[Congressional Record Volume 150, Number 138 (Tuesday, December 7, 2004)]
[House]
[Pages H11030-H11039]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CONFERENCE REPORT ON H.R. 4548, INTELLIGENCE AUTHORIZATION ACT FOR 
                            FISCAL YEAR 2005

  Mr. HOEKSTRA submitted the following conference report and statement 
on the bill (H.R. 4548) to authorize appropriations for fiscal year 
2005 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. 108-798)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4548), to authorize appropriations for fiscal year 2005 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 title may be cited as the 
     ``Intelligence Authorization Act for Fiscal Year 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Incorporation of reporting requirements.
Sec. 106. Specific authorization of funds for intelligence or 
              intelligence-related activities for which fiscal year 
              2004 appropriations exceed amounts authorized.
Sec. 107. Preparation and submittal of reports, reviews, studies, and 
              plans relating to intelligence activities of Department 
              of Defense and Department of Energy.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                     TITLE III--GENERAL PROVISIONS

Sec. 301. Increase in employee compensation and benefits authorized by 
              law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Chief Information Officer.
Sec. 304. Improvement of authorities relating to National Virtual 
              Translation Center.
Sec. 305. Intelligence assessment on sanctuaries for terrorists.
Sec. 306. Sense of Congress on availability to Congress of information 
              on Iraq Oil-For-Food Program of the United Nations.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Permanent extension of Central Intelligence Agency voluntary 
              separation incentive program.
Sec. 402. Intelligence operations and cover enhancement authority.

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

Sec. 501. National Security Agency Emerging Technologies Panel.
Sec. 502. Use of funds for counterdrug and counterterrorism activities 
              for Colombia.

                          TITLE VI--EDUCATION

            Subtitle A--National Security Education Program

Sec. 601. Annual funding.
Sec. 602. Improvements to National Flagship Language Initiative.
Sec. 603. Scholarship program for English language studies for heritage 
              community citizens of the United States within National 
              Security Education Program.

  Subtitle B--Improvement in Intelligence Community Foreign Language 
                                 Skills

Sec. 611. Foreign language proficiency for certain senior level 
              positions in the Central Intelligence Agency.
Sec. 612. Advancement of foreign languages critical to the intelligence 
              community.
Sec. 613. Pilot project on Civilian Linguist Reserve Corps.
Sec. 614. Report on status, consolidation, and improvement of 
              intelligence education programs.
Sec. 615. Report on recruitment and retention of qualified instructors 
              of the Defense Language Institute.

                      TITLE VII--TERRORISM MATTERS

Sec. 701. Information on terrorist groups that seek weapons of mass 
              destruction and groups that have been designated as 
              foreign terrorist organizations.

                       TITLE VIII--OTHER MATTERS

Sec. 801. Effective date.
Sec. 802. Construction of references to Director of Central 
              Intelligence.
Sec. 803. Savings provisions relating to discharge of certain functions 
              and authorities.
                    TITLE I--INTELLIGENCE ACTIVITIES

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the conduct of the intelligence and 
     intelligence-related activities of the following elements of 
     the United States Government:
       (1) The Central Intelligence Agency.
       (2) The Department of Defense.
       (3) The Defense Intelligence Agency.
       (4) The National Security Agency.
       (5) The Department of the Army, the Department of the Navy, 
     and the Department of the Air Force.
       (6) The Department of State.
       (7) The Department of the Treasury.
       (8) The Department of Energy.
       (9) The Department of Justice.
       (10) The Federal Bureau of Investigation.
       (11) The National Reconnaissance Office.
       (12) The National Geospatial-Intelligence Agency.
       (13) The Coast Guard.
       (14) The Department of Homeland Security.

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Ceilings.--The 
     amounts authorized to be appropriated under section 101, and 
     the authorized personnel ceilings as of September 30, 2005, 
     for the conduct of the intelligence and intelligence-related 
     activities of the elements listed in such section, are those 
     specified in the classified Schedule of Authorizations 
     prepared to accompany the conference report on the bill H.R. 
     4548 of the One Hundred Eighth Congress.
       (b) Availability of Classified Schedule of 
     Authorizations.--The Schedule of Authorizations shall be made 
     available to the Committees on Appropriations of the Senate 
     and House of Representatives and to the President. The 
     President shall provide for suitable distribution of the 
     Schedule, or of appropriate portions of the Schedule, within 
     the executive branch.

     SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

       (a) Authority for Adjustments.--With the approval of the 
     Director of the Office of Management and Budget, the Director 
     of National Intelligence may authorize employment of civilian 
     personnel in excess of the number authorized for fiscal year 
     2005 under section 102 when 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 2 percent of the number of 
     civilian personnel authorized under such section for such 
     element.
       (b) Notice to Intelligence Committees.--The Director of 
     National Intelligence shall promptly notify the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives whenever the Director exercises the authority 
     granted by this section.

     SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Intelligence Community Management 
     Account of the Director of National Intelligence for fiscal 
     year 2005 the sum of $310,466,000. 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, 2006.
       (b) Authorized Personnel Levels.--The elements within the 
     Intelligence Community Management Account of the Director of 
     National Intelligence are authorized 310 full-time personnel

[[Page H11031]]

     as of September 30, 2005. Personnel serving in such elements 
     may be permanent employees of the Intelligence Community 
     Management Account or personnel detailed from other elements 
     of the United States Government.
       (c) Classified Authorizations.--
       (1) Authorization of appropriations.--In addition to 
     amounts authorized to be appropriated for the Intelligence 
     Community Management Account by subsection (a), there are 
     also authorized to be appropriated for the Intelligence 
     Community Management Account for fiscal year 2005 such 
     additional amounts as are specified in the classified 
     Schedule of Authorizations referred to in section 102(a). 
     Such additional amounts for research and development shall 
     remain available until September 30, 2006.
       (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, 
     2005, there are also authorized such additional personnel for 
     such elements as of that date as are specified in the 
     classified Schedule of Authorizations.
       (d) Reimbursement.--Except as provided in section 113 of 
     the National Security Act of 1947 (50 U.S.C. 404h), during 
     fiscal year 2005 any officer or employee of the United States 
     or a member of the Armed Forces who is detailed to the staff 
     of the Intelligence Community Management Account from another 
     element of the United States Government shall be detailed on 
     a reimbursable basis, except that any such officer, employee, 
     or member may be detailed on a nonreimbursable basis for a 
     period of less than one year for the performance of temporary 
     functions as required by the Director of National 
     Intelligence.
       (e) National Drug Intelligence Center.--
       (1) In general.--Of the amount authorized to be 
     appropriated in subsection (a), $42,322,000 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, 2006, and funds provided for procurement 
     purposes shall remain available until September 30, 2007.
       (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 in contravention of the 
     provisions of section 103(d)(1) of the National Security Act 
     of 1947 (50 U.S.C. 403-3(d)(1)).
       (4) Authority.--Notwithstanding any other provision of law, 
     the Attorney General shall retain full authority over the 
     operations of the National Drug Intelligence Center.

     SEC. 105. INCORPORATION OF REPORTING REQUIREMENTS.

       (a) In General.--Each requirement to submit a report to the 
     congressional intelligence committees that is included in the 
     joint explanatory statement to accompany the conference 
     report on the bill H.R. 4548 of the One Hundred Eighth 
     Congress, or in the classified annex to this Act, is hereby 
     incorporated into this Act, and is hereby made a requirement 
     in law.
       (b) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

     SEC. 106. SPECIFIC AUTHORIZATION OF FUNDS FOR INTELLIGENCE OR 
                   INTELLIGENCE-RELATED ACTIVITIES FOR WHICH 
                   FISCAL YEAR 2004 APPROPRIATIONS EXCEED AMOUNTS 
                   AUTHORIZED.

       Funds appropriated for an intelligence or intelligence-
     related activity of the United States Government for fiscal 
     year 2004 in excess of the amount specified for such activity 
     in the classified Schedule of Authorizations prepared to 
     accompany the Intelligence Authorization Act for Fiscal Year 
     2004 (Public Law 108-177; 117 Stat. 2599) 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)). Such funds shall remain available until 
     September 30, 2005.

     SEC. 107. PREPARATION AND SUBMITTAL OF REPORTS, REVIEWS, 
                   STUDIES, AND PLANS RELATING TO INTELLIGENCE 
                   ACTIVITIES OF DEPARTMENT OF DEFENSE AND 
                   DEPARTMENT OF ENERGY.

       (a) Consultation in Preparation.--(1) The Director of 
     National Intelligence shall ensure that any report, review, 
     study, or plan required to be prepared or conducted by a 
     provision of this Act, including a provision of the 
     classified Schedule of Authorizations referred to in section 
     102(a) or the classified annex to this Act, that involves the 
     intelligence or intelligence-related activities of the 
     Department of Defense or the Department of Energy is prepared 
     or conducted in consultation with the Secretary of Defense or 
     the Secretary of Energy, as appropriate.
       (2) The Secretary of Defense or the Secretary of Energy may 
     carry out any consultation required by this subsection 
     through an official of the Department of Defense or the 
     Department of Energy, as the case may be, designated by such 
     Secretary for that purpose.
       (b) Submittal.--Any report, review, study, or plan referred 
     to in subsection (a) shall be submitted, in addition to any 
     other committee of Congress specified for submittal in the 
     provision concerned, to the following committees or 
     subcommittees of Congress, as appropriate:
       (1) The Committee on Armed Services, the Subcommittee on 
     Defense of the Committee on Appropriations, and the Select 
     Committee on Intelligence of the Senate.
       (2) The Committee on Armed Services, the Subcommittee on 
     Defense of the Committee on Appropriations, and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.
 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for the Central 
     Intelligence Agency Retirement and Disability Fund for fiscal 
     year 2005 the sum of $239,400,000.
                     TITLE III--GENERAL PROVISIONS

     SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS 
                   AUTHORIZED BY LAW.

       Appropriations authorized by this Act for salary, pay, 
     retirement, and other benefits for Federal employees may be 
     increased by such additional or supplemental amounts as may 
     be necessary for increases in such compensation or benefits 
     authorized by law.

     SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

     SEC. 303. CHIEF INFORMATION OFFICER.

       (a) Establishment.--(1) Title I of the National Security 
     Act of 1947, as amended by section 1011(a) of the National 
     Security Intelligence Reform Act of 2004, is further amended 
     by inserting after section 103F the following new section:


                      ``chief information officer

       ``Sec. 103G. (a) Chief Information Officer.--To assist the 
     Director of National Intelligence in carrying out the 
     responsibilities of the Director under this Act and other 
     applicable provisions of law, there shall be within the 
     Office of the Director of National Intelligence a Chief 
     Information Officer who shall be appointed by the President, 
     by and with the advice and consent of the Senate.
       ``(b) Chief Information Officer of Intelligence 
     Community.--The Chief Information Officer shall serve as the 
     chief information officer of the intelligence community.
       ``(c) Duties and Responsibilities.--Subject to the 
     direction of the Director of National Intelligence, the Chief 
     Information Officer shall--
       ``(1) manage activities relating to the information 
     technology infrastructure and enterprise architecture 
     requirements of the intelligence community;
       ``(2) have procurement approval authority over all 
     information technology items related to the enterprise 
     architectures of all intelligence community components;
       ``(3) direct and manage all information technology-related 
     procurement for the intelligence community; and
       ``(4) ensure that all expenditures for information 
     technology and research and development activities are 
     consistent with the intelligence community enterprise 
     architecture and the strategy of the Director for such 
     architecture.
       ``(d) Prohibition on Simultaneous Service as Other Chief 
     Information Officer.--An individual serving in the position 
     of Chief Information Officer may not, while so serving, serve 
     as the chief information officer of any other department or 
     agency, or component thereof, of the United States 
     Government.''.
       (2) The table of contents in the first section of the 
     National Security Act of 1947, as amended by the National 
     Security Intelligence Reform Act of 2004, is further amended 
     by inserting after the item relating to section 103F the 
     following new item:

``Sec. 103G. Chief Information Officer.''.

       (b) Effective Date.--The amendments made by this section 
     shall take effect on the effective date of the National 
     Security Intelligence Reform Act of 2004, as provided in 
     section 801 of this Act.

     SEC. 304. IMPROVEMENT OF AUTHORITIES RELATING TO NATIONAL 
                   VIRTUAL TRANSLATION CENTER.

       (a) Function of Center.--Section 313 of the Intelligence 
     Authorization Act for Fiscal Year 2003 (Public Law 107-306; 
     116 Stat. 2391; 50 U.S.C. 404n) is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Function.--The element established under subsection 
     (a) shall provide for timely and accurate translations of 
     foreign intelligence for all elements of the intelligence 
     community through--
       ``(1) the integration of the translation capabilities of 
     the intelligence community;
       ``(2) the use of remote-connection capabilities; and
       ``(3) the use of such other capabilities as the Director 
     considers appropriate.''.
       (b) Location of Discharge of Function.--Subsection (d) of 
     such section, as so redesignated, is amended by adding at the 
     end the following new paragraph:
       ``(3) Personnel of the element established under subsection 
     (a) may carry out the duties and functions of the element at 
     any location that--
       ``(A) has been certified as a secure facility by a 
     department or agency of the United States Government; or
       ``(B) the Director has otherwise determined to be 
     appropriate for such duties and functions''.

     SEC. 305. INTELLIGENCE ASSESSMENT ON SANCTUARIES FOR 
                   TERRORISTS.

       (a) Assessment Required.--Not later than the date specified 
     in subsection (b), the Director of National Intelligence 
     shall submit to Congress

[[Page H11032]]

     an intelligence assessment that identifies and describes each 
     country or region that is a sanctuary for terrorists or 
     terrorist organizations. The assessment shall be based on 
     current all-source intelligence.
       (b) Submittal Date.--The date of the submittal of the 
     intelligence assessment required by subsection (a) shall be 
     the earlier of--
       (1) the date that is six months after the date of the 
     enactment of this Act; or
       (2) June 1, 2005.

     SEC. 306. SENSE OF CONGRESS ON AVAILABILITY TO CONGRESS OF 
                   INFORMATION ON IRAQ OIL-FOR-FOOD PROGRAM OF THE 
                   UNITED NATIONS.

       It is the sense of Congress that the head of each element 
     of the intelligence community, including the Central 
     Intelligence Agency, the Federal Bureau of Investigation, and 
     the intelligence elements of the Department of Defense, the 
     Department of State, and the Department of the Treasury 
     should make available to any committee of Congress with 
     jurisdiction over matters relating to the Office of the Iraq 
     Oil-for-Food Program of the United Nations, upon the request 
     of such committee, any information and documents in the 
     possession or control of such element in connection with any 
     investigation of that Office by such committee.
                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     SEC. 401. PERMANENT EXTENSION OF CENTRAL INTELLIGENCE AGENCY 
                   VOLUNTARY SEPARATION INCENTIVE PROGRAM.

       (a) In General.--Section 2 of the Central Intelligence 
     Agency Voluntary Separation Pay Act (50 U.S.C. 403-4 note) is 
     amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsections (g) and (h) as subsections 
     (f) and (g), respectively.
       (b) Termination of Funds Remittance Requirement.--(1) 
     Section 2 of such Act is further amended by striking 
     subsection (i).
       (2) Section 4(a)(2)(B)(ii) of the Federal Workforce 
     Restructuring Act of 1994 (5 U.S.C. 8331 note) is amended by 
     striking ``, or section 2 of the Central Intelligence Agency 
     Voluntary Separation Pay Act (Public Law 103-36; 107 Stat. 
     104)''.

     SEC. 402. INTELLIGENCE OPERATIONS AND COVER ENHANCEMENT 
                   AUTHORITY.

       The Central Intelligence Agency Act of 1949 (50 U.S.C. 403a 
     et seq.) is amended by adding at the end the following:


       ``intelligence operations and cover enhancement authority

       ``Sec. 23. (a) Definitions.--In this section--
       ``(1) the term `designated employee' means an employee 
     designated by the Director of the Central Intelligence Agency 
     under subsection (b); and
       ``(2) the term `Federal retirement system' includes the 
     Central Intelligence Agency Retirement and Disability System, 
     and the Federal Employees' Retirement System (including the 
     Thrift Savings Plan).
       ``(b) In General.--
       ``(1) Authority.--Notwithstanding any other provision of 
     law, the Director of the Central Intelligence Agency may 
     exercise the authorities under this section in order to--
       ``(A) protect from unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms; or
       ``(B) meet the special requirements of work related to 
     collection of foreign intelligence or other authorized 
     activities of the Agency.
       ``(2) Designation of employees.--The Director of the 
     Central Intelligence Agency may designate any employee of the 
     Agency who is under nonofficial cover to be an employee to 
     whom this section applies. Such designation may be made with 
     respect to any or all authorities exercised under this 
     section.
       ``(c) Compensation.--The Director of the Central 
     Intelligence Agency may pay a designated employee salary, 
     allowances, and other benefits in an amount and in a manner 
     consistent with the nonofficial cover of that employee, 
     without regard to any limitation that is otherwise applicable 
     to a Federal employee. A designated employee may accept, 
     utilize, and, to the extent authorized by regulations 
     prescribed under subsection (i), retain any salary, 
     allowances, and other benefits provided under this section.
       ``(d) Retirement Benefits.--
       ``(1) In general.--The Director of the Central Intelligence 
     Agency may establish and administer a nonofficial cover 
     employee retirement system for designated employees (and the 
     spouse, former spouses, and survivors of such designated 
     employees). A designated employee may not participate in the 
     retirement system established under this paragraph and 
     another Federal retirement system at the same time.
       ``(2) Conversion to other federal retirement system.--
       ``(A) In general.--A designated employee participating in 
     the retirement system established under paragraph (1) may 
     convert to coverage under the Federal retirement system which 
     would otherwise apply to that employee at any appropriate 
     time determined by the Director of the Central Intelligence 
     Agency (including at the time of separation of service by 
     reason of retirement), if the Director of the Central 
     Intelligence Agency determines that the employee's 
     participation in the retirement system established under this 
     subsection is no longer necessary to protect from 
     unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms.
       ``(B) Conversion treatment.--Upon a conversion under this 
     paragraph--
       ``(i) all periods of service under the retirement system 
     established under this subsection shall be deemed periods of 
     creditable service under the applicable Federal retirement 
     system;
       ``(ii) the Director of the Central Intelligence Agency 
     shall transmit an amount for deposit in any applicable fund 
     of that Federal retirement system that--

       ``(I) is necessary to cover all employee and agency 
     contributions including--

       ``(aa) interest as determined by the head of the agency 
     administering the Federal retirement system into which the 
     employee is converting; or
       ``(bb) in the case of an employee converting into the 
     Federal Employees' Retirement System, interest as determined 
     under section 8334(e) of title 5, United States Code; and

       ``(II) ensures that such conversion does not result in any 
     unfunded liability to that fund; and

       ``(iii) in the case of a designated employee who 
     participated in an employee investment retirement system 
     established under paragraph (1) and is converted to coverage 
     under subchapter III of chapter 84 of title 5, United States 
     Code, the Director of the Central Intelligence Agency may 
     transmit any or all amounts of that designated employee in 
     that employee investment retirement system (or similar part 
     of that retirement system) to the Thrift Savings Fund.
       ``(C) Transmitted amounts.--
       ``(i) In general.--Amounts described under subparagraph 
     (B)(ii) shall be paid from the fund or appropriation used to 
     pay the designated employee.
       ``(ii) Offset.--The Director of the Central Intelligence 
     Agency may use amounts contributed by the designated employee 
     to a retirement system established under paragraph (1) to 
     offset amounts paid under clause (i).
       ``(D) Records.--The Director of the Central Intelligence 
     Agency shall transmit all necessary records relating to a 
     designated employee who converts to a Federal retirement 
     system under this paragraph (including records relating to 
     periods of service which are deemed to be periods of 
     creditable service under subparagraph (B)) to the head of the 
     agency administering that Federal retirement system.
       ``(e) Health Insurance Benefits.--
       ``(1) In general.--The Director of the Central Intelligence 
     Agency may establish and administer a nonofficial cover 
     employee health insurance program for designated employees 
     (and the family of such designated employees). A designated 
     employee may not participate in the health insurance program 
     established under this paragraph and the program under 
     chapter 89 of title 5, United States Code, at the same time.
       ``(2) Conversion to federal employees health benefits 
     program.--
       ``(A) In general.--A designated employee participating in 
     the health insurance program established under paragraph (1) 
     may convert to coverage under the program under chapter 89 of 
     title 5, United States Code, at any appropriate time 
     determined by the Director of the Central Intelligence Agency 
     (including at the time of separation of service by reason of 
     retirement), if the Director of the Central Intelligence 
     Agency determines that the employee's participation in the 
     health insurance program established under this subsection is 
     no longer necessary to protect from unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms.
       ``(B) Conversion treatment.--Upon a conversion under this 
     paragraph--
       ``(i) the employee (and family, if applicable) shall be 
     entitled to immediate enrollment and coverage under chapter 
     89 of title 5, United States Code;
       ``(ii) any requirement of prior enrollment in a health 
     benefits plan under chapter 89 of that title for continuation 
     of coverage purposes shall not apply;
       ``(iii) the employee shall be deemed to have had coverage 
     under chapter 89 of that title from the first opportunity to 
     enroll for purposes of continuing coverage as an annuitant; 
     and
       ``(iv) the Director of the Central Intelligence Agency 
     shall transmit an amount for deposit in the Employees' Health 
     Benefits Fund that is necessary to cover any costs of such 
     conversion.
       ``(C) Transmitted amounts.--Any amount described under 
     subparagraph (B)(iv) shall be paid from the fund or 
     appropriation used to pay the designated employee.
       ``(f) Life Insurance Benefits.--
       ``(1) In general.--The Director of the Central Intelligence 
     Agency may establish and administer a nonofficial cover 
     employee life insurance program for designated employees (and 
     the family of such designated employees). A designated 
     employee may not participate in the life insurance program 
     established under this paragraph and the program under 
     chapter 87 of title 5, United States Code, at the same time.
       ``(2) Conversion to federal employees group life insurance 
     program.--
       ``(A) In general.--A designated employee participating in 
     the life insurance program established under paragraph (1) 
     may convert to coverage under the program under chapter 87 of 
     title 5, United States Code, at any appropriate time 
     determined by the Director of the Central Intelligence Agency 
     (including at the time of separation of service by reason of 
     retirement), if the Director of the Central Intelligence 
     Agency determines that the employee's participation in the 
     life insurance program established under this subsection is 
     no longer necessary to protect from unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms.
       ``(B) Conversion treatment.--Upon a conversion under this 
     paragraph--

[[Page H11033]]

       ``(i) the employee (and family, if applicable) shall be 
     entitled to immediate coverage under chapter 87 of title 5, 
     United States Code;
       ``(ii) any requirement of prior enrollment in a life 
     insurance program under chapter 87 of that title for 
     continuation of coverage purposes shall not apply;
       ``(iii) the employee shall be deemed to have had coverage 
     under chapter 87 of that title for the full period of service 
     during which the employee would have been entitled to be 
     insured for purposes of continuing coverage as an annuitant; 
     and
       ``(iv) the Director of the Central Intelligence Agency 
     shall transmit an amount for deposit in the Employees' Life 
     Insurance Fund that is necessary to cover any costs of such 
     conversion.
       ``(C) Transmitted amounts.--Any amount described under 
     subparagraph (B)(iv) shall be paid from the fund or 
     appropriation used to pay the designated employee.
       ``(g) Exemption From Certain Requirements.--The Director of 
     the Central Intelligence Agency may exempt a designated 
     employee from mandatory compliance with any Federal 
     regulation, rule, standardized administrative policy, 
     process, or procedure that the Director of the Central 
     Intelligence Agency determines--
       ``(1) would be inconsistent with the nonofficial cover of 
     that employee; and
       ``(2) could expose that employee to detection as a Federal 
     employee.
       ``(h) Taxation and Social Security.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a designated employee--
       ``(A) shall file a Federal or State tax return as if that 
     employee is not a Federal employee and may claim and receive 
     the benefit of any exclusion, deduction, tax credit, or other 
     tax treatment that would otherwise apply if that employee was 
     not a Federal employee, if the Director of the Central 
     Intelligence Agency determines that taking any action under 
     this paragraph is necessary to--
       ``(i) protect from unauthorized disclosure--

       ``(I) intelligence operations;
       ``(II) the identities of undercover intelligence officers;
       ``(III) intelligence sources and methods; or
       ``(IV) intelligence cover mechanisms; and

       ``(ii) meet the special requirements of work related to 
     collection of foreign intelligence or other authorized 
     activities of the Agency; and
       ``(B) shall receive social security benefits based on the 
     social security contributions made.
       ``(2) Internal revenue service review.--The Director of the 
     Central Intelligence Agency shall establish procedures to 
     carry out this subsection. The procedures shall be subject to 
     periodic review by the Internal Revenue Service.
       ``(i) Regulations.--The Director of the Central 
     Intelligence Agency shall prescribe regulations to carry out 
     this section. The regulations shall ensure that the 
     combination of salary, allowances, and benefits that an 
     employee designated under this section may retain does not 
     significantly exceed, except to the extent determined by the 
     Director of the Central Intelligence Agency to be necessary 
     to exercise the authority in subsection (b), the combination 
     of salary, allowances, and benefits otherwise received by 
     Federal employees not designated under this section.
       ``(j) Finality of Decisions.--Any determinations authorized 
     by this section to be made by the Director of the Central 
     Intelligence Agency or the Director's designee shall be final 
     and conclusive and shall not be subject to review by any 
     court.
       ``(k) Subsequently Enacted Laws.--No law enacted after the 
     effective date of this section shall affect the authorities 
     and provisions of this section unless such law specifically 
     refers to this section.''.
          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

     SEC. 501. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES 
                   PANEL.

       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. 19. (a) There is established the National Security 
     Agency Emerging Technologies Panel. The Panel is a standing 
     panel of the National Security Agency. The Panel shall be 
     appointed by, and shall report directly to, the Director of 
     the National Security Agency.
       ``(b) The Panel shall study and assess, and periodically 
     advise the Director on, the research, development, and 
     application of existing and emerging science and technology 
     advances, advances in encryption, and other topics.
       ``(c) The Federal Advisory Committee Act (5 U.S.C. App.) 
     shall not apply with respect to the Panel.''.

     SEC. 502. USE OF FUNDS FOR COUNTERDRUG AND COUNTERTERRORISM 
                   ACTIVITIES FOR COLOMBIA.

       (a) Authority.--Funds designated for intelligence or 
     intelligence-related purposes for assistance to the 
     Government of Colombia for counterdrug activities for fiscal 
     year 2005 or 2006, and any unobligated funds available to any 
     element of the intelligence community for such activities for 
     a prior fiscal year, shall be available--
       (1) to support a unified campaign by the Government of 
     Colombia against narcotics trafficking and against activities 
     by organizations designated as terrorist organizations (such 
     as the Revolutionary Armed Forces of Colombia (FARC), the 
     National Liberation Army (ELN), and the United Self-Defense 
     Forces of Colombia (AUC)); and
       (2) to take actions to protect human health and welfare in 
     emergency circumstances, including the undertaking of rescue 
     operations.
       (b) Applicability of Certain Laws and Limitations.--The use 
     of funds pursuant to the authority in subsection (a) shall be 
     subject to the following:
       (1) Section 556, 567, and 568 of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     2002 (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
       (2) Section 8076 of the Department of Defense 
     Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 988).
       (3) The numerical limitations on the number of United 
     States military personnel and United States individual 
     civilian contractors contained in section 1021(c) of the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2042).
       (c) Limitation on Participation of United States 
     Personnel.--No United States Armed Forces personnel or United 
     States civilian contractor employed by the United States 
     Armed Forces may participate in any combat operation in 
     connection with assistance made available under this section, 
     except for the purpose of acting in self defense or during 
     the course of search and rescue operations for United States 
     citizens.
                          TITLE VI--EDUCATION
            Subtitle A--National Security Education Program

     SEC. 601. ANNUAL FUNDING.

       (a) In General.--Section 810 of the David L. Boren National 
     Security Education Act of 1991 (50 U.S.C. 1910) is amended by 
     adding at the end the following new subsection:
       ``(c) Funding From Intelligence Community Management 
     Account for Fiscal Years Beginning With Fiscal Year 2005.--In 
     addition to amounts that may be made available to the 
     Secretary under the Fund for a fiscal year, the Director of 
     National Intelligence shall transfer to the Secretary from 
     amounts appropriated for the Intelligence Community 
     Management Account for each fiscal year, beginning with 
     fiscal year 2005, $8,000,000 to carry out the scholarship, 
     fellowship, and grant programs under subparagraphs (A), (B), 
     and (C), respectively, of section 802(a)(1).''.
       (b) Conforming Amendment.--Section 802(a)(2) of that Act 
     (50 U.S.C. 1902(a)(2)) is amended in the matter preceding 
     subparagraph (A) by inserting ``or from a transfer under 
     section 810(c)'' after ``National Security Education Trust 
     Fund''.

     SEC. 602. IMPROVEMENTS TO NATIONAL FLAGSHIP LANGUAGE 
                   INITIATIVE.

       (a) Requirement for Employment Agreements.--(1) Section 
     802(i) of the David L. Boren National Security Education Act 
     of 1991 (50 U.S.C. 1902(i)) is amended by adding at the end 
     the following new paragraphs:
       ``(5) An undergraduate or graduate student who participates 
     in training in a program under paragraph (1) and has not 
     already entered into a service agreement under subsection (b) 
     shall enter into a service agreement under subsection (b) 
     applicable to an undergraduate or graduate student, as the 
     case may be, with respect to participation in such training 
     in a program under paragraph (1).
       ``(6)(A) An employee of a department or agency of the 
     Federal Government who participates in training in a program 
     under paragraph (1) shall agree in writing--
       ``(i) to continue in the service of the department or 
     agency of the Federal Government employing the employee for 
     the period of such training;
       ``(ii) to continue in the service of such department or 
     agency, following completion by the employee of such 
     training, for a period of two years for each year, or part of 
     the year, of such training;
       ``(iii) if, before the completion by the employee of such 
     training, the employment of the employee is terminated by 
     such department or agency due to misconduct by the employee, 
     or by the employee voluntarily, to reimburse the United 
     States for the total cost of such training (excluding the 
     employee's pay and allowances) provided to the employee; and
       ``(iv) if, after the completion by the employee of such 
     training but before the completion by the employee of the 
     period of service required by clause (ii), the employment of 
     the employee by such department or agency is terminated 
     either by such department or agency due to misconduct by the 
     employee, or by the employee voluntarily, to reimburse the 
     United States in an amount that bears the same ratio to the 
     total cost of such training (excluding the employee's pay and 
     allowances) provided to the employee as the unserved portion 
     of such period of service bears to the total period of 
     service required by clause (ii).
       ``(C) Subject to subparagraph (D), the obligation to 
     reimburse the United States under an agreement under 
     subparagraph (A) is for all purposes a debt owing the United 
     States.
       ``(D) The head of the element of the intelligence community 
     concerned may release an employee, in whole or in part, from 
     the obligation to reimburse the United States under an 
     agreement under subparagraph (A) when, in the discretion of 
     the head of the element, the head of the element determines 
     that equity or the interests of the United States so 
     require.''.
       (2) The amendment made by paragraph (1) shall apply to 
     training under section 802(i) of the David L. Boren National 
     Security Act of 1991 that begins on or after the date that is 
     90 days after the date of the enactment of this Act.
       (b) Increase in Annual Funding.--Section 811 of that Act 
     (50 U.S.C. 1911) is amended by striking subsection (b) and 
     inserting the following new subsections:
       ``(b) Funding From Intelligence Community Management 
     Account for Fiscal Years Beginning With Fiscal Year 2005.--In 
     addition to amounts that may be made available to the 
     Secretary under the Fund for a fiscal year, the Director of 
     National Intelligence shall transfer to the Secretary from 
     amounts appropriated

[[Page H11034]]

     for the Intelligence Community Management Account for each 
     fiscal year, beginning with fiscal year 2005, $6,000,000 to 
     carry out the grant program for the National Flagship 
     Language Initiative under section 802(a)(1)(D).
       ``(c) Availability of Appropriated Funds.--Amounts made 
     available under this section shall remain available until 
     expended.''.
       (c) Increase in Number of Participating Educational 
     Institutions.--The Secretary of Defense shall take such 
     actions as the Secretary considers appropriate to increase 
     the number of qualified educational institutions that receive 
     grants under the National Flagship Language Initiative under 
     section 802(i) of the David L. Boren National Security 
     Education Act of 1991 to establish, operate, or improve 
     activities designed to train students in programs in a range 
     of disciplines to achieve advanced levels of proficiency in 
     those foreign languages that the Secretary identifies as 
     being the most critical to the national security of the 
     United States.
       (d) Clarification of Authority to Support Studies Abroad.--
     Educational institutions that receive grants under the 
     National Flagship Language Initiative may support students 
     who pursue total immersion foreign language studies overseas 
     of foreign languages that are critical to the national 
     security of the United States.

     SEC. 603. SCHOLARSHIP PROGRAM FOR ENGLISH LANGUAGE STUDIES 
                   FOR HERITAGE COMMUNITY CITIZENS OF THE UNITED 
                   STATES WITHIN NATIONAL SECURITY EDUCATION 
                   PROGRAM.

       (a) Scholarship Program.--(1) Subsection (a)(1) of section 
     802 of the David L. Boren National Security Education Act of 
     1991 (50 U.S.C. 1902) is amended--
       (A) by striking ``and'' at the end of subparagraph (C);
       (B) by striking the period at the end of subparagraph (D) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) awarding scholarships to students who--
       ``(i) are United States citizens who--

       ``(I) are native speakers (referred to as `heritage 
     community citizens') of a foreign language that is identified 
     as critical to the national security interests of the United 
     States who should be actively recruited for employment by 
     Federal security agencies with a need for linguists; and
       ``(II) are not proficient at a professional level in the 
     English language with respect to reading, writing, and other 
     skills required to carry out the national security interests 
     of the United States, as determined by the Secretary,

     to enable such students to pursue English language studies at 
     an institution of higher education of the United States to 
     attain proficiency in those skills; and
       ``(ii) enter into an agreement to work in a position in a 
     similar manner (as determined by the Secretary) as agreements 
     entered into pursuant to subsection (b)(2)(A).''.
       (2) The matter following subsection (a)(2) of such section 
     is amended--
       (A) in the first sentence, by inserting ``or for the 
     scholarship program under paragraph (1)(E)'' after ``under 
     paragraph (1)(D) for the National Flagship Language 
     Initiative described in subsection (i)''; and
       (B) by adding at the end the following: ``For the 
     authorization of appropriations for the scholarship program 
     under paragraph (1)(E), see section 812.''.
       (3) Section 803(d)(4)(E) of such Act (50 U.S.C. 
     1903(d)(4)(E)) is amended by inserting before the period the 
     following: ``and section 802(a)(1)(E) (relating to the 
     scholarship program for advanced English language studies by 
     heritage community citizens)''.
       (b) Funding.--The David L. Boren National Security 
     Education Act of 1991 (50 U.S.C. 1901 et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 812. FUNDING FOR SCHOLARSHIP PROGRAM FOR ADVANCED 
                   ENGLISH LANGUAGE STUDIES BY HERITAGE COMMUNITY 
                   CITIZENS.

       ``(a) Funding From Intelligence Community Management 
     Account.--In addition to amounts that may be made available 
     to the Secretary under the Fund for a fiscal year, the 
     Director of National Intelligence shall transfer to the 
     Secretary from amounts appropriated for the Intelligence 
     Community Management Account for each fiscal year, beginning 
     with fiscal year 2005, $2,000,000 to carry out the 
     scholarship programs for English language studies by certain 
     heritage community citizens under section 802(a)(1)(E).
       ``(b) Availability of Funds.--Amounts made available under 
     subsection (a) shall remain available until expended.''.
  Subtitle B--Improvement in Intelligence Community Foreign Language 
                                 Skills

     SEC. 611. FOREIGN LANGUAGE PROFICIENCY FOR CERTAIN SENIOR 
                   LEVEL POSITIONS IN THE CENTRAL INTELLIGENCE 
                   AGENCY.

       (a) In General.--Section 104A of the National Security Act 
     of 1947, amended by section 1011(a) of the National Security 
     Intelligence Reform Act of 2004, is further amended by adding 
     at the end the following new subsection:
       ``(g) Foreign Language Proficiency for Certain Senior Level 
     Positions in Central Intelligence Agency.--(1) Except as 
     provided pursuant to paragraph (2), an individual may not be 
     appointed to a position in the Senior Intelligence Service in 
     the Directorate of Intelligence or the Directorate of 
     Operations of the Central Intelligence Agency unless the 
     Director of the Central Intelligence Agency determines that 
     the individual--
       ``(A) has been certified as having a professional speaking 
     and reading proficiency in a foreign language, such 
     proficiency being at least level 3 on the Interagency 
     Language Roundtable Language Skills Level or commensurate 
     proficiency level using such other indicator of proficiency 
     as the Director of the Central Intelligence Agency considers 
     appropriate; and
       ``(B) is able to effectively communicate the priorities of 
     the United States and exercise influence in that foreign 
     language.
       ``(2) The Director of the Central Intelligence Agency may, 
     in the discretion of the Director, waive the application of 
     paragraph (1) to any position or category of positions 
     otherwise covered by that paragraph if the Director 
     determines that foreign language proficiency is not necessary 
     for the successful performance of the duties and 
     responsibilities of such position or category of 
     positions.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to appointments made on or after the 
     date that is one year after the date of the enactment of this 
     Act.
       (c) Report on Waivers.--The Director of the Central 
     Intelligence Agency shall submit to Congress a report that 
     identifies positions within the Senior Intelligence Service 
     in the Directorate of Intelligence or the Directorate of 
     Operations of the Central Intelligence Agency that are 
     determined by the Director to require waiver from the 
     requirements of section 104A(g) of the National Security Act 
     of 1947, as added by subsection (a). The report shall include 
     a rationale for any waiver granted under section 104A(g)(2), 
     as so added, for each position or category of positions so 
     identified.

     SEC. 612. ADVANCEMENT OF FOREIGN LANGUAGES CRITICAL TO THE 
                   INTELLIGENCE COMMUNITY.

       (a) In General.--Title X of the National Security Act of 
     1947 (50 U.S.C. 441g) is amended--
       (1) by inserting before section 1001 (50 U.S.C. 441g) the 
     following:

                ``Subtitle A--Science and Technology'';

     and
       (2) by adding at the end the following new subtitles:

                ``Subtitle B--Foreign Languages Program


     ``program on advancement of foreign languages critical to the 
                         intelligence community

       ``Sec. 1011. (a) In General.--The Secretary of Defense and 
     the Director of National Intelligence may jointly carry out a 
     program to advance skills in foreign languages that are 
     critical to the capability of the intelligence community to 
     carry out the national security activities of the United 
     States (hereinafter in this subtitle referred to as the 
     `Foreign Languages Program').
       ``(b) Identification of Requisite Actions.--In order to 
     carry out the Foreign Languages Program, the Secretary of 
     Defense and the Director of National Intelligence shall 
     jointly identify actions required to improve the education of 
     personnel in the intelligence community in foreign languages 
     that are critical to the capability of the intelligence 
     community to carry out the national security activities of 
     the United States and to meet the long-term intelligence 
     needs of the United States.


                        ``education partnerships

       ``Sec. 1012. (a) In General.--In carrying out the Foreign 
     Languages Program, the head of a covered element of the 
     intelligence community may enter into one or more education 
     partnership agreements with educational institutions in the 
     United States in order to encourage and enhance the study in 
     such educational institutions of foreign languages that are 
     critical to the capability of the intelligence community to 
     carry out the national security activities of the United 
     States.
       ``(b) Assistance Provided Under Educational Partnership 
     Agreements.--Under an educational partnership agreement 
     entered into with an educational institution pursuant to this 
     section, the head of a covered element of the intelligence 
     community may provide the following assistance to the 
     educational institution:
       ``(1) The loan of equipment and instructional materials of 
     the element of the intelligence community to the educational 
     institution for any purpose and duration that the head of the 
     element considers appropriate.
       ``(2) Notwithstanding any other provision of law relating 
     to the transfer of surplus property, the transfer to the 
     educational institution of any computer equipment, or other 
     equipment, that is--
       ``(A) commonly used by educational institutions;
       ``(B) surplus to the needs of the element of the 
     intelligence community; and
       ``(C) determined by the head of the element to be 
     appropriate for support of such agreement.
       ``(3) The provision of dedicated personnel to the 
     educational institution--
       ``(A) to teach courses in foreign languages that are 
     critical to the capability of the intelligence community to 
     carry out the national security activities of the United 
     States; or
       ``(B) to assist in the development for the educational 
     institution of courses and materials on such languages.
       ``(4) The involvement of faculty and students of the 
     educational institution in research projects of the element 
     of the intelligence community.
       ``(5) Cooperation with the educational institution in 
     developing a program under which students receive academic 
     credit at the educational institution for work on research 
     projects of the element of the intelligence community.
       ``(6) The provision of academic and career advice and 
     assistance to students of the educational institution.
       ``(7) The provision of cash awards and other items that the 
     head of the element of the intelligence community considers 
     appropriate.


                          ``voluntary services

       ``Sec. 1013. (a) Authority To Accept Services.--
     Notwithstanding section 1342 of title 31, United States Code, 
     and subject to subsection

[[Page H11035]]

     (b), the Foreign Languages Program under section 1011 shall 
     include authority for the head of a covered element of the 
     intelligence community to accept from any dedicated personnel 
     voluntary services in support of the activities authorized by 
     this subtitle.
       ``(b) Requirements and Limitations.--(1) In accepting 
     voluntary services from an individual under subsection (a), 
     the head of a covered element of the intelligence community 
     shall--
       ``(A) supervise the individual to the same extent as the 
     head of the element would supervise a compensated employee of 
     that element providing similar services; and
       ``(B) ensure that the individual is licensed, privileged, 
     has appropriate educational or experiential credentials, or 
     is otherwise qualified under applicable law or regulations to 
     provide such services.
       ``(2) In accepting voluntary services from an individual 
     under subsection (a), the head of a covered element of the 
     intelligence community may not--
       ``(A) place the individual in a policymaking position, or 
     other position performing inherently governmental functions; 
     or
       ``(B) compensate the individual for the provision of such 
     services.
       ``(c) Authority To Recruit and Train Individuals Providing 
     Services.--The head of a covered element of the intelligence 
     community may recruit and train individuals to provide 
     voluntary services under subsection (a).
       ``(d) Status of Individuals Providing Services.--(1) 
     Subject to paragraph (2), while providing voluntary services 
     under subsection (a) or receiving training under subsection 
     (c), an individual shall be considered to be an employee of 
     the Federal Government only for purposes of the following 
     provisions of law:
       ``(A) Section 552a of title 5, United States Code (relating 
     to maintenance of records on individuals).
       ``(B) Chapter 11 of title 18, United States Code (relating 
     to conflicts of interest).
       ``(2)(A) With respect to voluntary services under paragraph 
     (1) provided by an individual that are within the scope of 
     the services accepted under that paragraph, the individual 
     shall be deemed to be a volunteer of a governmental entity or 
     nonprofit institution for purposes of the Volunteer 
     Protection Act of 1997 (42 U.S.C. 14501 et seq.).
       ``(B) In the case of any claim against such an individual 
     with respect to the provision of such services, section 4(d) 
     of such Act (42 U.S.C. 14503(d)) shall not apply.
       ``(3) Acceptance of voluntary services under this section 
     shall have no bearing on the issuance or renewal of a 
     security clearance.
       ``(e) Reimbursement of Incidental Expenses.--(1) The head 
     of a covered element of the intelligence community may 
     reimburse an individual for incidental expenses incurred by 
     the individual in providing voluntary services under 
     subsection (a). The head of a covered element of the 
     intelligence community shall determine which expenses are 
     eligible for reimbursement under this subsection.
       ``(2) Reimbursement under paragraph (1) may be made from 
     appropriated or nonappropriated funds.
       ``(f) Authority To Install Equipment.--(1) The head of a 
     covered element of the intelligence community may install 
     telephone lines and any necessary telecommunication equipment 
     in the private residences of individuals who provide 
     voluntary services under subsection (a).
       ``(2) The head of a covered element of the intelligence 
     community may pay the charges incurred for the use of 
     equipment installed under paragraph (1) for authorized 
     purposes.
       ``(3) Notwithstanding section 1348 of title 31, United 
     States Code, the head of a covered element of the 
     intelligence community may use appropriated funds or 
     nonappropriated funds of the element in carrying out this 
     subsection.


                             ``regulations

       ``Sec. 1014. (a) In General.--The Secretary of Defense and 
     the Director of National Intelligence shall jointly prescribe 
     regulations to carry out the Foreign Languages Program.
       ``(b) Elements of the Intelligence Community.--The head of 
     each covered element of the intelligence community shall 
     prescribe regulations to carry out sections 1012 and 1013 
     with respect to that element including the following:
       ``(1) Procedures to be utilized for the acceptance of 
     voluntary services under section 1013.
       ``(2) Procedures and requirements relating to the 
     installation of equipment under section 1013(f).


                             ``Definitions

       ``Sec. 1015. In this subtitle:
       ``(1) The term `covered element of the intelligence 
     community' means an agency, office, bureau, or element 
     referred to in subparagraphs (B) through (L) of section 3(4).
       ``(2) The term `educational institution' means--
       ``(A) a local educational agency (as that term is defined 
     in section 9101(26) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7801(26)));
       ``(B) an institution of higher education (as defined in 
     section 102 of the Higher Education Act of 1965 (20 U.S.C. 
     1002) other than institutions referred to in subsection 
     (a)(1)(C) of such section); or
       ``(C) any other nonprofit institution that provides 
     instruction of foreign languages in languages that are 
     critical to the capability of the intelligence community to 
     carry out national security activities of the United States.
       ``(3) The term `dedicated personnel' means employees of the 
     intelligence community and private citizens (including former 
     civilian employees of the Federal Government who have been 
     voluntarily separated, and members of the United States Armed 
     Forces who have been honorably discharged, honorably 
     separated, or generally discharged under honorable 
     circumstances and rehired on a voluntary basis specifically 
     to perform the activities authorized under this subtitle).

             ``Subtitle C--Additional Education Provisions


 ``assignment of intelligence community personnel as language students

       ``Sec. 1021. (a) In General.--The Director of National 
     Intelligence, acting through the heads of the elements of the 
     intelligence community, may assign employees of such elements 
     in analyst positions requiring foreign language expertise as 
     students at accredited professional, technical, or other 
     institutions of higher education for training at the graduate 
     or undergraduate level in foreign languages required for the 
     conduct of duties and responsibilities of such positions.
       ``(b) Authority for Reimbursement of Costs of Tuition and 
     Training.--(1) The Director of National Intelligence may 
     reimburse an employee assigned under subsection (a) for the 
     total cost of the training described in that subsection, 
     including costs of educational and supplementary reading 
     materials.
       ``(2) The authority under paragraph (1) shall apply to 
     employees who are assigned on a full-time or part-time basis.
       ``(3) Reimbursement under paragraph (1) may be made from 
     appropriated or nonappropriated funds.
       ``(c) Relationship to Compensation as an Analyst.--
     Reimbursement under this section to an employee who is an 
     analyst is in addition to any benefits, allowances, travel 
     expenses, or other compensation the employee is entitled to 
     by reason of serving in such an analyst position.''.
       (b) Clerical Amendment.--The table of contents for the 
     National Security Act of 1947 is amended by striking the item 
     relating to section 1001 and inserting the following new 
     items:

                  ``Subtitle A--Science and Technology

``Sec. 1001. Scholarships and work-study for pursuit of graduate 
              degrees in science and technology.

                ``Subtitle B--Foreign Languages Program

``Sec. 1011. Program on advancement of foreign languages critical to 
              the intelligence community.
``Sec. 1012. Education partnerships.
``Sec. 1013. Voluntary services.
``Sec. 1014. Regulations.
``Sec. 1015. Definitions.

             ``Subtitle C--Additional Education Provisions

``Sec. 1021. Assignment of intelligence community personnel as language 
              students.''.

     SEC. 613. PILOT PROJECT ON CIVILIAN LINGUIST RESERVE CORPS.

       (a) Pilot Project.--The Director of National Intelligence 
     shall conduct a pilot project to assess the feasibility and 
     advisability of establishing a Civilian Linguist Reserve 
     Corps comprised of United States citizens with advanced 
     levels of proficiency in foreign languages who would be 
     available upon the call of the Director to perform such 
     service or duties with respect to such foreign languages in 
     the intelligence community as the Director may specify.
       (b) Conduct of Project.--Taking into account the findings 
     and recommendations contained in the report required under 
     section 325 of the Intelligence Authorization Act for Fiscal 
     Year 2003 (Public Law 107-306; 116 Stat. 2393), in conducting 
     the pilot project under subsection (a) the Director of 
     National Intelligence shall--
       (1) identify several foreign languages that are critical 
     for the national security of the United States;
       (2) identify United States citizens with advanced levels of 
     proficiency in the foreign languages identified under 
     paragraph (1) who would be available to perform the services 
     and duties referred to in subsection (a); and
       (3) when considered necessary by the Director, implement a 
     call for the performance of such services and duties.
       (c) Duration of Project.--The pilot project under 
     subsection (a) shall be conducted for a three-year period.
       (d) Authority To Enter Into Contracts.--The Director of 
     National Intelligence may enter into contracts with 
     appropriate agencies or entities to carry out the pilot 
     project under subsection (a).
       (e) Reports.--(1) The Director of National Intelligence 
     shall submit to Congress an initial and a final report on the 
     pilot project conducted under subsection (a).
       (2) Each report required under paragraph (1) shall contain 
     information on the operation of the pilot project, the 
     success of the pilot project in carrying out the objectives 
     of the establishment of a Civilian Linguist Reserve Corps, 
     and recommendations for the continuation or expansion of the 
     pilot project.
       (3) The final report shall be submitted not later than six 
     months after the completion of the pilot project.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Director of National Intelligence 
     for each of fiscal years 2005, 2006, and 2007 in order to 
     carry out the pilot project under subsection (a) such sums as 
     are specified in the classified Schedule of Authorizations 
     referred to in section 102.

     SEC. 614. REPORT ON STATUS, CONSOLIDATION, AND IMPROVEMENT OF 
                   INTELLIGENCE EDUCATION PROGRAMS.

       (a) Report.--Not later than June 1, 2005, the Director of 
     National Intelligence shall submit to Congress a report 
     setting forth--
       (1) the status of each intelligence education program, 
     including the statutory, regulatory, or administrative 
     authority under which such program is carried out; and

[[Page H11036]]

       (2) such recommendations as the Director considers 
     appropriate for legislative or administrative action to 
     consolidate, enhance the coordination of, or otherwise 
     improve such intelligence education programs.
       (b) Intelligence Education Program Defined.--In this 
     section, the term ``intelligence education program'' means 
     any grant, scholarship, education, or similar program 
     (whether authorized by statute, regulation, or administrative 
     order) that--
       (1) is supported, funded, or carried out by a department, 
     agency, or element of the intelligence community; or
       (2) is otherwise intended to aid in the recruitment, 
     retention, or training of intelligence community personnel.

     SEC. 615. REPORT ON RECRUITMENT AND RETENTION OF QUALIFIED 
                   INSTRUCTORS OF THE DEFENSE LANGUAGE INSTITUTE.

       (a) Study.--The Secretary of Defense shall conduct a study 
     on mechanisms to improve the recruitment and retention of 
     qualified foreign language instructors at the Foreign 
     Language Center of the Defense Language Institute. In 
     conducting the study, the Secretary shall consider, in the 
     case of a foreign language instructor who is an alien, the 
     appropriateness of expeditious adjustment of the status of 
     the alien under applicable immigration law from a temporary 
     status to that of an alien lawfully admitted for permanent 
     residence.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the appropriate congressional committees a report on the 
     study conducted under subsection (a). The report shall 
     include such recommendations for such legislative or 
     administrative action as the Secretary considers appropriate.
       (c) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate congressional committees'' 
     means--
       (1) the Select Committee on Intelligence and the Committee 
     on Armed Services of the Senate; and
       (2) the Permanent Select Committee on Intelligence and the 
     Committee on Armed Services of the House of Representatives.
                      TITLE VII--TERRORISM MATTERS

     SEC. 701. INFORMATION ON TERRORIST GROUPS THAT SEEK WEAPONS 
                   OF MASS DESTRUCTION AND GROUPS THAT HAVE BEEN 
                   DESIGNATED AS FOREIGN TERRORIST ORGANIZATIONS.

       (a) Inclusion in Reports.--Section 140 of the Foreign 
     Relations Authorization Act, Fiscal Years 1988 and 1989 (22 
     U.S.C. 2656f) is amended--
       (1) in subsection (a)(2)--
       (A) by inserting ``any terrorist group known to have 
     obtained or developed, or to have attempted to obtain or 
     develop, weapons of mass destruction,'' after ``during the 
     preceding five years,''; and
       (B) by inserting ``any group designated by the Secretary as 
     a foreign terrorist organization under section 219 of the 
     Immigration and Nationality Act (8 U.S.C. 1189),'' after 
     ``Export Administration Act of 1979,'';
       (2) in subsection (b)--
       (A) in paragraph (1)(C)--
       (i) in clause (iii), by striking ``and'' at the end;
       (ii) by redesignating clause (iv) as clause (v); and
       (iii) by inserting after clause (iii) the following new 
     clause (iv):
       ``(iv) providing weapons of mass destruction, or assistance 
     in obtaining or developing such weapons, to terrorists or 
     terrorist groups;'';
       (B) in paragraph (2)--
       (i) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (D), (E), and (F), respectively;
       (ii) by inserting after subparagraph (B) the following new 
     subparagraph (C):
       ``(C) efforts by those groups to obtain or develop weapons 
     of mass destruction;''; and
       (iii) in subparagraph (F), as so redesignated, by striking 
     the period and inserting a semicolon; and
       (C) by adding at the end the following new paragraphs:
       ``(3) to the extent practicable, complete statistical 
     information on the number of individuals, including United 
     States citizens and dual nationals, killed, injured, or 
     kidnapped by each terrorist group during the preceding 
     calendar year; and
       ``(4) an analysis, as appropriate, of trends in 
     international terrorism, including changes in technology 
     used, methods and targets of attack, demographic information 
     on terrorists, and other appropriate information.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply beginning with the first report under section 140 
     of the Foreign Relations Authorization Act, Fiscal Years 1988 
     and 1989 that is submitted more than one year after the date 
     of the enactment of this Act.
                       TITLE VIII--OTHER MATTERS

     SEC. 801. EFFECTIVE DATE.

       Except as otherwise expressly provided in this Act, this 
     Act (and the amendments made by this Act) shall take effect 
     on the date of the enactment of this Act.

     SEC. 802. CONSTRUCTION OF REFERENCES TO DIRECTOR OF CENTRAL 
                   INTELLIGENCE.

       Except as otherwise specifically provided or otherwise 
     provided by context, any reference in this Act, or in the 
     classified annex to accompany this Act, to the Director of 
     Central Intelligence shall be deemed to be a reference to the 
     Director of Central Intelligence as head of the intelligence 
     community.

     SEC. 803. SAVINGS PROVISIONS RELATING TO DISCHARGE OF CERTAIN 
                   FUNCTIONS AND AUTHORITIES.

       (a) Head of Intelligence Community.--(1) During the period 
     beginning on the date of the enactment of this Act and ending 
     on the date of the appointment of the Director of National 
     Intelligence under section 102 of the National Security Act 
     of 1947, as amended by section 1011(a) of the National 
     Security Intelligence Reform Act of 2004, the Director of 
     Central Intelligence may, acting as the head of the 
     intelligence community, discharge the functions and 
     authorities provided in this Act, and the amendments made by 
     this Act, to the Director of National Intelligence.
       (2) During the period referred to in paragraph (1) any 
     reference in this Act or the amendments made by this Act to 
     the Director of National Intelligence shall be considered to 
     be a reference to the Director of Central Intelligence, as 
     the head of the intelligence community.
       (3) Upon the appointment of an individual as Director of 
     National Intelligence under section 102 of the National 
     Security Act of 1947, as so amended, any reference in this 
     Act, or in the classified annex to accompany this Act, to the 
     Director of Central Intelligence as head of the intelligence 
     community shall be deemed to be a reference to the Director 
     of National Intelligence.
       (b) Head of Central Intelligence Agency.--(1) During the 
     period beginning on the date of the enactment of this Act and 
     ending on the date of the appointment of the Director of the 
     Central Intelligence Agency under section 104A of the 
     National Security Act of 1947, as amended by section 1011(a) 
     of the National Security Intelligence Reform Act of 2004, the 
     Director of Central Intelligence may, acting as the head of 
     the Central Intelligence Agency, discharge the functions and 
     authorities provided in this Act, and the amendments made by 
     this Act, to the Director of the Central Intelligence Agency.
       (2) Upon the appointment of an individual as Director of 
     the Central Intelligence Agency under section 104A of the 
     National Security Act of 1947, as so amended, any reference 
     in this Act, or in the classified annex to accompany this 
     Act, to the Director of Central Intelligence as head of the 
     Central Intelligence Agency shall be deemed to be a reference 
     to the Director of the Central Intelligence Agency.
       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:
     Pete Hoekstra,
     Sherwood Boehlert,
     Jim Gibbons,
     Ray LaHood,
     Randy ``Duke'' Cunningham,
     Richard Burr,
     Terry Everett,
     Elton Gallegly,
     Mac Collins,
     Jo Ann Davis,
     Mac Thornberry,
     Jane Harman,
     Alcee L. Hastings,
     Silvestre Reyes,
     Leonard L. Boswell,
     Collin C. Peterson,
     Bud Cramer,
     Anna Eshoo,
     Rush Holt,
     C.A. Dutch Ruppersberger,
     From the Committee on Armed Services, for consideration of 
     defense tactical intelligence and related activities:
     Duncan Hunter,
     Curt Weldon,
     Ike Skelton,
                                Managers on the Part of the House.

     Pat Roberts,
     Orrin Hatch,
     Mike DeWine,
     Christopher Bond,
     Trent Lott,
     Olympia Snowe,
     Chuck Hagel,
     Saxby Chambliss,
     John Warner,
     Dianne Feinstein,
     Evan Bayh,
     Barbara Mikulski,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the Senate and House at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4548), to authorize 
     appropriations for fiscal year 2005 for intelligence and 
     intelligence-related activities of the United States 
     Government, the Community Management Account, and the Central 
     Intelligence Agency Retirement and Disability System, and for 
     other purposes, submit the following joint statement to the 
     Senate and House in explanation of the effect of the action 
     agreed upon by the managers and recommended in the 
     accompanying conference report.
       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. 4548 and S. 2386, shall 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. 4548.
       The Senate amendment struck all of the House bill's text 
     after the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an

[[Page H11037]]

     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--INTELLIGENCE ACTIVITIES

     Sec. 101. Authorization of appropriations
       Section 101 is identical to Section 101 of the Senate 
     amendment and House bill.
     Sec. 102. Classified schedule of authorizations
       Section 102 is identical to Section 102 of the Senate 
     amendment and House bill.
     Sec. 103. Personnel ceiling adjustments
       Section 103 is identical to Section 103 of the Senate 
     amendment and House bill.
     Sec. 104. Intelligence Community Management Account
       Section 104 of the conference report authorizes 
     appropriations for the Intelligence Community Management 
     Account (CMA) of the Director of National Intelligence (DNI) 
     and sets the personnel end-strength for the Intelligence 
     Community Management Staff for fiscal year 2005.
       Subsection (a) authorizes appropriations of $310,466,000 
     for fiscal year 2005 for the activities of the CMA of the 
     DNI. The House recedes in part and the Senate recedes in 
     part.
       Subsection (b) authorizes 310 full-time personnel for the 
     Intelligence Community Management Staff for fiscal year 2005 
     and provides that such personnel may be permanent employees 
     of the Staff or detailed from various elements of the United 
     States Government. The House bill and Senate amendment were 
     identical.
       Subsection (c) authorizes additional appropriations and 
     personnel for the CMA as specified in the classified Schedule 
     of Authorizations and authorizes additional amounts to remain 
     available for research and development through September 30, 
     2006.
       Subsection (d) requires that, except as provided in Section 
     113 of the National Security Act of 1947, during fiscal year 
     2005, personnel from another element of the United States 
     Government may be detailed to an element of the CMA on a 
     reimbursable basis, or for temporary situations of less than 
     one year on a non-reimbursable basis.
       Subsection (e) authorizes $42,322,000 of the amount 
     authorized in subsection (a) to be made available for the 
     National Drug Intelligence Center (NDIC). Subsection (e) 
     requires the DNI to transfer these funds to the Attorney 
     General to be used for NDIC activities under the authority of 
     the Attorney General and subject to Section 103(d)(1) of the 
     National Security Act. The House recedes in part and the 
     Senate recedes in part.
     Sec. 105. Incorporation of reporting requirements
       Section 105 is similar to Section 105 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes to the Senate.
     Sec. 106. Specific authorization of funds for intelligence or 
         intelligence-related activities for which fiscal year 
         2004 appropriations exceed amounts authorized
       Section 106 is similar to Section 106 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes to the Senate.
     Sec. 107. Preparation and submittal of reports, reviews, 
         studies, and plans relating to intelligence activities of 
         Department of Defense or Department of Energy
       Section 107 is a slightly modified version of Section 107 
     of the Senate amendment. The House bill had no similar 
     provision. The House recedes with an amendment.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     Sec. 201. Authorization of appropriations
       Section 201 authorizes appropriations of $239,400,000 for 
     the Central Intelligence Agency Retirement and Disability 
     Fund. Section 201 of the House bill and Section 201 of the 
     Senate amendment were identical.

                     TITLE III--GENERAL PROVISIONS

     Sec. 301. Increase in employee compensation and benefits 
         authorized by law
       Section 301 is identical to Section 301 of the Senate 
     amendment and the House bill.
     Sec. 302. Restriction on conduct of intelligence activities
       Section 302 is identical to Section 302 of the Senate 
     amendment and the House bill.
     Sec. 303. Chief Information Officer
       Section 303 establishes a Chief Information Officer (CIO) 
     to assist the DNI in carrying out the DNI's responsibilities. 
     The CIO is established within the Office of the DNI. The CIO 
     will serve as the CIO of the Intelligence Community, subject 
     to the DNI's direction. The CIO shall manage activities 
     relating to the information technology infrastructure and 
     enterprise architecture requirements of the Intelligence 
     Community and have procurement approval authority over all 
     information technology items related to the enterprise 
     architectures of all Intelligence Community components. The 
     CIO will also direct and manage all information technology-
     related procurement for the Intelligence Community and ensure 
     that all expenditures for information technology and research 
     and development activities are consistent with the 
     Intelligence Community enterprise architecture and the 
     strategy of the DNI for such architecture. The section also 
     provides that the CIO may not serve as the chief information 
     officer of any other department or agency, or component 
     thereof, of the United States.
       Enterprise architecture is the foundation upon which 
     information technology investment and strategy should be 
     based. Therefore, the managers expect the CIO to move 
     expeditiously to undertake a formal Intelligence Community-
     wide enterprise architecture effort. The managers also 
     strongly support the House report language detailing the 
     ramifications of failing to link Intelligence Community-wide 
     information technology investments to a true community-wide 
     enterprise architecture (H. Rep. 108-558, June 21, 2004).
     Sec. 304. Improvement of authorities relating to National 
         Virtual Translation Center
       Section 304 amends Section 313 of the Intelligence 
     Authorization Act for Fiscal Year 2003 (Pub. L. 107-306; 116 
     Stat. 2391; 50 U.S.C. 404n) to clarify the functions of the 
     National Virtual Translation Center (NVTC). The provision 
     also specifies that the NVTC may perform its duties in a 
     certified secure facility or in any other facility determined 
     appropriate by the DNI. This section was passed in the House 
     bill as Section 615. The Senate recedes with amendments.
       Section 313 of the Intelligence Authorization Act for 
     Fiscal Year 2003 mandated that the Director of Central 
     Intelligence (DCI) retain ``direct supervision and control'' 
     over the NVTC. The Conferees note with concern that despite 
     this mandate the DCI has failed to fully integrate the NVTC 
     into the Intelligence Community and play a meaningful role in 
     its management. Instead, the activities of the NVTC are 
     supervised by the Director of the Federal Bureau of 
     Investigation (FBI), with little or no input by the DCI. 
     While participation of the FBI Director is imperative, 
     Congress stresses again the importance of the direct 
     ``supervision and control'' by the head of the Intelligence 
     Community, now the DNI, of NVTC activities.
       The Conferees are also concerned that non-FBI Intelligence 
     Community elements have not fully leveraged NVTC resources. 
     The Conferees continue to believe that a fully employed NVTC 
     will perform an important function for the Intelligence 
     Community. The use of advanced information technology will 
     expand the ability of translators located in disparate 
     locations to apply their skills to the backlog of collected 
     intelligence information stored in voice or data form 
     throughout the Intelligence Community. Intelligence 
     information that is not translated and not analyzed 
     constitutes a gross waste of our limited collection 
     resources. The Conferees expect the DNI to commit the 
     necessary attention, staffing, and resources to ensure that 
     the NVTC can effectively perform its necessary function.
     Sec. 305. Intelligence assessment on sanctuaries for 
         terrorists
       Section 305 requires the DNI to submit a report to Congress 
     on terrorist sanctuaries. The House bill had no such 
     provision. The House recedes to the Senate.
     Sec. 306. Sense of Congress on the availability to Congress 
         of information on Iraq Oil-for-Food Program of the United 
         Nations
       Section 306 calls on heads of Intelligence Community 
     elements to share with Congress information they have about 
     the United Nations Oil-for-Food Program. The Senate recedes.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     Sec. 401. Permanent Extension of Central Intelligence Agency 
         Voluntary Separation Incentive Program
       The House bill and Senate amendment versions of this 
     provision were similar.
     Sec. 402. Intelligence operations and cover enhancement 
         authority
       Section 402 amends the Central Intelligence Agency Act of 
     1949 by adding a new section that enhances the cover of 
     certain Central Intelligence Agency (CIA) employees. This new 
     section provides that, notwithstanding any other provision of 
     law, the Director of the CIA (DCIA), in order to protect 
     intelligence operations and sources and methods, may: pay 
     salaries, allowances, retirement, insurance, and other 
     benefits to CIA employees under non-official cover in a 
     manner consistent with their cover; exempt a category of CIA 
     employees from certain U.S. Government rules and regulations; 
     allow certain CIA employees to claim and receive the same 
     Federal and state tax treatment available to individuals in 
     the private sector; and allow certain CIA employees to 
     receive Social Security benefits based on the Social Security 
     contributions made by such employees. The DCIA, in 
     formulating regulations under this section, should ensure 
     that such regulations adequately recognize the interests of 
     CIA employee family members, including spouses and children, 
     and former spouses. The House bill had no similar provision. 
     The House recedes.

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

     Sec. 501. National Security Agency emerging technologies 
         panel
       Section 501 amends the National Security Agency Act of 1959 
     to establish the National Security Agency Emerging 
     Technologies Panel and exempts it from the Federal Advisory 
     Committee Act. The Senate bill had no similar provision. The 
     Senate recedes.

[[Page H11038]]

     Sec. 502. Use of funds for counterdrug and counterterrorism 
         activities for Colombia
       Section 502 allows funds available for intelligence and 
     intelligence-related activities to be used to support a 
     unified campaign against drug traffickers and terrorist 
     organizations in Colombia. The House bill had no similar 
     provision. The House recedes with amendments.

                          TITLE VI--EDUCATION

            Subtitle A--National Security Education Program

     Sec. 601. Annual funding
       Section 601 amends the David L. Boren National Security 
     Education Act of 1991 (Title VIII of the Intelligence 
     Authorization Act of 1992 (P.L. 102-183; 105 Stat. 1271)) to 
     authorize an appropriation to the CMA to support the 
     scholarship, fellowship and grant programs under the National 
     Security Education Program (NSEP). The Intelligence 
     Authorization Act of 1992 created the NSEP, along with the 
     National Security Education Trust Fund as a means of funding 
     the NSEP. That trust fund has been nearly depleted, and an 
     appropriation of $8,000,000 is authorized for fiscal year 
     2005 to maintain the NSEP.
     Sec. 602. Improvements to the National Flagship Language 
         Initiative
       Section 602 amends the David L. Boren National Security 
     Education Act of 1991 to authorize an appropriation of 
     $6,000,000 for fiscal year 2005 to the CMA for the expansion 
     of the grant program for institutions of higher education 
     under the National Flagship Language Initiative (NFLI). The 
     section details certain service obligations required for 
     undergraduate and graduate students and federal employees who 
     receive training in programs under the NFLI. The provision 
     also seeks to increase the number of qualified institutions 
     that receive grants under the NFLI.
     Sec. 603. Scholarship program for English language studies 
         for heritage community citizens of the United States 
         within the National Security Education Program
       Section 603 amends the David L. Boren National Security 
     Education Act of 1991 to establish a scholarship program 
     within NSEP for English language studies for heritage 
     community citizens of the United States. The scholarship 
     program is designed to enable native speakers of languages 
     that are considered critical to the national security 
     interests of the United States to attain English language 
     proficiency. The ultimate goal is to increase the scholarship 
     recipient's English language proficiency to the level where a 
     valuable contribution can be made by the recipients to the 
     Intelligence Community. The section establishes certain 
     service obligations for work in a position within the 
     Department of Defense or the Intelligence Community. The 
     section authorizes an appropriation of $2,000,000 for fiscal 
     year 2005 to the CMA to establish the scholarship program.

  Subtitle B--Improvement in Intelligence Community Foreign Language 
                                 Skills

     Sec. 611. Foreign language proficiency for advancement to 
         certain senior level positions in the Central 
         Intelligence Agency
       Section 611 amends the National Security Act of 1947 to 
     establish a language proficiency requirement for those 
     individuals appointed to Senior Intelligence Service (SIS) 
     positions within the CIA's Directorate of Operations (DO) and 
     Directorate of Intelligence (DI). In order to be eligible for 
     promotion to SIS positions within the DO or DI, individuals 
     must be certified as having professional speaking and reading 
     proficiency of at least level 3 on the Interagency Language 
     Roundtable Language Skills Level or commensurate proficiency 
     indicator. The DCIA is tasked with providing to Congress a 
     report explaining any waivers of this requirement for any 
     position or category of positions.
     Sec. 612. Advancement of foreign languages critical to the 
         intelligence community
       Section 612 amends the National Security Act of 1947 to 
     authorize the DNI and the Secretary of Defense to establish a 
     program to advance foreign language skills in languages that 
     are critical to the national security interests of the United 
     States. The program may include funding, in the form of 
     grants, contracts, cooperative agreements, or other 
     appropriate mechanisms, by the Intelligence Community of 
     educational institutions and instructors for the purchase of 
     materials, supplies, and other resources, as well as the 
     generation of instructional materials needed to advance 
     foreign language skills.
       The section allows the Intelligence Community to enter into 
     educational partnership agreements with educational 
     institutions to encourage and enhance the study of foreign 
     languages. These partnership agreements would allow the 
     Intelligence Community to lend surplus equipment, provide 
     personnel to teach courses and develop curriculum, offer 
     academic and career advice, and provide cash awards. The 
     section authorizes the Intelligence Community to accept 
     voluntary services in support of partnership activities. The 
     section also authorizes the Intelligence Community to assign 
     employees in analytical positions requiring foreign language 
     expertise to accredited institutions of higher education for 
     training in foreign languages.
     Sec. 613. Pilot project on Civilian Linguist Reserve Corps
       Section 613 requires the DNI to conduct a pilot project to 
     establish a Civilian Linguist Reserve Corps comprised of 
     United States citizens with advanced proficiency in foreign 
     languages. These individuals could be called up by the DNI to 
     perform federal service in areas relating to their language 
     expertise. The section authorizes an appropriation for a 
     three-year pilot project. In conducting the pilot project, 
     the DNI should take into account findings and recommendations 
     in the CLRC feasibility report required by the Intelligence 
     Authorization Act for Fiscal Year 2003 (P.L. 107-306).
     Sec. 614. Report on status, consolidation, and improvement of 
         intelligence education programs
       Section 614 requires the DNI to submit to Congress no later 
     than June 1, 2005, a report on the status of intelligence 
     education programs. The report is to include recommendations 
     about legislative or administrative action that would be 
     appropriate to consolidate, enhance the coordination of, or 
     otherwise improve intelligence education programs. This 
     provision was added in lieu of creating the Assistant 
     Director of Central Intelligence for Language and Education 
     provided for in the House bill.
     Sec. 615. Report on recruitment and retention of qualified 
         instructors of the Defense Language Institute
       Section 615 requires the Secretary of Defense to conduct a 
     study on methods to improve the recruitment and retention of 
     qualified language instructors at the Foreign Language Center 
     at the Defense Language Institute. In preparing this report, 
     the Secretary is to consider, as a means of recruitment and 
     retention, providing permanent resident alien status to those 
     qualified language instructors who are in the United States 
     in temporary status.

                      TITLE VII--TERRORISM MATTERS

     Sec. 701. Information on terrorist groups that seek weapons 
         of mass destruction and groups that have been designated 
         as foreign terrorist organizations
       Section 701 would require the inclusion, in the State 
     Department's annual country reports on terrorism, of 
     information on terrorist groups that seek weapons of mass 
     destruction, and groups that have been designated as FTOs 
     under Section 219 of the Immigration and Nationality Act, as 
     amended.

                       TITLE VIII--OTHER MATTERS

     Sec. 801. Effective date
       Except as otherwise indicated in a particular section 
     within this Act, this section provides that this Act shall 
     take effect immediately upon enactment because many of its 
     provisions are of immediate operational and practical concern 
     for the Intelligence Community.
     Sec. 802. Construction of references to the Director of 
         Central Intelligence
     Sec. 803. Savings provisions relating to discharge of certain 
         functions and authorities
       Sections 802 and 803 clarifies how certain authorities 
     shall be exercised, and who shall exercise them, during the 
     transitional period between enactment of this Act, its 
     effective date, the appointment of certain officers, and the 
     enactment and effective date of the Intelligence Reform and 
     Terrorism Prevention Act of 2004.

                            General Matters

       The Conferees are concerned about the Intelligence 
     Community's ability to efficiently and effectively manage the 
     security clearance process for companies that comprise its 
     industrial base.
       The Conferees direct the head of the Intelligence Community 
     to undertake a study of all dimensions of this problem. In 
     accomplishing this effort, the study should take into account 
     the excellent work already done by industry groups in 
     studying this problem and also seek additional information 
     and views from industry. The head of the Intelligence 
     Community should consult with the House and Senate 
     Intelligence Committees on the structure, objectives and form 
     of the final report, which should be delivered to the 
     Intelligence Committees in unclassified form (with a 
     classified annex, if necessary) no later than June 1, 2005.
       Senators Rockefeller, Levin, Wyden and Durbin object to an 
     item in the classified schedule of authorizations that 
     provides for continued funding of a major acquisition program 
     that they believe is unnecessary and the cost of which they 
     believe is unjustified. They believe that the funds for this 
     item should be expended on other intelligence programs that 
     will make a surer and greater contribution to national 
     security. For this reason, which is more fully explained in 
     the classified record of the conference, they have not signed 
     the conference report.

     From the Permanent Select Commission on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference.
     Pete Hoekstra,
     Sherwood Boehlert,
     Jim Gibbons,
     Ray LaHood,
     Randy ``Duke'' Cunningham,
     Richard Burr,
     Terry Everett,
     Elton Gallegly,
     Mac Collins,
     JoAnn Davis,
     Mac Thornberry,
     Jane Harman,

[[Page H11039]]

     Alcee L. Hastings,
     Silvestre Reyes,
     Leonard L. Boswell,
     Collin C. Peterson,
     Bud Cramer,
     Anna Eshoo,
     Rush Holt,
     C.A. Dutch Ruppersberger,
     From the Committee on Armed Services, for consideration of 
     defense tactical intelligence and related activities:
     Duncan Hunter,
     Curt Weldon,
     Ike Skelton,
                                Managers on the Part of the House.

     Pat Roberts,
     Orrin Hatch,
     Mike DeWine,
     Christopher Bond,
     Trent Lott,
     Olympia Snowe,
     Chuck Hagel,
     Saxby Chambliss,
     John Warner,
     Dianne Feinstein,
     Evan Bayh,
     Barbara Mikulski,
     Managers on the Part of the Senate.

                          ____________________