[Congressional Record (Bound Edition), Volume 150 (2004), Part 17]
[Senate]
[Pages 23340-23344]
[From the U.S. Government Publishing Office, www.gpo.gov]




          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2005

  Mr. SESSIONS. Madam President, I ask unanimous consent that the 
Senate proceed to the immediate consideration of Calendar No. 619, S. 
2386, the intelligence authorization bill.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 2386) to authorize appropriations for fiscal 
     year 2005 for intelligence and intelligence-related 
     activities of the United States Government, the Intelligence 
     Community Management Account, and the Central Intelligence 
     Agency Retirement and Disability System, and for other 
     purposes.

  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Intelligence and the 
Committee on Armed Services, with amendments, as follows:
  [Strike the parts shown in black brackets and insert the parts shown 
in italic]

                                S. 2386

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act 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. Modification of authority to obligate and expend certain 
              funds for intelligence activities.
Sec. 304. Treatment as agent of a foreign power under the Foreign 
              Intelligence Surveillance Act of 1978 of non-United 
              States persons who engage in international terrorism 
              without affiliation with international terrorist groups.
Sec. 305. Additional annual reporting requirements under the Foreign 
              Intelligence Surveillance Act of 1978.
Sec. 306. Repeal of limitation on length of service as member of the 
              Select Committee on Intelligence of the Senate.

                 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. Repeal of sunset on authority to engage in commercial 
              activities as security for intelligence collection 
              activities.]
Sec. [502] 501. Defense intelligence exemption from certain Privacy Act 
              requirements.
Sec. [503] 502. Use of funds for counterdrug and counterterrorism 
              activities for Colombia.

                    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 __ 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 Central Intelligence may authorize employment of civilian 
     personnel in excess of the number authorized for fiscal year 
     2005 under section 102 when the Director of Central 
     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 
     Central 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 Central Intelligence for fiscal 
     year 2005 the sum of $342,995,000. 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 
     Central Intelligence are authorized 310 full-time personnel 
     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

[[Page 23341]]

     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 Central 
     Intelligence.
       (e) National Drug Intelligence Center.--
       (1) In general.--Of the amount authorized to be 
     appropriated in subsection (a), $34,911,000 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 Central 
     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 __ 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)).

     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 
     Central 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 of Congress:
       (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, and 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. MODIFICATION OF AUTHORITY TO OBLIGATE AND EXPEND 
                   CERTAIN FUNDS FOR INTELLIGENCE ACTIVITIES.

       Section 504(a)(3) of the National Security Act of 1947 (50 
     U.S.C. 414(a)(3)) is amended--
       (1) in subparagraph (A), by inserting ``and'' at the end;
       (2) by striking subparagraph (B); and
       (3) by redesignating subparagraph (C) as subparagraph (B).

     SEC. 304. TREATMENT AS AGENT OF A FOREIGN POWER UNDER THE 
                   FOREIGN INTELLIGENCE SURVEILLANCE ACT OF 1978 
                   OF NON-UNITED STATES PERSONS WHO ENGAGE IN 
                   INTERNATIONAL TERRORISM WITHOUT AFFILIATION 
                   WITH INTERNATIONAL TERRORIST GROUPS.

       (a) In General.--Section 101(b)(1) of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801(b)(1)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) engages in international terrorism or activities in 
     preparation therefor; or''.
       (b) Sunset.--The amendment made by subsection (a) shall be 
     subject to the sunset provision in section 224 of the USA 
     PATRIOT Act of 2001 (Public Law 107-56; 115 Stat. 295), 
     including the exception provided in subsection (b) of such 
     section 224.

     SEC. 305. ADDITIONAL ANNUAL REPORTING REQUIREMENTS UNDER THE 
                   FOREIGN INTELLIGENCE SURVEILLANCE ACT OF 1978.

       (a) Additional Reporting Requirements.--The Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et 
     seq.) is amended--
       (1) by redesignating title VI as title VII;
       (2) by redesignating section 601 as section 701; and
       (3) by inserting after title V the following new title VI:

                   ``TITLE VI--REPORTING REQUIREMENT


                ``annual report of the attorney general

       ``Sec. 601. (a) In addition to the reports required by 
     sections 107, 108, 306, 406, and 502 in April each year, the 
     Attorney General shall submit to the appropriate committees 
     of Congress each year a report setting forth with respect to 
     the one-year period ending on the date of such report--
       ``(1) the aggregate number of non-United States persons 
     targeted for orders issued under this Act, including a break-
     down of those targeted for--
       ``(A) electronic surveillance under section 105;
       ``(B) physical searches under section 304;
       ``(C) pen registers under section 402; and
       ``(D) access to records under section 501;
       ``(2) the number of individuals covered by an order issued 
     under this Act who were determined pursuant to activities 
     authorized by this Act to have acted wholly alone in the 
     activities covered by such order;
       ``(3) the number of times that the Attorney General has 
     authorized that information obtained under this Act may be 
     used in a criminal proceeding or any information derived 
     therefrom may be used in a criminal proceeding; and
       ``(4) in a manner consistent with the protection of the 
     national security of the United States--
       ``(A) the portions of the documents and applications filed 
     with the courts established under section 103 that include 
     significant construction or interpretation of the provisions 
     of this Act, not including the facts of any particular 
     matter, which may be redacted; and
       ``(B) the portions of the opinions and orders of the courts 
     established under section 103 that include significant 
     construction or interpretation of the provisions of this Act, 
     not including the facts of any particular matter, which may 
     be redacted.
       ``(b) The first report under this section shall be 
     submitted not later than six months after the date of the 
     enactment of this Intelligence Authorization Act for Fiscal 
     Year 2005. Subsequent reports under this section shall be 
     submitted annually thereafter.
       ``(c) In this section, the term `appropriate committees of 
     Congress' means--

[[Page 23342]]

       ``(1) the Select Committee on Intelligence and the 
     Committee on the Judiciary of the Senate; and
       ``(2) the Permanent Select Committee on Intelligence and 
     the Committee on the Judiciary of the House of 
     Representatives.''.
       (b) Clerical Amendment.--The table of contents for that Act 
     is amended by striking the items relating to title VI and 
     inserting the following new items:

                   ``TITLE VI--REPORTING REQUIREMENT

``Sec. 601. Annual report of the Attorney General.

                      ``TITLE VII--EFFECTIVE DATE

``Sec. 701. Effective date.''.

     SEC. 306. REPEAL OF LIMITATION ON LENGTH OF SERVICE AS MEMBER 
                   OF THE SELECT COMMITTEE ON INTELLIGENCE OF THE 
                   SENATE.

       (a) Repeal.--Section 2 of Senate Resolution 400 (94th 
     Congress) is amended--
       (1) by striking subsection (b); and
       (2) by redesignating subsection (c) as subsection (b).
       (b) Rules of the Senate.--Subsection (a) is enacted--
       (1) as an exercise of the rulemaking power of the Senate; 
     and
       (2) with full recognition of the constitutional right of 
     the Senate to change the rules of the Senate at any time and 
     to the same extent as in the case of any other rule of the 
     Senate.

                 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 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 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 source 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 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 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 may establish and 
     administer a nonofficial cover employee retirement system 
     under which a designated employee (and the spouse, former 
     spouses, and survivors of such designated employee) shall 
     receive treatment in the same manner and to the same extent 
     as the Federal retirement system that would otherwise apply 
     to such employee (and the spouse, former spouses, and 
     survivors of that employee). 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 (including at the time of 
     separation of service by reason of retirement), if the 
     Director 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 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 Employee's 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 a retirement system established under 
     paragraph (1) similar to subchapter III of chapter 84 of 
     title 5, United States Code, and is converting to coverage 
     under subchapter III of that chapter, the Director shall 
     transmit all amounts of that designated employee in that 
     similar 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 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 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 may establish and 
     administer a nonofficial cover employee health insurance 
     program under which a designated employee (and the family of 
     such designated employee) shall receive treatment in the same 
     manner and to the same extent as provided under chapter 89 of 
     title 5, United States Code. 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 (including at the time of 
     separation of service by reason of retirement), if the 
     Director 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 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 may establish and 
     administer a nonofficial cover employee life insurance 
     program under which a designated employee (and the family of 
     such designated employee) shall receive treatment in the same 
     manner and to the same

[[Page 23343]]

     extent as provided under chapter 87 of title 5, United States 
     Code. 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 (including at the time of 
     separation of service by reason of retirement), if the 
     Director 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--
       ``(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 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)(iii) shall be paid from the fund or 
     appropriation used to pay the designated employee.
       ``(g) Exemption From Certain Requirements.--The Director 
     may exempt a designated employee from mandatory compliance 
     with any Federal regulation, rule, standardized 
     administrative policy, process, or procedure that the 
     Director 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 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 source 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) IRS review.--The Director 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 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 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 made by the Director 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. REPEAL OF SUNSET ON AUTHORITY TO ENGAGE IN 
                   COMMERCIAL ACTIVITIES AS SECURITY FOR 
                   INTELLIGENCE COLLECTION ACTIVITIES.

       [Section 431(a) of title 10, United States Code, is amended 
     by striking the second sentence.]

     SEC. [502] 501. DEFENSE INTELLIGENCE EXEMPTION FROM CERTAIN 
                   PRIVACY ACT REQUIREMENTS.

       Section 552a(e)(3) of title 5, United States Code, shall 
     not apply with respect to the collection of information by 
     intelligence personnel of the Department of Defense who are 
     authorized by the Secretary of Defense to collect 
     intelligence from human sources.

     SEC. [503] 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, 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 undertaking 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) Sections 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 8077 of the Department of Defense 
     Appropriations Act, 2004 (Public Law 108-87; 117 Stat. 1090).
       (3) The numerical limitations on the number of United 
     States military personnel and United States individual 
     civilian contractors in section 3204(b)(1) of the Emergency 
     Supplemental Act, 2000 (division B of Public Law 106-246; 114 
     Stat. 575), as amended by the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2002 (115 
     Stat. 2131).
       (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 will 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.

  Mr. SESSIONS. Madam President, I ask unanimous consent that the 
committee amendments be agreed to, that the amendments that are at the 
desk be agreed to, that the bill, as amended, be read a third time and 
passed, the motions to reconsider be laid upon the table en bloc, and 
that any statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendments were agreed to.
  The amendments (Nos. 4059 and 4060) were agreed to, as follows:


                           amendment no. 4059

(Purpose: To strike section 306, relating to a repeal of the limitation 
    on the length of service as a member of the Select Committee on 
                      Intelligence of the Senate)

       On page 16, strike lines 1 through 16.


                           amendment no. 4060

       On page 9, line 16, add at the end the following: ``Such 
     funds shall remain available until September 30, 2005.''.
       On page 16, between lines 16 and 17, insert the following:

     SEC. 307. INTELLIGENCE ASSESSMENT ON SANCTUARIES FOR 
                   TERRORISTS.

       (a) Assessment Required.--Not later than the date specified 
     in subsection (b), the Director of Central Intelligence shall 
     submit to Congress 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. 308. ADDITIONAL EXTENSION OF DEADLINE FOR FINAL REPORT 
                   OF THE NATIONAL COMMISSION FOR THE REVIEW OF 
                   THE RESEARCH AND DEVELOPMENT PROGRAMS OF THE 
                   UNITED STATES INTELLIGENCE COMMUNITY.

       Section 1007(a) of the Intelligence Authorization Act for 
     Fiscal Year 2003 (Public Law 107-306; 50 U.S.C. 401 note) is 
     amended by striking ``September 1, 2004'' and inserting 
     ``September 1, 2005''.

     SEC. 309. FOUR-YEAR EXTENSION OF PUBLIC INTEREST 
                   DECLASSIFICATION BOARD.

       Section 710(b) of the Public Interest Declassification Act 
     of 2000 (title VII of Public Law 106-567; 114 Stat. 2856; 50 
     U.S.C. 435 note) is amended by striking ``4 years'' and 
     inserting ``8 years''.
       On page 19, strike lines 7 through 15 and insert the 
     following:

[[Page 23344]]

       ``(1) In general.--The Director 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 des-
       On page 21, strike line 18 and all that follows through 
     page 22, line 1, and insert the following:
       ``(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 may transmit any or all amounts of that 
     designated employee in that employee investment retirement 
     system (or similar
       On page 22, strike line 24 and all that follows through 
     page 23, line 5, and insert the following:
       ``(1) In general.--The Director may establish and 
     administer a nonofficial cover employee health insurance 
     program for designated employees (and the family of such 
     designated employees). A designated employee
       On page 25, strike lines 6 through 12 and insert the 
     following:
       ``(1) In general.--The Director 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
       On page 27, line 8, strike ``(B)(iii)'' and insert 
     ``(B)(iv)''.
       On page 30, strike lines 10 through 16.

  The bill (S. 2386), as amended, was read the third time and passed, 
as follows:
  (The bill will be printed in a future edition of the Record.)

                          ____________________