,
requirements, and priorities, for purposes of ensuring the
integration of intelligence community business systems.
``(e) Budget Information.--For each fiscal year after
fiscal year 2009, the Director of National Intelligence shall
include in the materials the Director submits to Congress in
support of the budget for such fiscal year that is submitted
to Congress under section 1105 of title 31, United States
Code, the following information:
``(1) An identification of each intelligence community
business system for which funding is proposed in such budget.
``(2) An identification of all funds, by appropriation,
proposed in such budget for each such system, including--
``(A) funds for current services to operate and maintain
such system; and
``(B) funds for business systems modernization identified
for each specific appropriation.
``(3) For each such system, identification of approval
authority designated for such system under subsection (c)(2).
``(4) The certification, if any, made under subsection
(a)(3) with respect to each such system.
``(f) Intelligence Community Business Systems Management
Committee.--(1) The Director of National Intelligence shall
establish an Intelligence Community Business Systems
Management Committee (in this subsection referred to as the
`Committee').
``(2) The Committee shall--
``(A) recommend to the Director policies and procedures
necessary to effectively integrate all business activities
and any transformation, reform, reorganization, or process
improvement initiatives undertaken within the intelligence
community;
``(B) review and approve any major update of--
``(i) the enterprise architecture developed under
subsection (b); and
``(ii) any plans for an intelligence community business
systems modernization;
``(C) manage cross-domain integration consistent with such
enterprise architecture;
``(D) be responsible for coordinating initiatives for
intelligence community business system modernization to
maximize benefits and minimize costs for the intelligence
community, and periodically report to the Director on the
status of efforts to carry out an intelligence community
business system modernization;
``(E) ensure that funds are obligated for intelligence
community business system modernization in a manner
consistent with subsection (a); and
``(F) carry out such other duties as the Director shall
specify.
``(g) Relation to Annual Registration Requirements.--
Nothing in this section shall be construed to alter the
requirements of section 8083 of the Department of Defense
Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 989),
with regard to information technology systems (as defined in
subsection (d) of such section).
``(h) Relation to Defense Business Systems Architecture,
Accountability, and Modernization Requirements.--An
intelligence community business system that receives more
than 50 percent of its funds from amounts available for the
National Intelligence Program shall be exempt from the
requirements of section 2222 of title 10, United States Code.
``(i) Relation to Clinger-Cohen Act.--(1) The Director of
National Intelligence and the Chief Information Officer of
the Intelligence Community shall fulfill the executive agency
responsibilities in chapter 113 of title 40, United States
Code, for any intelligence community business system that
receives more than 50 percent of its funding from amounts
appropriated for the National Intelligence Program.
``(2) Any intelligence community business system covered by
paragraph (1) shall be exempt from the requirements of such
chapter 113 that would otherwise apply to the executive
agency that contains the element of the intelligence
community involved.
``(j) Reports.--Not later than March 15 of each of the
years 2009 through 2014, the Director of National
Intelligence shall submit to the congressional intelligence
committees a report on the compliance of the intelligence
community with the requirements of this section. Each such
report shall--
``(1) describe actions taken and proposed for meeting the
requirements of subsection (a), including--
``(A) specific milestones and actual performance against
specified performance measures, and any revision of such
milestones and performance measures; and
``(B) specific actions on the intelligence community
business system modernizations submitted for certification
under such subsection;

[[Page H14467]]

``(2) identify the number of intelligence community
business system modernizations that received a certification
described in subsection (a)(3)(B); and
``(3) describe specific improvements in business operations
and cost savings resulting from successful intelligence
community business systems modernization efforts.
``(k) Definitions.--In this section:
``(1) The term `enterprise architecture' has the meaning
given that term in section 3601(4) of title 44, United States
Code.
``(2) The terms `information system' and `information
technology' have the meanings given those terms in section
11101 of title 40, United States Code.
``(3) The term `intelligence community business system'
means an information system, other than a national security
system, that is operated by, for, or on behalf of the
intelligence community, including financial systems, mixed
systems, financial data feeder systems, and the business
infrastructure capabilities shared by the systems of the
business enterprise architecture that build upon the core
infrastructure used to support business activities, such as
acquisition, financial management, logistics, strategic
planning and budgeting, installations and environment, and
human resource management.
``(4) The term `intelligence community business system
modernization' means--
``(A) the acquisition or development of a new intelligence
community business system; or
``(B) any significant modification or enhancement of an
existing intelligence community business system (other than
necessary to maintain current services).
``(5) The term `national security system' has the meaning
given that term in section 3542 of title 44, United States
Code.''.
(2) Clerical amendment.--The table of contents in the first
section of that Act, as amended by sections 306 and 311 of
this Act, is further amended by inserting after the item
relating to section 506C, as added by section 311(b), the
following new item:

``Sec. 506D. Intelligence community business systems, architecture,
accountability, and modernization.''.

(b) Implementation.--
(1) Certain duties.--Not later than 60 days after the date
of the enactment of this Act, the Director of National
Intelligence shall--
(A) complete the delegation of responsibility for the
review, approval, and oversight of the planning, design,
acquisition, deployment, operation, maintenance, and
modernization of intelligence community business systems
required by subsection (c) of section 506D of the National
Security Act of 1947 (as added by subsection (a)); and
(B) designate a vice chairman and personnel to serve on the
Intelligence Community Business System Management Committee
established under subsection (f) of such section 506D (as so
added).
(2) Enterprise architecture.--
(A) Schedule for development.--The Director shall develop
the enterprise architecture required by subsection (b) of
such section 506D (as so added) by not later than September
1, 2008.
(B) Requirement for implementation plan.--In developing
such enterprise architecture, the Director shall develop an
implementation plan for such enterprise architecture that
includes the following:
(i) An acquisition strategy for new systems that are
expected to be needed to complete such enterprise
architecture, including specific time-phased milestones,
performance metrics, and a statement of the financial and
nonfinancial resource needs.
(ii) An identification of the intelligence community
business systems in operation or planned as of December 31,
2006, that will not be a part of such enterprise
architecture, together with the schedule for the phased
termination of the utilization of any such systems.
(iii) An identification of the intelligence community
business systems in operation or planned as of December 31,
2006, that will be a part of such enterprise architecture,
together with a strategy for modifying such systems to ensure
that such systems comply with such enterprise architecture.
(C) Submission of acquisition strategy.--The Director shall
submit the acquisition strategy described in subparagraph
(B)(i) to the congressional intelligence committees not later
than March 1, 2008.

SEC. 313. REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS.

(a) In General.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by sections 306,
311, and 312 of this Act, is further amended by inserting
after section 506D, as added by section 312(a)(1), the
following new section:

``REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS

``Sec. 506E. (a) Annual Reports Required.--(1) The Director
of National Intelligence shall submit to the congressional
intelligence committees each year, at the same time the
budget of the President for the fiscal year beginning in such
year is submitted to Congress pursuant to section 1105 of
title 31, United States Code, a separate report on each
acquisition of a major system by an element of the
intelligence community.
``(2) Each report under this section shall be known as a
`Report on the Acquisition of Major Systems'.
``(b) Elements.--Each report under this section shall
include, for the acquisition of a major system, information
on the following:
``(1) The current total acquisition cost for such system,
and the history of such cost from the date the system was
first included in a report under this section to the end of
the calendar quarter immediately proceeding the submittal of
the report under this section.
``(2) The current development schedule for the system,
including an estimate of annual development costs until
development is completed.
``(3) The planned procurement schedule for the system,
including the best estimate of the Director of National
Intelligence of the annual costs and units to be procured
until procurement is completed.
``(4) A full life-cycle cost analysis for such system.
``(5) The result of any significant test and evaluation of
such major system as of the date of the submittal of such
report, or, if a significant test and evaluation has not been
conducted, a statement of the reasons therefor and the
results of any other test and evaluation that has been
conducted of such system.
``(6) The reasons for any change in acquisition cost, or
schedule, for such system from the previous report under this
section, if applicable.
``(7) The major contracts or subcontracts related to the
major system.
``(8) If there is any cost or schedule variance under a
contract referred to in paragraph (7) since the previous
report under this section, the reasons for such cost or
schedule variance.
``(c) Determination of Increase in Costs.--Any
determination of a percentage increase in the acquisition
costs of a major system for which a report is filed under
this section shall be stated in terms of constant dollars
from the first fiscal year in which funds are appropriated
for such contract.
``(d) Definitions.--In this section:
``(1) The term `acquisition cost', with respect to a major
system, means the amount equal to the total cost for
development and procurement of, and system-specific
construction for, such system.
``(2) The term `full life-cycle cost', with respect to the
acquisition of a major system, means all costs of
development, procurement, construction, deployment, and
operation and support for such program, without regard to
funding source or management control, including costs of
development and procurement required to support or utilize
such system.
``(3) The term `major contract,' with respect to a major
system acquisition, means each of the 6 largest prime,
associate, or government-furnished equipment contracts under
the program that is in excess of $40,000,000 and that is not
a firm, fixed price contract.
``(4) The term `major system' has the meaning given that
term in section 506A(e).
``(5) The term `significant test and evaluation' means the
functional or environmental testing of a major system or of
the subsystems that combine to create a major system.''.
(b) Clerical Amendment.--The table of contents in the first
section of that Act, as amended by sections 306, 311, and 312
of this Act, is further amended by inserting after the item
relating to section 506D, as added by section 312(a)(2), the
following new item:

``Sec. 506E. Reports on the acquisition of major systems.''.

SEC. 314. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.

(a) Notification.--Title V of the National Security Act of
1947, as amended by sections 306, 311, 312, and 313 of this
Act, is further amended by inserting after section 506E, as
added by section 313(a), the following new section:

``EXCESSIVE COST GROWTH OF MAJOR SYSTEMS

``Sec. 506F. (a) Cost Increases of at Least 25 Percent.--
(1)(A) On a continuing basis, and separate from the
submission of any report on a major system required by
section 506E of this Act, the program manager shall determine
if the acquisition cost of such major system has increased by
at least 25 percent as compared to the baseline cost of such
major system.
``(B) Not later than 10 days after the date that a program
manager determines that an increase described in subparagraph
(A) has occurred, the program manager shall submit to the
Director of National Intelligence notification of such
increase.
``(2)(A) If, after receiving a notification described in
paragraph (1)(B), the Director of National Intelligence
determines that the acquisition cost of a major system has
increased by at least 25 percent, the Director shall submit
to the congressional intelligence committees a written
notification of such determination as described in
subparagraph (B), a description of the amount of the increase
in the acquisition cost of such major system, and a
certification as described in subparagraph (C).
``(B) The notification required by subparagraph (A) shall
include--
``(i) an updated cost estimate;
``(ii) the date on which the determination covered by such
notification was made;
``(iii) contract performance assessment information with
respect to each significant contract or sub-contract related
to such major system, including the name of the contractor,
the phase of the contract at the time of the report, the
percentage of work under the contract that has been
completed, any change in contract cost, the percentage by
which the contract is currently ahead or behind schedule, and
a summary explanation of significant occurrences, such as
cost and schedule variances, and the effect of such
occurrences on future costs and schedules;
``(iv) the prior estimate of the full life-cycle cost for
such major system, expressed in constant dollars and in
current year dollars;
``(v) the current estimated full life-cycle cost of such
major system, expressed in constant dollars and current year
dollars;
``(vi) a statement of the reasons for any increases in the
full life-cycle cost of such major system;
``(vii) the current change and the total change, in dollars
and expressed as a percentage, in the full life-cycle cost
applicable to such

[[Page H14468]]

major system, stated both in constant dollars and current
year dollars;
``(viii) the completion status of such major system
expressed as the percentage--
``(I) of the total number of years for which funds have
been appropriated for such major system compared to the
number of years for which it is planned that such funds will
be appropriated; and
``(II) of the amount of funds that have been appropriated
for such major system compared to the total amount of such
funds which it is planned will be appropriated;
``(ix) the action taken and proposed to be taken to control
future cost growth of such major system; and
``(x) any changes made in the performance or schedule of
such major system and the extent to which such changes have
contributed to the increase in full life-cycle costs of such
major system.
``(C) The certification described in this subparagraph is a
written certification made by the Director and submitted to
the congressional intelligence committees that--
``(i) the acquisition of such major system is essential to
the national security;
``(ii) there are no alternatives to such major system that
will provide equal or greater intelligence capability at
equal or lesser cost to completion;
``(iii) the new estimates of the full life-cycle cost for
such major system are reasonable; and
``(iv) the management structure for the acquisition of such
major system is adequate to manage and control full life-
cycle cost of such major system.
``(b) Cost Increases of at Least 50 Percent.--(1)(A) On a
continuing basis, and separate from the submission of any
report on a major system required by section 506E of this
Act, the program manager shall determine if the acquisition
cost of such major system has increased by at least 50
percent as compared to the baseline cost of such major
system.
``(B) Not later than 10 days after the date that a program
manager determines that an increase described in subparagraph
(A) has occurred, the program manager shall submit to the
Director of National Intelligence notification of such
increase.
``(2) If, after receiving a notification described in
paragraph (1)(B), the Director of National Intelligence
determines that the acquisition cost of a major system has
increased by at least 50 percent as compared to the baseline
cost of such major system, the Director shall submit to the
congressional intelligence committees a written certification
stating that--
``(A) the acquisition of such major system is essential to
the national security;
``(B) there are no alternatives to such major system that
will provide equal or greater intelligence capability at
equal or lesser cost to completion;
``(C) the new estimates of the full life-cycle cost for
such major system are reasonable; and
``(D) the management structure for the acquisition of such
major system is adequate to manage and control the full life-
cycle cost of such major system.
``(3) In addition to the certification required by
paragraph (2), the Director of National Intelligence shall
submit to the congressional intelligence committees an
updated notification, with current accompanying information,
as required by subsection (a)(2).
``(c) Prohibition on Obligation of Funds.--(1) If a written
certification required under subsection (a)(2)(A) is not
submitted to the congressional intelligence committees within
60 days of the determination made under subsection (a)(1),
funds appropriated for the acquisition of a major system may
not be obligated for a major contract under the program. Such
prohibition on the obligation of funds shall cease to apply
at the end of the 30-day period of a continuous session of
Congress that begins on the date on which Congress receives
the notification required under subsection (a)(2)(A).
``(2) If a written certification required under subsection
(b)(2) is not submitted to the congressional intelligence
committees within 60 days of the determination made under
subsection (b)(2), funds appropriated for the acquisition of
a major system may not be obligated for a major contract
under the program. Such prohibition on the obligation of
funds for the acquisition of a major system shall cease to
apply at the end of the 30-day period of a continuous session
of Congress that begins on the date on which Congress
receives the notification required under subsection (b)(3).
``(d) Definitions.--In this section:
``(1) The term `acquisition cost' has the meaning given
that term in section 506E(d).
``(2) The term `baseline cost', with respect to a major
system, means the projected acquisition cost of such system
that is approved by the Director of National Intelligence at
Milestone B or an equivalent acquisition decision for the
development, procurement, and construction of such system.
The baseline cost may be in the form of an independent cost
estimate.
``(3) The term `full life-cycle cost' has the meaning given
that term in section 506E(d).
``(4) The term `independent cost estimate' has the meaning
given that term in section 506A(e).
``(5) The term `major system' has the meaning given that
term in section 506A(e).
``(6) The term `Milestone B' means a decision to enter into
system development and demonstration pursuant to guidance
prescribed by the Director of National Intelligence.
``(7) The term `program manager', with respect to a major
system, means--
``(A) the head of the element of the intelligence community
which is responsible for the budget, cost, schedule, and
performance of the major system; or
``(B) in the case of a major system within the Office of
the Director of National Intelligence, the deputy who is
responsible for the budget, cost, schedule, and performance
of the major system.''.
(b) Clerical Amendment.--The table of contents in the first
section of that Act, as amended by sections 304, 311, 312,
and 313 of this Act, is further amended by inserting after
the items relating to section 506E, as added by section
313(b), the following new item:

``Sec. 506F. Excessive cost growth of major systems.''.
Subtitle C--Other Matters

SEC. 321. 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. 322. CLARIFICATION OF DEFINITION OF INTELLIGENCE
COMMUNITY UNDER THE NATIONAL SECURITY ACT OF
1947.

Subparagraph (L) of section 3(4) of the National Security
Act of 1947 (50 U.S.C. 401a(4)) is amended by striking
``other'' the second place it appears.

SEC. 323. MODIFICATION OF AVAILABILITY OF FUNDS FOR DIFFERENT
INTELLIGENCE ACTIVITIES.

Subparagraph (B) of section 504(a)(3) of the National
Security Act of 1947 (50 U.S.C. 414(a)(3)) is amended to read
as follows:
``(B) the use of such funds for such activity supports an
emergent need, improves program effectiveness, or increases
efficiency; and''.

SEC. 324. PROTECTION OF CERTAIN NATIONAL SECURITY
INFORMATION.

(a) Increase in Penalties for Disclosure of Undercover
Intelligence Officers and Agents.--
(1) Disclosure of agent after access to information
identifying agent.--Subsection (a) of section 601 of the
National Security Act of 1947 (50 U.S.C. 421) is amended by
striking ``ten years'' and inserting ``15 years''.
(2) Disclosure of agent after access to classified
information.--Subsection (b) of such section is amended by
striking ``five years'' and inserting ``10 years''.
(b) Modifications to Annual Report on Protection of
Intelligence Identities.--The first sentence of section
603(a) of the National Security Act of 1947 (50 U.S.C.
423(a)) is amended by inserting ``including an assessment of
the need for any modification of this title for the purpose
of improving legal protections for covert agents,'' after
``measures to protect the identities of covert agents,''.

SEC. 325. EXTENSION OF AUTHORITY TO DELETE INFORMATION ABOUT
RECEIPT AND DISPOSITION OF FOREIGN GIFTS AND
DECORATIONS.

Paragraph (4) of section 7342(f) of title 5, United States
Code, is amended to read as follows:
``(4)(A) In transmitting such listings for an element of
the intelligence community, the head of such element may
delete the information described in subparagraph (A) or (C)
of paragraph (2) or in subparagraph (A) or (C) of paragraph
(3) if the head of such element certifies in writing to the
Secretary of State that the publication of such information
could adversely affect United States intelligence sources or
methods.
``(B) Any information not provided to the Secretary of
State pursuant to the authority in subparagraph (A) shall be
transmitted to the Director of National Intelligence who
shall keep a record of such information.
``(C) In this paragraph, the term `element of the
intelligence community' means an element of the intelligence
community listed in or designated under section 3(4) of the
National Security Act of 1947 (50 U.S.C. 401a(4)).''.

SEC. 326. REPORT ON COMPLIANCE WITH THE DETAINEE TREATMENT
ACT OF 2005 AND RELATED PROVISIONS OF THE
MILITARY COMMISSIONS ACT OF 2006.

(a) Report Required.--Not later than 45 days after the date
of the enactment of this Act, the Director of National
Intelligence shall submit to the congressional intelligence
committees a comprehensive report on all measures taken by
the Office of the Director of National Intelligence and by
each element, if any, of the intelligence community with
relevant responsibilities to comply with the provisions of
the Detainee Treatment Act of 2005 (title X of division A of
Public Law 109-148; 119 Stat. 2739) and related provisions of
the Military Commissions Act of 2006 (Public Law 109-366; 120
Stat. 2600).
(b) Elements.--The report required by subsection (a) shall
include the following:
(1) A description of the detention or interrogation
methods, if any, that have been determined to comply with
section 1003 of the Detainee Treatment Act of 2005 (119 Stat.
2739; 42 U.S.C. 2000dd) and section 6 of the Military
Commissions Act of 2006 (120 Stat. 2632; 18 U.S.C. 2441
note) (including the amendments made by such section 6),
and, with respect to each such method--
(A) an identification of the official making such
determination; and
(B) a statement of the basis for such determination.
(2) A description of the detention or interrogation
methods, if any, whose use has been discontinued pursuant to
the Detainee Treatment Act of 2005 or the Military Commission
Act of 2006, and, with respect to each such method--
(A) an identification of the official making the
determination to discontinue such method; and
(B) a statement of the basis for such determination.
(3) A description of any actions that have been taken to
implement section 1004 of the Detainee Treatment Act of 2005
(119 Stat. 2740; 42 U.S.C. 2000dd-1), and, with respect to
each such action--

[[Page H14469]]

(A) an identification of the official taking such action;
and
(B) a statement of the basis for such action.
(4) Any other matters that the Director considers necessary
to fully and currently inform the congressional intelligence
committees about the implementation of the Detainee Treatment
Act of 2005 and related provisions of the Military
Commissions Act of 2006.
(5) An appendix containing--
(A) all guidelines for the application of the Detainee
Treatment Act of 2005 and related provisions of the Military
Commissions Act of 2006 to the detention or interrogation
activities, if any, of any element of the intelligence
community; and
(B) the legal justifications of any office of the
Department of Justice about the meaning or application of the
Detainee Treatment Act of 2005 or related provisions of the
Military Commissions Act of 2006 with respect to the
detention or interrogation activities, if any, of any element
of the intelligence community.
(c) Form.--The report required by subsection (a) shall be
submitted in classified form.
(d) Submission to the Congressional Armed Services
Committees.--To the extent that the report required by
subsection (a) addresses an element of the intelligence
community within the Department of Defense, that portion of
the report, and any associated material that is necessary to
make that portion understandable, shall also be submitted by
the Director of National Intelligence to the congressional
armed services committees.
(e) Congressional Armed Services Committee Defined.--In
this section, the term ``congressional armed services
committees'' means--
(1) the Committee on Armed Services of the Senate; and
(2) the Committee on Armed Services of the House of
Representatives.

SEC. 327. LIMITATION ON INTERROGATION TECHNIQUES.

(a) Limitation.--No individual in the custody or under the
effective control of an element of the intelligence community
or instrumentality thereof, regardless of nationality or
physical location, shall be subject to any treatment or
technique of interrogation not authorized by the United
States Army Field Manual on Human Intelligence Collector
Operations.
(b) Instrumentality Defined.--In this section, the term
``instrumentality'', with respect to an element of the
intelligence community, means a contractor or subcontractor
at any tier of the element of the intelligence community.

SEC. 328. LIMITATION ON USE OF FUNDS.

Not more than 30 percent of the funds authorized to be
appropriated for the Expenditure Center referred to on page
157 of Volume VI, Book 1 of the Fiscal Year 2008 - Fiscal
Year 2009 Congressional Budget Justification, National
Intelligence Program, may be obligated or expended until each
member of the congressional intelligence committees has been
fully and currently informed with respect to intelligence
regarding a facility in Syria subject to reported military
action by the State of Israel on September 6, 2007, including
intelligence relating to any agent or citizen of North Korea,
Iran, or any other foreign country present at the facility,
and any intelligence provided to the Federal Government by a
foreign country regarding the facility (as available).

SEC. 329. INCORPORATION OF REPORTING REQUIREMENTS.

Each requirement to submit a report to the congressional
intelligence committees that is included in the classified
annex to this Act is hereby incorporated into this Act and is
hereby made a requirement in law.

SEC. 330. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

(a) Annual Report on Intelligence.--
(1) Repeal.--Section 109 of the National Security Act of
1947 (50 U.S.C. 404d) is repealed.
(2) Clerical amendment.--The table of contents in the first
section of the National Security Act of 1947 is amended by
striking the item relating to section 109.
(b) Annual and Special Reports on Intelligence Sharing With
the United Nations.--Section 112 of the National Security Act
of 1947 (50 U.S.C. 404g) is amended--
(1) by striking subsection (b); and
(2) by redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively.
(c) Annual Certification on Counterintelligence
Initiatives.--Section 1102(b) of the National Security Act of
1947 (50 U.S.C. 442a(b)) is amended--
(1) by striking ``(1)''; and
(2) by striking paragraph (2).
(d) Report and Certification Under Terrorist Identification
Classification System.--Section 343 of the Intelligence
Authorization Act for Fiscal Year 2003 (50 U.S.C. 404n-2) is
amended--
(1) by striking subsection (d); and
(2) by redesignating subsections (e), (f), (g), and (h) as
subsections (d), (e), (f), and (g), respectively.
(e) Annual Report on Counterdrug Intelligence Matters.--
Section 826 of the Intelligence Authorization Act for Fiscal
Year 2003 (Public Law 107-306; 116 Stat. 2429; 21 U.S.C. 873
note) is repealed.
(f) Conforming Amendments.--Section 507(a) of the National
Security Act of 1947 (50 U.S.C. 415b(a)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraphs (A) and (B); and
(B) by redesignating subparagraphs (C) through (N) as
subparagraphs (A) through (L), respectively; and
(2) in paragraph (2), by striking subparagraph (D).
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Subtitle A--Office of the Director of National Intelligence

SEC. 401. CLARIFICATION OF LIMITATION ON COLOCATION OF THE
OFFICE OF THE DIRECTOR OF NATIONAL
INTELLIGENCE.

Section 103(e) of the National Security Act of 1947 (50
U.S.C. 403-3(e)) is amended--
(1) by striking ``With'' and inserting ``of Headquarters
With Headquarters of'';
(2) by inserting ``the headquarters of'' before ``the
Office''; and
(3) by striking ``any other element'' and inserting ``the
headquarters of any other element''.

SEC. 402. MEMBERSHIP OF THE DIRECTOR OF NATIONAL INTELLIGENCE
ON THE TRANSPORTATION SECURITY OVERSIGHT BOARD.

Subparagraph (F) of section 115(b)(1) of title 49, United
States Code, is amended to read as follows:
``(F) The Director of National Intelligence, or the
Director's designee.''.

SEC. 403. ADDITIONAL DUTIES OF THE DIRECTOR OF SCIENCE AND
TECHNOLOGY.

Section 103E of the National Security Act of 1947 (50
U.S.C. 403-3e) is amended--
(1) in subsection (c)--
(A) by redesignating paragraph (5) as paragraph (7);
(B) in paragraph (4), by striking ``and'' at the end; and
(C) by inserting after paragraph (4) the following:
``(5) assist the Director in establishing goals for basic,
applied, and advanced research to meet the technology needs
of the intelligence community and to be executed by elements
of the intelligence community by--
``(A) systematically identifying, assessing, and
prioritizing the most significant intelligence challenges
that require technical solutions; and
``(B) examining options to enhance the responsiveness of
research programs;
``(6) submit to Congress an annual report on the science
and technology strategy of the Director; and''; and
(2) in paragraph (3) of subsection (d)--
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively;
(B) in subparagraph (B), as so redesignated, by inserting
``and prioritize'' after ``coordinate''; and
(C) by inserting before subparagraph (B), as so
redesignated, the following new subparagraph:
``(A) identify basic, advanced, and applied research
programs to be executed by elements of the intelligence
community;''.

SEC. 404. LEADERSHIP AND LOCATION OF CERTAIN OFFICES AND
OFFICIALS.

(a) National Counter Proliferation Center.--Section 119A(a)
of the National Security Act of 1947 (50 U.S.C. 404o-1(a)) is
amended--
(1) by striking ``(a) Establishment.--Not later than 18
months after the date of the enactment of the National
Security Intelligence Reform Act of 2004, the'' and inserting
the following:
``(a) In General.--
``(1) Establishment.--The''; and
(2) by adding at the end the following new paragraphs:
``(2) Director.--The head of the National Counter
Proliferation Center shall be the Director of the National
Counter Proliferation Center, who shall be appointed by the
Director of National Intelligence.
``(3) Location.--The National Counter Proliferation Center
shall be located within the Office of the Director of
National Intelligence.''.
(b) Officers.--Section 103(c) of that Act (50 U.S.C. 403-
3(c)) is amended--
(1) by redesignating paragraph (9) as paragraph (13); and
(2) by inserting after paragraph (8) the following new
paragraphs:
``(9) The Chief Information Officer of the Intelligence
Community.
``(10) The Inspector General of the Intelligence Community.
``(11) The Director of the National Counterterrorism
Center.
``(12) The Director of the National Counter Proliferation
Center.''.

SEC. 405. PLAN TO IMPLEMENT RECOMMENDATIONS OF THE DATA
CENTER ENERGY EFFICIENCY REPORTS.

(a) Plan.--The Director of National Intelligence shall
develop a plan to implement the recommendations of the report
submitted to Congress under section 1 of the Act entitled
``An Act to study and promote the use of energy efficient
computer servers in the United States'' (Public Law 109-431;
120 Stat. 2920) across the intelligence community.
(b) Report.--
(1) In general.--Not later then February 1, 2008, the
Director of National Intelligence shall submit to the
congressional intelligence committees a report containing the
plan developed under subsection (a).
(2) Form.--The report under paragraph (1) shall be
submitted in unclassified form, but may contain a classified
annex.

SEC. 406. COMPREHENSIVE LISTING OF SPECIAL ACCESS PROGRAMS.

Not later than February 1, 2008, the Director of National
Intelligence shall submit to the congressional intelligence
committees a classified comprehensive listing of all special
access programs under the National Intelligence Program (as
defined in section 3(6) of the National Security Act of 1947
(50 U.S.C. 401a(6))). Such listing may be submitted in a form
or forms consistent with the protection of national security.

SEC. 407. REPORTS ON THE NUCLEAR PROGRAMS OF IRAN AND NORTH
KOREA.

(a) Requirement for Reports.--Not less frequently than once
during fiscal year 2008 and

[[Page H14470]]

twice during fiscal year 2009, the Director of National
Intelligence shall submit to the congressional intelligence
committees a report on the intentions and capabilities of the
Islamic Republic of Iran and the Democratic People's Republic
of Korea, with regard to the nuclear programs of each such
country.
(b) Content.--Each report submitted by subsection (a) shall
include, with respect of the Islamic Republic of Iran and the
Democratic People's Republic of Korea--
(1) an assessment of nuclear weapons programs of each such
country;
(2) an evaluation, consistent with existing reporting
standards and practices, of the sources upon which the
intelligence used to prepare the assessment described in
paragraph (1) is based, including the number of such sources
and an assessment of the reliability of each such source;
(3) a summary of any intelligence related to any such
program gathered or developed since the previous report was
submitted under subsection (a), including intelligence
collected from both open and clandestine sources for each
such country; and
(4) a discussion of any dissents, caveats, gaps in
knowledge, or other information that would reduce confidence
in the assessment described in paragraph (1).
(c) National Intelligence Estimate.--The Director of
National Intelligence may submit a National Intelligence
Estimate on the intentions and capabilities of the Islamic
Republic of Iran and the Democratic People's Republic of
Korea in lieu of a report required by subsection (a).
(d) Form.--Each report submitted under subsection (a) may
be submitted in classified form.

SEC. 408. REQUIREMENTS FOR ACCOUNTABILITY REVIEWS BY THE
DIRECTOR OF NATIONAL INTELLIGENCE.

(a) Responsibility of the Director of National
Intelligence.--Subsection (b) of section 102 of the National
Security Act of 1947 (50 U.S.C. 403) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3)--
(A) by striking ``2004,'' and inserting ``2004 (50 U.S.C.
403 note),''; and
(B) by striking the period at the end and inserting a
semicolon and ``and''; and
(3) by inserting after paragraph (3), the following new
paragraph:
``(4) conduct accountability reviews of elements of the
intelligence community and the personnel of such elements, if
appropriate.''.
(b) Tasking and Other Authorities.--Subsection (f) of
section 102A of such Act (50 U.S.C. 403-1) is amended--
(1) by redesignating paragraphs (7) and (8), as paragraphs
(8) and (9), respectively; and
(2) by inserting after paragraph (6), the following new
paragraph:
``(7)(A) The Director of National Intelligence shall, if
the Director determines it is necessary, or may, if requested
by a congressional intelligence committee, conduct
accountability reviews of elements of the intelligence
community or the personnel of such elements in relation to
significant failures or deficiencies within the intelligence
community.
``(B) The Director of National Intelligence, in
consultation with the Attorney General, shall establish
guidelines and procedures for conducting accountability
reviews under subparagraph (A).
``(C) The requirements of this paragraph shall not limit
any authority of the Director of National Intelligence under
subsection (m) or with respect to supervision of the Central
Intelligence Agency.''.

SEC. 409. MODIFICATION OF LIMITATION ON DELEGATION BY THE
DIRECTOR OF NATIONAL INTELLIGENCE OF THE
PROTECTION OF INTELLIGENCE SOURCES AND METHODS.

Section 102A(i)(3) of the National Security Act of 1947 (50
U.S.C. 403-1(i)(3)) is amended by inserting before the period
the following: ``or the Chief Information Officer of the
Intelligence Community''.

SEC. 410. AUTHORITIES FOR INTELLIGENCE INFORMATION SHARING.

(a) Authorities for Interagency Funding.--Section
102A(g)(1) of the National Security Act of 1947 (50 U.S.C.
403-1(g)(1)) is amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) in subparagraph (F), by striking the period and
inserting a semicolon; and
(3) by adding at the end the following new subparagraphs:
``(G) in carrying out this subsection, without regard to
any other provision of law (other than this Act and the
National Security Intelligence Reform Act of 2004 (title I of
Public Law 108-458; 118 Stat. 3643)), expend funds and make
funds available to other departments or agencies of the
United States for, and direct the development and fielding
of, systems of common concern related to the collection,
processing, analysis, exploitation, and dissemination of
intelligence information; and
``(H) for purposes of addressing critical gaps in
intelligence information sharing or access capabilities, have
the authority to transfer funds appropriated for a program
within the National Intelligence Program to a program funded
by appropriations not within the National Intelligence
Program, consistent with paragraphs (3) through (7) of
subsection (d).''.
(b) Authorities of Heads of Other Departments and
Agencies.--Notwithstanding any other provision of law, the
head of any department or agency of the United States is
authorized to receive and utilize funds made available to the
department or agency by the Director of National Intelligence
pursuant to section 102A(g)(1) of the National Security Act
of 1947 (50 U.S.C. 403-1(g)(1)), as amended by subsection
(a), and receive and utilize any system referred to in such
section that is made available to the department or agency.
(c) Reports.--
(1) Requirement for reports.--Not later than February 1 of
each of the fiscal years 2009 through 2012, the Director of
National Intelligence shall submit to the congressional
intelligence committees a report detailing the distribution
of funds and systems during the preceding fiscal year
pursuant to subparagraph (G) or (H) of section 102A(g)(1) of
the National Security Act of 1947 (50 U.S.C. 403-1(g)(1)), as
added by subsection (a).
(2) Content.--Each such report shall include--
(A) a listing of the agencies or departments to which such
funds or systems were distributed;
(B) a description of the purpose for which such funds or
systems were distributed; and
(C) a description of the expenditure of such funds, and the
development, fielding, and use of such systems by the
receiving agency or department.

SEC. 411. AUTHORITIES OF THE DIRECTOR OF NATIONAL
INTELLIGENCE FOR INTERAGENCY FUNDING.

(a) In General.--Section 102A of the National Security Act
of 1947 (50 U.S.C. 403-1), as amended by sections 303 and 304
of this Act, is further amended by adding at the end the
following new subsection:
``(u) Authorities for Interagency Funding.--(1)
Notwithstanding section 1346 of title 31, United States Code,
or any other provision of law prohibiting the interagency
financing of activities described in subparagraph (A) or (B),
upon the request of the Director of National Intelligence,
any element of the intelligence community may use
appropriated funds to support or participate in the
interagency activities of the following:
``(A) National intelligence centers established by the
Director under section 119B.
``(B) Boards, commissions, councils, committees, and
similar groups that are established--
``(i) for a term of not more than 2 years; and
``(ii) by the Director.
``(2) No provision of law enacted after the date of the
enactment of the Intelligence Authorization Act for Fiscal
Year 2008 shall be construed to limit or supersede the
authority in paragraph (1) unless such provision makes
specific reference to the authority in that paragraph.''.
(b) Reports.--Not later than February 1 of each of the
fiscal years 2009 through 2012, the Director of National
Intelligence shall submit to the congressional intelligence
committees a report detailing the exercise of any authority
pursuant to subsection (u) of section 102A of the National
Security Act of 1947 (50 U.S.C. 403-1), as amended by
subsection (a), during the preceding fiscal year.

SEC. 412. TITLE OF CHIEF INFORMATION OFFICER OF THE
INTELLIGENCE COMMUNITY.

Section 103G of the National Security Act of 1947 (50
U.S.C. 403-3g) is amended--
(1) in subsection (a), by inserting ``of the Intelligence
Community'' after ``Chief Information Officer'';
(2) in subsection (b), by inserting ``of the Intelligence
Community'' after ``Chief Information Officer'';
(3) in subsection (c), by inserting ``of the Intelligence
Community'' after ``Chief Information Officer''; and
(4) in subsection (d), by inserting ``of the Intelligence
Community'' after ``Chief Information Officer'' the first
place it appears.

SEC. 413. INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY.

(a) Establishment.--
(1) In general.--Title I of the National Security Act of
1947 (50 U.S.C. 402 et seq.) is amended by inserting after
section 103G the following new section:

``INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY

``Sec. 103H. (a) Office of Inspector General of
Intelligence Community.--There is within the Office of the
Director of National Intelligence an Office of the Inspector
General of the Intelligence Community.
``(b) Purpose.--The purpose of the Office of the Inspector
General of the Intelligence Community is to--
``(1) create an objective and effective office,
appropriately accountable to Congress, to initiate and
conduct independently investigations, inspections, and audits
on matters within the responsibility and authority of the
Director of National Intelligence;
``(2) recommend policies designed--
``(A) to promote economy, efficiency, and effectiveness in
the administration and implementation of matters within the
responsibility and authority of the Director of National
Intelligence; and
``(B) to prevent and detect fraud and abuse in such
matters;
``(3) provide a means for keeping the Director of National
Intelligence fully and currently informed about--
``(A) problems and deficiencies relating to matters within
the responsibility and authority of the Director of National
Intelligence; and
``(B) the necessity for, and the progress of, corrective
actions; and
``(4) in the manner prescribed by this section, ensure that
the congressional intelligence committees are kept similarly
informed of--
``(A) significant problems and deficiencies relating to
matters within the responsibility and authority of the
Director of National Intelligence; and
``(B) the necessity for, and the progress of, corrective
actions.
``(c) Inspector General of Intelligence Community.--(1)
There is an Inspector General of the Intelligence Community,
who shall be the head of the Office of the Inspector General
of the Intelligence Community, who shall be appointed by the
President, by and with the advice and consent of the Senate.

[[Page H14471]]

``(2) The nomination of an individual for appointment as
Inspector General shall be made--
``(A) without regard to political affiliation;
``(B) solely on the basis of integrity, compliance with the
security standards of the intelligence community, and prior
experience in the field of intelligence or national security;
and
``(C) on the basis of demonstrated ability in accounting,
financial analysis, law, management analysis, public
administration, or auditing.
``(3) The Inspector General shall report directly to and be
under the general supervision of the Director of National
Intelligence.
``(4) The Inspector General may be removed from office only
by the President. The President shall immediately communicate
in writing to the congressional intelligence committees the
reasons for the removal of any individual from the position
of Inspector General.
``(d) Duties and Responsibilities.--Subject to subsections
(g) and (h), it shall be the duty and responsibility of the
Inspector General of the Intelligence Community--
``(1) to provide policy direction for, and to plan,
conduct, supervise, and coordinate independently, the
investigations, inspections, and audits relating to matters
within the responsibility and authority of the Director of
National Intelligence to ensure they are conducted
efficiently and in accordance with applicable law and
regulations;
``(2) to keep the Director of National Intelligence fully
and currently informed concerning violations of law and
regulations, violations of civil liberties and privacy, fraud
and other serious problems, abuses, and deficiencies that may
occur in matters within the responsibility and authority of
the Director, and to report the progress made in implementing
corrective action;
``(3) to take due regard for the protection of intelligence
sources and methods in the preparation of all reports issued
by the Inspector General, and, to the extent consistent with
the purpose and objective of such reports, take such measures
as may be appropriate to minimize the disclosure of
intelligence sources and methods described in such reports;
and
``(4) in the execution of the duties and responsibilities
under this section, to comply with generally accepted
government auditing standards.
``(e) Limitations on Activities.--(1) The Director of
National Intelligence may prohibit the Inspector General of
the Intelligence Community from initiating, carrying out, or
completing any investigation, inspection, or audit if the
Director determines that such prohibition is necessary to
protect vital national security interests of the United
States.
``(2) If the Director exercises the authority under
paragraph (1), the Director shall submit an appropriately
classified statement of the reasons for the exercise of such
authority within 7 days to the congressional intelligence
committees.
``(3) The Director shall advise the Inspector General at
the time a report under paragraph (2) is submitted, and, to
the extent consistent with the protection of intelligence
sources and methods, provide the Inspector General with a
copy of such report.
``(4) The Inspector General may submit to the congressional
intelligence committees any comments on a report of which the
Inspector General has notice under paragraph (3) that the
Inspector General considers appropriate.
``(f) Authorities.--(1) The Inspector General of the
Intelligence Community shall have direct and prompt access to
the Director of National Intelligence when necessary for any
purpose pertaining to the performance of the duties of the
Inspector General.
``(2)(A) The Inspector General shall have access to any
employee, or any employee of a contractor, of any element of
the intelligence community whose testimony is needed for the
performance of the duties of the Inspector General.
``(B) The Inspector General shall have direct access to all
records, reports, audits, reviews, documents, papers,
recommendations, or other material which relate to the
programs and operations with respect to which the Inspector
General has responsibilities under this section.
``(C) The level of classification or compartmentation of
information shall not, in and of itself, provide a sufficient
rationale for denying the Inspector General access to any
materials under subparagraph (B).
``(D) Failure on the part of any employee, or any employee
of a contractor, of any element of the intelligence community
to cooperate with the Inspector General shall be grounds for
appropriate administrative actions by the Director or, on the
recommendation of the Director, other appropriate officials
of the intelligence community, including loss of employment
or the termination of an existing contractual relationship.
``(3) The Inspector General is authorized to receive and
investigate complaints or information from any person
concerning the existence of an activity constituting a
violation of laws, rules, or regulations, or mismanagement,
gross waste of funds, abuse of authority, or a substantial
and specific danger to the public health and safety. Once
such complaint or information has been received from an
employee of the Federal Government--
``(A) the Inspector General shall not disclose the identity
of the employee without the consent of the employee, unless
the Inspector General determines that such disclosure is
unavoidable during the course of the investigation or the
disclosure is made to an official of the Department of
Justice responsible for determining whether a prosecution
should be undertaken; and
``(B) no action constituting a reprisal, or threat of
reprisal, for making such complaint may be taken by any
employee in a position to take such actions, unless the
complaint was made or the information was disclosed with the
knowledge that it was false or with willful disregard for its
truth or falsity.
``(4) The Inspector General shall have authority to
administer to or take from any person an oath, affirmation,
or affidavit, whenever necessary in the performance of the
duties of the Inspector General, which oath, affirmation, or
affidavit when administered or taken by or before an employee
of the Office of the Inspector General of the Intelligence
Community designated by the Inspector General shall have the
same force and effect as if administered or taken by, or
before, an officer having a seal.
``(5)(A) Except as provided in subparagraph (B), the
Inspector General is authorized to require by subpoena the
production of all information, documents, reports, answers,
records, accounts, papers, and other data and documentary
evidence necessary in the performance of the duties and
responsibilities of the Inspector General.
``(B) In the case of departments, agencies, and other
elements of the United States Government, the Inspector
General shall obtain information, documents, reports,
answers, records, accounts, papers, and other data and
evidence for the purpose specified in subparagraph (A) using
procedures other than by subpoenas.
``(C) The Inspector General may not issue a subpoena for,
or on behalf of, any other element of the intelligence
community, including the Office of the Director of National
Intelligence.
``(D) In the case of contumacy or refusal to obey a
subpoena issued under this paragraph, the subpoena shall be
enforceable by order of any appropriate district court of the
United States.
``(g) Coordination Among Inspectors General of Intelligence
Community.--(1)(A) In the event of a matter within the
jurisdiction of the Inspector General of the Intelligence
Community that may be subject to an investigation,
inspection, or audit by both the Inspector General of the
Intelligence Community and an Inspector General, whether
statutory or administrative, with oversight responsibility
for an element or elements of the intelligence community, the
Inspector General of the Intelligence Community and such
other Inspector or Inspectors General shall expeditiously
resolve the question of which Inspector General shall conduct
such investigation, inspection, or audit.
``(B) In attempting to resolve a question under
subparagraph (A), the Inspectors General concerned may
request the assistance of the Intelligence Community
Inspectors General Forum established under subparagraph (C).
In the event of a dispute between an Inspector General within
an agency or department of the United States Government and
the Inspector General of the Intelligence Community that has
not been resolved with the assistance of the Forum, the
Inspectors General shall submit the question to the Director
of National Intelligence and the head of the agency or
department for resolution.
``(C) There is established the Intelligence Community
Inspectors General Forum which shall consist of all statutory
or administrative Inspectors General with oversight
responsibility for an element or elements of the intelligence
community. The Inspector General of the Intelligence
Community shall serve as the chair of the Forum. The Forum
shall have no administrative authority over any Inspector
General, but shall serve as a mechanism for informing its
members of the work of individual members of the Forum that
may be of common interest and discussing questions about
jurisdiction or access to employees, employees of a
contractor, records, audits, reviews, documents,
recommendations, or other materials that may involve or be of
assistance to more than 1 of its members.
``(2) The Inspector General conducting an investigation,
inspection, or audit covered by paragraph (1) shall submit
the results of such investigation, inspection, or audit to
any other Inspector General, including the Inspector General
of the Intelligence Community, with jurisdiction to
conduct such investigation, inspection, or audit who did
not conduct such investigation, inspection, or audit.
``(h) Staff and Other Support.--(1) The Inspector General
of the Intelligence Community shall be provided with
appropriate and adequate office space at central and field
office locations, together with such equipment, office
supplies, maintenance services, and communications facilities
and services as may be necessary for the operation of such
offices.
``(2)(A) Subject to applicable law and the policies of the
Director of National Intelligence, the Inspector General
shall select, appoint, and employ such officers and employees
as may be necessary to carry out the functions of the
Inspector General. The Inspector General shall ensure that
any officer or employee so selected, appointed, or employed
has security clearances appropriate for the assigned duties
of such officer or employee.
``(B) In making selections under subparagraph (A), the
Inspector General shall ensure that such officers and
employees have the requisite training and experience to
enable the Inspector General to carry out the duties of the
Inspector General effectively.
``(C) In meeting the requirements of this paragraph, the
Inspector General shall create within the Office of the
Inspector General of the Intelligence Community a career
cadre of sufficient size to provide appropriate continuity
and objectivity needed for the effective performance of the
duties of the Inspector General.
``(3)(A) Subject to the concurrence of the Director, the
Inspector General may request such information or assistance
as may be necessary for carrying out the duties and
responsibilities of the Inspector General from any
department, agency, or other element of the United States
Government.
``(B) Upon request of the Inspector General for information
or assistance under subparagraph (A), the head of the
department, agency, or element concerned shall, insofar as is
practicable and not in contravention of any existing

[[Page H14472]]

statutory restriction or regulation of the department,
agency, or element, furnish to the Inspector General, or to
an authorized designee, such information or assistance.
``(C) The Inspector General of the Intelligence Community
may, upon reasonable notice to the head of any element of the
intelligence community, conduct, as authorized by this
section, an investigation, inspection, or audit of such
element and may enter into any place occupied by such element
for purposes of the performance of the duties of the
Inspector General.
``(i) Reports.--(1)(A) The Inspector General of the
Intelligence Community shall, not later than January 31 and
July 31 of each year, prepare and submit to the Director of
National Intelligence a classified, and, as appropriate,
unclassified semiannual report summarizing the activities of
the Office of the Inspector General of the Intelligence
Community during the immediately preceding 6-month period
ending December 31 (of the preceding year) and June 30,
respectively. The Inspector General of the Intelligence
Community shall provide any portion of the report involving a
component of a department of the United States Government to
the head of that department simultaneously with submission of
the report to the Director of National Intelligence.
``(B) Each report under this paragraph shall include, at a
minimum, the following:
``(i) A list of the title or subject of each investigation,
inspection, or audit conducted during the period covered by
such report, including a summary of the progress of each
particular investigation, inspection, or audit since the
preceding report of the Inspector General under this
paragraph.
``(ii) A description of significant problems, abuses, and
deficiencies relating to the administration and
implementation of programs and operations of the intelligence
community, and in the relationships between elements of the
intelligence community, identified by the Inspector General
during the period covered by such report.
``(iii) A description of the recommendations for corrective
or disciplinary action made by the Inspector General during
the period covered by such report with respect to significant
problems, abuses, or deficiencies identified in clause (ii).
``(iv) A statement whether or not corrective or
disciplinary action has been completed on each significant
recommendation described in previous semiannual reports, and,
in a case where corrective action has been completed, a
description of such corrective action.
``(v) A certification whether or not the Inspector General
has had full and direct access to all information relevant to
the performance of the functions of the Inspector General.
``(vi) A description of the exercise of the subpoena
authority under subsection (f)(5) by the Inspector General
during the period covered by such report.
``(vii) Such recommendations as the Inspector General
considers appropriate for legislation to promote economy,
efficiency, and effectiveness in the administration and
implementation of matters within the responsibility and
authority of the Director of National Intelligence, and to
detect and eliminate fraud and abuse in such matters.
``(C) Not later than the 30 days after the date of receipt
of a report under subparagraph (A), the Director shall
transmit the report to the congressional intelligence
committees together with any comments the Director considers
appropriate. The Director shall transmit to the committees of
the Senate and of the House of Representatives with
jurisdiction over a department of the United States
Government any portion of the report involving a component of
such department simultaneously with submission of the report
to the congressional intelligence committees.
``(2)(A) The Inspector General shall report immediately to
the Director whenever the Inspector General becomes aware of
particularly serious or flagrant problems, abuses, or
deficiencies relating to matters within the responsibility
and authority of the Director of National Intelligence.
``(B) The Director shall transmit to the congressional
intelligence committees each report under subparagraph (A)
within 7 calendar days of receipt of such report, together
with such comments as the Director considers appropriate. The
Director shall transmit to the committees of the Senate and
of the House of Representatives with jurisdiction over a
department of the United States Government any portion of
each report under subparagraph (A) that involves a problem,
abuse, or deficiency related to a component of such
department simultaneously with transmission of the report to
the congressional intelligence committees.
``(3) In the event that--
``(A) the Inspector General is unable to resolve any
differences with the Director affecting the execution of the
duties or responsibilities of the Inspector General;
``(B) an investigation, inspection, or audit carried out by
the Inspector General focuses on any current or former
intelligence community official who--
``(i) holds or held a position in an element of the
intelligence community that is subject to appointment by the
President, whether or not by and with the advice and consent
of the Senate, including such a position held on an acting
basis;
``(ii) holds or held a position in an element of the
intelligence community, including a position held on an
acting basis, that is appointed by the Director of National
Intelligence; or
``(iii) holds or held a position as head of an element of
the intelligence community or a position covered by
subsection (b) or (c) of section 106;
``(C) a matter requires a report by the Inspector General
to the Department of Justice on possible criminal conduct by
a current or former official described in subparagraph (B);
``(D) the Inspector General receives notice from the
Department of Justice declining or approving prosecution of
possible criminal conduct of any current or former official
described in subparagraph (B); or
``(E) the Inspector General, after exhausting all possible
alternatives, is unable to obtain significant documentary
information in the course of an investigation, inspection, or
audit,
the Inspector General shall immediately notify and submit a
report on such matter to the congressional intelligence
committees.
``(4) Pursuant to title V, the Director shall submit to the
congressional intelligence committees any report or findings
and recommendations of an investigation, inspection, or audit
conducted by the office which has been requested by the
Chairman or Vice Chairman or Ranking Minority Member of
either committee.
``(5)(A) An employee of an element of the intelligence
community, an employee assigned or detailed to an element of
the intelligence community, or an employee of a contractor to
the intelligence community who intends to report to Congress
a complaint or information with respect to an urgent concern
may report such complaint or information to the Inspector
General.
``(B) Not later than the end of the 14-calendar day period
beginning on the date of receipt from an employee of a
complaint or information under subparagraph (A), the
Inspector General shall determine whether the complaint or
information appears credible. Upon making such a
determination, the Inspector General shall transmit to the
Director a notice of that determination, together with the
complaint or information.
``(C) Upon receipt of a transmittal from the Inspector
General under subparagraph (B), the Director shall, within 7
calendar days of such receipt, forward such transmittal to
the congressional intelligence committees, together with any
comments the Director considers appropriate.
``(D)(i) If the Inspector General does not find credible
under subparagraph (B) a complaint or information submitted
under subparagraph (A), or does not transmit the complaint or
information to the Director in accurate form under
subparagraph (B), the employee (subject to clause (ii)) may
submit the complaint or information to Congress by contacting
either or both of the congressional intelligence committees
directly.
``(ii) An employee may contact the intelligence committees
directly as described in clause (i) only if the employee--
``(I) before making such a contact, furnishes to the
Director, through the Inspector General, a statement of the
employee's complaint or information and notice of the
employee's intent to contact the congressional intelligence
committees directly; and
``(II) obtains and follows from the Director, through the
Inspector General, direction on how to contact the
intelligence committees in accordance with appropriate
security practices.
``(iii) A member or employee of 1 of the congressional
intelligence committees who receives a complaint or
information under clause (i) does so in that member or
employee's official capacity as a member or employee of such
committee.
``(E) The Inspector General shall notify an employee who
reports a complaint or information to the Inspector General
under this paragraph of each action taken under this
paragraph with respect to the complaint or information. Such
notice shall be provided not later than 3 days after any such
action is taken.
``(F) An action taken by the Director or the Inspector
General under this paragraph shall not be subject to judicial
review.
``(G) In this paragraph, the term `urgent concern' means
any of the following:
``(i) A serious or flagrant problem, abuse, violation of
law or Executive order, or deficiency relating to the
funding, administration, or operation of an intelligence
activity involving classified information, but does not
include differences of opinions concerning public policy
matters.
``(ii) A false statement to Congress, or a willful
withholding from Congress, on an issue of material fact
relating to the funding, administration, or operation of an
intelligence activity.
``(iii) An action, including a personnel action described
in section 2302(a)(2)(A) of title 5, United States Code,
constituting reprisal or threat of reprisal prohibited under
subsection (f)(3)(B) of this section in response to an
employee's reporting an urgent concern in accordance with
this paragraph.
``(H) In support of this paragraph, Congress makes the
findings set forth in paragraphs (1) through (6) of section
701(b) of the Intelligence Community Whistleblower Protection
Act of 1998 (title VII of Public Law 105-272; 5 U.S.C. App.
8H note).
``(6) In accordance with section 535 of title 28, United
States Code, the Inspector General shall report to the
Attorney General any information, allegation, or complaint
received by the Inspector General relating to violations of
Federal criminal law that involves a program or operation of
an element of the intelligence community, or in the
relationships between the elements of the intelligence
community, consistent with such guidelines as may be issued
by the Attorney General pursuant to subsection (b)(2) of such
section. A copy of each such report shall be furnished to the
Director.
``(j) Separate Budget Account.--The Director of National
Intelligence shall, in accordance with procedures to be
issued by the Director in consultation with the congressional
intelligence committees, include in the National Intelligence
Program budget a separate account for the Office of Inspector
General of the Intelligence Community.

[[Page H14473]]

``(k) Construction of Duties Regarding Elements of
Intelligence Community.--Except as resolved pursuant to
subsection (g), the performance by the Inspector General of
the Intelligence Community of any duty, responsibility, or
function regarding an element of the intelligence community
shall not be construed to modify or effect the duties and
responsibilities of any other Inspector General, whether
statutory or administrative, having duties and
responsibilities relating to such element.''.
(2) Clerical amendment.--The table of contents in the first
section of the National Security Act of 1947 is amended by
inserting after the item relating to section 103G the
following new item:

``Sec. 103H. Inspector General of the Intelligence Community.''.

(b) Repeal of Superseded Authority To Establish Position.--
Section 8K of the Inspector General Act of 1978 (5 U.S.C.
App.) is repealed.
(c) Executive Schedule Level IV.--Section 5315 of title 5,
United States Code, is amended by adding at the end the
following new item:
``Inspector General of the Intelligence Community.''.

SEC. 414. ANNUAL REPORT ON FOREIGN LANGUAGE PROFICIENCY IN
THE INTELLIGENCE COMMUNITY.

(a) Report.--
(1) In general.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by title III of this
Act, is further amended by adding at the end the following
new section:

``REPORT ON FOREIGN LANGUAGE PROFICIENCY IN THE INTELLIGENCE COMMUNITY

``Sec. 508. Not later than February 1 of each year, the
Director of National Intelligence shall submit to the
congressional intelligence committees a report on the
proficiency in foreign languages and, if appropriate, in
foreign dialects of each element of the intelligence
community, including--
``(1) the number of positions authorized for such element
that require foreign language proficiency and the level of
proficiency required;
``(2) an estimate of the number of such positions that each
element will require during the 5-year period beginning on
the date of the submission of the report;
``(3) the number of positions authorized for such element
that require foreign language proficiency that are filled
by--
``(A) military personnel; and
``(B) civilian personnel;
``(4) the number of applicants for positions in such
element in the previous fiscal year that indicated foreign
language proficiency, including the foreign language
indicated and the proficiency level;
``(5) the number of persons hired by such element with
foreign language proficiency, including the foreign language
and proficiency level;
``(6) the number of personnel of such element currently
attending foreign language training, including the provider
of such training;
``(7) a description of such element's efforts to recruit,
hire, train, and retain personnel that are proficient in a
foreign language;
``(8) an assessment of methods and models for basic,
advanced, and intensive foreign language training;
``(9) for each foreign language and, where appropriate,
dialect of a foreign language--
``(A) the number of positions of such element that require
proficiency in the foreign language or dialect;
``(B) the number of personnel of such element that are
serving in a position that--
``(i) requires proficiency in the foreign language or
dialect to perform the primary duty of the position; and
``(ii) does not require proficiency in the foreign language
or dialect to perform the primary duty of the position;
``(C) the number of personnel of such element rated at each
level of proficiency of the Interagency Language Roundtable;
``(D) whether the number of personnel at each level of
proficiency of the Interagency Language Roundtable meets the
requirements of such element;
``(E) the number of personnel serving or hired to serve as
linguists for such element that are not qualified as
linguists under the standards of the Interagency Language
Roundtable;
``(F) the number of personnel hired to serve as linguists
for such element during the preceding calendar year;
``(G) the number of personnel serving as linguists that
discontinued serving such element during the preceding
calendar year;
``(H) the percentage of work requiring linguistic skills
that is fulfilled by an ally of the United States; and
``(I) the percentage of work requiring linguistic skills
that is fulfilled by contractors;
``(10) an assessment of the foreign language capacity and
capabilities of the intelligence community as a whole; and
``(11) recommendations for eliminating required reports
relating to foreign-language proficiency that the Director of
National Intelligence considers outdated or no longer
relevant.''.
(2) Report date.--Section 507(a)(1) of such Act (50 U.S.C.
415b(a)(1)), as amended by section 328(f) of this Act, is
further amended by adding at the end the following new
subparagraph:
``(M) The annual report on foreign language proficiency in
the intelligence community required by section 508.''.
(b) Conforming Amendment.--The table of contents in the
first section of such Act is further amended by inserting
after the item relating to section 507 the following new
item:

``Sec. 508. Report on foreign language proficiency in the intelligence
community.''.

SEC. 415. DIRECTOR OF NATIONAL INTELLIGENCE REPORT ON
RETIREMENT BENEFITS FOR FORMER EMPLOYEES OF AIR
AMERICA.

(a) In General.--Not later than 120 days after the date of
the enactment of this Act, the Director of National
Intelligence shall submit to Congress a report on the
advisability of providing Federal retirement benefits to
United States citizens for the service of such individuals
before 1977 as employees of Air America or an associated
company while such company was owned or controlled by the
United States Government and operated or managed by the
Central Intelligence Agency.
(b) Report Elements.--
(1) In general.--The report required by subsection (a)
shall include the following:
(A) The history of Air America and associated companies
before 1977, including a description of--
(i) the relationship between such companies and the Central
Intelligence Agency and other elements of the United States
Government;
(ii) the workforce of such companies;
(iii) the missions performed by such companies and their
employees for the United States; and
(iv) the casualties suffered by employees of such companies
in the course of their employment with such companies.
(B) A description of the retirement benefits contracted for
or promised to the employees of such companies before 1977,
the contributions made by such employees for such benefits,
the retirement benefits actually paid such employees, the
entitlement of such employees to the payment of future
retirement benefits, and the likelihood that former employees
of such companies will receive any future retirement
benefits.
(C) An assessment of the difference between--
(i) the retirement benefits that former employees of such
companies have received or will receive by virtue of their
employment with such companies; and
(ii) the retirement benefits that such employees would have
received and in the future receive if such employees had
been, or would now be, treated as employees of the United
States whose services while in the employ of such companies
had been or would now be credited as Federal service for the
purpose of Federal retirement benefits.
(D) Any recommendations regarding the advisability of
legislative action to treat employment at such companies as
Federal service for the purpose of Federal retirement
benefits in light of the relationship between such companies
and the United States Government and the services and
sacrifices of such employees to and for the United States,
and if legislative action is considered advisable, a proposal
for such action and an assessment of its costs.
(2) Other Content.--The Director of National Intelligence
shall include in the report any views of the Director of the
Central Intelligence Agency on the matters covered by the
report that the Director of the Central Intelligence Agency
considers appropriate.
(c) Assistance of Comptroller General.--The Comptroller
General of the United States shall, upon the request of the
Director of National Intelligence and in a manner consistent
with the protection of classified information, assist the
Director in the preparation of the report required by
subsection (a).
(d) Form.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified
annex.
(e) Definitions.--In this section:
(1) Air america.--The term ``Air America'' means Air
America, Incorporated.
(2) Associated company.--The term ``associated company''
means any company associated with or subsidiary to Air
America, including Air Asia Company Limited and the Pacific
Division of Southern Air Transport, Incorporated.

SEC. 416. SPACE INTELLIGENCE.

Section 102A of the National Security Act of 1947 (50
U.S.C. 403-1) as amended by sections 303, 304, and 411 of
this Act, is further amended by adding at the end the
following new subsection:
``(v) Consideration of Space Intelligence.--
``(1) In general.--The Director of National Intelligence
shall require that space-intelligence related issues and
concerns are fully considered in carrying out the authorities
of the intelligence community under this Act and under other
provisions of law, including in carrying out--
``(A) the responsibilities and authorities described under
subsections (f), (h), and (q); and
``(B) the creation of policy, and in the recruitment,
hiring, training, and retention of personnel.
``(2) Additional considerations.--The Director of National
Intelligence shall ensure that agencies give due
consideration to the vulnerability assessment prepared for a
given major system, as required in section 506C of this Act,
at all stages of architecture and system planning,
development, acquisition, operation, and support of a space-
intelligence system.''.

SEC. 417. OPERATIONAL FILES IN THE OFFICE OF THE DIRECTOR OF
NATIONAL INTELLIGENCE.

(a) In General.--Title VII of the National Security Act of
1947 (50 U.S.C. 431 et seq.) is amended by adding at the end
the following new section:

``OPERATIONAL FILES IN THE OFFICE OF THE DIRECTOR OF NATIONAL
INTELLIGENCE

``Sec. 706. (a) Records From Exempted Operational Files.--
(1) Any record disseminated or otherwise provided to an
element of the Office of the Director of National
Intelligence from the exempted operational files of elements
of the intelligence community designated in accordance with
this title, and any operational files created by the Office
of the Director of National Intelligence that incorporate
such record in accordance with subparagraph (A)(ii), shall

[[Page H14474]]

be exempted from the provisions of section 552 of title 5,
United States Code that require search, review, publication,
or disclosure in connection therewith, in any instance in
which--
``(A)(i) such record is shared within the Office of the
Director of National Intelligence and not disseminated by
that Office beyond that Office; or
``(ii) such record is incorporated into new records created
by personnel of the Office of the Director of National
Intelligence and maintained in operational files of the
Office of the Director of National Intelligence and such
record is not disseminated by that Office beyond that Office;
and
``(B) the operational files from which such record has been
obtained continue to remain designated as operational files
exempted from section 552 of title 5, United States Code.
``(2) The operational files of the Office of the Director
of National Intelligence referred to in paragraph (1)(A)(ii)
shall be substantially similar in nature to the originating
operational files from which the record was disseminated or
provided, as such files are defined in this title.
``(3) Records disseminated or otherwise provided to the
Office of the Director of National Intelligence from other
elements of the intelligence community that are not protected
by paragraph (1), and that are authorized to be disseminated
beyond the Office of the Director of National Intelligence,
shall remain subject to search and review under section 552
of title 5, United States Code, but may continue to be
exempted from the publication and disclosure provisions of
that section by the originating agency to the extent that
such section permits.
``(4) Notwithstanding any other provision of this title,
records in the exempted operational files of the Central
Intelligence Agency, the National Geospatial-Intelligence
Agency, the National Reconnaissance Office, the National
Security Agency, or the Defense Intelligence Agency shall not
be subject to the search and review provisions of section 552
of title 5, United States Code, solely because they have been
disseminated to an element or elements of the Office of the
Director of National Intelligence, or referenced in
operational files of the Office of the Director of National
Intelligence and that are not disseminated beyond the Office
of the Director of National Intelligence.
``(5) Notwithstanding any other provision of this title,
the incorporation of records from the operational files of
the Central Intelligence Agency, the National Geospatial-
Intelligence Agency, the National Reconnaissance Office, the
National Security Agency, or the Defense Intelligence Agency,
into operational files of the Office of the Director of
National Intelligence shall not subject that record or the
operational files of the Central Intelligence Agency, the
National Geospatial-Intelligence Agency, the National
Reconnaissance Office, the National Security Agency or the
Defense Intelligence Agency to the search and review
provisions of section 552 of title 5, United States Code.
``(b) Other Records.--(1) Files in the Office of the
Director of National Intelligence that are not exempted under
subsection (a) of this section which contain information
derived or disseminated from exempted operational files shall
be subject to search and review under section 552 of title 5,
United States Code.
``(2) The inclusion of information from exempted
operational files in files of the Office of the Director of
National Intelligence that are not exempted under subsection
(a) shall not affect the exemption of the originating
operational files from search, review, publication, or
disclosure.
``(3) Records from exempted operational files of the Office
of the Director of National Intelligence which have been
disseminated to and referenced in files that are not exempted
under subsection (a), and which have been returned to
exempted operational files of the Office of the Director of
National Intelligence for sole retention, shall be subject to
search and review.
``(c) Search and Review for Certain Purposes.--
Notwithstanding subsection (a), exempted operational files
shall continue to be subject to search and review for
information concerning any of the following:
``(1) 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.
``(2) Any special activity the existence of which is not
exempt from disclosure under the provisions of section 552 of
title 5, United States Code.
``(3) 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:
``(A) The Select Committee on Intelligence of the Senate.
``(B) The Permanent Select Committee on Intelligence of the
House of Representatives.
``(C) The Intelligence Oversight Board.
``(D) The Department of Justice.
``(E) The Office of the Director of National Intelligence.
``(F) The Office of the Inspector General of the
Intelligence Community.
``(d) Decennial Review of Exempted Operational Files.--(1)
Not less than once every 10 years, the Director of National
Intelligence shall review the operational files exempted
under subsection (a) to determine whether such files, or any
portion of such files, may be removed from the category of
exempted files.
``(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 the Director of
National Intelligence 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 the Director has conducted the review
required by paragraph (1) before the expiration of the 10-
year period beginning on the date of the enactment of the
Intelligence Authorization Act for Fiscal Year 2008 or before
the expiration of the 10-year period beginning on the date of
the most recent review.
``(B) Whether the Director of National Intelligence, in
fact, considered the criteria set forth in paragraph (2) in
conducting the required review.
``(e) Supersedure of Other Laws.--The provisions of this
section may not be superseded except by a provision of law
that is enacted after the date of the enactment of this
section and that specifically cites and repeals or modifies
such provisions.
``(f) Applicability.--The Director of National Intelligence
will publish a regulation listing the specific elements
within the Office of the Director of National Intelligence
whose records can be exempted from search and review under
this section.
``(g) Allegation; Improper Withholding of Records; Judicial
Review.--(1) Except as provided in paragraph (2), whenever
any person who has requested agency records under section 552
of title 5, United States Code, alleges that the Office of
the Director of National Intelligence 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.
``(2) Judicial review shall not be available in the manner
provided for under paragraph (1) as follows:
``(A) 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 the Office of the Director of National Intelligence, such
information shall be examined ex parte, in camera by the
court.
``(B) The court shall determine, to the fullest extent
practicable, the issues of fact based on sworn written
submissions of the parties.
``(C) 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.
``(D)(i) When a complainant alleges that requested records
were improperly withheld because of improper exemption of
operational files, the Office of the Director of National
Intelligence 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 responsive records currently meet the
criteria set forth in subsection (a).
``(ii) The court may not order the Office of the Director
of National Intelligence to review the content of any
exempted operational file or files in order to make the
demonstration required under clause (i), unless the
complainant disputes the Office's showing with a sworn
written submission based on personal knowledge or otherwise
admissible evidence.
``(E) In proceedings under subparagraph (C) or (D), a party
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.
``(F) If the court finds under this subsection that the
Office of the Director of National Intelligence has
improperly withheld requested records because of failure to
comply with any provision of this section, the court shall
order the Office 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 section.
``(G) If at any time following the filing of a complaint
pursuant to this paragraph the Office of the Director of
National Intelligence agrees to search the appropriate
exempted operational file or files for the requested records,
the court shall dismiss the claim based upon such
complaint.''.
(b) Clerical Amendment.--The table of contents in the first
section of the National Security Act of 1947 is amended by
inserting after the item relating to section 705 the
following new item:

``Sec. 706. Operational files in the Office of the Director of National
Intelligence.''.

SEC. 418. INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT
TO ADVISORY COMMITTEES OF THE OFFICE OF THE
DIRECTOR OF NATIONAL INTELLIGENCE.

Section 4(b) of the Federal Advisory Committee Act (5
U.S.C. App.) is amended--
(1) in paragraph (1), by striking ``or'';
(2) in paragraph (2), by striking the period and inserting
``; or''; and
(3) by adding at the end the following new paragraph:
``(3) the Office of the Director of National
Intelligence.''.

SEC. 419. APPLICABILITY OF THE PRIVACY ACT TO THE DIRECTOR OF
NATIONAL INTELLIGENCE AND THE OFFICE OF THE
DIRECTOR OF NATIONAL INTELLIGENCE.

Subsection (j) of section 552a of title 5, United States
Code, is amended--

[[Page H14475]]

(1) in paragraph (1), by striking ``or'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) maintained by the Office of the Director of National
Intelligence; or''.

SEC. 420. REPEAL OF CERTAIN AUTHORITIES RELATING TO THE
OFFICE OF THE NATIONAL COUNTERINTELLIGENCE
EXECUTIVE.

(a) Repeal of Certain Authorities.--Section 904 of the
Counterintelligence Enhancement Act of 2002 (title IX of
Public Law 107-306; 50 U.S.C. 402c) is amended--
(1) by striking subsections (d), (h), (i), and (j); and
(2) by redesignating subsections (e), (f), (g), (k), (l),
and (m) as subsections (d), (e), (f), (g), (h), and (i),
respectively; and
(3) in subsection (f), as redesignated by paragraph (2), by
striking paragraphs (3) and (4).
(b) Conforming Amendments.--Such section 904 is further
amended--
(1) in subsection (d), as redesignated by subsection (a)(2)
of this section, by striking ``subsection (f)'' each place it
appears in paragraphs (1) and (2) and inserting ``subsection
(e)''; and
(2) in subsection (e), as so redesignated--
(A) in paragraph (1), by striking ``subsection (e)(1)'' and
inserting ``subsection (d)(1)''; and
(B) in paragraph (2), by striking ``subsection (e)(2)'' and
inserting ``subsection (d)(2)''.
Subtitle B--Central Intelligence Agency

SEC. 431. REVIEW OF COVERT ACTION PROGRAMS BY INSPECTOR
GENERAL OF THE CENTRAL INTELLIGENCE AGENCY.

(a) In General.--Section 503 of the National Security Act
of 1947 (50 U.S.C. 413b) is amended by--
(1) redesignating subsection (e) as subsection (g) and
transferring such subsection to the end; and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Inspector General Audits of Covert Actions.--
``(1) In general.--Subject to paragraph (2), the Inspector
General of the Central Intelligence Agency shall conduct an
audit of each covert action at least every 3 years. Such
audits shall be conducted subject to the provisions of
paragraphs (3) and (4) of subsection (b) of section 17 of the
Central Intelligence Agency Act of 1949 (50 U.S.C. 403q).
``(2) Terminated, suspended programs.--The Inspector
General of the Central Intelligence Agency is not required to
conduct an audit under paragraph (1) of a covert action that
has been terminated or suspended if such covert action was
terminated or suspended prior to the last audit of such
covert action conducted by the Inspector General and has not
been restarted after the date on which such audit was
completed.
``(3) Report.--Not later than 60 days after the completion
of an audit conducted pursuant to paragraph (1), the
Inspector General of the Central Intelligence Agency shall
submit to the congressional intelligence committees a report
containing the results of such audit.''.
(b) Conforming Amendments.--Title V of the National
Security Act of 1947 (50 U.S.C. 413 et seq.) is amended--
(1) in section 501(f) (50 U.S.C. 413(f)), by striking
``503(e)'' and inserting ``503(g)'';
(2) in section 502(a)(1) (50 U.S.C. 413b(a)(1)), by
striking ``503(e)'' and inserting ``503(g)''; and
(3) in section 504(c) (50 U.S.C. 414(c)), by striking
``503(e)'' and inserting ``503(g)''.

SEC. 432. INAPPLICABILITY TO DIRECTOR OF THE CENTRAL
INTELLIGENCE AGENCY OF REQUIREMENT FOR ANNUAL
REPORT ON PROGRESS IN AUDITABLE FINANCIAL
STATEMENTS.

Section 114A of the National Security Act of 1947 (50
U.S.C. 404i-1) is amended by striking ``the Director of the
Central Intelligence Agency,''.

SEC. 433. ADDITIONAL FUNCTIONS AND AUTHORITIES FOR PROTECTIVE
PERSONNEL OF THE CENTRAL INTELLIGENCE AGENCY.

(a) In General.--Section 5(a)(4) of the Central
Intelligence Agency Act of 1949 (50 U.S.C. 403f(a)(4)) is
amended--
(1) by inserting ``(A)'' after ``(4)'';
(2) in subparagraph (A), as so designated--
(A) by striking ``and the protection'' and inserting ``the
protection''; and
(B) by striking the semicolon and inserting ``, and the
protection of the Director of National Intelligence and such
personnel of the Office of the Director of National
Intelligence as the Director of National Intelligence may
designate; and''; and
(3) by adding at the end the following new subparagraph:
``(B) Authorize personnel engaged in the performance of
protective functions authorized pursuant to subparagraph (A),
when engaged in, and in furtherance of, the performance of
such functions, to make arrests without warrant for any
offense against the United States committed in the presence
of such personnel, or for any felony cognizable under the
laws of the United States, if such personnel have reasonable
grounds to believe that the person to be arrested has
committed or is committing such felony, except that any
authority pursuant to this subparagraph may be exercised only
in accordance with guidelines approved by the Director and
the Attorney General and such personnel may not exercise any
authority for the service of civil process or for the
investigation of criminal offenses;''.
(b) Requirement To Report.--As soon as possible after the
date of an exercise of authority under subparagraph (B) of
section 5(a)(4) of the Central Intelligence Agency Act of
1949 (50 U.S.C. 403f(a)(4)), as added by subsection (a)(3),
and not later than 10 days after such date, the Director of
the Central Intelligence Agency shall submit to the
congressional intelligence committees a report describing
such exercise of authority.

SEC. 434. TECHNICAL AMENDMENTS RELATING TO TITLES OF CERTAIN
CENTRAL INTELLIGENCE AGENCY POSITIONS.

Section 17(d)(3)(B)(ii) of the Central Intelligence Agency
Act of 1949 (50 U.S.C. 403q(d)(3)(B)(ii)) is amended--
(1) in subclause (I), by striking ``Executive Director''
and inserting ``Associate Deputy Director'';
(2) in subclause (II), by striking ``Deputy Director for
Operations'' and inserting ``Director of the National
Clandestine Service'';
(3) in subclause (III), by striking ``Deputy Director for
Intelligence'' and inserting ``Director of Intelligence'';
(4) in subclause (IV), by striking ``Deputy Director for
Administration'' and inserting ``Director of Support''; and
(5) in subclause (V), by striking ``Deputy Director for
Science and Technology'' and inserting ``Director of Science
and Technology''.

SEC. 435. CLARIFYING AMENDMENTS RELATING TO SECTION 105 OF
THE INTELLIGENCE AUTHORIZATION ACT FOR FISCAL
YEAR 2004.

Section 105(b) of the Intelligence Authorization Act for
Fiscal Year 2004 (Public Law 108-177; 117 Stat. 2603; 31
U.S.C. 311 note) is amended--
(1) by striking ``Director of Central Intelligence'' and
inserting ``Director of National Intelligence''; and
(2) by inserting ``or in section 313 of such title,'' after
``subsection (a)),''.
Subtitle C--Defense Intelligence Components

SEC. 441. ENHANCEMENT OF NATIONAL SECURITY AGENCY TRAINING
PROGRAM.

Subsection (e) of section 16 of the National Security
Agency Act of 1959 (50 U.S.C. 402 note) is amended by
striking ``(1) When an employee'' and all that follows
through ``(2) Agency efforts'' and inserting ``Agency
efforts''.

SEC. 442. CODIFICATION OF AUTHORITIES OF NATIONAL SECURITY
AGENCY PROTECTIVE PERSONNEL.

The National Security Agency Act of 1959 (50 U.S.C. 402
note) is amended by adding at the end the following new
section:
``Sec. 21. (a) The Director of the National Security Agency
is authorized to designate personnel of the National Security
Agency to perform protective functions for the Director and
for any personnel of the Agency designated by the Director.
``(b)(1) In the performance of protective functions under
this section, personnel of the Agency designated to perform
protective functions pursuant to subsection (a) are
authorized, when engaged in, and in furtherance of, the
performance of such functions, to make arrests without a
warrant for--
``(A) any offense against the United States committed in
the presence of such personnel; or
``(B) any felony cognizable under the laws of the United
States if such personnel have reasonable grounds to believe
that the person to be arrested has committed or is committing
such felony.
``(2) The authority in paragraph (1) may be exercised only
in accordance with guidelines approved by the Director and
the Attorney General.
``(3) Personnel of the Agency designated to perform
protective functions pursuant to subsection (a) shall not
exercise any authority for the service of civil process or
the investigation of criminal offenses.
``(c) Nothing in this section shall be construed to impair
or otherwise affect any authority under any other provision
of law relating to the performance of protective functions.
``(d) As soon as possible after the date of an exercise of
authority under this section and not later than 10 days after
such date, the Director shall submit to the congressional
intelligence committees a report describing such exercise of
authority.
``(e) 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. 443. INSPECTOR GENERAL MATTERS.

(a) Coverage Under Inspector General Act of 1978.--
Subsection (a)(2) of section 8G of the Inspector General Act
of 1978 (5 U.S.C. App. 8G) is amended--
(1) by inserting ``the Defense Intelligence Agency,'' after
``the Corporation for Public Broadcasting,'';
(2) by inserting ``the National Geospatial-Intelligence
Agency,'' after ``the National Endowment for the
Humanities,''; and
(3) by inserting ``the National Reconnaissance Office, the
National Security Agency,'' after ``the National Labor
Relations Board,''.
(b) Certain Designations Under Inspector General Act of
1978.--Subsection (a) of section 8H of the Inspector General
Act of 1978 (5 U.S.C. App. 8H) is amended by adding at the
end the following new paragraph:
``(3) The Inspectors General of the Defense Intelligence
Agency, the National Geospatial-Intelligence Agency, the
National Reconnaissance Office, and the National Security
Agency shall be designees of the Inspector General of the
Department of Defense for purposes of this section.''.
(c) Power of Heads of Elements Over Investigations.--
Subsection (d) of section 8G of that Act--
(1) by inserting ``(1)'' after ``(d)'';
(2) in the second sentence of paragraph (1), as designated
by paragraph (1) of this subsection, by striking ``The head''
and inserting ``Except as provided in paragraph (2), the
head''; and
(3) by adding at the end the following new paragraph:
``(2)(A) The Secretary of Defense, in consultation with the
Director of National Intelligence,

[[Page H14476]]

may prohibit the Inspector General of an element of the
intelligence community specified in subparagraph (D) from
initiating, carrying out, or completing any audit or
investigation if the Secretary determines that the
prohibition is necessary to protect vital national security
interests of the United States.
``(B) If the Secretary exercises the authority under
subparagraph (A), the Secretary shall submit to the
committees of Congress specified in subparagraph (E) an
appropriately classified statement of the reasons for the
exercise of the authority not later than 7 days after the
exercise of the authority.
``(C) At the same time the Secretary submits under
subparagraph (B) a statement on the exercise of the authority
in subparagraph (A) to the committees of Congress specified
in subparagraph (E), the Secretary shall notify the Inspector
General of such element of the submittal of such statement
and, to the extent consistent with the protection of
intelligence sources and methods, provide the Inspector
General with a copy of such statement. The Inspector General
may submit to such committees of Congress any comments on a
notice or statement received by the Inspector General under
this subparagraph that the Inspector General considers
appropriate.
``(D) The elements of the intelligence community specified
in this subparagraph are as follows:
``(i) The Defense Intelligence Agency.
``(ii) The National Geospatial-Intelligence Agency.
``(iii) The National Reconnaissance Office.
``(iv) The National Security Agency.
``(E) The committees of Congress specified in this
subparagraph are--
``(i) the Committee on Armed Services and the Select
Committee on Intelligence of the Senate; and
``(ii) the Committee on Armed Services and the Permanent
Select Committee on Intelligence of the House of
Representatives.''.

SEC. 444. CONFIRMATION OF APPOINTMENT OF HEADS OF CERTAIN
COMPONENTS OF THE INTELLIGENCE COMMUNITY.

(a) Director of National Security Agency.--The National
Security Agency Act of 1959 (50 U.S.C. 402 note) is amended
by inserting after the first section the following new
section:
``Sec. 2. (a) There is a Director of the National Security
Agency.
``(b) The Director of the National Security Agency shall be
appointed by the President, by and with the advice and
consent of the Senate.
``(c) The Director of the National Security Agency shall be
the head of the National Security Agency and shall discharge
such functions and duties as are provided by this Act or
otherwise by law.''.
(b) Director of National Reconnaissance Office.--The
Director of the National Reconnaissance Office shall be
appointed by the President, by and with the advice and
consent of the Senate.
(c) Positions of Importance and Responsibility.--
(1) Designation of positions.--The President may designate
any of the positions referred to in paragraph (2) as
positions of importance and responsibility under section 601
of title 10, United States Code.
(2) Covered positions.--The positions referred to in this
paragraph are as follows:
(A) The Director of the National Security Agency.
(B) The Director of the National Reconnaissance Office.
(d) Effective Date and Applicability.--The amendments made
by subsections (a) and (b) shall take effect on the date of
the enactment of this Act and shall apply upon the earlier
of--
(1) the date of the nomination by the President of an
individual to serve in the position concerned, except that
the individual serving in such position as of the date of the
enactment of this Act may continue to perform such duties
after such date of nomination and until the individual
appointed to such position, by and with the advice and
consent of the Senate, assumes the duties of such position;
or
(2) the date of the cessation of the performance of the
duties of such position by the individual performing such
duties as of the date of the enactment of this Act.

SEC. 445. CLARIFICATION OF NATIONAL SECURITY MISSIONS OF
NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY FOR
ANALYSIS AND DISSEMINATION OF CERTAIN
INTELLIGENCE INFORMATION.

Section 442(a) of title 10, United States Code, is
amended--
(1) by redesignating paragraph (2) as paragraph (3);
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2)(A) As directed by the Director of National
Intelligence, the National Geospatial-Intelligence Agency
shall also develop a system to facilitate the analysis,
dissemination, and incorporation of likenesses, videos, and
presentations produced by ground-based platforms, including
handheld or clandestine photography taken by or on behalf of
human intelligence collection organizations or available as
open-source information, into the National System for
Geospatial Intelligence.
``(B) The authority provided by this paragraph does not
include authority for the National Geospatial-Intelligence
Agency to manage tasking of handheld or clandestine
photography taken by or on behalf of human intelligence
collection organizations.''; and
(3) in paragraph (3), as so redesignated, by striking
``paragraph (1)'' and inserting ``paragraphs (1) and (2)''.

SEC. 446. SECURITY CLEARANCES IN THE NATIONAL GEOSPATIAL-
INTELLIGENCE AGENCY.

The Secretary of Defense shall, during the period beginning
on the date of the enactment of this Act and ending on
December 31, 2008, delegate to the Director of the National
Geospatial-Intelligence Agency personnel security authority
with respect to the National Geospatial-Intelligence Agency
(including authority relating to the use of contractor
personnel in investigations and adjudications for security
clearances) that is identical to the personnel security
authority of the Director of the National Security Agency
with respect to the National Security Agency.
Subtitle D--Other Elements

SEC. 451. CLARIFICATION OF INCLUSION OF COAST GUARD AND DRUG
ENFORCEMENT ADMINISTRATION AS ELEMENTS OF THE
INTELLIGENCE COMMUNITY.

Section 3(4) of the National Security Act of 1947 (50
U.S.C. 401a(4)) is amended--
(1) in subparagraph (H)--
(A) by inserting ``the Coast Guard,'' after ``the Marine
Corps,''; and
(B) by inserting ``the Drug Enforcement Administration,''
after ``the Federal Bureau of Investigation,''; and
(2) in subparagraph (K), by striking ``, including the
Office of Intelligence of the Coast Guard''.
TITLE V--OTHER MATTERS
Subtitle A--General Intelligence Matters

SEC. 501. EXTENSION OF NATIONAL COMMISSION FOR THE REVIEW OF
THE RESEARCH AND DEVELOPMENT PROGRAMS OF THE
UNITED STATES INTELLIGENCE COMMUNITY.

(a) Extension.--
(1) In general.--Subsection (a) of section 1007 of the
Intelligence Authorization Act for Fiscal Year 2003 (Public
Law 107-306; 116 Stat. 2442) is amended by striking
``September 1, 2004'' and inserting ``December 31, 2008''.
(2) Effective date.--Subject to paragraph (3), the
amendment made by paragraph (1) shall take effect as if
included in the enactment of such section 1007.
(3) Commission membership.--
(A) In general.--The membership of the National Commission
for the Review of the Research and Development Programs of
the United States Intelligence Community established under
subsection (a) of section 1002 of such Act (Public Law 107-
306; 116 Stat. 2438) (referred to in this section as the
``Commission'') shall be considered vacant and new members
shall be appointed in accordance with such section 1002, as
amended by subparagraph (B).
(B) Technical amendment.--Paragraph (1) of subsection (b)
of such section 1002 is amended by striking ``The Deputy
Director of Central Intelligence for Community Management.''
and inserting ``The Principal Deputy Director of National
Intelligence.''.
(b) Funding.--
(1) In general.--Of the amounts authorized to be
appropriated by this Act for the Intelligence Community
Management Account, the Director of National Intelligence
shall make $2,000,000 available to the Commission to carry
out title X of the Intelligence Authorization Act for Fiscal
Year 2003 (Public Law 107-306; 116 Stat. 2437).
(2) Availability.--Amounts made available to the Commission
pursuant to paragraph (1) shall remain available until
expended.

SEC. 502. REPORT ON INTELLIGENCE ACTIVITIES.

Not later than 120 days after the date of the enactment of
this Act, the Director of National Intelligence shall submit
to the congressional intelligence committees a report
describing authorizations, if any, granted during the 10-year
period ending on the date of the enactment of this Act to
engage in intelligence activities related to the overthrow of
a democratically elected government.

SEC. 503. AERIAL RECONNAISSANCE PLATFORMS.

Section 133(b) of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364;
120 Stat. 2112) is amended--
(1) in paragraph (1)--
(A) by striking ``After fiscal year 2007'' and inserting
``For each fiscal year after fiscal year 2007''; and
(B) by inserting ``, in that fiscal year,'' after
``Secretary of Defense''; and
(2) in paragraph (2)--
(A) by inserting ``in a fiscal year'' after ``Department of
Defense''; and
(B) by inserting ``in that fiscal year'' after
``Congress''.
Subtitle B--Technical Amendments

SEC. 511. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES
CODE, ARISING FROM ENACTMENT OF THE
INTELLIGENCE REFORM AND TERRORISM PREVENTION
ACT OF 2004.

(a) References to Head of Intelligence Community.--Title
10, United States Code, is amended by striking ``Director of
Central Intelligence'' each place it appears and inserting
``Director of National Intelligence'' in the following:
(1) Section 193(d)(2).
(2) Section 193(e).
(3) Section 201(a).
(4) Section 201(b)(1).
(5) Section 201(c)(1).
(6) Section 425(a).
(7) Section 431(b)(1).
(8) Section 441(c).
(9) Section 441(d).
(10) Section 443(d).
(11) Section 2273(b)(1).
(12) Section 2723(a).
(b) Clerical Amendments.--Such title is further amended by
striking ``Director of Central Intelligence'' each place it
appears and inserting ``Director of National Intelligence''
in the following:
(1) Section 441(c).

[[Page H14477]]

(2) Section 443(d).
(c) Reference to Head of Central Intelligence Agency.--
Section 444 of such title is amended by striking ``Director
of Central Intelligence'' each place it appears and inserting
``Director of the Central Intelligence Agency''.

SEC. 512. TECHNICAL AMENDMENT TO THE CENTRAL INTELLIGENCE
AGENCY ACT OF 1949.

Section 5(a)(1) of the Central Intelligence Agency Act of
1949 (50 U.S.C. 403f(a)(1)) is amended by striking
``authorized under paragraphs (2) and (3) of section 102(a),
subsections (c)(7) and (d) of section 103, subsections (a)
and (g) of section 104, and section 303 of the National
Security Act of 1947 (50 U.S.C. 403(a)(2), (3), 403-3(c)(7),
(d), 403-4(a), (g), and 405)'' and inserting ``authorized
under section 104A of the National Security Act of 1947 (50
U.S.C. 403-4a).''.

SEC. 513. TECHNICAL AMENDMENTS RELATING TO THE MULTIYEAR
NATIONAL INTELLIGENCE PROGRAM.

(a) In General.--Subsection (a) of section 1403 of the
National Defense Authorization Act for Fiscal Year 1991 (50
U.S.C. 404b) is amended--
(1) in the heading, by striking ``Foreign''; and
(2) by striking ``foreign'' each place it appears.
(b) Responsibility of Director of National Intelligence.--
That section is further amended--
(1) in subsections (a) and (c), by striking ``Director of
Central Intelligence'' and inserting ``Director of National
Intelligence''; and
(2) in subsection (b), by inserting ``of National
Intelligence'' after ``Director''.
(c) Conforming Amendment.--The heading of that section is
amended to read as follows:

``SEC. 1403. MULTIYEAR NATIONAL INTELLIGENCE PROGRAM.''.

SEC. 514. TECHNICAL CLARIFICATION OF CERTAIN REFERENCES TO
JOINT MILITARY INTELLIGENCE PROGRAM AND
TACTICAL INTELLIGENCE AND RELATED ACTIVITIES.

Section 102A of the National Security Act of 1947 (50
U.S.C. 403-1) is amended--
(1) in subsection (c)(3)(A), by striking ``annual budgets
for the Joint Military Intelligence Program and for Tactical
Intelligence and Related Activities'' and inserting ``annual
budget for the Military Intelligence Program or any successor
program or programs''; and
(2) in subsection (d)(1)(B), by striking ``Joint Military
Intelligence Program'' and inserting ``Military Intelligence
Program or any successor program or programs''.

SEC. 515. TECHNICAL AMENDMENTS TO THE NATIONAL SECURITY ACT
OF 1947.

The National Security Act of 1947 (50 U.S.C. 401 et seq.)
is amended as follows:
(1) In section 102A (50 U.S.C. 403-1)--
(A) in subsection (d)--
(i) in paragraph (3), by striking ``subparagraph (A)'' in
the matter preceding subparagraph (A) and inserting
``paragraph (1)(A)'';
(ii) in paragraph (5)(A), by striking ``or personnel'' in
the matter preceding clause (i); and
(iii) in paragraph (5)(B), by striking ``or agency
involved'' in the second sentence and inserting ``involved or
the Director of the Central Intelligence Agency (in the case
of the Central Intelligence Agency)'';
(B) in subsection (l)(2)(B), by striking ``section'' and
inserting ``paragraph''; and
(C) in subsection (n), by inserting ``and Other'' after
``Acquisition''.
(2) In section 119(c)(2)(B) (50 U.S.C. 404o(c)(2)(B)), by
striking ``subsection (h)'' and inserting ``subsection (i)''.
(3) In section 705(e)(2)(D)(i) (50 U.S.C.
432c(e)(2)(D)(i)), by striking ``responsible'' and inserting
``responsive''.

SEC. 516. TECHNICAL AMENDMENTS TO THE INTELLIGENCE REFORM AND
TERRORISM PREVENTION ACT OF 2004.

(a) Amendments to National Security Intelligence Reform Act
of 2004.--The National Security Intelligence Reform Act of
2004 (title I of Public Law 108-458; 118 Stat. 3643) is
amended as follows:
(1) In section 1016(e)(10)(B) (6 U.S.C. 485(e)(10)(B)), by
striking ``Attorney General'' the second place it appears and
inserting ``Department of Justice''.
(2) In section 1071(e), by striking ``(1)''.
(3) In section 1072(b), in the subsection heading by
inserting ``Agency'' after ``Intelligence''.
(b) Other Amendments to Intelligence Reform and Terrorism
Prevention Act of 2004.--The Intelligence Reform and
Terrorism Prevention Act of 2004 (Public Law 108-458; 118
Stat. 3638) is amended as follows:
(1) In section 2001 (28 U.S.C. 532 note)--
(A) in subsection (c)(1), by inserting ``of'' before ``an
institutional culture'';
(B) in subsection (e)(2), by striking ``the National
Intelligence Director in a manner consistent with section
112(e)'' and inserting ``the Director of National
Intelligence in a manner consistent with applicable law'';
and
(C) in subsection (f), by striking ``shall,'' in the matter
preceding paragraph (1) and inserting ``shall''.
(2) In section 2006 (28 U.S.C. 509 note)--
(A) in paragraph (2), by striking ``the Federal'' and
inserting ``Federal''; and
(B) in paragraph (3), by striking ``the specific'' and
inserting ``specific''.

SEC. 517. TECHNICAL AMENDMENTS TO THE EXECUTIVE SCHEDULE.

(a) Executive Schedule Level II.--Section 5313 of title 5,
United States Code, is amended by striking the item relating
to the Director of Central Intelligence and inserting the
following new item:

``Director of the Central Intelligence Agency.''.
(b) Executive Schedule Level III.--Section 5314 of title 5,
United States Code, is amended by striking the item relating
to the Deputy Directors of Central Intelligence and inserting
the following new item:

``Deputy Director of the Central Intelligence Agency.''.
(c) Executive Schedule Level IV.--Section 5315 of title 5,
United States Code, is amended by striking the item relating
to the General Counsel of the Office of the National
Intelligence Director and inserting the following new item:

``General Counsel of the Office of the Director of National
Intelligence.''.
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:
Silvestre Reyes,
Alcee L. Hastings,
Leonard L. Boswell,
Bud Cramer,
Anna G. Eshoo,
Rush Holt,
C.A. Ruppersberger,
Mike Thompson,
Janice Schakowsky,
James R. Langevin,
Patrick J. Murphy.
From the Committee on Armed Services, for consideration of
defense tactical intelligence and related activities:
Ike Skelton,
John M. Spratt, Jr.,
Managers on the Part of the House.

John Rockefeller,
Dianne Feinstein,
Ron Wyden,
Evan Bayh,
Barbara A. Mikulski,
Russell D. Feingold,
Bill Nelson,
Sheldon Whitehouse,
Chuck Hagel,
Olympia J. Snowe,
As additional conferee:
Carl Levin,
Managers on the Part of the Senate.

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

The managers on the part of the Senate and the House at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the bill (H.R. 2082), to authorize
appropriations for fiscal year 2008 for intelligence and
intelligence-related activities of the United States
Government, the Intelligence Community Management Account,
and the Central Intelligence Agency Retirement and Disability
System, and for other purposes, submit the following joint
statement to the Senate and House in explanation of the
effect of the action agreed upon by the managers and
recommended in the accompanying conference report.
The classified nature of United States intelligence
activities precludes disclosure of details of budgetary
recommendations in this conference report. The managers have
therefore prepared a classified supplement to this conference
report that contains the classified annex to this conference
report and the classified Schedule of Authorizations.
The managers agree that the congressionally directed
actions described in the House bill, the Senate amendment,
the respective committee reports, and classified annexes
accompanying H.R. 2082 and S. 1538, should be undertaken to
the extent that such congressionally directed actions are not
amended, altered, substituted, or otherwise specifically
addressed in either this Joint Explanatory Statement or in
the classified annex to the conference report on the bill
H.R. 2082.
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.

TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

Section 101. Authorization of appropriations
Section 101 of the conference report authorizes
appropriations for fiscal year 2008 for the intelligence and
intelligence-related activities of a list of United States
Government departments, agencies, and other elements. Section
101 is identical to Section 101 of the House bill, and
similar to Section 101 of the Senate amendment.
Section 102. Classified schedule of authorizations
Section 102 provides that the details of the amounts
authorized to be Section 101 for intelligence and
intelligence-related activities for fiscal year 2008, and
(subject to Section 103) the personnel ceilings authorized
for fiscal year 2008, are contained in the classified
Schedule of Authorizations. The Schedule of Authorizations
will be made available to the Committees on Appropriations of
the Senate and House of Representatives and to the President.
Section 102 is similar to Section 102 of the House bill.
Section 102 of the Senate amendment had provided that
personnel authorizations for the Intelligence Community would
be in terms of personnel levels, expressed as full-time
equivalent positions, rather than personnel ceilings, as in
the House bill and

[[Page H14478]]

prior intelligence authorizations. The conferees followed the
House in this regard, but established in Section 103 an
authority during fiscal year 2008 for the management of the
personnel authorized under Section 102 as full-time
equivalents.
Section 103. Personnel ceiling adjustments
Section 103 provides procedures to enhance the flexibility
of the Director of National Intelligence (``DNI'') to manage
the personnel levels of the Intelligence Community.
Section 103(a) allows the DNI, 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 under Section 102 by an amount not to
exceed three percent of the total limit applicable to each
Intelligence Community element. Before the DNI may authorize
this increase, the DNI must determine that the action is
necessary to the performance of important intelligence
functions and notify the congressional intelligence
committees. Section 103 of the Senate amendment had provided
that this authority could extend to five percent. Section 103
of the House bill had set the additional amount at two
percent. The conference agreement of three percent is part of
a package of personnel flexibility mechanisms in Section 103.
Section 103(b) provides for a one-year transition in the
description of the personnel authorization in the annual
intelligence authorization, and the subsequent implementation
of that authorization by the DNI, from ``personnel ceilings''
to ``personnel levels expressed as full-time equivalent
positions.'' Although the DNI has not previously managed
Intelligence Community personnel limits in terms of full-time
equivalent positions, the conferees have determined that the
DNI should use this practice in the future to plan and manage
personnel levels within the Intelligence Community. The use
of full-time equivalent positions will allow Intelligence
Community elements to plan for and manage its workforce based
on overall hours of work, rather than number of employees, as
a truer measure of personnel levels. This approach is
consistent with general governmental practice and will
provide the DNI and Congress with a more accurate measurement
of personnel levels. For example, it will enable Intelligence
Community elements to count two half-time employees as
holding the equivalent of one full-time position, rather than
counting them as two employees against a ceiling.
To provide the DNI with time to address any difficulties
arising from counting by full-time equivalent positions
rather than personnel levels, the conferees agreed that
Sections 102 and 103 would allow, but do not require, the DNI
to manage personnel levels by full-time equivalent positions
in fiscal year 2008. One aspect of this transition will be
the consideration of the manner in which elements of the
Intelligence Community account for (or presently fail to
account for) a variety of part-time arrangements. These
include, but are not limited to, the circumstances set forth
in paragraph (2) of subsection 103(b): student or trainee
programs; reemployment of annuitants in the National
Intelligence Reserve Corps; joint duty rotational
assignments; and other full-time or part-time positions.
During their consideration of the DNI's request for
authority to manage personnel as full-time equivalents, the
congressional intelligence committees have learned that
practices within the Intelligence Community on the counting
of personnel are inconsistent, and include not counting
certain personnel at all against personnel ceilings. The
discretionary authority that is granted to the DNI during
fiscal year 2008 will permit the DNI to authorize
Intelligence Community elements to continue (but not expand)
for this one additional fiscal year their existing methods of
counting, or not counting, part-time employees against
personnel ceilings, while ensuring that by the beginning of
fiscal year 2009 there is a uniform and accurate method of
counting all Intelligence Community employees under a system
of personnel levels expressed as full-time equivalents. To
ensure that the transition is complete by the beginning of
fiscal year 2009, paragraph (4) of Section 103(b) provides
that the DNI shall express the personnel level for all
civilian employees of the Intelligence Community as full-time
equivalent positions in the congressional budget
justifications for that fiscal year.
Section 103(c) establishes authority that will enable the
DNI to reduce the number of Intelligence Community
contractors by providing the flexibility to add a comparable
number of government personnel to replace those contractor
employees. Section 103(c) accomplishes this by permitting the
DNI to authorize employment of additional personnel if the
head of an element in the Intelligence Community determines
that activities currently being performed by contractor
employees should be performed by government employees, the
DNI agrees with the determination, and the Director of OMB
approves. The DNI may not authorize this for more than ten
percent of the total number of personnel authorized for each
element of the Intelligence Community under Section 102,
except that within the Office of the DNI that limit shall be
five percent. Section 103(c) is similar to Section 103(b) of
the Senate amendment. The House bill did not have a similar
provision. The percentage limits on the authority are part of
the conferees' agreement.
Section 103(d) provides for notifications to the
congressional intelligence committees of the exercise of
authority under Sections 103(a) and 103(d).
Section 104. Intelligence Community Management Account
Section 104 authorizes the sum of $734,126,000 in fiscal
year 2008 for the Intelligence Community Management Account
of the Director of National Intelligence. The
Intelligence Community Management Account is part of the
Community Management Account. The section authorizes 952
full-time or full-time equivalent personnel for the
Intelligence Community Management Account, who may be
either permanent employees or individuals detailed from
other elements of the United States Government. Section
104 also authorizes additional funds and personnel in the
classified Schedule of Authorizations for the Community
Management Account. Section 104 is similar to Section 104
of the Senate amendment and Section 104 of the House bill.
As in Section 104 of the Senate amendment, the DNI may use
the authorities in Section 103 to adjust personnel levels in
elements within the Intelligence Community Management
Account, subject to the limitations in that section.
Section 104 also authorizes funds from the Intelligence
Community Management Account for the National Drug
Intelligence Center (``NDIC''). These funds may not be used
for purposes of exercising police, subpoena, or law
enforcement powers or internal security functions. This
provision authorizing funds for NDIC was included in Section
104 of the House bill, but was not included in Section 104 of
the Senate amendment.
Section 105. Specific authorization of funds within the
National Intelligence Program for which fiscal year 2008
appropriations exceed amounts authorized
Section 105 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 within the National Intelligence Program in
fiscal year 2008 in excess of the amount specified for such
activity in the classified Schedule of Authorizations (as
described in greater detail in the Classified Annex) to
accompany this conference report. Under this authority, funds
appropriated for a specific purpose but not authorized for
that purpose will still be available for use by the
Intelligence Community but can be applied only to other
intelligence activities within the National Intelligence
Program under established reprogramming procedures.

TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Section 201. Authorization of appropriations
Section 201 authorizes appropriations of $262,500,000 for
the Central Intelligence Agency Retirement and Disability
Fund. Section 201 of the House bill and Section 201 of the
Senate amendment are identical.
Section 202. Technical modification to mandatory retirement
provision of Central Intelligence Agency Retirement Act
Section 202 updates the Central Intelligence Agency
Retirement Act to reflect the use of pay levels within the
Senior Intelligence Service program, rather than pay grades,
by the Central Intelligence Agency (``CIA''). Section 202 is
identical to Section 202 of the Senate amendment, and
substantially similar to Section 202 of the House bill.

TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

Subtitle A--Personnel Matters

Section 301. Increase in employee compensation and benefits
authorized by law
Section 301 provides that funds authorized to be
appropriated 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 compensation or benefits authorized by law.
Section 301 is identical to Section 301 of the Senate
amendment and the House bill.
Section 302. Enhanced flexibility in non-reimbursable details
to elements of the Intelligence Community
Section 302 expands from one year to up to two years the
length of time that United States Government personnel may be
detailed to the Office of the Director of National
Intelligence (``ODNI'') on a reimbursable or non-reimbursable
basis under which the employee continues to be paid by the
home agency. To utilize this authority, the joint agreement
of the DNI and head of the detailing element is required. As
explained by the DNI, this authority will provide flexibility
for the ODNI to receive support from other elements of the
Intelligence Community for community-wide activities where
both the home agency and the ODNI would benefit from the
detail.
Section 308 of the Senate amendment would have expanded the
time available for reimbursable or non-reimbursable details
to three years. Section 104 of the House bill allowed non-
reimbursable details of less than one year. The conferees
agreed to a two-year maximum for reimbursable or non-
reimbursable details.
Section 303. Multi-level security clearances
Section 303 adds a provision to section 102A of the
National Security Act of 1947 (50

[[Page H14479]]

U.S.C. 403-1), which generally sets forth the
responsibilities and authorities of the Director of National
Intelligence. The new provision states that the DNI shall be
responsible for ensuring that the elements of the
Intelligence Community adopt a multi-level clearance approach
that allows for clearances consistent with the protection of
national security that can be tailored to particular
circumstances in order to enable the more effective and
efficient use of persons proficient in foreign languages or
with cultural, linguistic, or other subject matter expertise
that is critical to national security.
Section 303 is based on Section 406 of the House bill. The
Senate amendment did not have a comparable provision. Under
the House provision, the DNI would have been required to
establish a multi-level clearance system throughout the
Intelligence Community. Pursuant to the conference amendment,
the DNI shall, within six months of enactment, issue
guidelines to the Intelligence Community to support and
facilitate the implementation of a multi-level approach
across the Intelligence Community.
Section 304. Pay authority for critical positions
Section 304 adds a new subsection to section 102A of the
National Security Act of 1947 (50 U.S.C. 403-1) to provide
enhanced pay authority for critical positions in portions of
the Intelligence Community where that authority does not now
exist. It allows the DNI to authorize the head of a
department or agency with an Intelligence Community element
to fix a rate of compensation in excess of applicable limits
with respect to a position that requires an extremely high
level of expertise and is critical to accomplishing an
important mission. A rate of pay higher than Executive Level
II would require written approval of the DNI. A rate higher
than Executive Level I would require written approval of the
President in response to a DNI request. Section 304 is
identical to the corresponding portion of Section 405 of the
Senate amendment. The House bill did not have a comparable
provision.
The section of the Senate bill that contained this pay
authority also would have provided additional authority to
enable the DNI to harmonize personnel rules in the
Intelligence Community. It would have enabled the DNI, with
the concurrence of a department or agency head, to convert
competitive service positions and incumbents within an
Intelligence Community element to excepted positions. It also
would have granted authority to the DNI to authorize
Intelligence Community elements--with concurrence of the
concerned department or agency heads and in coordination with
the Director of the Office of Personnel Management--to adopt
compensation, performance, management, and scholarship
authority that have been authorized for any other
Intelligence Community element. The conferees recommend that
these proposals be studied further during consideration of
the fiscal year 2009 authorization.
Section 305. Delegation of authority for travel on common
carriers for intelligence collection personnel
Section 116 of the National Security Act of 1947 (50 U.S.C.
404k) allows the DNI to authorize travel on any common
carrier when it is consistent with Intelligence Community
mission requirements or, more specifically, is required for
cover purposes, operational needs, or other exceptional
circumstances. As presently written, the DNI may only
delegate this authority to the Principal Deputy DNI
(``PDDNI'') or, with respect to CIA employees, to the
Director of the CIA.
Section 305 provides that the DNI may delegate the
authority in section 116 of the National Security Act of 1947
to the head of any element. This expansion is consistent with
the view of the conferees that the DNI should be able to
delegate authority throughout the Intelligence Community when
such delegation serves the overall interests of the
Intelligence Community.
Section 305 also provides that the head of an Intelligence
Community element to which travel authority has been
delegated is empowered to delegate it to senior officials of
the element as specified in guidelines issued by the DNI.
This allows for administrative flexibility consistent with
the guidance of the DNI for the entire Intelligence
Community. To facilitate oversight, the DNI shall submit the
guidelines to the congressional intelligence committees.
Section 305 is identical to Section 304 of the Senate
amendment and substantially the same as Section 306 of the
House bill.
Section 306. Annual personnel level assessments for the
Intelligence Community
Section 306 requires the Director of National Intelligence,
in consultation with the head of the element of the
Intelligence Community concerned, to prepare an annual
assessment of the personnel and contractor levels for each
element of the Intelligence Community for the following
fiscal year. Section 306 is a new mechanism to allow both the
Executive branch and Congress to better oversee personnel
growth in the Intelligence Community. Section 306 combines
elements from Section 315 of the Senate amendment, and
Sections 411 and 414 of the House bill.
The assessment required by Section 306 seeks information
about budgeted personnel and contractor costs and levels, a
comparison of this information to current fiscal year and
historical five year data, and a written justification for
the requested personnel and contractor levels. The assessment
also requires the DNI to state that, based on current and
projected funding, the element will have sufficient internal
infrastructure and training resources to support the
requested personnel and contractor levels, and sufficient
funding to support the administrative and operational
activities of the requested personnel levels. All of this
information was required in Section 315 of the Senate
amendment. Section 306 also requires that the assessment
contain information about intelligence collectors and
analysts employed or contracted by each element of the
Intelligence Community, and contractors who are the subjects
of an Inspector General investigation, information that was
requested in Sections 414 and 411, respectively, of the House
bill. The assessment must be submitted to congressional
intelligence committees with the submission of the
President's budget request.
The conferees believe that the personnel level assessment
required by Section 306 will provide information necessary
for the Executive branch and Congress to understand the
consequences of modifying the Intelligence Community's
personnel levels. Section 306 therefore recognizes that,
although the conferees supported personnel growth in the
post-September 11, 2001 period, personnel growth must be
better planned in the future to accomplish the goals of
strengthening intelligence collection, analysis, and
dissemination. In addition, the Administration must
adequately fund its personnel growth plan, and structure its
resources, to ensure that personnel growth is not done at the
expense of other programs.
With regard to historical contractor levels to be included
in the annual assessments, the DNI has expressed concern that
there was no completed effort, prior to the ODNI's contractor
inventory initiated in June 2006, to comprehensively capture
information on the number and costs of contractors throughout
the Intelligence Community. Although the Intelligence
Community has not adequately focused on this issue in past
years, the conferees believe it is important to require the
DNI to attempt to assess historical contractor levels.
Because of the concerns outlined by the DNI, however,
conferees understand that information about contractor levels
prior to June 2006 may need to be reported as a best
estimate.
The conferees are also concerned about the Intelligence
Community's increasing reliance on contractors to meet
mission requirements. The Intelligence Community employs a
significant number of ``core'' contractors who provide direct
support to Intelligence Community mission areas and are
generally indistinguishable from the United States Government
personnel whose mission they support. Because of the cost
disparity between employing a United States civilian
employee, estimated to cost an average of $126,500 annually,
and a core contractor, estimated to cost an average of
$250,000 annually, the conferees believe that the
Intelligence Community should strive to reduce its dependence
on contractors. The personnel assessment required in Section
306 should assist the DNI and the congressional intelligence
committees in determining the appropriate balance of
contractors and permanent government employees.
Section 307. Comprehensive report on Intelligence Community
contractors
Section 307 requires the DNI to provide a one-time report
by March 31, 2008, describing the personal services
activities performed by contractors across the Intelligence
Community, the impact of contractors on the Intelligence
Community, and the accountability mechanisms that govern
contractors.
Intelligence Community leaders continue to lack an adequate
factual and policy basis for controlling the size and use of
its large contractor workforce. Among other things, the
Intelligence Community lacks a clear definition of the
functions that may be appropriately performed by contractors
and, as a result, whether contractors are performing
functions that should be performed by government employees.
Generally, the conferees are concerned that the Intelligence
Community does not have procedures for overseeing contractors
and ensuring the identification of criminal violations or the
prevention and redress of financial waste, fraud, or other
abuses by contractors. The report is intended to help both
the Intelligence Community and the congressional intelligence
committees identify the facts and chart solutions. The report
should also address the DNI's plans for conversion of
contractors into employees under the authority provided in
Section 103 of this Act.
Section 307 is based on Section 411 of the House bill.
Section 411 would have required an annual report on the
oversight of Intelligence Community contractors, and three
separate one-time reports on accountability mechanisms
governing Intelligence Community contractors, the impact of
contractors on the Intelligence Community workforce, and the
use of contractors for intelligence activities. The Senate
amendment had addressed reporting on contractors in Section
315 of the Senate amendment. The conferees consolidated these
reporting requirements into the single report required by
Section 307 and the annual assessment on consideration of the
levels of the contractor workforce in Section 306.
Section 308. Report on proposed pay-for-performance
Intelligence Community personnel management system
Section 308 prohibits the implementation of pay-for-
performance compensation reform

[[Page H14480]]

within an element of the Intelligence Community until 45 days
after the DNI submits to the Congress a detailed plan for the
implementation of the compensation plan at the particular
element of the Intelligence Community in question. The DNI
voiced concern that Section 307 of the House bill would have
prohibited the heads of the elements of the Intelligence
Community from implementing tailored pay plans under other
existing statutory authorities and would have hindered DNI
efforts to establish a program within the Intelligence
Community ``to provide common pay, performance evaluation and
benefits throughout the Community.'' By agreeing that the
requirements of Section 308 would be applicable on an
element-by-element basis, the conferees sought to ensure that
plans for elements that are ready to proceed are not delayed
by the planning requirements for elements that are not ready
to proceed. With regard to the objective of providing for
common pay, performance evaluation, and benefits throughout
the Intelligence Community, the conferees added as an item of
each report how the implementation of pay-for-performance in
the element is consistent with the DNI's overall plans for a
performance-based compensation system.
The Senate amendment had no comparable provision.
Section 309. Report on plan to increase diversity within the
Intelligence Community
Section 309 requires the DNI, in coordination with the
heads of the elements of the Intelligence Community, to
submit to the congressional intelligence committees a report
on the plans of each element of the Intelligence Community,
including the Office of the DNI (``ODNI''), to increase
diversity within that element. The report shall include the
specific implementation plans to increase diversity.
Section 308 of the House bill had required the DNI to
submit a strategic plan to increase diversity within the
Intelligence Community and had prohibited the expenditure of
more than 80 percent of the amount appropriated to the
Intelligence Community Management Fund until the report was
delivered to Congress. The conferees altered the requirements
of Section 308 of the House bill to recognize the information
submitted to the congressional intelligence committees by the
DNI following passage of the House bill, and to tailor the
provision to obtain other information sought by the
congressional intelligence committees. To ensure that the
report is submitted in a timely fashion, Section 309 now
requires the DNI to submit the report by no later than
March 31, 2008.
The Senate amendment had no comparable provision.

Subtitle B--Acquisition Matters

Section 311. Vulnerability assessments of major systems
Section 311 adds a new oversight mechanism to the National
Security Act of 1947 (50 U.S.C. 442 et seq.) that requires
the DNI to conduct an initial vulnerability assessment and
subsequent assessments of every major system and its
significant items of supply in the National Intelligence
Program (``NIP''). The intent of the provision is to provide
Congress and the DNI with an accurate assessment of the
unique vulnerabilities and risks associated with each
National Intelligence Program major system to allow a
determination of whether funding for a particular major
system should be modified or discontinued. The vulnerability
assessment process will also require the various elements of
the Intelligence Community responsible for implementing major
systems to give due consideration to the risks and
vulnerabilities associated with such implementation.
Section 311 requires the DNI to conduct an initial
vulnerability assessment on every major system proposed for
the NIP prior to completion of Milestone B or an equivalent
acquisition decision. The minimum requirements of the initial
vulnerability assessment are fairly broad and intended to
provide the DNI with significant flexibility in crafting an
assessment tailored to the proposed major system. Thus, the
DNI is required to use at a minimum, an analysis-based
approach to identify vulnerabilities, define exploitation
potential, examine the system's potential effectiveness,
determine overall vulnerability, and make recommendations for
risk reduction. The DNI is obviously free to adopt a more
rigorous methodology for the conduct of initial vulnerability
assessments.
Vulnerability assessment should continue through the life
of a major system. Numerous factors and considerations can
affect the viability of a given major system. For that
reason, Section 311 provides the DNI with the flexibility to
set a schedule of subsequent vulnerability assessments for
each major system when the DNI submits the initial
vulnerability assessment to the congressional intelligence
committees. The time period between assessments should depend
upon the unique circumstances of a particular major system.
For example, a new major system that is implementing some
experimental technology might require annual assessments
while a more mature major system might not need such frequent
reassessment. The DNI is also permitted to adjust a major
system's assessment schedule when the DNI determines that a
change in circumstances warrants the issuance of a subsequent
vulnerability assessment. Section 311 also provides that a
congressional intelligence committee may request the DNI to
conduct a subsequent vulnerability assessment of a major
system.
The minimum requirements for a subsequent vulnerability
assessment are almost identical to those of an initial
vulnerability assessment. There are only two additional
requirements. First, if applicable to the given major system
during its particular phase of development or production, the
DNI must also use a testing-based approach to assess the
system's vulnerabilities. Obviously, common sense needs to
prevail here. For example, the testing approach is not
intended to require the ``crash testing'' of a satellite
system. Nor is it intended to require the DNI to test system
hardware. However, the vulnerabilities of a satellite's
significant items of supply might be exposed by a rigorous
testing regime. Second, the subsequent vulnerability
assessment is required to monitor the exploitation potential
of the major system. Thus, a subsequent vulnerability
assessment should monitor ongoing changes to vulnerabilities
and understand the potential for exploitation. Since new
vulnerabilities can become relevant and the characteristics
of existing vulnerabilities can change, it is necessary to
monitor both existing vulnerabilities and their
characteristics, and to check for new vulnerabilities on a
regular basis.
Section 311 requires the DNI to give due consideration to
the vulnerability assessments prepared for the major systems
within the NIP. It also requires that the vulnerability
assessments be provided to the congressional intelligence
committees within ten days of their completion. The conferees
encourage the DNI to also share the results of these
vulnerabilities assessments, as appropriate, with other
congressional committees of jurisdiction.
Finally, the section contains definitions for the terms
``items of supply,'' ``major system,'' ``Milestone B,'' and
``vulnerability assessment.''
Section 311 is similar to Section 310 of the Senate
amendment. The House bill had no similar provision.
Section 312. Business enterprise architecture and business
system modernization for the Intelligence Community
Section 312 requires the DNI to create a business
enterprise architecture that defines all Intelligence
Community business systems, as well as the functions and
activities supported by those business systems, in order to
guide with sufficient detail the implementation of
interoperable Intelligence Community business system
solutions. The conferees expect the DNI will include
Department of Defense representatives in the established
forum as appropriate. The conferees agreed that the business
enterprise architecture and transition plan are to be
submitted to the congressional intelligence committees by
September 1, 2008. The acquisition strategy, however, is to
be submitted by March 1, 2008.
Section 312 will provide the congressional oversight
committees the assurance that business systems that cost more
than a million dollars and that receive more than 50 percent
of their funding from the National Intelligence Program will
be efficiently and effectively coordinated. It will also
provide a list of all ``legacy systems'' that will be either
terminated or transitioned into the new architecture.
Further, this section will require the DNI to report to the
Committee no less often than annually, for five years, on the
progress being made in successfully implementing the new
architecture.
Section 312 is similar to Section 312 of the Senate
amendment. The House bill had no similar provision.
Section 313. Reports on acquisition of major systems
Section 313 amends Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.) to require annual reports from
the DNI for each major system acquisition by an element of
the Intelligence Community.
These reports must include, among other items, information
about the current total acquisition cost for such system, the
development schedule for the system including an estimate of
annual development costs until development is completed, the
planned procurement schedule for the system, including the
best estimate of the DNI of the annual costs and units to be
procured until procurement is completed, a full life-cycle
cost analysis for such system, and the result of any
significant test and evaluation of such major system as of
the date of the submittal of such report.
Section 313 includes definitions for ``acquisition cost,''
``full life-cycle cost,'' ``major contract,'' ``major
system,'' and ``significant test and evaluation.''
Section 313 is similar to Section 313 of the Senate
amendment. The House bill had no similar provision.
Section 314. Excessive cost growth of major systems
Section 314 amends Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.) to require that, in addition to
the report required under Section 313, the program manager of
a major system acquisition project shall determine on a
continuing basis if the acquisition cost of such major system
has increased by at least 25 percent as compared to the
baseline of such major system. The program manager must
inform the DNI of any such determination and the DNI must
submit a written notification to the congressional
intelligence committees if the DNI makes the same such
determination.
Section 314 is intended to mirror the Nunn-McCurdy
provision in Title 10 of the United

[[Page H14481]]

States Code that applies to major defense acquisition
programs. The conferees envision that the determination will
be done as needed by the program manager of the major system
acquisition and should not wait until the time that the DNI's
annual report is filed. In other words, the conferees expect
the congressional intelligence committees to be advised on a
regular basis by the DNI about the progress and associated
costs of major system acquisitions within the Intelligence
Community.
If the cost growth is 25 percent or more, the DNI must
prepare a notification and submit, among other items, an
updated cost estimate to the congressional intelligence
committees, and a certification that the acquisition is
essential to national security, there are no other
alternatives that will provide equal or greater intelligence
capability at equal or lesser cost to completion, the new
estimates of the full life-cycle cost for such major system
are reasonable, and the structure for the acquisition of such
major system is adequate to manage and control full life-
cycle cost of such major system.
If the program manager makes a determination that the
acquisition cost has increased by 50 percent or more as
compared to the baseline, and the DNI makes the same such
determination, then the DNI must submit a written
certification to certify the same four items as described
above, as well as an updated notification and accompanying
information. If the required certification, at either the 25
percent or 50 percent level, is not submitted to the
congressional intelligence committees within 60 days of the
DNI's determination of cost growth, Section 318 creates a
mechanism in which funds cannot be obligated for a period of
time. If Congress does not act during that period, then the
acquisition may continue.
Section 314 is similar to Section 314 of the Senate
amendment. The House bill had no similar provision.

Subtitle C--Other Matters

Section 321. Restriction on conduct of intelligence
activities
Section 321 provides that the authorization of
appropriations by the Act shall not be deemed to constitute
authority for the conduct of any intelligence activity that
is not otherwise authorized by the Constitution and the laws
of the United States. Section 321 is identical to Sections
302 of the Senate amendment and the House bill.
Section 322. Clarification of definition of Intelligence
Community under the National Security Act of 1947
Section 322 amends Section 3(4)(L) of the National Security
Act of 1947 (50 U.S.C. 401a(4)(L)) to permit the designation
as ``element of the intelligence community'' of elements of
departments and agencies of the United States Government
whether or not those departments and agencies are listed in
Section 3(4). Section 322 is identical to Section 303 of the
Senate amendment and the House bill.
Section 323. Modification of availability of funds for
different intelligence activities
Section 323 conforms the text of Section 504(a)(3)(B) of
the National Security Act of 1947 (50 U.S.C. 414(a)(3)(B)
(governing the funding of intelligence activities)) with the
text of Section 102A(d)(5)(A)(ii) of that Act (50 U.S.C. 403-
1(d)(5)(A)(ii)), as amended by Section 1011(a) of the
Intelligence Reform and Terrorism Prevention Act of 2004,
Pub. L. No. 108-458 (Dec. 17, 2004) (``Intelligence Reform
Act'') (governing the transfer and reprogramming by the DNI
of certain intelligence funding).
This amendment to the National Security Act replaces the
``unforeseen requirements'' standard in Section 504(a)(3)(B)
with a more flexible standard to govern reprogrammings and
transfers of funds authorized for a different intelligence or
intelligence-related activity. Under the new standard, a
reprogramming or transfer is authorized if, in addition to
the other requirements of Section 504(a)(3), the new use of
funds ``supports an emergent need, improves program
effectiveness, or increases efficiency.'' This modification
brings the standard for reprogrammings and transfers of
intelligence funding into conformity with the standards
applicable to reprogrammings and transfers under Section 102A
of the National Security Act of 1947. The modification
preserves congressional oversight of proposed reprogrammings
and transfers while enhancing the Intelligence Community's
ability to carry out missions and functions vital to national
security. Section 323 is identical to Sections 305 of the
Senate amendment and the House bill.
Section 324. Protection of certain national security
information
Section 324 amends the National Security Act of 1947 in two
respects. Section 324(a) amends Section 601 of the National
Security Act of 1947 (50 U.S.C. 421) to increase the criminal
penalties for individuals with authorized access to
classified information who intentionally disclose any
information identifying a covert agent, if those individuals
know that the United States is taking affirmative measures to
conceal the covert agent's intelligence relationship to the
United States. Currently, the maximum sentence for disclosure
by someone who has had ``authorized access to classified
information that identifies a covert agent'' is ten years.
Subsection (a)(1) increases that maximum sentence to 15
years. Currently, the maximum sentence for disclosure by
someone who ``as a result of having authorized access to
classified information, learns the identity of a covert agent
and intentionally discloses any information identifying such
covert agent'' is five years. Subsection (a)(2) increases
that maximum sentence to ten years. Section 324(a) is
identical to Section 306 of the Senate amendment. The House
bill had no comparable provision.
Section 324(b) amends Section 603(a) of the National
Security Act of 1947 (50 U.S.C. 423(a)) to provide that the
annual report from the President on the protection of
identities of certain United States undercover intelligence
officers, agents, informants, and sources, also include an
assessment of the need for any modification for the purpose
of improving legal protections for covert agents. Section
324(b) is identical to Section 309 of the House bill. The
Senate amendment had no similar provision.
Section 325. Extension of authority to delete information
about receipt and disposition of foreign gifts and
decorations
Current law (5 U.S.C. 7342) requires that certain federal
``employees''--a term that generally applies to all
Intelligence Community officials and personnel and certain
contractors, spouses, dependents, and others--file reports
with their employing agency regarding receipt of gifts or
decorations from foreign governments. Following compilation
of these reports, the employing agency is required to file
annually with the Secretary of State detailed information
about the receipt of foreign gifts and decorations by its
employees, including the source of the gift. The Secretary of
State is required to publish a comprehensive list of the
agency reports in the Federal Register.
With respect to Intelligence Community activities, public
disclosure of gifts or decorations in the Federal Register
has the potential to compromise intelligence sources (e.g.,
confirmation of an intelligence relationship with a foreign
government) and could undermine national security.
Recognizing this concern, the Director of Central
Intelligence (``DCI'') was granted a limited exemption from
reporting certain information about such foreign gifts or
decorations where the publication of the information could
adversely affect United States intelligence sources. Section
1079 of the Intelligence Reform Act extended a similar
exemption to the DNI in addition to applying the existing
exemption to the CIA Director.
Section 325 provides to the heads of each Intelligence
Community element the same limited exemption from specified
public reporting requirements that is currently authorized
for the DNI and CIA Director. The national security concerns
that prompt those exemptions apply equally to other
Intelligence Community elements. Section 325 mandates that
the information not provided to the Secretary of State be
provided to the DNI to ensure continued independent oversight
of the receipt by Intelligence Community personnel of foreign
gifts or decorations. The conferees agreed to require the DNI
to keep a record of such information. Section 325 is
otherwise similar to Section 307 of the Senate amendment and
Section 304 of the House bill.
Gifts received in the course of ordinary contact between
senior officials of elements of the Intelligence Community
and their foreign counterparts should not be excluded under
the provisions of Section 325 unless there is a serious
concern that such contacts and gifts would adversely affect
United States intelligence sources or methods.
Section 326. Report on compliance with the Detainee Treatment
Act of 2005 and the Military Commissions Act of 2006
Section 326 requires the DNI to submit a classified
comprehensive report to the congressional intelligence
committees on all measures taken by the ODNI and by any
Intelligence Community element with relevant responsibilities
on compliance with detention and interrogation provisions of
the Detainee Treatment Act of 2005 and the Military
Commissions Act of 2006. The report is to be submitted no
later than 45 days after enactment of this Act.
The Detainee Treatment Act provides that no individual in
the custody or under the physical control of the United
States, regardless of nationality or physical location, shall
be subject to cruel, inhuman, or degrading treatment.
Congress reaffirmed this mandate in Section 6 of the
Military Commissions Act, adding an implementation
mechanism that requires the President to take action to
ensure compliance including through administrative rules
and procedures. Section 6 provides not only that grave
breaches of Common Article 3 of the Geneva Conventions are
war crimes under Title 18 of the United States Code, but
also that the President has authority for the United
States to promulgate higher standards and administrative
regulations for violations of U.S. treaty obligations. It
requires the President to issue those interpretations by
Executive Order published in the Federal Register.
The report required by Section 326 is to include a
description of the detention or interrogation methods that
have been determined to comply with the prohibitions of the
Detainee Treatment Act and the Military Commissions Act or
have been discontinued pursuant to them.
The Detainee Treatment Act also provides for the protection
against civil or criminal liability for United States
Government personnel who had engaged in officially authorized
interrogations that were determined to be lawful at the time.
Section 326 requires the DNI to report on actions taken to
implement that provision.

[[Page H14482]]

The report shall also include an appendix containing all
guidelines on the application of the Detainee Treatment Act
and the Military Commissions Act to the detention or
interrogation activities, if any, of any Intelligence
Community element. The appendix shall also include the legal
justifications of any office of the Department of Justice
about the meaning of the Acts with respect to detention or
interrogation activities, if any, of any Intelligence
Community element. The conferees struck the requirement from
Section 309 of the Senate amendment that the appendix contain
the legal justifications of ``any official of the Department
of Justice'' to accommodate the concern that this provision
might compel the production of internal deliberative legal
materials. This provision therefore seeks only the legal
justifications of any office of the Department of Justice
that rendered an opinion on the matter.
To the extent that the report required by Section 326
addresses an element of the Intelligence Community within the
Department of Defense, that portion of the report, and
associated material that is necessary to make that portion
understandable, shall also be submitted by the DNI to the
congressional armed services committees.
Section 326 is similar to Section 309 of the Senate
amendment. The House bill had no similar provision.
Section 327. Limitation on interrogation techniques
Section 327 prohibits the use of any interrogation
treatment or technique not authorized by the United States
Army Field Manual on Human Intelligence Collector Operations
(``U.S. Army Field Manual'') against any individual in the
custody or effective control of any element of the
Intelligence Community. This limitation on interrogation
conducted by Intelligence Community personnel is similar to
the limitation on interrogation conducted by Department of
Defense personnel in Section 1002(a) of the Detainee
Treatment Act of 2005 (42 U.S.C. 2000dd-0(a)).
Section 327 was adopted as an amendment at the conference
after significant deliberation in the past year by both
congressional intelligence committees of the legality and
effectiveness of CIA's detention and interrogation program.
The congressional intelligence committees have held numerous
hearings on interrogation-related issues, have had many
additional member and staff briefings, and have solicited
input from a variety of outside experts on both interrogation
and the effects of current U.S. interrogation policy. The
inclusion of Section 327 reflects the conferees' considered
judgment that the CIA's program is not the most effective
method of obtaining the reliable intelligence we need to
protect the United States from attack. Further, the conferees
concluded that damage to international perception of the
United States caused by the existence of classified
interrogation procedures that apply only to CIA's program and
are different from those used by the U.S. military outweighs
the intelligence benefits that may result from the
interrogation of individuals using the interrogation
techniques authorized in the CIA's program.
Section 327 therefore seeks to create one consistent
interrogation policy across both the U.S. military and the
Intelligence Community. Any individual in the custody or
under the effective control of an element of the Intelligence
Community may therefore be subject only to those
interrogation techniques authorized for use by the U.S.
military, that is, the interrogation techniques authorized by
the U.S. Army Field Manual.
As the primary U.S. Government beneficiaries of the
protections of the Geneva Conventions of 1949, the U.S.
military should play an important role in ensuring that U.S.
interrogation policy complies with those international
protections. Other countries look to U.S. policy as a whole,
not the policy of particular agencies, in assessing how
Americans captured on the battlefield should be treated.
Requiring the Intelligence Community to follow the U.S. Army
Field Manual ensures that the United States adopts only those
interrogation techniques that would not be seen as abuse if
used against an American soldier.
As updated in September of 2006, the U.S. Army Field Manual
(FM 2-22.3) provides a detailed and unclassified description
of the interrogation process, along with a number of
interrogation approaches that can be used to elicit
information from detainees. The Army Field Manual leaves
interrogators with significant flexibility to determine what
approaches will work in particular situations or with
particular detainees; it does not mandate that particular
interrogation approach strategies be used in any given
situation. The congressional intelligence committees have
received testimony that the approaches in the U.S. Army Field
Manual are effective at eliciting information from detainees
and that they can be appropriately tailored to all detainees,
including senior terrorist leaders. The procedures in the
Army Field Manual have also been extensively reviewed to
ensure compliance with both ``American constitutional
standards related to concepts of dignity, civilization,
humanity, decency, and fundamental fairness,'' as well as
U.S. obligations under international law, including the four
Geneva Conventions of 1949. See Army Field Manual at 5-21.
In addition to describing interrogation approaches, the
U.S. Army Field Manual includes a number of specific
prohibitions. In particular, it prohibits ``acts of violence
or intimidation, including physical or mental torture, or
exposure to inhumane treatment as a means of or aid to
interrogation.'' It also explicitly prohibits forcing a
detainee to be naked, perform sexual acts, or pose in a
sexual manner; placing hoods or sacks over the head of a
detainee; using duct tape over the eyes of a detainee;
applying beatings, electric shock, burns, or other forms of
physical pain; waterboarding; using military working dogs;
inducing hypothermia or heat injury; conducting mock
executions; and depriving the detainee of necessary food,
water, or medical care. Requiring the Intelligence Community
to comply with the U.S. Army Field Manual thus prohibits the
Intelligence Community's use of these actions as
interrogation techniques.
Section 328. Limitation on use of funds
Section 328 was added by an amendment at conference. It
provides that not more than 30 percent of the funds
authorized to be appropriated in a specific Expenditure
Center referred to in a classified Executive Branch
Congressional Budget Justification for fiscal year 2008--
fiscal year 2009 may be obligated or expended until the full
membership of the congressional intelligence committees are
fully and currently informed about an important intelligence
matter. The matter is a facility in Syria that was the
subject of reported Israeli military action on September 6,
2007. The information on which the full membership of the
committees should be briefed includes intelligence if any
relating to any agent or citizen of North Korea, Iran, or any
other foreign country present at the facility. It should also
include any intelligence (as available) provided to the
United States by a foreign country regarding the facility.
``To the extent consistent with due regard for the
protection from unauthorized disclosure of classified
information relating to sensitive intelligence sources and
methods or other exceptionally sensitive matters,'' Section
502 of the National Security Act of 1947 (50 U.S.C. 413a)
requires that the Director of National Intelligence and the
heads of all entities of the United States Government
involved in intelligence activities shall ``keep the
congressional intelligence committees fully and currently
informed of all intelligence activities.''
As explained in a Senate report at the time of the original
enactment of this requirement in 1980, the limited caveat
about sensitive sources and methods or matters applies to
``extremely rare circumstances'' when there is a decision not
to communicate to the intelligence committees ``certain
sensitive aspects of operations or collection programs.'' S.
Rep. No. 96-730, at 6. The key phrase ``certain sensitive
aspects'' indicates that the scope of any withholding of
information should be limited to certain details rather than
to bar information about entire activities.
Section 504 of the National Security Act of 1947 (50 U.S.C.
413(b)) provides for only limited circumstances for not
providing information to the full membership of the
intelligence committees but, instead, informing the Chairmen
and Vice Chairman or Ranking Minority Member of those
committees as well as the congressional leadership. That
exception applies only when the President determines that
``it is essential to limit access to [a covert action]
finding to meet extraordinary circumstances affecting vital
interests of the United States.''
In agreeing to Section 328, the conferees concluded that it
is essential that the full membership of the House and Senate
intelligence committees be fully informed, in a manner
consistent with the National Security Act, about intelligence
that would indicate, among other matters, any presence at a
Syrian facility of agents or citizens of states--
particularly, North Korea and Iran--which have had nuclear or
other weapons of mass destruction programs.
Section 329. Incorporation of reporting requirements
Section 329 incorporates into the Act by reference each
requirement contained in the classified annex to this Act to
submit a report to the congressional intelligence committees.
Sections 105 of the Senate amendment and the House bill both
also made reference to reporting requirements included in the
joint explanatory statement to accompany the conference
report. As no reporting requirements were included in the
joint explanatory statement, this reference was eliminated.
Because the classified information in the annex cannot be
included in the text of the bill, incorporating the reporting
provisions of the classified annex is the only available
mechanism to give these reporting requirements the force of
law. The conferees therefore chose to include Section 329 to
reflect the importance they ascribe to the reporting
requirements in the classified annex.
Section 330. Repeal of certain reporting requirements
Section 330 eliminates five reporting requirements that
were considered particularly burdensome to the Intelligence
Community in cases where the usefulness of the report has
diminished either because of changing events or because the
information contained in those reports is duplicative of
information already obtained through other avenues. Section
330 is similar to Section 316 of the Senate amendment.
Section 316 had

[[Page H14483]]

proposed eliminating a total of seven reporting requirements.
The conferees agreed to remove two of these reports from the
list of reports to be eliminated after certain congressional
committees expressed an interest in continuing to receive
these two reports.
The House bill had no similar provision.

TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY

Subtitle A--Office of the Director of National Intelligence

Sec. 401. Clarification of limitation on co-location of the
Office of the Director of National Intelligence
Section 103(e) of the National Security Act of 1947 (50
U.S.C. 403-3(e)), as added by the Intelligence Reform Act,
provides that commencing on October 1, 2008, the Office of
the DNI may not be co-located with any other element of the
Intelligence Community. Section 401 clarifies that this ban
applies only to the co-location of the headquarters of the
ODNI with the headquarters of any other Intelligence
Community element. Accordingly, the ODNI may be colocated
with non-headquarters units of Intelligence Community
elements. Section 401 is identical to Section 406 of the
Senate amendment and Section 401 of the House bill.
Section 402. Membership of the Director of National
Intelligence on the Transportation Security Oversight
Board
Section 402 substitutes the DNI, or the DNI's designee, as
a member of the Transportation Security Oversight Board
established under section 115(b)(1) of Title 49, United
States Code, in place of the CIA Director or CIA Director's
designee. The Transportation Security Oversight Board is
responsible for, among other things, coordinating
intelligence, security, and law enforcement activities
affecting transportation and facilitating the sharing of
intelligence, security, and law enforcement information
affecting transportation among Federal agencies. Section 402
is identical to Section 416 of the Senate amendment and
Section 402 of the House bill.
Section 403. Additional duties of the Director of Science and
Technology
Section 403 clarifies the duties of the Director of Science
and Technology (DST) and the Director of National
Intelligence Science and Technology Committee (NISTC). The
conferees expect the DST to systematically identify, assess
and prioritize the most significant intelligence challenges
that require technical solutions, set long-term science and
technology goals, develop a strategy/roadmap to be shared
with congressional intelligence committees that meets these
goals, and prioritize and coordinate efforts across the
Intelligence Community. As chair of the NISTC, the DST should
leverage the expertise of members of the committee to
accomplish these duties.
Research and development efforts, including basic,
advanced, and applied research and development projects,
benefit the Intelligence Community most when they are
consistent with current or future national intelligence
requirements. Once a project is prototyped and successfully
demonstrated, the conferees expect the DST to lead the NISTC
to ensure the successful transition of projects from research
and development into operational systems.
To sustain and further Intelligence Community's research
and development goals, it is imperative that the DNI recruit
and retain the country's top science and technology
leadership talent. This is especially important during this
period marked by the restructuring of Intelligence Community
research and development management. The conferees also note
that science and technology are major factors driving change
in today's world and believe that the Intelligence Community
must return to preeminence in this area in order to fully
protect our nation's security.
The conferees urge the DST to develop multi-year
projections and assessments of Intelligence Community human
resource needs to better ensure that appropriate steps are
taken to recruit and retain a robust scientific and
engineering workforce. The conferees also urge the
Intelligence Community to enhance its support to scholarship
programs, research grants, and cooperative work-study
programs to achieve these human resources goals.
Section 403 is similar to Section 407 of the Senate
amendment and Section 403 of the House bill.
Section 404. Leadership and location of certain offices and
officials
Section 404 confirms in statute that various officers are
within the ODNI. These are (1) the Chief Information Officer
of the Intelligence Community (as renamed by Section 412);
(2) the Inspector General of the Intelligence Community (as
named under Section 413); (3) the Director of the National
Counterterrorism Center; and (4) the Director of the National
Counter Proliferation Center (NCPC). Section 404 also
expressly provides in statute that the DNI shall appoint the
Director of the NCPC. Section 119A of the National Security
Act of 1947 (50 U.S.C. 404o-1), as added by the Intelligence
Reform Act, had provided that the President could establish
the NCPC. In doing so, the President delegated to the DNI the
authority to name the Director. Section 404 ratifies that
delegation. Section 404 is identical to Section 411 of the
Senate amendment and Section 404 of the House bill.
Section 405. Plan to implement recommendations of the data
center energy efficiency reports
Section 405 requires the DNI to develop a plan to implement
across the Intelligence Community the recommendations of the
Environmental Protection Agency report on improving data
center energy efficiency. This planning requirement is
intended to encourage the Intelligence Community to fulfill
its responsibility to assess the use of environmental
resources with regard to the power, space, and cooling
challenges of Intelligence Community data centers. Section
405 is similar to Section 408 of the House bill. The Senate
amendment did not have a comparable provision.
Section 406. Comprehensive listing of special access programs
Section 406 provides that the DNI shall submit to the
congressional intelligence committees a classified
comprehensive listing of special access programs under the
National Intelligence Program. The listing need not describe
the programs, but must provide a reference to them to enable
the congressional intelligence committees to determine
whether the Intelligence Community has fulfilled its
obligation to keep the committees informed about
intelligence activities. In response to a concern of the
DNI that a single document would create security and
counterintelligence concerns, the conferees agreed to
include a provision that allows the DNI to submit the
listing in a form or forms consistent with national
security.
Section 406 is based on Section 409 of the House bill. The
Senate amendment did not have a comparable provision.
Section 407. Reports on the nuclear programs of Iran and
North Korea
Section 407 provides that not less than once during the
remainder of this fiscal year and twice during fiscal year
2009, the DNI shall submit to the congressional intelligence
committees a classified report on the nuclear intentions and
capabilities of Iran and North Korea. A national intelligence
estimate may count as one of those reports for each country.
The conferees encourage the DNI to make these reports
available to other congressional oversight committees of
jurisdiction to the extent consistent with the protection of
sources and methods.
Section 407 is based on Section 410 of the House bill. The
Senate amendment did not contain a comparable provision. The
House provision had required quarterly reports indefinitely.
In response to concerns of the DNI, the conferees reduced the
number of reports required, but otherwise concur that it is
essential that the Intelligence Community place a high
priority on reporting to Congress on nuclear developments in
Iran and North Korea.
Section 408. Requirements for accountability reviews by the
Director of National Intelligence
Section 408 provides that the DNI shall have authority to
conduct accountability reviews of elements of the
Intelligence Community and the personnel of those elements.
The primary innovation of this provision is the authority to
conduct accountability reviews concerning an entire element
of the Intelligence Community in relation to significant
failures or deficiencies.
This accountability process is separate and distinct from
any accountability reviews conducted internally by elements
of the Intelligence Community or their Inspectors General.
Also, as stated explicitly in Section 408, the new authority
does not limit the existing authority of the DNI with respect
to supervision of the CIA. The DNI, in consultation with the
Attorney General, shall establish guidelines and procedures
for conducting accountability reviews.
The Senate bill, as reported by the Select Committee on
Intelligence, arguably would have mandated the DNI to conduct
an accountability review at the direction of a congressional
intelligence committee. To avoid a construction that a
committee of Congress on its own could require such a review
over the objection of the DNI, a concern raised by the ODNI,
a managers' amendment prior to Senate passage made clear that
the DNI shall conduct a review if the DNI determines it is
necessary, and the DNI may conduct an accountability review
(but is not statutorily required to do so) if requested by
one of the congressional intelligence committees.
Section 408 is identical to Section 401 of the Senate
amendment. The House bill did not have a comparable
provision.
Section 409. Modification of limitation on delegation by the
Director of National Intelligence of the protection of
intelligence sources and methods
Section 409 amends section 102A(i)(3) of the National
Security Act of 1947 to modify the limitation on delegation
by the DNI (which now extends only to the PDDNI) of the
authority to protect intelligence sources and methods from
unauthorized disclosure. It permits the DNI also to delegate
the authority to the Chief Information Officer of the
Intelligence Community.
Section 409 is based on Section 403 of the Senate
amendment. The House bill did not have a comparable
provision. The Senate bill, as originally reported, would
have additionally permitted the delegation of this authority
to any Deputy DNI or to the head of any Intelligence
Community element. In a managers' amendment before passage in
the Senate, the authority to delegate outside of the Office
of the DNI was struck in accordance with the sequential
report of the Committee on the Armed Services, S. Rep. No.

[[Page H14484]]

110-92, at 3. The conferees further limited the delegation
authority to the Chief Information Officer, who is a
presidentially-appointed, Senate-confirmed official whose
responsibilities expressly involve information matters
throughout the Intelligence Community.
Section 410. Authorities for intelligence information sharing
Section 410 amends section 102A(g)(1) of the National
Security Act of 1947 (50 U.S.C. 403-1(g)(1)) to provide the
DNI with statutory authority to use NIP funds to quickly
address deficiencies or needs that arise in intelligence
information access or sharing capabilities. It authorizes the
DNI to provide to an agency or component, and for that agency
or component to accept and use, funds or systems (which could
include services or equipment) related to the collection,
processing, analysis, exploitation, and dissemination of
intelligence information. It also grants the DNI authority to
provide funds to non-NIP activities for the purpose of
addressing critical gaps in intelligence information access
or sharing capabilities. Without the authority, development
and implementation of necessary capabilities could be delayed
by an agency's lack of authority to accept or utilize systems
funded from the NIP, inability to use or identify current-
year funding, or concerns regarding the augmentation of
appropriations.
Section 410 is based on Section 402 of the Senate
amendment. The House did not have a comparable provision. To
aid in oversight, the conferees have added a four-year
reporting requirement from fiscal years 2009 through 2012. No
later than February 1 of each of those years, the DNI shall
submit to the congressional intelligence committees a report
on the distribution of funds under the new section during the
preceding fiscal year to facilitate implementation of
information sharing.
Section 411. Authorities of the Director of National
Intelligence for interagency funding
Section 411 provides the DNI with the ability to rapidly
focus the Intelligence Community on an intelligence issue
through a coordinated effort that uses all available
resources. The premise of this authority is that the DNI's
ability to coordinate the Intelligence Community response to
an emerging threat should not depend on the budget cycle and
should not be constrained by general limitations in
appropriations law (e.g., 31 U.S.C. 1346) or other
prohibitions on interagency financing of boards, commissions,
councils, committees, or similar groups.
To provide this flexibility, this section grants the DNI
the authority to approve interagency financing of national
intelligence centers established under section 119B of the
National Security Act of 1947 (50 U.S.C. 404o-2). It also
authorizes interagency funding for boards, commissions,
councils, committees, or similar groups established by the
DNI for a period not to exceed two years. This would include
funding for Intelligence Community mission managers. Under
this section, the DNI could authorize the pooling of
resources from various Intelligence Community agencies to
finance national intelligence centers or other organizational
groupings designed to address identified intelligence
matters.
Section 411 is based on Section 404 of the Senate
amendment. The House bill did not have a comparable
provision. To aid in oversight of the implementation of the
authority granted by this section, the conferees have added a
four-year reporting requirement from fiscal years 2009
through 2012. No later than February 1 of each of those years
the DNI shall submit to the congressional intelligence
committees a report on the exercise of this authority to
support interagency activities.
Section 412. Title of Chief Information Officer of the
Intelligence Community
Section 412 expressly designates the position of Chief
Information Officer as Chief Information Officer of the
Intelligence Community. The modification to the CIO title is
consistent with the position's overall responsibilities as
outlined in section 103G of the National Security Act of 1947
(50 U.S.C. 403-3g). Section 412 is identical to Section 408
of the Senate amendment. The House bill did not have a
comparable provision.
Section 413. Inspector General of the Intelligence Community
Section 1078 of the Intelligence Reform Act authorized the
DNI to establish an Office of Inspector General if the DNI
determined that an Inspector General would be beneficial to
improving the operations and effectiveness of the ODNI. It
further provided that the DNI could grant to the Inspector
General any of the duties, responsibilities, and authorities
set forth in the Inspector General Act of 1978. The DNI has
appointed an Inspector General and has granted certain
authorities pursuant to DNI Instruction No. 2005-10 (Sept.
7, 2005).
A strong Inspector General is vital to achieving the goal,
set forth in the Intelligence Reform Act, of improving the
operations and effectiveness of the Intelligence Community.
It is also vital to achieving the broader goal of identifying
problems and deficiencies wherever they may be found in the
Intelligence Community with respect to matters within the
responsibility and authority of the DNI, especially the
manner in which elements of the Intelligence Community
interact with each other in providing access to information
and undertaking joint or cooperative activities. By way of a
new section 103H of the National Security Act of 1947, this
section establishes an Inspector General of the Intelligence
Community in order to provide to the DNI, and through reports
to the Congress, the benefits of an Inspector General with
full statutory authorities and the requisite independence.
The office is established within the ODNI. The Inspector
General will keep both the DNI and the congressional
intelligence committees fully and currently informed about
problems and deficiencies in Intelligence Community programs
and operations and the need for corrective actions. The
Inspector General will be appointed by the President, with
the advice and consent of the Senate, and will report
directly to the DNI. To bolster the Inspector General's
independence within the Intelligence Community, the Inspector
General may be removed only by the President, who must
communicate the reasons for the removal to the congressional
intelligence committees.
The DNI may prohibit the Inspector General from conducting
an investigation, inspection, or audit if the DNI determines
that is necessary to protect vital national security
interests. If the DNI exercises the authority to prohibit an
investigation, the DNI must provide the reasons to the
congressional intelligence committees within seven days. The
Inspector General may provide a response to the committees.
The Inspector General will have direct and prompt access to
the DNI and any Intelligence Community employee or employee
of a contractor whose testimony is needed. The Inspector
General will also have direct access to all records that
relate to programs and activities for which the Inspector
General has responsibility. Failure to cooperate will be
grounds for appropriate administrative action.
The Inspector General will have subpoena authority.
However, information within the possession of the United
States government must be obtained through other procedures.
Subject to the DNI's concurrence, the Inspector General may
request information from any U.S. government department,
agency, or element. They must provide the information to the
Inspector General insofar as practicable and not in violation
of law or regulation.
The Inspector General must submit semiannual reports to the
DNI that include a description of significant problems
relating to Intelligence Community programs and operations
and to the relationships between Intelligence Community
elements. The reports must include a description of Inspector
General recommendations and a statement whether corrective
action has been completed. The Inspector General shall
provide any portion of the report involving a component of a
department of the U.S. government simultaneously to the head
of that department with submission of the report to the DNI.
Within 30 days of receiving it from the Inspector General,
the DNI must submit each semiannual report to Congress.
The Inspector General must immediately report to the DNI
particularly serious or flagrant violations. Within seven
days, the DNI must transmit those reports to the
congressional intelligence committees together with any
comments. In the event the Inspector General is unable to
resolve differences with the DNI, the Inspector General is
authorized to report a serious or flagrant violation directly
to the congressional intelligence committees. Reports to the
congressional intelligence committees are also required with
respect to investigations concerning high-ranking
Intelligence Community officials.
Intelligence Community employees or employees of
contractors who intend to report to Congress an ``urgent
concern''--such as a violation of law or Executive order, a
false statement to Congress, or a willful withholding from
Congress--may report such complaints and supporting
information to the Inspector General. Following a review by
the Inspector General to determine the credibility of the
complaint or information, the Inspector General must transmit
such complaint and information to the DNI. On receiving the
complaints or information from the Inspector General
(together with the Inspector General's credibility
determination), the DNI must transmit the complaint or
information to the congressional intelligence committees. If
the Inspector General does not find a complaint or
information to be credible, the reporting individual may
submit the matter directly to the congressional intelligence
committees by following appropriate security practices
outlined by the DNI. Reprisals or threats of reprisal against
reporting individuals constitute reportable ``urgent
concerns.''
In providing this channel for whistleblower communications
to Congress, Section 413 does not disturb, and the conferees
intend to retain, the authoritative guidance for analogous
provisions of the Intelligence Community Whistleblower Act of
1998, Pub. L. No. 105-272 (October 20, 1998) as set forth in
the findings in paragraphs (1) through (6) of section 701(b)
of that Act, the Senate committee report for the legislation,
S. Rep. No. 105-185, at 25-27, and particularly the
conference report, H.R. Rep. 105-780, at 33-34, which
emphasized that a disclosure to the Inspector General ``is
not the exclusive process by which an Intelligence Community
employee may make a report to Congress.''
For matters within the jurisdiction of both the Inspector
General of the Intelligence Community and an Inspector
General for another Intelligence Community element, the
Inspectors General shall expeditiously resolve who will
undertake an investigation,

[[Page H14485]]

inspection, or audit. In resolving that question, under an
extensive subsection entitled ``Coordination Among Inspectors
General of Intelligence Community,'' the Inspectors General
may request the assistance of the Intelligence Community
Inspectors General Forum (a presently existing informal body
whose existence is ratified by this section). In the event
that the Inspectors General are still unable to resolve the
question, they shall submit it for resolution to the DNI and
the head of the department (or to the Director of the CIA in
matters involving the CIA Inspector General, in accordance
with a clarifying amendment of the conferees) in which an
Inspector General with jurisdiction concurrent to that of the
Inspector General of the Intelligence Community is located.
This basic limitation addresses the concern raised by the DNI
about the preservation of the authority of heads of
departments and agencies over their respective departments.
Within Congress, mutuality of oversight is assured by the
requirement that Inspector General reports concerning
Intelligence Committee elements within departments are shared
with committees that have jurisdiction over those
departments.
Except for the provision clarifying that unresolved
questions involving the CIA Inspector General will also be
submitted to the Director of the CIA, rather than the head of
a department, Section 413 is identical to Section 410 of the
Senate amendment. The House bill did not have a similar
provision.
Section 414. Annual report on foreign language proficiency in
the Intelligence Community
Section 414 provides for an annual report by the DNI on the
proficiency of each element of the Intelligence Community in
foreign languages and, if appropriate, in foreign dialects.
The section also requires the DNI to report on foreign
language training. The Intelligence Community has an
increasing need for fluency in difficult-to-master languages
and for expertise in foreign cultures. The information
required by the report will allow the congressional
intelligence committees to better assess the Intelligence
Community's ability to manage language resources. Section 414
is based on Sections 412 and 413 of the House bill, which
have been merged by the conferees. The Senate amendment did
not have a comparable provision.
Section 415. Director of National Intelligence report on
retirement benefits for former employees of Air America
Section 415 provides for a report by the DNI on the
advisability of providing federal retirement benefits to
United States citizens who were employees of Air America or
an associated company prior to 1977, during the time that the
company was owned or controlled by the United States and
operated by the CIA. Section 415 is identical to Section 425
of the Senate amendment and Section 415 of the House bill.
The conferees note that H.R. 1271 was introduced in the
House in the 110th Congress, and H.R. 1276 and S. 651 were
introduced in the House and Senate in the 109th Congress, to
make service performed with Air America and certain other
entities creditable for federal civil service retirement
purpose. By including Section 415 in this authorization
bill, the conferees take no position on the merits of that
legislation.
Although the section invites the DNI to submit any
recommendations on the ultimate question of providing
benefits, the main purpose of the report is to provide
Congress with the facts upon which Congress can make that
determination. Accordingly, Section 415 outlines the factual
elements required by the report. To aid in the preparation of
the report, the section authorizes the assistance of the
Comptroller General. Among the elements of the report should
be: the relationship of Air America to the CIA, the missions
it performed, and the casualties its employees suffered, as
well as the retirement benefits that had been contracted for
or promised to Air America employees and the retirement
benefits Air America employees received.
On September 25, 2007, the CIA provided a three page letter
to the congressional intelligence and appropriations
committees in response to the Senate Select Committee on
Intelligence Report 109-259 to S. 3237, requesting a report
on ``the advisability of providing federal retirement
benefits to United States citizens who were employees of Air
America or an associated company prior to 1977, during the
time that the company was owned or controlled by the United
States and operated by the CIA.'' Although the letter
describes the legal basis for denying federal retirement
benefits to employees of Air America, it does not provide the
factual background that would allow Congress to make an
assessment of whether to provide employees of Air America
with federal retirement benefits. The report requested in
Section 415 therefore continues to be necessary for a
comprehensive exploration of the underlying issues.
Section 416. Space Intelligence
Section 416 underscores the importance of the DNI's
consideration of space intelligence issues by adding this
responsibility to the DNI's statutory duties in Section 102A
of the National Security Act of 1947 (50 U.S.C. 403-1).
Section 416 requires the DNI to consider space intelligence
issues and concerns in setting intelligence priorities,
conducting analysis, and acquiring major systems. The Section
also requires the DNI to ensure that agencies give due
consideration to the vulnerability assessments prepared for a
given major system at all stages of architecture and system
planning, development, acquisition, operation, and support of
a space intelligence system.
Section 412 of the Senate amendment would have created a
new National Space Intelligence Office within the ODNI to
coordinate and provide policy direction for the management of
space-related intelligence assets and the development of
personnel in space-related fields. The National Space
Intelligence Office would also have been responsible for
prioritizing space-related collection activities and
evaluating analytic assessments of threats to classified
United States space intelligence systems. The DNI, however,
expressed concern about the creation of a dedicated office in
the ODNI for space intelligence. Section 416 addresses that
concern by highlighting the importance of space intelligence,
while still giving the DNI flexibility to organize the
Intelligence Community to implement responsibilities for that
intelligence.
The House bill had no similar provision.
Section 417. Operational files in the Office of the Director
of National Intelligence
In the CIA Information Act, Pub. L. No. 98-477 (October 15,
1984) (50 U.S.C. 431), Congress authorized the Director of
Central Intelligence to exempt operational files of the CIA
from several requirements of the Freedom of Information Act
(``FOIA''), particularly those requiring search and review in
response to FOIA requests. In a series of amendments to Title
VII of the National Security Act of 1947, Congress has
extended the exemption to the operational files of the
National Geospatial-Intelligence Agency (``NGA''), the
National Security Agency (``NSA''), the National
Reconnaissance Office (``NRO''), and the Defense Intelligence
Agency (``DIA''). It has also provided that files of the
Office of the National Counterintelligence Executive
(``NCIX'') should be treated as operational files of the CIA
(to the extent they meet the criteria for CIA operational
files).
Section 417 adds a new section 706 to the National Security
Act of 1947. Components of the ODNI, including the National
Counterterrorism Center (``NCTC''), require access to
information contained in CIA and other operational files. The
purpose of section 706 is to make clear that operational
files of any Intelligence Community component, for which an
operational files exemption is applicable, retain their
exemption from FOIA search, review, disclosure, or
publication when they are provided to an element of the ODNI.
They also retain their exemption when they are incorporated
in any substantially similar files of the ODNI.
Section 706 provides several limitations. The exemption
does not apply to information disseminated beyond the ODNI.
Also, as Congress has provided in the operational files
exemptions for the CIA and other Intelligence Community
elements, section 706 provides that the exemption does not
apply to requests by United States citizens or permanent
residents for information about themselves (although other
FOIA exemptions, such as appropriate classification, may
continue to protect such files from public disclosure). The
exemption would not apply to the subject matter of a
congressional or Executive branch investigation into
improprieties or violations of law.
Finally, Section 706 provides for a decennial review by the
DNI to determine whether exemptions may be removed from any
category of exempted files. This review shall include
consideration of the historical value or other public
interest in the subject matter of those categories and the
potential for declassifying a significant part of the
information contained in them. The conferees underscore the
importance of this requirement, which applies to the other
operational exemptions in Title VII. The conferees also
expect the DNI to submit the results of such review to the
congressional intelligence committees in a timely manner.
Section 417 is based on Section 412 of the Senate
amendment. The House bill did not contain a comparable
provision. The conferees added the requirement of
substantiality in the similarity between ODNI files and those
of the originating element in order to tighten the connection
between the files that are exempt in the originating element
and the files in the ODNI that would also be exempt.
Section 418. Inapplicability of Federal Advisory Committee
Act to advisory committees of the Office of the Director
of National Intelligence
Congress enacted the Federal Advisory Committee Act (FACA)
(5 U.S.C. App.) to regulate the use of advisory committees
throughout the Federal Government. FACA sets forth the
responsibilities of the Executive branch with regard to such
committees and outlines procedures and requirements for them.
As originally enacted in 1972, FACA expressly exempted
advisory committees utilized by the CIA and the Federal
Reserve System. Section 418 amends FACA to extend this
exemption to advisory committees established or used by the
ODNI. Section 418 is identical to Section 415 of the Senate
amendment. The House bill did not contain a comparable
provision.

[[Page H14486]]

Section 419. Applicability of the Privacy Act to the Director
of National Intelligence and Office of the Director of
National Intelligence
The Privacy Act (5 U.S.C. 552a) has long contained a
provision under which the Director of Central Intelligence
and then (after enactment of the Intelligence Reform Act) the
CIA Director could promulgate rules to exempt any system of
records within the CIA from certain disclosure requirements
under the Act. The exemption authority was designed to ensure
that the CIA could provide safeguards for certain sensitive
information in its records systems. In assuming the
leadership of the Intelligence Community, the DNI similarly
requires the ability to safeguard sensitive information in
records systems within the ODNI. Accordingly, Section 419
extends to the DNI the authority to promulgate rules under
which records systems of the ODNI may be exempted from
certain Privacy Act disclosure requirements. It is identical
to Section 417 of the Senate amendment. The House bill did
not contain a comparable provision.
Section 420. Repeal of certain authorities relating to the
Office of the National Counterintelligence Executive
Section 420 amends the authorities and structure of the
NCIX to eliminate certain independent administrative
authorities that had been vested in the NCIX when that
official was appointed by and reported to the President.
Those authorities are unnecessary now that the NCIX is to be
appointed by and is under the authority of the DNI. Section
420 is identical to Section 414 of the Senate amendment and
Section 432 of the House bill.

Subtitle B--Central Intelligence Agency

Section 431. Review of covert action programs by Inspector
General of the Central Intelligence Agency
Title V of the National Security Act of 1947, entitled
``Accountability for Intelligence Activities,'' sets forth
the Act's basic requirements on Executive branch obligations
to keep the congressional intelligence committees fully
informed about intelligence activities. Section 503 of the
National Security Act of 1947 (50 U.S.C. 413b) is
specifically devoted to presidential findings and
congressional notification of covert actions. Section 431
augments the oversight of covert actions by adding a new
subsection to Section 503 that requires that the CIA
Inspector General conduct an audit of each covert action at
least every three years and submit to the congressional
intelligence committees a report containing the audit results
within 60 days of completing the audit. To a considerable
extent, this requirement confirms in statute existing
practice and assures its regularity.
The Director of National Intelligence has expressed concern
that this audit requirement, and several other provisions on
Intelligence Community reports, raise concerns with respect
to the President's authority to control access to national
security information. To allay any such concern regarding the
covert action audit requirement, the conferees have amended
Section 431 to state that the requirement is subject to the
longstanding provisions of section 17(b)(3) and (4) of the
Central Intelligence Agency Act of 1949 (50 U.S.C. 403q(b)(3)
and (4)) that empower the CIA Director to prohibit the CIA
Inspector General from initiating, carrying out, or
completing an audit if the Director determines that the
prohibition is necessary to protect vital national security
interests of the United States, provided that the Director
report the reasons to the congressional intelligence
committees.
Section 431 is based on Section 423 of the House bill. The
Senate amendment did not contain a comparable provision.
Section 432. Inapplicability to the Director of the Central
Intelligence Agency of requirement for annual report on
progress in auditable financial statements
Section 432 is identical to Section 422 of the Senate
amendment and Section 424 of the House bill. Section 432
relieves the CIA Director from the requirement in section
114A of the National Security Act of 1947 (50 U.S.C. 404i-1)
to submit to the congressional intelligence committees an
annual report describing the activities being taken to ensure
that financial statements of the CIA can be audited in
accordance with applicable law and the requirements of OMB.
Although concern remains that the CIA has had minimal success
in achieving unqualified opinions on its financial
statements, the report required by Section 114A is
unnecessary as CIA is now submitting audited financial
statements. The requirements of Section 114A continue to
apply to the Directors of NSA, DIA, and NGA.
Section 433. Additional functions and authorities for
protective personnel of the Central Intelligence Agency
Section 433 amends section 5(a)(4) of the Central
Intelligence Agency Act of 1949 (50 U.S.C. 403f(a)(4)) which
authorizes protective functions by designated security
personnel who serve on CIA protective details.
The section authorizes protective detail personnel, when
engaged in, and in furtherance of, the performance of
protective functions, to make arrests in two circumstances.
Protective detail personnel may make arrests without a
warrant for any offense against the United States--whether a
felony, misdemeanor, or infraction--that is committed in
their presence. They may also make arrests without a warrant
if they have reasonable grounds to believe that the person to
be arrested has committed or is committing a felony, but not
other offenses, under the laws of the United States.
Guidelines approved by the CIA Director and the Attorney
General will provide safeguards and procedures to ensure the
proper exercise of this authority. Section 433 specifically
does not grant any authority to serve civil process or to
investigate crimes.
The authority provided by this section is consistent with
those of other Federal elements with protective functions,
such as the Secret Service (18 U.S.C. 3056(c)(1)(C)), the
State Department Diplomatic Security Service (22 U.S.C.
2709(a)(5)), and the Capitol Police (2 U.S.C. 1966(c)).
Arrest authority will contribute significantly to the ability
of CIA protective detail personnel to fulfill their
responsibility to protect officials against serious threats
without being dependent on the ability of Federal, State, or
local law enforcement officers to respond immediately. The
grant of arrest authority is supplemental to all other
authority CIA protective detail personnel have by virtue of
their statutory responsibility to perform the protective
functions set forth in the CIA Act of 1949.
Section 433 also authorizes the CIA Director on the request
of the DNI to make CIA protective detail personnel available
to the DNI and to other personnel within the ODNI.
The CIA Director shall submit to the congressional
intelligence committees as soon as possible, but not later
than 10 days after an arrest, a report describing each
exercise of authority under this section.
Section 433 is based on Section 423 of the Senate
amendment. The House bill did not include a comparable
provision. The conferees added the explicit requirement that
arrests be in furtherance of the performance of protective
functions and the requirement for a report to the
congressional intelligence committees about each exercise of
arrest authority.
Section 434. Technical amendments relating to titles of
certain CIA positions
Section 434 replaces out-of-date titles for CIA positions
with the current titles of the successors of those positions
in a provision in section 17 of the Central Intelligence
Agency Act of 1949 (50 U.S.C. 403q) on the obligation of the
CIA Inspector General to notify the congressional
intelligence committees about investigations, inspections, or
audits concerning high-ranking CIA officials. Section 434 is
similar to Section 424 of the Senate amendment and Section
516 of the House bill, except for a conference agreement to
add additional titles that needed to be changed.
Section 435. Clarifying amendments relating to section 105 of
the Intelligence Authorization Act for Fiscal Year 2004
Section 435 changes the reference to the Director of
Central Intelligence to the Director of National Intelligence
to clarify that the establishment of the Office of
Intelligence and Analysis within the Department of the
Treasury (section 105 of the Intelligence Authorization Act
for Fiscal Year 2004 (Pub. L. No. 108-177 (Dec. 13, 2003)),
and its reorganization within the Office of Terrorism and
Financial Intelligence (section 222 of the Transportation,
Treasury, Independent Agencies, and General Government
Appropriations Act, 2005 (Division H, Pub. L. No. 108-447
(Dec. 8, 2004)), do not affect the authorities and
responsibilities of the DNI with respect to the Office of
Intelligence and Analysis as an element of the Intelligence
Community. Section 435 is identical to Section 442 of the
Senate amendment and Section 431 of the House bill.

Subtitle C--Defense Intelligence Components

Section 441. Enhancement of National Security Agency training
program
Section 441 permits the Director of the National Security
Agency to protect intelligence sources and methods by
deleting a requirement that NSA publicly identify to
educational institutions students who are NSA employees or
training program participants. Deletion of this disclosure
requirement will enhance the ability of NSA to protect
personnel and prospective personnel and to preserve the
ability of training program participants to undertake future
clandestine or other sensitive assignments for the
Intelligence Community.
The conferees recognize that nondisclosure is appropriate
when disclosure would threaten intelligence sources or
methods, would endanger the life or safety of the student, or
would limit the employee's or prospective employee's ability
to perform intelligence activities in the future.
Notwithstanding the deletion of the disclosure requirement,
the conferees expect NSA to continue to prohibit participants
in the training program from engaging in any intelligence
functions at the institutions they attend under the program.
See H.R. Rep. No. 99-690, Part I (July 17, 1986) (``NSA
employees attending an institution under the program will
have no intelligence function whatever to perform at the
institution.'').
Section 441 is similar to Section 431(b) of the Senate
amendment. The conferees did not include subsection (a) of
Section 431 of the Senate amendment, which was a clarifying
provision to allow the NSA to recoup the educational costs
expended for the benefit of a student who fails to maintain
satisfactory academic performance. The conferees believe that
this matter and its application to other Intelligence
Community scholarship programs should be given further
study by the congressional intelligence committees. The
House bill had no similar provision.

[[Page H14487]]

Section 442. Codification of authorities of National Security
Agency protective personnel
Section 442 amends the National Security Agency Act of 1959
(50 U.S.C. 402 note) by adding a new Section 21 to clarify
and enhance the authority of protective details for NSA.
The new section 21(a) would authorize the Director of NSA
to designate NSA personnel to perform protective detail
functions for the Director and other personnel of NSA who are
designated from time to time by the Director as requiring
protection. Section 11 of the NSA Act of 1959 presently
provides that the Director of NSA may authorize agency
personnel to perform certain security functions at NSA
headquarters, at certain other facilities, and around the
perimeter of those facilities. The new authority for
protective details would enable the Director of the NSA to
provide security when the Director or other designated
personnel require security away from those facilities.
The new section 21(b) would provide that NSA personnel,
when engaged in performing protective detail functions, and
in furtherance of the performance of those functions, may
exercise the same arrest authority that Section 433 of this
Act provides for CIA protective detail personnel. The arrest
authority for NSA protective detail personnel would be
subject to guidelines approved by the Director of NSA and the
Attorney General. The purpose and extent of that arrest
authority, the limitations on it, and reporting expectations
about it are described in the explanation for Section 433.
That analysis and explanation applies equally to the arrest
authority provided to NSA protective detail personnel by
Section 21(b).
While this Act provides separately for authority for CIA
and NSA protective details, the DNI should advise the
congressional intelligence committees whether overall
policies, procedures, and authority should be provided for
protective services, when necessary, for other Intelligence
Community elements or personnel (or their immediate
families).
Section 442 is similar to Section 432 of the Senate
amendment. The House bill had no comparable provision.
Section 443. Inspector general matters
The Inspector General Act of 1978 (Pub. L. No. 95-452 (Oct.
12, 1978)) established a government-wide system of Inspectors
General, some appointed by the President with the advice and
consent of the Senate and others ``administratively
appointed'' by the heads of their respective Federal
entities. These Inspector Generals were authorized to
``conduct and supervise audits and investigations relating to
the programs and operations'' of the government and ``to
promote economy, efficiency, and effectiveness in the
administration of, and * * * to prevent and detect fraud
and abuse in, such programs and operations.'' 5 U.S.C. App.
2. These Inspectors General also perform an important
reporting function, ``keeping the head of the establishment
and the Congress fully and currently informed about problems
and deficiencies relating to the administration of * * *
programs and operations and the necessity for and progress of
corrective action.'' Id. The investigative authorities
exercised by Inspectors General, and their relative
independence from the government operations they audit and
investigate, provide an important mechanism to ensure that
the operations of the government are conducted as efficiently
and effectively as possible.
The Inspectors General of the CIA and Departments of
Defense, Energy, Homeland Security, Justice, State, and
Treasury are appointed by the President with the advice and
consent of the Senate. These Inspectors General--authorized
by either the Inspector General Act of 1978 or section 17 of
the CIA Act of 1949--enjoy a degree of independence from all
but the head of their respective departments or agencies.
They also have explicit statutory authority to access
information from their departments or agencies or other
United States Government departments and agencies and may use
subpoenas to access information (e.g., from an agency
contractor) necessary to carry out their authorized
functions.
The National Reconnaissance Office, the Defense
Intelligence Agency, the National Security Agency and the
National Geospatial-Intelligence Agency have established
their own ``administrative'' Inspectors General. However,
because they are not identified in section 8G of the
Inspector General Act of 1978, they lack explicit statutory
authorization to access information relevant to their audits
or investigations, or to compel the production of information
via subpoena. This lack of authority has impeded access to
information, in particular information from contractors, that
is necessary for them to perform their important oversight
function. These Inspectors General also lack the indicia of
independence necessary for the Government Accountability
Office to recognize their annual financial statement audits
as being in compliance with the Chief Financial Officers Act
of 1990 (Pub. L. No. 101-576 (Nov. 15, 1990)). The lack of
independence also prevents the Department of Defense
Inspector General, and would prevent the Inspector General of
the Intelligence Community, from relying on the results of
NRO, DIA, NSA, or NGA Inspector General audits or
investigations that must meet ``generally accepted government
auditing standards.''
To provide an additional level of independence and to
ensure prompt access to the information necessary for these
Inspectors General to perform their audits and
investigations, Section 443 amends Section 8G(a)(2) of the
Inspector General Act of 1978 to include NRO, DIA, NSA, and
NGA as ``designated federal entities.'' As so designated, the
heads of these Intelligence Community elements will be
required by statute administratively to appoint Inspectors
General for these agencies.
Also, as designated Inspectors General under the Inspector
General Act of 1978, these Inspectors General will be
responsible to the heads of the NRO, DIA, NSA, and NGA. The
removal or transfer of any of these Inspectors General by the
head of their office or agency must be promptly reported to
the congressional intelligence committees. These Inspectors
General will also be able to exercise other investigative
authorities, including those governing access to information
and the issuance of subpoenas, utilized by other Inspectors
General under the Inspector General Act of 1978.
To protect vital national security interests, Section 443
permits the Secretary of Defense, in consultation with the
Director of National Intelligence, to prohibit the Inspectors
General of the NRO, DIA, NSA, and NGA from initiating,
carrying out, or completing any audit or investigation they
are otherwise authorized to conduct. This authority is
similar to the authority of the CIA Director under section 17
of the CIA Act of 1949 with respect to the Inspector General
of the CIA and the authority of the Secretary of Defense
under section 8 of the Inspector General Act of 1978 with
respect to the Department of Defense Inspector General. It
will provide the President, through the Secretary of Defense,
in consultation with the DNI, a mechanism to protect
extremely sensitive intelligence sources and methods or other
vital national security interests. The Committee expects that
this authority will be exercised rarely by the Secretary of
Defense.
The Senate amendment had provided the authority to prohibit
the Inspectors General from initiating, carrying out, or
completing any audit or investigation to either the DNI or
the Secretary of Defense. To address Administration concerns
that authorizing the DNI to cut off an investigation that had
been ordered by the head of an executive department would be
inconsistent with the preservation of the authority of the
heads of departments and agencies over their respective
departments, the conferees changed this provision to limit
the authority to the Secretary of Defense, in consultation
with the DNI.
Section 443 is similar to Section 433 of the Senate
amendment. The House bill had no similar provision.
Section 444. Confirmation of appointment of heads of certain
components of the Intelligence Community
Under present law and practice, the directors of the NSA
and NRO, each with a distinct and significant role in the
national intelligence mission, are not confirmed by the
Senate in relation to their leadership of these agencies.
Presently, the President appoints the Director of NSA and the
Secretary of Defense appoints the Director of the NRO.
Neither of these appointments must be confirmed by the
Senate, unless a military officer is promoted or transferred
into the position. Under that circumstance, Senate
confirmation of the promotion or assignment is the
responsibility of the Committee on Armed Services. That
committee's review, however, relates to the military
promotion or assignment and not specifically to the
assumption by the individual of the leadership of a critical
element of the Intelligence Community.
Section 434 of the Senate amendment provided that the heads
of NSA, NGA, and NRO would be nominated by the President and
that the nominations would be confirmed by the Senate.
Through advice and consent, the Senate can enable the
Congress to fulfill more completely its responsibility for
providing oversight to the intelligence activities of the
United States Government.
To respond to the concerns of the DNI about the increase in
the number of Senate- confirmed positions within the
Intelligence Community, the conferees agreed that only the
heads of the NSA and NRO, as the larger two of the three
agencies, should be nominated by the President and confirmed
by the Senate at this time. While all three agencies play a
critical role in the national intelligence mission, the
spending of NSA and NRO comprises a significant portion of
the entire intelligence budget of the United States, and a
substantial portion of the National Intelligence Program. The
activities of NSA and NRO are also of particular concern to
the congressional intelligence committees, because of the
need for NSA's authorized collection to be consistent with
the protection of the civil liberties and privacy interests
of U.S. persons, and because of concerns about NRO's
management of the significant budget resources and mission
with which it is entrusted.
Section 444(b) provides that the amendments made by section
444 apply prospectively. Therefore, the Directors of NSA and
NRO on the date of the enactment of this Act will not be
affected by the amendments, which will apply initially to the
appointment and confirmation of their successors. Section 444
does not alter the role of the Committee on Armed Services in
reviewing and approving the promotion or assignment of
military officers.
The House bill had no similar provision.

[[Page H14488]]

Section 445. Clarification of national security missions of
National Geospatial-Intelligence Agency for analysis and
dissemination of certain intelligence information
The National Imagery and Mapping Agency Act of 1996 (Pub.
L. No. 104-201 (Sept. 23, 1996) (NIMA Act)) formally merged
the imagery analysis and mapping efforts of the Department of
Defense and the CIA. In the NIMA Act, Congress cited a need
``to provide a single agency focus for the growing number and
diverse types of customers for imagery and geospatial
information resources within the Government * * * to
harness, leverage, and focus rapid technological developments
to serve the imagery, imagery intelligence, and geospatial
information customers.'' Section 1102(1) of the NIMA Act.
Since then, there have been rapid developments in airborne
and commercial imagery platforms, new imagery and geospatial
phenomenology, full motion video, and geospatial analysis
tools.
Section 921 of the National Defense Authorization Act for
Fiscal Year 2004 (Pub. L. No. 108-136 (Nov. 24, 2003))
changed the name of the National Imagery and Mapping Agency
to the National Geospatial-Intelligence Agency. The name
change was intended to introduce the term ``geospatial
intelligence'' to better describe the unified activities of
NGA related to the ``analysis and visual representation of
characteristics of the earth and activity on its surface.''
See S. Rep. 108-46 (May 13, 2003) (accompanying The National
Defense Authorization Act for Fiscal Year 2004, S. 1050,
108th Cong., 1st Sess.).
Though the NGA has made significant progress toward
unifying the traditional imagery analysis and mapping
missions of the CIA and Department of Defense, it has been
slow to embrace other facets of ``geospatial intelligence,''
including the processing, storage, and dissemination of full
motion video (``FMV'') and ground-based photography. Rather,
the NGA's geospatial product repositories--containing
predominantly overhead imagery and mapping products--continue
to reflect its heritage. While the NGA is belatedly beginning
to incorporate more airborne and commercial imagery, its data
holdings and products are nearly devoid of FMV and ground-
based photography.
The conferees believe that FMV and ground-based photography
should be included, with available positional data, in NGA
data repositories for retrieval on Department of Defense and
Intelligence Community networks. Current mission planners and
military personnel are well-served with traditional imagery
products and maps, but FMV of the route to and from a
facility or photographs of what a facility would look like to
a foot soldier--rather than from an aircraft--would be of
immense value to military personnel and intelligence
officers. Ground-based photography is amply available from
open sources, as well as other government sources such as
military units, United States embassy personnel, defense
attaches, special operations forces, foreign allies, and
clandestine officers. These products should be better
incorporated into NGA data holdings.
To address these concerns, Section 445 adds an additional
national security mission to the responsibilities of the NGA.
To fulfill this new mission, NGA would be required, as
directed by the DNI, to develop a system to facilitate the
analysis, dissemination, and incorporation of likenesses,
videos, or presentations produced by ground-based platforms,
including handheld or clandestine photography taken by or on
behalf of human intelligence collection organizations or
available as open-source information, into the national
system for geospatial intelligence.
Section 445 also makes clear that this new responsibility
does not include the authority to manage tasking of handheld
or clandestine photography taken by or on behalf of human
intelligence collection organizations. Although Section 445
does not give the NGA authority to set technical requirements
for collection of handheld or clandestine photography, the
conferees encourage the NGA to engage other elements of the
Intelligence Community on these technical requirements to
ensure that their output can be incorporated into the
national system for geospatial-intelligence within the
security handling guidelines consistent with the
photography's classification as determined by the appropriate
authority.
Section 445 is similar to Section 435 of the Senate
amendment. The House bill had no similar provision.
Section 446. Security clearances in the National Geospatial-
Intelligence Agency
Section 446 requires the Secretary of Defense to delegate
to the Director of NGA through December 31, 2008, the
personnel security authority with respect to NGA personnel
that is identical to the personnel security authority of the
Director of NSA with respect to NSA personnel. Section 446 is
designed as an interim measure to address what has been a
large backlog in security clearances at NGA. The conferees
believe the DNI and the Secretary of Defense must continue to
seek a permanent method of addressing clearance matters such
as these. Section 446 is identical to Section 436 of the
Senate amendment. The House bill had no similar provision.

subtitle D--other elements

Section 451. Clarification of inclusion of Coast Guard and
Drug Enforcement Administration as elements of the
Intelligence Community
Section 451 restores, with respect to the United States
Coast Guard, the prior definition of ``intelligence
community'' in the National Security Act of 1947 applicable
to that service. See 50 U.S.C. 401a. Section 1073 of the
Intelligence Reform Act modified the definition of
``intelligence community,'' inadvertently limiting the Coast
Guard's inclusion in the Intelligence Community to the Office
of Intelligence or those portions of the Coast Guard
concerned with the analysis of intelligence. Section 451
clarifies that all of the Coast Guard's intelligence elements
are included within the definition of the ``intelligence
community.''
Section 451 also codifies the joint decision of the DNI and
Attorney General that the Drug Enforcement Administration
should be within the Intelligence Community.
Section 451 is similar to Section 441 of the Senate
amendment and Section 433 of the House bill.

TITLE V--OTHER MATTERS

subtitle A--general intelligence matters

Section 501. Extension of National Commission for Review of
Research and Development Programs of the United States
Intelligence Community
The National Commission for Review of Research and
Development Programs of the United States Intelligence
Community was authorized in Intelligence Authorization Act
for Fiscal Year 2003, and lapsed on September 1, 2004.
Section 501 renews authority for this Commission by extending
the reporting deadline to December 31, 2008, and requiring
that new members be appointed to the Commission. This section
also authorizes funds for the commission from the
Intelligence Community Management Account. Section 501 is
similar to Section 502 of the House bill. The Senate
amendment had no similar provision.
Section 502. Report on intelligence activities
Section 502 requires the DNI to submit a report to the
congressional intelligence committees describing any
authorization, if it exists, to engage in intelligence
activities related to the overthrow of a democratically
elected government during the 10-year period prior to
enactment of this Act. Section 502 is similar to Section 503
of the House bill. The Senate had no comparable provision.
Section 503. Aerial Reconnaissance Platforms
The conferees agreed to include in Section 503 of the
conference report the same amendment to Section 133(b) of the
John Warner National Defense Authorization Act for Fiscal
Year 2007 (``NDAA'') that was included in H.R. 1585, the
National Defense Authorization Act for Fiscal Year 2008 as
passed by the House on May 17, 2007.
Section 501 of the House bill reflected the interest of the
House that the Secretary of Defense not make the
certification required in Section 133(b) of the NDAA until
after a study has been completed to determine whether the
Global Hawk RQ-4 unmanned aerial vehicle has reached mission
capability and has attained collection capabilities on a par
with the capabilities of the U-2 aircraft; the Secretary has
made a determination whether the Global Hawk RQ-4 unmanned
aerial vehicle has reached mission capability and has
attained collection capabilities on a par with the collection
capabilities of the U-2 Block 20 aircraft program as of the
2006 Quadrennial Defense Review; and the study has been
submitted to the congressional committees of jurisdiction in
accordance with the rules of each chamber.
The Senate had no comparable provision.

Subtitle B--Technical Amendments

Section 511. Technical amendments to Title 10, United States
Code, arising from enactment of the Intelligence Reform
and Terrorism Protection Act of 2004
Section 511 corrects a number of technical errors in the
United States Code arising from the enactment of the
Intelligence Reform Act in 2004. Section 511 is identical to
Section 504 of the Senate amendment. The House bill has no
similar provision.
Section 512. Technical amendments to the Central Intelligence
Agency Act of 1949
Section 512 amends the Central Intelligence Agency Act of
1949 by updating references to the National Security Act of
1947 to reflect amendments made by the Intelligence Reform
Act. Section 512 is identical to Section 505 of the Senate
bill and similar to Section 422 of the House bill.
Section 513. Technical amendments to the multiyear National
Intelligence Program
Section 513 updates the ``multiyear national intelligence
program'' to incorporate organizational and nomenclature
changes made by the Intelligence Reform Act. Section 506 is
identical to Section 513 of the Senate amendment and Section
511 of the House bill.
Section 514. Technical clarifications of certain references
to Joint Military Intelligence Program and Tactical
Intelligence and Related Activities
Section 514 makes technical clarifications to the National
Security Act of 1947 to reflect the consolidation of the
Joint Military Intelligence Program and the Tactical
Intelligence and Related Activities program into the Military
Intelligence Program. This section preserves the requirement
that the DNI participate in the development of the annual
budget and be consulted prior to the transfer or
reprogramming of funds for the Military Intelligence Program.
Section 514 is identical to Section 502 of the Senate
amendment and Section 512 of the House bill.

[[Page H14489]]

Section 515. Technical amendments to the National Security
Act of 1947
Section 515 makes a number of technical corrections to the
National Security Act of 1947 arising from enactment of the
Intelligence Reform Act. Conferees removed one technical
correction because it was unnecessary to clarify the scope of
a completed reporting requirement. Section 515 is otherwise
identical to Section 501 of the Senate bill and Section 513
of the House bill.
Section 516. Technical amendments to the Intelligence Reform
and Terrorism Prevention Act of 2004
Section 516 makes a number of technical and conforming
amendments to the Intelligence Reform Act. Section 516 is
identical to Section 503 of the Senate amendment and Section
514 of the House bill.
Section 517. Technical amendments to the Executive Schedule
Section 517 makes technical amendments to the Executive
Schedule to correct outdated and incorrect references to
``Director of Central Intelligence,'' ``Deputy Directors of
Central Intelligence,'' and ``General Counsel to the National
Intelligence Director.'' Section 517 is substantially similar
to Section 507 of the Senate amendment and Section 515 of the
House bill.

General Matters

Items not included
The managers agreed not to include in the conference report
certain sections from the House bill and the Senate amendment
because these sections were unnecessary; the requirements in
the section had been or would be otherwise fulfilled; the
sections related to activities for which funds would not be
available; or for other reasons.
Because the DNI expressed concerns over the increase in the
number of Senate-confirmed positions within the Intelligence
Community, the conferees reviewed the total number of Senate-
confirmed positions in the Senate amendment and the House
bill. On that review, the conferees determined to limit the
additional confirmed positions in this conference report to
the three positions they identified to be the highest current
priority. In doing so, the conferees eliminated a provision
that would have required the head of NGA to be confirmed by
the Senate, as discussed in Section 444 of this joint
explanatory statement, and removed Section 421 of the Senate
amendment and Section 421 of the House bill. Section 421 of
the Senate amendment and House bill would have made the
position of Deputy Director of the Central Intelligence
Agency a statutory position that required appointment by the
President, with the advice and consent of the Senate. The
conferees expect that the congressional intelligence
committees will continue to consider the appropriate method
of appointment of the Deputy Director of the Central
Intelligence Agency.
The conference report also eliminates Section 407 of the
House bill, which would have required the DNI to submit a
National Intelligence Estimate on the anticipated
geopolitical effects of global climate change on the national
security of the United States. The conferees remain fully
committed to this assessment. The conferees note the DNI has
stated that work on such a national intelligence assessment
has already begun. The conferees expect that the national
intelligence assessment will be transmitted to Congress in a
timely manner.
The House receded on the following sections: Section 405,
eligibility for incentive awards of personnel assigned to the
Office of the Director of National Intelligence; Section 504,
reiteration of the Foreign Intelligence Surveillance Act of
1978 (``FISA'') as the exclusive means for electronic
surveillance; Section 517, technical amendments relating to
redesignation of the National Imagery and Mapping Agency as
the National Geospatial-Intelligence Agency; Section 601,
identification of best practices for the communication of
information concerning a terrorist threat; and Section 602,
centers of best practices.
The Senate receded on the following sections: Section 106,
development and acquisition program; Section 315, submittal
to Congress of certain FISA court orders; Section 409,
reserve for contingencies of the Office of the Director of
National Intelligence; Section 508, technical amendments
relating to redesignation of the National Imagery and Mapping
Agency as the National Geospatial-Intelligence Agency; and
Section 509, technical amendments relating to the
responsibility of the Director of National Intelligence. The
elimination of Section 106 of the Senate amendment is
discussed in more detail in the classified annex.
With respect to the two provisions in the House bill and
Senate amendment dealing with FISA, it was the judgment of
the conferees that they would best be addressed in pending
legislation to amend FISA.
Compliance with rule XXI, CL. 9 (House) and with rule XLIV
(Senate)
The following list is submitted in compliance with clause 9
of rule XXI of the Rules of the House of Representatives and
rule XLIV of the Standing Rules of the Senate, which require
publication of a list of congressionally directed spending
items (Senate), congressional earmarks (House), limited tax
benefits, and limited tariff benefits included in the
conference report, the joint explanatory statement, or the
classified schedule of authorizations accompanying the
conference report, including the name of each Senator, House
Member, Delegate, or Resident Commissioner who submitted a
request to the Committee of jurisdiction for each item so
identified. Congressionally directed spending items (as
defined in the Senate rule) and congressional earmarks (as
defined in the House rule) in this division of the conference
report, the joint explanatory statement, or the classified
schedule of authorizations are listed below. The conference
report, the joint explanatory statement, and the classified
schedule of authorizations contain no limited tax benefits or
limited tariff benefits as defined in the applicable House
and Senate rules.
The following items are included in the NIP authorization:
(1) A provision directing the expenditure of $3,000,000 for
research into advanced mirror development in the National
Reconnaissance Program. The provision was requested by
Congressman Tierney.
(2) A provision adding $3,200,000 to the National Security
Agency for the RC-135 sensor upgrade. The provision was added
at the request of Congressman Hall of Texas.
(3) A provision adding $2,750,000 to the National Security
Agency for geo-location software development. The provision
was added at the request of Congresswoman Eshoo.
(4) A provision adding $3,000,000 to the National Security
Agency for a Counterproliferation system prototype. The
provision was requested by Congressman Ruppersberger.
(5) A provision adding $23,000,000 to fund the operations
of the NDIC. The provision was added at the request of
Congressman Murtha.
(6) A provision adding $1,600,000 to the Community
Management Account for the Centers of Academic Excellence.
The provision was requested by Congressman Hastings of
Florida.
(7) A provision adding $1,500,000 for the Laboratory for
High-Performance Computational Systems at the Missile and
Space Intelligence Center. The provision was requested by
Congressman Cramer.
(8) A provision adding $1,000,000 to improve rapid missile
all-source analysis at the Missile and Space Intelligence
Center. The provision was requested by Congressmen Cramer and
Everett.
(9) A provision adding $4,000,000 for a Missile and Space
Intelligence Center simulation project. The provision was
requested by Congressman Cramer and Everett.
(10) A provision adding $1,000,000 for seismic research to
the General Defense Intelligence Program. The provision was
requested by Congressman Tierney.
(11) A provision adding $2,000,000 to the National
Geospatial Intelligence Program for a global geospatial data
project. The provision was requested by Congressman Everett.
(12) A provision adding $1,000,000 for joint intelligence
training and education to the Joint Counterintelligence
Training Activity. The provision was requested by Congressman
Murtha.
(13) A provision adding $1,000,000 for mobile missile
analysis and detection to the General Defense Intelligence
Program. The provision was requested by Congressman Murtha.
(14) A provision adding $200,000 to the Office of the
Director of National Intelligence for an Intelligence
Training Program run by the Kennedy School of Government.
This program was started in fiscal year 2007, but the
President did not request funding for it for fiscal year
2008. The provision was added at the request of Senator
Rockefeller.
(15) A provision adding $3,000,000 to the Naval
Oceanographic Command. This provision was added at the
request of Senator Lott.
(16) A provision directing the expenditure of $3,000,000
for a classified effort with the National Reconnaissance
Office's GEOINT/SIGINT Integrated Ground Development
Engineering and Management Expenditure Center. This provision
was added at the request of Senator Rockefeller.
In addition, the following earmarks (as defined in the
House rule) are included in the Military Intelligence Program
and the Information Systems Security Program. The House
Permanent Select Committee on Intelligence shares
jurisdiction of these programs with the House Armed Services
Committee.
(1) A provision adding $2,000,000 to the National Security
Agency for a radio frequency signal collection program. The
provision was requested by Congressman Ruppersberger.
(2) A provision adding $1,000,000 to the National Security
Agency for a next-generation signal intelligence sensor. The
provision was requested by Congressman McCaul.
(3) A provision adding $1,000,000 to Special Operations
Command for tactical signals intelligence and geo-location
cognitive analysis. The provision was requested by
Congressman Cramer.
(4) A provision adding $1,000,000 to the United States Army
for Battle Lab collection management tool synchronization.
The provision was requested by Congressman Cramer.
(5) A provision adding $1,500,000 to the United States Army
for sensor visualization and data fusion. The provision was
requested by Congressman Tierney.
(6) A provision adding $3,000,000 to the United States Air
Force for the RC-135 modernization. The provision was
requested by Congressman Hall of Texas.
(7) A provision adding $2,000,000 to the Office of the
Secretary of Defense for the Western Hemisphere Security
Analysis Center. The provision was requested by Congressman
Hastings of Florida.

[[Page H14490]]

(8) A provision adding $10,000,000 to the National Security
Agency for the national/tactical gateway. The provision was
requested by Congressman Ruppersberger.
(9) A provision adding $2,500,000 for computer chip
hardening to the National Security Agency. The provision was
requested by Congressman Ruppersberger.
(10) A provision adding $2,500,000 for the cryptographic
modernization program to the National Security Agency. The
provision was requested by Congressman Honda.
From the Permanent Select Committee on Intelligence, for
consideration of the House bill and the Senate amendment, and
modifications committed to conference:
Silvestre Reyes,
Alcee L. Hastings,
Leonard L. Boswell,
Bud Cramer,
Anna G. Eshoo,
Rush Holt,
C. A. Ruppersberger,
Mike Thompson,
Janice Schakowsky,
James R. Langevin,
Patrick J. Murphy.
From the Committee on Armed Services, for consideration of
defense tactical intelligence and related activities:
Ike Skelton,
John M. Spratt, Jr.,
Managers on the Part of the House.

John Rockefeller,
Dianne Feinstein,
Ron Wyden,
Evan Bayh,
Barbara a. Mikulski,
Russell D. Feingold,
Bill Nelson,
Sheldon Whitehouse,
Chuck Hagel,
Olympia J. Snowe,
Carl Levin.
Managers on the Part of the Senate.

____________________