Specifies that the amounts authorized and the authorized personnel ceilings as of September 30, 2005, for such activities are those specified in the classified Schedule of Authorizations, which shall be made available to the Senate and House Appropriations Committees and the President.

Allows the Director of Central Intelligence, with the approval of the Director of the Office of Management and Budget, to authorize employment of civilian personnel in excess of the number authorized for FY 2005 when necessary for the performance of important intelligence functions. Requires notification of the congressional intelligence committees on the use of such authority.

Authorizes appropriations for the Intelligence Community Management Account for FY 2005, as well as for full-time personnel for elements within such Account.

Authorizes appropriations for FY 2005 for the Central Intelligence Agency Retirement and Disability Fund.

Specifies that the authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise permitted by the Constitution or laws of the United States.

(Sec. 102) Specifies that the amounts authorized and the authorized personnel ceilings as of September 30, 2005, for such activities are those specified in the classified Schedule of Authorizations, which shall be made available to the Senate and House Appropriations Committees and the President.

(Sec. 103) Allows the Director of Central Intelligence (DCI), with the approval of the Director of the Office of Management and Budget, to authorize employment of civilian personnel in excess of the number authorized for FY 2005 when necessary to the performance of important intelligence functions. Requires notification of the congressional intelligence committees.

(Sec. 104) Authorizes appropriations for the Intelligence Community Management (ICM) Account for FY 2005, for full-time personnel for elements within such Account, and for certain classified personnel. Earmarks a specified amount of such funds for the National Drug Intelligence Center.

Title II: Central Intelligence Agency Retirement and Disability System - (Sec. 201) Authorizes appropriations for FY 2005 for the Central Intelligence Agency Retirement and Disability Fund.

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

(Sec. 302) Specifies that the authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise permitted by the Constitution or laws of the United States.

(Sec. 303) Amends the National Security Act of 1947 to replace the position of Assistant Director of Central Intelligence for Administration with the position of Assistant Director of Central Intelligence for Information Management, making such Assistant Director the chief information officer of the intelligence community (IC).

Title IV: Central Intelligence Agency - (Sec. 401) Amends the Central Intelligence Agency Voluntary Separation Pay Act to repeal provisions which: (1) terminate such voluntary separation pay authority after September 30, 2003; and (2) require the DCI to remit to the Office of Personnel Management, for deposit in the Treasury, funds representing 15 percent of the final basic pay of each employee receiving such separation pay.

Title V: Department of Defense Intelligence Activities - (Sec. 501) Amends the National Security Agency Act of 1959 to establish the National Security Agency Emerging Technologies Panel to study, assess, and advise the DCI on the research, development, and application of existing and emerging science and technology advances on encryption and other topics.

Title VI: Education - Subtitle A: National Security Education Program - (Sec. 601) Amends the Intelligence Authorization Act for Fiscal Year 1992 to require the DCI to transfer specified amounts to the Secretary of Education, from amounts appropriated for the ICM Account for each fiscal year beginning with 2005, to carry out national security education scholarship, fellowship, and grant programs authorized under such Act. Revises the post-education service obligations under such Act to: (1) allow a delay in commencement of the service obligation of up to three years for scholarship recipients and up to two years for fellowship recipients; (2) require only a one-year service obligation for scholarship recipients (currently, one year for each year of scholarship assistance); and (3) allow such service obligation, with respect to scholarship recipients, to be served with the Department of State or Homeland Security (currently, only with DOD).

(Sec. 603) Requires the DCI to transfer funds from the ICM Account, beginning with the 2005 fiscal year, to carry out the grant program for the National Flagship Language Initiative (an Initiative for achieving advanced levels of proficiency in languages designated as critical to U.S. national security).

Amends the David L. Boren National Security Education Act of 1991 to require students receiving training under the above Initiative to enter into a service agreement with the IC element providing such training, or to reimburse the United States with respect to obligated service not completed. Authorizes the head of the IC element concerned to release an employee from the reimbursement obligation when equity or the interests of the United States so require. Directs the Secretary of Defense to take appropriate steps to increase the number of qualified educational institutions that receive Initiative grants to establish, operate, or improve activities designed to train such students.

(Sec. 604) Authorizes the Secretary of Defense, as part of the national security education program, to award scholarships to U.S. citizens who: (1) are native speakers of a foreign language identified as critical to U.S. national security; and (2) are not proficient at a professional level in the English language, in order to enable such students to pursue English studies at U.S. institutions of higher education to attain professional proficiency. Requires such students to enter into a service agreement to work in a national security position in the area of study involved.

Requires the DCI to transfer funds from the ICM Account to the Secretary of Defense, beginning with the 2005 fiscal year, to carry out such student training program.

Subtitle B: Improvement in Intelligence Community Foreign Language Skills - (Sec. 611) Amends the National Security Act of 1947 to establish the position of Assistant Director of Central Intelligence for Language and Education to oversee and coordinate requirements for foreign language education and training of the IC, and related duties. Requires specified reports from such Assistant Director to Congress.

(Sec. 612) Prohibits an individual from being appointed to a position in the Senior Intelligence Service in the Directorate of Intelligence or Directorate of Operations of the CIA unless the DCI determines that such individual: (1) is certified as having a professional speaking and reading proficiency in a foreign language; and (2) is able to communicate the priorities of the United States and exercise influence in that foreign language. Requires the DCI to report to Congress on any appointments that should be exempt from such language requirement.

(Sec. 613) Authorizes the Secretary of Defense and DCI to jointly establish a program to advance foreign language skills in languages that are critical to the capability of the IC to carry out U.S. national security objectives. Requires the Secretary and DCI to determine actions required to improve the education of IC personnel in such critical foreign languages. Authorizes the head of an IC element to enter into one or more educational partnerships with educational institutions to enhance such language study, with assistance provided to such institutions for providing such education. Outlines program and partnership requirements and limitations. Authorizes the DCI to assign IC employees in analyst positions requiring foreign language expertise as students at accredited professional, technical, or other institutions for training at the graduate or undergraduate level in foreign languages required to conduct the duties and responsibilities of such positions. Authorizes the DCI to reimburse the students for such education and training costs.

(Sec. 614) Directs the DCI to conduct a three-year pilot project to establish a Civilian Linguist Reserve Corps comprised of U.S. citizens with advanced levels of proficiency in foreign languages who would be available, upon a call of the President, to perform such service or duties with respect to such languages in the Federal Government as the President may specify. Requires the DCI to submit to Congress an initial and final report on the pilot project. Authorizes appropriations.

(Sec. 615) Recodifies under Federal national security law provisions of the Intelligence Authorization Act for Fiscal Year 2003 which established the National Virtual Translation Center to provide for timely and accurate translations of foreign intelligence.

(Sec. 616) Directs the Secretary of Defense to: (1) study methods to improve the recruitment and retention of qualified foreign language instructors at the Foreign Language Center of the Defense Language Institute (including expediting lawful admission status for alien instructors); and (2) report study results to the intelligence and defense committees.

(Sec. 102) Specifies that the amounts authorized and the authorized personnel ceilings as of September 30, 2005, for such activities are those specified in the classified Schedule of Authorizations, which shall be made available to the Senate and House Appropriations Committees and the President.

(Sec. 103) Allows the Director of Central Intelligence (DCI), with the approval of the Director of the Office of Management and Budget, to authorize employment of civilian personnel in excess of the number authorized for FY 2005 when necessary to the performance of important intelligence functions. Requires notification of the congressional intelligence committees.

(Sec. 104) Authorizes appropriations for the Intelligence Community Management (ICM) Account for FY 2005, for full-time personnel for elements within such Account, and for certain classified personnel. Earmarks a specified amount of such funds for the National Drug Intelligence Center.

Title II: Central Intelligence Agency Retirement and Disability System - (Sec. 201) Authorizes appropriations for FY 2005 for the Central Intelligence Agency Retirement and Disability Fund.

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

(Sec. 302) Specifies that the authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise permitted by the Constitution or laws of the United States.

(Sec. 303) Amends the National Security Act of 1947 to replace the position of Assistant Director of Central Intelligence for Administration with the position of Assistant Director of Central Intelligence for Information Management, making such Assistant Director the chief information officer of the intelligence community (IC).

(Sec. 304) Requires the DCI to report to specified congressional committees on efforts of the Government of Pakistan to: (1) acquire, transfer, or combat the proliferation of weapons of mass destruction (WMDs); (2) safeguard its nuclear weapons stockpile; (3) fight Al Qaeda and the Taliban, and dismantle terrorist networks operating in Pakistan; and (4) establish and strengthen Pakistani democratic institutions.

(Sec. 305) Expresses the sense of Congress that: (1) the world has been made safer with the dismantling and removal of Libya's WMDs and the means to deliver them; (2) such action was the result of decades of U.S. and multilateral sanctions against Libya, U.S. resolve in the global war on terror, and the liberation of Iraq by U.S. and Coalition Forces; (3) the President and previous administrations should be commended for such actions; and (4) other countries such as Iran, Syria, and North Korea should follow Libya's example and voluntarily dismantle their WMDs and submit their nuclear programs to international inspections.

(Sec. 306) Expresses the sense of Congress that the apprehension, detention, and interrogation of terrorists are fundamental to the successful prosecution of the Global War on Terror.

(Sec. 307) Expresses the sense of Congress that: (1) the IC should be revitalized by investing in IC missions, people, and capabilities; and (2) the efforts of the men and women of the IC should be recognized and commended.

(Sec. 308) Expresses the sense of Congress that the head of each IC element, including the CIA, FBI, and appropriate officials in the Departments of Defense, State, and the Treasury, should make available upon appropriate congressional request any information and documents in connection with any congressional investigation of the Office of the Iraq Oil-for-Food Program of the United Nations.

(Sec. 309) Directs the CIA Inspector General to: (1) audit the evidence of any relationship existing before September 11, 2001, between the regime of Saddam Hussein and Al Qaeda as referenced in any intelligence reporting of the CIA; and (2) report audit results to Congress.

(Sec. 310) Requires the DCI to submit to Congress an unclassified report on IC progress on the use of Open Source Intelligence.

Title IV: Central Intelligence Agency - (Sec. 401) Amends the Central Intelligence Agency Voluntary Separation Pay Act to repeal provisions which: (1) terminate such voluntary separation pay authority after September 30, 2003; and (2) require the DCI to remit to the Office of Personnel Management, for deposit in the Treasury, funds representing 15 percent of the final basic pay of each employee receiving such separation pay.

Title V: Department of Defense Intelligence Activities - (Sec. 501) Amends the National Security Agency Act of 1959 to establish the National Security Agency Emerging Technologies Panel to study, assess, and advise the DCI on the research, development, and application of existing and emerging science and technology advances on encryption, and other topics.

Title VI: Education - Subtitle A: National Security Education Program - (Sec. 601) Amends the Intelligence Authorization Act for Fiscal Year 1992 to require the DCI to transfer specified amounts to the Secretary of Education, from amounts appropriated for the ICM Account for each fiscal year beginning with 2005, to carry out national security education scholarship, fellowship, and grant programs authorized under such Act. Revises the post-education service obligations under such Act to: (1) allow a delay in commencement of the service obligation of up to three years for scholarship recipients and up to two years for fellowship recipients; (2) require only a one-year service obligation for scholarship recipients (currently, one year for each year of scholarship assistance); and (3) allow such service obligation, with respect to scholarship recipients, to be served with the Department of State or Homeland Security (currently, only with DOD).

(Sec. 603) Requires the DCI to transfer funds from the ICM Account, beginning with the 2005 fiscal year, to carry out the grant program for the National Flagship Language Initiative (an Initiative for achieving advanced levels of proficiency in languages designated as critical to U.S. national security).

Amends the David L. Boren National Security Education Act of 1991 to require students receiving training under the above Initiative to enter into a service agreement with the IC element providing such training, or to reimburse the United States with respect to obligated service not completed. Authorizes the head of the IC element concerned to release an employee from the reimbursement obligation when equity or the interests of the United States so require. Directs the Secretary of Defense to take appropriate steps to increase the number of qualified educational institutions that receive Initiative grants to establish, operate, or improve activities designed to train such students.

(Sec. 604) Authorizes the Secretary of Defense, as part of the national security education program, to award scholarships to U.S. citizens who: (1) are native speakers of a foreign language identified as critical to U.S. national security; and (2) are not proficient at a professional level in the English language, in order to enable such students to pursue English studies at U.S. institutions of higher education to attain professional proficiency. Requires such students to enter into a service agreement to work in a national security position in the area of study involved.

Requires the DCI to transfer funds from the ICM Account to the Secretary of Defense, beginning with the 2005 fiscal year, to carry out such student training program.

Subtitle B: Improvement in Intelligence Community Foreign Language Skills - (Sec. 611) Amends the National Security Act of 1947 to establish the position of Assistant Director of Central Intelligence for Language and Education to oversee and coordinate requirements for foreign language education and training of the IC, and related duties. Requires specified reports from such Assistant Director to Congress.

(Sec. 612) Prohibits an individual from being appointed to a position in the Senior Intelligence Service in the Directorate of Intelligence or Directorate of Operations of the CIA unless the DCI determines that such individual: (1) is certified as having a professional speaking and reading proficiency in a foreign language; and (2) is able to communicate the priorities of the United States and exercise influence in that foreign language. Requires the DCI to report to Congress on any appointments that should be exempt from such language requirement.

(Sec. 613) Authorizes the Secretary of Defense and DCI to jointly establish a program to advance foreign language skills in languages that are critical to the capability of the IC to carry out U.S. national security objectives. Requires the Secretary and DCI to determine actions required to improve the education of IC personnel in such critical foreign languages. Authorizes the head of an IC element to enter into one or more educational partnerships with educational institutions to enhance such language study, with assistance provided to such institutions for providing such education. Outlines program and partnership requirements and limitations. Authorizes the DCI to assign IC employees in analyst positions requiring foreign language expertise as students at accredited professional, technical, or other institutions for training at the graduate or undergraduate level in foreign languages required to conduct the duties and responsibilities of such positions. Authorizes the DCI to reimburse the students for such education and training costs.

(Sec. 614) Directs the DCI to conduct a three-year pilot project to establish a Civilian Linguist Reserve Corps comprised of U.S. citizens with advanced levels of proficiency in foreign languages who would be available, upon a call of the President, to perform such service or duties with respect to such languages in the Federal Government as the President may specify. Requires the DCI to submit to Congress an initial and final report on the pilot project. Authorizes appropriations.

(Sec. 615) Recodifies under Federal national security law provisions of the Intelligence Authorization Act for Fiscal Year 2003 which established the National Virtual Translation Center to provide for timely and accurate translations of foreign intelligence.

(Sec. 616) Directs the Secretary of Defense to: (1) study methods to improve the recruitment and retention of qualified foreign language instructors at the Foreign Language Center of the Defense Language Institute (including expediting lawful admission status for alien instructors); and (2) report study results to the intelligence and defense committees.

Title VII: Reform of Designation of Foreign Terrorist Organizations - (Sec. 701) Amends the Immigration and Nationality Act with respect to the designation of foreign terrorist organizations by the Secretary of Homeland Security to: (1) continue such designation until it is revoked or set aside (currently lasts for two years); (2) require the Secretary to review such designation if the designated organization files a petition for revocation within a prescribed period; (3) require the petitioner to submit evidence that circumstances causing such designation have changed; (4) require the Secretary to make a petition determination within 180 days, and to publish it in the Federal Register; (5) require the Secretary to review a designation if no review has taken place for an organization within a six-year period; and (6) authorize the Secretary to amend a designation if an organization changes its name, adopts a new alias, dissolves and then reconstitutes itself under a different name, or merges with another organization.

(Sec. 702) Amends the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 to require the inclusion, in annual State Department reports on terrorism, of information on terrorist groups that have or seek WMDs as well as groups that have been designated as foreign terrorist organizations.

(Sec. 102) Specifies that the amounts authorized and the authorized personnel ceilings as of September 30, 2005, for such activities are those specified in the classified Schedule of Authorizations, which shall be made available to the Senate and House Appropriations Committees and the President.

(Sec. 103) Allows the Director of Central Intelligence (DCI), with the approval of the Director of the Office of Management and Budget, to authorize employment of civilian personnel in excess of the number authorized for FY 2005 (by not more than two percent) when necessary to the performance of important intelligence functions. Requires notification of the congressional intelligence committees.

(Sec. 104) Authorizes appropriations for the Intelligence Community Management Account of the DCI for FY 2005 as well as for full-time personnel for elements within such Account. Earmarks a specified amount of such funds for the National Drug Intelligence Center.

(Sec. 105) Incorporates into this Act each requirement to submit a report to the intelligence committees that is included in the joint explanatory statement to accompany the conference report on this bill, or in the classified annex to this Act.

(Sec. 106) Deems specifically authorized for such purposes, through FY 2005, any funds appropriated for an intelligence or intelligence-related activity for FY 2004 in excess of the amount specified for such activity in its classified Schedule of Authorizations.

(Sec. 107) Requires the DCI to ensure that any report, review, study, or plan required by this Act that involves the intelligence or intelligence-related activities of DOD or the Department of Energy is prepared or conducted in consultation with the Secretary of Defense or Energy, as appropriate. Requires any such report, review, study, or plan to be submitted, in addition to any other committee specified in the provision concerned, to the congressional armed services and intelligence committees and the subcommittees on defense of the appropriations committees.

Title II: Central Intelligence Agency Retirement and Disability System - (Sec. 201) Authorizes appropriations for FY 2005 for the Central Intelligence Agency Retirement and Disability Fund.

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

(Sec. 302) Specifies that the authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise authorized by the Constitution or laws of the United States.

(Sec. 304) Includes as a "foreign power," for purposes of the Foreign Intelligence Surveillance Act of 1978, any person other than a U.S. person who engages in international terrorism or activities in preparation therefor.

(Sec. 305) Amends the above Act to require the Attorney General to report annually to the intelligence and judiciary committees on non-U.S. persons targeted under the authority of such Act for electronic surveillance, physical searches, pen registers, and access to records, as well as information on the subsequent use of the results of such activities.

(Sec. 306) Requires the DCI to submit to Congress an assessment that identifies and describes each country or region that is a sanctuary for terrorists or terrorist organizations.

(Sec. 307) Extends until September 1, 2005, the due date of a final report by the National Commission for the Review of the Research and Development Programs of the U.S. Intelligence Community.

(Sec. 308) Amends the Public Interest Declassification Act of 2000 to extend through December 27, 2008, the Public Interest Declassification Board.

Title IV: Central Intelligence Agency - (Sec. 401) Makes permanent (currently expires after September 30, 2003) the CIA voluntary separation incentive program.

Amends the Central Intelligence Agency Act of 1949 to authorize the DCI to take certain actions to: (1) protect from unauthorized disclosure intelligence operations, the identities of undercover intelligence officers, intelligence sources and methods, or intelligence cover mechanisms; or (2) meet special requirements of work related to the collection of foreign intelligence or other authorized activities. Authorizes the DCI, as part of such actions, to: (1) pay any designated employee under nonoffical cover (a designated employee) additional compensation; (2) establish and administer a nonofficial cover employee retirement system for designated employees, or allow designated employees to convert to coverage under the Federal retirement system; (3) establish and administer a nonofficial cover employee health insurance program, or allow a designated employee to convert to the Federal Employees Health Benefits Program; (4) establish and administer a nonofficial cover employee life insurance program, or allow a designated employee to convert to the Federal Employees Group Life Insurance Program; (5) exempt a designated employee from mandatory compliance with any Federal regulation, rule, standardized administrative policy, process, or procedure that the DCI determines would be inconsistent with the nonofficial cover of the employee and could expose that employee to detection as a Federal employee; or (6) allow a designated employee to file a Federal or State tax return as if that employee is not a Federal employee.

Title V: Department of Defense Intelligence Matters - (Sec. 501) Allows funds designated for FY 2005 for assistance to the Government of Colombia for counterdrug activities to be used: (1) to support a campaign against narcotics trafficking and against activities by organizations designated as terrorist organizations; and (2) to protect human health and welfare in emergency circumstances, including rescue operations. Prohibits, under such authority, the participation of any U.S. Armed Forces personnel or U.S. civilian contractor employed by the Armed Forces in any combat operation, except for acting in self defense or during the course of search and rescue operations for U.S. citizens.

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(Sec. 102) Specifies that the amounts authorized and the authorized personnel ceilings as of September 30, 2005, for such activities are those specified in the classified Schedule of Authorizations, which shall be made available to the Senate and House Appropriations Committees and the President.

(Sec. 103) Allows the Director of National Intelligence (DNI), with the approval of the Director of the Office of Management and Budget, to authorize employment of civilian personnel in excess of the number authorized for FY 2005 (by not more than two percent) when necessary to the performance of important intelligence functions. Requires notification of the congressional intelligence committees.

(Sec. 104) Authorizes appropriations for the Intelligence Community Management (ICM) Account of the DNI for FY 2005 as well as for full-time personnel for elements within such Account. Earmarks a specified amount of such funds for the National Drug Intelligence Center.

(Sec. 105) Incorporates into this Act each requirement to submit a report to the intelligence committees that is included in the joint explanatory statement to accompany the conference report on this bill, or in the classified annex to this Act.

(Sec. 106) Deems specifically authorized for such purposes, through FY 2005, any funds appropriated for an intelligence or intelligence-related activity for FY 2004 in excess of the amount specified for such activity in its classified Schedule of Authorizations.

(Sec. 107) Requires the DNI to ensure that any report, review, study, or plan required by this Act that involves the intelligence or intelligence-related activities of DOD or the Department of Energy is prepared or conducted in consultation with the Secretary of Defense or Energy, as appropriate. Requires any such report, review, study, or plan to be submitted, in addition to any other committee specified in the provision concerned, to the congressional armed services and intelligence committees and the subcommittees on defense of the appropriations committees.

Title II: Central Intelligence Agency Retirement and Disability System - (Sec. 201) Authorizes appropriations for FY 2005 for the Central Intelligence Agency Retirement and Disability Fund.

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

(Sec. 302) Specifies that the authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise authorized by the Constitution or laws of the United States.

(Sec. 303) Amends the National Security Act of 1947 to establish within the Office of the DNI a Chief Information Officer to assist the DNI and to serve as the Chief Information Officer of the intelligence community (IC).

(Sec. 304) Amends the Intelligence Authorization Act for Fiscal Year 2003 to direct that the National Virtual Translation Center established under such Act provide for the timely and accurate translation of foreign intelligence for all IC elements. Provides for the location for the discharge of Center functions.

(Sec. 305) Requires the DNI to submit to Congress an assessment that identifies and describes each country or region that is a sanctuary for terrorists or terrorist organizations.

(Sec. 306) Expresses the sense of Congress that the head of each IC element, including the CIA, FBI, and appropriate officials in the Departments of Defense, State, and the Treasury, should make available upon appropriate congressional request any information and documents in connection with any congressional investigation of the Office of the Iraq Oil-for-Food Program of the United Nations.

Title IV: Central Intelligence Agency - (Sec. 401) Makes permanent (currently expires after September 30, 2003) the CIA voluntary separation incentive program.

Amends the Central Intelligence Agency Act of 1949 to authorize the Director of Central Intelligence (DCI) to take certain actions to: (1) protect from unauthorized disclosure intelligence operations, the identities of undercover intelligence officers, intelligence sources and methods, or intelligence cover mechanisms; or (2) meet special requirements of work related to the collection of foreign intelligence or other authorized activities. Authorizes the DCI, as part of such actions, to: (1) pay any designated employee under nonofficial cover (a designated employee) additional compensation; (2) establish and administer a nonofficial cover employee retirement system for designated employees, or allow designated employees to convert to coverage under the Federal retirement system; (3) establish and administer a nonofficial cover employee health insurance program, or allow a designated employee to convert to the Federal Employees Health Benefits Program; (4) establish and administer a nonofficial cover employee life insurance program, or allow a designated employee to convert to the Federal Employees Group Life Insurance Program; (5) exempt a designated employee from mandatory compliance with any Federal regulation, rule, standardized administrative policy, process, or procedure that the DCI determines would be inconsistent with the nonofficial cover of the employee and could expose that employee to detection as a Federal employee; or (6) allow a designated employee to file a Federal or State tax return as if that employee is not a Federal employee.

Title V: Department of Defense Intelligence Matters - (Sec. 501) Amends the National Security Agency Act of 1959 to establish the National Security Agency Emerging Technologies Panel to study, assess, and advise the NSA Director on the research, development, and application of existing and emerging science and technology advances, advances in encryption, and other topics.

(Sec. 502) Allows funds designated for FY 2005 or 2006 for assistance to the Government of Colombia for counterdrug activities to be used: (1) to support a campaign against narcotics trafficking and against activities by organizations designated as terrorist organizations; and (2) to protect human health and welfare in emergency circumstances, including rescue operations. Prohibits, under such authority, the participation of any U.S. Armed Forces personnel or U.S. civilian contractor employed by the Armed Forces in any combat operation in connection with such assistance, except for acting in self defense or during the course of search and rescue operations for U.S. citizens.

Title VI: Education - Subtitle A: National Security Education Program - (Sec. 601) Amends the David L. Boren National Security Education Act of 1991 to require the DNI to transfer specified amounts to the Secretary of Education, from amounts appropriated for the ICM Account for each fiscal year beginning with 2005, to carry out national security education scholarship, fellowship, and grant programs authorized under such Act. Requires students receiving such scholarship, fellowship, or grant assistance to enter into a service agreement with the head of the IC element providing the assistance to serve two years for each year of assistance provided, and to reimburse the United States with respect to obligated service not completed. Authorizes the appropriate IC head to release an employee from the reimbursement obligation when equity or the interests of the United States so require. Directs the Secretary of Defense to take appropriate steps to increase the number of qualified educational institutions that receive grants under the National Flagship Language Initiative to establish, operate, or improve activities designed to train such students.

(Sec. 603) Authorizes the Secretary of Defense, as part of the national security education program, to award scholarships to U.S. citizens who: (1) are native speakers of a foreign language identified as critical to U.S. national security; and (2) are not proficient at a professional level in the English language, in order to enable such students to pursue English studies at U.S. institutions of higher education to attain professional proficiency. Requires such students to enter into a service agreement to work in an appropriate national security position thereafter. Requires the DNI to transfer funds from the ICM Account to the Secretary of Defense, beginning with the 2005 fiscal year, to carry out such student training program.

Subtitle B: Improvements in Intelligence Community Foreign Language Skills - (Sec. 611) Prohibits an individual from being appointed to a position in the Senior Intelligence Service in the Directorate of Intelligence or Directorate of Operations of the CIA unless the DCI determines that such individual is: (1) certified as having a professional speaking and reading proficiency in a foreign language; and (2) able to communicate the priorities of the United States and exercise influence in that foreign language. Requires the DCI to report to Congress on any appointments that should be exempt from such language requirement.

(Sec. 612) Authorizes the Secretary of Defense and DNI to jointly carry out a program to advance foreign language skills in languages that are critical to the capability of the IC to carry out U.S. national security objectives. Requires the Secretary and DNI to determine actions required to improve the education of IC personnel in such critical foreign languages. Authorizes the head of an IC element to enter into one or more educational partnerships with educational institutions to enhance such language study, with assistance provided to institutions providing such education. Outlines program and partnership requirements and limitations. Authorizes the DNI to assign IC employees in analyst positions requiring foreign language expertise as students at accredited professional, technical, or other institutions for training at the graduate or undergraduate level in foreign languages required to conduct the duties and responsibilities of such positions. Authorizes the DNI to reimburse students for education and training costs.

(Sec. 613) Directs the DNI to conduct a three-year pilot project to assess the feasibility and advisability of establishing a Civilian Linguist Reserve Corps comprised of U.S. citizens with advanced levels of proficiency in foreign languages who would be available upon the call of the DNI to perform in the IC such service or duties with respect to such languages as the DNI may specify. Requires the DNI to submit to Congress an initial and final report on the pilot project. Authorizes appropriations.

(Sec. 614) Requires the DNI to report to Congress on the status, consolidation, and improvement of intelligence education programs.

(Sec. 615) Directs the Secretary of Defense to: (1) study methods to improve the recruitment and retention of qualified foreign language instructors at the Foreign Language Center of the Defense Language Institute (including expediting lawful admission status for alien instructors); and (2) report study results to the intelligence and defense committees.

Title VII: Terrorism Matters - (Sec. 701) Amends the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 to require the inclusion, in annual State Department reports on terrorism, of information on terrorist groups that have or seek weapons of mass destruction as well as groups that have been designated as foreign terrorist organizations.

Title VIII: Other Matters - (Sec. 803) Provides transitional provisions relating to the discharge of certain functions and authorities between the enactment of this Act and the date of appointment of the DNI under provisions of the National Security Act of 1947.]]>